Utah legislature passed and sent to Gov. Michael Leavitt (R)bill ...
Utah legislature passed and sent to Gov. Michael Leavitt (R)bill (HB-149) that would limit authority of municipalities to own and operate cable and telecom facilities. Measure would bar local govts. that issue bonds to finance capital costs from paying…
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origination, financing or other carrying costs from general funds or other enterprise funds. Bonds issued must be secured and paid for solely with municipal revenue generated from providing cable or telecom services, bill stipulates. It would require that municipality establish enterprise fund to account for its operation of cable or telecom service and would bar transferring any appropriation or other balance from fund to any other enterprise fund. “It [HB-149] sets up a number of roadblocks” for municipalities to enter telecom business, said Paul Venturella, telecom mgr. of Provo, Utah, which recently acquired cable system. AT&T spokeswoman said legislation would allow municipalities to compete in retail business only if they followed rigid requirements. She said it would help private operators by making municipalities pay same franchise fees and other taxes as incumbent cable systems must pay. “We are relieved that the bill levels the playing field” for corporate entities, she said. Meanwhile, Ore. legislature was considering measure (HB-2680) that would: (1) Require local govts. to set and charge prices or rates that were high enough to cover all direct and indirect costs incurred in providing telecom services. (2) Mandate annual full cost accounting. (3) Prohibit local govts. from paying direct or indirect costs incurred in providing telecom services if they weren’t reflected in accounting. (4) Require local govts. to provide 3-year cost projection before providing telecom service. NCTA spokesman said 13 states so far had enacted measures to level playing field for private cable operators: Cal., Conn., Fla., Ga.,Ill., Minn., Nev., N.H., Ohio, Okla., R.I., Tenn., Vt. Similar measure was in works in Wis., he said.