Utah Senate Bill Attacking UTOPIA on the Fast Track: SB190

UPDATE: According to Pete Ashdown, the amendment has been pulled. Stay vigilant, these things rarely just go away.

We reported earlier this month that UTOPIA was once again facing legislative attack at the state level in the form of HB60. While the House has focused on other issues, the Utah Senate is launching its own attack. SB190 has also put UTOPIA in the crosshairs and events are happening quickly. Time to contact your elected officials, Utah!

According to Jesse Harris at FreeUTOPIA.org, SB190 as originally crafted, could have curtailed a pending deal between UTOPIA and Australian firm Macquierie. From Harris' February 19 story on the bill:

It appears the legislature is determined to chase off a $300M investment in our state’s broadband infrastructure to appease CenturyLink. Sen. John Valentine is running SB190 which has been very specifically crafted to prevent any UTOPIA city from using the same utility fee that Provo has to pay down the bonds. Moving to a utility fee to provide transparency on the cost of the UTOPIA bonds has been a key part of the Macquarie discussions so far, so it could very well put the deal in jeopardy.

Since its introduction, the bill was heard in the Senate Business and Labor committee. There was broad and fierce opposition and Sen. John Valentine, the sponsor of the bill, amended it. The changes made the bill palatable to Macquarie and it passed through committee to the Senate Floor on Feb. 24.

After the bill passed through the committee, Valentine introduced a floor amendment that will prevent new cities from joining the network. Harris now reports:

His floor amendment to SB190 makes it so that only current UTOPIA cities can use a utility fee to finance construction of the network. Any new cities that join would be unable to do so at all.

Why does this matter? Because Macquarie has structured the entire deal around it. If future cities can’t do it, they can’t get the same terms that Macquarie is offering UTOPIA. This could derail their rumored plans to cover the entire state in gigabit fiber with over a dozen competing providers.

The bill is now awaiting a vote on in the Senate. It is imperative that you contact the Senate, especially your own elected offical, to voice your opposition to the bill in its current form.

These types of end runs around legislative procedure are common place. In my own limited experience working at the state legislature, I have seen contentious sections of proposed bills added or removed to make a deal, only to be added or removed later on the floor and during conference commitee. In places that do not have a full time legislature, changing proposed legislation on top of a deadline is an effective way to take advantage of the clock to achieve an unpopular goal. It is important to remember that legislation is fluid until the gavel comes down sine die.