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LB 311

Adopt the Telecommunications Exchange Deregulation Act, restrict actions of governmental actors relating to telecommunications, and change provisions relating to regulation of telecommunications

109th Legislature (2025-2026) Introduced by Wendy DeBoer

LB 311 clarifies FCC-wide federal preemption for broadband regulation while preserving Nebraska authority over grants, universal service, rights‑of‑way, and deregulation paths for

Provisions/portions of LB4 amended into LB311 by AM1111
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Bill Summary · LB 311

Summary — LB 311 (Telecommunications Exchange Deregulation Act)

Status: Enacted (Approved by Governor May 20, 2025; passed Final Reading May 14, 2025, 49–0–0). Emergency clause included.

Purpose / Intent

LB 311 adopts the Telecommunications Exchange Deregulation Act and clarifies the state regulatory framework for broadband Internet access and related telecommunications activities. The bill (as amended) also folds in provisions from several related bills (LB 666, LB 347, LB 191, LB 227, and LB 4) to address deregulation of exchanges, universal service fund transfers, rights-of-way and municipal fees, one-call protection for broadband infrastructure, securities issuance by carriers, and burden-of-proof changes for certain transportation matters.

Key substantive provisions

  • Telecommunications Exchange Deregulation Act (Secs. 1–11)

    • Defines terms (e.g., electing local exchange carrier, deregulated carrier, transitioning carrier, carrier of last resort, voice communications service).
    • Only an electing local exchange carrier (certificate issued on or before Feb 8, 1996, or acquired with such certificate) may initiate a proceeding to deregulate one of its exchanges.
    • PSC procedures and timing: Public Service Commission (PSC) may hold hearings and must issue a final order within 120 days after receipt of an application to deregulate an exchange; PSC may charge an application fee to recover processing costs.
    • Presumption standard for deregulation: an exchange is presumed competitive (and deregulation in the public interest) if, in addition to the electing carrier, there are at least two other carriers (including one wireline or cable carrier) serving at least 90% of household locations outside tribal areas — rebuttable by evidence.
    • PSC may require carrier disclosures and may keep proprietary submissions confidential consistent with state public records law.

  • Federal preemption and broadband regulation (amendment to section 86-124)

    • Declares that regulation of broadband Internet access service (as defined by 47 C.F.R. 8.1 as of Jan 1, 2025) is vested with the Federal Communications Commission (FCC).
    • Prohibits state agencies or political subdivisions from enacting laws/regulations inconsistent with that federal jurisdiction regarding rates, service, or contract terms for internet‑protocol‑enabled services.
    • Explicitly preserves PSC and other state agency authority to administer federal or state broadband grant programs and retains various PSC authorities (911, intercarrier matters, universal service fund eligibility, rights-of-way and certificate/permit requirements, etc.).

  • Rights-of-way, municipal fees, and local government interactions (amendments to 86-704 and related)

    • Clarifies limits on municipal regulation that would prohibit or effectively prohibit telecom providers from placing poles, conduit, cables or related facilities.
    • Requires municipal permit fees for use of public highways to be competitively neutral, apply to similarly situated users, be related to actual costs, and be publicly documented.
    • Prohibits municipalities from requiring in‑kind services as a condition of consent; agreement terms must generally be public, with trade-secret protections for proprietary info.
    • Sets constraints on occupation taxes and affirms that taxes/fees be competitively neutral (text includes previously adopted percentage limits).

  • Incorporated provisions from other bills

    • LB 666 (attached): Allows competitive broadband providers to petition the PSC to transfer Nebraska Universal Service Fund support from incumbent LEC to the competitive provider if the competitive provider accepts carrier‑of‑last‑resort responsibilities.
    • LB 347 (attached): Repeals the statutory requirement (section 75‑148) that common carriers secure PSC approval before issuing long‑term securities.
    • LB 191 (attached): Adds broadband and wireless communications infrastructure to the One‑Call Notification System Act protections.
    • LB 227 (attached): Shifts burden of proof in certain transportation certificate contests to incumbent carriers.
    • LB 4 (attached): Contains petition/deregulation mechanics for electing local exchange carriers (incorporated/clarified).

Who is affected

  • Electing local exchange carriers (ELCEs) — gain a specific statutory path to seek exchange deregulation.
  • Competitive broadband and telecom providers — may benefit from clarified federal preemption and rules for universal service fund transition.
  • Public Service Commission — retains significant authority (hearings, disclosures, enforcement, grant administration, universal service oversight).
  • Municipalities/counties/governing entities — constrained in how they may condition or tax telecom use of public rights‑of‑way; fees must be neutral and cost‑based.
  • Consumers and universal service fund recipients — protections for universal service eligibility and PSC oversight of intercarrier issues are preserved.
  • Common carriers and financial operations — relieved of a prior PSC approval requirement for issuing long‑term securities.

Procedural / timeline notes

  • Introduced Jan 15, 2025; committee hearing Feb 11, 2025.
  • Multiple committee amendments (AM1111, AM1189 and others) incorporated provisions from LB666, LB347, LB191, LB227, and LB4.
  • Advanced through General File and Select File in April–May 2025; passed Final Reading May 14, 2025 (49–0–0).
  • Presented to Governor May 14 and approved on May 20, 2025. Emergency clause causes immediate effect on enactment.

Practical impact

LB 311 centralizes and clarifies state-level treatment of broadband and IP‑enabled services by recognizing FCC primacy over broadband regulation while preserving state authority over grants, universal service administration, rights‑of‑way use, and other intrastate functions. It creates a defined process for certain carriers to seek deregulation of local exchanges and updates related technical and administrative statutes affecting carriers, municipalities, and infrastructure protection.

Compiled from official sources — confirm details with the bill’s official record.

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