The state of Tennessee has filed suit against the Federal Communications Commission, arguing that its recent move to pre-empt a state law regarding municipal broadband networks was unlawful.

"The FCC has unlawfully inserted itself between the state of Tennessee and the state's own political subdivisions," according to the suit, which was filed in a U.S. appeals court.

At a February hearing that was largely dominated by the commission's net neutrality vote, the FCC also voted to pre-empt two state laws that restrict the deployment of city-owned broadband networks.

The agency approved two petitions filed by officials from Tennessee and North Carolina, who wanted to expand municipal networks in Chattanooga and Wilson, respectively.

In Tennessee, the Electric Power Board (EPB) in Chattanooga provides gigabit fiber Internet, voice, and video, as well as smart grid services. But prior to last month's vote, EPB could not expand into neighboring areas, because state law said it could only provide service in its electric service territory.

With its 3-2 vote, however, the FCC struck down that law because "when local leaders have their hands tied by bureaucratic, state red tape, local business and residents are the ones who suffer the consequences," FCC Chairman Tom Wheeler said at the time.

"By removing barriers to broadband access, we can help ensure digital equity and improve quality of life for our neighbors in Southeast Tennessee and beyond," Chattanooga Mayor Andy Berke also said last month.

Tennessee claims the move is unconstitutional, is beyond the FCC's authority, an abuse of power, and against the law. It wants the court to vacate the FCC's ruling and provide monetary relief, if applicable.

"We are confident that our decision to pre-empt laws in two states that prevented community broadband providers from meeting the needs and demands of local consumers will withstand judicial scrutiny," the FCC said in a Wednesday statement.

The FCC's action only affects the laws in Tennessee and North Carolina. There are approximately 21 states with laws that restrict city-owned broadband networks right now; if the other 19 states want the FCC to intervene, they have to file their own complaints with the agency, like Tennessee and North Carolina did.

According to the FCC, a state can reject a city's request to provide broadband service. But once they are approved to enter the market, the state cannot impose regulatory burdens that would prevent the expansion of a city network.

The FCC, meanwhile, is also now facing lawsuits over its net neutrality proceeding. USTelecom, which represents major telcos, as well as Alamo Broadband, sued the commission over its move to reclassify broadband as at telecom service. For more on that, see Broadband Mafia Still Doesn't Get It.