Ark. Code Ann. § 23-17-101 (2026)
Right to construct, operate, and maintain lines — Damages for occupation of property
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Any person or corporation organized by virtue of the laws of this state or of any other state of the United States or by virtue of the laws of the United States, for the purpose of transmitting intelligence by magnetic telegraph or telephone, or other system of transmitting intelligence which is the equivalent of telephone or telegraph and which may be invented or discovered, may construct, operate, and maintain the telegraph, telephone, or other lines necessary for the speedy transmission of intelligence:
- Along and over the public highways and streets of the cities and towns of this state;
- Across and under the waters and over any lands or public works belonging to this state;
- On and over the lands of private individuals;
- Upon, along, and parallel to any of the railroads or turnpikes of this state; and
- On and over the bridges, trestles, or structures of the railroads.
- However, the ordinary use of the public highways, streets, works, railroads, bridges, trestles, or structures and turnpikes shall not be obstructed thereby, nor shall the navigation of the waters be impeded.
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Any person or corporation organized by virtue of the laws of this state or of any other state of the United States or by virtue of the laws of the United States, for the purpose of transmitting intelligence by magnetic telegraph or telephone, or other system of transmitting intelligence which is the equivalent of telephone or telegraph and which may be invented or discovered, may construct, operate, and maintain the telegraph, telephone, or other lines necessary for the speedy transmission of intelligence:
- Just damages shall be paid to the owners of the lands, railroads, and turnpikes by reason of the occupation of the lands, railroads, and turnpikes by the telegraph or telephone corporations.
- Nothing in this subchapter shall limit the authority of municipalities to impose franchise fees pursuant to § 14-200-101.
History. Acts 1885, No. 107, § 1, p. 176; C. & M. Dig., § 3989; Pope's Dig., § 4991; A.S.A. 1947, § 73-1801; Acts 1994 (1st Ex. Sess.), No. 6, § 5; 1994 (1st Ex. Sess.), No. 7, § 5.
Publisher's Notes. Identical Acts 1994 (1st Ex. Sess.) Nos. 6 and 7, § 1, provided:
“LEGISLATIVE FINDINGS.
(a) In the State of Arkansas, municipalities are granted jurisdiction and authority over the use and control of the public rights-of-way within the corporate limits of the municipality, to the extent that such jurisdiction does not conflict with state or federal statutes or regulations.
“(b) This historic authority has included the right to assess franchise fees for the privilege of the use of such rights-of-way and of providing utility service to the public.
“(c) On numerous occasions, the courts of the State of Arkansas have referred to this right to assess franchise fees against public utilities. For example, in Hot Springs Electric Light Co. v. Hot Springs, 70 Ark. 300 (1902), the Arkansas Supreme Court expressly stated that cities may assess a franchise fee as a condition for the use of public rights-of-way.”
Identical Acts 1994 (1st Ex. Sess.) Nos. 6 and 7, § 2, provided:
“STATEMENT OF POLICY. It is, and historically has been, the policy of the State of Arkansas to permit municipalities, as one means of raising revenues, to assess municipal franchise fees against public utilities for the privilege of providing utility services to the public and of using public rights-of-way, including streets, highways, or other public places of any kind whatsoever within municipal boundaries and such franchise fees have not been considered to be within the scope of A.C.A. § 26-73-103 so as to require a vote of the electorate.
“It is also the policy of the State that nothing in this Act shall amend or adversely impact the terms and provisions of an existing franchise agreement between a municipality and a public utility entered into pursuant to A.C.A. § 14-54-704, A.C.A.§ 14-200-101, or any other enabling legislation relating to franchise fees in effect at the time of the agreement.”
Case Notes
Constitutionality.
This section is constitutional. St. Louis & S.F.R.R. v. Southwestern Tel. & Tel. Co., 121 F. 276 (8th Cir. 1903).
Constitutional provision that no property or right-of-way shall be appropriated to the use of any corporation until full compensation therefor is made to the owner does not inhibit the grant of any use of the state's property except upon compensation. Ark. State Hwy. Comm'n v. Southwestern Bell Tel. Co., 206 Ark. 1099, 178 S.W.2d 1002 (1944).
Ordinances.
City ordinance that required telephone company to pay certain fees for the privilege of using the city's public streets, and also levied a $.004 per minute charge on all long distance telephone calls that were billed to a city service address, was a franchise and fee ordinance and authorized by law. City of Little Rock v. AT&T Communications, 318 Ark. 616, 888 S.W.2d 290 (1994).
Railroad Right-of-Way.
Where a telephone company has without objection constructed its line along a railroad tract so as not to interfere with the operation of the railroad, the railroad is not authorized to remove such line from its right-of-way and is liable in damages for so doing. St. Louis, Iron Mountain & S. Ry. v. Batesville & Winerva Tel. Co., 80 Ark. 499, 97 S.W. 660 (1906).
Rights of Landowners.
A landowner could not evict a telephone company from a highway because damages for the taking of his land had not been paid, but was limited to an action for damages. Southwestern Bell Tel. Co. v. Biddle, 186 Ark. 294, 54 S.W.2d 57 (1932).
Use of Highways.
Operator of a threshing machine which broke the telephone company's wires in going from the road to a field was not entitled to injunctive relief under his cross bill since telephone company's wires were maintained at a height of over ten feet from the ground. Ahrent v. Sprague, 139 Ark. 416, 214 S.W. 68 (1919).
Telephone companies are authorized to construct and operate lines over highways, provided the highways are not thereby obstructed and the landowners are paid just damages. Southwestern Bell Tel. Co. v. Biddle, 186 Ark. 294, 54 S.W.2d 57 (1932).
A telephone line is a public utility clothed with the power of eminent domain and given free use of state's highways. Ark. State Hwy. Comm'n v. Southwestern Bell Tel. Co., 206 Ark. 1099, 178 S.W.2d 1002 (1944).
Cited: Southwestern Bell Tel. Co. v. City of Fayetteville, 271 Ark. 630, 609 S.W.2d 914 (1980); International Paper Co. v. MCI Worldcom Network Servs., 202 F. Supp. 2d 895 (W.D. Ark. 2002).