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Seeking 'Side Door'

Democratic State Lawmakers Plan Net Neutrality Bills for 2018

Get set for a flurry of net neutrality bills in 2018 state legislative sessions, Democratic state lawmakers said in interviews. Responding to the FCC vote last week to rescind Title II regulation, some state lawmakers seek to avoid FCC pre-emption by regulating state procurement processes, restricting bidding to companies that certify as net neutral. Meanwhile, Democratic state attorneys general are preparing to sue the FCC and some state governments are considering ways to use their influence to protect net neutrality (see 1712150042 and 1712140044). “Part of what we’re doing is sending a message,” said New York Assemblymember Patricia Fahy, who introduced a bill Wednesday.

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State responses to FCC actions on net neutrality and ISP privacy rules are likely in 2018, said Danielle Dean, National Conference of State Legislatures policy director-communications and technology. Several state lawmakers earlier this year introduced resolutions urging retention of net neutrality rules, she noted. The FCC declined comment.

Fahy’s bill is a “side-door” approach “using the power of the purse” to encourage ISPs to follow net neutrality principles, she said in a Thursday interview. The FCC can’t pre-empt because the bill doesn’t try to overrule the order, she said. Instead, the bill would certify ISPs as net neutral by analyzing their reports to the FCC about whether they use paid prioritization or throttling. Only certified ISPs would be able to bid on state contracts in New York, which with a $160 billion budget is the second-largest state financially, she said. Consumer Protection Committee Chairman David Carlucci will sponsor the bill in the state Senate, she said. Carlucci revealed six net-neutrality bills last week. State lawmakers might not act immediately on the bill, since they usually focus on the state budget for the first three months of the year, Fahy said.

A Rhode Island senator is drafting effectively the same bill for his state, after contacting Fahy. State Sen. Louis DiPalma said he’s looking for a House sponsor and will introduce the bill in the Senate after the legislature returns Jan. 2. The state senator plans to “mimic” Fahy’s bill because it sidesteps the pre-emption question by writing rules for the state government, he said. The FCC decision was “unconscionable,” and it’s irresponsible to trust that ISPs won’t abuse neutrality, DiPalma said in an interview. “People are in business to make money” not to “give things away.”

Hawaii Rep. Kaniela Ing is drafting a bill to be introduced when the legislature’s session starts Jan. 17. New bills don't always make it the first year, "but it's important that we get this conversation going," he told us. "Democrats can't just be a party of no. We've got to have some solutions … and I haven't really seen that coming with the net neutrality debate. We're just trying to force these corporations with market power to act against their interest,” said Ing, who's seeking a U.S. House seat in 2018. Ing’s bill would declare the internet to be open, urge Congress to reverse the FCC decision and set up a task force to look into community-owned broadband as a possible alternative to national ISPs, according to his campaign website.

Washington state Rep. Drew Hansen expects a hearing on his net neutrality bill (HB-2282) in the first few weeks of the session starting Jan. 8, Hansen told us. The bill, prefiled for introduction at the start of the session, would preserve net neutrality protections for the state rescinded by the FCC, Hansen said. The lawmaker is coordinating with Gov. Jay Inslee, who announced state net-neutrality protections last week, and doesn’t believe the FCC has power to pre-empt him, Hansen said. The state rep had an ISP privacy bill last year that failed, but Hansen said that bill and HB-2282 have a better shot this year because the state Senate shifted control to Democrats.

Connecticut state Sen. Beth Bye has support from the Senate majority leader to introduce a bill in the first two weeks after that legislature returns Feb. 2, Bye told us. It’s not yet drafted, with Bye talking to lawyers and monitoring other states, she said.

California state Sen. Scott Wiener earlier pledged a net neutrality bill. But a telecom consultant for California local governments predicted it will fail, like last year’s state ISP privacy bill. The privacy bill died “despite widespread expressions of support from lawmakers” and after “intense lobbying” by ISPs, said Tellus Venture President Steve Blum. “2018 will be an expensive election year for candidates, and party leadership will be even less willing to upset big money donors, particularly over any bill that's likely to be thrown out in court.”