OK
Oklahoma House Bill HB3835

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3835 Compare Versions

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1-An Act
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334 BILL NO. 3835 By: Martinez, Newton,
435 Fetgatter, and Caldwell
536 (Trey) of the House
637
738 and
839
940 Howard of the Senate
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1645 An Act relating to the Oklahoma Corporation
1746 Commission; creating the Facilitating Internet
1847 Broadband Rural Expansion (FIBRE) Act; defining term;
1948 requiring the use of certain pole attachment rate
2049 formula; providing certain formula; making certain
2150 exemption; requiring certain agreement pr ior to
2251 attaching; exempting certain unauthorized pole
2352 attachments; setting certain new att achment rate;
2453 stating certain contingencies; req uiring rates not
2554 include certain charges; requiring certain separate
2655 payment; requiring certain contracts; exempting
2756 certain unauthorized or noncompliant pole
2857 attachments; requiring the submission of data;
2958 providing for certain penalty; vesting authority in
3059 the Oklahoma district courts to enforce certain
3160 provisions and settle disputes; declaring certain
3261 business information to be proprietary; requiri ng
3362 certain filed information be treated in a
3463 confidential manner and subject to confidentiality
3564 order; requiring certain information to be filed
3665 under seal; allowing court to seek certain
3766 information; providing for noncodifica tion; providing
3867 for codification; and providing an effective date.
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42-SUBJECT: Oklahoma Corporation Commission
43-
4471 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
45- ENR. H. B. NO. 3835 Page 2
4672 SECTION 1. NEW LAW A new section of law not to be
4773 codified in the Oklahoma Statutes reads as follows:
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49101 This act shall be known and may be cited as the "Facilitating
50102 Internet Broadband Rural Expansio n (FIBRE) Act".
51-
52103 SECTION 2. NEW LAW A new section of law to be codified
53104 in the Oklahoma Statutes as Section 158.66 of Title 17, unless there
54105 is created a duplication in numbering, reads as follows:
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56106 A. As used in subsection B of this section, the term "attaching
57107 entity" shall include the electric attachments of rural electric
58108 cooperatives and their subsidiaries .
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60109 B. Except as otherwise provided in this section, when a ru ral
61110 electric cooperative and a communications services provider c annot
62111 agree to a voluntary negotiated pole attachmen t rate, the maximum
63112 pole attachment rate shall be governed by the following formula:
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65113 Maximum Per Pole Rate = Space Factor x Net Cost of Bare Pole x
66114 Carrying Charge Rate
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68115 Space Factor = (Occupied Space + (( 2/3 x Unusable Space)/No. of
69116 Attaching Entities)) ÷ Pole Height
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71117 Net Pole Investment = Gross Pole Investment (Account 364) -
72118 Accumulated Depreciation (Poles) – Accumulated Deferred Taxes
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74119 Carrying Charges = A rural electric cooperative's Administrative
75120 + Maintenance charges + Depreciation + Taxes + Return
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77121 Administrative = Total Admin and General Expense ÷ Net Plant
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79122 Maintenance = Account 593 Expense ÷ Net Pole Investment
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81123 Depreciation = Gross Pole Investment ÷ Net Pole Investment x
82124 Depreciation Rate
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84152 Taxes = Account 408.1 (Gross Receipts Tax) ÷ Net Plant
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86153 Return = 8%
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88154 Unusable Space = 25.0 ft
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90-Occupied Space = 1 ft ENR. H. B. NO. 3835 Page 3
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155+Occupied Space = 1 ft
92156 Presumptive Default Values
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94157 No. of Attachers = Actual number of attach ing entities to poles
95158 that have third-party attachments
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97159 Pole Height = 37.5 ft or higher based on the actual average pole
98160 height
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100161 Net Cost of Bare Pole = 85% of Net Pole Investment ÷ Total
101162 Number of Poles
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103163 This subsection shall not a pply to any pole attachments
104164 authorized under currently existing and valid pole attachment
105165 license agreements entered into prior to the effective date of this
106166 act. The determination of a maximum attachment rate does not remove
107167 the requirement of a com munications services provider to have a pole
108168 attachment agreement with the owner of the poles prior to attaching,
109169 and this subsection shall not apply to any unauthorized pole
110170 attachments.
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112171 C. Notwithstanding the maximum pole attachment rate determined
113172 in subsection B of this section, beginning on the effective date of
114173 this act and for four (4) years thereafter, the rat es charged by a
115174 rural electric cooperative for new a ttachments to cooperative -owned
116175 electric poles by providers of telecommunications, broadband, video,
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117203 Internet services, or any cooperative affiliate entity or subsidiary
118204 company, under existing pole attachment license agreements or such
119-agreements entered into on or after the effective date of this act ,
205+agreements entered into on or after the effective date of this act
120206 shall not exceed One Dollar ($1.00) per cooperative-owned electric
121207 pole per year ("One Dollar Deal"), contingent upon the following:
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123208 1. A retail broadband provider shall not have an existing
124209 attachment on the specific electric pole;
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126210 2. New attachments subject to the One Dollar Deal shall be used
127211 to serve customers located within the applicable cooperative's
128212 certified territory established under the Retail Electric Supplier
129-Certified Territory Act and are in an unserved area as defined by
130-the Oklahoma Broadband Service Map;
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213+Certified Territory Act and is in an unserved area as defined by the
214+Oklahoma Broadband Service Map;
132215 3. One Dollar Deal attachments shall be capable of providing
133216 wire-line broadband service at speeds of one hundred (100) megabits
134217 per second download and twenty (20) megabits per second upload . The
135-broadband service speeds listed in this paragraph shall be subject ENR. H. B. NO. 3835 Page 4
218+broadband service speeds listed in this paragraph shall be subject
136219 to change or update when, or if, the Feder al Communications
137220 Commission makes new rulings related to its definition of broadband
138221 and when that new definition exceeds a s peed of one hundred (100)
139222 megabits per second download and twenty (20) megabits per second
140223 upload; and
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142224 4. Within sixty (60) days of the e nd of each calendar year,
143225 applicable attaching providers shall submit written reports and
144226 information to the appropriate rural electric cooperative evi dencing
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145254 compliance with all One Dollar Deal attachment requirements. The
146255 evidence of compliance shall include the customer s served, customers
147256 passed, service level offered, and spe cific qualifying poles
148257 attached to that qualify for the One Dollar Deal. The intentional
149258 submission of any incomplete or any false information pursuant to
150259 this section shall result in a n administrative penalty of One
151260 Hundred Dollars ($100.00) a day for th e first thirty (30) days, Five
152261 Hundred Dollars ($500.00) a day for the next thirty (30) days, and
153262 One Thousand Dollars ($1,000.00) every day thereafter until accurate
154263 data is presented.
155-
156264 D. The rates provided in this section shall not include any
157265 applicable charges for electric service. A com munications services
158266 provider must pay separately for electric service and such service
159267 shall be charged to providers at the applicable retail market rate.
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161268 E. The monetary cap provided under subsection B of this section
162269 and the One Dollar Deal provided under subsection C of this section
163270 shall not eliminate the requirement of communicati ons services
164271 providers to contract with the rural electric cooperatives on terms
165272 and conditions of attachments under pole attachment license
166273 agreements.
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168274 F. This section shall not apply to any communications services
169275 provider that maintains unauthorized pole attachmen ts on cooperative
170276 poles or fails to remedy any noncompl iant pole attachments per the
171277 cooperative's direction.
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173305 G. Rural electric cooperatives shall be required to submit
174306 presumptive default values to retail broadband providers regarding
175307 pole attachments and shall provide the requested data within sixty
176308 (60) days upon the execution of a signed letter of intent and
177309 nondisclosure agreement. The intentional submission of any
178310 incomplete or any false data pursuant to this section shall result
179311 in an administrative penalty of One Hundred Dollars ($100.00) a day
180-for the first thirty (30) days, Five Hundred Dollars ($5 00.00) a day ENR. H. B. NO. 3835 Page 5
312+for the first thirty (30) days, Five Hundred Dollars ($500.00) a day
181313 for the next thirty (30) days, and One Thousand Dollars ($1,000.00)
182314 every day thereafter until accurate data is pr esented.
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184315 H. The Oklahoma district court system shall be vested with
185316 authority to enforce the provisions of this section and to settle
186317 disputes which may arise regarding pole attachments relative t o
187318 electric cooperative facilities. The electric cooperative 's
188319 business information used to calculate the formula found in
189320 subsection B of this section is sensitive and proprietary in nature
190321 and is hereby declared proprietary business information which is to
191322 be treated in a confidential manner by all parties to any legal
192323 action brought under this section, and such informatio n shall be
193324 made subject to a confidentiality order as shall be prescribed by a
194325 court. To the extent such information is filed with a c ourt, it
195326 shall be filed under seal, made available only to parties to the
196327 action under confidentiality orders, and shall not be made public.
197328 The court may seek information including, but not limited to:
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199356 1. Records that correlate to the following Federal Energy
200357 Regulatory Commission and United States Department of Agriculture
201358 Rural Utility Service Account Codes:
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203359 a. 108 – Accumulated Provision for Depreciation of
204360 Electric Utility Plant,
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206361 b. 190 – Accumulated Deferred Income Taxes,
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208362 c. 281 – Accumulated Deferred Income Taxes – Accelerated
209363 Amortization Property,
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211364 d. 282 – Accumulated Deferred Income Taxes – Other
212365 Property,
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214366 e. 283 – Accumulated Deferred Income Taxes – Other,
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216367 f. 364 – Poles, Towers, and Fixtures,
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218368 g. 365 – Overhead Conductors and Devices,
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220369 h. 369 – Services,
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222370 i. 408.1 – Taxes – Property,
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224371 j. 409.1 – Income Taxes, Utility Operating I ncome,
225- ENR. H. B. NO. 3835 Page 6
226372 k. 410.1 – Provision for Deferr ed Income Taxes, Utility
227373 Operating Income,
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229374 l. 411.1 – Provision for Deferred Income Taxes – Credit,
230375 Utility Operating Income,
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232376 m. 411.4 – Investment Tax Credit Adjustments, Utility
233377 Operations, and
378+n. 593 – Maintenance of Overhead Lines;
234379
235-n. 593 – Maintenance of Overhead Lines;
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237406 2. Number of poles owne d, leased, or operated by the electric
238407 cooperative;
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240408 3. Number of attachments on poles owned, leased, or operated by
241409 the electric cooperative;
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243410 4. Average height of poles owned, leased, or operated by the
244411 electric cooperative;
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246412 5. Cooperative-defined percentage of usable space on poles
247413 owned, leased, or operated by the electric cooperative; and
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249414 6. Cooperative's established rate of ret urn.
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251415 SECTION 3. This act shall become effective November 1, 20 22.
252- ENR. H. B. NO. 3835 Page 7
253-Passed the House of Representa tives the 24th day of March, 2022.
254-
255-
256-
257-
258- Presiding Officer of the House
259- of Representatives
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262-Passed the Senate the 25th day of April, 2022.
263-
264-
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267- Presiding Officer of the Senate
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270-
271-OFFICE OF THE GOVERNOR
272-Received by the Office of the Governor this ______ ______________
273-day of ___________________, 20_______, at _______ o'clock _______ M.
274-By: _________________________________
275-Approved by the Governor of the State of Oklahoma this _____ ____
276-day of ___________________, 20_______, at _______ o'clock _______ M.
277-
278-
279- _________________________________
280- Governor of the State of Oklahoma
281-
282-OFFICE OF THE SECRETARY OF STATE
283-Received by the Office of the Secretary of State this __________
284-day of ___________________, 20_______, at _______ o'clock _______ M.
285-By: _________________________________
286-
416+COMMITTEE REPORT BY: COMMITTEE ON BUSINESS, COMMERCE AND TOURISM
417+April 14, 2022 - DO PASS