Chief Sponsor: Stephen G. Handy

Senate Sponsor: J. Stuart Adams


8     General Description:
9          This bill repeals the section of the Transportation Code creating the
10     Telecommunications Advisory Council.
11     Highlighted Provisions:
12          This bill:
13          ▸     repeals the section of the Transportation Code creating the Telecommunications
14     Advisory Council; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          72-7-108, as last amended by Laws of Utah 2008, Chapter 382
23     REPEALS:
24          72-7-109, as last amended by Laws of Utah 2014, Chapter 63

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 72-7-108 is amended to read:

28          72-7-108. Longitudinal telecommunication access in the interstate highway
29     system -- Definitions -- Agreements -- Compensation -- Restrictions -- Rulemaking.
30          (1) As used in this section:
31          (a) "Longitudinal access" means access to or use of any part of a right-of-way of a
32     highway on the interstate system that extends generally parallel to the right-of-way for a total of
33     30 or more linear meters.
34          (b) "Statewide telecommunications purposes" means the further development of the
35     statewide network that meets the telecommunications needs of state agencies and enhances the
36     learning purposes of higher and public education.
37          (c) "Telecommunication facility" means any telecommunication cable, line, fiber, wire,
38     conduit, innerduct, access manhole, handhole, tower, hut, pedestal, pole, box, transmitting
39     equipment, receiving equipment, power equipment, or other equipment, system, and device
40     used to transmit, receive, produce, or distribute via wireless, wireline, electronic, or optical
41     signal for communication purposes.
42          (2) (a) Except as provided in Subsection (4), the department may allow a
43     telecommunication facility provider longitudinal access to the right-of-way of a highway on the
44     interstate system for the installation, operation, and maintenance of a telecommunication
45     facility.
46          (b) The department shall enter into an agreement with a telecommunication facility
47     provider and issue a permit before granting it any longitudinal access under this section.
48          (i) Except as specifically provided by the agreement, a property interest in a
49     right-of-way may not be granted under the provisions of this section.
50          (ii) An agreement entered into by the department under this section shall:
51          (A) specify the terms and conditions for the renegotiation of the agreement;
52          (B) specify maintenance responsibilities for each telecommunication facility;
53          (C) be nonexclusive; and
54          (D) be limited to a maximum term of 30 years.
55          (3) (a) The department shall require compensation from a telecommunication facility
56     provider under this section for longitudinal access to the right-of-way of a highway on the
57     interstate system.
58          (b) The compensation charged shall be:

59          (i) fair and reasonable;
60          (ii) competitively neutral;
61          (iii) nondiscriminatory;
62          (iv) open to public inspection;
63          (v) established to promote access by multiple telecommunication facility providers;
64          (vi) established for zones of the state, with zones determined based upon factors that
65     include population density, distance, numbers of telecommunication subscribers, and the
66     impact upon private right-of-way users;
67          (vii) established to encourage the deployment of digital infrastructure within the state;
68          (viii) set after the department conducts a market analysis to determine the fair and
69     reasonable values of the right-of-way based upon adjacent property values;
70          (ix) a lump sum payment or annual installment, at the option of the
71     telecommunications facility provider; and
72          (x) set in accordance with Subsection (3)(f).
73          (c) (i) The compensation charged may be cash, in-kind compensation, or a combination
74     of cash and in-kind compensation.
75          (ii) In-kind compensation requires the agreement of both the telecommunication
76     facility provider and the department.
77          (iii) The department shall[, in consultation with the Telecommunications Advisory
78     Council created in Section 72-7-109,] determine the present value of any in-kind compensation
79     based upon the incremental cost to the telecommunication facility provider.
80          (iv) The value of in-kind compensation or a combination of cash and in-kind
81     compensation shall be equal to or greater than the amount of cash compensation that would be
82     charged if the compensation is cash only.
83          (d) (i) The department shall provide for the proportionate sharing of costs among the
84     department and telecommunications providers for joint trenching or trench sharing based on
85     the amount of conduit innerduct space that is authorized in the agreement for the trench.
86          (ii) If two or more telecommunications facility providers are required to share a single
87     trench, each telecommunications facility provider in the trench shall share the cost and benefits
88     of the trench in accordance with Subsection (3)(d)(i) on a fair, reasonable, competitively
89     neutral, and nondiscriminatory basis.

90          (e) The market analysis under Subsection (3)(b)(viii) shall be conducted at least every
91     five years and any adjustments warranted shall apply only to agreements entered after the date
92     of the new market analysis.
93          (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
94     department shall establish a schedule of rates of compensation for any longitudinal access
95     granted under this section.
96          (4) The department may not grant any longitudinal access under this section that results
97     in a significant compromise of the safe, efficient, and convenient use of the interstate system
98     for the traveling public.
99          (5) The department may not pay any cost of relocation of a telecommunication facility
100     granted longitudinal access to the right-of-way of a highway on the interstate system under this
101     section.
102          (6) (a) Monetary compensation collected by the department in accordance with this
103     section shall be deposited with the state treasurer and credited to the Transportation Fund.
104          (b) Any telecommunications capacity acquired as in-kind compensation shall be used[:
105     (i)] exclusively for statewide telecommunications purposes and may not be sold or leased in
106     competition with telecommunication or Internet service providers[; and].
107          [(ii) as determined by the department after consultation with the Telecommunications
108     Advisory Council created in Section 72-7-109.]
109          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
110     department shall make rules:
111          (a) governing the installation, operation, and maintenance of a telecommunication
112     facility granted longitudinal access under this section;
113          (b) specifying the procedures for establishing an agreement for longitudinal access for
114     a telecommunication facility provider;
115          (c) providing for the relocation or removal of a telecommunication facility for:
116          (i) needed changes to a highway on the interstate system;
117          (ii) expiration of an agreement; or
118          (iii) a breach of an agreement; and
119          (d) providing an opportunity for all interested providers to apply for access within open
120     right-of-way segments.

121          (8) (a) Except for a right-of-way of a highway on the interstate system, nothing in this
122     section shall be construed to allow a highway authority to require compensation from a
123     telecommunication facility provider for longitudinal access to the right-of-way of a highway
124     under the highway authority's jurisdiction.
125          (b) Nothing in this section shall affect the authority of a municipality under:
126          (i) Section 10-1-203;
127          (ii) Section 11-26-1;
128          (iii) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act; or
129          (iv) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
130          (9) Compensation paid to the department under Subsection (3) may not be used by any
131     person as evidence of the market or other value of the access for any other purpose, including
132     condemnation proceedings, other litigation, or the application of rates of taxation or the
133     establishment of franchise fees relating to longitudinal access rights.
134          Section 2. Repealer.
135          This bill repeals:
136          Section 72-7-109, Telecommunications Advisory Council -- Membership -- Duties.

Legislative Review Note
Office of Legislative Research and General Counsel