House committee substitute replaces the 1st edition in its entirety with the following. Makes conforming changes to the act’s long title.

Part I.

Expands the entities exempt from the provisions of GS Chapter 143B under GS 143B-1320 to include the State Highway Patrol (SHP), unless they elect to participate in the information technology programs, services, or contracts offered by the Department of Information Technology (DIT). Designates the Commander of the SHP as the person authorized to make the election.

Removes the SHP from the entities listed in Section 38.4 of SL 2023-134 as entirely exempt from any and all information technology oversight from the Department of Public Safety and DIT. Limits the entity required to initiate a pilot project where it is a standalone entity with the Department of Public Safety (DPS) in all matters related to information technology to the Division of Emergency Management (EMS) (was, SHP and the State Bureau of Investigation-SBI). Makes conforming changes.  Extends the expiration date from June 30, 2025, to June 30, 2027. Removes the SBI from those excepted from the State’s CIO obligation under GS 143B-1325 to prepare a detailed plan to transition DPS so that it’s information technology functions are under DIT.

Part II.

Modifies the Broadband Pole Replacement Program (Program) established in Section 38.10 in SL 2021-180 to allow communications providers to seek reimbursement for up to 50% of the costs for placing facilities underground to better protect the critical infrastructure for natural disasters. Exempts poles owned by utilities from the Program’s obligations to provide estimates, invoices, make-ready work and the option to invoke dispute procedures authorized under GS 62-350. Makes conforming and clarifying changes to terms eligible pole replacement cost, unserved area, and pole. Adds term utility. Amends the term qualified project so that it now means a project undertaken by a communications service provider seeking to provide or, due to natural disaster or other force majeure event, restore, temporarily or permanently, qualifying internet access service on a retail basis to one or more households, businesses, agricultural operations, or community access points in an unserved or underserved area. The project may be affiliated with a cooperatively organized entity that owns utility poles but shall not be affiliated with a city that owns utility poles. A pole owner whose affiliate seeks reimbursement for a qualified project shall not pass through the costs for which reimbursement is sought to unaffiliated communications service providers and shall schedule and perform all work in a nondiscriminatory fashion. Specifies that an unserved area also includes an area previously served but has become unserved due to damage or destruction by a natural disaster. Specifies that in cases of a damaged or destroyed facility, it will be deemed to be located in an unserved area if it was in such an area when the facility was originally constructed.

Directs that funds encumbered for expenses incurred as of June 1, 2021, prior to the effective date of the section remain eligible for reimbursement.

Part III.

Repeals GS 143B-1373.2 (the GREAT program fixed wireless and satellite broadband grants) and GS 143B-1374 (satellite-based broadband grant program). Instructs the Department of Information Technology (DIT) to use funds appropriated for the Growing Rural Economies with Access to Technology (GREAT) program for fixed wireless and satellite broadband grants, established in GS 143B-1373.2, to award grants to eligible entities to purchase installation materials for satellite internet service and for the provision of satellite internet service for a period of up to one year. Specifies that installation materials and internet service must be for the grantee's own use and not for distribution to other parties. Requires DIT to prioritize grant applicants that operate in one of the 39 counties designated as a disaster area due to Hurricane Helene. Defines eligible entity to include a State agency, local government entity, a volunteer firefighter, or an anchor point (defined).

Authorizes DIT to provide emergency funding to communications service providers to rebuild, repair, or replace broadband infrastructure damaged by Hurricane Helene, including reimbursement of costs already incurred for rebuilding, repairing, or replacing broadband infrastructure so long as three listed criteria are met, including prioritization of restoration of broadband service. Allows DIT to use up to $50 million of the funds available from the Broadband Make Ready Accelerator appropriation in SL 2021-180 for this purpose. Authorizes DIT to use its emergency procurement authority.

Amends Section 38.15 of SL 2021-180, so that DIT’s flexibility to transfer funding between the specified programs commences after the intent of the original appropriation has been satisfied to the extent practicable. Removes requirements that the total allocations for the program remain the same.

Part IV.

Amends Section 10.2 of SL 2024-55, concerning definitions relating to Broadband Equity, Access and Deployment (BEAD), by removing the term extremely high cost per location threshold. Amends the definition of low-cost broadband service option so that it is now as defined in IIJA (Infrastructure Investment and Jobs Act) as amended by any subsequent guidance issued by NTIA (National Telecommunications and Information Administration). Amends the definition of reliable broadband service, underserved, and unserved so that they are all now as defined in the IIJA as amended by any subsequent guidance issued by the NTIA. Removes the provision on breaking a tie in grant application scores.

Part V.

Enacts GS 62-30.1, authorizing the Utilities Commission (UC) to, solely upon petition of any provider or reseller of mobile radio communications service, designate the petitioning provider or reseller of mobile radio communications service as an eligible telecommunications carrier for purposes of providing Lifeline service. Permits the UC to adopt rules to effectuate the purposes of this statute. Clarifies that GS 62-30.1 does not confer any regulatory jurisdiction upon the UC over providers or resellers of mobile radio communications service previously designated as eligible telecommunications carriers for purposes of providing Lifeline service prior to the enactment of the statute.

Part VI.

Effective July 1, 2025, unless otherwise provided.