Exemption would protect Fibrant
Published 12:00 am Thursday, March 17, 2011
By Emily Ford
eford@salisburypost.com
By two votes, a committee of state lawmakers on Thursday exempted Salisbury from a proposed law that would restrict city-owned broadband networks like Fibrant.
But an error in the way the amendment was written may force N.C. Rep. Harry Warren, R-Rowan, to reintroduce the measure Wednesday, when the Finance Committee resumes debate on the bill.
ěWe will try to get that passed next week,î Warren said Thursday night.
But he added itís not yet clear if the committee must vote again on the measure, which would exempt Salisbury and four other cities with existing broadband networks from House Bill 129.
The amendment passed 15 to 13. Warren presented his amendment verbally.
He said he learned later the written amendment contained an error. But Warren said his intent, and what the committee members voted on, was clear.
ěNo one read the written amendment,î Warren said. ěThey voted onî the verbal amendment.
Assistant City Manager Doug Paris said based on what he heard, Salisbury is now fully exempt from the legislation.
ěThe intent was clear,î said Paris, who attended the committee meeting with several other city officials.
Salisbury has sought full exemption since the legislation was introduced, negotiating multiple revisions of the bill that city officials say was written by the cable lobby.
Fibrant competes with Time Warner Cable and others to provide Internet, cable TV and phone services.
Salisbury has hired a communications attorney in Washington, D.C., and a high-profile Raleigh lobbyist to fight the legislation, which has been introduced for four years but never passed.
Warren said itís not fair for the state to change the rules for cities with broadband networks up and running.
ěSalisbury, Morganton, Wilson, Mooresville and Davidson were in business before the bill came out and before the provisions were written,î Warren said. ěI felt they should be grandfathered in. I felt it was the right thing to do.î
If the amendment stands, Salisbury will not have to comply with any provisions of the bill, which officials say would harm the cityís ability to repay the $30 million they borrowed to build the network and keep them from financing expansions of Fibrant to annexed neighborhoods or other towns.
In another victory for Salisbury, the Finance Committee will take public comment Wednesday when debate resumes.
Paris said he asked N.C. Rep. Julia Howard, R-Davie, chairwoman of the Finance Committee, earlier this week for a public hearing on the bill and she turned him down.
But Thursday, the committee agreed to hear from the public Wednesday when it reviews the legislation.
Salisbury officials say they asked, even begged, private companies like Time Warner to provide high-speed Internet throughout the city. Several areas, including some downtown, did not have service.
Salisbury says the companies refused to upgrade to a fiber-optic network, so the city built one itself in support of economic development, public safety and education.
Cable and phone companies have urged the General Assembly to restrict municipal broadband services since a 2005 state appeals court ruling upheld the right of towns and cities to sell broadband.
Companies say government has an unfair advantage because cities donít pay taxes and can subsidize their rates with revenues from other utilities.
Cities that choose to compete against private business should be subject to the same rules, said Marcus Trathen, a lawyer for the N.C. Cable Telecommunications Association.
The North Carolina conflict is playing out amid a national push to extend broadband to corners of the country that private enterprise hasnít reached, including $7.2 billion set aside for broadband in 2009ís stimulus bill.
The General Assemblyís annual tussle over municipal broadband also is playing out this year under Republican leadership after more than a century of Democratic rule.
Supporters of the bill, which has bipartisan sponsorship, say they are protecting jobs and spurring investment by clearing the playing field for the private sector.
The Associated Press contributed to this story. Contact reporter Emily Ford at 704-797-4264.