Brendan Greeley and Alison Fitzgerald have authored an in-depth exposé of the role the American Legislative Exchange Council (ALEC) played in passing a law in Louisiana designed to cripple community-owned networks ... while falsely claiming the bill was about creating a "level playing field."
This article may not have been possible without the work done by the ALEC Exposed folks at the Center for Media and Democracy.
The aptly-titled "Pssst ... Wanna Buy a Law?" article starts with the background of one of our favorite community broadband champions: Joey Durel, the Republican City-Parish President of Lafayette, Louisiana.
In April of 2004, Lafayette announced their intention to do a market survey to get a sense of whether the community would be interested in a publicly owned FTTH network run by the public utility. By that point, it was not possible to introduce new bills at the Louisiana Legislature. Or at least, that is a technicality when it comes to the lobbying prowess of big cable and telephone companies (mainly Cox and BellSouth - one of the major companies that later became AT&T).
Worried about losing their de facto monopolies, they tapped State Senator Winnsboro to take an existing bill, delete all the words from it and then append their anti-community broadband (anti-competitive) language.
The lobbyist brought back to Lafayette a copy of what would become Senate Bill 877. It named telecommunications as a permitted city utility, then hamstrung municipalities with a list of conditions. It demanded that new projects show positive revenue within the first year. It required a city to calculate and charge itself taxes, as if it were a private company. Cities could not borrow startup costs or secure bonds from any other sources of income. The bill demanded unrealistic accounting arrangements, and it suggested a referendum that would have to pass with an absolute majority. It also, almost word for word, matched a piece of legislation kept in the library of the American Legislative Exchange Council. The council’s bill reads, “The people of the State of _______ do enact as follows … ”
According to Ellington, he substituted the bill after a lobbyist for several of the state’s cable companies approached him, concerned about Lafayette’s project....