The state House of Representatives gave final approval Thursday to a bill that would set tough new rules for cities and towns that want to offer cable TV, internet or other telecommunications services. In an 84-32 vote, the House concurred with the version of the bill that passed the Senate Tuesday. It now goes to Gov. Beverly Perdue, who can sign it into law.

The so called “Level Playing Field” bill exempts existing systems, including MI-Connection, which is owned by the towns of Davidson and Mooresville, as well as similar networks in Salisbury, Wilson and Morganton. But it establishes boundaries for where those systems can expand in the future.

Other cities or towns not already in the business would have to get voter approval for any debt they issue to pay for communications networks. They also would have to hold public hearings on their plans. And since cities and towns are exempt from taxes, they would be required to make payments in lieu of taxes to themselves equal to what a private company would have to pay.

The state’s private cable TV and telephone companies, including Time Warner Cable, have sought legislation for years in North Carolina to limit competition from government-owned communications systems. The companies argue that municipalities have unfair advantages.

The bill’s opponents, including some cities and towns and the N.C. League of Municipalities believe local governments should be free to offer high-speed communications, especially in places where private companies have been unwilling to offer service.

In an interview with North Carolina Public Radio, Rep. Bill Faison (D-Durham) said the bill should be called “the Time Warner cable anti-competitive bill.”

“It’s a New York company bill, it’s not even folks from around here’s bill, to keep our municipalities from providing services to their citizens,” Rep. Faison said.

Marcus Trathen, of the N.C. Cable Telecommunications Association, which represents private telecommunications companies, said, “This is a good day for taxpayers of this state who, before now, have not had a say in whether their cities incur debt for the purpose of providing services already being provided by private business.”

RELATED LINKS

May 6, 2011, North Carolina Public Radio, WUNC.org, “Lawmakers Pass Broadband Bill”

May 5, 2011, Associated Press, via NewsObserver.com, “NC legislature approves broadband rules for cities.”

N.C. General Assembly web page with text of the bill and voting results, ncga.state.nc.us

May 3, 2011, “Senate OKs restrictions on municipal cable systems.”