U.S. Supreme Court Rules that States Can Bar Municipal Telecom

The U.S. Supreme Court overturned a lower court ruling in a case of whether the federal Telecommunications Act of 1996 can pre-empt state and local laws that expressly prohibit municipal bodies from offering telecommunications service.



In 1997, the General Assembly of Missouri passed legislation that barred political subdivisions within the state from offering telecommunications services. The Missouri Municipal League then petitioned the FCC for an order declaring the state law unlawful and preempted by the federal Telecom Act. The FCC refused to declare the state law preempted, although it denounced the Missouri law as a matter of public policy. The Missouri Municipal League then appealed to the Eighth Circuit court, which reversed the FCC decision.



The U.S. Supreme Court has now overturned the Eighth Circuit, allowing the Missouri state law that bars municipalities from offering telecom service to stand. http://www.supremecourtus.gov/