House committee substitute makes the following changes to the 1st edition.

Amends the long title.

Deletes a whereas clause.

Deletes proposed amendments to GS 143B-472.127 (Programs administered by the Rural Economic Development Division) and GS 143-128.1C (Public-Private partnership construction contracts).

Amends GS 160A-272 (Lease or rental of property). Authorizes town councils to approve leases for the operation and use of components of a wired or wireless network, without treating the lease as a sale of property, for a term of up to 25 years. Requires such leases to be entered into on a competitively neutral and nondiscriminatory basis, and made available to similarly situated providers on comparable terms and conditions. Prohibits such leases from being used to subsidize the provision of competitive service.

Amends GS 160A-272.1 to subject lease of city-owned utility or public service enterprises to GS Chapter 160A, Article 12 (Sale and Disposition of Property).

Amends GS 160A-321 (Sale, lease, or discontinuance of city-owned enterprise). Provides that that statute applies to the sale or lease of public enterprises (currently, public or otherwise is not specified). Authorizes a city to lease a part of the city-owned public enterprise to be operated and used as a component of a wired or wireless network without a vote of the people, subject to GS Chapter 160A, Article 12 (Sale and Disposition of Property).

Enacts new GS 153A-458 (Authority to construct internal communications). Authorizes counties to purchase, lease, construct, and operate facilities to support intragovernmental services for the county's internal governmental purposes.

Amends GS 143-128.1C (Public-private partnership construction projects). Definespublic-private projects to include capital improvement projects for the benefit of a city or county under a development contract that include construction of components of a wired or wireless network in conjunction with or part of another construction project undertaken by the city or county.

Amends proposed GS 143B-438.14(e) to require the NCWorks Commission to submit the initial report required under that subsection on or before July 1, 2017 (currently, May 1, 2017).

Amends SL 2016-94, Section 15.1. Requires the Department of Commerce to submit the supplement required under that section by July 1, 2017 (currently, May 1, 2017). Amends the required information to require an evaluation of whether funds allocated for downtown revitalization projects can or should be used to support the development of digital infrastructure. Makes a conforming change.