Introduced

SB 186 - This act modifies the authority of local governments to offer certain communications services.

Under this act, a local government, including any city, town or village, is prohibited from providing a competitive service except as provided in this act. This act defines "competitive service" as a wholesale or retail offering of a specific communication service that is provided by one or more service providers within the boundaries of the local government. In addition to exceptions set forth in this act, a local government may offer a competitive service if the complete a feasibility study and release the results of such study to the public, and such service is approved by a majority of voters. Upon voter approval, the local government may expand such infrastructure to provide additional features. The question options that shall be submitted to the voters for approval are set forth in this act.

Under this act, if a local government offers a communications service where a private business also offers such service, the local government may not financially support the service with revenue collected from other sources, and no assets or funds from the local government shall support such service unless approved by the voters. Additionally, if a subdivision seeks to use the infrastructure of the local government for providing a competitive service, the subdivision shall pay the local government the fair market value for using such infrastructure. Any competitive service offered by a local government shall also not receive preferential access to the public right-of-way, and the service provided shall not be provided under exclusive service arrangements. Further, a local government may issue a loan to a subdivision wishing to provide competitive service so long as the loan is less than 5 years in length, the total of all loans is $1 million or less, and the interest rate on the loan is 1% or less above prime.

If any resident or private business providing a competitive service within a local government believes that the local government is violating the provisions of this act, they may seek judicial relief. Under certain conditions, the Attorney General may also investigate the actions of the local government. If a local government is found in violation of this act, the court is required to make certain orders, and then may order additional remedies as set forth in this act.

This act is identical to HCS/HB 2078 (2016) and is similar to SB 946 (2016).

KAYLA HAHN


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