It sounds more like state legislators (who have received political donations form the cable/phone incumbent internet monopolies) want to protect the markets from stupid (unbribed) city officials who obviously don't have the intelligence (incumbent cable/phone bribes) to make wise choices for their cities. It's too late, monopolies have already been setup, this is just about the early guys protecting their turf. There's no doubt in my mind that phone/cable monopoly money is behind this bill.
Are XP users really in your market? Do they really spend any money on software or the products you advertise? Someone who is still on XP may not have a lot of discretionary funds. Of course they might be a 'crazy' like Steve Gibson.
Convert your site to python/big table and use Google App Engine. Great up time, free (besides dev time) to get started and cheap to scale. You could do java also but I like python much better.
PS: Of course there will be people who will tell you GAE is a bad idea, every solution has negatives, you never will find a perfect one. It is better to know the weaknesses than be surprised later. I've done site with LAMP and GAE, I like GAE better. The best thing about it is you spend a much higher percentage of you time on your web app code and less on hosting, provisioning, load projections, deployment, scaling issues, server config, extension updating, etc.
I guess they didn't look at redundancy or reliability in their cost equation..."So we marched down the road of the Windows platform. We don't have any Unix; we don't have an AS/400; we don't have any mainframes — we don't have anything outside of Windows. There has been tremendous cost savings.
...everything's Windows. Every technician that works on a server works on a Windows server. Every technician working on a desktop works on a Windows desktop. That's quite a bit easier than other flavors of desktops or OS/2 or whatever else is out there.