Local communities in the state of Mississippi have the legal authority to develop publicly owned Internet networks and offer broadband, or any other utility, to the general public. When it comes to bonding in order to financing deployment for broadband infrastructure, however, the law isn’t as cut and dry. In order to stay on the right side of the law, the community of Columbus, Mississippi, decided to obtain permission from the state legislature to issue bonds for a $2.75 million expansion of their existing fiber optic network. Things didn’t work out as well as they had hoped, thanks to powerful lobbying influence in Jackson.
Stuck in Committee
Rep. Jeff Smith is Chair of the House Ways and Means Committee and introduced HB 1741, which would have granted permission for the city of Columbus to issue bonds to fund the infrastructure for better connectivity. Smith, who is also a board attorney for Columbus Light and Water (CLW), filed the bill because past opinions from state Attorneys General conflict on interpretation of the law. Bond attorneys told the utility board that the safest way forward would be to approach the Mississippi State Legislature for permission to bond.
The bill was directed to the House Local and Private Committee, but never received a hearing before the committee deadline of March 28th. According to Smith, HB 1741 had necessary support in the House, but Senate leadership would not let the bill advance:
"We were told lobbyists from Comcast and the other big cable providers had sat down with (Lt. Governor Tate Reeves) and encouraged him to kill three similar bills," Smith said. "He's the president of the Senate so ... when we heard that we knew it wasn't going to make it."
When compared to the lobbying forces of Comcast, AT&T, and other national Internet access providers, CLW and the city of Columbus can expect to be outgunned at every turn. Large companies with millions to spend on experts well-versed at convincing state Senators not to take up bills such as HB 1741 have an unfair advantage. With the financing and manpower to...Read more