All Roll Calls
Yes: 146 • No: 20
UtahS.B. 1652025 General SessionSenateWALLET
Municipal Broadband Service Amendments
Sponsored By: Lincoln Fillmore (Republican)
Signed by Governor
Public BondsPublic Utilities and TechnologyMunicipalitiesPolitical Subdivisions (Local Issues)County and Municipal FinanceLocal Government Infrastructure and UtilitiesBroadband
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 6 benefits, 1 costs, 4 mixed.
Broadband complaints get deadlines and appeals
Municipal broadband providers must establish a complaint process for people substantially affected, or likely substantially affected, by chapter violations. This includes subscribers and competing providers. Complainants must first file a written municipal complaint before going to district court. Within 45 days, the municipality must hold a hearing unless waived and issue a final decision. Missing the decision deadline counts as an adverse decision, which complainants can appeal for a fresh district court review.
Municipal subscribers get public price disclosures
Municipal providers must post complete prices and terms on the Utah Public Notice Website and make them available for inspection. They must use those listed terms and give at least five days' notice of changes, including to people requesting notice. Before October 1 each year, providers must submit reports covering prices, coverage, subscribers, revenue, full costs, 10-year projections, feasibility-study comparisons, and bond information. Reports need a summary of no more than one page, public availability, and adoption by resolution after a hearing. Hearings require at least two weeks' notice and must occur within 30 days of scheduling; accurate service records are subject to legislative audit.
Municipal subscribers get service quality standards
Municipal broadband, cable, and public telecommunications providers must adopt service-quality rules through a local ordinance. Standards must be competitively neutral and substantially similar to those imposed on private providers under applicable laws. Municipal broadband and public telecommunications providers must follow the Communications Act of 1934 and related Federal Communications Commission rules. For public telecommunications, this replaces the earlier reference to the Telecommunications Act of 1996.
Residents get municipal broadband hearing opportunities
When a broadband study meets the revenue test, the municipality must schedule at least two hearings at its next regular meeting. Hearings must occur within 90 days of that meeting, at least three weeks apart, with three weeks of Class A notice before the first. A municipal legislative body can call a broadband election by majority vote, including a local special election. The proposition takes effect only when a majority voting on it approves; municipal action remains subject to local referendum. Municipalities covered by Section 10-18-105(2) also have authority to call a communications-facility election.
Existing municipal services keep key exemptions
Broadband authorized before March 1, 2025, skips Part 2 startup requirements but remains subject to Part 3 operating rules. Cable and public telecommunications authorized before March 1, 2001, receive the same treatment. The law also preserves broadband contracts made before March 1, 2025, and their collateral rights. A broader, service-specific exemption covers broadband with a facility bond resolution by January 1, 2025, or at least three consecutive operating years before March 1, 2025; cable and public telecommunications use January 1, 2001, and March 1, 2001, respectively. That broader exemption still requires compliance with Subsections 10-18-303(6), (9), and (12), and Sections 10-18-304 and 10-18-305.
Private providers gain fair competition protections
Municipalities must apply service, permit, infrastructure-access, reporting, quality, and broadband-funding rules fairly to municipal and private providers. The existing federal rural telephone company exception remains. Municipalities competing with providers they regulate must separate staff, property, operations, and other resources, with no nonpublic information shared between roles. Municipal broadband providers lose the state antitrust immunity otherwise available to political subdivisions. Municipalities cannot use eminent domain to take private-provider networks or equipment to supply broadband, cable, or public telecommunications service.
Municipal service prices must cover costs
Municipal broadband, cable, and public telecommunications prices cannot fall below actual direct and indirect costs. Rates must also include amounts equal to comparable private providers' taxes, assessments, franchise fees, permit fees, and pole-attachment fees. Municipalities cannot subsidize these services with tax money, other municipal or utility income, or below-market municipal loans. Each service needs separate accounting and operating and capital budgets; a combined fund is allowed only for accounting purposes. Funding comes from service revenue or authorized bond proceeds, with transfers to or from other enterprise funds restricted.
Municipal broadband authority comes with limits
Beginning May 7, 2025, Utah municipalities have express broadband authority, subject to the law's limits; broadband excludes dial-up service. Municipalities cannot serve subscribers or run service facilities outside the chapter's permission, including through contracts, resale, or joint entities. Joint arrangements do not expand public agencies' authority, and this chapter gives counties no authority to provide broadband. Municipalities cannot offer broadband, cable, or public telecommunications service to subscribers living outside their boundaries. Authority to sell unneeded surplus capacity beyond those boundaries remains subject to the chapter.
Municipal broadband needs longer financial reviews
Before offering broadband, municipalities must hold a preliminary public hearing and approve a feasibility consultant. First-year and five-year analyses must show projected revenue covers costs plus required bond payments before the project advances. The study must assess demand, competition, fiscal effects, and whether another provider offers service without municipal involvement. Full-cost and revenue projections now cover 10 years instead of five, using the law's required pricing. The consultant has 180 days to deliver results and a one-page summary; a municipality proceeding must adopt the study by resolution.
Municipal facilities can support private broadband
Facilities designed for service within a municipality are generally outside the chapter when used for internal government work. This exception also covers facilities a private provider uses under a written broadband, cable, or public telecommunications contract. Municipalities and qualifying interlocal entities using private-provider contracts must still follow specified financing, subsidy, and fair-treatment rules. Municipalities withholding payments on private broadband construction contracts must handle and release that money under Utah's construction-payment law.
Municipal broadband bonds need voter oversight
Municipalities can authorize revenue bonds or general obligation bonds for broadband facility capital costs, stating the purpose and proposed amount. Voters must approve broadband revenue bonds funded by service revenues. Sales-tax-backed revenue bonds require approval at a regular general election, pledged tax revenues, and annual appropriations for repayment. Municipalities cannot give themselves or private providers an undue financing advantage. Issuers must promptly disclose material bond events, including defaults, reserve draws, adverse tax opinions, rating changes, bond calls, tender offers, and private debt placements.
Sponsors & Cosponsors
Sponsor
Lincoln Fillmore
Republican • Senate
Cosponsors
Ryan D. Wilcox
Republican • House
Roll Call Votes
House vote • 3/6/2025
House/ passed 3rd reading
Yes: 56 • No: 17
Senate vote • 3/6/2025
Senate/ concurs with House amendment
Yes: 28 • No: 0
House vote • 3/6/2025
House/ substituted
Yes: 0 • No: 0
House vote • 2/26/2025
House Comm - Favorable Recommendation
Yes: 7 • No: 2
Senate vote • 2/20/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/20/2025
Senate/ substituted
Yes: 0 • No: 0
Senate vote • 2/20/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/20/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/20/2025
Senate/ passed 3rd reading
Yes: 26 • No: 0
Senate vote • 2/12/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/11/2025
Senate/ passed 2nd reading
Yes: 24 • No: 1
Senate vote • 2/3/2025
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
House vote • Unknown
House/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/19/2025Senate/ to Governor
3/17/2025SenateSenate/ received enrolled bill from Printing
3/17/2025SenateSenate/ enrolled bill to Printing
3/14/2025SenateEnrolled Bill Returned to House or Senate
3/14/2025Draft of Enrolled Bill Prepared
3/7/2025Bill Received from Senate for Enrolling
3/7/2025Senate/ signed by President/ sent for enrolling
3/7/2025SenateSenate/ received from House
3/7/2025SenateHouse/ to Senate
3/7/2025HouseHouse/ signed by Speaker/ returned to Senate
3/7/2025HouseHouse/ received from Senate
3/7/2025HouseSenate/ to House
3/6/2025SenateSenate/ concurs with House amendment
3/6/2025SenateSenate/ placed on Concurrence Calendar
3/6/2025SenateSenate/ received from House
3/6/2025SenateHouse/ to Senate
3/6/2025HouseHouse/ passed 3rd reading
3/6/2025HouseHouse/ substituted
3/6/2025HouseHouse/ 3rd reading
3/6/2025HouseHouse/ 2nd reading
2/27/2025HouseHouse/ committee report favorable
2/27/2025HouseHouse Comm - Favorable Recommendation
2/26/2025HouseHouse/ to standing committee
2/24/2025HouseHouse/ 1st reading (Introduced)
2/21/2025House
Bill Text
Enrolled
3/14/2025
Substitute #2
2/28/2025
Substitute #1
2/18/2025
Introduced
1/24/2025