The Michigan Chamber of Commerce believes governments should have the following objectives:

• To focus on priorities by determining, through comprehensive analysis, the appropriate role of government and identifying opportunities where the private sector can assist in the achievement of those functions necessary to fulfill government responsibilities.
• To provide the level and quality of services that citizens require in the most cost efficient manner possible.

The Michigan Chamber of Commerce supports public policies that promote fair competition and prevent unfair competition by government. Such policies are critical especially when governments seek to compete in traditional private sector markets. The Michigan Chamber believes that “Fair Play” legislation is now needed in Michigan, in part, to address the emergence of local units of government competing against telecommunications businesses. The Michigan Chamber supports the following “Fair Play” policy:

• A government-funded business activity must be subject to the same regulation as private sector competitors providing the same service(s). Fair Play promotes vigorous competition.
• A government-funded business activity enjoys substantial unfair advantages over private sector competitors through access to financial subsidies such as tax exemptions (including income, property, gross receipts and excise taxes), and tax exempt bond financing. Government funded business activities must be subject to the same tax rules and regulations as private sector competitors.
• A government must not use its sovereign powers, such as control of rights-of-ways or powers of condemnation, to advantage its business activities over private sector competitors. In addition, a government must not delegate its sovereign powers to a competitive non-government funded business activity.
• A government-funded business activity should have no greater ability to allocate costs among other services/departments/agencies than private sector providers.
• Government-funded business activity must impute to its cost of providing service the cost of taxes and fees consistent with the obligations of private competitors. A government-funded business activity should also impute to its cost of providing services a cost of capital consistent with the cost of capital available to private firms.
• One competitor in a business market should not be able to regulate another competitor. In other words, a government-funded business activity should not be regulated by the same government entity that funds it.