A U.S. district court judge dismissed businesses’ challenge to Maryland’s digital ad tax law Wednesday. U.S. District Court of Maryland Judge Lydia Kay Griggsby granted the state’s motion to dismiss and denied the U.S. Chamber of Commerce’s motion for summary judgment on the remaining count in the complaint. In January, the 4th U.S. Circuit Court of Appeals returned the case to the district court as it disagreed that a decision on the constitutionality of a related pass-through ban was moot (see 2401100060). The Maryland law’s pass-through prohibition “restricts protected speech, to the extent that this statute requires that a covered taxpayer not directly pass on the cost of the tax imposed” by the Digital Advertising Gross Revenues Tax Act, through a separate fee, surcharge or line item, Griggsby wrote. “But Plaintiffs have not met their burden to show that a substantial number of the Pass-Through Prohibition’s applications are unconstitutional, when judged in relation to the statute’s plainly legitimate sweep, to prevail on their First Amendment claim.”

Mississippi will appeal a preliminary injunction of an age-verification law to the 5th U.S. Circuit Court of Appeals, state Attorney General Lynn Fitch (R) said in a Wednesday notice at the U.S. District Court for Southern Mississippi. In addition, the state sought a stay pending appeal. The court put enforcement of the law on hold Monday (see 2407010062). Under the law, parental consent is needed for minors younger than 18 who access social media. The court said NetChoice showed a high likelihood of success in its complaint that raised constitutional concerns with the law. "On appeal, the Attorney General will show that this Court’s injunction cannot be squared with the Act’s targeted scope, with its focus on (and regulation of) non-expressive conduct of covered online platforms, or with precedent on facial challenges," the state said in an accompanying memo. "The Attorney General will also show that the harm to the State from enjoining the Act’s enforcement substantially outweighs any harm to NetChoice and its members from complying with the Act."

A California bill on digital discrimination will advance to the Senate Appropriations Committee after clearing two policy committees Tuesday. Sponsor Assemblymember Mia Bonta (D) vigorously defended the bill including a disparate impact standard at the Communications Committee hearing that day (see 2407020062). AB-2239 would ban digital discrimination as the FCC defines it. “This is a win for disconnected Californians,” Bonta said in an emailed news release Wednesday. “Low-income communities and communities of color are disproportionately disconnected.” The California legislature returns from summer recess Aug. 5.

State commissioners proposed no telecom resolutions for NARUC’s July 14-17 summit in West Palm Beach, Florida, NARUC General Counsel Brad Ramsay said Tuesday.

California video franchising is working fine as is, the California Video & Broadband Association (CalBroadband) said Monday. The state cable group urged the California Public Utilities Commission to “continue with the existing approach and adhere closely to the legislative mandates set forth in” a 2021 law that increased CPUC authority under the state’s Digital Infrastructure and Video Competition Act (DIVCA) to check if state video franchisees are deploying enough broadband. “Since the passage of DIVCA, an industry landscape of primarily locally franchised traditional cable providers has been replaced with a highly competitive, diversified environment that now includes a plethora of non-traditional video service providers,” CalBroadband said.

Massachusetts awarded $45.4 million in grants to extend high-speed internet coverage through the state’s Broadband Infrastructure Gap Networks Program, the Massachusetts Broadband Institute (MBI) announced Tuesday. The recipients, including Verizon, Comcast and Charter Communications, will use the grants, along with more than $40 million in matching funds, to deploy high-speed internet lines to approximately 2,000 locations in 41 Massachusetts communities, MBI said. Gov. Maura Healey (D) thanked “federal partners” and the U.S. Treasury’s Capital Projects Fund, which funded the project. The MBI’s second grant application window opened in May and closed Tuesday (see 2310260040).

Philadelphia renewed its franchise agreement with Verizon for five years, Democratic Mayor Cherelle Parker announced Monday. The agreement allows Verizon to provide cable services to Philadelphia residents and broadband internet to 183 city recreation centers. It was set to expire next month. Verizon will continue paying the city franchise fees of 5% of gross revenue, the maximum assessment under federal law. Also, the company will provide $8 million in grant funding for public, education and governmental (PEG) channels and $500,000 for dark-fiber initiatives.

North Carolina will award $61 million in broadband grants through the American Rescue Plan Act, the state broadband office said Monday. AT&T, Brightspeed and Charter Communications won many of the awards. In California, the Public Utilities Commission said Friday that the agency will vote Aug. 1 on a proposed resolution (T-17833) to approve about $95 million in last-mile grants through its federal funding program. The CPUC estimated that 71% of the locations that would receive service are in low-income areas, while 76% are in disadvantaged areas. The California awardees would include Comcast ($26.6 million), AT&T ($12 million), Frontier Communications ($2 million), the Golden State Connect Authority ($7 million) and the Fort Bidwell Indian community ($23.9 million).

An AT&T-backed California bill that reshapes rules for seeking relief from carrier of last resort (COLR) obligation won't move forward, the carrier confirmed Monday. A revised Senate Communications Committee agenda for Tuesday’s meeting said the bill was pulled from the hearing. AT&T had turned its attention to trying to pass AB-2797 in the California legislature to change COLR rules after the California Public Utilities Commission denied the company relief from the obligation last month (see 2406200065). “While we are disappointed that AB 2797 will not be voted on, we are committed to working with state lawmakers, community groups and stakeholders to find a path forward that keeps customers connected, modernizes California’s communications network, and ensures no customer will be left without voice and 911 services,” AT&T California President Marc Blakeman said in an emailed statement. The bill’s demise is a win for California phone customers, said The Utility Reform Network Telecom Policy Director Regina Costa: “AT&T retreated as a result of outrage from thousands of Californians and the organizations who oppose the bill because AT&T's plan is a threat to universal service and public safety.” Comments are due this fall on a CPUC rulemaking to consider updating COLR rules for modern technology. “The bill wasn’t about modernizing AT&T’s network,” Costa said. “It was about giving AT&T the power to walk away from providing any kind of service wherever it chose.”

Mediacom, Lumen’s CenturyLink and MidAmerican Energy will pay $50,000 in civil penalties each as part of an Iowa settlement related to a state digging law, Iowa Attorney General Brenna Bird (R) said Friday. The settlement resolves an Iowa investigation into complaints about untimely and inaccurate locating of underground facilities. While Iowa found violations of its One Call law, “all three companies have also made drastic improvements in their locating and marking performance and compliance,” the AG office said. Bird called the settlement “a major step in helping us to protect Iowans and underground infrastructure.” CenturyLink worked with the Iowa AG office for two years addressing concerns, a Lumen spokesperson said: "While we are disappointed with the decision to pursue this action, we will continue to work together to improve Iowa's One Call system."