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Bill

HB 838

DIT Agency Broadband Bill.

2025-2026 Session Introduced by Mary Belk and 16 co-sponsors

Directs DIT to repurpose funds for emergency broadband relief after Hurricane Helene, including satellite service grants (up to 1 year) to rapidly restore unserved areas.

Passed 1st Reading
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WeVote Research Nonpartisan
Bill Summary · HB 838

Summary — HB 838 (DIT Agency Broadband Bill)

Status: Passed 1st Reading (referred to Appropriations, Rules, Calendar & Operations of the House). Introduced Apr 2025. Sponsors: Reps. Johnson, Pickett, K. Hall (primary sponsors).
Scope: Amends North Carolina broadband statutes administered by the Department of Information Technology (DIT) to (1) reconfigure satellite/fixed‑wireless grant authority, (2) allow emergency disaster relief funding for broadband infrastructure, and (3) revise the Broadband Pole Replacement (make‑ready) Program rules.

Main purpose / intent

  • Accelerate restoration and expansion of broadband service — especially in areas affected by Hurricane Helene — by redirecting existing program funds to (a) pay for satellite installation and short‑term satellite service and (b) provide emergency rebuilding/hardening grants to communications providers.
  • Improve and streamline pole access/make‑ready processes and transparency to speed deployment in unserved areas.

Key provisions

Part I — Satellite Broadband Grants
- Repeals G.S. 143B‑1373.2 and G.S. 143B‑1374 (prior statutory provisions for fixed wireless/satellite grants).
- Directs DIT to use Growing Rural Economies with Access to Technology appropriations to award grants to purchase satellite internet installation materials and to pay for satellite internet service for up to one year.
- Grant items and service must be for the grantee’s own use (no redistribution).
- Eligible grantees: State agencies, local governments, internet service providers, and nonprofits.
- DIT must prioritize applicants operating in the 39 counties designated as disaster areas due to Hurricane Helene, and may also prioritize entities providing emergency services, disaster relief, education, or economic development.

Part II — Repurpose Broadband Funding for Disaster Relief
- Authorizes DIT to provide emergency funding to “communications service providers” to rebuild, repair, replace, and harden broadband infrastructure damaged by Hurricane Helene, including reimbursement for eligible costs already incurred.
- Applicants may only recover costs not reimbursed from other sources (e.g., insurance).
- DIT may cap reimbursements based on available funds and the number of applications; priority to restoration of service.
- Authorizes use of up to $50,000,000 from the Broadband Make Ready Accelerator appropriation (S.L. 2021‑180), subject to applicable federal guidelines.
- Allows use of DIT’s emergency procurement authority (09 NCAC 06B .1302) and requires documentation of emergency need.

Part III — Changes to Broadband Pole Replacement / Make‑Ready Program (Section 38.10)
- Reiterates Program purpose: reimburse a portion of eligible pole replacement costs incurred by communications service providers to accelerate broadband to unserved areas.
- Reimbursement framework: up to 50% of eligible pole replacement costs (or $10,000 per pole — text provides both formulations), and similar 50% treatment for undergrounding costs.
- Pole owner obligations:
- Provide a good‑faith estimate of make‑ready costs within 60 days of a complete access application.
- Estimates remain valid for 14 days; make‑ready work conditioned on payment of the estimate.
- Pole owner may treat multiple requests from the same provider as one application if filed within 90 days.
- Utility‑owned poles are exempt from certain subsections.
- Dispute resolution: parties may use G.S. 62‑350 procedures; Utilities Commission to issue a final order within 120 days (extension for good cause and agreement).
- Transparency: DIT must publish quarterly (starting no later than 60 days after funds are appropriated) the number of applications received/processed/rejected (with reasons), each reimbursement amount/status, and estimated remaining program balance.
- Defines/clarifies eligible pole replacement costs and related terms.

Who is affected

  • Department of Information Technology (administration, procurement, reporting).
  • Communications service providers and internet service providers (grant applicants; eligible for disaster reimbursements; must interact with pole owners).
  • Pole owners and utilities (make‑ready obligations; timelines; dispute exposure except for certain utility poles).
  • State/local governments, nonprofits, and disaster‑affected communities (grant eligibility and prioritization).
  • Residents and businesses in unserved or disaster‑affected counties — likely earlier restoration and interim satellite service.

Fiscal and implementation notes

  • Authorizes up to $50 million from an existing appropriation (Broadband Make Ready Accelerator) for disaster relief; DIT may cap reimbursements. Use is subject to federal funding rules where applicable.
  • Satellite grants provide up to one year of service and cover installation materials; funds drawn from Growing Rural Economies appropriation.
  • Requires DIT to document emergency procurements and to publish quarterly program data, adding an administrative burden but increasing transparency.
  • Prohibits double recovery: applicants cannot recover costs already reimbursed from other funding sources.

Timing / procedural highlights

  • Repeals prior statutory grant sections and immediately redirects relevant appropriated funds to the new grant and emergency programs upon enactment and appropriation availability.
  • Makes several near‑term deadlines: 60‑day timelines for estimates and DIT reporting requirements; 14‑day validity for estimates; 120‑day utility commission dispute resolution target.
  • Status (as of filing): Passed first reading and referred to appropriations/rules; for current status check NC General Assembly records.

Overall, HB 838 centralizes disaster‑response broadband funding authority in DIT, provides a one‑year satellite service option for prioritized grantees, creates an emergency reimbursement mechanism (up to $50M from existing broadband funds) for infrastructure repair/hardening, and tightens make‑ready/pole replacement timelines and transparency to accelerate broadband deployment and restoration.

Compiled from official sources — confirm details with the bill’s official record.

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