S310 - Electric Co-Op Rural Broadband Services. (SL 2019-17)

Overview: S.L. 2019-17 does all of the following:

• Eliminates certain restrictions on the formation and operation of separate business entities (subsidiaries) by Electric Membership Corporations (EMCs) that provide or support high speed broadband services.
• Provides that the terms of any easement held or otherwise used by an EMC for the provision of electrification may be expanded to allow use by the EMC, or a subsidiary of the EMC even if not a party to the underlying easement, for the purpose of supplying high-speed broadband service, even if not a stated purpose in the underlying easement.
• Prohibits class action suits against an EMC or a wholly-owned subsidiary of the EMC in litigation claimimg trespass or inverse condemnation based on a claim of the expanded use of an easement.
• Establishes a measure of damages to be paid to a landowner, if, in a lawsuit in trespass or inverse condemnation based on a claim of expanded use of an easement, the landowner prevails over an EMC or a wholly-owned subsidiary of the EMC. Among other limitations, the damages may not exceed the difference between the fair market value of the property owner's entire property immediately before the taking and the fair market value of the property owner's property immediately after the taking. Upon payment of damages, the EMC or a wholly-owned subsidiary of the EMC are granted a permanent easement for the trespass that was the subject of the lawsuit.

This act became effective May 30, 2019, and applies to any claims filed on or after that date.