House committee substitute to the 2nd edition makes the following changes.

Discards the amendments to definitions of federal agency and state agency in Section 4 and adds a new definition of “publicly funded entity” in GS 147-64.4(5), which is any individual, corporation, institution, association, board, or other organization that receives, disburses, or otherwise handles state or federal funds.

Replaces the reference to individuals who receive public funds with publicly funded entities in Section 5’s proposed changes to GS 147-64.6B(b).

Amends GS 147-64.7 to also give the auditor access to databases, datasets, and digital records, and limits the access to all of the listed items to audits and investigations under GS 147-64.6 (c)(25), as described below. Adds the state government, the State, or its political subdivisions, to the proposed language in Section 6 for GS 147-64.7(a)(2)b. Includes publicly funded entity instead of individuals, corporations, or institutions under subdivision (3), and provides that audits and investigations of publicly funded entities are limited by GS 147-64.6(c).

Makes the previous Section 7 language the new Section 7.(a), and adds Section 7.(b), which amends GS 126-1.1(c) to provide procedures for employees of the Office of State Auditor that have attained career status before July 1, 2025, to elect to waive that status and become exempt under GS 126-5(c1)(41), and for probationary employees hired before July 1, 2025, to elect to continue to earn career status or become exempt under GS 126-5(c1)(41).

Adds subdivision (25) to the amendments of GS 147-64.6(c) in Section 11, which permits the auditor to engage in audits or investigations of any publicly funded entity, limited to the state or federal funds received or otherwise handled by the entity.