NebraskaLB311109th Legislature 1st and 2nd SessionslegislatureWALLET

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

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

IP services outside state rate rules

The law defines IP‑enabled services to include any service using Internet protocol, including broadband as the federal rule defines on January 1, 2025. The PSC cannot set rates, service terms, contracts, or entry rules for IP‑enabled and VoIP services, except where other listed statutes still apply. This reduces state‑level oversight of internet‑based phone and data services.

Cities face new telecom limits

Cities and other governing entities cannot impose telecom rules that state law bars or federal law preempts. They cannot condition access to rights‑of‑way or public infrastructure on accepting local telecom regulations. City consent to use public highways must be lawful and not unreasonably withheld. Terms of city‑telecom use agreements are public records, and cities cannot demand in‑kind services as a fee or tax.

After broadband grants, duties can shift

After a broadband grant is fully paid and the provider is found in compliance, the PSC must act. The PSC relieves the incumbent of eligible carrier and carrier‑of‑last‑resort duties in that grant area. The PSC decides how Nebraska USF support is allocated there and, after consulting the providers and the FCC, may transfer those duties to the competitive provider.

How local exchanges get deregulated

Only a local exchange carrier that elects in can ask to deregulate one of its exchanges. The Public Service Commission (PSC) must issue a final decision within 120 days. An exchange is presumed competitive when at least two other carriers, including one wireline or cable carrier, serve at least 90% of household locations outside tribal areas. The PSC may also deregulate when service is available to at least 75% of those locations. The PSC can make rules, require carrier data (and keep trade secrets confidential), and it has formal authority to run and enforce this Act.

What deregulation means for customers

In a deregulated exchange, no company must be the carrier of last resort unless it agrees. Deregulated and transitioning carriers do not have to follow PSC retail service‑quality rules or some retail rate limits. They also do not receive Nebraska Universal Service Fund (USF) money for those exchanges, and the PSC reduces USF payments for transitioning carriers to reflect that. A carrier stopping service in a deregulated exchange follows a simpler discontinuance process. In exchanges that stay regulated, old retail pricing rules still apply. Transitioning carriers keep following the prior law unless it conflicts with this Act. The PSC can still hear complaints under Chapter 86.

Caps on city telecom taxes

Cities can charge an occupation tax only on receipts from selling telecom service. The cap is 6.25% before October 1, 2024, and 4% beginning October 1, 2024, with a process for voter‑approved increases. Permit fees must apply equally, match the city’s costs, and be reasonably timed. All city taxes and fees must be competitively neutral.

Stronger penalties for damaging networks

Anyone who willfully damages telecom, broadband, or power lines, or interrupts those services, faces penalties under section 28‑519. The law strengthens enforcement to protect communications and utilities. This applies now.

Sponsors & Cosponsors

Sponsor

  • Wendy DeBoer

    legislature

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 264 • No: 0

legislature vote 4/24/2026

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote 4/24/2026

Vote

Yes: 43 • No: 0 • Other: 6

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

Actions Timeline

  1. Provisions/portions of LB4 amended into LB311 by AM1111

    6/6/2025legislature
  2. Provisions/portions of LB191 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 LB347 amended into LB311 by AM1111

    6/6/2025legislature
  5. Provisions/portions of LB666 amended into LB311 by AM1111

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

    5/21/2025legislature
  7. Dispensing of reading at large approved

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

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

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

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

    5/12/2025legislature
  12. Enrollment and Review ER69 adopted

    5/8/2025legislature
  13. Advanced to Enrollment and Review for Engrossment

    5/8/2025legislature
  14. Placed on Select File with ER69

    5/6/2025legislature
  15. Enrollment and Review ER69 filed

    5/6/2025legislature
  16. DeBoer AM1189 to AM1111 filed

    4/29/2025legislature
  17. DeBoer AM1189 adopted

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

    4/29/2025legislature
  19. Advanced to Enrollment and Review Initial

    4/29/2025legislature
  20. Placed on General File with AM1111

    4/24/2025legislature
  21. Transportation and Telecommunications AM1111 filed

    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

    6/6/2025

  • Enrolled / Slip Law

  • Final / Enacted

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