LANSING ? Education groups and local governments continued Wednesday to urge state legislators to renew the 2000 Michigan Telecommunications Act, rather than decrease industry regulations.

Organizations such as AARP and Michigan Association of Counties asked members of the House Energy and Technology Committee to reconsider many of the changes to the current act outlined in HB 5237, including a provision that would restrict the sale of excess telecommunications capacity by educational institutions and set procedural rules for public entities to offer services.

One proposed change would eliminate a school district’s ability to sell excess telecommunications capacity. Rep. Mike Nofs (R-Battle Creek) said the change should encourage private investment in telecommunications in the state.

But representatives from MiCTA, a non-profit that provides technology services to schools, governments and medical institutions, said the 2000 MTA already includes several safeguards. For example, the current law only allows the sale of up to 25 percent of its total capacity and schools can’t undercut the price of the local phone company. The revision doesn’t allow the sale of any excess capacity.

“This revision will hurt schools,” said MiCTA representative Eric Grandstaff, from North Central Michigan College in Petoskey. “No legislator who is a friend to education would ever pass such legislation.” He noted the Senate version of the bill left the provision intact.

Nofs said he and the other committee members are friends to schools, “That’s why we still let the schools own and operate the systems they already have.” He said that it is the schools responsibility to educate, not function as a business.

Some local governments also objected to provisions that lay out guidelines for public entities to provide services. The Michigan Townships Association, the Michigan Municipal League, the Michigan Municipal Electric Association and MAC raised concerns about restrictions for public entities to provide telecommunications services.

Tom Hickson from the counties organization said they’re concerned the restrictions will limit services offered to some areas in the state.

“We don’t think this provision will foster more services, conversely it could have the opposite effect by limiting who can provide the service,” he said. Hickson said the organization is working with the sponsor of the bill to ensure both private investment and adequate access. He said the counties want the ability to provide services if an investor won’t or can’t.

“If a private investor is not willing to come in we still need access,” he said. “Why take that tool off the table?”

Nofs said the revisions require governments to inform possible providers of investment opportunities, and if they receive more than two bids they must chose one.

“Frankly, we want business to come into Michigan and we want private industry because they pay taxes and add to our capital. We need to offer those opportunities to invest,” he said,

AARP representative Bill Knox said rate regulations should remain in place, and landline services should not be decreased. The 2000 MTA offers consumer rate protections for plans that allow up to 400 calls a month, that number would be decrease to 100 under the proposal.

“We at AARP believe the time for total deregulation has not arrived; the time will arrive if the current law is given a chance to work. The current regulated rate scheme should remain in place,” he said.

Knox said the organization is concerned with the removal of regulations because it allows unlimited rate increases. He said senior citizens are particularly vulnerable because many depend on landline phones to call family members and doctors, and may not be comfortable with newer telecommunications technologies.

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