H.B. 632
GENERAL ASSEMBLY OF NORTH CAROLINA
Apr 17, 2023
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH10319-MQa-24
Short Title: Rural Broadband Transformation Act. (Public)
Sponsors: Representative Reives.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO FACILITATE ACCESS TO BROADBAND BY MODERNIZING
3 BROADBAND SPEED BENCHMARKS, PERMITTING NON-DEPLOYMENT ACCESS
4 TO CERTAIN AREAS RECEIVING BROADBAND GRANTS, AND FACILITATING
5 THE INSTALLATION OF BROADBAND INFRASTRUCTURE.
6 The General Assembly of North Carolina enacts:
7
8 PART I. MODERNIZE BROADBAND SPEED BENCHMARKS
9 SECTION 1.1.(a) G.S. 143B-1320 reads as rewritten:
10 "§ 143B-1320. Definitions; scope; exemptions.
11 (a) Definitions. – The following definitions apply in this Article:
12 (1) Broadband service. – Internet access service of at least 25 megabits per second
13 download and at least 3 megabits per second upload, regardless of the
14 technology or medium used to provide the service.
15 (1)(1a) CGIA. – Center for Geographic Information and Analysis.
16 …
17 (16) Separate agency. – Any agency that has maintained responsibility for its
18 information technology personnel, operations, projects, assets, and funding.
19 The agency head shall work with the State CIO to ensure that the agency has
20 all required information technology support.
21 (16a) Served area. – A designated geographic area that presently has access to
22 broadband service. The term may also include individual homes and
23 businesses.
24 (16a)(16c) Significant cybersecurity incident. – A cybersecurity incident that is likely
25 to result in demonstrable harm to the State's security interests, economy,
26 critical infrastructure, or to the public confidence, civil liberties, or public
27 health and safety of the residents of North Carolina. A significant
28 cybersecurity incident is determined by the following factors:
29 …
30 (20) Underserved area. – A designated geographic area that (i) presently does not
31 have broadband service and (ii) has transmission speeds of less than 25
32 megabits per second download and 3 megabits per second upload. The term
33 may also include individual homes and businesses.
34 (21) Unserved area. – A designated geographic area that presently does not have
35 broadband service. The term may also include individual homes and
36 businesses.
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 General Assembly Of North Carolina Session 2023
1 …."
2 SECTION 1.1.(b) G.S. 143B-1373 reads as rewritten:
3 "§ 143B-1373. Growing Rural Economies with Access to Technology (GREAT) program.
4 (a) As used in this section, the following definitions apply:
5 (1) Agriculture. – Activities defined in G.S. 106-581.1.
6 (2) Broadband service. – For the purposes of this section, terrestrially deployed
7 Internet access service with transmission speeds of at least 25 megabits per
8 second (Mbps) download and at least 3 megabits per second upload (25:3).that
9 meets the transmission speed standard for broadband service defined in
10 G.S. 143B-1320(a)(1).
11 …
12 (14) Unserved area. – A designated geographic area that is presently without access
13 to broadband service, as defined in this section, offered by a wireline or fixed
14 wireless provider. As defined in G.S. 143B-1320(a)(21). Areas where a
15 private provider has been designated to receive funds through other State- or
16 federally funded programs designed specifically for broadband deployment
17 shall be considered served if such funding is intended to result in construction
18 of broadband in the area within 18 months or for the duration of the federal
19 funding program for that area, or if the funding recipient is otherwise in good
20 standing with the funding agency's regulations governing the funding
21 program.
22 (15) Unserved household or business. – A household or business that does not
23 presently have access to broadband service, as defined in this subsection.
24 …."
25 SECTION 1.1.(c) G.S. 143B-1374 reads as rewritten:
26 "§ 143B-1374. Satellite-Based Broadband Grant Program.
27 (a) The following definitions apply in this section:
28 (1) Broadband service. – Internet access service, regardless of the technology or
29 medium used to provide the service, with that meets the transmission speeds
30 that are equal to or greater than the requirements for the minimum
31 performance tier speed standard for broadband service defined in
32 G.S. 143B-1320(a)(1) and with latency equal to or lesser than the
33 requirements for low latency, as both metrics are provided by the Federal
34 Communications Commission in Paragraph 39 of the report and order adopted
35 January 30, 2020, and released February 7, 2020.
36 …."
37 SECTION 1.1.(d) G.S. 146-29.2 reads as rewritten:
38 "§ 146-29.2. Lease or interest in real property for communication purposes.
39 (a) The following definitions apply in this section:
40 …
41 (1b) Broadband. – Internet access service with transmission speeds that are equal
42 to or greater than the requirements for basic broadband tier 1 service as
43 defined by the Federal Communications Commission for broadband data
44 gathering and reporting, that meets the transmission speed standard for
45 broadband service defined in G.S. 143B-1320(a)(1), regardless of the
46 technology or medium used to provide the service.
47 …."
48 SECTION 1.1.(e) G.S. 153A-459 reads as rewritten:
49 "§ 153A-459. County broadband acceleration.
50 A county may provide grants to unaffiliated private or nonprofit providers of broadband
51 service, as that term is defined in G.S. 143B-1373(a)(2), G.S. 143B-1320(a)(1), for the purpose
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1 of expanding broadband service in unserved areas in the county. The grants shall be awarded on
2 a technology neutral basis, shall be open to all private or nonprofit providers of broadband
3 service, and may require matching funds by the private or nonprofit providers. A county shall
4 seek and consider requests for proposal from providers prior to awarding a broadband grant and
5 shall use reasonable means to ensure that potential applicants are made aware of the grant;
6 provided, however, a county is not required to seek and consider requests for proposal when
7 providing financial or other support in connection with an application from a private provider for
8 a broadband service grant under G.S. 143B-1373. The county may use general fund revenue as
9 well as State or federal funds for the grants. For purposes of this section, the term "unserved area"
10 has the same meaning as in G.S. 143B-1373(a)(14). For any grants awarded pursuant to this
11 section after the date this section becomes effective, the term "unserved area" shall not include
12 any location where a private provider has been designated to receive funds through State- or
13 federally funded programs designed specifically for broadband service deployment if the
14 recipient of the funding is in good standing with the grantor agency's requirements regarding
15 construction build-out and time lines. Nothing in this section authorizes a county to provide
16 high-speed Internet broadband service."
17 SECTION 1.1.(f) G.S. 160A-340 reads as rewritten:
18 "§ 160A-340. Definitions.
19 The following definitions apply in this Article:
20 (1) City-owned communications service provider. – A city that provides
21 communications service using a communications network, whether directly,
22 indirectly, or through an interlocal agreement or a joint agency.
23 (2) Communications network. – A wired or wireless network for the provision of
24 communications service.
25 (3) Communications service. – The provision of cable, video programming,
26 telecommunications, broadband, or high-speed Internet access service to the
27 public, or any sector of the public, for a fee, regardless of the technology used
28 to deliver the service. The terms "cable service," "telecommunications
29 service," and "video programming service" have the same meanings as in
30 G.S. 105-164.3. The following is not considered the provision of
31 communications service:
32 a. The sharing of data or voice between governmental entities for internal
33 governmental purposes.
34 b. The remote reading or polling of data from utility or parking meters,
35 or the provisioning of energy demand reduction or smart grid services
36 for an electric, water, or sewer system.
37 c. The provision of free services to the public or a subset thereof.
38 (4) High-speed Internet access service. – Internet access service with that meets
39 the transmission speeds that are equal to or greater than the requirements
40 speed standard for basic broadband tier 1 service as defined by the Federal
41 Communications Commission for broadband data gathering and reporting.in
42 G.S. 143B-1320(a)(1).
43 (5) Interlocal agreement. – An agreement between units of local government as
44 authorized by Part 1 of Article 20 of Chapter 160A of the General Statutes.
45 (6) Joint agency. – A joint agency created under Part 1 of Article 20 of Chapter
46 160A of the General Statutes."
47 SECTION 1.2.(a) G.S. 143B-1320, as amended by Section 1.1(a) of this act, reads
48 as rewritten:
49 "§ 143B-1320. Definitions; scope; exemptions.
50 (a) Definitions. – The following definitions apply in this Article:
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1 (1) Broadband service. – Internet access service of at least 25 100 megabits per
2 second download and at least 3 20 megabits per second upload, regardless of
3 the technology or medium used to provide the service.
4 …
5 (20) Underserved area. – A designated geographic area that (i) presently does not
6 have broadband service and (ii) has transmission speeds of less than 25 100
7 megabits per second download and 3 20 megabits per second upload. The term
8 may also include individual homes and businesses.
9 (21) Unserved area. – A designated geographic area that presently does not have
10 broadband service. service or presently has transmission speeds of 25
11 megabits per second download and 3 megabits per second upload, or less, but
12 does not have transmission speeds meeting the definition of broadband
13 service. The term may also include individual homes and businesses.
14 …."
15 SECTION 1.2.(b) This section becomes effective July 1, 2024.
16 SECTION 1.3.(a) There is appropriated from the General Fund to the Department
17 of Information Technology the sum of one hundred thousand dollars ($100,000) in nonrecurring
18 funds for the 2023-2024 fiscal year to update requirements of broadband programs administered
19 by the Department that are impacted by the increased broadband speed benchmarks established
20 in this act and other administrative costs associated with broadband grant programs.
21 SECTION 1.3.(b) This section becomes effective July 1, 2023.
22 SECTION 1.4. Except as otherwise provided, this Part is effective when it becomes
23 law.
24
25 PART II. LEASING RURAL BROADBAND
26 SECTION 2.1.(a) Article 23 of Chapter 153A of the General Statutes is amended by
27 adding a new section to read:
28 "§ 153A-461. Authority to construct and lease broadband infrastructure.
29 (a) A county shall have the authority to install or maintain broadband infrastructure to be
30 leased to a private provider in accordance with G.S. 160A-272.5 if all of the following apply:
31 (1) The lessee is a person operating for profit in this State to provide broadband
32 services to customers.
33 (2) The county has at least one of the following:
34 a. More than four and three quarters percent (4.75%) of the county
35 without a provider of broadband infrastructure according to the
36 Federal Communications Commission.
37 b. A major military installation, as defined in G.S. 143-215.115.
38 (b) A board of county commissioners may utilize ad valorem tax levies authorized under
39 general law, grants, or any other unencumbered funds in exercising authority granted under this
40 section.
41 (c) Prior to beginning installation of broadband infrastructure under this section, a county
42 shall prepare a report, available in the office of the clerk for at least 90 days prior to the date of
43 the public hearing, containing at least all of the following:
44 (1) A business plan for providing broadband infrastructure, including plans for
45 leasing the broadband infrastructure to a private provider.
46 (2) The results of a feasibility study conducted by the county to determine needs
47 and available resources. The feasibility study shall include at least all of the
48 following information:
49 a. Which areas within the county:
50 1. Have one or fewer wireline or fixed wireless private providers
51 of broadband services to residential customers.
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1 2. Have terrestrially deployed internet access service with
2 transmission speeds of 10 megabits per second (Mbps)
3 download and no more than 1 megabit per second upload
4 (10:1).
5 3. Have terrestrially deployed internet access service with
6 transmission speeds of 25 megabits per second (Mbps)
7 download and no more than 3 megabits per second upload
8 (25:3).
9 b. A determination of any areas within the county that State or federal
10 grant moneys have been awarded within the 18 months prior to the
11 date of the feasibility study to provide access to broadband. A county
12 may rely on data from the Broadband Infrastructure Office in the
13 Department of Information Technology in complying with this
14 sub-subdivision.
15 c. A map, or sufficient written description, of the location and type of
16 broadband infrastructure proposed to be installed.
17 d. A review of the county's financials and proposed sources of revenue
18 to fund installation of broadband infrastructure.
19 (d) The board of county commissioners shall hold a public hearing before adopting any
20 resolution at a regular meeting stating its intent to install broadband infrastructure for the purpose
21 of leasing in accordance with G.S. 160A-272.5. Notice of the hearing shall state the date, hour,
22 and place of the public hearing and its subject and shall include the map described in
23 sub-su