9-583

9-583. Issuance of license or franchise; use of
public highways; limitations

A. A political subdivision shall not adopt any ordinance that may prohibit or have
the effect of prohibiting the ability of any telecommunications corporation to provide
telecommunications service. Nothing in this section affects the authority of a political
subdivision to manage the public highways within its jurisdiction or to exercise its
police powers.

B. The governing board of a political subdivision may issue to a telecommunications
corporation a license or franchise to use the public highways within the political
subdivision to construct, install, operate and maintain telecommunications
facilities. The political subdivision shall issue licenses or franchises on a
competitively neutral and nondiscriminatory basis to persons subject to this section,
within a reasonable period of time after application. As a condition of issuing a
license or franchise to use the public highways to construct, install, operate and
maintain telecommunications facilities, or a renewal thereof, a political subdivision may
impose reasonable, competitively neutral and nondiscriminatory requirements on applicants
which may include only:

1. Proof that the applicant has received a certificate of convenience and necessity
from the Arizona corporation commission.

2. Public highway use requirements.

3. Mapping requirements.

4. Insurance, performance bonds, indemnification or similar requirements.

5. Enforcement and administrative provisions, consistent with this section.

C. A political subdivision may require a telecommunications corporation that will
place underground facilities in the public highways, exclusive of facilities used by the
local network and the portion of the interstate network that carries intrastate calls,
for interstate telecommunications services to pay a fee as provided in this subsection
and, subject to section 9-582, subsection A, paragraph 2, to obtain a license or
franchise under this subsection to use the public highways to construct, install, operate
and maintain facilities for these services. Subsections A, B, D and E of this section
apply except:

1. The requirement provided in subsection B, paragraph 1 of this section does not
apply to a telecommunications corporation that provides solely interstate
telecommunications services within this state.

2. A political subdivision may require a telecommunications corporation operating
under this subsection to pay an annual fee based on the number of linear feet of trench
in the public highways in which the telecommunications corporation has placed facilities
that carry interstate traffic between and among the telecommunications corporation's
interstate points of presence exclusive of facilities used by the local network and the
portion of the interstate network that carries intrastate calls.

3. The rate per linear foot used in paragraph 2 of this subsection shall not exceed
the highest rate per linear foot a political subdivision in this state charged any
licensee or franchisee on or before December 31, 1999. The rate per linear foot shall not
be increased in any calendar year by more than the increase in the average consumer price
index as published by the United States department of labor, bureau of labor statistics.

D. A telecommunications licensee or franchisee may enter into contracts for use of
the licensee's or franchisee's facilities within the public highways to provide
telecommunications services. A political subdivision may require a telecommunications
licensee or franchisee to disclose all persons with whom it contracts to use its
facilities in the public highways within the political subdivision to provide
telecommunications services. A political subdivision may require a person using a
licensee's or franchisee's facilities in the public highways within the political
subdivision to obtain from the political subdivision a telecommunications license or
franchise if the person constructs, installs, operates or maintains telecommunications
facilities within the public highways of the political subdivision.

E. The requirements imposed in a telecommunications license or franchise shall
treat similarly situated telecommunications corporations similarly. The requirements may
be changed over time and applied prospectively. Nothing in this subsection or subsection
B of this section affects section 9-582, subsection D. A political subdivision may
distinguish between a telecommunications corporation described in section 9-582,
subsection E and other telecommunications corporations to a justifiable extent based on
differences in legal rights.

F. Subsections B through E of this section do not apply to a telecommunications
corporation described in section 9-582, subsection E.

G. The requirements of this section apply to applicants for licenses or franchises
filed and acted on after December 1, 1998 or if earlier, the date after August 1, 1998
that a political subdivision adopts an ordinance implementing this article. Licenses or
franchises issued pursuant to this section shall be for a term of five years and shall be
renewed if:

1. The telecommunications corporation satisfies the conditions of the renewal
license or franchise.

2. The renewal applicant has complied with the material terms of its prior license
or franchise and applicable law. However, renewal shall not be denied for failure to
comply with license or franchise terms unless the licensee or franchisee has had written
notice and a reasonable opportunity to cure the defect in past performance. A license or
franchise may be revoked for failure to comply with the material terms of the license or
franchise or applicable law. Revocation may occur only if the telecommunications
corporation is given written notice of the defect in performance and the defect in
performance is not cured within sixty days of the notice, unless the political
subdivision finds that the defect in performance is due to intentional misconduct, is a
violation of criminal law or is part of a pattern of violations if the telecommunications
corporation has already had notice and an opportunity to cure. A political subdivision
shall hold a hearing before revoking or refusing to renew a license or franchise if
requested by the licensee or franchisee.