GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	3 

SENATE BILL 1343*
Information Technology Committee Substitute Adopted 6/7/00
Third Edition Engrossed 6/13/00

Short Title:  Rural Internet Access Authority.	(Public)

─────────────────────────────────────── 
Sponsors:

─────────────────────────────────────── 
Referred to:  

─────────────────────────────────────── 

May 18, 2000

A BILL TO BE ENTITLED
AN ACT TO CREATE THE NORTH CAROLINA RURAL INTERNET ACCESS AUTHORITY.
The General Assembly of North Carolina enacts:
Section 1.  Article 10 of Chapter 143B of the General Statutes is amended by adding a new Part to read:
"Part 2E.  North Carolina Rural Internet Access Authority.
"§ 143B-437.40.  Short title and intent.
This Part is the 'North Carolina Rural Internet Access Authority Act.' The General Assembly finds as follows:
(1)	Access to computers and the Internet, along with the ability to effectively use these technologies, are becoming increasingly important for full participation in America's economic, political, and social life.
(2)	Affordable, high-speed Internet access is a key competitive factor for economic development and quality of life in the New Economy of the global marketplace.
(3)	In the digital age, universal connectivity at affordable prices is a necessity for business transactions, education and training, health care, government services, and the democratic process.
(4)	Unequal access to computer technology and Internet connectivity by income, educational level and/or geography could deepen and reinforce the divisions that exist in our society.
(5)	The intent of the Rural Internet Access Authority is to close this digital divide for the citizens of North Carolina.
"§ 143B-437.41.  Definitions.
The following definitions apply in this Part:
(1)	Authority. – The North Carolina Rural Internet Access Authority.
(2)	Commission. – The governing body of the Authority.
(3)	High-speed broadband Internet access. – Internet access with transmission speeds of at least 128 kilobits per second for residential customers and at least 256 kilobits per second for business customers.
(4)	Rural county. – A county with a density of fewer than 200 people per square mile based on the 1990 United States decennial census.
(5)	Rural partnership. – Any of the following:
a.	The Western North Carolina Regional Economic Development Commission created in G.S. 158-8.1.
b.	The Northeastern North Carolina Regional Economic Development Commission created in G.S. 158-8.2.
c.	The Southeastern North Carolina Regional Economic Development Commission created in G.S. 158-8.3.
d.	The Global TransPark Development Commission created in G.S. 158-33.
"§ 143B-437.42.  Creation of Authority and Commission.
(a)	Creation. – The North Carolina Rural Internet Access Authority is created within the Department of Commerce.  The purpose of the Authority is to manage, oversee, and monitor efforts to provide rural counties with high-speed broadband Internet access.
The Authority is located within the Department of Commerce, but exercises all of its powers, including the power to employ, contract with, direct, and supervise all personnel and consultants, independently of the Secretary of Commerce and, notwithstanding any other provision of law, is subject to the direction and supervision of the Secretary of Commerce only with respect to the management functions of coordinating and reporting.  These functions of the Secretary of Commerce are ministerial and shall be performed only pursuant to the direction and policy of the Commission.  The State Auditor has audit oversight of the Authority pursuant to Article 5A of Chapter 147 of the General Statutes.
(b)	Commission. – The Authority is governed by a Commission that consists of the following 21 members:
(1)	Six members appointed by the Governor, as follows:
a.	One named from the large incumbent local telephone exchange companies in North Carolina.
b.	One from rural telephone cooperatives.
c.	One from competing local telephone exchange companies certified by the North Carolina Utilities Commission.
d.	One from Internet service providers doing business in North Carolina.
e.	Two representing business and education or other users from rural counties.
(2)	Six members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121, as follows:
a.	One named from the large incumbent local telephone exchange companies in North Carolina.
b.	One from commercial wireless communications carriers in North Carolina.
c.	One representing MCNC.
d.	One from rural partnerships.
e.	Two representing business and education or other users from rural counties.
(3)	Six members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121, as follows:
a.	One named from the large incumbent local telephone exchange companies in North Carolina.
b.	One from small independent telephone companies.
c.	One from cable television companies doing business in rural counties.
d.	One from rural partnerships.
e.	Two representing business and education or other users from rural counties.
(4)	The State's Chief Information Officer, who shall serve ex officio.
(5)	Chair of the North Carolina Rural Economic Development Center, who shall serve ex officio.
(6)	The Secretary of Commerce, who shall serve ex officio.
(c)	Oath. – As the holder of an office, each member of the Commission must take the oath required by Section 7 of Article VI of the North Carolina Constitution before assuming the duties of a Commission member.
(d)	Terms. – The term of office of a member of the Commission is three years.
(e)	Chair. – The Governor shall designate one of the members appointed by the Governor as the Chair of the Commission. The Governor shall convene the first meeting of the Commission.
(f)	Vacancies. – All members of the Commission shall remain in office until their successors are appointed and qualify.  A vacancy in an appointment made by the Governor shall be filled by the Governor for the remainder of the unexpired term. A vacancy in an appointment made by the General Assembly shall be filled in accordance with G.S. 120-122.  A person appointed to fill a vacancy must qualify in the same manner as a person appointed for a full term.
(g)	Removal of Commission Members. – The Governor may remove any member of the Commission for misfeasance, malfeasance, or nonfeasance in accordance with G.S. 143B-13(d).  The Governor or the person who appointed a member may remove the member for using improper influence in accordance with G.S. 143B-13(c).
(h)	Compensation of the Commission. – No part of the revenues or assets of the Authority shall inure to the benefit of or be distributable to the members of the Commission or officers or other private persons. The members of the Commission shall receive no salary for their services but may receive per diem and allowances in accordance with G.S. 138-5.
(i)	Staff. – The Rural Economic Development Center, Inc., shall provide administrative and professional staff support for the Authority under contract.
"§ 143B-437.43.  Goals and duties of the Authority.
(a)	Duties. – The Authority shall set specific targets and milestones to achieve the goals and objectives set out in subsection (b) of this section.  The Authority shall coordinate activities, conduct or sponsor research, and recommend and advocate actions, including regulatory and legislative actions, to achieve its goals and objectives.  The Authority shall also propose funding that may be needed from the Rural Redevelopment Authority established in Part 2D of this Article and from other appropriate sources for incentives for the private sector to make necessary investments to achieve the Authority's goals and objectives.
(b)	Goals. – The goals and objectives of the Authority are:
(1)	Local dial-up Internet access provided from every telephone exchange within one year.
(2)	High-speed Internet access available to every citizen of North Carolina within three years, at prices in rural counties that are comparable to prices in urban North Carolina.
(3)	Two model Telework Centers in either enterprise tier one or enterprise tier two area established  by January 1, 2002. To the extent practicable, the Centers should be established in existing facilities.
(4)	Significant increases in ownership of computers, related web devices, and Internet subscriptions promoted throughout North Carolina.
(5)	Accurate, current, and complete information provided through the Internet to citizens about the availability of present telecommunications and Internet services with periodic updates on the future deployment of new telecommunications and Internet services.
(6)	Development of government Internet applications promoted to make citizen interactions with government agencies and services easier and more convenient and to facilitate the delivery of more comprehensive programs including training, education, and health care.
(7)	Open technology approaches employed to encourage all potential providers to participate in the implementation of high-speed Internet access with no technology bias.
(c)	Reports. – The Authority must submit quarterly reports to the Governor, the Joint Select Committee on Information Technology, and the Joint Legislative Commission on Governmental Operations.  The reports must summarize the Authority's activities during the quarter and contain any information about the Authority's activities that is requested by the Governor, the Committee, or the Commission.
"§ 143B-437.44. Powers of Authority.
The Authority shall have all necessary powers to carry out its duties including, but not limited to, accepting funds offered to it for accomplishing its duties and performing its administrative operations.  The Authority may also advocate before the General Assembly draft legislation to further the goals of rural Internet access."
Section 2.  G.S. 120-123 is amended by adding a new subdivision to read:
"(70)	The Rural Internet Access Authority created in Part 2E of Article 10 of Chapter 143B of the General Statutes."
Section 3.  This act does not obligate the General Assembly to appropriate funds.
Section 4.  This act is effective when it becomes law.  The Rural Internet Access Authority created in this act is dissolved effective three years after the first meeting of its Commission.  This act is repealed effective when the Rural Internet Access Authority is dissolved.