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A02432 Summary:

COSPNSRBarrett, Ortiz, Magnarelli, Gottfried, Englebright, Thiele, Simon, D'Urso, Glick, Lupardo, Jaffee, Zebrowski, Santabarbara, Colton, Cahill, Galef, Mosley, Arroyo, Seawright, Pichardo, Lifton, Dinowitz, Vanel, Stirpe, Rosenthal L, Steck, Abinanti, Richardson, Wright, Wallace, O'Donnell, Taylor, Niou, Quart, Carroll, De La Rosa, Reyes, Jacobson, Griffin
Amd Art 11 Head, 212 & 215, add 231, Pub Serv L; add 148, St Fin L
Relates to instituting internet service neutrality; provides the public service commission with jurisdiction over monitoring broadband internet service providers; requires a certification for internet service neutrality in certain state contracts.
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A02432 Actions:

01/22/2019referred to corporations, authorities and commissions
03/06/2019reported referred to ways and means
05/16/2019advanced to third reading cal.334
06/04/2019passed assembly
06/04/2019delivered to senate
01/08/2020DIED IN SENATE
01/08/2020ordered to third reading cal.104
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A02432 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the public service law and the state finance law, in relation to instituting internet service neutrality   PURPOSE OR GENERAL IDEA OF BILL: To give the Public Service Commission (PSC) the authority to monitor the practices of internet service providers and certify their compliance with net neutrality principles. The bill directs New York State, its authorities, and municipalities to not engage in procurement with inter-net service providers whose compliance with net-neutrality princi- ples is not certified by the PSC.   SUMMARY OF PROVISIONS: Section 1: Amends the heading of article 11 of the public service law as added by chapter 83 of the laws of 1995. Section 2: Section 212 of the public service law is amended by adding a new subdivision 15. Section 3: Amends section heading of section 215 of the public service laws added by chapter 83 of the laws of 1995, is amended and a new subdivision 14 is added. Section 4: The state finance law is added by adding a new section 148. Section 5: The public service law is amended by adding a new section 231. Section 6: Effective date.   JUSTIFICATION: Federal net neutrality principles have ensured that the internet remains open with equal access for individuals, innovators and small businesses. In the wake of the Federal Communications Commission's (FCC) December 2017 vote to undo the regulations protecting an open Internet, this bill directs the Public Service Commission (PSC) to establish a process for internet service providers (ISPs) to certify that they follow net neutrality principles. In order to make these certifications, the PSC will use federally-mandated reporting requirements on net neutrality, which require ISPs publicly disclose unfair practices such as throttling or paid prioritization. Using these federally mandated reporting requirements will ensure New York State is able to adhere to net neutrality principles despite the FCC's ruling while avoiding federal preemption. Further, the bill will require that New York State agencies, public authorities, municipalities, municipal corporations and libraries only contract with ISPs certified by the PSC to follow net neutrality principles. This measure will use New York's buying power as a large consumer of internet services to encourage ISPs to abide by net-neutral- ity principles.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: none   EFFECTIVE DATE: This act shall take effect on the thirtieth day after it shall have become a law.
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A02432 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 22, 2019
        Introduced  by  M.  of  A.  FAHY, BARRETT, ORTIZ, MAGNARELLI, GOTTFRIED,
          CARROLL, DE LA ROSA -- Multi-Sponsored by -- M. of A. CROUCH  --  read
          once  and  referred  to the Committee on Corporations, Authorities and
        AN ACT to amend the public service law and the  state  finance  law,  in
          relation to instituting internet service neutrality
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The article heading of article 11  of  the  public  service
     2  law,  as  added by chapter 83 of the laws of 1995, is amended to read as
     3  follows:
     5                         INTERNET SERVICE PROVIDERS
     6    § 2. Section 212 of the public service law is amended  by  adding  two
     7  new subdivisions 15 and 16 to read as follows:
     8    15.  "Broadband  internet  access  service"  shall  mean a mass-market
     9  retail service that provides the capability  to  transmit  data  to  and
    10  receive data from all or substantially all internet endpoints, including
    11  any  capabilities that are incidental to and enable the operation of the
    12  communications service, but shall not include  dial-up  internet  access
    13  service.
    14    16. "Broadband internet service provider" shall mean any person, busi-
    15  ness  or  organization qualified to do business in this state, including
    16  municipal broadband providers, that provides individuals,  corporations,
    17  or other entities with broadband internet access service.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 2432                             2
     1    §  3. The section heading of section 215 of the public service law, as
     2  added by chapter 83 of the laws of 1995, is amended and a  new  subdivi-
     3  sion 14 is added to read as follows:
     4    Duties  of the commission in respect to cable television companies and
     5  broadband internet service providers.
     6    14. Develop and maintain a statewide plan for the monitoring of broad-
     7  band internet service providers, including the annual certification that
     8  broadband internet service providers comply with  the  internet  service
     9  neutrality requirements established in section two hundred thirty-one of
    10  this article.
    11    §  4.  The state finance law is amended by adding a new section 148 to
    12  read as follows:
    13    § 148. Internet service neutrality requirements in certain procurement
    14  contracts. Notwithstanding any other provision of law to  the  contrary,
    15  where  a contract that includes broadband internet access services is to
    16  be awarded by a state agency as defined in section one hundred sixty  of
    17  this  chapter  or any state or local authority as such terms are defined
    18  in section two of  public  authorities  law,  municipal  corporation  as
    19  defined  in  section two of the general municipal law, public library or
    20  association library, as such terms are defined in  section  two  hundred
    21  fifty-three  of  the  education  law,  the legislature, judiciary, state
    22  university of New York, or city university of New  York  pursuant  to  a
    23  competitive  bidding  process  or  a  request for proposal process, such
    24  competitive bidding process or request for proposal and  the  subsequent
    25  awarded  contract  shall  require  that  such  broadcast internet access
    26  services are compliant with the internet service neutrality requirements
    27  established in section two hundred thirty-one of the public service law.
    28  Provided, however, the entity awarding  such  contract  may  award  such
    29  contract  to  any broadband internet service provider that is not certi-
    30  fied by the public service commission pursuant  to  subdivision  two  of
    31  section  two  hundred  thirty-one of the public service law only if such
    32  entity demonstrates to the public service  commission  that  either  (i)
    33  there  are  no  other  broadband internet service providers available to
    34  contract with, or (ii) awarding such contract to a  certified  broadband
    35  internet  service provider would result in a significant financial hard-
    36  ship when compared to awarding the  contract  to  a  broadband  internet
    37  service provider not certified by the public service commission.
    38    §  5. The public service law is amended by adding a new section 231 to
    39  read as follows:
    40    § 231. Internet service neutrality. 1. For purposes of  this  section,
    41  "network management practice" shall mean a practice that has a primarily
    42  technical  network  management justification, but does not include other
    43  business practices. A "reasonable  network  management  practice"  shall
    44  mean  a  network  management  practice  that  is  primarily used for and
    45  tailored to achieving a legitimate network  management  purpose,  taking
    46  into  account  the particular network architecture and technology of the
    47  broadband internet access service.
    48    2. The commission shall certify annually that any  broadband  internet
    49  service provider qualified to do business in this state, does not:
    50    (a)  block  lawful  content,  applications,  services,  or non-harmful
    51  devices, subject to reasonable network management.
    52    (b) impair or degrade lawful internet traffic on the basis of internet
    53  content, application, or  service,  or  use  of  a  non-harmful  device,
    54  subject to reasonable network management.
    55    (c)  engage  in  paid  prioritization,  including, but not limited to,
    56  traffic shaping, prioritization, resource reservation, or other forms of

        A. 2432                             3
     1  preferential traffic management, either (i) in exchange for any form  of
     2  consideration from a third party, or (ii) to benefit an affiliated enti-
     3  ty, unless the broadband internet service provider demonstrates that the
     4  practice  would  provide a significant public interest benefit and would
     5  not harm the open nature of the internet.
     6    3. The commission shall annually  prepare  a  report  that  lists  the
     7  certification status for every broadband internet service provider qual-
     8  ified  to  do  business in this state. Such report shall be published on
     9  the commission's website and updated at least annually.  The  commission
    10  shall  notify  the  governor, the temporary president of the senate, and
    11  the speaker of the assembly of the publication of such  report  and  any
    12  updates.
    13    § 6. This act shall take effect on the one hundred eightieth day after
    14  it shall have become a law.
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