Public Utility District.  A public utility district (PUD) in existence on June 8, 2000, may construct and operate any telecommunications facilities within or without the PUD's limits for the following purposes:

• for the PUD's internal communications needs; and
• for providing wholesale telecommunications services within the district and by contract with another PUD.

PUD authority to provide retail telecommunications services to end users is limited to when:

• an Internet service provider (ISP) operating on a PUD's facility stops providing services to customers and no other retail service providers are willing to provide service—restrictions are prescribed; and
• a PUD that meets certain requirements is petitioned to provide such services—petition requirements are specified.

Port District.  A port district (port) in existence on June 8, 2000, may construct and operate any telecommunications facilities within or without the district's limits for the following purposes:

• for the port's own use; and
• for the provision of wholesale telecommunications services within or without the district's limits.

A port that has not exercised its authority by June 7, 2018, must develop a business case plan before exercising this authority.  The business case plan must be reviewed by an independent qualified consultant.  Ports do not have the authority to provide telecommunications services to end users.

Counties, Cities, and Towns.  The state Constitution requires the Legislature to provide a uniform system for county and city government; however, it allows cities that meet population specifications and counties to adopt home rule charters establishing differing governing systems as long as no provision is contrary to current federal or state laws.  In addition, the Optional Municipal Code provides broad home rule powers to cities that meet certain requirements.

Cities are municipal corporations classified according to their population at the time of organization.  First-class cities are those with a population of 10,000 or more that have adopted a city charter.  Second-class cities are those with a population of 1500 or more that have not adopted a city charter and do not operate under the Optional Municipal Code.  Towns have a population of less than 1500 and do not operate under the Optional Municipal Code.

According to a 2003 attorney general opinion, charter counties and first-class cities and cities operating under the Optional Municipal Code have the authority to offer telecommunications services to their residents to the extent not specifically barred by statute.  These municipalities with home rule powers do not need express or implied statutory authority to enact local legislation.  Other cities, towns, and counties are limited to those powers granted by statute and currently do not have this authority.

Retail Authority.  A PUD may construct and operate telecommunications facilities to provide either retail or wholesale, or both, telecommunications services:

• within the district; or
• outside of the district by contract with another PUD, any political subdivision of the state authorized to provide retail services in the state, or with any federally recognized tribe located in the state.

A port may construct and operate telecommunications facilities to provide retail telecommunications services within or outside of the district's limits.
 
A town, second-class city, and county may construct and operate telecommunication services or telecommunications facilities to provide its inhabitants with telecommunications services.  
 
Reports.  Before providing retail telecommunications services, PUDs and ports are encouraged to examine and report to its governing body the following about the area to be served:

• an assessment of current availability of broadband infrastructure and its adequacy to provide high-speed Internet access to end users;
• the location where retail services will be provided;
• evidence relating to the unserved or underserved nature of the community;
• expected costs of providing retail services to customers; and
• evidence that the proposed infrastructure will be scalable to meet statutory broadband goals.

For the purposes of this report, unserved means a census block in which no provider has the capacity to deliver Internet access service at speeds of a minimum 25 megabits per second (Mbps) download and 3 Mbps upload.
 
Repeals.  The following are repealed:

• authority for a PUD to provide retail services when an Internet service provider operating on a PUD facility stops providing services to customers and no other retail service providers are willing to provide service;
• authority for certain PUDs that are petitioned to provide such retail services; and
• the requirement for a port that has not exercised its wholesale authority by June 7, 2018, to develop a business case plan prior to exercising this authority.