Senate Bill May Not Bar City From Offering Cable Television and Broadband
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City may offer cable television and broadband services.
A State Senate fiscal analyst says a bill that is causing concern to city governments "does not appear to impair a governmental entity's ability to offer cable television and broadband service."
City Manager Robert V. Belleman and the MichiganMunicipal League (MML) are recommending that the City Commission oppose Senate Bill 528, described by the MML as "a bill that would prevent local governments from providing any telecommunications services to citizens including cable high-speed internet (broadband) and wireless communications."
The bill, introduced by Sen. Shirley Johnson, R-Royal Oak, would prohibit the Public Service Commission (PSC) from regulating any communications service. The bill is under consideration by the Senate Technology and Energy Committee.
However, non-partisan Senate Fiscal Analyst Elizabeth Pratt has recently issued a bill analysis concluding that governmental entities could be prohibited from offering long distance and voice over internet telephone service but not cable television and broadband.
The Coldwater Board of Public Utilities (CBPU) currently offers long distance and voice over internet telephone services. It also holds a license from the PSC to operate local telephone service,but has not yet offered such service, according to the analyst.
The bill would replace the current Michigan Telecommunications Act that sunsets Dec. 31, 2005.
"The ability to provide high-speed internet and wireless communications in the future will be an issue important to Bay City," the city manager wrote in a memo to city commissioners this weekend. "The Michigan Municipal League, and city staff concurs, that this bill is a frontal attack on local control."
MML in its advisory states "for local governments, reliable high-speed internet (broadband) services attract businesses, spurs economic development, supports urban renewal, and helps communities provide effective and efficient core services (i.e., public safety, public works, etc.)
Mr. Belleman reminded commissioners that the city hired Fishel Consulting Services to prepare a telecommunications study that was presented July 29, 2002. Mr. Belleman wrote: "At the time, the City of Bay City was evaluating whether it should get into the telecommunication business. One of the issues the City struggles with is the constant rate increases from cable companies and telephone service providers to our residents with no clear explanation for those rate increases or alternate/competitive services available."
The commission is set to consider a resolution opposing Senate Bill 528 on Sept. 12. A letter from the Michigan Municipal Electric Association objecting to the bill has gone out from Phil Newton, city utilities director, to Rep. Jeff Mayes and Sen. James Barcia, according to the city manager.###
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