The State of State Preemption – Seventeen is the Number
In years past, states have implemented preemptive laws that make it more difficult or impossible for communities to build their own Internet networks.
These state barriers were often enacted at the behest of large telecom monopolies to limit competition, and include everything from outright bans on municipal broadband networks to oppressive restrictions and requirements which create legal uncertainty for communities attempting to offer telecommunications and Internet services, including via partnerships.
When the Covid-19 pandemic hit the United States in March 2020, there were 19 states maintaining significant restrictions on municipal networks. Today, the number of states upholding these barriers has been reduced to 17. The pandemic served as a turning point in the fight for local authority, and in the past year, Arkansas and Washington adopted legislation significantly rolling back legislative barriers on publicly owned broadband networks.
In February of 2021, both chambers of the Republican-dominated Arkansas State Legislature voted unanimously to send Senate Bill 74 to State Governor Asa Hutchinson, who signed the bill into law. The legislation grants government entities the authority to provide broadband services and expands the financing options available to municipalities to fund municipal broadband projects.
In May of 2021, Washington State Governor Jay Inslee signed two bills expanding municipal authority to provide retail Internet services to end-users, House Bill 1336 and Senate Bill 5383. Both bills reduce barriers to municipal networks, but House Bill 1336, which completely removes all previously-held restrictions on public broadband in the state of Washington, is expected to take legal precedence.