House committee substitute makes the following changes to the 3rd edition.

Amends proposed GS 15A-300.3, prohibiting the use of an unmanned aircraft system near a confinement or correctional facility. Amends subsection (a) to qualify that a local confinement facility is as defined in GS 153A-217. Makes the same change to the directive to the Division of Aviation of the Department of Transportation to petition the FAA as specified in Section 2 of the act. 

Amends subsection (b) to clarify that the distance restrictions of subsection (a) [previously, the provisions of subsection (a)] do not apply to the listed exceptions. Amends the list of exceptions as follows. Amends the exception for a public utility or a provider to also except a commercial entity, provided that the public utility, provider or commercial entity complies with the specified qualifications. Amends those specified qualifications for a public utility, a provider, or a commercial entity to be excepted from the distance restrictions of subsection (a), to now provide: (1) that the unmanned aircraft system remains outside a horizontal distance of 150 (was, 100) feet or a vertical distance of 150 (was, 100) feet from any local confinement facility or State or federal correctional facility; (2) that the entity notifies the official in responsible charge of the facility at least 24 hours prior to operating the unmanned aircraft system (unchanged); (3) that the entity uses the unmanned aircraft system for the purpose of inspecting public utility or provider transmission lines, equipment, or communication infrastructure, or for another purpose directly related to the business of the public utility, provider, or commercial entity (previously, did not include purposes of inspecting communication infrastructure or other purpose directly related to business); (4) that the entity uses the unmanned aircraft system for commercial purposes pursuant to and in compliance with the FAA regulations, authorizations, or exemptions, and Article 10 of GS Chapter 63 (previously did not include Article 10 of GS Chapter 63); and (5) that the person operating the unmanned aircraft system does not physically enter the prohibited space without an escort from the facility (previously not included at all). Adds new exception from the distance restrictions in subsection (a) for an emergency management agency, as defined in GS 166A-19.3; emergency services personnel; firefighters; and law enforcement officers when using an unmanned aircraft system in response to an emergency.  

Amends subsection (c), subdivision (1), to apply the penalty of a Class H felony and a $1,500 fine to persons who use an unmanned aircraft system in violation of subsection (a) or pursuant to an exception in subsection (b) (previously, pursuant to an exception in subsection (b) not included), and who deliver or attempt to deliver a weapon to a local confinement facility or State or federal correctional facility.

Amends subsection (c), subdivision (2), to apply the penalty of a Class I felony and a $1,000 fine to persons who use an unmanned aircraft system in violation of subsection (a) or pursuant to an exception in subsection (b) (previously, pursuant to an exception in subsection (b) not included), and who deliver or attempt to deliver contraband to a local confinement facility or State or federal correctional facility.

Adds new provision to require the Social Services Commission of the Department of Health and Human Services, at the request of the Division of Aviation, to provide the Division of Aviation a list of local confinement facilities, as defined in GS 153A-217, including facility location and a contact person for each facility. Requires the Department of Public Safety, at the request of the Division of Aviation, to provide the Division of Aviation a list of State correctional facilities, including facility location, a contact person for each facility, and each facility's operational status.