Republican Delegates in the Virginia House Labor and Commerce Committee advanced HB 2108 yesterday, despite opposition from constituents, local leaders, and members of the telecommunications industry. A revised version of Byron’s Bad Broadband Bill now heads to the House Floor today for a vote from the entire body.

A bill titled the “Virginia Broadband Deployment Act” by its sponsor now contains nothing about “deployment” but retains provisions forcing publicly owned networks to reveal proprietary information that limit competition. In the hearing yesterday, President and CEO of the Roanoke Valley Broadband Authority (RVBA) testified that this bill is overkill:

In front of the committee, Smith argued the Virginia Freedom of Information Act stipulations already codified in the Wireless Services Authority Act are sufficient and the new requirements in Byron’s bill could require the broadband authority to reveal proprietary information about its customers.

Under this bill, the broadband authority could have been forced to reveal information about Meridium — that GE Digital was planning to purchase the Roanoke-based company for $495 million, Smith said.

“There’s nothing hidden under the table,” Smith said. “The Wireless Services Authority Act is sufficient because you all did your job in 2003.”

The broadband authority’s rates, books and board meetings already are open to the public.

Our Christopher Mitchell noted that the attempt to force publicly owned networks into a state of "ultra-transparency" was also a thinly veiled attempt to ward off competition from potential public-private partnerships:

Friends of Municipal Broadband are asking citizens who want the state to improve connectivity in Virginia to attend a hearing of the House Commerce and Labor Committee tomorrow, Feb. 2nd. They want Virginians to speak out against HB 2108, affectionately known as “Byron’s Bad Broadband Bill.”

As we reported last week, Governor Terry McAuliffe recognized the failings of the bill that would effectively put an end to local control of high-quality Internet access options. He threatened to veto it in its original form, so its sponsor and telecom industry darling Del. Kathy Byron revised the bill and removed it from the Jan. 26th agenda. She requested the committee take up the revision at tomorrow’s hearing, scheduled for 30 minutes after the close of Session.

Meeting Prep

Friends of Municipal Broadband has kept a close eye on the bill and its movement through the legislature. They’ve prepared a press packet, made available a detailed legal analysis, and arranged a press conference so local officials and representatives from potential private sector partners could comment.

They’ve prepared some talking points on the revised edition:

The new version of HB 2108 removes ALL FOIA exemptions related to municipal broadband. It also includes a number of duplicative line items to address issues that are already covered in existing code. 

This means that:

Even after constituent calls and emails, and a threat from Governor McAuliffe to veto her bad broadband bill, Del. Kathy Byron is trying to shove through her anti-competitive HB 2108. The legislation will prove fatal for local telecommunications authority if it passes. The revised bill is up for a vote in the House Labor and Commerce Committee on Thursday, February 2nd; Byron is Vice-Chair of the Committee.

Here's The New Bill; Same As The Old Bill

If you’re curious to see the text of the new draft, it is now available on Virginia’s Legislative Information System (LIS). If you’re expecting something better than the original text, you will be disappointed. This version holds on to provisions that Byron’s influential friends in the telecommunications industry need to intimidate and lock out competition.

The revised bill still dictates rules on pricing for municipal networks and imposes heavy-handed transparency rules that put any proposal at a disadvantage. The aim is to discourage potential private sector partners who may wish to work with local governments. The new draft maintains broad enforcement provisions, which large, anti-competitive providers exploit as a delay tactic to bury a publicly owned project before it even starts.

Like it’s predecessor, it’s painfully obvious that this version of HB 2108 is a AT&T sponsored tool to scare off any competition.

Another Bad Review

As bills in Virginia and Missouri state legislatures are up for review this year, take a few minutes to listen to Christopher Mitchell and Lisa Gonzalez discuss state preemption, past, present, and future in episode 10 of the Building Local Power podcast. 

John Farrell from the Institute for Local Self-Reliance talks to them about the power of lobbying at the state level and how large national providers aim to control the market by using state laws. We’ve seen it happen in about 20 states and now local authority advocates are fighting to prevent HB 2108 ("Byron’s Bad Broadband Bill") in Virginia and a repeat of last year’s battle in Missouri with SB 186. If those state restrictions are allowed to become law, better connectivity for rural communities will be even more difficult to achieve because municipal networks will be all but stamped out. 

“These big cable and telephone companies are against competition,” says Chris Mitchell. “For them, they’ve grown up in monopoly environments. They are opposed to private-sector competition and public-sector competition.”

During the interview, Christopher and Lisa share examples of cost savings, economic development, and improved quality of life in communities where the big providers could not justify investment. Learn more about the who, what, and why companies like AT&T, Comcast, and CenturyLink spend millions on lobbying efforts in state capitols.

Building Local Power Podcast

This is episode 10 of the Building Local Power podcast, a series that shares the work of staff at the Institute and focuses on local initiatives. With the current state of affairs so uncertain at the federal level, taking action in your own community is more important than ever. New episodes air every other week.

Governor Terry McAuliffe is one of a many voices that are speaking out against Del. Kathy Byron’s Bad Broadband Bill, reports the Roanoke Times. According to a spokesman for the Governor, the original text of the bill would have faced certain veto.

The bill was on the January 26th agenda for the House Labor and Commerce Committee, but Del. Byron chose not to present it after all. Instead, it will be on the February 2nd agenda.

The bill was altered before today’s hearing, but the changes still don’t make it worth passing. As it was before, HB 2108 remains the latest big telephone and cable lobbyists' attempt to restrict municipalities from exercising their own local authority. The purpose is to body-block any current or future competition from publicly owned networks and stop public-private partnerships. They want to maintain existing monopolies. 

Governor McAuliffe recognized it and his staffer Brian Coy told the Times via email:

“The Governor is working hard to expand access to broadband Internet across the Commonwealth,” Coy wrote. “That goal requires fostering competition, not stifling it.”

McAuliffe echoed the sentiments of a long list of experts, private companies, and associations who joined together and drafted a letter to the Chair and Members of the Committee. In the letter, they explained why HB 2108 would harm Virginia’s efforts to improve access to fast, affordable, reliable connectivity, especially in the rural areas.

Even those staunch free-market advocates are poo-pooing HB 2108. The Daily Yonder quoted conservative blogger Susan Sili about the bill:

“This is completely frustrating from a local perspective where we have spent years trying to convince citizens in Caroline [County] to vote for less government and free enterprise in a blue county. This kind of U-turn from our creed certainly isn’t helping.”

"Byron’s Bad Broadband Bill" has been criticized from City Council meeting rooms, at Boards of Supervisors meetings, and from Mayors’ offices across the state. Last Wednesday, January 18th, opponents of the bill took their grievances to Richmond for a press conference hosted by the Friends of Municipal Broadband. In addition to several Delegates and Senators opposed to HB 2108, local officials and a representative from an Internet Service Provider appeared to describe why they believe the bill is bad for Virginia.

The News & Advance covered the press conference in which Del. Sam Rasoul described missed opportunities:

Some businesses pass on Roanoke Valley locations because company officials discover they can’t get internet service, Rasoul said. Then, there are other Roanoke businesses like the software company Meridium that want access to multiple service providers.

“Internet and access to high-speed internet is a basic human right now because it’s just that link to education, it’s that link to information, it’s that link to peoples’ livelihoods and that’s why we’re so passionate about it,” Rasoul said.

Nicholas Pascaretti, Executive Director of Eastern Shore Of Virginia Broadband Authority, described how municipal networks attract providers to rural areas where national companies won’t invest:

Scott Robertson, Executive Director and Secretary of the Rockbridge Area Network Authority (RANA), described incredible savings and access to unprecedented capacity in local schools in Rockbridge County:

On January 26th, one half hour after the House adjourns, the Virginia House Commerce and Labor Committee will hear HB 2108, known around our office as “Byron’s Bad Broadband Bill.” We encourage you to contact members of the committee to let them know that the bill is not good for bringing better connectivity to Virginia, especially in rural areas. It’s another piece of legislation written by big cable and telco lobbyists aimed at blocking competition.

If you live in Virginia or one of the Delegates on the Committee represents your district, be sure to mention that you vote. 

Members of the House Commerce and Labor Committee and their contact information are listed on the Committee website. They provide email and phone numbers all in one place.

This Bill...Not Our Kind Of Bill

As we noted when we first reported on the bill, Byron is Vice-Chair of this committee. We’ve also reflected on her position as Chair of the Virginia Broadband Advisory Council and why on earth she would introduce bills that are counter productive to the mission of the Council - to offer advice and solutions aimed at improving broadband access across the state. The chemistry between the citizen members of the Council and the Legislative members assigned to the committee call into question the reasoning behind the content of HB 2108. Phil Dampier recently wrote a compelling article on the situation in Stop the Cap.

Keep It Simple

Ars Technica - January 25,2017

Google and Netflix join fight against municipal broadband restrictions

Written by Jon Brodkin

Google and Netflix joined a handful of advocacy groups and other companies lobbying against a proposed Virginia state law that would make it far more difficult for municipalities to offer Internet service.

As we previously reported, the "Virginia Broadband Deployment Act" would prohibit municipal broadband deployments except in very limited circumstances. For example, localities wouldn't be allowed to offer Internet service to residents if an existing network already provides 10Mbps download and 1Mbps upload speeds to 90 percent of potential customers. Even if that condition is met, municipalities would have to jump through several legal hoops before being allowed to build a network.

...

"A number of local governments have already passed resolutions condemning the legislative attack on their right to make local telecommunications decisions and we expect to see more," the Institute for Local Self-Reliance's Community Networks project wrote Monday. The 10Mbps/1Mbps speeds specified in the legislation are "reminiscent of antiquated DSL," the group said.

...

Read the full story here.

Three more Virginia communities declared opposition to the proposed state legislation that would limit municipal networks. Nelson County, Chesapeake, and Virginia Beach all have spoken out against the bill, HB 2108. We expect more communities to speak out over the next few weeks.

Last week, we reported that Franklin County and the City Council of Roanoke passed resolutions condemning Byron's bill. Roanoke is concerned that the bill will undo all the time, effort, and investment put into the Roanoke Valley Broadband Authority's open access network; Franklin County is considering ways to improve local connectivity with private partners.

Most of the resolutions and statements so far have passed with unanimous support. The Norfolk County’s Board of Supervisors are set to vote on a resolution this Tuesday, January 24th.

Statements Support Internet Access, Condemn HB 2108

The resolution from Virginia Beach specifically pointed out that the bill undermines the goals of Virginia’s Broadband Advisory Council. Del. Kathy Byron is the author of the bill and the chair of that council. 

“WHEREAS, the City Council of Virginia Beach supports the mission of the Broadband [Advisory] Council (“BAC”) as organized under Va. Code 2.2-2699.3 and its purpose of expediting deployment and reducing the cost of broadband access in the Commonwealth; however, passage of HB2108 and the Act would produce results that directly conflict with this purpose;”

Read all of the statements opposing HB 2018 here:

Private sector companies, trade organizations, and local authority advocacy groups went on record last week in opposition to HB 2108, a Virginia bill that would severely restrict local communities’ options to improve connectivity. They joined together in a letter to the Chairman of the Virginia House Commerce and Labor Committee, there the bill is now waiting for hearing, Republican Terry J. Kilgore.

Joining Local Communities To Oppose

A number of local governments have already passed resolutions condemning the legislative attack on their right to make local telecommunications decisions and we expect to see more. Del. Kathy Byron, a legislative darling of big cable and DSL providers in Virginia, introduce the bill earlier this month. Local and national media outlets immediately caught the story, and constituents have contacted Byron's office to express their concern. 

This letter from leaders in the industry underscored their concern that potential partners feel the bill is a death knell for public-private partnerships:

It would interfere with the ability of private companies to make timely sales of equipment and services to public broadband providers. It would deny private companies timely access to advanced networks over which they could offer business and residential customers an endless array of modern products and services. It would also impair economic and educational opportunities that contribute to a skilled workforce from which businesses across the state will benefit. 

The authors of the letter find the slow speeds required in the bill especially troubling for rural communities. The bill sets the standards at 10 Megabits per second (Mbps) download and 1 Mbps upload - speeds reminiscent of antiquated DSL: