ELECTRIC CO-OP RURAL BROADBAND SERVICES.

View NCGA Bill Details2019-2020 Session
House Bill 387 (Public) Filed Tuesday, March 19, 2019
AN ACT REMOVING RESTRICTIONS PROHIBITING ELECTRIC MEMBERSHIP CORPORATIONS AND THEIR SUBSIDIARIES FROM SEEKING FEDERAL GRANT FUNDS TO PROVIDE TELECOMMUNICATIONS AND BROADBAND SERVICES, AUTHORIZING SUCH CORPORATIONS AND THEIR WHOLLY OWNED SUBSIDIARIES TO USE EASEMENTS HELD BY THE CORPORATIONS TO SUPPLY TELECOMMUNICATIONS AND BROADBAND SERVICES, AND PROVIDING FOR THE MANNER IN WHICH CLAIMS RELATED TO THE EXPANDED USE OF EASEMENTS BY SUCH CORPORATIONS SHALL BE RESOLVED.
Intro. by Arp, Szoka, Lewis, Hunter.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (May 7 2019)

SOG comments (2):

Identical bill

Identical to S 310, filed 3/19/19.

Long title change

House committee substitute to the 1st edition changed the long title.  Original title was AN ACT REMOVING RESTRICTIONS PROHIBITING ELECTRIC MEMBERSHIP CORPORATIONS AND THEIR SUBSIDIARIES FROM SEEKING FEDERAL GRANT FUNDS TO PROVIDE TELECOMMUNICATIONS AND BROADBAND SERVICES, AUTHORIZING SUCH CORPORATIONS TO USE EASEMENTS HELD BY THE CORPORATIONS TO SUPPLY TELECOMMUNICATIONS AND BROADBAND SERVICES, AND PROVIDING FOR THE MANNER IN WHICH CLAIMS RELATED TO THE EXPANDED USE OF EASEMENTS BY SUCH CORPORATIONS SHALL BE RESOLVED.

H 387

Bill Summaries:

  • Summary date: Apr 25 2019 - More information

    House committee substitute to the 1st edition makes the following changes. Changes the act's long title. Amends the act's whereas clauses.

    Amends proposed GS 117-18.1(d) to more specifically exempt from the two previously identified conditions the separate business activities of an electric membership corporation that forms, organizes, acquires, holds, disposes of, or operates any interest in a separate business entity that provides or supports high-speed broadband services to one or more households, businesses, or community anchor points in an unserved area (previously did not limit the exemption to such entities that provide or support the services in an unserved area). Defines unserved area to mean a location where inhabitants or businesses do not have access to high-speed broadband services. Makes organizational changes.

    Modifies proposed GS 117-28.1 to now allow any easement owned, held, or otherwise used by an electric membership corporation for the purpose of electrification, as stated in GS 117-10, to also use the corporation, or its wholly owned subsidiary (previously did not specify wholly owned), for the ancillary purpose of supplying high-speed broadband service (previously did not specify ancillary purpose). Adds a limitation requiring that the use cannot require additional construction and must be ancillary to the electrification purposes for which broadband fiber is or was installed. Makes conforming changes to more specifically refer to wholly-owned subsidiaries.


  • Summary date: Mar 19 2019 - More information

    Includes whereas clauses.

    GS 117-18.1 allows electric membership corporations to form, organize, acquire, hold, dispose of, and operate any interest in separate business entities that provide energy services and products, telecommunications services and products, water, and wastewater collection and treatment, so long as those other business entities meet the five specified conditions. Those conditions include: (1) they are not financed with loans or grants from the Rural Utilities Service of the US Department of Agriculture or the USDA or with similar financing from any successor agency and (2) they fully compensate the electric membership corporation for the use of personnel, services, equipment, or tangible and intangible property, the greater of a competitive price or the electric membership corporation's fully distributed costs.  Amends GS 117-18.1 by exempting from these two conditions the separate business activities of an electric membership corporation that forms, organizes, acquires, holds, disposes of, or operates any interest in a separate business entity that provides or supports high-speed broadband services to one or more households, businesses, or community anchor points. 

    Enacts new GS 117-28.1 allowing any easement owned, held, or otherwise used by an electric membership corporation for the purpose in GS 117-10 (allowing formation of a corporation for the purpose of promoting and encouraging the fullest possible use of electric energy in the rural section of the State by making electric energy available to inhabitants of the State at the lowest cost consistent with sound economy and prudent management of the business of such corporations) to also be used by the corporation, or its subsidiary, to supply telecommunications and broadband service. Provides that a class action may not be maintained against an electric membership corporation or its subsidiary in a suit in trespass or inverse condemnation based on a claim of expanded use of an easement. Sets out additional provisions concerning a suit in trespass or inverse condemnation based on a claim of expanded use of an easement brought by an individual property owner. Requires that a property owner's actual damages be fixed at the time of the initial trespass. Upon payment of damages, grants the corporation a permanent easement for the trespass that was the subject of the claim.


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