SB151 By Senators Whatley and Dial RFD Transportation and Energy Rd 1 09-FEB-17

SYNOPSIS: This bill would remove restrictions on the service area of a public provider of municipal telecommunication services or other services that is a municipality or a municipal instrumentality.

This bill would further allow the public provider to provide cable systems, telecommunications equipment and systems, furnish cable service, interactive computer service, Internet access, other Internet services, advanced telecommunications service, and other services, or any combination thereof without the restrictions as to coverage area.

This bill would provide that a public provider intending to serve an area outside of its jurisdiction would give notice to the private provider or providers that serve the area.

This bill would provide that a public provider would only be allowed to serve the area or areas in the county in which the public provider is headquartered or in a contiguous county and would limit service to Internet, cable, and phone.

This bill would provide the sources of funding that could be used by a public provider to provide service outside of its municipal boundaries and would provide that the public provider would be responsible for all taxes and fees due in that area.

A BILL TO BE ENTITLED AN ACT

To amend Section 11-50B-3 of the Code of Alabama 1975, relating to public providers of municipal telecommunications services and other services; to remove certain restrictions and further provide for the delivery of services; to require notice be given to private providers by public providers intending to expand coverage; to restrict the coverage area of public providers; to limit the sources of funding; and to subject the public provider to all taxes and fees due in the area it provides service outside of its municipal boundaries.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 11-50B-3 of the Code of Alabama 1975, is amended to read as follows:

§11-50B-3.

"(a) In addition to all other power, rights, and authority heretofore granted by law, public providers may acquire, establish, purchase, construct, maintain, enlarge, extend, lease, improve, and operate cable systems, telecommunications equipment and telecommunications systems, and furnish cable service, interactive computer service, Internet access, other Internet services, and advanced telecommunications service, or any combination thereof, in the case of a public provider that is a municipality, to the inhabitants of the municipality and police jurisdiction, the area within the territorial jurisdiction of the municipal planning commission determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipality furnishes or sells any utility, such as electricity, gas, water, or sewer, and in the case of a public provider that is a municipal instrumentality, to the inhabitants of the municipality in which the municipal instrumentality was organized and the police jurisdiction of this municipality, the area within the territorial jurisdiction of the municipal planning commission of this municipality determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipal instrumentality furnishes or sells any utility, such as electricity, gas, water, or sewer. Nothing contained herein shall authorize any public provider to provide telecommunications service other than advanced telecommunications service. Notwithstanding any other provision of this chapter, however, public providers may, in the case of a public provider that is a municipality, to the inhabitants of the municipality and police jurisdiction, the area within the territorial jurisdiction of the municipal planning commission determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipality furnishes or sells any utility, such as electricity, gas, water, or sewer, and in the case of a public provider that is a municipal instrumentality, to the inhabitants of the municipality in which the municipal instrumentality was organized and the police jurisdiction of this municipality, the area within the territorial jurisdiction of the municipal planning commission of this municipality determined in accordance with the provisions of Section 11-52-30, as amended, and any area in which the municipal instrumentality furnishes or sells any utility, such as electricity, gas, water, or sewer, furnish to the public directly, Internet access, other Internet services, meter reading services, appliance, equipment, or facilities monitoring, alarm monitoring service and other security monitoring, surveillance or monitoring services, and billing and financial services. Any public provider which engages in the installation of alarm systems and any individuals who are employed by the public provider and who engage in the installation of alarm systems for customers of the public provider must comply with the rules and regulations of the Alabama Electronic Security Board of Licensure created pursuant to the provisions of Section 34-1A-2, as amended, to the same extent as a private installer of alarm systems for so long as the same may apply to private installers of alarm systems. In addition, the governing body of any municipality, by ordinance to be entered on its minutes, and any other public provider, by appropriate action of its governing body to be entered on its minutes, also may lease to others any of its cable system and telecommunications equipment not needed for public or municipal purposes and may couple the lease with the provision of cable service, interactive computer service, Internet access, other Internet services, and telecommunications service, or any combination thereof. A lease made, in the case of a municipality, by the mayor in accordance with the ordinance, or in the case of a municipal instrumentality, by the duly authorized officer, officers, or agents of the municipal instrumentality, shall be binding for the term specified in the lease, not to exceed a period of 25 years. Any public provider that acquires a cable system, telecommunications equipment, or telecommunications system for purposes of furnishing to others cable service, interactive computer service, Internet access, other Internet services, and telecommunications service, or any combination thereof, shall provide, to any requesting telecommunications carrier or any electric cooperative exercising any power enumerated in Article 2 of Chapter 6, Title 37, as amended, or an affiliate of an electric cooperative, for the provision of a telecommunications service, nondiscriminatory access to any of the public provider's telecommunications equipment not needed for public or municipal purposes or used by the public provider in the provision of telecommunications service to others on an unbundled basis at any technically feasible point on rates, terms, and conditions that are just, reasonable, and nondiscriminatory. A public provider shall make available any of its telecommunications equipment not needed for public or municipal purposes or used by the public provider in the provision of telecommunications service to others on an unbundled basis to requesting telecommunications carriers and electric cooperatives exercising any power enumerated in Article 2 of Chapter 6, Title 37, as amended, or an affiliate of an electric cooperative, upon terms and conditions that are just, reasonable, and nondiscriminatory, provided the electric cooperative or affiliate of an electric cooperative makes available any of its telecommunications equipment not needed for its purposes to the public provider upon terms and conditions that are just, reasonable, and nondiscriminatory. Notwithstanding any other provision of this chapter, every public provider may acquire, establish, purchase, construct, maintain, enlarge, extend, lease, improve, and operate cable systems, telecommunications equipment, and telecommunications systems, and may furnish cable service, interactive computer service, Internet access, other Internet services, and telecommunications service, or any combination thereof, for the use of the public provider, and in the case of a public provider that is a municipality, any department or agency of the municipality, any public corporation, board, or authority that is an agency, department, or instrumentality of the municipality, and any public school located within the corporate limits or police jurisdiction of the municipality; and in the case of a public provider that is a municipal instrumentality, any department or agency of the municipality in which the municipal instrumentality was organized, and any public school located within the corporate limits or police jurisdiction of the municipality in which the municipal instrumentality was organized. Nothing contained in this chapter shall affect the authority of the state or local governmental agencies to manage the public rights-of-way or to require fair and reasonable compensation from telecommunications providers, on a competitively neutral and nondiscriminatory basis, for use of public rights-of-way.

"(b) If a public provider intends to serve an area outside of its jurisdiction or municipal boundaries, the public provider shall give a 12-month notice of the intent of the public provider to serve an area so that any private provider currently serving the area may determine if it will serve the area with the same level or capacity of service to be provided by the public provider.

"(c)(1) A public provider may serve an area or areas in the county in which the public provider is headquartered and in an area or areas within any contiguous county of the county in which the public provider is headquartered.

"(2) A public provider authorized by this section to provide service may only provide service for Internet, cable, or phone, or any combination thereof, and may not provide service for the purposes of this section for power, water, or any other service the public provider offers.

"(d)(1) Nothing in this act shall be interpreted to prohibit the use of public funds or alter the full faith and credit of a municipality under Section 11-50B-9.

"(2) Nothing in this act shall be interpreted to restrict a municipality from accessing federal or state funding provided on a formula or competitive basis, including funds derived from the Universal Service Fund, USDA Rural Development, or the National Telecommunications and Information Administration.

"(e) No public funds shall be used to finance the expansion of a public provider, only revenue bonds, cash, grants, loans, or matching dollars may be used as a source of financing.

"(f) A municipality that provides service outside of its municipal boundaries as of January 31, 2016, shall pay all taxes and fees that would be due if it were any other entity."

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Telecommunications

Municipalities

Counties

Utilities

Code Amended