Senate Bill 408

Chairman: Jeff Lewis

Committee:Energy, Utilities, and Telecommunications

House Sponsor: Jeff Lewis

Senate Sponsor: David Shafer

SB 408 amends provisions related to the placement lines and facilities in the public roads, highways, and right of ways by telegraph and telephone companies. The approval of these placements by municipal authorities will be limited to the process set out in this bill. A county or municipality also cannot require companies to enter into an individual license, franchise or other agreements or impose taxes or fees as a condition to placing lines, except as provided in this bill.

The bill sets out the application process for telegraph or telephone companies seeking to place lines. A specific list of information is required to be submitted to the municipal authority. If the application is incomplete the authority must notify the company in writing. Within 60 days of receiving a completed application the authority may adopt the application through a resolution, ordinance, or notification to the company. If the authority fails to adopt it within that time period, that also will constitute final adoption. If the company modifies its service area or provisioned services from the original application, it must notify the authority prior to the change. An application can be terminated by the company by submitting a notice of termination to the effected authority.

Companies which have previously obtained permits, specified the company name, placed its facilities, and continue to pay applicable taxes/fees, will be deemed to have complied. Companies which have placed their lines and facilities without first obtaining permits will have until October 1, 2008 to supply required information to the authority. If the company has failed to do so by that time, after a providing written notice to the company, the authority may petition the Public Service Commission for appropriate relief. Existing, valid municipal franchise agreements which were in place as of January 1, 2008 will only remain effective and enforceable until the expiration of the agreement or December 31, 2012.

The bill also details what is “due compensation”, sets out audit guidelines, and protects certain records from public inspection.

This bill comes to the House Floor under the Modified Structured Rule.

Chairman Lewis’s Opinion of this Legislation:

This bill brings more competition to the telecommunications video market by removing regulation barriers. This will promote consumer choice and lower prices.