ATLANTA (Monday, January 23, 2012) – Today, Majority Leader Chip Rogers (R-Woodstock) held a press conference at the State Capitol to announce the Broadband Investment Equity Act (SB 313). The primary goal of SB 313 is to protect taxpayers and encourage private investment by requiring local governments to engage and educate its citizens through public hearings and special election prior to starting a new communications network. Additionally, the local government must solicit RFP’s from private providers and show fiscal responsibility through a cost-benefit analysis of its plan. The Broadband Investment Equity Act bill asserts that when a government entity provides a broadband in competition with a private business, it must play by the same rules that apply to private business.
“Broadband is a vital tool for education reform and economic development. This bill will allow for robust competition in the communication marketplace and encourage continued economic growth throughout our state,” said Rogers. “By extending our long-standing commitment to policies that encourage private investment and market-driven competition, we are putting the needs of our citizens above those of government.”
The Broadband Investment Equity Act prevents local governments from discriminating against access of rights-of-way or poles and ensuring they provide reasonable rates, terms and conditions to private providers. Like private business, public providers are prohibited from paying for communication networks with tax revenue or revenue from any other service provided by local government. Additionally, the bill requires local government to pay income, sales and property taxes, as well as franchise and right-of- way fees from a separate fund established for the service.
In accordance with the level playing field set by The Broadband Investment Equity Act, government owned services cannot be offered at an anticompetitive price that is below cost. Government owned communications networks must also follow the same local, state, and federal laws and regulations as private communications providers. Local government will also be prohibited from increasing costs of business taxes or fees charged to private providers to pay for debt of a government owned communications network.
The Broadband Investment Equity Act will ensure local governments do not use their powers to delay another service in an effort to force residents to use the public provider and prohibits the increase of cost of business taxes or fees charged to private providers to pay for debt of a government own communication network. Other stipulations include requiring a public provider’s books, record and meetings to be open to the public for inspection.
RELEASE
For Immediate Release:
January 23, 2012
For Information Contact:
Natalie Dale, Director
natalie.dale@senate.ga.gov
404.656.0028