Interesting People mailing list archives

Re Can The States Really Pass Their Own Net Neutrality Laws? Here's Why I Think Yes.


From: "Dave Farber" <dave () farber net>
Date: Fri, 09 Feb 2018 20:34:08 +0000

---------- Forwarded message ---------
From: Tilghman Lesher <tilghman () meg abyt es>
Date: Fri, Feb 9, 2018 at 3:33 PM
Subject: Re: [IP] Re Can The States Really Pass Their Own Net Neutrality
Laws? Here's Why I Think Yes.
To: Dave Farber <dave () farber net>


Dr. Farber-

(for IP, if you deem it appropriate)

The EFF makes a good legal argument, here, that the FCC lacks this
authority under the law:

https://www.eff.org/deeplinks/2017/11/verizon-asks-federal-communications-commission-prohibit-states-protecting-user

This is likely to be tested in a court case, so the real answer is, "We'll
see."

On Thu, Feb 8, 2018 at 5:43 PM, Dave Farber <dave () farber net> wrote:

---------- Forwarded message ---------
From: Hasan Diwan <hasan.diwan () gmail com>
Date: Thu, Feb 8, 2018 at 6:37 PM
Subject: Re: [IP] Can The States Really Pass Their Own Net Neutrality
Laws? Here's Why I Think Yes.
To: dave () farber net <dave () farber net>


[for IP, should you wish]
Perhaps other esteemed subscribers would school me, but my understanding
is that the Federal government establishes a minimum standard of
regulation, and the individual states should feel free to exceed them,
should they wish. This is true of taxation (where you have a federal income
tax and states place their own taxes on top of this), education, and
financial regulation. Why not network neutrality as well? -- H

On 8 February 2018 at 04:10, Dave Farber <farber () gmail com> wrote:




Begin forwarded message:

*From:* Dewayne Hendricks <dewayne () warpspeed com>
*Date:* February 8, 2018 at 5:39:19 AM EST
*To:* Multiple recipients of Dewayne-Net <dewayne-net () warpspeed com>
*Subject:* *[Dewayne-Net] Can The States Really Pass Their Own Net
Neutrality Laws? Here's Why I Think Yes.*
*Reply-To:* dewayne-net () warpspeed com

Can The States Really Pass Their Own Net Neutrality Laws? Here’s Why I
Think Yes.
By Harold Feld
Feb 6 2018
<
http://www.wetmachine.com/tales-of-the-sausage-factory/can-the-states-really-pass-their-own-net-neutrality-laws-heres-why-i-think-yes/


We are seeing lots of activity in the states on net neutrality. The
Governors of Montana, New York and New Jersey have issued Executive Orders
requiring that any broadband provider doing business with the state must
certify that it won’t block, throttle, or prioritize any content or
applications. Several states are looking at passing legislation applying
some version of the 2015 FCC Net Neutrality Rules, with California furthest
along in passing something that effectively replicates the pre-2017 rules.
All of which raises the question — can the states actually do that?

The FCC not only says “no,” but in the 2017 Net Neutrality Repeal Order,
the FCC purported to explicitly preempt any state effort to recreate any
net neutrality rules. However, as I pointed out back in 2011 when
Republican Commissioners wanted to preempt state reporting requirements,
the FCC does not have unlimited preemption power. The FCC has to actually
have some source of authority to preempt localities. Indeed, Chairman Pai
was so insistent that the FCC lacked the authority to preempt state
regulation of intrastate communications services that — in a highly unusual
move — he refused to defend the portion of the FCC’s Prison Phone Order
capping intrastate rates.

The critical question is not, as some people seem to think, whether
broadband involves interstate communications or not. Of course it does. So
does ye olde plain old telephone service (POTS), and state regulated that
up to the eyeballs back in the day (even if they have subsequently
deregulated it almost entirely). The question is whether Congress has used
its power over interstate commerce to preempt the states (directly or by
delegating that power to the FCC), or whether Congress has so pervasively
regulated the field so as to effectively preempt the states, or whether the
state law — while framed as a permissible intrastate regulation —
impermissibly regulates interstate commerce (aka the “dormant commerce
clause” doctrine). Additionally, certain types of state action, such a the
action of the state as a purchaser of services, are exceedingly difficult
(if not impossible) to preempt.

As always with complicated legal questions, one cannot be 100% sure of
how a court will decide. But for the reasons set forth below, I’m
reasonably confident that the states can pass their own net neutrality
laws. I’m even more confident that a state can decide to purchase services
exclusively from carriers that make enforceable pledges not to prioritize
or otherwise discriminate against content. Mind you, I don’t think either
of these is an effective substitute for federal Title II classification and
the 2015 rules. But I encourage states to do what they can and for
activists to push for state action in addition to federal action where
possible.

Interstate Communications, Intrastate Communications, and Mixed
Jurisdictional Service.

To review the basic principle from Con Law 101, the U.S. is weird because
we have a “federalist” system under which states are “sovereign” except for
the explicit powers delegated to the federal government in the
Constitution. So generally, states can make whatever laws they want about
goods or services offered within the boundaries of their states. But one of
the powers delegated explicitly to the federal government is to regulate
commerce between the states. Additionally, courts have interpreted the
Interstate Commerce Clause as prohibiting states from regulating commerce
outside their boarders — particularly where this would discriminate against
out-of-state services. This gets somewhat complicated, however, because in
theory anything a state does will have some impact on “interstate
commerce.” So if the constitution prohibited states from doing anything
that had any impact on interstate commerce, it would effectively eliminate
the states own internal regulatory power — a result that directly conflicts
with the whole “federalism” thing. Additionally, even with regard to
interstate commerce, we have historic exceptions for states to regulate
certain kinds of activities considered intrinsic to the power of the state
and/or necessary for public safety.

In particular, states get to dictate how businesses operate in their
state — even if these businesses offer items “in the stream of interstate
commerce.” Nothing stops a state from regulating supermarkets, even though
these sell lots of out of state items. Nothing stops a state from
regulating car dealerships. Nothing stops a state from regulating how
properties get rented — even if it involves Airbnb. But the Commerce Clause
does impose some limits. If it wants to, the federal government can preempt
state law that is inconsistent with federal regulation of interstate
commerce (that is the combination of the Interstate Commerce Clause and the
Supremacy Clause).

So it’s not enough to simply say that broadband is interstate. So are
apples shipped from Washington State to Maryland. That doesn’t stop
Maryland from having a lot of say in how apples get sold in Maryland, so
long as Maryland doesn’t discriminate against apples grown outside the
state and as long as Maryland regulation of the sale of apples doesn’t
contradict any federal law on the sale of apples.

Moving from the general to the specific, we now turn to broadband and the
regulation of communications services in the United States. Congress has
created a federal agency, the FCC, that has general jurisdiction over
“communication by wire and radio.” So broadband falls in the general
jurisdiction of the FCC. But Section 152(b) explicitly recognizes the role
of the states in regulating communications and expressly prohibits the FCC
from regulating “intrastate communications.” Additionally, we have well
over 80 years of history of states regulating how local telephone companies
and local cable companies do business within their state. So this isn’t a
case where Congress has “preempted the field” as against any state
regulation. To the contrary, states traditionally have lots of authority
over how they regulate any offering of local service, including an ability
to impose non-discrimination requirements.

In telecom terms, we call something like broadband a “mixed
jurisdictional service.” It has interstate elements and intrastate
elements. So unless Congress has either expressly limited state authority,
or delegated authority to the FCC to create federal policy in a way that
preempts the states, the states can do whatever they want — subject to the
usual limitations of the Commerce Clause.

[snip]

Dewayne-Net RSS Feed: http://dewaynenet.wordpress.com/feed/
Twitter: https://twitter.com/wa8dzp


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