Senate committee substitute to the 2nd edition replaces the content of the previous edition with the following. Makes conforming changes to the act’s titles.

Part I.

Section 1.1

Effective July 1, 2025, appropriates $62,718,122 in recurring funds for 2025-26 and $64,218,122 in recurring funds for 2026-27 from the General Fund to a Reserve for State Law Enforcement Compensation Increases for legislative salary increases provided in Part II of this act. Allocates the funds in specified amounts to the Department of Public Safety, the State Highway Patrol, the State Bureau of Investigation, the Department of Adult Correction, the Wildlife Resources Commission, the Department of Agriculture and Consumer Services, the Department of Environmental Quality, and the Department of Natural and Cultural Resources.

Effective July 1, 2025, appropriates $41,039,231 for 2025-26 and $41,039,231 for 2026-27 from the General Fund to a Reserve for State Law Enforcement Compensation Increases for legislatively mandated bonuses as provided by this act. Allocates the funds in the specified amounts to the Office of State Budget and Management (OSBM), the Department of Public Safety, and the State Bureau of Investigation.

Section 1.2

Appropriates any receipts that are required to be used to pay the legislatively mandated salary increases and employee benefits increases provided in this act, up to the actual amount received for the 2025-2027 fiscal biennium.

Part II.

Section 2.1

Effective July 1, 2025, compensates law enforcement officers of the State Highway Patrol, State Bureau of Investigation, and Alcohol Law Enforcement according to an experience-based salary schedule and requires compensation be based on the officer's respective work experience pursuant to the specified salary schedule which ranges from $58,575 for 0 years of experience to $85,468 for 6+ years of experience.

Section 2.2

Compensates probation and parole officers under the specified experience-based salary schedule based on the officer's respective work experience. Compensates state employees serving in the Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, as Juvenile Court Counselors under this probation and parole officer salary schedule. Sets out the salary schedule, effective July 1, 2025, with a range of $46,898 for 0 years of experience to $68,432 for 6+ years of experience.

Section 2.3

Compensates state employees serving as correctional officers in the Department of Adult Correction based on the salary schedule determined according to the duration of the employee's correctional officer work experience. Requires those serving in the Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, to be compensated at a specific pay rate set on the basis of a salary schedule determined according to the duration of the employee's work experience, as follows: (1) Youth Counselor Technicians paid under the Correctional Officer I (COI) salary schedule; (2) Youth Services Behavioral Specialists paid under the Correctional Officer II (COII) salary schedule; and (3) Youth Counselors paid under the Correctional Officer III (COIII) salary schedule. Sets out the schedule with a range for COI from $40,066 with 0 years of experience to $52,135 with 6+ years of experience; COII from $41,385 with 0 years of experience to $53,850 with 6+ years of experience; and for COIII from $44,259 with 0 years of experience to $57,593 with 6+ years of experience.

Specifies that with respect to the Department of Adult Correction and Division of Juvenile Justice, these salary funds are granted with the administrative flexibility necessary to address salary compression and related issues connected with these increases.

Section 2.4

Effective July 1, 2025, give a 6.5% raise to employees serving as sworn law enforcement officers in one of the following: (1) Department of Agriculture, Forestry; (2) Department of Environmental Quality, Marine Fisheries; (3) Department of Natural and Cultural Resources, Parks; (4) Wildlife Resources Commission; and (5) State Capitol Police. Prohibits denying the full salary increase because the employee's salary after applying the legislative increase is above the maximum of the salary range.

Section 2.5

Effective July 1, 2025, gives the non-sworn administrative employees of the State Bureau of Investigation employed on June 30, 2025, a raise of 5.75%. Prohibits denying the full salary increase because the employee's salary after applying the legislative increase is above the maximum of the salary range.

Part III.

Section 3.1

Awards bonuses of $1,500 in 2025 and 2026 to a State employee (1) who is a sworn law enforcement officer eligible for compensation under Part II of this act or who is a sworn law enforcement officer employed by another State agency or the UNC System and (2) who is employed on June 30, 2025/2026 (as applicable).

Requires that exceeds funds appropriated for bonuses revert to the General Fund. Specifies that the compensation bonuses are not compensation for the purposes of any State retirement system and sets out other guidelines for the payment of the bonuses. Requires the Office of State Budget and Management (OSBM) to award these law enforcement compensation bonuses and report on the administration of the awards to the Fiscal Research Division by March 15, 2026, and March 15, 2027.

Part IV.

Section 4.1

Awards bonuses of $1,500 in 2025 and 2026 to a sworn local law enforcement officer employed on June 30, 2025/2026 (as applicable).

Requires that exceeds funds appropriated for bonuses revert to the General Fund. Specifies that the compensation bonuses are not compensation for the purposes of any State retirement system and sets out other guidelines for the payment of the bonuses. Requires the State Bureau of Investigation (SBI)  to award these law enforcement compensation bonuses and report on the administration of the awards to the Fiscal Research Division by March 15, 2026, and March 15, 2027.

Section 4.2

Requires, effective July 1, 2025, for recruitment and retention bonuses to be issued to the members of the North Carolina National Guard (NCNG) who refer enlistments or extend their service during the 2025-2027 fiscal biennium. Species that the bonuses are not compensation for the purposes of any State retirement system and are to be paid out separately form salary. Requires the NCNG to award these compensation bonuses and report on the administration of the awards to the Fiscal Research Division annually by March 15, 2026, and March 15, 2027.

Part V.

Section 5.1

Increases the monthly pension benefit for eligible firefighters or rescue squad workers under GS 58-86-55 from $175 per month to $180 per month. Changes the pension eligibility for members serving 20 years and who are 55 and older to those who are eligible firefighters or eligible rescue squad workers in the State, as provided in GS Chapter 58, Article 86 (currently, eligibility extends to eligible firefighters and eligible rescue squad workers in the State as provided in GS 58-86-25 and G.S. 58-86-30, respectively). Makes technical and conforming changes.

Adds new GS 58-86-41 (concerning amount due for membership and payments credited to separate member accounts). Reorganizes $15 monthly Fund membership fee requirement into this new statute along with requirement that such payments cannot exceed a period of twenty years. Further reorganizes the following into new GS 58-86-41: (1) the March 31st payment deadline for all monthly fees for the prior calendar year; (2) directives to the Fund prohibiting it from fully crediting service based on payments received after March 31st unless the payment is applied; and (3) requirement that the Fund credit the monthly payments to the member’s separate account and be retained by the custodian. Makes conforming deletions in GS 58-86-35 and GS 58-86-40. Makes organizational, clarifying, technical, and conforming changes. Directs the Revisor of Statutes to make conforming changes to GS 58-86-2 (definitions for Article 86) to account for new GS 58-86-41.

Effective January 1, 2026. Applies to pension benefit amounts payable from the Fund due to a member or beneficiary on or after January 1, 2026. Specifies that if a member or beneficiary becomes eligible to receive a pension benefit from the Fund on or before December 31, 2025, but the pension benefit amount is paid from the Fund on or after January 1, 2026, then the pension benefit amount due to the member or beneficiary will be the amount applicable to the pension benefit amount that was effective for each respective month to which the benefit applies.

Section 5.2

Amends GS 127A-40 to increase the pension amounts paid to member of the North Carolina National Guard to $108 (was, $105) per month for 20 years' creditable military service with an additional $10.80 (was, $10.50) per month for each additional year of such creditable military service. Increases the cap on the total pension to $216 (was, $210) per month. Makes organizational and clarifying changes.

Applies to pension benefit amounts payable from the Pension Fund due to a member on or after January 1, 2026. Provides that if a member becomes eligible for a pension benefit from the Pension Fund on or before December 31, 2025, but the pension benefit amount is paid from the Pension Fund on or after January 1, 2026, then the pension benefit amount due to the member is the amount applicable to the pension benefit amount that was effective for each respective month to which the benefit applies.

Effective January 1, 2026.

Section 5.3

Amends GS 143-166.3 by increasing the amount of the death benefit payable when a person covered under the Public Safety Employees’ Death Benefit Act is killed or murdered in the line of duty, from $100,000, to $150,000.

Appropriates $1,260,750 in recurring funds for each year of the 2025-27 fiscal biennium from the General Fund to the Department of State Treasurer for benefits awarded for line of duty deaths under the Public Safety Employees' Death Benefits Act.

Effective retroactively to July 1, 2025, and applies to deaths occurring on or after that date.

Part VI.

Section 6.1

Requires OSBM to ensure that the appropriations made by this act are used only for those purposes.

Provides that if the Director of the Budget determines that funds appropriated to a State agency exceed the amount required by that agency for those purposes, the Director may reallocate those funds to other State agencies that received insufficient funds for the employee salaries or benefits as authorized by this act.

Prohibits using funds appropriated by this act to adjust the budgeted salaries of vacant positions, to provide salary increases in excess of those required by the General Assembly, or to increase the budgeted salary of filled positions to the minimum of the position's respective salary range.

Requires funds appropriated for employee benefits in excess of the amounts required to provide for employee benefits shall be credited to the Pay Plan Reserve.

Requires OSBM to report by May 1, 2026, to the Fiscal Research Division on the expenditure of funds for employee benefits under this Part and set out what must be included in the report.

Section 6.2

Provides that if this act and SL 2025-89 or GS 143C-5-4 conflict, then the provisions of this act prevail. Keeps the appropriations and the authorizations to allocate and spend funds in this act in effect until the Current Operations Appropriations Act for the applicable fiscal year becomes law, at which time that act will become effective and govern appropriations and expenditures. When the Current Operations Appropriations Act for that fiscal year becomes law, requires the Director of the Budget to adjust allotments to give effect to that act from July 1st of the fiscal year.

Section 6.3

Includes a severability clause.

Part VII.

Effective July 1, 2025.