Tennessee Legislators Set To Mark Up Bills Aimed at Easing Muni Broadband Restriction
Tennessee’s HB-1303 and SB-1134 -- legislation that would partially ease restrictions in the state’s municipal broadband law -- are set for markups Tuesday in the state House Business and Utilities Subcommittee and the state Senate Commerce Committee. The legislation would ease restrictions by allowing a municipality that operates an electric utility to provide utility services, including broadband, outside its electric service area (see 1502270048). The restriction on operating utility services outside a municipality’s current electric service area was a main focus of the Electric Power Board (EPB) of Chattanooga’s pre-emption petition to the FCC, which the FCC granted Feb. 26 (see 1502260030). Both markups are to begin at 1:30 p.m. CDT.
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Supporters of HB-1303/SB-1134 told us Monday they're hopeful about the fact that legislators are moving the bills forward. “I’m glad these bills are getting what might be the first fair hearing they’ve had in a long time,” said Next Century Cities Policy Director Christopher Mitchell. Municipal broadband supporters have been working “behind the scenes” in recent weeks to push for passage of the bills, Mitchell said. Similar legislation stalled in the legislature last year (see report in the June 20, 2014, issue). HB-1303 and SB-1134 have received support from multiple state groups. The Tennessee Municipal Electric Power Association said in a statement that it's continuing to ask its members to contact their legislators in support of the bills. Google and public-private partnership facilitator Launch Tennessee said they are also in favor of the legislation, as has the Tennessee Farm Bureau Association (see 1503090056). The Bristol City Council also endorsed the legislation earlier this month.
John Thornton, CEO of real estate developer Thunder Enterprises, said he's also hopeful the bills will advance past the committee markup stage. Thornton said he has been lobbying legislators heavily in favor of easing the municipal broadband law’s restrictions since late 2013 but state legislators have been more receptive to the legislation this year. “There’s no question it’s the right thing to do,” Thornton said. “I hope we can persuade legislators to do the right thing.” Thornton credited grassroots efforts in Bradley County, which neighbors Chattanooga, with increasing the visibility of the municipal broadband restrictions. “The citizens there are really concerned” about the issue, he said.
The FCC’s recent decision to grant EPB’s pre-emption petition has also increased the visibility of the issue, but that’s partially become a double-edged sword in Tennessee, Thornton said, saying some legislators he has spoken with have taken a “warped view” that FCC action means they don’t need to take further action to ease the restrictions. “I think they’re pissed off” about federal intervention in state matters, he said. Mitchell and Thornton separately also noted heavy lobbying efforts by AT&T and other telecom companies that serve Tennessee in opposition to HB-1303 and SB-1134. AT&T didn’t comment.