SB151 Alabama 2017 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2017

Title

Public providers of municipal telecommunication services, certain restrictions removed and delivery of services further provided for, Sec. 11-50B-3 am'd.

Summary

SB151 would expand municipal providers' ability to offer Internet, cable, and phone services beyond city limits, with geographic limits, funding rules, and notice requirements for private providers.

What This Bill Does

It removes some coverage-area restrictions and allows public (municipal) providers to deliver cable, Internet, and advanced telecommunications services beyond their municipality. If expanding outside their jurisdiction, they must give private providers 12 months' notice. Expansion is limited to the county where the provider is headquartered or a contiguous county and to Internet, cable, and phone services. Funding for expansion must come from revenue bonds, cash, grants, loans, or matching dollars, and the provider must pay all taxes and fees in the new area. The bill also allows leasing of systems, requires nondiscriminatory access to equipment for carriers and electric cooperatives, and imposes related regulatory and compliance provisions (alarm installer licensure, rights-of-way considerations).

Who It Affects

• Public providers (cities and municipal instrumentalities) would gain expanded authority to provide Internet, cable, and related services beyond their current boundaries, with rules on notice, funding sources, taxes, and potential leasing of assets.
• Private providers, telecommunications carriers, electric cooperatives, and residents in areas affected by expansion would be subject to 12-month notice requirements before expansion, may participate in access to public equipment on nondiscriminatory terms, and could experience changes in competition and service options.

Key Provisions

• Amends Section 11-50B-3 to authorize public providers to acquire, establish, purchase, construct, maintain, enlarge, extend, lease, improve, and operate cable systems and telecommunications equipment, and to furnish Internet, interactive computer service, and advanced telecommunications services (and combinations) to municipal residents and utilities areas.
• Public providers may serve only in the county where headquartered or in contiguous counties, and may provide Internet, cable, and phone services (not other utilities) outside their jurisdiction.
• If expanding outside jurisdiction, a 12-month notice must be given to private providers serving the area.
• Funding for expansion may use revenue bonds, cash, grants, loans, or matching dollars; public funds cannot be used for expansion.
• The public provider must pay all taxes and fees due in the area it serves outside its municipal boundaries.
• Public providers must lease to others any non-needed cable/telecom systems and may provide nondiscriminatory access to equipment for telecommunications carriers and electric cooperatives on just, reasonable terms.
• Leases to public providers' assets may be up to 25 years in length.
• Alabama Electronic Security Board of Licensure requirements apply to alarm installers employed by public providers.
• Rights-of-way authority remains with state/local governments; providers must comply with fair, neutral compensation for use of rights-of-way where applicable.
• Effective date: becomes law on the first day of the third month after passage and 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

Telecommunications