DENVER – A bill proposing an answer for how to expand broadband access throughout rural Colorado died in the state Legislature Monday.
Senate Bill 42 would have removed restrictions on local governments for establishing telecommunications infrastructure and providing service, but it was killed on a 4-3 party line vote, in the Senate Business, Labor and Technology Committee. Republicans sided with sticking to the current statute.
The statute, which dates from 2005, requires local governments to go to voters with any request to establish broadband infrastructure in the absence of a private provider.
SB 42 proponents saw required elections as a waste of time and money that could have been used for expanding broadband access in rural Colorado where it is not profitable for large companies.
Sen. Kerry Donovan, D-Vail, said these elections can cost as much as $30,000, and that does not count funds put toward promoting the measures.
Opponents argued the bill could allow local governments to undermine the free market for telecommunications in rural areas.
Jeff Wiess, executive director of the Colorado Cable Telecommunication Association, said the bill could allow a local jurisdictions to apply for permits to develop infrastructure alongside private businesses, and then accelerate its permitting process while slowing down competing permits
“Those are the kinds of things that we were worried about. This bill eliminates those restrictions, basically gives the government unchecked ability to act in any way it wants in a competitive marketplace,” Wiess said.
Roger Zalneraitis, executive director of La Plata County Economic Development Alliance, said this is not the intention of the bill, and many communities are already opting out of the statute, including La Plata County, which did so in 2015.
Zalneraitis said some opponents are not opposing S.B. 42 out of respect for the free market. “They are opposing it to retain their government-subsidized monopoly position in certain markets,” he said.
Confusion caused by wording of the current statute was also brought up.
Many local governments have interpreted S.B. 152 as inhibiting their ability to discuss and investigate the potential of establishing their own broadband infrastructure before going to voters and opting out of statute, Wiess said.
