SB391 Alabama 2016 Session

Summary

Primary Sponsor

Clay Scofield

Republican

Session

Regular Session 2016

Title

Municipality, telecommunication services, right-of-way, compensation required to be cost based, Sec. 11-50B-3 am'd.

Summary

SB391 would require rights-of-way fees charged by municipalities and public providers to be cost-based, prohibiting in-kind compensation and guiding fee structures.

What This Bill Does

The bill amends Section 11-50B-3 to require that fair and reasonable compensation for use of public rights-of-way be cost-based, and it prohibits requiring in-kind fiber or network build-out as payment. It allows fee structures such as a permitting fee, a fee per linear foot, or a percentage of gross revenues earned within city limits (minus wholesale revenues). It also preserves government authority to manage rights-of-way and requires public providers to offer nondiscriminatory, unbundled access to their telecom equipment for telecommunications carriers and electric cooperatives, with lease terms up to 25 years.

Who It Affects

• Municipalities and municipal instrumentalities that provide telecommunication services, as they would determine and impose cost-based rights-of-way fees.
• Telecommunications carriers and electric cooperatives that use public rights-of-way or access public telecom equipment, as they would pay cost-based fees and receive nondiscriminatory, unbundled access.

Key Provisions

• Rights-of-way compensation must be cost-based and cannot require in-kind fiber or network build-out as payment.
• Allowed fee structures include a permitting fee, a fee per linear foot, or a percentage of gross revenues originating and terminating in the city limits (minus wholesale revenues).
• Public providers must provide nondiscriminatory, unbundled access to their telecom equipment for telecommunications carriers and electric cooperatives.
• Public providers may lease to others any cable systems and telecommunications equipment, with lease terms not exceeding 25 years.
• The bill retains local government authority to manage rights-of-way.
• Effective date: the act becomes law on the first day of the third month after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities