Bill Summary for H 387 (2019-2020)

Summary date: 

Apr 25 2019

Bill Information:

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.

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Bill summary

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.

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