Part I

Adds defined terms broadband service (Internet access service of at least 25 megabits per second download and at least 3 megabits per second upload, regardless of the technology or medium used to provide the service), served area (a designated geographic area that presently has access to broadband service; may also include individual homes and businesses), underserved area (a designated geographic area that (1) presently does not have broadband service and (2) has transmission speeds of less than 25 megabits per second download and 3 megabits per second upload; may also include individual homes and businesses), and unserved area (a designated geographic area that presently does not have broadband service; may also include individual homes and businesses) to definitions provision of GS 143B-1320 (pertaining to the Department of Information Technology). Makes conforming changes to definitions in the Growing Rural Economies with Access to Technology (GREAT) Program (GS 143B-1373), the Satellite-Based Broadband Grant Program (GS 143B-1374), county broadband acceleration (GS 153A-459), GS 160A-340 (definitions provision of statute pertaining to communication services by cities), and GS 146-29.2 (pertaining to lease or interests in real property for communication purposes of state land).

Effective July 1, 2024, further amends the definitions in GS 143B-1320 as amended by the act. Defines broadband service to mean internet access service of at least 100 megabits per second download and at least 20 megabits per second upload. Defines underserved area as a designated geographic area that (1) presently does not have broadband service and (2) has transmission speeds of less than 100 megabits per second download and 20 megabits per second upload. Defines unserved area as a designated geographic area that presently does not have broadband service or presently has transmission speeds of 25 megabits per second download and 3 megabits per second upload, or less, but does not have transmission speeds meeting the definition of broadband service. 

Appropriates $100,000 from the General Fund to the Department of Information Technology (Department) in nonrecurring funds for the 2023-24 fiscal year to update requirements of broadband programs administered by the Department that are impacted by the increased broadband speed benchmarks established in the act and other administrative costs associated with broadband grant programs. Effective July 1, 2023.

Part II

Enacts new GS 153A-461 giving counties the authority to install or maintain broadband infrastructure to be leased to a private provider if: (1) the lessee is a person operating for profit in this state to provide broadband services to customers and (2) the county has at least one of the following: more than 4.75% of the county is without a provider of broadband infrastructure, or a major military installation. Enacts new GS 160A-499.6 giving cities the authority to install or maintain broadband infrastructure to be leased to a private provider if: (1) the city has at least 60% of its population lying in one of the counties in GS 153A-461(a)(2) (has more than four 4.75% of the county without a provider of broadband infrastructure, or a major military installation) and (2) the lessee is a person operating for profit in this state to provide broadband services to customers. Both statutes contain the following provisions. Defines broadband infrastructure as wireline or wireless infrastructure capable of providing terrestrially deployed Internet access service with transmission speeds of at least 25 megabits per second (Mbps) download and at least three megabits per second upload (25:3) or as defined by the Federal Communications Commission, whichever speeds are faster. Allows using ad valorem taxes or any other unencumbered funds in exercising the authority granted under these statutes. Requires holding a public hearing before adopting any resolution at a regular meeting stating intent to install broadband infrastructure for the purpose of leasing in accordance with the specified statute. Sets out requirements for the notice of the hearing, including requiring that it be published at least once, no less than one week before the hearing date. Requires the county/city to prepare a report before beginning installation of broadband infrastructure, to be available in the clerk's office for at least 90 days before the public hearing, that contains: (1) a business plan for providing broadband infrastructure; (2) results of a feasibility study to determine needs and available resources and information specified in the statute. Specifies that the statutes do not grant authority, and must not be construed to do so, to a county/city to use broadband infrastructure constructed under these statutes to provide communications services as defined in under the specified statute or in accordance with Article 16A of GS Chapter 160A (Provision of Communications Service by Cities).

Amends GS 153A-149 and GS 160A-209 to allow levying property taxes to construct wireline and wireless infrastructure. Effective for taxable years beginning on or after July 1, 2023.

Amends GS 159-81 to allow broadband infrastructure for the purpose of leasing under new GS 160A-272.5 to be revenue bond projects.

Enacts new GS 160A-272.5 governing the lease of broadband infrastructure installed or maintained in accordance with GS 153A-461 or GS 160A-499.6 to a private provider for delivery of service to customers. Allows the lease to be for up to 25 years. Requires property to be leased under a resolution of the governing board that authorizes the execution of the lease agreement adopted at a regular governing board meeting; requires 30 days' notice. Requires all leases to meet the following requirements: (1) the lease must be entered into on a technology neutral basis, (2) the lease must be open to similarly situated private providers on comparable terms and conditions, and (3) requests for proposals must be solicited by the governing board before adopting the resolution authorizing the execution of the lease--sets out additional requirements for the requests for proposals and the related advertisements. Specifies that in determining the term of a proposed lease, periods that may be added to the original term by options to renew or extend must be included. Applies to leases entered into on or after October 1, 2023.

Amends GS 160A-321 to provide that as to transfers to another governmental entity, a city-owned public enterprise must not be discontinued in its entirety (was, discontinued), unless the proposal to discontinue in its entirety is first submitted to a vote and approved by a majority of voters.

Amends GS 160A-340.2 by prohibiting broadband infrastructure constructed by a city for the purpose of leasing under new GS 160A-272.5 from being used to provide communication services under Article 16A (Provision of Communications Service by Cities) of GS Chapter 160A.

Effective October 1, 2023, except as otherwise provided.

Part III

Amends GS 136-18 to give the Department of Transportation (DOT) authority to construct conduits for telecommunications cables within the State right-of-way, with construction borne through the leasing of the conduit to private telecommunications companies, provided that the construction and leasing is not otherwise prohibited by any other federal or State law. Creates the Conduit Installation Account in the Information Technology Fund to receive revenues from conduit leasing with funds in the Account used to fund the installation and maintenance of telecommunications conduit within the State right-of-way and to support the administration of this new subdivision. Requires excess revenues in the fund to remain in the fund to advance additional projects across the state.

Enacts GS 136-44.18 to require DOT, in collaboration with the Department, to include in its planning for roads with a minimum length of 2,500 feet the installation of conduit for telecommunications  cables when: (1) less than 90% of households in the county where the road project is located have access to high-speed data or telecommunications services and (2) before advertising the project, a provider of high-speed data Internet provides DOT with a letter indicating its interest in leasing the conduit and enters into a lease agreement or provides a bond in the amount of the anticipated construction costs.

Requires DOT, in collaboration with the Department, to report annually beginning by May 1, 2024, to the specified NCGA committee on its progress in implementing the program to install telecommunications conduit authorized by this act. Specifies information that is to be included in the initial and subsequent reports. 

Part IV

Amends GS 143B-1373 (the GREAT Program) to require private providers proposing broadband projects with a completions time line of greater than two years to disclose written documentation justifying the time line. Amends the time period that protected project area remains protected under the program from just until project completion to until project completion, or three years, whichever is lesser. Specifies that the project protection will not prohibit another eligible project from deploying broadband infrastructure in a protected project area if that broadband infrastructure deployment is necessary to provide broadband service to the unserved area identified in a grant application submitted under this section. Bars protests of applications proposing deployment of broadband infrastructure in a protected project area. Adds further specifications to the Broadband Infrastructure Office’s required scoring system of project applicants. Permits that office to prioritize applications that don’t exceed the two-year timeline set forth in GS 143B-1373(c). Makes conforming changes to Section 38.4(a) of SL 2021-180 (base budget appropriations pertaining to the GREAT Program).  

Permits the Office of State Budget and Management (OMB), in consultation with the Director of the Budget, to reallocate State Fiscal Recovery Fund funds appropriated by an act of the General Assembly under all of the following conditions only: (1) the appropriated funds were recouped or unallocated and are otherwise unexpended as of the effective date of the act; (2) the reallocation is made to support broadband infrastructure project grants and the use of funds are otherwise allowable under applicable federal regulations. Bars reallocation from being used for any new activity, purpose, or program; (3) to the extent that funds reallocated pursuant to the act are unappropriated, including interest accrual exceeding what is anticipated in the act, specifies that those funds are appropriated and available for use pursuant to the act; and (4) requires OMB The to report to the Fiscal Research Division on reallocations made pursuant to the act. Sets forth the General Assembly’s intent regarding the use of the funds received by the State from the federal Infrastructure Investment and Jobs Act (P.L. 117-58) intended for broadband. 

Part V

Requires the North Carolina Collaboratory (Collaboratory) to study the impacts of lack of broadband service on access to emergency services in rural areas of the State and focus specifically on impacts to elderly and disabled residents in those affected areas. Local governments and the Department must assist the Collaboratory with any data needed to assist in the study. Requires the Collaboratory to report the results of the study to the specified NCGA committees on or before February 1, 2024. Appropriates $1 million from the General Fund to the Collaboratory in nonrecurring funds for the 2023-24 fiscal year to be used to conduct the study. Specifies that the funds will revert in accordance with State law. Effective July 1, 2023.