Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-0283.01 Nicole Myers x4326 SENATE BILL 24-091 Senate Committees House Committees Transportation & Energy A BILL FOR AN ACT C ONCERNING THE CREATION OF AN ADDITIONAL PROCESS BY WHICH101 ENTITIES MAY GAIN ACCESS TO PUBLIC RIGHTS -OF-WAY FOR THE102 DEPLOYMENT OF BROADBAND .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Current law allows an entity that wants to access public rights-of-way (rights-of-way) for the deployment of broadband to enter into a public-private initiative agreement with the department of transportation (department) for the entity's access to the rights-of-way. The bill creates an alternative method for entities that want to access SENATE SPONSORSHIP Pelton B. and Mullica, HOUSE SPONSORSHIP Martinez and Catlin, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. rights-of-way for the deployment of broadband, whereby the department may issue a permit and impose a permit fee for access to rights-of-way for the deployment of broadband. The bill specifies that an entity that wants to access rights-of-way for the deployment of broadband may pursue either the permit application and fee process created in the bill or the existing public-private initiative agreement process. In issuing permits that grant access to rights-of-way, the bill: ! Requires the department to allow competitively neutral and nondiscriminatory access to broadband providers seeking to use rights-of-way for the deployment of broadband; ! Requires the department to determine the form and manner of the permit application process and to approve or deny a permit application within 30 days; ! Specifies that the term of any permit issued pursuant to the bill is 30 years and that the department cannot assert ownership of broadband infrastructure except for when a permit recipient abandons the broadband infrastructure; ! Prohibits the department from requiring the permit recipient to lay additional fiber for use by the department or any third party; ! Prohibits the department from requiring the permit recipient to provide any in-kind goods or services as a condition of granting access to rights-of way; and ! Requires the department to produce an anticipated annual budget for the costs associated with the permit application process and an anticipated annual forecast of the revenue that the department will generate from the permit fees. The department may impose a one-time permit processing fee in connection with an application to gain access to rights-of-way for the deployment of broadband (permit processing fee) so long as the fee does not exceed the department's actual costs in connection with granting or administering the permits. The department is prohibited from imposing any other fee or charge for access to rights-of-way for the deployment of broadband. The department is also prohibited from including any charge in the permit processing fee to receive compensation for the fair market value of rights-of-way or access to rights-of-way; except that if the attorney general certifies in writing to the transportation commission that excluding fair market value in the permit processing fee violates federal law and that the violation will result in the loss of federal money apportioned to the state, the department is required to include fair market value in the permit processing fee. In such case, the department is required to set the rate of fair market value at a level that does not exceed the lowest rate of fair market value established by any other state for access to that state's rights-of-way for the deployment of broadband. SB24-091 -2- Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add part 2 to article2 5.5 of title 38 as follows:3 PART 24 PERMITTING FOR PUBLIC 5 RIGHTS-OF-WAY FOR BROADBAND DEPLOYMENT6 38-5.5-201. Public rights-of-way - use for deployment of7 broadband - definition. A S USED IN THIS PART 2, UNLESS THE CONTEXT8 OTHERWISE REQUIRES, "DEPARTMENT" MEANS THE DEPARTMENT OF9 TRANSPORTATION CREATED IN SECTION 43-1-103 (1).10 38-5.5-202. Public rights-of-way - use for deployment of11 broadband - department of transportation permitting process.12 (1) (a) T HE DEPARTMENT SHALL ALLOW COMPETITIVELY NEUTRAL AND13 NONDISCRIMINATORY ACCESS TO BROADBAND PROVIDERS SEEKING TO USE14 PUBLIC RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND .15 (b) A NY ENTITY THAT INTENDS TO GAIN ACCESS TO PUBLIC16 RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND MAY CHOOSE TO17 PURSUE EITHER THE PERMIT AND FEE STRUCTURE PROCESS SPECIFIED IN18 THIS PART 2 OR THE PUBLIC-PRIVATE INITIATIVE AGREEMENT PROCESS19 SPECIFIED IN PART 12 OF ARTICLE 1 OF TITLE 43 TO GAIN ACCESS TO PUBLIC20 RIGHTS-OF-WAY.21 (c) T HE PROVISIONS OF PART 12 OF ARTICLE 1 OF TITLE 43 DO NOT22 APPLY TO THE PERMIT AND FEE STRUCTURE PROCESS CREATED IN THIS23 PART 2.24 (2) (a) T HE DEPARTMENT SHALL DETERMINE THE FORM AND25 MANNER OF THE PERMIT APPLICATION PROCESS TO GAIN ACCESS TO PUBLIC26 SB24-091-3- RIGHTS-OF-WAY FOR BROADBAND DEPLOYMENT . THE DEPARTMENT SHALL1 EITHER APPROVE OR DENY A PERMIT APPLICATION THAT IT RECEIVES2 PURSUANT TO THIS PART 2 WITHIN THIRTY DAYS OF RECEIPT OF THE3 APPLICATION.4 (b) T HE DEPARTMENT SHALL PROVIDE AN ACCEPTANCE OR DENIAL5 OF A PERMIT PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION TO THE6 PERMIT APPLICANT IN WRITING AND SHALL IDENTIFY SPECIFIC REASONS7 FOR THE APPROVAL OR THE DENIAL OF THE PERMIT APPLICATION . THE8 DEPARTMENT SHALL ALSO MAKE AVAI LABLE TO THE PUBLIC THE WRITTEN9 APPROVAL OR DENIAL REQUIRED BY THIS SUBSECTION (2)(b) IN AN ONLINE10 ELECTRONIC FORMAT.11 (3) T HE TERM OF A PERMIT ISSUED BY THE DEPARTMENT FOR12 ACCESS TO PUBLIC RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND13 PURSUANT TO THIS PART 2 IS THIRTY YEARS. THE DEPARTMENT SHALL NOT14 ASSERT OWNERSHIP OF ANY BROADBAND INFRASTRUCTURE DURING OR15 AFTER THE TERM OF THE PERMIT EXCEPT IN THE CASE THAT A PERMIT16 RECIPIENT ABANDONS THE BROADBAND INFRASTRUCTURE .17 (4) (a) W HEN ISSUING A PERMIT FOR ACCESS TO PUBLIC18 RIGHTS-OF-WAY FOR BROADBAND DEPLOYMENT PURSUANT TO THIS PART19 2, THE DEPARTMENT SHALL NOT REQUIRE THE PERMIT RECIPIENT TO LAY20 ADDITIONAL FIBER FOR USE BY THE DEPARTMENT OR ANY THIRD PARTY .21 (b) T HE DEPARTMENT SHALL NOT REQUIRE THE PERMIT RECIPIENT22 TO PROVIDE ANY IN-KIND GOODS OR SERVICES AS A CONDITION OF23 GRANTING ACCESS TO PUBLIC RIGHTS -OF WAY FOR BROADBAND24 DEPLOYMENT.25 (5) T HE DEPARTMENT SHALL PRODUCE AN ANTICIPATED ANNUAL26 BUDGET FOR THE COSTS ASSOCIATED WITH THE PERMIT APPLICATION27 SB24-091 -4- PROCESS PURSUANT TO THIS PART 2 AND AN ANTICIPATED ANNUAL1 FORECAST OF THE REVENUE THAT THE PERMIT FEE IMPOSED PURSUANT TO2 SECTION 38-5.5-203 WILL GENERATE.3 (6) T HE TERMS OF ALL PERMITS THAT THE DEPARTMENT ISSUES4 FOR THE USE OF PUBLIC RIGHTS-OF-WAY ARE MATTERS OF PUBLIC RECORD5 AND SHALL BE MADE AVAILABLE UPON REQUEST PURSUANT TO THE6 "C OLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE 24.7 38-5.5-203. Permit fees - public rights-of-way - use for8 deployment of broadband. (1) T HE DEPARTMENT MAY IMPOSE A9 ONE-TIME PERMIT PROCESSING FEE IN CONNECTION WITH AN APPLICATION10 TO GAIN ACCESS TO PUBLIC RIGHTS-OF-WAY FOR THE DEPLOYMENT OF11 BROADBAND PURSUANT TO THIS PART 2. OTHER THAN THE PERMIT12 PROCESSING FEE AUTHORIZED IN THIS SUBSECTION (1), THE DEPARTMENT13 SHALL NOT IMPOSE ANY OTHER FEE OR CHARGE FOR ACCESS TO PUBLIC14 RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND .15 (2) A PERMIT PROCESSING FEE IMPOSED BY THE DEPARTMENT16 PURSUANT TO SUBSECTION (1) OF THIS SECTION MUST BE REASONABLY17 RELATED TO THE COSTS DIRECTLY INCURRED BY THE DEPARTMENT IN18 PROVIDING SERVICES RELATING TO THE GRANTING OR ADMINISTRATION OF19 PERMITS AND, NOTWITHSTANDING ANY OTHER PROVISION OF LAW , MUST20 NOT EXCEED THE DEPARTMENT 'S ACTUAL COSTS IN CONNECTION WITH21 GRANTING OR ADMINISTERING THE PERMITS . THE FEE MUST ALSO BE22 REASONABLY RELATED IN TIME TO THE OCCURRENCE OF THE23 DEPARTMENT'S COSTS.24 (3) I F THE DEPARTMENT DERIVES ANY REVENUE FROM PERMIT FEES25 THAT EXCEED THE DEPARTMENT 'S COSTS IN PROCESSING SERVICES26 RELATING TO THE GRANTING OR ADMINISTRATION OF PERMITS PURSUANT27 SB24-091 -5- TO THIS PART 2, THE DEPARTMENT SHALL REDUCE THE AMOUNT OF THE1 FEE TO ENSURE THAT THE REVENUE FROM THE FEE DOES NOT EXCEED THE2 DEPARTMENT'S COSTS FOR PROCESSING SERVICES RELATING TO THE3 GRANTING OR ADMINISTRATION OF PERMITS PURSUANT TO THIS PART 2.4 (4) (a) E XCEPT AS OTHERWISE PROVIDED IN SUBSECTION (4)(b) OF5 THIS SECTION, THE PERMIT FEE FOR ACCESS TO PUBLIC RIGHTS-OF-WAY FOR6 THE DEPLOYMENT OF BROADBAND AS AUTHORIZED IN SUBSECTION (1) OF7 THIS SECTION MUST NOT INCLUDE ANY CHARGE OR ELEMENT TO8 RECAPTURE OR RECEIVE COMPENSATION FOR THE FAIR MARKET VALUE OF9 PUBLIC RIGHTS-OF-WAY OR ACCESS TO PUBLIC RIGHTS-OF-WAY.10 (b) (I) T HE PERMIT FEE RESTRICTION SPECIFIED IN SUBSECTION11 (4)(a) OF THIS SECTION DOES NOT APPLY IF THE ATTORNEY GENERAL12 CERTIFIES IN WRITING TO THE TRANSPORTATION COMMISSION CREATED IN13 SECTION 43-1-106 THAT EXCLUDING FAIR MARKET VALUE IN THE PERMIT14 FEE STRUCTURE FOR ACCESS TO PUBLIC RIGHTS -OF-WAY FOR THE15 DEPLOYMENT OF BROADBAND VIOLATES FEDERAL LAW AND THAT SUCH A16 VIOLATION WILL RESULT IN THE LOSS OF FEDERAL MONEY , IN WHOLE OR IN17 PART, APPORTIONED TO THE STATE.18 (II) N OTWITHSTANDING THE PROVISIONS OF SUBSECTIONS (2) AND19 (3) OF THIS SECTION, IF THE ATTORNEY GENERAL MAKES THE20 CERTIFICATION SPECIFIED IN SUBSECTION (4)(b)(I) OF THIS SECTION, THE21 DEPARTMENT SHALL SET THE RATE OF FAIR MARKET VALUE AT A LEVEL22 THAT DOES NOT EXCEED THE LOWEST RATE OF FAIR MARKET VALUE23 ESTABLISHED BY ANY OTHER STATE FOR ACCESS TO THAT STATE 'S PUBLIC24 RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND .25 (5) I N ANY CONTROVERSY CONCERNING THE APPROPRIATENESS OF26 A FEE IMPOSED PURSUANT TO THIS SECTION , THE DEPARTMENT HAS THE27 SB24-091 -6- BURDEN OF PROVING THAT:1 (a) T HE FEE DOES NOT EXCEED THE DIRECT COSTS INCURRED BY2 THE DEPARTMENT IN CONNECTION WITH GRANTING OR ADMINISTERING THE3 PERMITS FOR ACCESS TO PUBLIC RIGHTS-OF-WAY; AND4 (b) T HE RATE OF FAIR MARKET VALUE, IF APPLICABLE, IS SET AT A5 LEVEL THAT DOES NOT EXCEED THE LOWEST RATE OF FAIR MARKET VALUE6 ESTABLISHED BY ANY OTHER STATE FOR ACCESS TO THAT STATE 'S PUBLIC7 RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND .8 SECTION 2. In Colorado Revised Statutes, 43-1-1204, add (6)9 as follows:10 43-1-1204. Public-private initiative agreement - definition.11 (6) (a) A N ENTITY THAT INTENDS TO GAIN ACCESS TO PUBLIC12 RIGHTS-OF-WAY FOR THE DEPLOYMENT OF BROADBAND MAY CHOOSE TO13 USE EITHER THE PUBLIC -PRIVATE INITIATIVE AGREEMENT PROCESS14 SPECIFIED IN THIS PART 12 OR THE PERMIT AND FEE STRUCTURE PROCESS15 SPECIFIED IN PART 2 OF ARTICLE 5.5 OF TITLE 38.16 (b) T HE PROVISIONS OF PART 2 OF ARTICLE 5.5 OF TITLE 38 DO NOT17 APPLY TO ANY PUBLIC-PRIVATE INITIATIVE AGREEMENT TO GAIN ACCESS18 TO PUBLIC RIGHTS-OF-WAY ENTERED INTO PURSUANT TO THIS PART 12.19 SECTION 3. Safety clause. The general assembly finds,20 determines, and declares that this act is necessary for the immediate21 preservation of the public peace, health, or safety or for appropriations for22 the support and maintenance of the departments of the state and state23 institutions.24 SB24-091 -7-