SB 556 – HB 1136
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 15, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 556 – HB 1136
SUMMARY OF BILL: Clarifies the prohibition against the Tennessee Public Utility
Commission (TPUC) or any subdivision of the state from enacting, adopting, or enforcing any law,
rule, regulation or other provision with the force of law which has the effect of regulating the entry,
rates, terms, or conditions of broadband internet access service or otherwise treating a provider of
such service as a carrier. Adds interconnected VoIP services to this prohibition.
Clarifies that this Act does not modify or affect the rights or obligations of any carrier under the
federal Telecommunications Act of 1996 or restrict: (1) any authority delegated to TPUC or another state
agency to administer a federal grant program under federal statute, rule, or order; (2) the application
to broadband internet access service, or providers thereof, of any law that applies generally to the
conduct of business in this state related to consumer protection and fair competition; or (3) the
assessment of nondiscriminatory fees against interconnected VoIP service associated with enhanced
911 service, telecommunications relay services, or universal service assessments under Tenn. Code
Ann. § 65-5-107.
Deletes the requirement of TPUC to annually prepare a report regarding telecommunications
providers and their customers and provide such report to the General Assembly.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 65-5-203, the decisions of the Federal Communications
Commission (FCC) preempt state actions that are not in accordance with the policies
developed by the FCC and TPUC is prohibited from exercising jurisdiction of broadband
services, regardless of the entity providing the service.
• Based on information from TPUC, this legislation clarifies current statute to reflect that
broadband is regulated at the federal level.
• Additionally, this legislation prohibits any actions that could be taken by TPUC or any
subdivision of the state to regulate broadband or VoIP that is not in accordance with
federal law.
• Neither this state nor any subdivision of the state currently regulates broadband or VoIP.
• Deleting the requirement for TPUC to prepare and submit an annual telecommunications
report will have no significant impact on TPUC.
• This legislation will have no significant impact on state or local government.
SB 556 – HB 1136 2
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumption:
• This legislation will have no significant impact on commerce or jobs in this state.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director