NebraskaLB311109th Legislature 1st and 2nd Sessionslegislature

Adopt the Telecommunications Exchange Deregulation Act, restrict actions of governmental actors relating to telecommunications, and change provisions relating to regulation of telecommunications

Sponsored By: Wendy DeBoer

Signed by Governor

Transportation and Telecommunications Committee

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 3 benefits, 0 costs, 6 mixed.

Tougher penalties for damaging networks

It is a crime to willfully damage or interfere with telecom, broadband, communications, wireless, or utility lines or equipment. Willful interruptions or interference are punishable under the state penalties in section 28‑519.

Limits on local rules for internet

The PSC cannot regulate IP‑enabled or VoIP services, including prices, contract terms, or market entry. The PSC still regulates carrier‑to‑carrier issues like wholesale rates and interconnection. The law treats broadband internet access as an IP‑enabled service using the federal definition in place on January 1, 2025. Cities, counties, and other governing entities cannot limit a telecom company’s PSC‑ or FCC‑approved rights or set rules for IP or VoIP terms or rates. Local governments cannot pass rules that block a telecom company from offering service.

New limits on local telecom fees

Local telecom taxes and fees must be competitively neutral. Governments cannot demand in‑kind services as payment or to allow use of public highways. Highway construction permit fees must be equal for similar users, tied to actual costs, and charged close in time to when costs occur. The terms of government‑telecom highway‑use agreements are public records, with true trade secrets protected. Governments cannot condition access to infrastructure or rights‑of‑way on telecom rules that state or federal law bars; some legal exceptions still apply.

New rules to deregulate phone exchanges

Only an electing local exchange carrier can ask to deregulate an exchange. The Public Service Commission (PSC) must issue a final order within 120 days and can charge a fee to cover review costs. The PSC can make rules, require needed carrier information (and keep trade secrets confidential), and decide to keep, remove, or restore regulation. An exchange is presumed competitive if two other carriers, including one wireline or cable, serve 90% of household locations outside tribal areas; the PSC can also approve at 75% coverage. When an exchange is deregulated, the carrier is reclassified as deregulated. A deregulated carrier loses carrier‑of‑last‑resort duties, some retail service quality, reporting, and rate limits, and cannot receive Nebraska Telecommunications Universal Service Fund money (some grant‑tied rate limits still apply). In exchanges that stay regulated, a transitioning carrier must keep its prior retail pricing rules. In deregulated exchanges, service shut‑offs follow a narrower legal process than before.

Service duties shift after broadband grants

After a broadband grant makes final payment to a competitive provider in a project area and the PSC finds the provider complied, the PSC must, on request, relieve the incumbent of eligible‑carrier and last‑resort duties in that area. The PSC then decides how Nebraska Telecommunications Universal Service Fund support is allocated for that area. Working with the FCC and after consulting the carriers, the PSC may transfer those service duties to the competitive provider. The law keeps general eligibility for state and federal universal service support in place even when some services are unregulated.

New proof rules for carrier permits

In PSC hearings for a carrier certificate or permit, applicants must prove they can perform the service and that the public needs it. Protesters must prove current carriers meet the need and that a new provider would harm existing operations.

More ride options for Medicaid trips

The PSC must consult Nebraska’s Medicaid Director when authorizing carriers to provide nonemergency medical rides paid by Medicaid. If a ride‑hail company or driver asks to take trips under a DHHS contract, the PSC must approve unless a protest proves existing carriers meet the need and the new service would harm them. These steps expand options and keep oversight for Medicaid rides.

When these changes take effect

Because the act declares an emergency, the law takes effect when it is passed and approved. Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 18, 20, 23, and 24 start three calendar months after the legislative session adjourns. Other parts start on their own effective dates.

Outdated telecom laws are repealed

The law repeals sections 86‑111.01, 86‑704, 75‑342, 76‑2325.01, 86‑124, 86‑1505, 75‑109.01, 75‑311, and 75‑148. Agencies and companies must follow the updated framework set elsewhere in this act.

Sponsors & Cosponsors

Sponsor

  • Wendy DeBoer

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 264 • No: 0

legislature vote • 5/14/2025

Final Reading

Yes: 49 • No: 0

legislature vote • 4/29/2025

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • 4/29/2025

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • 4/29/2025

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • Unknown

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • Unknown

Vote

Yes: 43 • No: 0 • Other: 6

Actions Timeline

  1. Provisions/portions of LB666 amended into LB311 by AM1111

    6/6/2025legislature
  2. Provisions/portions of LB347 amended into LB311 by AM1111

    6/6/2025legislature
  3. Provisions/portions of LB227 amended into LB311 by AM1111

    6/6/2025legislature
  4. Provisions/portions of LB191 amended into LB311 by AM1111

    6/6/2025legislature
  5. Provisions/portions of LB4 amended into LB311 by AM1111

    6/6/2025legislature
  6. Approved by Governor on May 20, 2025

    5/20/2025legislature
  7. Presented to Governor on May 14, 2025

    5/14/2025legislature
  8. President/Speaker signed

    5/14/2025legislature
  9. Passed on Final Reading with Emergency Clause 49-0-0

    5/14/2025legislature
  10. Dispensing of reading at large approved

    5/14/2025legislature
  11. Placed on Final Reading

    5/12/2025legislature
  12. Advanced to Enrollment and Review for Engrossment

    5/8/2025legislature
  13. Enrollment and Review ER69 adopted

    5/8/2025legislature
  14. Enrollment and Review ER69 filed

    5/6/2025legislature
  15. Placed on Select File with ER69

    5/6/2025legislature
  16. Advanced to Enrollment and Review Initial

    4/29/2025legislature
  17. Transportation and Telecommunications AM1111 adopted

    4/29/2025legislature
  18. DeBoer AM1189 adopted

    4/29/2025legislature
  19. DeBoer AM1189 to AM1111 filed

    4/29/2025legislature
  20. Transportation and Telecommunications AM1111 filed

    4/24/2025legislature
  21. Placed on General File with AM1111

    4/24/2025legislature
  22. Transportation and Telecommunications priority bill

    3/13/2025legislature
  23. Notice of hearing for February 11, 2025

    1/31/2025legislature
  24. Referred to Transportation and Telecommunications Committee

    1/17/2025legislature
  25. Date of introduction

    1/15/2025legislature

Bill Text

  • Introduced

    1/15/2025

  • Enrolled / Slip Law

  • Final / Enacted

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