Bill No.: SF0080                     Drafter:  LGC

LSO No.:   07LSO-0270                 Effective Date:  7/1/2007

Enrolled Act No.:    SEA0054

Chapter No.:         CH0118

Prime Sponsor:       Joint Corporations, Elections and Political Subdivisions Interim Committee

Catch Title:         Telecommunications-exclusive contracts.

Subject:             Restrictions on the use of exclusive telecommunications contracts by cities, towns and political subdivisions.

Summary/Major Elements:

· Under this act, before a city, town or political subdivision may enter into an exclusive contract for the construction, maintenance or operation of a telecommunications service, the governing body must:

o  Determine, after notice and opportunity for a hearing, that no private provider is currently providing substantially the same or similar service anywhere within the governing body's boundaries;

o  Have submitted a request to all private telecommunications providers providing services in the boundaries of the city, town or political subdivision for provision of the service;

o  Determine, after notice and opportunity for hearing that the providers that were submitted a request have not agreed within 90 days to provide the same service or, if they have agreed, that they have not commenced providing the service.

· An exclusive telecommunications contract must be limited to no more than six years.

· The act does not restrict the governing body from providing a telecommunications service or facility for its own use, for emergency service, for medical or educational purposes or to students by an educational institution.

· The act does not restrict a governing body from operating a telecommunications utility, but if they do, they must provide the service on a non-discriminatory, nonexclusive and neutral basis and at a price which covers their imputed costs.

· The act provides for remedies for noncompliance, by complaint to and hearing and action by the public service commission.