Municipal broadband networks already serve more than 500 communities across the country, but some states are trying to keep that number from growing. Nineteen states have established legal barriers or even outright bans on publicly owned networks, according to well-respected communications law firm Baller Stokes & Lide.

These state laws, often enacted at the behest of large telecom monopolies, slow the development of community owned connectivity in various ways. From Alabama to Wisconsin, states have implemented everything from direct prohibitions on municipal networks to oppressive restrictions and requirements that limit competition.

The outlook for municipal connectivity may be starting to improve though, despite incorrect reports that state-level broadband preemption increased over the past year. Baller Stoke & Lide’s list of states with restrictions on municipal broadband investment actually shrunk this year from 20 states to 19 — a result of downgrading Colorado’s SB 152 from bonafide barrier to mere annoyance. Still, barriers to community networks remain in more than a third of all states, leaving millions of Americans unconnected and tens of millions more without local Internet choice.

Bans, Blocks, and Burdens

Common approaches to preempting municipal broadband networks range from straightforward bans to confusing financial restrictions and complicated legal requirements. While some states have established one main barrier to community broadband, many more have adopted a bird’s nest of regulations that kill any possibility of municipal connectivity, if only because of the legal uncertainty created by complex and vague laws.

Out of the 19 states with restrictions on municipal networks, a few explicitly ban local governments from providing communications services to their citizens. In Nevada, only municipalities with less than 25,000 people and counties with less than 55,000 people can offer telecommunications services. Both Arkansas and Tennessee bar municipalities without electric utilities from providing Internet access in most situations. Yet other states restrict where government utilities can deploy broadband or what types of services they can offer...

In an evening filled with art and broadband policy, folks gathered in Washington D.C. to attend a screening of the film Do Not Pass Go, a documentary that examines the efforts of Wilson, North Carolina, to expand high-quality connectivity to rural neighbor Pinetops, and how big monopoly providers and the state legislature blocked their attempts.

Next Century Cities, the Institute for Local Self-Reliance, the Coalition for Local Internet Choice, the National Association of Regional Councils, and the National League of Cities hosted the event, which included a panel discussion on relevant state laws, the value of local authority, and possible solutions at the federal and local levels to bring everyone high-quality Internet access. In addition to our own Christopher Mitchell, Terry Huval, Former Director of Lafayette Utilities System and Suzanne Coker Craig, Managing Director of CuriosiTees in Pinetops LLC and former Pinetops Commissioner spoke on the panel moderated by Deb Socia, Executive Director of Next Century Cities.

Attorney Jim Baller, President of Baller Stokes & Lide and President and Co-founder of the Coalition for Local Internet Choice also took some time to discuss specific state barriers that interfere with local authority for Internet network investment.

After the panel discussion, attendees and panelists mingled and enjoyed music supplied by Terry Huval and his fiddle:

It’s just like I’ve always said, broadband policy and Cajun fiddle music are a match made in heaven. Thank you to Terry - former manager of Lafayette, LA’s utilities system - for sharing your talents! #LocalChoice pic.twitter.com/AZZd0wNtoU

— Cat Blake (@cat_hannah_b) March 26, 2019

Host A Screening in Your Community

Holding a screening in...

Louisville has overcome a tall hurdle in its efforts to bring better connectivity and more competition to the community through local control. On August 16th the U.S. District Court for the Western District of Kentucky supported the city’s one touch make ready (OTMR) ordinance. AT&T challenged the ordinance in court, but their arguments fell flat and court confirmed that the city has the authority to manage its rights-of-way with OTMR.

State Law

AT&T’s claim based on state law asserted that the city was overstepping its authority by enacting the OTMR ordinance because it was impinging on Kentucky Public Service Commission jurisdiction. AT&T attorneys argued that, according to state law, the PSC has exclusive jurisdiction over utility rates and services, but the court found that argument incorrect.

Within the state law, the court found that the OTMR ordinance fell under a carve-out that allows Louisville to retain jurisdiction over its public rights-of-way as a matter of public safety. The ordinance helps limit traffic disruptions by reducing the number of instances trucks and crews need to tend to pole attachments. The court wrote in its Order:

AT&T narrowly characterizes Ordinance No. 21 as one that regulates pole attachments. But the ordinance actually prescribes the “method or manner of encumbering or placing burdens on” public rights-of-way. … It is undisputed that make-ready work can require blocking traffic and sidewalks multiple times to permit multiple crews to perform the same work on the same utility pole…. The one-touch make-ready ordinance requires that all necessary make-ready work be performed by a single crew, lessening the impact of make-ready work on public rights-of-way. … Louisville Metro has an important interest in managing its public rights-of-way to maximize efficiency and enhance public safety. … And Kentucky law preserves the right of cities to regulate public rights-of-way. … Because Ordinance No. 21 regulates public rights-of-way, it is within Louisville Metro’s constitutional authority to enact the ordinance, and [the state law granting authority to the PSC] cannot limit that authority. 

Federal Jurisdiction

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Preemption at the state and federal level threatens local telecommunications authority, as we’ve seen in about 20 states. When state laws usurp local governments’ ability to decide how they improve poor connectivity, they disregard an understanding of local affairs that is unique to each community. Some states are threatening to take preemption another damaging step farther with super-preemption.

Super-Preemption: "Super" In A Bad Way

The Campaign to Defend Local Solutions describes the problem like this:

State legislatures across the country have gone beyond preventing local governments from passing common-sense local solutions. They’ve begun silencing local voices using draconian super-preemption laws.  These laws allow special interest groups to sue local governments and in some cases personally sue local officials for doing their job. These laws are designed to intimidate, bully, and chill government at the local level. This infographic highlights where these laws exist, where they have been recently proposed, and what their impacts could be to cities, counties, local officials, and taxpayers alike.

Mayor Andrew Gillum from Tallahassee, Florida, recently spoke with Christopher and our Communications Manager Nick Stumo-Langer about super-preemption for episode 17 of the Building Local Power podcast. He noted that local governments need flexibility to meet the demands of local constituents:

“There’s a nimbleness to local governments that I think people have an appreciation for. The legislature [is trying to] exclude us from being able to make any investments in that space for the greater good.”

In order to spread the word about super-preemption, the Campaign to Defend Local Solutions created an infographic to help educate lawmakers, constituents, and communities about the issue. The resource describes how super-preemption influences policy makers, giving lobbyists and their corporate or special interest clients' power. The infographic also shows where super-preemption laws are in place or are proposed. Lastly, the infographic suggests how citizens can get...