AN ACT to facilitate access to broadband by modernizing broadband speed benchmarks, permitting non‑deployment access to certain areas receiving broadband grants, and facilitating the installation of broadband infrastructure.

The General Assembly of North Carolina enacts:

part i. modernize broadband speed benchmarks

SECTION 1.1.(a)  G.S. 143B‑1320 reads as rewritten:

§ 143B‑1320.  Definitions; scope; exemptions.

(a)        Definitions. – The following definitions apply in this Article:

(1)        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.

(1)(1a) CGIA. – Center for Geographic Information and Analysis.

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(16)      Separate agency. – Any agency that has maintained responsibility for its information technology personnel, operations, projects, assets, and funding. The agency head shall work with the State CIO to ensure that the agency has all required information technology support.

(16a)    Served area. – A designated geographic area that presently has access to broadband service. The term may also include individual homes and businesses.

(16a)(16c)  Significant cybersecurity incident. – A cybersecurity incident that is likely to result in demonstrable harm to the State's security interests, economy, critical infrastructure, or to the public confidence, civil liberties, or public health and safety of the residents of North Carolina. A significant cybersecurity incident is determined by the following factors:

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(20)      Underserved area. – A designated geographic area that (i) presently does not have broadband service and (ii) has transmission speeds of less than 25 megabits per second download and 3 megabits per second upload. The term may also include individual homes and businesses.

(21)      Unserved area. – A designated geographic area that presently does not have broadband service. The term may also include individual homes and businesses.

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SECTION 1.1.(b)  G.S. 143B‑1373 reads as rewritten:

§ 143B‑1373.  Growing Rural Economies with Access to Technology (GREAT) program.

(a)        As used in this section, the following definitions apply:

(1)        Agriculture. – Activities defined in G.S. 106‑581.1.

(2)        Broadband service. – For the purposes of this section, terrestrially deployed Internet access service with transmission speeds of at least 25 megabits per second (Mbps) download and at least 3 megabits per second upload (25:3).that meets the transmission speed standard for broadband service defined in G.S. 143B‑1320(a)(1).

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(14)      Unserved area. – A designated geographic area that is presently without access to broadband service, as defined in this section, offered by a wireline or fixed wireless provider. As defined in G.S. 143B‑1320(a)(21). Areas where a private provider has been designated to receive funds through other State‑ or federally funded programs designed specifically for broadband deployment shall be considered served if such funding is intended to result in construction of broadband in the area within 18 months or for the duration of the federal funding program for that area, or if the funding recipient is otherwise in good standing with the funding agency's regulations governing the funding program.

(15)      Unserved household or business. – A household or business that does not presently have access to broadband service, as defined in this subsection.

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SECTION 1.1.(c)  G.S. 143B‑1374 reads as rewritten:

§ 143B‑1374.  Satellite‑Based Broadband Grant Program.

(a)        The following definitions apply in this section:

(1)        Broadband service. – Internet access service, regardless of the technology or medium used to provide the service, with that meets the transmission speeds that are equal to or greater than the requirements for the minimum performance tier speed standard for broadband service defined in G.S. 143B‑1320(a)(1) and with latency equal to or lesser than the requirements for low latency, as both metrics are provided by the Federal Communications Commission in Paragraph 39 of the report and order adopted January 30, 2020, and released February 7, 2020.

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SECTION 1.1.(d)  G.S. 146‑29.2 reads as rewritten:

§ 146‑29.2.  Lease or interest in real property for communication purposes.

(a)        The following definitions apply in this section:

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(1b)      Broadband. – Internet access service with transmission speeds that are equal to or greater than the requirements for basic broadband tier 1 service as defined by the Federal Communications Commission for broadband data gathering and reporting, that meets the transmission speed standard for broadband service defined in G.S. 143B‑1320(a)(1), regardless of the technology or medium used to provide the service.

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SECTION 1.1.(e)  G.S. 153A‑459 reads as rewritten:

§ 153A‑459.  County broadband acceleration.

A county may provide grants to unaffiliated private or nonprofit providers of broadband service, as that term is defined in G.S. 143B‑1373(a)(2), G.S. 143B‑1320(a)(1), for the purpose of expanding broadband service in unserved areas in the county. The grants shall be awarded on a technology neutral basis, shall be open to all private or nonprofit providers of broadband service, and may require matching funds by the private or nonprofit providers. A county shall seek and consider requests for proposal from providers prior to awarding a broadband grant and shall use reasonable means to ensure that potential applicants are made aware of the grant; provided, however, a county is not required to seek and consider requests for proposal when providing financial or other support in connection with an application from a private provider for a broadband service grant under G.S. 143B‑1373. The county may use general fund revenue as well as State or federal funds for the grants. For purposes of this section, the term unserved area has the same meaning as in G.S. 143B‑1373(a)(14). For any grants awarded pursuant to this section after the date this section becomes effective, the term unserved area shall not include any location where a private provider has been designated to receive funds through State‑ or federally funded programs designed specifically for broadband service deployment if the recipient of the funding is in good standing with the grantor agency's requirements regarding construction build‑out and time lines. Nothing in this section authorizes a county to provide high‑speed Internet broadband service.

SECTION 1.1.(f)  G.S. 160A‑340 reads as rewritten:

§ 160A‑340.  Definitions.

The following definitions apply in this Article:

(1)        City‑owned communications service provider. – A city that provides communications service using a communications network, whether directly, indirectly, or through an interlocal agreement or a joint agency.

(2)        Communications network. – A wired or wireless network for the provision of communications service.

(3)        Communications service. – The provision of cable, video programming, telecommunications, broadband, or high‑speed Internet access service to the public, or any sector of the public, for a fee, regardless of the technology used to deliver the service. The terms cable service, telecommunications service, and video programming service have the same meanings as in G.S. 105‑164.3. The following is not considered the provision of communications service:

a.         The sharing of data or voice between governmental entities for internal governmental purposes.

b.         The remote reading or polling of data from utility or parking meters, or the provisioning of energy demand reduction or smart grid services for an electric, water, or sewer system.

c.         The provision of free services to the public or a subset thereof.

(4)        High‑speed Internet access service. – Internet access service with that meets the transmission speeds that are equal to or greater than the requirements speed standard for basic broadband tier 1 service as defined by the Federal Communications Commission for broadband data gathering and reporting.in G.S. 143B‑1320(a)(1).

(5)        Interlocal agreement. – An agreement between units of local government as authorized by Part 1 of Article 20 of Chapter 160A of the General Statutes.

(6)        Joint agency. – A joint agency created under Part 1 of Article 20 of Chapter 160A of the General Statutes.

SECTION 1.2.(a)  G.S. 143B‑1320, as amended by Section 1.1(a) of this act, reads as rewritten:

§ 143B‑1320.  Definitions; scope; exemptions.

(a)        Definitions. – The following definitions apply in this Article:

(1)        Broadband service. – Internet access service of at least 25 100 megabits per second download and at least 3 20 megabits per second upload, regardless of the technology or medium used to provide the service.

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(20)      Underserved area. – A designated geographic area that (i) presently does not have broadband service and (ii) has transmission speeds of less than 25 100 megabits per second download and 3 20 megabits per second upload. The term may also include individual homes and businesses.

(21)      Unserved area. – A designated geographic area that presently does not have broadband service. 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. The term may also include individual homes and businesses.

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SECTION 1.2.(b)  This section becomes effective July 1, 2024.

SECTION 1.3.(a)  There is appropriated from the General Fund to the Department of Information Technology the sum of one hundred thousand dollars ($100,000) in nonrecurring funds for the 2023‑2024 fiscal year to update requirements of broadband programs administered by the Department that are impacted by the increased broadband speed benchmarks established in this act and other administrative costs associated with broadband grant programs.

SECTION 1.3.(b)  This section becomes effective July 1, 2023.

SECTION 1.4.  Except as otherwise provided, this Part is effective when it becomes law.

part ii. leasing rural broadband

SECTION 2.1.(a)  Article 23 of Chapter 153A of the General Statutes is amended by adding a new section to read:

§ 153A‑461.  Authority to construct and lease broadband infrastructure.

(a)        A county shall have the authority to install or maintain broadband infrastructure to be leased to a private provider in accordance with G.S. 160A‑272.5 if all of the following apply:

(1)        The lessee is a person operating for profit in this State to provide broadband services to customers.

(2)        The county has at least one of the following:

a.         More than four and three quarters percent (4.75%) of the county without a provider of broadband infrastructure according to the Federal Communications Commission.

b.         A major military installation, as defined in G.S. 143‑215.115.

(b)        A board of county commissioners may utilize ad valorem tax levies authorized under general law, grants, or any other unencumbered funds in exercising authority granted under this section.

(c)        Prior to beginning installation of broadband infrastructure under this section, a county shall prepare a report, available in the office of the clerk for at least 90 days prior to the date of the public hearing, containing at least all of the following:

(1)        A business plan for providing broadband infrastructure, including plans for leasing the broadband infrastructure to a private provider.

(2)        The results of a feasibility study conducted by the county to determine needs and available resources. The feasibility study shall include at least all of the following information:

a.         Which areas within the county:

1.         Have one or fewer wireline or fixed wireless private providers of broadband services to residential customers.

2.         Have terrestrially deployed internet access service with transmission speeds of 10 megabits per second (Mbps) download and no more than 1 megabit per second upload (10:1).

3.         Have terrestrially deployed internet access service with transmission speeds of 25 megabits per second (Mbps) download and no more than 3 megabits per second upload (25:3).

b.         A determination of any areas within the county that State or federal grant moneys have been awarded within the 18 months prior to the date of the feasibility study to provide access to broadband. A county may rely on data from the Broadband Infrastructure Office in the Department of Information Technology in complying with this sub‑subdivision.

c.         A map, or sufficient written description, of the location and type of broadband infrastructure proposed to be installed.

d.         A review of the county's financials and proposed sources of revenue to fund installation of broadband infrastructure.

(d)       The board of county commissioners shall hold a public hearing before adopting any resolution at a regular meeting stating its intent to install broadband infrastructure for the purpose of leasing in accordance with G.S. 160A‑272.5. Notice of the hearing shall state the date, hour, and place of the public hearing and its subject and shall include the map described in sub‑subdivision (c)(2)c. of this section and a statement that the report required by subsection (c) of this section is available for public inspection in the office of the clerk. The notice shall be published at least once, not less than one week before the date of the hearing.

(e)        Nothing in this section grants authority, or shall be construed to grant authority, to a county to use broadband infrastructure constructed under this section to provide communications services as defined in G.S. 160A‑340(3) or in accordance with Article 16A of Chapter 160A of the General Statutes.

(f)        For purposes of this section, broadband infrastructure shall mean 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 3 megabits per second upload (25:3) or as defined by the Federal Communications Commission, whichever speeds are faster.

SECTION 2.1.(b)  Article 21 of Chapter 160A of the General Statutes is amended by adding a new section to read:

§ 160A‑499.6.  Authority to construct and lease certain facilities.

(a)        A city shall have the authority to install or maintain broadband infrastructure to be leased to a private provider in accordance with G.S. 160A‑272.5 if all of the following apply:

(1)        The city has at least sixty percent (60%) of its population, according to the most recent federal decennial census, lying in one of the counties described in G.S. 153A‑461(a)(2).

(2)        The lessee is a person operating for profit in this State to provide broadband services to customers.

(b)        A city council may utilize ad valorem tax levies authorized under general law, grants, or any other unencumbered funds in exercising authority granted under this section.

(c)        Prior to beginning installation of broadband infrastructure under this section, a city shall prepare a report, available in the office of the clerk for at least 90 days prior to the date of the public hearing, containing at least all of the following:

(1)        A business plan for providing broadband infrastructure, including a plan for leasing the broadband infrastructure to a private provider.

(2)        The results of a feasibility study conducted by the city to determine needs and available resources. The feasibility study shall include at least all of the following information:

a.         Which areas within the city:

1.         Have one or fewer wireline or fixed wireless private providers of broadband services to residential customers.

2.         Have terrestrially deployed internet access service with transmission speeds of 10 megabits per second (Mbps) download and no more than 1 megabit per second upload (10:1).

3.         Have terrestrially deployed internet access service with transmission speeds of 25 megabits per second (Mbps) download and no more than 3 megabits per second upload (25:3).

b.         A determination of any areas within the city that State or federal grant moneys have been awarded within the 18 months prior to the date of the feasibility study to provide access to broadband. A city may rely on data from the Broadband Infrastructure Office in the Department of Information Technology in complying with this sub‑subdivision.

c.         A map, or sufficient written description, of the location and type of broadband infrastructure proposed to be installed.

d.         A review of the city's financials and proposed sources of revenue to fund installation of broadband infrastructure.

(d)       The city council shall hold a public hearing before adopting any resolution at a regular meeting stating its intent to install broadband infrastructure for the purpose of leasing in accordance with G.S. 160A‑272.5. Notice of the hearing shall state the date, hour, and place of the public hearing and its subject and shall include the map described in sub‑subdivision (c)(2)c. of this section and a statement that the report required by subsection (c) of this section is available for public inspection in the office of the clerk. The notice shall be published at least once, not less than one week before the date of the hearing.

(e)        Nothing in this section grants authority, or shall be construed to grant authority, to a city to use broadband infrastructure constructed under this section to provide communications services as defined in G.S. 160A‑340(3) or in accordance with Article 16A of Chapter 160A of the General Statutes.

(f)        For purposes of this section, broadband infrastructure shall mean 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 3 megabits per second upload (25:3) or as defined by the Federal Communications Commission, whichever speeds are faster.

SECTION 2.2.(a)  G.S. 153A‑149(c) is amended by adding a new subdivision to read:

(7a)    Broadband Infrastructure. – To construct wireline and wireless infrastructure.

SECTION 2.2.(b)  G.S. 160A‑209(c) is amended by adding a new subdivision to read:

(7a)    Broadband Infrastructure. – To construct wireline and wireless infrastructure.

SECTION 2.2.(c)  This section is effective for taxes imposed for taxable years beginning on or after July 1, 2023.

SECTION 2.3.  G.S. 159‑81(3) is amended by adding a new sub‑subdivision to read:

r.        Broadband infrastructure for the purpose of leasing in accordance with G.S. 160A‑272.5.

SECTION 2.4.(a)  Article 12 of Chapter 160A of the General Statutes is amended by adding a new section to read:

§ 160A‑272.5.  Leases of broadband infrastructure to a private provider.

(a)        Notwithstanding this Article, broadband infrastructure installed or maintained in accordance with G.S. 153A‑461 or G.S. 160A‑499.6 shall be leased to a private provider for delivery of services to customers in accordance with this section.

(b)        The governing board may lease broadband infrastructure installed or maintained in accordance with this Article to a private provider for a term of up to 25 years. Property may be leased only pursuant to a resolution of the governing board authorizing the execution of the lease agreement adopted at a regular governing board meeting upon 30 days' public notice. Notice shall be given by publication describing the property to be leased and announcing the governing board's intent to authorize the lease.

(c)        All leases of broadband infrastructure installed or maintained in accordance with this Article shall comply with all of the following:

(1)        The lease shall be entered into on a technology neutral basis.

(2)        The lease shall be open to similarly situated private providers on comparable terms and conditions.

(3)        Requests for proposals shall be solicited by the governing board prior to adoption of the resolution authorizing the execution of the lease, as follows:

a.         Requests for proposals shall be invited by advertisement in a newspaper having general circulation in the city. A city may also invite proposals by electronic means.

b.         Advertisement for proposals from potential lessees shall be published in a newspaper having general circulation in the city no less than 30 days prior to the date on the notice for the opening of bids.

c.         A city shall seek and consider requests for proposals from qualified private providers within the city by providing notice in accordance with G.S. 160A‑340.6(c) and any other reasonable means to ensure that potential lessees are made aware of the notice for requests for proposals.

d.         The advertisement for requests for proposals from potential lessees shall contain at least the following information:

1.         The type and location of the broadband infrastructure to be leased.

2.         The time and place where plans and specifications of the proposed lease may be had.

3.         The time and place for opening of the proposals.

4.         A statement reserving to the governing board the right to reject any or all proposals.

e.         Proposals may be rejected for any reason determined by the governing board to be in the best interest of the city.

(d)       For purposes of this section, in determining the term of a proposed lease, periods that may be added to the original term by options to renew or extend shall be included.

SECTION 2.4.(b)  This section becomes effective October 1, 2023, and applies to leases entered into on or after that date.

SECTION 2.5.  G.S. 160A‑321 reads as rewritten:

§ 160A‑321.  Sale, lease, or discontinuance of city‑owned enterprise.

(a)        A city is authorized to sell or lease as lessor any public enterprise that it may own upon any terms and conditions that the council may deem best. However, except as to transfers to another governmental entity pursuant to G.S. 160A‑274 or as provided in subsection subsections (a1) and (b) of this section, a city‑owned public enterprise shall not be sold, leased to another, or discontinued in its entirety unless the proposal to sell, lease, or discontinue such public enterprise in its entirety is first submitted to a vote of the people and approved by a majority of those who vote thereon.

(a1)      Voter approval shall not be required for the sale, lease, or discontinuance of airports, off‑street parking systems and facilities, or solid waste collection and disposal systems.

(b)        For the sale, lease, or discontinuance of water treatment systems, water distribution systems, or wastewater collection and treatment systems, a city may, but is not required to, submit to its voters the question of whether such sale, lease, or discontinuance shall be undertaken.

(c)        The Any referendum under this section is to be conducted pursuant to the general and local laws applicable to special elections in such city.

SECTION 2.6.  G.S. 160A‑340.2 is amended by adding a new subsection to read:

(f)       Broadband infrastructure constructed by a city for the purpose of leasing in accordance with G.S. 160A‑272.5 shall not be used to provide communication services under this Article.

SECTION 2.7.  Except as otherwise provided, this Part becomes effective October 1, 2023.

part iii. telecommunications construction

SECTION 3.1.  G.S. 136‑18 is amended by adding a new subdivision to read:

(47)    The Department of Transportation shall have authority to construct conduit for telecommunications cables within the State right‑of‑way, with the costs of construction to be borne through the leasing of the conduit to private telecommunications companies, where such construction and leasing is not otherwise prohibited by any other federal or State law. The Conduit Installation Account is created as a nonreverting account within the Information Technology Fund (Budget Code 24667) to receive revenues from conduit leasing. The Department of Information Technology shall administer the Account. Revenue in the Account may be used only to fund the installation and maintenance of telecommunications conduit within the State right‑of‑way as authorized by this subdivision and to support the administration of this subdivision. After project costs have been funded, any excess revenues in the fund shall remain in the fund to advance additional projects across the State as authorized by this subdivision.

SECTION 3.2.  Article 2A of Chapter 136 of the General Statutes is amended by adding a new section to read:

§ 136‑44.18.  Installation of telecommunications conduit within State right‑of‑way.

As authorized in G.S. 136‑18(47) and in collaboration with the North Carolina Department of Information Technology, the Department of Transportation shall include in its planning for roads with a minimum length of 2,500 feet the installation of conduit for telecommunications cables when all of the following apply:

(1)        Less than ninety percent (90%) of households in the county where the road project is located have access to high‑speed data or telecommunications services. If a project is located in more than one county, the Department of Transportation may evaluate each county separately under this subdivision.

(2)        Prior to the advertisement of the project, a provider of high‑speed data internet provides the Department of Transportation with a letter indicating its interest in leasing the conduit from the Department of Transportation and enters into a lease agreement or provides a bond in the amount of the anticipated construction costs.

SECTION 3.3.  The Department of Transportation, in collaboration with the Department of Information Technology, shall report no later than May 1, 2024, to the Joint Legislative Transportation Oversight Committee and annually thereafter on its progress in implementing the program to install telecommunications conduit authorized by this act. The initial report shall include identification by the Department of Transportation of any statutory or regulatory barriers to implementation of the conduit installation program. Each report shall include a list of highway projects eligible for conduit installation in the next year with a financial and market analysis and resulting estimate by the Department of Transportation as to whether the conduit installation authorized by this act is likely to be cost‑effective for that project.

SECTION 3.4.  This Part is effective when it becomes law.

part iv. non‑deployment access to project areas

SECTION 4.1.(a)  G.S. 143B‑1373 reads as rewritten:

§ 143B‑1373.  Growing Rural Economies with Access to Technology (GREAT) program.

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(c)        A private provider receiving State or federal funds to deploy broadband service in unserved areas may qualify such area for protection by submitting a listing of the census blocks, or portions thereof, comprising the State‑ or federally funded project areas in a manner prescribed by the Office. The Office shall only utilize this data to update maps of census blocks to reflect these census blocks, or portions thereof, as being served. Failure on the part of a provider to submit the listing of census blocks by the cutoff date shall result in those areas being eligible for inclusion under this program during subsequent program years. The Office shall use the census block data provided only for mapping of unserved areas. A project area shall remain protected for a period of 18 months from the submission of the listing information required under this subsection; provided, however, a private provider that has received protection for a project area shall submit written documentation by April 30 of the year following the program year that broadband deployment has begun or been completed, or is otherwise in good standing, in the census blocks, or portions thereof, that have been deemed ineligible by the Office under this subsection. For a proposed project with a completion time line of greater than two years, the private provider shall disclose written documentation justifying the time line. Upon submission of documentation satisfactory to the Office, a protected project area shall remain protected until project completion. completion or three years, whichever is lesser. A project area where a private provider has forfeited or otherwise defaulted on an agreement in connection with receipt of funds to deploy broadband service shall be eligible for inclusion in this program in subsequent program years. The project area protection described in this subsection shall 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. Information provided to the Office pursuant to this subsection is not a public record, as that term is defined in G.S. 132‑1.

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(e)        Applications shall be made publicly available by posting on the Web site of the Department of Information Technology for a period of at least 20 days prior to award. During the 20‑day period, any interested party may submit comments to the Secretary concerning any pending application. A broadband service provider currently providing broadband service in a project area proposed in an application may submit a protest of any application on the grounds the proposed project covers an area that is a protected area under subsection (c) of this section, or that the proposed project area contains ten percent (10%) or more of total households with access to broadband service as defined in this section. Protests of applications proposing deployment of broadband infrastructure in a protected project area, as described in subsection (c) of this section, are not authorized under this subsection. Protests shall be submitted in writing, accompanied by all credible and relevant supporting documentation, including specific addresses, and detailed mapping demonstrating that the protesting broadband provider has installed infrastructure sufficient to provide broadband service to the specific addresses provided in the protest, along with an attestation that broadband service is available in the public right‑of‑way at the specific addresses indicated. The protest shall be considered by the Office in connection with the review of the application. Upon submission of evidence satisfactory to the Office that the proposed project area includes a protected area or prospective broadband recipients that are presently served, as measured using a methodology satisfactory to the Office, the Office may work with an applicant to amend an application to reduce the number of unserved prospective broadband recipients in the project area to reflect an accurate level of current broadband service. The Office may revise application scores in accordance with amended applications; however, the Office may reject any amended application resulting in a lower application score to the extent that the lower score would have impacted the ranking of the application in the initial scoring process. For applications with filed protests, the Secretary shall issue a written decision to the protesting party at least 15 days prior to the approval of that application. Following a protest that is granted for a portion of the application, the Office may release to an applicant the locations or areas declared ineligible. The information released to the applicant is not a public record, as that term is defined under G.S. 132‑1, and shall remain confidential. Any provider submitting a protest shall verify that the information in the protest is accurate and that the protest is submitted in good faith. The Office may deny any protest or application that contains inaccurate information.

As a means of resolving a protest, the Office may utilize speed tests to determine if the protested area or individual households or businesses currently have access to broadband service as defined in this section. The Department shall publish the speed test methodology it uses to assess speed levels pursuant to this section. All decisions regarding the speed test to be utilized and the manner by which the speed tests are applied shall be made by the Secretary or the Secretary's designee.

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(h)        The Office shall score applications based upon the metrics provided in subsection (g) of this section. In awarding grants based upon the scoring metrics, the Office shall also award an additional point to projects where a county has a Community Broadband Planning Playbook that meets the guidelines established by the Office. An application proposing the deployment of broadband infrastructure in a protected project area, as described in subsection (c) of this section, shall not be awarded points for any portion of the application's proposed project area that is situated within a protected project area. The Office may prioritize applications that do not exceed the two‑year time line referenced in subsection (c) of this section.

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SECTION 4.1.(b)  Section 38.4(a) of S.L. 2021‑180 reads as rewritten:

SECTION 38.4.(a)  Of the funds appropriated in this act from the State Fiscal Recovery Fund to the Department of Information Technology for broadband infrastructure grants, and in accordance with applicable federal guidelines, the Department of Information Technology shall administer broadband infrastructure grants through the Growing Rural Economies with Access to Technology (G.R.E.A.T.) grant program. Grant applications shall be submitted and grant funds shall be awarded pursuant to G.S. 143B‑1373, with the exception of the following:

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(5)        The provisions of G.S. 143B‑1373(c) are replaced with the following:

A private provider receiving State or federal funds to deploy broadband service in unserved areas may qualify such area for protection by submitting a listing of the census blocks, or portions thereof, comprising the State‑ or federally funded project areas in a manner prescribed by the Office. The Office shall only utilize this data to update maps of census blocks to reflect these census blocks, or portions thereof, as being served. Failure on the part of a provider to submit the listing of census blocks by the cutoff date shall result in those areas being eligible for inclusion under the G.R.E.A.T. grant program during subsequent program years. The Office shall use the census block data provided only for mapping of unserved areas. A project area shall remain protected for a period of 18 months from the submission of the listing information required under this subdivision; provided, however, a private provider that has received protection for a project area shall submit written documentation by April 30 of the year following the program year that broadband deployment has begun, been completed, or is otherwise in good standing, in the census blocks, or portions thereof, that have been deemed ineligible by the Office under this subsection. Upon submission of documentation satisfactory to the Office, a protected project area shall remain protected until project completion. A project area where a private provider has forfeited or otherwise defaulted on an agreement in connection with receipt of funds to deploy broadband service shall be eligible for inclusion in this program in subsequent program years. The project area protection described in this subdivision shall 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. Information provided to the Office pursuant to this subdivision is not a public record, as that term is defined in G.S. 132‑1.

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(7)        The provisions in G.S. 143B‑1373(e) are replaced with the following:

Applications shall be made publicly available by posting on the website of the Department of Information Technology for a period of at least 20 days prior to award. During the 20‑day period, any interested party may submit comments to the Secretary concerning any pending application. A broadband service provider currently providing broadband service in a project area proposed in an application may submit a protest of any application on the grounds the proposed project covers an area that is a protected area under subsection (c) of this section or that the proposed project area contains ten percent (10%) or more of total households with access to broadband service as defined in this section. Protests of applications proposing deployment of broadband infrastructure in a protected project area, as described in subdivision (5) of this subsection, are not authorized under this subdivision. Protests shall be submitted in writing, accompanied by all credible and relevant supporting documentation, including specific addresses, and detailed mapping demonstrating that the protesting broadband provider has installed infrastructure sufficient to provide broadband service to the specific addresses provided in the protest, along with an attestation that broadband service is available to the exterior of the structure at the specific addresses indicated. The protest shall be considered by the Office in connection with the review of the application. Upon submission of evidence satisfactory to the Office that the proposed project area includes a protected area or prospective broadband recipients that are presently served, as measured using a methodology satisfactory to the Office, the Office may work with an applicant to amend an application to reduce the number of unserved prospective broadband recipients in the project area to reflect an accurate level of current broadband service. The Office may revise application scores in accordance with amended applications; however, the Office may reject any amended application resulting in a lower application score to the extent that the lower score would have impacted the ranking of the application in the initial scoring process. For applications with filed protests, the Secretary shall issue a written decision to the protesting party at least 15 days prior to the approval of that application. Following a protest that is granted for a portion of the application, the Office may release to an applicant the locations or areas declared ineligible. The information released to the applicant is not a public record, as that term is defined under G.S. 132‑1, and shall remain confidential. Any provider submitting a protest shall verify that the information in the protest is accurate and that the protest is submitted in good faith. The Office may deny any protest or application that contains inaccurate information.

As a means of resolving a protest, the Office may utilize speed tests to determine if the protested area or individual households or businesses currently have access to broadband service as defined in this section. The Department shall publish the speed test methodology it uses to assess speed levels pursuant to this section. All decisions regarding the speed test to be utilized and the manner by which the speed tests are applied shall be made by the Secretary or the Secretary's designee.

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(11a)    The Office shall score applications based upon the metrics provided in G.S. 143B‑1373(g), as modified by this section. In awarding grants based upon the scoring metrics, the Office shall also award an additional point to projects where a county has a Community Broadband Planning Playbook that meets the guidelines established by the Office. An application proposing the deployment of broadband infrastructure in a protected project area, as described in subdivision (5) of this subsection, shall not be awarded points for any portion of the application's proposed project area that is situated within a protected project area.

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SECTION 4.1.(c)  This section is effective when it becomes law and applies to grant applications received on or after that date.

SECTION 4.2.(a)  Notwithstanding any provision of Chapter 143C of the General Statutes to the contrary, the Office of State Budget and Management, in consultation with the Director of the Budget, may 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 this act.

(2)        The reallocation is made to support broadband infrastructure project grants under Sections 38.4 and 38.6 of S.L. 2021‑180, as amended, and the use of funds otherwise allowable under applicable federal regulations. Reallocated funds shall not be used for any new activity, purpose, or program.

(3)        To the extent that funds reallocated pursuant to this section are unappropriated, including interest accrual exceeding what is anticipated in this act, those funds are hereby appropriated and available for use pursuant to this section.

(4)        The Office of State Budget and Management shall report to the Fiscal Research Division on reallocations made pursuant to this section.

SECTION 4.2.(b)  Of the funds received by the State from the federal Infrastructure Investment and Jobs Act (P.L. 117‑58) intended for broadband, it is the intent of the General Assembly to use those funds for the benefit of broadband infrastructure grants and those funds are hereby appropriated as follows:

(1)        Sixty percent (60%) of federal Infrastructure Investment and Jobs Act (P.L. 117‑58) broadband funds to the Department of Information Technology to be used in accordance with Section 38.4 of S.L. 2021‑180, as amended by Section 4.1(b) of this act.

(2)        Forty percent (40%) of federal Infrastructure Investment and Jobs Act (P.L. 117‑58) broadband funds to the Department of Information Technology to be used in accordance with Section 38.6 of S.L. 2021‑180, as amended by Section 4.1(b) of this act.

SECTION 4.3.  Except as otherwise provided, this Part is effective when it becomes law.

part v. collaboratory study

SECTION 5.1.(a)  The North Carolina Collaboratory shall study the impacts of lack of broadband service on access to emergency services in rural areas of the State and shall focus specifically on impacts to elderly and disabled residents in those affected areas. Local governments and the Department of Information Technology shall assist the Collaboratory with any data needed to assist in the study outlined in this section. The Collaboratory shall report the results of the study to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on or before February 1, 2024.

SECTION 5.1.(b)  There is appropriated from the General Fund to the North Carolina Collaboratory the sum of one million dollars ($1,000,000) in nonrecurring funds for the 2023‑2024 fiscal year to be used to conduct the study described in subsection (a) of this section.

SECTION 5.1.(c)  Funds appropriated in this section shall revert in accordance with G.S. 116‑30.3.

SECTION 5.2.  This Part becomes effective July 1, 2023.

part vi. Effective date

SECTION 6.1.  Except as otherwise provided, this act is effective when it becomes law.