On Monday, the House of Representative overwhelmingly passed a bill that would allow cable and Internet providers to enter into statewide franchise rights.

“This is a great day for Tennesseans,” said State Rep. Fincher (D-Cookeville). “After two long years of negotiations, the people of Tennessee can now have more options when it comes to television and Internet providers.”

Under the new bill, competitors would be able to obtain a ten-year state franchise certificate from the Tennessee Regulatory Authority (TRA) with the requirement that the company must build-out to at least 30% of their existing service area within 3.5 years. Companies would also be required to expand 25% of their total new services to underserved and low-income areas. Failure to meet either of these goals would result substantial financial penalties.

The new legislation also takes steps to protect local interests, specifically local municipalities. Under the new bill local franchise fees direct to local governments will remain in effect and any construction of right-of-ways will be under local regulation and approval.

“In the end, the big winners in this new legislation are the citizens of Tennessee,” Fincher said. “A level playing field of competition will allow more companies to come in and provide better, more consistent services to more people across our state.”

The legislation also passed the State Senate on Thursday and now goes to Governor Bredesen for signing.

Governor Requests More Time to Draft State Budget

This week Governor Bredesen requested that the state House of Representatives and Senate convene for a joint session so that he may address the budget revenue shortfalls expected for next fiscal year.

“The Bush Recession has finally begun to creep into our borders,” said Fincher. “As President Bush cuts federal funding to our state by over $130 million, and revenues continue to dry up while families are forced to spend more and more in outrageous gas prices and food prices, Tennessee will now have to face a budget crunch that we must take seriously.”

The official budget will not be presented until later this month, but current estimations place the revenue shortfall between $400-$550 million. With such a drop in revenues, many state funded projects and programs are in danger of being cut in order to produce a balance budget.

“When I balance my checkbook at home and money is tight, my family and I know that we must tighten our financial belts a

bit,” Fincher said. “This year, Tennesseans will need to be prepared to do the same thing. We can and will balance this budget without any new taxes, but that will require some tough decisions.”

The House and Senate are scheduled to convene for a joint session on Monday, May 12th.