Revises provisions relating to the access of public rights-of-way by broadband providers. (BDR 58-664)
Summary
AB 509 revises Nevada law governing broadband providers’ access to public rights-of-way controlled by cities and counties. Beginning July 1, 2026, a broadband provider may not access a local government’s public right-of-way unless it has entered into an agreement with that local government. The bill requires local governments to negotiate and perform those agreements in a nondiscriminatory manner and allows the compensation to be structured as a franchise fee, license fee, or other payment.
The bill caps that compensation at 2 percent of the provider’s annual gross revenue derived from broadband service, broadband infrastructure access, or both, within the local jurisdiction. It also clarifies that the requirement applies even if the provider does not hold a certificate of public convenience and necessity from the Public Utilities Commission of Nevada, and it preserves federal telecommunications protections by stating it should not be construed to prohibit interstate or intrastate telecommunications service under 47 U.S.C. § 253. The bill also amends Nevada’s business-license fee limits to exclude fees imposed on broadband providers under these agreements from the general restrictions on local business-license fee increases.
Impact
AB 509 adds a new section to Chapter 709 of NRS governing broadband access to local public rights-of-way and amends NRS 354.5989 to carve out broadband-related compensation from local business-license fee limits. In practical terms, it gives cities and counties a statutory basis to require agreements before broadband providers use public rights-of-way, while limiting the amount and type of compensation they may collect. The bill also delays enforcement of the new access requirement until July 1, 2026, while allowing local governments to begin negotiating agreements immediately upon passage and approval.
Sentiment
The bill appears to have broad legislative support and little visible opposition. It passed the Assembly 42-0 and the Senate 21-0, indicating unanimous approval in both chambers. The absence of committee transcript material suggests there is no recorded public debate in the provided materials, but the voting history reflects a generally favorable sentiment toward the bill’s framework.
Contention
The main policy tension in AB 509 is between local government control over public rights-of-way and broadband providers’ access and deployment costs. Local governments gain leverage to require agreements and compensation, while providers are protected by a nondiscrimination requirement and a 2 percent cap on gross-revenue-based compensation. Another potential point of concern is the bill’s broad application to any broadband provider using local rights-of-way, including providers without PUCN certificates, though the bill expressly excludes video service providers, basic network service providers, and commercial mobile radio service providers from the new definition. No specific opposition is reflected in the provided votes or transcripts.