§ 10-18-303 — General operating limitations -- Notice of change to price list.

(1) A municipality that provides a broadband service, a cable television service, or a public telecommunications service under this chapter is subject to the operating limitations of this section.
(2) A municipality that provides a broadband service shall comply with:
(2)(a) the Communications Act of 1934, as amended; and
(2)(b) the regulations issued by the Federal Communications Commission under the Communications Act of 1934, as amended.
(3) A municipality that provides a cable television service shall comply with:
(3)(a) the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.; and
(3)(b) the regulations issued by the Federal Communications Commission under the Cable Communications Policy Act of 1984, 47 U.S.C. 521, et seq.
(4) A municipality that provides a public telecommunications service shall comply with:
(4)(a) the Communications Act of 1934, as amended;
(4)(b) the regulations issued by the Federal Communications Commission under the Communications Act of 1934, as amended;
(4)(c) Section 54-8b-2.2 relating to:
(4)(c)(i) the interconnection of essential facilities; and
(4)(c)(ii) the purchase and sale of essential services; and
(4)(d) the rules made by the Public Service Commission of Utah under Section 54-8b-2.2.
(5) A municipality may not cross subsidize a broadband service, cable television service, or public telecommunications service with:
(5)(a) tax dollars;
(5)(b) income from other municipal or utility services;
(5)(c) below-market rate loans from the municipality; or
(5)(d) any other means.
(6) (6)(a) A municipality may not make or grant any undue or unreasonable preference or advantage to the municipality or to any private provider of:
(6)(a)(i) a broadband service;
(6)(a)(ii) a cable television service; or
(6)(a)(iii) a public telecommunications service.
(6)(b) A municipality shall apply, without discrimination as to the municipality or a private provider, the municipality's ordinances, rules, policies, and practices, including those relating to:
(6)(b)(i) obligation to serve;
(6)(b)(ii) access to and use of public rights of way;
(6)(b)(iii) access to and use of municipally owned or controlled conduit, towers, and utility poles;
(6)(b)(iv) permitting;
(6)(b)(v) performance bonding;
(6)(b)(vi) reporting;
(6)(b)(vii) quality of service; and
(6)(b)(viii) administration of or participation in federal, state, or local funding opportunities for broadband deployment.
(6)(c) Subsections (6)(a) and (b) do not supersede the exception for a rural telephone company in 47 U.S.C. Sec. 251.
(7) In calculating the rates charged by a municipality for a broadband service, a cable television service, or a public telecommunications service, the municipality:
(7)(a) shall include within its rates an amount equal to all taxes, fees, and other assessments that would be applicable to a similarly situated private provider of the same services, including:
(7)(a)(i) federal, state, and local taxes;
(7)(a)(ii) franchise fees;
(7)(a)(iii) permit fees;
(7)(a)(iv) pole attachment fees; and
(7)(a)(v) fees similar to those described in Subsections (7)(a)(i) through (iv); and
(7)(b) may not price a broadband service, cable television service, or public telecommunications service at a level that is less than the sum of:
(7)(b)(i) the actual direct costs of providing the service;
(7)(b)(ii) the actual indirect costs of providing the service; and
(7)(b)(iii) the amount determined under Subsection (7)(a).
(8) (8)(a) A municipality that provides a broadband service, cable television service, or public telecommunications service shall establish and maintain a comprehensive price list of all broadband services, cable television services, or public telecommunications services offered by the municipality.
(8)(b) The price list described in Subsection (8)(a) shall:
(8)(b)(i) include all terms and conditions relating to the municipality providing each broadband service, cable television service, or public telecommunications service offered by the municipality;
(8)(b)(ii) be posted on the Utah Public Notice Website created in Section 63A-16-601; and
(8)(b)(iii) be available for inspection:
(8)(b)(iii)(A) at a designated office of the municipality; and
(8)(b)(iii)(B) during normal business hours.
(8)(c) At least five days before the date a change to a municipality's price list becomes effective, the municipality shall provide notice of the change:
(8)(c)(i) for the municipality, as a class A notice under Section 63G-30-102, for at least five days; and
(8)(c)(ii) to any other persons requesting notification of any changes to the municipality's price list.
(8)(d) A municipality may not offer a broadband service, a cable television service, or a public telecommunications service except in accordance with the prices, terms, and conditions set forth in the municipality's price list.
(9) A municipality may not offer to provide or provide a broadband service, cable television service, or public telecommunications service to a subscriber that does not reside within the geographic boundaries of the municipality.
(10) (10)(a) A municipality shall keep accurate books and records of the municipality's:
(10)(a)(i) broadband services;
(10)(a)(ii) cable television services; and
(10)(a)(iii) public telecommunications services.
(10)(b) The books and records required to be kept under Subsection (10)(a) are subject to legislative audit to verify the municipality's compliance with the requirements of this chapter including:
(10)(b)(i) pricing;
(10)(b)(ii) recordkeeping; and
(10)(b)(iii) antidiscrimination.
(11) (11)(a) A municipality shall annually produce a report of the municipality's provision of broadband services, cable television services, and public telecommunications services.
(11)(b) The report described in Subsection (11)(a) shall include, for each broadband service, cable television service, or public telecommunications service provided by the municipality:
(11)(b)(i) the price list described in Subsection (8) that is effective at the time of the report;
(11)(b)(ii) the number of households and businesses within the coverage area of the municipality's network;
(11)(b)(iii) the number of subscribers to the service, including net additions or losses, for the prior fiscal year;
(11)(b)(iv) the revenues generated from the service for the prior fiscal year;
(11)(b)(v) a full-cost accounting for the prior fiscal year regarding:
(11)(b)(v)(A) the municipality's purchase, lease, construction, maintenance, and operation of the facilities necessary to provide the service; and
(11)(b)(v)(B) the municipality's expenditure of funds for labor, financing, and administering the service;
(11)(b)(vi) the projected growth in demand in the municipality for the service for the next 10 years;
(11)(b)(vii) the projections, from the time of the report for the next 10 years, of a full-cost accounting for a municipality to purchase, lease, construct, maintain, or operate the facilities necessary to provide the service;
(11)(b)(viii) the projections, from the time of the report for the next 10 years, of the revenues to be generated from the service;
(11)(b)(ix) with respect to the information described in Subsections (11)(b)(iv) through (viii), a comparison to the results of the feasibility study for the service adopted by the municipality under Section 10-18-202;
(11)(b)(x) a determination as to whether the revenues described in Subsection (11)(b)(iv) exceed the costs described in Subsection (11)(b)(v) by the amount necessary to meet the bond obligations of any bonds issued to fund the service; and
(11)(b)(xi) a disclosure of events in the prior fiscal year that are material to the municipality's issuance of bonds to fund the service, including:
(11)(b)(xi)(A) debt service delinquencies and defaults;
(11)(b)(xi)(B) non-payment covenant defaults;
(11)(b)(xi)(C) unscheduled reserve fund draws;
(11)(b)(xi)(D) adverse tax opinions;
(11)(b)(xi)(E) credit rating changes;
(11)(b)(xi)(F) bond calls;
(11)(b)(xi)(G) tender offers; and
(11)(b)(xi)(H) private debt placements.
(11)(c) The report shall be submitted to the legislative body of the municipality before October 1 of each year with a summary of the report findings that is no longer than one page in length.
(11)(d) At the next regular meeting after the legislative body of the municipality receives the report, the legislative body shall schedule a public hearing to be held within 30 days after the day of the meeting at which the public hearing is scheduled, for the purpose of allowing:
(11)(d)(i) the municipality's staff to present the report; and
(11)(d)(ii) the public to become informed and ask questions about the report findings.
(11)(e) The municipality shall provide notice of the public hearing described in Subsection (11)(d) for the municipality, as a class A notice under Section 63G-30-102, for at least two weeks before the day on which the public hearing is held.
(11)(f) After the public hearing described in Subsection (11)(d), the legislative body of the municipality shall:
(11)(f)(i) adopt by resolution the report described in Subsection (11)(a); and
(11)(f)(ii) make the report available for inspection at a designated office of the municipality during normal business hours and via hyperlink on the municipality's website.
(12) A municipality may not receive distributions from the Universal Public Telecommunications Service Support Fund established in Section 54-8b-15.

Legislative History

Amended by Chapter 45, 2025 General Session