Local Governments Run Amok? A Guide for State Officials Considering Local Preemption

Abstract

The Mississippi laws preempting local control of minimum wages and Transportation Network Companies (TNCs) reasserted the authority of state government to overrule local regulations. This raises the question: What circumstances should motivate the use of state authority to interfere with local rule-making? This chapter will provide a framework to guide state officials who are considering local preemption. We will use this framework to analyze four issues that are relevant in Mississippi: 1. The sharing economy; 2. Labor market regulations; 3. Land use regulations; and 4. Tax and expenditure limits. We conclude that state preemption is warranted in situations where local governments enact non-general policies interfering with free exchange via price controls or similar restrictions.