ALEC-based restrictions on city-run Internet at risk after FCC ruling

States that restrict municipalities from offering Internet service to residents could see their laws overturned if they based the bills on a model offered by a conservative legislative group.

Many of the provisions in the model legislation promoted by the American Legislative Exchange Council (ALEC) were incorporated into a North Carolina law that was knocked down by the Federal Communications Commission in February, according to a Center for Public Integrity analysis.

ALEC, a self-described free-market think tank made up of mostly Republican state lawmakers and funded by corporations and trade groups, created a model municipal broadband law in 2002 that makes it difficult, if not impossible, for cities to build their own networks. The goal of the legislation is to keep cities from what the group views as unfairly competing with large Internet providers such as Comcast Corp., Time Warner Cable Inc., Verizon Communications Inc. and AT&T Inc. All four companies have donated to ALEC and some executives have served in leadership positions on committees and boards.

About 20 states have passed laws that either outright ban cities from building networks or places requirements that make it almost financially impossible to develop one. Many of the laws have provisions that are similar to ALEC’s model bill.

Now they risk the same fate as North Carolina. In February, the FCC voted to preempt that state’s law and another in Tennessee that restrict cities from building or expanding broadband networks. The Tennessee attorney general is suing the FCC to overturn the decision.

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This story is part of Broadband. Investigating the political power of the information technology industry. Click here to read more stories in this investigation.

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Copyright 2014 The Center for Public Integrity. This story was published by The Center for Public Integrity, a nonprofit, nonpartisan investigative news organization in Washington, D.C.