ACLP Statement to the Louisiana Senate Regarding Proposed Changes to the State’s Fair Competition Law

Today, the ACLP at New York Law School submitted a statement to the Louisiana Senate Commerce Committee regarding Senate Bill 209. The statement is available here: ACLP - Statement re SB 209 - April 8 2026.

SB 209 proposes several fundamental changes to the Louisiana Local Government Fair Competition Act, which has governed municipal broadband projects in the state for over two decades. The Act has long sought to preserve a level playing field among public and private ISPs. However, SB 209 proposes to roll back a variety of safeguards that have maintained a level playing field between ISPs of all ilk. In particular, SB 209 would eliminate the prohibition on cross-subsidization, meaning that a municipal electric utility that operates a retail broadband network would be able to draw unlimited funds from its captive base of electric ratepayers to prop up a struggling broadband offering. The ACLP’s statement to the Committee details at length why removing this prohibition and allowing cross-subsidization would irreparably harm consumer welfare by undermining the organic market forces that have delivered more choice, faster speeds, and lower prices to customers in the state.

SB 209 would also remove the requirement that the financials for a municipal broadband network be made available for audit. This removes key transparency and accountability mechanisms.

Taken together, these proposed changes seem to stem from the ongoing financial struggles of Louisiana’s only municipal broadband network, which is owned and operated by Lafayette Utilities System (LUS). Several years ago, LUS was found to have unlawfully subsidized its broadband network with proceeds from its electric division (see our analysis of that unfortunate series of events here: LUS Fiber Struggles to Shake Shadow of Corruption, Mismanagement).

The ACLP statement highlights the many downsides of removing the prohibition on cross-subsidization, underscores the importance of maintaining strong transparency and accountability mechanisms, and reiterates the importance of states maintaining laws and policies that assure a level playing field for all ISPs.