SB378 Alabama 2017 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2017

Title

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

Summary

SB378 requires right-of-way fees charged to telecom providers by municipalities to be cost-based.

What This Bill Does

It amends Section 11-50B-3 to require fair and reasonable compensation for the use of public rights-of-way to be cost-based. Fees can be based on permits, a charge per linear foot, or a percentage of gross revenues earned inside city limits, and in-kind fiber or network build-out cannot be counted as payment. It also preserves municipalities' and public providers' authority to offer telecom services and to lease unused assets, while mandating nondiscriminatory access to unbundled equipment for telecommunications carriers and electric cooperatives. Additional provisions cover compliance with alarm-system installer rules and set lease terms up to 25 years.

Who It Affects

• Private telecommunications providers that use public rights-of-way; they would pay cost-based fees for right-of-way use and must avoid in-kind compensation.
• Municipalities and public providers that own or manage rights-of-way; they would charge cost-based, fair, and nondiscriminatory compensation and may lease unused assets, while ensuring open access to equipment for carriers.

Key Provisions

• Rights-of-way fees must be cost-based; compensation for use of public rights-of-way shall be fair and reasonable and not include in-kind fiber or network build-out.
• Fee methods may include permitting fees, per-linear-foot charges, or a percentage of gross revenues originating and terminating in the city limits (excluding wholesale revenues).
• Public providers may lease unused cable systems and telecommunications equipment and must offer nondiscriminatory, unbundled access to equipment for telecommunications carriers and electric cooperatives on just and reasonable terms.
• Public providers may continue to furnish advanced telecommunications services and may lease or otherwise deploy telecom assets; lease terms may not exceed 25 years.
• Public providers and alarm installers must comply with Alabama Electronic Security Board rules when installing alarm systems.

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