A BILL TO BE ENTITLED
AN ACT TO ENSURE THAT A LOCAL GOVERNMENT THAT COMPETES WITH PRIVATE COMPANIES IN PROVIDING COMMUNICATION SERVICES HAS THE SUPPORT OF ITS CITIZENS IN FINANCING THOSE SERVICES AND TO CONTINUE THE REVENUE LAWS STUDY COMMITTEE'S REVIEW OF THE TAX AND ECONOMIC DEVELOPMENT IMPACTS OF LOCAL GOVERNMENT OWNED AND OPERATED COMMUNICATION SERVICES.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 160A‑20 is amended by adding a new subsection to read:
"(e2)	Communication System. – This section does not apply to an external communication system.  A unit of local government may not enter into a contract under this section to purchase, or finance or refinance the purchase of, property for use in an external communication system or to finance or refinance the construction or repair of fixtures or improvements for use in an external communication system. A communication system is a system that provides broadband service or other Internet access service, cable service, telecommunications service, video programming service, or a combination of these services. The terms "cable service," "telecommunications service," and "video programming service" have the same meanings as in G.S. 105‑164.3. A communication system is external if it provides services to a person who is not a unit of local government or a part of that unit."
SECTION 2.  Sections 7.1 and 7.2 of Chapter 574 of the 2009 Session Laws authorize the Revenue Laws Study Committee to study local government owned and operated communication services and to report its findings to the 2010 Session of the 2009 General Assembly.  The Revenue Laws Study Committee may continue the study authorized by those sections and may report its findings and any recommended legislation to the 2011 General Assembly.
SECTION 3.  This act is effective when it becomes law.  This act does not affect contracts entered into under G.S. 160A‑20 before the effective date of this act.