Toll Road Schemes

TOLL ROAD TAKEOVER—Advocates in New Jersey, Pennsylvania and Texas—three states facing potential privatization of roads—used research and public opposition to stall plans to turn over control of public roads.

Three state PIRGs released reports highlighting the problems associated with irresponsible privatization of toll roads—and all three states saw subsequent victories. New Jersey, Pennsylvania and Texas governors each retreated from their plans to relinquish toll revenue and control over transportation policy to private companies.

The actions of the governors represent a reversal of a national trend exemplified in Chicago and Indiana, where officials accepted large short-term revenue from toll operating companies at the expense of public ownership of their roads. Florida PIRG, with the Federation of State PIRGs, opposes private ownership because private companies are more likely to make decisions based on profit than public safety.

Various forms of toll road privatization have been proposed in Florida and 24 other states. PIRG’s Tax and Budget Analyst Phineas Baxendall reports that we’ll continue to serve as watchdog on the lookout for bad road deals.

New PIRG-Backed Bill Would Limit Credit Fees

There are lots of ways that credit card companies take advantage of consumers. When you miss a payment you are charged a late fee. Then, not only can the credit card company charge you for the interest on that fee—they can also charge you again and again if the fee pushes you over your credit limit.

The Florida PIRG-backed “Stop Unfair Practices in Credit Cards Act” sponsored by Sen. Levin (Mich.) and Sen. McCaskill (Mo.) would prohibit banks from charging repeated over-limit fees for a single instance of exceeding the limit. The bill would also prohibit charging interest on penalty fees.

Florida PIRG is making sure that the public knows what credit card companies get away with by using “the fine print.”

Students Fight To Save Internet Radio

Last July, students organized by Florida PIRG, Save Net Radio and other public interest media reform groups urged Congress to repeal stringent copyright royalty rates that could force Internet radio stations out of business and reduce opportunities for diverse musicians to promote their music.

The student petition called on Congress to support the bipartisan “Internet Radio Equality Act,” (HR 2060) introduced by Reps. Inslee (Wash.) and Manzullo (Ill.). “This act compensates rights holders but also encourages growth in Internet radio and the greater media marketplace,” said Florida PIRG Consumer Advocate Brad Ashwell.

“The Copyright Royalty Board’s proposed rates are a clear example of unfair and shortsighted regulation. These new rates will destroy this young and innovative industry if they are allowed to take effect,” added Ashwell.