GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

H D

HOUSE BILL DRH40717-MQa-137

Short Title: Net Neutrality in Procurement.		(Public)
Sponsors:	Representatives G. Martin, John, Meyer, and Beasley (Primary Sponsors).
Referred to:

A BILL TO BE ENTITLED

AN ACT to establish procedures for procurement of broadband services by state and local government entities to support the principles of net neutrality.

The General Assembly of North Carolina enacts:

SECTION 1. Part 4 of Article 15 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B‑1363. Broadband procurement restrictions.

(a) No State agency shall enter into a contract with a broadband provider if that provider engages in any of the following activities:

(1) Management of a broadband network to directly or indirectly favor, prioritize, or prefer certain traffic in exchange for consideration from a third party or to benefit an affiliated entity.

(2) Blocking of lawful content, applications, services, or nonharmful devices.

(3) Impeding or degrading lawful traffic for the purpose of discriminating or favoring certain content, applications, services, or nonharmful devices.

(4) Unreasonable interference with or disadvantaging an end user's ability to select, access, and use the broadband service or lawful Internet content, applications, services, or devices of the end user's choice.

(b) Notwithstanding subsection (a) of this section, a State agency may contract with a broadband provider that engages in the activity described in that subsection if the Secretary determines any of the following:

(1) The provider is the sole provider of broadband service to a particular geographic location relevant to the contract.

(2) The provider engages in the activity described in subsection (a) of this section in furtherance of reasonable network management. "Reasonable network management" includes all of the following criteria:

a. Technical network management necessity.

b. No intent to impact other business processes.

c. Narrow tailoring to achieve a legitimate network management purpose, based upon the particular network structure and the technology of the broadband service.

(3) The provider engages in the activity described in subdivisions (2) through (4) of subsection (a) of this section in furtherance of addressing copyright infringement or other unlawful activity or in assistance of emergency communications, law enforcement, public safety, or national security authorities.

(4) The provider engages in the activity described in subdivision (1) of subsection (a) of this section which results in significant benefit to the public and does not inhibit the openness of the broadband service.

(c) A broadband provider contracting with a State agency shall disclose all information regarding the network management practices and other relevant characteristics and service terms sufficient for the Secretary to verify compliance with this section. This section applies to broadband service provided for fixed or mobile access.

(d) Upon a determination made pursuant to the request of a State agency, the Secretary may exempt all or a portion of a State agency from any of the restrictions contained in this section."

SECTION 2. G.S. 143B‑1350(c) reads as rewritten:

"(c) The Department shall, subject to the provisions of this Part, do all of the following with respect to State information technology procurement:

…

(10) Ensure that the provisions of G.S. 143B‑1363 are met with respect to broadband providers."

SECTION 3. G.S. 143B‑1351(b) reads as rewritten:

"(b) Notwithstanding any other provision of law, local governmental entities may use the information technology programs, services, or contracts offered by the Department, including information technology procurement, in accordance with the statutes, policies, and rules of the Department. Local governmental entities are not required to comply with otherwise applicable competitive bidding requirements when using contracts established by the Department. The Secretary may certify vendor compliance with the requirements of G.S. 143B‑1363 at the request of a local government entity."

SECTION 4. The Department of Information Technology shall establish a telephone number and an online reporting mechanism for members of the public to report suspected violations of the principles of net neutrality in State information technology procurement.

SECTION 5. Notwithstanding G.S. 143C‑5‑2, there is appropriated from the General Fund to the Department of Information Technology the sum of one hundred fifty thousand dollars ($150,000) in recurring funds for the 2018‑2019 fiscal year for the Department to establish one new full‑time equivalent position within the Broadband Infrastructure Office to assist in administering the provisions of this act.

SECTION 6. Section 5 of this act becomes effective July 1, 2018. Section 6 of this act is effective when it becomes law, and the remainder of this act becomes effective January 1, 2019, and applies to contracts entered into or renewed on or after that date.