SB190 is no more. Sen. John Valentine made a motion to send SB190 to the rules committee to be studied in the interim which passed the Senate. This effectively ends consideration of SB190 this year, though it’s possible it may come up again next year. Short version: we win.
So what do we do now? Once the session is over, make sure you go to those interim meetings and write the committee members. I have no doubt that so many of you contacting legislators made a huge difference both in getting the bill amended and ultimately getting it shelved. Between this and HB60 appearing to rot on the vine, broadband advocates in Utah have scored major victories this year.
When I hear more about the movements on the committee and its proposals, I’ll be sure to pass them along.
No sooner did Sen. John Valentine promise to UTOPIA and Macquarie to withdraw Amendment 2 to SB190 than he started telling constituents that he hasn’t made up his mind yet. As previously covered, this amendment would keep Macquarie from doing the same kind of utility fee deal in new cities that it’s currently arranging with UTOPIA. It seems now that Sen. Valentine is dealing with UTOPIA and Macquarie in bad faith, telling them one thing while he tries to do another.
This means we need to keep up the email campaign to oppose it. In addition to hitting the Senate body, you should also contact Rep. James Dunnigan, the House sponsor, to let him know that you don’t want to support Amendment 2. The only way this goes through in a way to benefit all Utahns, not just those in UTOPIA cities, is if the bill is preserved as amended in the Senate Business and Labor Committee.
There’s only 13 days left in the legislative session. Make them count!
PS Yes, I have a GRAMA request in to see who’s been talking to Sen. Valentine about this bill.
Did you have a glimmer of hope that you’d be able to get UTOPIA service in your city once Macquarie comes in? Sen. John Valentine just smashed it with a hammer. His floor amendment to SB190 makes it so that only current UTOPIA cities can use a utility fee to finance construction of the network. Any new cities that join would be unable to do so at all.
Why does this matter? Because Macquarie has structured the entire deal around it. If future cities can’t do it, they can’t get the same terms that Macquarie is offering UTOPIA. This could derail their rumored plans to cover the entire state in gigabit fiber with over a dozen competing providers.
Right now, the bill is in the Senate and will come to a floor vote. It’s urgent that you contact members of the Senate, particularly your senator, to tell them to oppose this amendment. Sen. Valentine is working in bad faith by not involving UTOPIA cities either in this new amendment or the original bill.
Click here to email the entire Senate body and voice your opposition! They need to hear from you.
UPDATED 2-27-2014 2:25PM: We won! Valentine has committed to UTOPIA mayors to pull Amendment 2. Now if it can just go through without any other trickery…
On a 4-0-3 vote, SB190 was amended and passed from the Senate Business and Labor Committee this morning. XMission founder Pete Ashdown and myself both spoke in opposition to the bill while Macquarie themselves endorsed the amended bill. Layton sent Gary Crane to represent them to oppose the unamended bill and support the amended bill. It now goes to the second calendar of the Senate for its first floor vote.
During the bill presentation, Sen. Valentine explained the rationale behind the bill as a potential ambiguity in the state code. As currently worded, it prohibits any subsidy of a municipal network by the city. His interpretation is that this could include a utility fee that covers existing bond debt but not operating expenses. Naturally, I disagree and think it’s silly to call paying your debts a subsidy. All the same, the state code now explicitly states that it’s not a subsidy provided that there’s a plan to waive the fee for the indigent.
Speaking of that provision, I found out that it was something the cities were all planning on doing anyway. In the end, SB190 codified what cities were already doing on their own, but only after first attempting to kill the Macquarie deal without input from UTOPIA cities. Kind of a useless bill if you ask me.
This doesn’t mean it’s all a done deal, however. The bill also needs to be voted on in the Senate, go to a House committee, then get voted on in the House. Amendments to the bill could be proposed at any step. Right now, the best thing you can do is email your legislators and make sure they’ll accept the bill as-is so we don’t get anything worse.
I’ve been looking over some amendments that Sen. John Valentine has made to SB190 and it appears to be much improved over its original form. The utility fee is back on the table, but it does require that municipalities carve out exemptions for “economically indigent” persons if they can’t afford the fee. It also conveniently still omits Provo from these new requirements despite its large low-income student population.
The changes came after Sen. Valentine met with mayors from UTOPIA cities, something he probably should have done before even drafting the bill. It also cites unnamed “mayors” who initially pushed him to run the bills, presumably not from UTOPIA cities. I’d personally like to know who they were and why they would care what UTOPIA cities are doing with their budgets and bond debts.
One lingering concern I have is that “economically indigent” isn’t a defined term I can find in either in the bill or elsewhere in the chapter. The best I can find is in Title 77-32-202, paragraph (3)(a)(ii) where indigent is defined as under 150% of the federal poverty level for purposes of assigning free legal counsel. Based on the current federal poverty level, that would work out to $35,325 for a family of four. It’s unknown if that would be the standard by which all cities would be judged or if they’d be free to establish their own guidelines.
Even with the improvements, I still plan to speak against this bill. If it’s a good idea, there’s no reason to exempt Provo (thus providing an indirect advantage to Google). I’m also not comfortable with leaving terms undefined as a “gotcha” to try putting the original restrictions in place in another session. Finally, I don’t like the legislature trying to dictate terms to cities as if they are a super-city council. If they want to run the city, they should get on the council themselves.
It appears the legislature is determined to chase off a $300M investment in our state’s broadband infrastructure to appease CenturyLink. Sen. John Valentine is running SB190 which has been very specifically crafted to prevent any UTOPIA city from using the same utility fee that Provo has to pay down the bonds. Moving to a utility fee to provide transparency on the cost of the UTOPIA bonds has been a key part of the Macquarie discussions so far, so it could very well put the deal in jeopardy.
Just like with Rep. Curt Webb, all you have to do is follow the money. Since 2008, Sen. Valentine has taken $200 from the Utah Rural Telecom Association, $1500 from CenturyLink/Qwest, and a whopping $7250 from Comcast with at least one donation every single year. He’s heard from the incumbents; now he needs to hear from us.
SB190 isn’t currently on the Senate Business and Labor Committee agenda, but I’ll let you know when it is. If it passes, it could hamper the deal to have Macquarie complete gigabit fiber to over 150K homes and prevent them from expanding beyond current UTOPIA cities. Now is the time to contact the members of the committee and tell them to kill this bill.