Tenney, Stefanik Press Hochul to Repeal Rural Broadband Tax

Washington, DC – Congresswoman Claudia Tenney (NY-22) joined recently with House Republican Conference Chairwoman Elise Stefanik in urging New York Governor Kathy Hochul to take action to expand access to rural broadband by repealing the New York State fiber fee, which amounts to a tax on rural broadband. The fiber fee charges private fiber providers for installing, operating or maintaining fiber optic cable lines needed for quality broadband connections, running along or passing through State Rights-of-Way.

In the 2019-2020 New York State Budget, a provision was included to impose the fiber fee, except when a project is funded by the New York Broadband Program. Since then, the fee has come under fire from lawmakers on both sides of the aisle because it was implemented without any public comment and has made it more costly for providers to build infrastructure in underserved rural areas, including those throughout the 22nd District. Further, the fee applies only to fiber projects, but not to any other type of communications projects utilizing technologies like coaxial cables, which is a possible violation of federal law.

In part the lawmakers wrote, “We urge you to repeal this policy that disproportionately impacts rural fiber providers and rural residents in this year’s state budget. You should be empowering our state’s broadband providers to innovate, grow, and continue the drive towards connecting every New Yorker to high-speed internet at prices they can afford, not continuing to place bureaucratic financial burdens on them.”

The letter was also signed by New York Reps. Chris Jacobs, Lee Zeldin, Tom Reed, Andrew Garbarino, John Katko, and Nicole Malliotakis.

The full text of the letter is available here.

Dear Governor Hochul,

We write to you today urging you to take action to facilitate fiber deployment in all rural areas of New York State and repeal the New York State fiber fee. As you have often stated, access to high-speed broadband is a necessity for all New Yorkers. We could not agree more, especially for those living our state’s rural communities. Unfortunately, current New York State law runs counter to your often stated goal of closing the digital divide.

Implemented in the 2019-2020 New York State Budget, a provision in the Consolidated Highway Laws of New York State provides authority to the New York State Department of Transportation (DOT) to impose fees on providers seeking to install, operate, or maintain fiber optic cable lines that run along, or pass through, State Rights-of-Way. This provision originated largely without public consideration during the budget process. Following initial implementation of the fee, a bipartisan, bicameral group of 9 state lawmakers from Upstate New York wrote then-Governor Cuomo requesting he terminate continued application of the fee.

This fee is discriminatory as it narrowly applies to fiber projects, but not to any other type of communications project utilizing other technologies, such as coaxial cable, along, or though, State-Rights-of-Way. As a result, we have called for the FCC to preempt this fee as its discrimination is a violation of Section 253 of the Communications Act of 1934. Additionally, state lawmakers in both the Senate and Assembly have recognized the significant negative impact this policy has on build out throughout the state and have introduced legislation to repeal it.

We urge you to repeal this policy that disproportionately impacts rural fiber providers and rural residents in this year’s state budget. You should be empowering our state’s broadband providers to innovate, grow, and continue the drive towards connecting every New Yorker to high-speed internet at prices they can afford, not continuing to place bureaucratic financial burdens on them.

Sincerely,

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