NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10212
SPONSOR: Kelles TITLE OF BILL:
An act to amend the local finance law, in relation to the period of
probable usefulness of broadband and related telecommunications infras-
tructure
PURPOSE:
to increase the payback period for broadband and related telecommuni-
cations infrastructure from 10 to 30 years
SUMMARY OF PROVISIONS:
Sec. 1 - Short title "Municipal Broadband Financing Modernization
Improvement Act of 2026"
Sec. 2 - Amends subdivision 109 of paragraph of section 11 of the local
finance law to extend the period of probable usefulness of broadband and
related telecommunications infrastructure from 10 to 30 years;
Sec. 3 - Effective date.
JUSTIFICATION:
Ample evidence shows that broadband's passive fiber Infrastructure has a
lifespan of at least 30 years, The passive plant (conduit/duct,
handholes, splice enclosures, splitters, fiber cable) Is the long-life
portion of a fiber network-often the majority of construction cost-and
credible sources put It in the 30-50 year range with manufacturer
evidence up to 40 years, The passive fiber plant is a 30-40+ year
asset.' 2,3.4 Yet local finance law sets the period of probable useful-
ness of broadband infrastructure at 10 years, creating untenable pres-
sures on municipalities hosting municipal broadband services to pay back
bonds within that time.
Further, materials, labor, contractors, and utility pole make-ready have
all contributed to substantial increases in costs over the last five
years S,6,7 making it Increasingly difficult to repay loans to finance
municipal broadband within 10 years.
The active electronics component of broadband has a shorter lifespan and
should be treated differently). The cost of electronics is a small
portion of the overall construction cost, and these are acquired, main-
tained, and replaced from on-going operations revenue, not from long
term bonds. This bill is asking for 30 years for the passive fiber
infrastructure whose economic life aligns with 30+ years, while elec-
tronics can remain on a shorter schedule (financed through normal month-
ly operations).
This bill would relieve the burden on municipalities managing broadband
projects by increasing the payback period for broadband and related
telecommunications infrastructure from 10 to 30 years.
LEGISLATIVE HISTORY:
new bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
provides greater flexibility to localities for the financing of an
essential capital asset
EFFECTIVE DATE:
Immediately
1.https://www.ofsoptics.com/nrtc/ApplIcation%20Notes/AN-006%20Cable%2011f
etime%20R4.Pdf
2.https://fiberbroadband.org/wp-content/uploads/2024/02/FBA-
0018E_Scalabilltylongevity_WhitePaperiv2.pdf
3.https://europacable.eu/wp-content/uploads/2021/01/Europacable-
Guide-Expected-LIfe-TIme-of-PassIve-Optical-Infrastructure-21-Oct2020.pdf
4.https://www.pta.gov.pk/assets/medla/2025-04-14-Consultation-Paper-on-O
PC-%26-In-Building-Cabling-Standards-27-03-2025-V4.pdf
5.https://www.usItc.gov/publications/332/
executive_briefings/ebot_helium_fiber_oPtic_cable.Pdf
6. Independent trade reporting also described the same phenomenon-prices
up sharply and lead times stretching-during that period.
7.https://fiberbroadband.org/wp-content/uploads/2024/01/Fiber-I
Deployment-Annual-Report-2023_FBA-and-Carteslan.pdf
STATE OF NEW YORK
________________________________________________________________________
10212
IN ASSEMBLY
February 12, 2026
___________
Introduced by M. of A. KELLES -- read once and referred to the Committee
on Local Governments
AN ACT to amend the local finance law, in relation to the period of
probable usefulness of broadband and related telecommunications
infrastructure
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "municipal broadband financing modernization improvement act of
3 2026".
4 § 2. Subdivision 109 of paragraph a of section 11.00 of the local
5 finance law, as added by chapter 512 of the laws of 2023, is amended to
6 read as follows:
7 109. For acquisition, construction, or replacement of broadband and
8 related telecommunications infrastructure pursuant to section ninety-
9 nine-y of the general municipal law, [ten] thirty years.
10 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14614-01-6
