It looks like an ALEC-based bill. The article mentions weird-accounting rules for indirect subsidies, see section 13.5 of this, ALEC's model "Municipal Telecomm

It looks like an ALEC-based bill. The article mentions weird-accounting rules for indirect subsidies, see section 13.5 of this, ALEC's model "Municipal Telecommunications Private Industry Safeguards Act": www.muniwireless.com/reports/docs/antimunicipalbroadband.doc (I don't know if this is the most recent model bill from ALEC)