Read the full stored bill text
- 83rd Session (2025)
Assembly Bill No. 509–Committee
on Commerce and Labor
CHAPTER..........
AN ACT relating to utilities; requiring broadband providers to enter
into agreements with local governments to access the public
right-of-way managed by the local government; requiring
such agreements to be performed in a nond iscriminatory
matter; establishing certain compensation requirements under
agreements between broadband providers and local
governments; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law authorizes a board of county commissioners to grant certain public
utilities the franchise, right and privilege to construct, install, operate and maintain
lines, mains and other utility equipment in any unincorporated town in the county
and a long the public roads and highways of the county. (NRS 709.050) Existing
law also authorizes a local government to: (1) manage the use of any public right -
of-way or highway by video service providers; and (2) require a video service
provider to pay a franc hise fee for the privilege of providing video service through
a network that occupies or uses any public right -of-way or highway within the
jurisdiction of the local government. (NRS 711.640, 711.670) Section 17.5 of this
bill provides that a broadband provider may not access the public right-of-way of a
local government responsible for the management of the public right -of-way on or
after July 1, 2026, unless the broadband provider has entered into an agreement
with the local government with respect to acc ess to the right -of-way. Section 17.5
requires a local government to execute and perform agreements with broadband
providers in a nondiscriminatory manner. Section 17.5 requires an agreement
between a broadband provider and local government to provide for compensation to
be paid to the local government, which must not exceed 2 percent of the annual
gross revenue derived by the broadband provider from providing broadband
service, broadband infrastructure access or both broadband service and broadband
infrastructure access within the jurisdiction of the local government that manages
the right -of-way. Section 19.5 of this bill prohibits a local government from
suspending or revoking a broadband provider’s access to the public right -of-way
managed by the local g overnment on the basis that the broadband provider has not
entered into an agreement with the local government pursuant to section 17.5 ,
unless such suspension or revocation occurs after July 1, 2026.
Section 17.5 excludes from the definition of “broadba nd provider” certain
persons who are: (1) authorized to act as a video service provider or to construct
and operate a video service network; (2) providers of basic network service; and (3)
providers of commercial mobile radio service. Section 18 of this bill excludes any
fee imposed by a local government pursuant to an agreement with a broadband
provider in accordance with section 17.5 from certain prohibitions on the ability of
the local government to adopt or increase certain other fees for business licenses.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sections 1-17. (Deleted by amendment.)
Sec. 17.5. Chapter 709 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A broadband provider engaged in the business of
providing, for compensation, broadband service or broadband
infrastructure access may not access the public right -of-way
managed by a local government unless the broadband provider
has entered into an agreement with the local government
responsible for managing the right -of-way pursuant to this
section.
2. A local government shall execut e and perform agreements
with broadband providers pursuant to subsection 1 in a
nondiscriminatory manner.
3. An agreement entered into pursuant to subsection 1 must
provide for compensation to be paid by the broadband provider to
the local government tha t manages the public right -of-way to
which the broadband provider is seeking access. Such
compensation:
(a) Must not exceed 2 percent of the annual gross revenue
derived from providing broadband service , broadband
infrastructure access or both broadband s ervice and broadband
infrastructure access within the jurisdiction of the local
government that manages the right-of-way; and
(b) May take the form of a franchise fee, license fee or such
other compensation as the local government may require.
4. The requirements of subsection 1 apply to any broadband
provider attempting to access the public right -of-way maintained
by a local government, regardless of whether the broadband
provider has been issued a certificate of public convenience and
necessity by the Public Utilities Commission of Nevada pursuant
to chapter 704 of NRS.
5. The provisions of this section shall not be construed as
prohibiting any person or entity from providing an interstate or
intrastate telecommunications service for the purposes of 4 7
U.S.C. § 253.
6. As used in this section:
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(a) “Broadband infrastructure access” means the provision of
open access network or other wholesale signal transmission
service for the provision of broadband service.
(b) “Broadband provider” means any person that:
(1) Provides or offers to provide broadband service,
broadband infrastructure access or both broadband service and
broadband infrastructure access;
(2) Does not hold a certificate of authority to act as a video
service provider or to construct or operate a video service network
pursuant to chapter 711 of NRS;
(3) Is not a provider of basic network service, as that term is
defined in NRS 704.006; and
(4) Is not licensed by the Public Utilities Commission of
Nevada as a provider of commercial mobile radio service pursuant
to NRS 704.033.
(c) “Broadband service” means a service that, by wire, radio or
any other technology, provides a person with the capability to
transmit data to and receive data from all or substantially all
Internet endpoints at a rate that is generally not less than 20
megabits per second in at least one direction.
(d) “Local government” means any city or county and
includes, without limitation:
(1) Any entity or agency that is directly or indirectly
controlled by any city or county; and
(2) Any entity or agency that is created by joint action or
any interlocal or cooperative agreement of two or more cities or
counties, or any combination thereof.
Sec. 18. NRS 354.5989 is hereby amended to read as follows:
354.5989 1. A local government shall not increase any fee
for a business license or adopt a fee for a business license issued for
revenue or regulation, or both, except as permitted by this section.
This prohibition does not apply to fees:
(a) Imposed by hospitals, county airports, airport authorities,
convention authorities, the Las Vegas Valley Water District or the
Clark County Sanitation District;
(b) Imposed on public utilities for the privilege of doing
business pursuant to a franchise;
(c) Imposed on broadband providers in accordance with an
agreement entered into pursuant to section 17.5 of this act;
(d) Imposed in compliance with the provisions of NRS 711.670
on video service providers for the privilege of doing business
pursuant to chapter 711 of NRS;
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[(d)] (e) For business licenses which are calculated as a fraction
or percentage of the gross revenue of the business;
[(e)] (f) Imposed pursuant to NRS 244.348, 268.0973, 268.821
or 269.182; or
[(f)] (g) Regulated pursuan t to NRS 354.59881 to 354.59889,
inclusive.
2. The amount of revenue the local government derives or is
allowed to derive, whichever is greater, from all fees for business
licenses except:
(a) The fees excluded by subsection 1, for the fiscal year ended
on June 30, 1991; and
(b) The fees collected for a particular type of business during the
immediately preceding fiscal year ending on June 30 that a local
government will not collect in the next subsequent fiscal year,
is the base from which the maximum allowable revenue from
such fees must be calculated for the next subsequent fiscal year. To
the base must be added the sum of the amounts respectively equal to
the product of the base multiplied by the percentage increas e in the
population of the local government added to the percentage increase
in the Consumer Price Index for the year ending on December 31
next preceding the year for which the limit is being calculated. The
amount so determined becomes the base for compu ting the allowed
increase for each subsequent year.
3. A local government may not increase any fee for a business
license which is calculated as a fraction or percentage of the gross
revenue of the business if its total revenues from such fees have
increased during the preceding fiscal year by more than the increase
in the Consumer Price Index during that preceding calendar year.
The provisions of this subsection do not apply to a fee:
(a) Imposed in compliance with the provisions of NRS 711.670
on video service providers for the privilege of doing business
pursuant to chapter 711 of NRS;
(b) Imposed pursuant to NRS 244.348, 268.0973, 268.821 or
269.182; or
(c) Regulated pursuant to NRS 354.59881 to 354.59889,
inclusive.
4. A local government may subm it an application to increase
its revenue from fees for business licenses beyond the amount
allowable pursuant to this section to the Nevada Tax Commission,
which may grant the application only if it finds that the rate of a
business license of the local g overnment is substantially below that
of other local governments in the State.
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5. The provisions of this section apply to a business license
regardless of the fund to which the revenue from it is assigned. An
ordinance or resolution enacted by a local go vernment in violation
of the provisions of this section is void.
6. As used in this section, “fee for a business license” does not
include a tax imposed on the revenues from the rental of transient
lodging.
Sec. 19. (Deleted by amendment.)
Sec. 19.5. 1. Upon passage and approval of this act, a local
government may negotiate and enter into agreements with
broadband providers pursuant to section 17.5 of this act.
2. A local government shall not, before July 1, 2026, suspend,
revoke or deny the access of a broadband provider to the public
right-of-way managed by the local government on the basis that the
broadband provider has not executed an agreement with the local
government pursuant to section 17.5 of this act.
3. As used in this section:
(a) “Broadband provider” has the meaning ascribed to it in
section 17.5 of this act.
(b) “Local government” has the meaning ascribed to it in section
17.5 of this act.
Sec. 20. 1. This section and section 19.5 of this act become
effective upon passage and approval.
2. Sections 1 to 19, inclusive, of this act become effective:
(a) Upon passage and approval for the purpose of adopting any
regulations and performi ng any other preparatory administrative
tasks that are necessary to carry out the provisions of this act; and
(b) On July 1, 2026, for all other purposes.
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