H.F. _____ Section 1. NEW SECTION . 8.87A Electric cooperatives —— 1 easements for broadband. 2 1. For purposes of this section, “electric cooperative” 3 means the same as defined in section 390.1 and includes any 4 affiliate. 5 2. An electric cooperative may authorize in an electric 6 transmission or distribution easement held by the electric 7 cooperative the placement of broadband infrastructure, which 8 may include the placement of fiberoptic cable facilities, in 9 the easement by a communications service provider. To exercise 10 rights granted under this subsection, the electric cooperative 11 must provide to the property owner on which the easement is 12 located written notice that the electric cooperative intends 13 to authorize the placement of broadband infrastructure in the 14 easement for the expansion of broadband services. The right to 15 use the easement for broadband services vests in the electric 16 cooperative and runs with the land beginning six months after 17 notice is received under subsection 3, paragraph “a” , unless a 18 court action challenging the use of the easement for broadband 19 purposes has been filed by the property owner as provided under 20 subsection 4 before the right vests. The electric cooperative 21 must also record evidence of the notice with the county 22 recorder. 23 3. a. The electric cooperative’s notice under subsection 2 24 must be sent by first class mail to the last known address of 25 the owner of the property on which the easement is located or 26 by printed insertion in the property owner’s utility bill. The 27 notice must include all the following: 28 (1) The name and mailing address of the electric cooperative 29 and the communications service provider that will provide 30 broadband service. 31 (2) A narrative describing the nature and purpose of the 32 intended easement use. 33 (3) A description of any trenching or other underground 34 work expected to result from the intended use, including the 35 -1- LSB 1615YC (6) 91 sb/js 1/ 6

H.F. _____ anticipated time frame for the work. 1 b. After the right to use the easement for broadband 2 services vests in the electric cooperative, the electric 3 cooperative must send an additional notice to the owner of the 4 property on which the easement is located if the communications 5 service provider changes or additional work not described 6 under paragraph “a” , subparagraph (3), is needed. The notice 7 requirement does not apply to general maintenance or minor 8 repairs of the broadband infrastructure. The notice must 9 describe any changes from the notice sent under paragraph “a” . 10 The notice must be sent not less than thirty days before the 11 communications service provider changes or additional work 12 occurs. 13 4. A property owner, within six months after receiving 14 notice under subsection 3, paragraph “a” , may commence an 15 action seeking to recover damages for an electric cooperative’s 16 use of an electric transmission or distribution easement for 17 broadband service purposes. Notwithstanding any other law to 18 the contrary, the procedures and substantive matters set forth 19 in this section govern an action under this subsection and are 20 the exclusive means to bring a claim for compensation with 21 respect to a notice of intent to use an electric cooperative’s 22 transmission or distribution easement for broadband purposes. 23 To commence an action under this subsection, the property owner 24 must serve a complaint upon the electric cooperative in a civil 25 action and file the complaint with the district court for the 26 county in which the easement is located. The complaint must 27 state one of the following: 28 a. The property owner is challenging the electric 29 cooperative’s right to use the easement for broadband services 30 or infrastructure as authorized under subsection 2. 31 b. The property owner is seeking damages as provided under 32 subsection 5. 33 c. The property owner is asserting claims under both 34 paragraphs “a” and “b” . 35 -2- LSB 1615YC (6) 91 sb/js 2/ 6

H.F. _____ 5. If the property owner is seeking damages, the electric 1 cooperative may, at any time after answering the complaint, 2 deposit with the court administrator an amount equal to the 3 electric cooperative’s estimate of damages or one dollar if 4 damages are estimated to be not more than nominal. After a 5 deposit has been made pursuant to this subsection, the electric 6 cooperative may use the electric transmission or distribution 7 easements for broadband service purposes, conditioned on an 8 obligation to pay the amount of damages determined by the 9 court. 10 6. If the property owner is challenging the electric 11 cooperative’s right to use the easement for broadband services 12 or infrastructure as authorized under subsection 2, after the 13 electric cooperative answers the complaint the district court 14 must promptly hold a hearing on the property owner’s challenge. 15 If the district court denies the property owner’s challenge, 16 the electric cooperative may proceed to make a deposit and make 17 use of the easement for broadband service purposes, as provided 18 under subsection 5. 19 7. In an action involving a property owner’s claim for 20 damages, the property owner has the burden to prove the 21 existence and amount of any net reduction in the fair market 22 value of the property, considering the existence, installation, 23 construction, maintenance, modification, operation, repair, 24 replacement, or removal of broadband infrastructure in the 25 easement, as well as any benefit to the property from access 26 to broadband service. Consequential or special damages shall 27 not be awarded. Evidence of revenue, profits, fees, income, 28 or similar benefits to the electric cooperative or a third 29 party is inadmissible. Any fees or costs incurred as a result 30 of an action under this section must be paid by the party that 31 incurred the fees or costs. 32 8. Nothing in this section limits in any way an electric 33 cooperative’s existing easement rights, including but not 34 limited to rights an electric cooperative has or may acquire 35 -3- LSB 1615YC (6) 91 sb/js 3/ 6

H.F. _____ to transmit communications for electric system operations or 1 otherwise. 2 9. Placement of broadband infrastructure for use in 3 providing broadband service under this section in any 4 portion of an electric transmission or distribution easement 5 located in the public right-of-way is subject to the local 6 government’s existing general police powers to control the use 7 of its right-of-way and the department of transportation’s 8 authority under section 318.9, and the placement shall be 9 coordinated with the relevant authority to minimize potential 10 future relocations. The electric cooperative shall notify 11 the relevant authority prior to the placement of broadband 12 infrastructure in an easement that is in or adjacent to that 13 relevant authority’s public right-of-way. 14 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 15 importance, takes effect upon enactment. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill relates to using easements held by electric 20 cooperatives for purposes of expanding broadband service. 21 The bill allows an electric cooperative to authorize 22 within its electric transmission or distribution easements 23 the placement of broadband infrastructure, which may include 24 fiberoptic cable facilities, by a communications service 25 provider. 26 The bill requires the electric cooperative to provide 27 the owner of the property on which the easement is located 28 a written notice when the electric cooperative intends to 29 use the easement for broadband purposes and provides the 30 required procedure and contents of the notice. The electric 31 cooperative is allowed to use the easement for broadband 32 services six months after notice is received by the property 33 owner unless the property owner has filed a challenge with the 34 courts contesting the use of the easement within six months 35 -4- LSB 1615YC (6) 91 sb/js 4/ 6

H.F. _____ of the initial notice. The bill provides additional notice 1 requirements in the event the communications service provider 2 changes or additional work not included in the original notice 3 is necessary after the right to use the easement for broadband 4 purposes vests with the electric cooperative. 5 The bill allows for the property owner to commence action 6 against the electric cooperative by either seeking to recover 7 damages or challenging the electric cooperative’s right to use 8 the easement within six months of receiving the notice and 9 provides procedures. 10 If the property owner is seeking damages, the bill allows the 11 electric cooperative to deposit with the court administrator an 12 amount equal to the electric cooperative’s estimate of damages 13 or $1 if damages are estimated to be not more than nominal once 14 the complaint has been answered. After the deposit has been 15 made the electric cooperative may use the electric transmission 16 or distribution easements for broadband purposes, conditioned 17 on an obligation to pay the amount of damages determined by the 18 court. 19 If the property owner is challenging the electric 20 cooperative’s right to use the easement for broadband services 21 or infrastructure, the bill directs the district court to 22 promptly hold a hearing on the property owner’s challenge once 23 the complaint has been answered by the electric cooperative. 24 If the district court denies the property owner’s challenge, 25 the electric cooperative may proceed to make a deposit and make 26 use of the easement for broadband service purposes. 27 The bill requires that in an action involving a property 28 owner’s claim for damages, the property owner has the burden 29 to prove the existence and amount of any net reduction in the 30 fair market value of the property, considering the existence, 31 installation, construction, maintenance, modification, 32 operation, repair, replacement, or removal of broadband 33 infrastructure in the easement, as well as any benefit to the 34 property from access to broadband service. The bill states 35 -5- LSB 1615YC (6) 91 sb/js 5/ 6

H.F. _____ that in these actions, consequential or special damages will 1 not be awarded and that evidence of revenue, profits, fees, 2 income, or similar benefits to the electric cooperative, its 3 affiliates, or a third party is inadmissible. The bill directs 4 any fees or costs incurred as a result of an action to be paid 5 by the party that incurred the fees or costs. 6 The bill expounds that the bill does not limit in any way an 7 electric cooperative’s existing easement rights. 8 The bill explains that the electric cooperative’s placement 9 of broadband infrastructure in any portion of an electric 10 transmission or distribution easement located in the public 11 right-of-way is subject to the local government’s existing 12 general police powers to control the use of its right-of-way 13 and the department of transportation’s authority. The bill 14 directs the electric cooperative to coordinate placement with 15 the relevant authority to minimize potential future relocations 16 and to notify the authority prior to placing infrastructure for 17 broadband service in an easement that is in or adjacent to that 18 authority’s public right-of-way. 19 The bill takes effect upon enactment. 20 -6- LSB 1615YC (6) 91 sb/js 6/ 6