Provides relative to the Local Government Fair Competition Act. (8/1/26)

SB 209 amends the Local Government Fair Competition Act by expanding the circumstances under which Louisiana local governments may purchase, lease, construct, operate, or equip facilities for broadband and telecommunications services. The bill modifies R.S. 45:844.45(B) to create six specific exemptions from the general prohibition on local government provision of covered services: facilities used for internal local government purposes, facilities serving unserved or underserved areas as defined by federal law, facilities developed through partnerships or cooperative agreements with public or private entities, facilities funded by state or federal grant programs, facilities designed to foster commerce, education, public safety, or economic development, and facilities where local governments lease capacity or grant usage rights to private providers. Additionally, the bill adds ten new legislative declarations of intent to the statute, emphasizing the state's policy to ensure local governments can engage in business practices permitted to private competitors, foster broadband development and expansion to underserved communities, enable intergovernmental collaboration on broadband projects, and enhance competitive positioning of Louisiana local governments. The bill also repeals R.S. 45:844.53(5) and 844.55(D), removing previously existing provisions regarding revenue generation and general fund limitations for bond financing.

The practical effect of this legislation significantly expands opportunities for local governments, municipalities, parishes, and other political subdivisions to invest in telecommunications and broadband infrastructure. Parish and municipal governments can now more readily partner with private entities, participate in federal broadband grant programs such as BEAD and ReConnect, and develop internal broadband systems for governmental operations without triggering the strict prohibitions previously applied under the Fair Competition Act. Private telecommunications providers and cable companies may face increased competition from local government entities operating under these new exemptions, particularly in areas where federal funds support broadband buildout. Grant-funded broadband projects administered by entities like Louisiana's GUMBO program initiative become available to local government applicants without triggering Fair Competition Act restrictions. Public safety agencies, educational institutions, and economic development authorities within local governments gain improved access to broadband infrastructure that can be developed and operated by their home jurisdictions.

The statute operates within the broader framework of R.S. 45:844.40 et seq., which has long restricted local government entry into telecommunications and cable services to protect private sector competitors from public entity competition. The amendments represent a significant policy reversal that aligns Louisiana law with federal broadband development objectives embodied in programs created under the Infrastructure Investment and Jobs Act. The bill preserves core Fair Competition Act protections by maintaining separate accounting requirements under R.S. 45:844.53(4), non-discrimination provisions under R.S. 45:844.53(3), and cross-subsidy prohibitions under R.S. 45:844.53(2), ensuring that local government broadband operations cannot unfairly leverage tax revenues or utility income to undercut private providers. The exemptions for grant-funded and partnership-based projects reflect federal law standards, particularly 47 U.S.C. §1702, which defines unserved and underserved broadband service areas, thereby anchoring Louisiana's local government authority to federal telecommunications policy.