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Localities Resist Pre-Emption

New York Budget Bill Includes Small Cells, Net Neutrality

Local governments are bracing to oppose another attempt to pass a New York wireless infrastructure proposal, supported by industry, through the budget process (see 1912190063). A 2020-2021 budget bill floated Wednesday in each chamber (AB-9508, S-7458) includes sections on net neutrality and attempts to streamline small-cells deployment by pre-empting local governments in the right of way. Small cells appeared in a New York budget proposal two years ago, but the section was removed amid local government opposition. “Expect similar efforts here,” local government attorney Ken Fellman emailed Thursday.

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Proposed net neutrality rules would build on a 2018 executive order that restricted procurement along those lines. Another section in the budget bill says it would strengthen Public Service Commission oversight and enforcement powers including over telecom. The Assembly and Senate plan joint budget hearings Monday-Feb. 13. A joint hearing on economic development is Feb. 13 at 9:30 a.m.

Small-cells rules in the proposed budget is a second “attempt by telecommunications providers to receive an industry subsidy and eliminate local control over siting decisions on municipal rights-of-way,” New York Conference of Mayors Executive Director Peter Baynes emailed Thursday. It would “go beyond the pro-industry regulations implemented by the FCC and would constrain local communities' ability to hold telecommunications accountable for wireless equipment installed in the ROW.”

The Wireless Infrastructure Association “is glad to see inclusion of a framework to promote small-cell deployment" in Gov. Andrew Cuomo's (D) bill that "would increase network capacity and bring us closer to nationwide 5G,” said WIA President Jonathan Adelstein. CTIA referred us to a Jan. 9 tweet saying it's encouraged by Cuomo’s remarks.

New York localities should be concerned about the proposal that looks like an “unwarranted preemption of many areas of traditional local control,” Fellman said: “The state should not be getting involved in local land use decisions.” The bill “exempts one industry from having to comply with the kinds of zoning laws that every other property owner must comply with,” the lawyer said.

The small-cells section would ban moratoriums on applications, and limit fees to $500 for the first five facilities and $100 for each additional facility on the same application. Cities could charge up to $1,000 for installation, modification or replacement of a utility pole together with collocation. Municipalities could charge up to $20 per facility annually for occupying and using the ROW, up to $250 yearly for collocation. Proposed rates are similar to what the FCC requires.

Proposed net neutrality rules would require ISPs disclose practices and certify compliance. It would provide for enforcement by the PSC, state attorney general, and individuals through a private right of action. ISPs would have to certify by July 1, 2021, and agencies wouldn’t be able to contract with ISPs that don’t.

The PSC “shall be authorized to promulgate any rules or regulations necessary to implement the provisions of this article,” the bill said. ISPs could be liable to pay a civil penalty of at most $500 per violation plus a maximum $500 for each day. The commission declined to comment on the legislation.

USTelecom referred us to its previous calls for Congress to pass a national open-internet law. Other telecom companies and associations didn’t comment. Nor did the FCC.