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Committee hears bill to drop PSC approval of carrier long‑term debt; commission backs removal
Summary
LB 347 would remove a decades‑old requirement that common carriers obtain Public Service Commission approval before issuing debt with terms longer than 12 months; the PSC and several providers supported repeal.
Sen. Jason Prokop introduced LB 347 to eliminate a statutory requirement that common carriers obtain Nebraska Public Service Commission approval before issuing securities or incurring long‑term debt. Prokop said the statute dates from an era of small, local monopolies and no longer serves the public interest, given modern financial markets and multiple provider options.
Commissioner Christian Murch testified the PSC supports the bill. He told the committee the existing statute requires PSC review of debt longer than 12 months and imposes an application fee and potential penalties that are out of step with modern financing practices. He described the commission’s limited staff capacity to audit complex corporate finance transactions and warned that the commission is not the best body to second‑guess private lenders’ risk assessments.
Murch described the potential penalties as currently written: failure to comply is punishable by civil fine of up to $5,000 per offense and may also be a class 3 felony carrying up to four years in prison or a $25,000 fine. Several industry proponents, including Allo Communications and the Nebraska Telecommunications Association, said removing the PSC approval requirement would reduce an antiquated barrier to private investment and speed deployment of broadband projects financed with private capital.
No opponent testimony was offered and the sponsor asked the committee to advance the bill.
