SSB 3009

This bill relates to cities that own or operate a municipal utility providing telecommunications services and municipal utilities providing telecommunications services. The bill prohibits cities that own or operate a municipal utility and the municipal utility itself from lending funds or revenue generated from electric, gas, water, sewage, or garbage services at an interest rate that is less than the prevailing market rate. The bill also prohibits these cities and municipal utilities from lending moneys from the general fund or reserve fund to a telecommunications system at an interest rate that is less than the prevailing market rate. The bill prohibits such cities and municipal utilities from forgiving any indebtedness extended to a telecommunications system. _____ prohibited from providing telecommunications services or access to telecommunications system facilities or equipment at a cost which is less than the reasonable cost of providing the telecommunications services or access to the telecommunications system facilities or equipment, and from providing telecommunications systems with any city or municipal utility facilities, equipment, or services at a cost for such facilities, equipment, or services which is less than the reasonable cost of providing such city or municipal utility facilities, equipment, or services. Additionally, the bill prohibits such cities and municipal utilities from selling or offering to sell telecommunications services to any customer or prospective customer in the same transaction as electric, gas, water, sewage, or garbage services are sold or offered for sale. The bill provides a maximum interest rate at which a municipal utility can obtain capital to finance the initial construction or acquisition of telecommunications systems or facilities. Current law provides municipal utilities shall not be prohibited from establishing market-based prices for competitive telecommunications services. The bill removes that provision. Current law provides cities that own or operate a municipal utility and the municipal utility itself are not prohibited from marketing or bundling other products or services, in addition to telecommunications services. The bill amends this provision to remove reference to other products or services and substitutes instead telecommunications services.1.