Voters may decide UTOPIA's survival

City officials may get their chance to build UTOPIA, but it will require a vote of their constituents.

During a Wednesday hearing of SB66, which seeks to limit the way cities spend tax dollars on telecommunications systems, members of the House Public Utilities and Technology Committee voted 8-4 to pass the bill, but with changes.

Facing an overflow crowd of 200, the legislators heard testimony from people both supporters and opponents of the Utah Telecommunications Open Infrastructure Agency.

Members of Qwest and the Utah Taxpayers Association, among others, say the some 18 cities who want to built a multi-million-dollar fiber-optic network, have no business competing in what they view should be a private market. Calling it an investment risk too great for taxpayers, Mike German with Utah Taxpayers said the public would be on the hook $19 million a year for over 20 years if UTOPIA failed.

Opponents of SB66, however, said companies like Qwest and Comcast have been too slow to meet the needs of residents and businesses in terms of high-speed Internet and video service, while also accusing the companies of backing the bill simply to thwart UTOPIA.

"The purpose of Senate Bill 66 is to kill UTOPIA," said West Valley Mayor Dennis Nordfelt.

Under the new change SB66 would allow cities to back bonds using sales tax revenue, but only if approved by a public vote during a general election. The cities also have the option to use general obligation bonds, which also requires a public vote.

Some committee members expressed doubt about cities using tax money to fund what they saw as a risky venture. House Majority Leader Rep. Greg Curtis, R-Sandy, said he worked hard to pass legislation in 2001 to keep cities from using tax dollars to build communications networks without a public vote when Provo was building its own cable TV system.

Rep. Ralph Becker, D-Salt Lake City, said UTOPIA was no different than tax money that had been used to invest in railroads and highways.

Both Becker and House Minority Leader Brent Goodfellow, D-West Valley City, said the decision to build UTOPIA should be left to city leaders. Goodfellow reminded fellow legislators that a lot of time had been spent on the hill to send a message to the federal government not to dictate to states what to do.

The bill's sponsor, Sen. Bill Hickman, R- St. George, said the amendment softened the bill considerably. "This takes away from the bill what I feel is its strongest features," Hickman said, noting that he felt comfortable at least knowing that cities participating in UTOPIA will have to put the issue to the voters.

The bill is expected to join other bills on the House floor for discussion and a vote.

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