Bill > AB509

This bill revises provisions related to broadband providers' access to public rights-of-way, establishing a new framework for how local governments and broadband companies interact. Starting July 1, 2026, broadband providers will be required to enter into agreements with local governments to access public rights-of-way, and these agreements must be executed in a nondiscriminatory manner. The bill specifies that compensation paid by broadband providers to local governments cannot exceed 2 percent of the provider's annual gross revenue from broadband services within the jurisdiction, which can be structured as a franchise fee or other form of compensation. The legislation defines "broadband service" as a data transmission capability of at least 20 megabits per second and specifically excludes certain types of providers from the definition, such as video service providers, basic network service providers, and commercial mobile radio service providers. The bill also amends existing business license fee regulations to accommodate these new broadband access agreements, ensuring that fees imposed on broadband providers under these agreements are exempt from certain local government fee restrictions. Importantly, the bill provides a transition period, prohibiting local governments from suspending or revoking a broadband provider's right-of-way access before July 1, 2026, solely based on the lack of an agreement.