House passes utilities and highway rights-of-way task force bill after amendment preserving municipal franchise fees

The Utah House passed the second substitute to Senate Bill 150, a bill to establish a task force addressing utilities and highway rights-of-way, after adopting an amendment preserving municipal franchise-fee authority.

Representative Garn introduced Amendment Number 2—language requested by the League of Cities and Towns—that affirms municipalities may continue to charge franchise fees and certain sales taxes on utilities under current practice. The amendment was presented on the floor as agreed by stakeholders involved in negotiations.

Floor discussion focused on fee design and protections for small or rural utilities. Members asked whether fees would be limited to cost-of-service, based on fair-market use of the right-of-way, or set by other criteria; sponsors pointed to specific task-force criteria written in the bill, including fairness, nondiscrimination, competitive neutrality, public inspection and cost considerations. Supporters argued the measure addresses increasing use of rights-of-way (especially fiber optics and telecommunications) and sets a framework for equitable access and fees. Skeptics asked for more time to study the complex bill; the motion to "circle" (postpone) the bill failed and the House proceeded to vote.

The House recorded 47 yes votes and 22 no votes; the second substitute passed as amended and was returned to the Senate for further action.

Implementation notes: the bill creates a task force that will set fee criteria; sponsors said attention will be paid to protecting rural communities and smaller local telephone companies that operate long stretches of right-of-way with limited customers.