California refuses to drop broadband laws for federal funds

California takes the money but not the strings

California is accepting one point four two billion dollars in broadband grant funding from the Trump administration but refusing its demand to stop enforcing state net neutrality and telecom regulations.

The federal condition: no state telecom laws

The National Telecommunications and Information Administration decided that states must agree not to enforce rate regulation or net neutrality rules on internet service providers receiving money from the forty two billion dollar Broadband Equity, Access…

What California's money will do

California is slated to spend one point four two billion dollars to deploy broadband to two hundred seventy thousand five hundred seventy one locations and may ultimately receive up to one point eight six billion…

California's constitutional argument

State officials argue that California should be able to obtain the money and keep enforcing its laws because the Trump administration's demand would violate the state's constitutional rights.

The CPUC's carefully worded response

The California Public Utilities Commission told the Trump administration it cannot be bound by unconstitutional terms and expressly does not waive any arguments or challenges concerning the legality of the condition.

“The CPUC cannot be bound by any terms or conditions that are unconstitutional or not authorized by law and it expressly does not waive or concede any arguments or challenges concerning the legality, interpretation, or applicability of any term or condition.”

Other California agencies can still enforce

The CPUC letter suggested that the state attorney general would maintain the right to punish misbehaving internet providers, as the CPUC cannot prevent other California agencies from enforcing state laws.

California will hold the money hostage

California will not distribute any funding to internet service providers until the state and federal agency sort out their differences, according to CPUC President John Reynolds.

The NTIA is not budging

The National Telecommunications and Information Administration told Ars that the terms and conditions of the award constitute the entire agreement and no part of the CPUC's concerns is incorporated into the award.

Public Knowledge calls it preposterous

Consumer advocacy group Public Knowledge said the Trump administration's demand to preempt state laws is brazen and meritless and has no basis in the Infrastructure Investment and Jobs Act.

“This administration's preposterous demand that industry be given a blanket waiver from affordability requirements, net neutrality and privacy protections, and any other commitments to connect and serve Americans has no basis in the Infrastructure Investment and Jobs Act.”

What the BEAD rules actually say

Section fifty of the BEAD rules says states shall not enforce any law regulating rates, terms, and conditions of broadband service or imposing net neutrality rules on providers receiving funds, while they have any subgrant…

ISPs could get fourteen year exemption

Internet service providers obtaining BEAD funding could be exempt from net neutrality laws prohibiting blocking content, throttling speeds, imposing data caps, or engaging in paid prioritization for up to fourteen years.

California's net neutrality law is unwaivable

California's net neutrality law expressly provides that any waiver of its provisions is contrary to public policy and shall be unenforceable and void, according to CPUC President John Reynolds.

The throttling law that started it all

California has a law prohibiting mobile providers from throttling first responders during emergencies, passed in two thousand nineteen after Verizon throttled an unlimited data plan used by Santa Clara County firefighters during a wildfire.

California's strong legal arguments

Stanford Law professor Barbara van Schewick said California has strong arguments that the condition is illegal because Congress designed BEAD to ensure funded providers follow the law and comply with all applicable state and local…

The real test is enforcement

Van Schewick said the letter is just an initial step and the real test comes when a BEAD provider blocks a competitor's app, throttles firefighters, or walks away from a price commitment and California must…

“The real test comes the first time a BEAD provider blocks a competitor's app, throttles firefighters, or walks away from a price commitment.”