Bill Text: MS SB2717 | 2019 | Regular Session | Introduced
Bill Title: Broadband deployment by electric cooperatives; authorize with certain requirements.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-02-05 - Died In Committee [SB2717 Detail]
Download: Mississippi-2019-SB2717-Introduced.html
MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Energy
By: Senator(s) Harkins
Senate Bill 2717
AN ACT TO PROVIDE FOR THE DEPLOYMENT OF BROADBAND BY ELECTRIC COOPERATIVES; TO DEFINE CERTAIN TERMS; TO PROVIDE FOR OWNERSHIP AND OPERATION OF BROADBAND SYSTEMS; TO PROVIDE THAT PUBLIC FUNDS RECEIVED FOR THE DEPLOYMENT OF BROADBAND SERVICE MAY ONLY BE USED TO PROVIDE BROADBAND SERVICE IN UNSERVED AREAS; TO REQUIRE NONDISCRIMINATION IN POLE ACCESS; TO PREVENT INTERFERENCE WITH ELECTRIC SYSTEM RELIABILITY; TO AUTHORIZE THE STATE AUDITOR TO INSPECT THE BOOKS OF AN ELECTRIC COOPERATIVE, ITS AFFILIATES OR COMMERCIAL PARTNERS TO ENSURE COMPLIANCE WITH THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. As used in this act, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a)
"Affiliate" means any entity that: (i) is wholly or partially owned
by an electric cooperative or otherwise meets the definition of affiliate
provided in Section 77-3-3(g); and (ii) provides broadband service or owns and
operates a broadband system utilizing the system of an electric cooperative.
(b) "Authorized attacher" means a communications services
provider that is otherwise authorized to attach to poles in Mississippi.
(c) "Broadband system" means the fiber, cables, materials,
equipment, or other facilities that are used or are useful for the provision of
broadband service.
(d) "Broadband service" means broadband Internet access
service as defined by the Federal Communications Commission ("FCC")
in 47 C.F.R. Section 8.1(b).
(e) "Commercial
partner" means any entity that contracts or otherwise makes any
arrangement with an electric cooperative to provide or market broadband service
using the electric cooperative's system, but does not include an entity that
contracts only to attach communications facilities to poles that are owned or
controlled by the electric cooperative.
(f) "Communications facility" means the set of equipment
and network components, including cable, wires, antennas and associated
facilities used by a cable operator, as defined in 47 U.S.C. Section 522(5), a
telecommunications carrier, as defined in 47 U.S.C. Section 153(51), or a
broadband system, to provide communications Services.
(g) "Communications services" means services provided over a communications facility including broadband service, cable service as defined in 47 U.S.C. Section 522(6), video service, telecommunications service as defined in 47 U.S.C. Section 153(53), Voice over Internet Protocol service, ethernet transport, business data services, and/or wireless backhaul.
(h) "Electric cooperative" means an electric power association formed or operating under Sections 77-5-201, et seq.
(i) "Energy" is defined in accordance with Section 77-5-203(d).
(j) "Fixed terrestrial broadband service provider" shall mean the provision of broadband service that is not intended to be strictly mobile or dependent on satellite for service delivery.
(k) "System" shall mean and include any plant, works, system, facilities or properties, or parts thereof, together with all appurtenances thereto, used or useful in connection with the generation, production, transmission or distribution of energy in accordance with Section 77-5-203(f).
(l) "Unserved Areas" are the smallest geographic areas for which the FCC collects Form 477 data and makes that data available in the FCC Broadband Map, or any successor FCC report providing such data, and in or for which:
(i) Consumers do not have access to a fixed terrestrial broadband service provider offering download speeds and upload speeds equivalent to at least the minimum speeds the FCC requires to receive high-cost support from the Connect America Fund II model-based support (10/1 Mbps); and
(ii) There is no existing commitment, which is reasonably likely to be fulfilled based on publicly available information, by a fixed terrestrial broadband service provider to build a broadband system using, in whole or in part: federal or state grants, loans or subsidies; and/or private capital.
SECTION 2. (1) Subject to the terms and conditions provided for in this act, every Electric cooperative is authorized to:
(a) Own, construct, maintain and operate a broadband system within the authorized service area of its system; and
(b) Establish, acquire, and wholly or partially own one or more affiliates.
(2) An electric cooperative may allow its affiliates or commercial partners to own, lease, construct, maintain and operate a broadband system on the electric cooperative's system and to provide broadband service utilizing the electric cooperative's broadband system or other parts of its system.
(3) To the extent an electric cooperative, its affiliate, or its commercial partner receives public funds for the deployment of broadband service or a broadband system, the electric cooperative, affiliate or commercial partner may only use such funds to construct, maintain or operate a broadband system and/or provide broadband service in unserved areas.
(a) If an electric cooperative or its affiliate or its commercial partner believes that an area shown on the FCC Broadband Map, or any successor FCC report providing such data, as served by a fixed terrestrial broadband service provider is actually an unserved area, it may file a challenge supported by documentary evidence with the State Auditor demonstrating that the area is an unserved area.
(b) If a fixed terrestrial broadband service provider believes that an area shown on the FCC Broadband Map, or any successor FCC report providing such data, as an unserved area is actually served, it may file a challenge supported by documentary evidence with the State Auditor demonstrating that the area is served.
(c) The State Auditor shall establish rules and procedures to resolve challenges over unserved areas that afford the fixed terrestrial broadband service providers identified as serving the challenged area of the FCC Broadband Map, or successor report, a reasonable opportunity to respond to any challenge.
(4) An electric cooperative providing broadband service or deploying or operating a broadband system, including through any affiliate or commercial partner:
(a) Shall administer and operate any broadband service or broadband system as a separate subsidiary;
(b) Shall separately account for the revenues, costs, property and source of investment dollars associated with the provision of broadband service and the deployment and operations of a broadband system;
(c) Shall cause to be performed an annual audit of the financial records concerning the broadband service and/or broadband system operations of the electric cooperative and its affiliates and commercial partners;
(d) Shall file an annual report with the State Auditor, which shall be made publicly available, demonstrating that the requirements of Section 2(4) of this act have been met, including a summary of the results of the audit required under Section 2(4)(d) of this act and a sworn statement by a financial officer of the entity certifying the accuracy of the report;
(e) Shall not provide any subsidies for broadband services or a broadband system and shall administer, operate and maintain the system separately in all respects, including establishing and maintaining a separate fund for the revenues from electric operations, and shall not directly or indirectly mingle system funds or accounts, or otherwise consolidate or combine the financing of the system, with those of any other of its operations in areas or to customers being served by other fixed terrestrial broadband service providers with download speeds of at least ten (10) megabits per second (10 Mbps) and upload speeds of at least one (1) megabit per second (1 Mbps); and
(f) In an unserved area, an electric cooperative may allow its commercial partners to own, lease, construct, maintain, and operate a broadband system on the electric cooperative's system and to provide broadband service utilizing the electric cooperative's broadband system or other parts of its system.
SECTION 3. (1) An electric cooperative that elects to provide broadband service or to deploy or operate a broadband system, including through an affiliate or commercial partner, shall provide cable operators, telecommunications carriers, and authorized attachers with nondiscriminatory access to locate their equipment for the provision of communications services on infrastructure and/or poles owned or controlled by the electric cooperative or any affiliate as defined by Section 77-3-3(g) on just, reasonable, and nondiscriminatory terms and conditions that are consistent with the regulatory obligations provided by the FCC for FCC regulated utilities and at rates that are no higher than those permitted by the FCC rate formulas set forth in 47 C.F.R. Section 1.1406(d).
(2) Any authorized attacher shall not be required to bear any of the costs of rearranging or replacing its attachment on a pole, if such rearrangement or replacement is required to accommodate an additional attachment or the modification of an existing attachment sought by an electric cooperative, affiliate or a commercial partner to deploy a broadband system or to provide broadband service.
(3) Complaints by cable operators, telecommunications carriers, and authorized attachers that are unaffiliated with the electric cooperative as to the rates, terms, and conditions offered for access to the poles owned or controlled by an electric cooperative shall be adjudicated by State Auditor in a manner that is consistent with the FCC's complaint process for access to poles.
(4) Whenever the State Auditor shall find, upon complaint by an authorized attacher, that the rates, terms or conditions demanded, exacted, charged or collected by an electric cooperative in connection with access to the infrastructure poles it owns or controls are not just, reasonable, and nondiscriminatory, the State Auditor will determine the just, reasonable and nondiscriminatory rates, terms and conditions thereafter to be observed and in force and fix the same by final order entered within three hundred sixty-five (365) days after the filing of the complaint. The State Auditor will enter an initial order resolving a complaint filed in conformance with this rule within six (6) months of the date the complaint is filed. The State Auditor may extend this deadline for good cause. In the event that a rate is deemed to exceed the rate provided for herein, the State Auditor shall order the electric cooperative, including any affiliate thereof, to reimburse the authorized attacher for the excessive rent that has been paid through the applicable statute of limitations.
(5) Except as provided in this section, the State Auditor's procedural rules govern complaints filed pursuant to this section.
SECTION 4. (1) An electric cooperative shall not allow the installation or operation of a broadband system on its system by an affiliate or a commercial partner to diminish the reliability of the system.
(2) An electric cooperative shall not require any person to purchase broadband service from itself, an affiliate or a commercial partner as a condition of receiving or continuing to receive energy from the electric cooperative.
(3) An electric cooperative shall not disconnect, or threaten to disconnect, its energy service to any customer due to the customer's failure to pay for broadband service provided to the customer by the electric cooperative, an affiliate or a commercial partner.
(4) An electric cooperative shall not discount the cost of its energy service or provide any other benefit to any customer due to the customer subscribing to broadband service provided to the customer by the electric cooperative, an affiliate or a commercial partner.
SECTION 5. (1) Nothing in this act shall be construed to relieve an electric cooperative, its affiliates and commercial partners from any requirement: (a) to obtain a franchise or other required authorization to offer cable service, video service, or other communications services; or (b) to obtain any franchise or other required authorization to install, place, maintain, or operate communications facilities in the public rights-of-way. the terms and conditions of any such franchise or other authorization shall not be more favorable or less burdensome than the terms and conditions of the franchise or other authorization of other communications service providers.
(2) The provisions of this act are not severable, and if any provision of this act is declared invalid or substantially impaired for any reason, then all provisions of this act shall also be invalid.
(3) The State Auditor is authorized to inspect the books of an electric cooperative and its affiliates or commercial partners to ensure compliance with this act.
SECTION 6. This act shall take effect and be in force from and after July 1, 2019.
