A BILL TO BE ENTITLED
AN ACT to create the "e‑NC" authority to continue the work of the 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 2F. e-NC Initiative.
"§ 143B-437.44.  Legislative findings.
The General Assembly finds that:
(1)	An organized effort must continue to ensure that the citizens of North Carolina keep pace with the ever faster technological changes in telecommunications and information networks in order to assure the economic competitiveness of North Carolina with special focus on rural and urban distressed areas.
(2)	Access to computers and the Internet, along with the ability to effectively use these technologies, continues to be increasingly important for full participation in America's economic, political, and social life.
(3)	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.
(4)	High-speed Internet access and the broadband applications it delivers are the necessary platforms that will support development of emerging technology-based sectors of great economic promise, for example, biotechnology and nanotechnology, as well as the continued competitiveness of traditional industries.
(5)	In this digital economy, universal connectivity at affordable prices is a necessity for business operations, education and training, health care, homeland security and crisis management, government services, and the democratic process.
(6)	Unequal access to computer technology and Internet connectivity by income, educational level, or geography will deepen and reinforce the divisions that exist in our society.
(7)	The intent of the e-NC Authority is to continue to close this digital divide and to continue to work to see that the information infrastructure of North Carolina remains in a competitive condition to enhance the economy for the citizens of North Carolina.
"§ 143B-437.45. Definitions.
The following definitions apply in this Part:
(1)	Authority. – The  e-NC Authority.
(2)	Commission. – The governing body of the Authority.
(3)	High-speed broadband Internet access. – Internet access with transmission speeds of at least 384 kilobits per second symmetrical for residential and business customers.
(4)	Rural county. – A county with a density of fewer than 250 people per square mile based on the 2000 United States decennial census.
(5)	Urban distressed areas. – Areas where at least one of the following requirements is met: (i) more than ten percent (10%) of children enrolled in public schools meet the requirements for the Food Stamp Program of the United States Department of Agriculture, (ii) ten percent (10%) of the citizens meet the TANF guidelines of the United States Department of Health and Human Services, or (iii) twenty-five percent (25%) of the children in the public school district meet the requirements for a federal government-sponsored free lunch.
(6)	Regional Partnerships. – As defined in G.S. 143B-437.21(6).
"§ 143B-437.46. e-NC Authority.
(a)	Creation. – The e-NC Authority is created within the Department of Commerce for organizational and budgetary purposes only, and the Commission shall exercise all of its statutory authority under this Part independent of the control of the Department of Commerce. The functions of the Secretary of Commerce are ministerial and shall be performed only pursuant to the direction and policy of the Commission.
The purpose of the Authority is to promote, manage, oversee, and monitor efforts to provide rural counties and distressed urban areas with high-speed broadband Internet access. The Authority shall also serve as the central rural and urban distressed areas Internet access policy planning body of the State and shall communicate and coordinate with State, regional, and local agencies and private entities in order to implement a coordinated Internet access policy for the citizens of North Carolina.
(b)	Commission. – The Authority shall be governed by a Commission. The Commission shall consist of 15 voting members, as follows:
(1)	Four members appointed by the Governor. The Association of North Carolina Electric Cooperatives, the North Carolina Telephone Cooperatives, and the North Carolina Internet Service Providers Organization shall each nominate one appointee.
(2)	Four members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121. The North Carolina Association of County Commissioners and the North Carolina Electronic and Information Technologies Association shall each nominate one of those recommended. At least one appointee shall represent the interests of rural counties.
(3)	Four members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121. The North Carolina League of Municipalities and the North Carolina Telephone Association shall each nominate one of those recommended. At least one appointee shall represent the interests of distressed urban areas.
(4)	Three ex officio, voting members, including the Secretary of Commerce, the State Chief Information Officer, and the President of the North Carolina Rural Economic Development Center, Inc.
(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; Commencement; Staggering. – Except as provided in subsection (f) of this section, all terms of office shall commence on January 1, 2004. The appointing officers shall designate one-half of their appointees to serve one-year terms. Members may serve up to four consecutive one-year terms. The appointing officers shall designate their remaining appointees to serve three-year terms. Members may serve up to two consecutive three-year terms.
(e)	Chair. – The Governor shall designate one of the members appointed by the Governor as the Chair 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 North Carolina Rural Economic Development Center, Inc., shall provide administrative and professional staff support for the Authority under contract.
(j)	Conflicts of Interest. – Members of the Authority shall comply with the provisions of G.S. 14-234 prohibiting conflicts of interest. In addition, if any member, officer, or employee of the Authority is interested either directly or indirectly, or is an officer or employee of or has an ownership interest in any firm or corporation, not including units of local government, interested directly or indirectly, in any contract with the Authority, the member, officer, or employee must disclose the interest to the Commission, which must set forth the disclosure in the minutes of the Commission. The member, officer, or employee having an interest may not participate on behalf of the Authority in the authorization of any contract.
"§ 143B-437.47. Powers, duties, and goals of the Authority.
(a)	Powers. – The Authority shall have the following powers:
(1)	To employ, contract with, direct, and supervise all personnel and consultants.
(2)	To apply for, accept, and utilize grants, contributions, and appropriations in order to carry out its duties and goals as defined in this Part.
(3)	To enter into contracts and to provide support and assistance to local governments, nonprofit entities, for-profit entities, Regional Partnerships, and Business and Technology Centers in carrying out its duties and goals under this Part.
(4)	To operate telecommunications entities in areas where the Commission determines no alternatives exist. 
(5)	To review and recommend changes in all laws, rules, programs, and policies of this State or any agency or subdivision thereof to further the goals of high-speed broadband Internet access for rural counties and urban distressed areas.
(b)	Duties. – The Authority shall have the following duties:
(1)	To develop and recommend to the Governor and to the General Assembly a plan to provide rural counties and urban distressed areas with high-speed broadband Internet access.
(2)	To propose funding from other appropriate sources for incentives for the private sector to make necessary investment to achieve the Authority's goals and objectives.
(3)	To set specific targets and milestones to achieve the goals and objectives set out in subsection (c) of this section.
(c)	Goals. – The principles, goals, and objectives of the Authority are:
(1)	To monitor and safeguard the investments made by the Rural Internet Access Authority in carrying out its functions under S.L. 2000-149.
(2)	To provide leadership, coordination, and support for grassroots efforts targeting technology-based economic development.
(3)	To provide leadership, coordination, and support for telecommunications policy assessment.
(4)	To develop collaborative technology projects, programs, and activities that reflect comprehensive efforts to develop technology-based economic development initiatives that utilize high-speed broadband Internet as a platform.
(5)	To provide for replicable and scalable Internet applications that will assist the communities of North Carolina to remain competitive with respect to knowledge of, and use of, as well as affordable access to the high-speed Internet. Continue to focus on significant increases in ownership of computers, related web devices, and Internet subscriptions throughout North Carolina.
(6)	To attract and coordinate funding of federal, foundation, and corporate dollars for regional and statewide technology initiatives and assist local government, including e-communities (the 85 rural counties and the Eastern Band of the Cherokee who have completed the 
e-communities process), in obtaining grants to further enhance their technology infrastructure.
(7)	To continue to work to see that high-speed broadband Internet access is made and remains available to every citizen of North Carolina by 2005, at affordable prices in rural counties and urban distressed areas.
(8)	To work to create additional Business and Technology Centers in Tier 1 or Tier 2 areas by 2004. To the extent practicable, the Centers should be established in existing facilities.
(9)	To maintain 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 broadband Internet services, as well as information on public access sites and digital literacy training programs in North Carolina.
(10)	To facilitate and encourage development of government Internet applications promoting citizen interactions with government agencies making delivery of services easier and more convenient and to facilitate the delivery of more comprehensive programs, including training, education, and health care.
(11)	To open technology approaches employed to encourage all potential providers to participate in the implementation of high-speed Internet access without technology bias.
(12)	To coordinate activities, conduct and sponsor research, and recommend and advocate actions, including regulatory and legislative actions to achieve its goals and objectives.
(d)	Limitations. – The Authority shall not have the power of eminent domain or the power to levy any tax.
(e)	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."
SECTION 2.  G.S. 120‑123 is amended by adding a new subdivision to read:
"(71)	The e-NC Authority created in Part 2F of Article 10 of Chapter 143B of the General Statutes."
SECTION 3.  Section 5 of S.L. 2000‑149 reads as rewritten:
"SECTION 5.  This act is effective when it becomes law.  The North Carolina Rural Internet Access Authority created in this act is dissolved effective December 31, 2003.This act is repealed effective December 31, 2003.  Part 2E of Article 10 of Chapter 143B of the General Statutes and G.S. 120‑123(71), as enacted by this act, are repealed effective December 31, 2003."
SECTION 4.  Sections 1 and 2 of this act become effective December 31, 2003, with the e‑NC Authority hereby designated as the successor entity of the Rural Internet Access Authority, which is set to expire and dissolve on that date, as provided by Section 5 of S.L. 2000‑149. The remainder of this act is effective when it becomes law.