The conference report to the 2nd edition removes the content of the previous edition and replaces it with the following. Makes conforming changes to the act's titles.

Part I. Disaster Relief

Subpart I-A. General Provisions

Section 1A

Entitles this part as the “Disaster Recovery Act of 2024—Part III.” Declares act’s intent that its appropriations and allocations are for maximum amounts necessary. Directs that savings must be effected where the total amounts appropriated or allocated are not required to implement the act. Defines affected area as the counties designated before, on, or after the effective date of the act under a major disaster declaration by the President of the United States under the Stafford Act (PL 93-288) as a result of Hurricane Helene. Also defines FEMA, Helene Fund (the Hurricane Helene Disaster Recovery Fund established in Section 4.1 of SL 2024-51), OSBM (Office of State Budget and Management), Recipient (a State agency or non-State entity, as those terms are defined in GS 143C-1-1 of the State Budget Act), Savings Reserve, and SERDF (the State Emergency Response and Disaster Relief Fund established in GS 166A-19.42). Specifies that this part applies to North Carolina counties in the affected area, unless otherwise provided.

Directs the State Controller to transfer $227 million from the Savings Reserve to the Helene Fund (“the Appropriated Disaster Funds”). Requires the funds to remain unspent until appropriated by an act of the General Assembly. States the General Assembly’s intent to review funding and to consider actions needed to address remaining unmet needs.

Subpart I-B. Education

Section 1B.1

Amends the employee compensation provision (Section 8.1(c) of SL 2024-51, as amended, by deeming public school employees and contractors to have worked for any scheduled instructional day from September 2024 through November 2024 (was, just September and October 2024) for missed days due to Hurricane Helene.

Section 1B.2

Amends Section 4A.4 of SL 2024-53 (concerning the tuition grant program at UNC Asheville for the spring semester of the 2024-25 academic year) so that UNC Asheville can use any remaining funds from the program after tuition grants have been made to all eligible students to help UNC Asheville, at the Chancellor's discretion.

Subpart I-C. Health and Human Services

Section 1C.1, 1C.3, 1C.4, and 1C.5

Extends the validity of the facility’s licensure from December 31, 2024, to March 1, 2025, and sets renewal application and renewal fee deadline, for those facilities for the 2025 calendar year of March 1, 2025, for the following facilities in the affected area:

1. Licensable facilities (defined) that hold a valid regular license for the 2024 calendar year to provide services for the care, treatment, habilitation, or rehabilitation of individuals with mental illness, intellectual or developmental disabilities, or substance use disorders;
2. Facilities that hold a valid, current registration issued by DHSR for multiunit assisted housing with services (defined);
3. Facilities that hold a valid adult care home or family care home (defined) license issued by DHSR.

Directs that for certified administrators (defined) of adult care homes (defined) who either work as administrators or reside in the affected area: (1) extends the validity of the certification, and the deadline for completing annual continuing education, from December 31, 2024, to March 1, 2025 and (2) for the 2025-2027 biennium, the deadline for certified administrators of adult care homes to submit renewal applications and pay renewal fees is March 1, 2025. Specifies that these extensions do not apply to administrators of family care homes (defined). 

Section 1C.2

Amends GS 153A-221 (pertaining to minimum standards for local confinement facilities) to authorize DHHS’s Division of Health Services Regulation (DHSR) to temporarily waive rules if any of the five listed emergency events occurs, including a declaration of a state of emergency by the Governor or a declaration of a national emergency by the President of the United States.

Subpart I-D. Agriculture and Natural and Economic Resources

Section 1D.1

Appropriates $2 million of the Appropriated Disaster Funds in nonrecurring funds for 2024-25 to the Department of Agriculture and Consumer Services (DACS) for technical support to soil and water conservation districts in the affected area, including the creation of time-limited positions.

Section 1D.2

Directs the State Controller to transfer $25 million from SERDRF to the Helene Fund for 2024-25 to DCAS for purposes in the affected area authorized under the Streamflow Rehabilitation Assistance Program created by Article 6 of GS Chapter 139. Prevents DCAS from spending any of appropriated SERDRF funds on any activities that will be, or will likely be, covered by federal funds. 

Section 1D.3

Defines development and development approval. Directs that for any development approval that is current and valid at any point during the period beginning January 1, 2024, and ending December 31, 2027, the running of the period of the development approval and any associated vested right under GS 160D-108 (concerning permit choice and vested rights) or GS 160D-108.1 (site-specific vesting plans) is suspended within the affected area during the period beginning January 1, 2024, and ending December 31, 2027. Directs that this should be construed or implemented to: (1) extend any permit or approval issued by the United States or any of its agencies or instrumentalities; (2) extend any permit or approval for which the term or duration of the permit or approval is specified or determined pursuant to federal law; (3) shorten the duration that any development approval would have had in the absence of this section; (4) prohibit the granting of such additional extensions as are provided by law;(5) affect any administrative consent order issued by the Department of Environmental Quality (DEQ) in effect or issued at any time from the effective date of the section to December 31, 2027; (6) affect the ability of a government entity to revoke or modify a development approval pursuant to law; or (7) modify any requirement of law that is necessary to retain federal delegation by the State of the authority to implement a federal law or program.

Provides that when a development approval that is contingent upon connection to a water supply system or a sanitary sewer system is suspended pursuant to the above paragraph and there is not sufficient supply or treatment capacity to accommodate requests for additional allocation, the local government that granted the allocation may reallocate reserved capacity from projects whose approvals are suspended but are not ready to proceed if the local government meets the listed requirements for an allocation plan and reallocation plan and does not reallocate capacity to exceed the amount of the reserved capacity. Provides for notice in the NC Register by each affected agency or subdivision of the State by the above provisions. Specifies that the notice requirement does not apply to units of local government. Provides for liberal construction of the above provisions pertaining to development and development approval.  

Section 1D.4

Makes any Improvement Permits, Construction Authorizations, Operations Permits, or Notices of Intent submitted under GS 130A-336.1 (alternative process for wastewater system approvals) or GS 130A-336.2 (alternative wastewater system approvals for nonengineered systems) issued for on-site wastewater systems located in the affected area that would otherwise expire, remain valid and unexpired for 10 years from the date of original permit issuance. Directs that all provisions Article 11 of GS Chapter 130A and rules adopted thereunder apply, including required inspections and enforcement authority for noncompliance. Specifies that the section is effective when it becomes law and applies to permits or authorizations valid in the affected area that were current or valid at any point during the period beginning January 1, 2024, through the effective date of the section.

Section 1D.5

Allows a supplier of water to temporarily operate a transient non-community public water system (as defined in 40 CFR 141.2) in the affected area, without having been issued an operating permit by DEQ, for up to 59 days if necessary to address an immediate public health or safety need. Incorporates the definitions from the NC Drinking Water Act (GS 130A-313). Requires the supplier provide notice to DEQ prior to operating any treatment that alters the physical, chemical, or microbiological characteristics of the water at a transient non-community public water system in the affected area without an operating permit. Authorizes DEQ to conduct inspections of the public water system and any required records to verify compliance with basic public health standards. Authorizes the supplier to begin operations on the next business day not sooner than 24 hours after submitting the notice unless DEQ objects. Requires the supplier to comply with the listed operating standards, unless waived by DEQ: (1) ensure the water source is free from contamination to the extent possible, (2) apply basic treatment methods, (3) conducted daily testing for specified conditions, and (4) at minimum, conduct weekly testing for total coliform bacteria.  Provides for notice to users by the supplier if any water quality risks are identified. Requires suppliers without an operating permit to cease operations within 59 days of commencing service, or upon receiving written notice from DEQ citing a public health risk, whichever is earlier. Requires the supplier to notify DEQ within seven days of ceasing operations. Clarifies that nothing herein should be construed to limit DEQ’s authority to revoke a supplier's temporary authorization under this section upon determining that a public water system poses an imminent threat to public health or safety.

Section 1D.6

Authorizes wastewater pump and haul systems permits issued by DEQ to be valid for twelve months if the permit holder complies with seven listed requirements, including that the permit holder is a temporary housing unit in the affected area. Allows for a one-time extension of no more than twelve months if DEQ determines that the permit holder has demonstrated extraordinary circumstances prevent the establishment of permanent wastewater management within the initial permit period and the permit holder is in compliance with the act’s listed requirements. Authorizes DEQ to conduct inspections of temporary housing units holding wastewater pump and haul system permits and to revoke a wastewater pump and haul system permit for noncompliance with applicable statutes or rules. Effective when the act becomes law and applies to permits issued on or after that date through March 1, 2025.

Section 1D.7

To the extent authorized by federal law, requires DEQ, the Sedimentation Control Commission, or a local government that administers a delegated erosion and sedimentation control program, as applicable, to waive the requirement that persons conducting land-disturbing activity in the affected area file an erosion and sedimentation control plan (Plan) for approval of the agency with jurisdiction, and obtain a General Permit NCG01000 (NCG01), prior to initiating land-disturbing activity. If the applicable agency with jurisdiction waives the requirement for an approved Plan prior to initiation of activities, directs that persons conducting such land-disturbing activities must: (i) install all erosion control measures required prior to initiation of land-disturbing activities; (ii) notify the agency with jurisdiction of the date on which land disturbing activity will be initiated; and (iii) submit a Plan to the agency with jurisdiction, for the agency's approval, within 30 days of initiation of the land-disturbing activity, and apply for a NCG01 after receipt of Plan approval. Notwithstanding a waiver for a submittal and approval of a Plan authorized by this paragraph, directs that all other provisions of Article 4 of GS Chapter 113A and rules adopted thereunder apply, including required inspections and enforcement authority for noncompliance. In addition to the definitions applicable to this part, directs that the definitions set forth in GS Chapter 113A apply in this section. Expires March 1, 2025.

Section 1D.8

Prevents a local government in the affected area from enforcing any ordinance regulating the removal, replacement, and preservation of trees on private property, including tree removal, trimming, or maintenance activities, or require a permit for those activities, on the portion of any  private property that is more than 10 feet from the property boundary.

Directs that the paragraph does not apply to any of the following: (1) an imminent threat to public safety, as determined by a certified arborist or other local authority or (2) areas where tree removal or maintenance activities are prohibited by State or federal law, including endangered species habitats, riparian buffers, and wetlands. Expires March 1, 2025.

Section 1D.9

Prevents local health departments from denying a homeowner in the affected area the right to connect temporary housing to an existing subsurface wastewater treatment and dispersal system, if the homeowner signs an affidavit developed by DHHS authorizing the use of the wastewater system with temporary housing for up to 12 months or until permanent housing is established, whichever occurs first. Directs that any homeowner that executes the DHHS affidavit, or any individual who visits, lives in, or resides at the property subject to the affidavit, will have no cause of action of any kind in any forum of this State against DHHS, its employees, agents, or contractors arising from or related to the homeowner's decision to connect to an existing subsurface wastewater treatment and dispersal system. Expires June 1, 2025.

Section 1D.10

Amends Section 4C.7 of SL 2024-53 (establishing a local government bridge loan program) as follows.  Requires that DEQ be cognizant of the emergency objectives underlying the loans and grants available from Wastewater and Drinking Water Reserves in using the $100 million appropriated to DEQ for the bridge loan program. Adds new terms nonprofit water corporation, operational capacity, and provider to the bridge loan program’s defined terms. Changes defined term federal disaster relief to federal or State disaster relief, and makes conforming changes. Extends the program to include nonprofit water corporations in addition to local governments.

Removes provision limiting loan availability only to the extent that other funding sources for emergency repairs are not reasonably available to the local government unit. Requires that the annual report required under Section 4C.7 of SL 2024-53 be included in DEQ’s required GS 159G-26 Water Infrastructure Fund annual report on November 1 of each year. Authorizes DEQ to adopt emergency rules (was, required DEQ to adopt such rules). 

Subpart I-E. Justice and Public Safety

Section 1E.1

Extends the expiration date for concealed handgun permit issued to a resident in the affected area with an expiration date on or after September 25, 2024, but no later than December 31, 2024, to March 1, 2025.

Subpart I-F. General Government

Section 1F-1

Amends Section 4E.5 of SL 2024-53 (concerning cashflow loans) as follows. Removes the Local Government Commission (LGC) as administrator of the loan program. Instead designates the Department of the State Treasurer (Treasurer) as administrator. Specifies that local governments are not required to get approval from the LGC in applying for a loan. Makes conforming changes.

Section 1F.2

Directs the State Controller to transfer $50 million from SERDRF from the OSBM Disaster Relief Reserve for allocation and appropriation to the Office of Recovery and Resiliency (ORR) to support homeowner recovery projects under the Rebuild NC program 2024-25. Directs the State Auditor to conduct a financial and performance audit of ORR by no later than July 1, 2025, and periodically thereafter as requested by the NCGA and Director of the Budget. Requires OSBM to perform ongoing financial monitoring of ORR for the duration of ORR’s operations. Requires OSBM to oversee ORR’s budget, expenditures, and obligations through its Office of Internal Audit or appropriate staff. In addition to the requirements of GS 147-64.5(a), requires the State Auditor to furnish copies of any and all audits performed under this section to the specified NCGA committee and the Fiscal Research Division within 30 days of the completion of each audit. Requires OSBM to submit a quarterly report on the ongoing financial monitoring of ORR to the specified NCGA and the Fiscal Research Division in each quarter that ORR is expending State or federal funds for storm recovery efforts. By December 31, 2024, requires ORR to enter into and sign the Subrecipient Agreements and proceed with the associated projects obligated in Round 3 of the Affordable Housing Development Fund program to (1) the Lumbee Tribe of North Carolina, (2) Pamlico County, (3) Scotland County, (4) the Town of Maysville, and (5) the Town of Beulaville.

Section 1F.3

Notwithstanding GS 143-138(d), Section 2 of SL 2013-118, or any rule to the contrary, directs that the 2024 North Carolina State Building Code (defined) will become effective July 1, 2025. Specified that this should not be construed to abrogate the duties of the Council (defined) during this delay, including finalizing its publication, providing technical assistance, and educating the public regarding changes to the North Carolina State Building Code. Expires July 1, 2025.

Section 1F.4

Authorizes the Office of the State Fire Marshal (OSFM) to adopt rules and prepare guidance for local governments enforcing the North Carolina State Building Code and the State of North Carolina Regulations for Manufactured Homes, that relate to the placement, construction, installation, and connection of temporary manufactured and modular dwellings. Provides for labels or seals of approval of temporary manufactured and modular dwellings acceptable to OSFM. Specifies that all temporary manufactured and modular dwellings bearing labels or seals are deemed to meet the requirements of the North Carolina State Building Code, except as may be required for the enforcement of the Code relative to utility service connections to temporary manufactured and modular dwellings and enforcement of local ordinances governing zoning, utility service connections, and foundation permits. Allows OSFM to also adopt rules to ensure that any person that places, constructs, installs, and connects a temporary manufactured and modular dwelling meets the manufacturer's installation instructions and applicable provisions of the North Carolina State Building Code and the State of North Carolina Regulations for Manufactured Homes. Defines temporary manufactured and modular dwelling as a manufactured housing unit that is designed for utilization as a temporary dwelling in the affected area. Requires OSFM to adopt emergency rules to implement these provisions. Expires on March 1, 2025.

Subpart I-G. Statewide

Section 1G.1

Allows DCAS to consolidate old capital project accounts into a single fund totaling no more than $210,000 to be used for facility repairs located in the affected areas. Specifies that those funds are appropriated for such purposes.

Subpart I-H. Transportation

Section 1H.1

Of the funds appropriated to the Department of Transportation (DOT), directs that $125 million from the from the Transportation Emergency Reserve will be used for repair and reconstruction of transportation infrastructure in the affected area. In the discretion of the Secretary of Transportation, the required transfer of funds from the Highway Fund to the Transportation Reserve may be delayed or suspended until July 30, 2027. Clarifies that no other provision of GS 136-44.2E (Transportation Emergency Reserve) is affected by this section.

Part II. Budget and Various Technical Corrections.

Subpart II-A. Education.

Section 2A.1

Appropriates $120,000 from the General Fund to the Department of Public Instruction (DPI) for FY 24-25 in recurring funds to be allocated to the NC School for the Deaf for legal and administrative services.

Section 2A.2

Appropriates $13,068,267 from the General Fund to UNC’s Board of Governors (BOG) for FY 24-25 in nonrecurring funds to adjust funds provided to constituent institutions, as determined by the enrollment  funding model for performance outcomes related to student success, affordability, and productivity.

Section 2A.3

Appropriates $574,578 from the General Fund to the UNC BOG for FY 2024-25 in recurring funds to adjust funds provided to constituent institutions, as determined by the enrollment funding model for changes in resident student credit hours.

Section 2A.4

Appropriates $7,837,646 from the General Fund to the UNC BOG for FY 2024-25 in nonrecurring funds to be allocated to offset enrollment-related funding losses experienced by the following constituent institutions of The University of North Carolina: East Carolina University ($1,364,971); UNC Asheville ($1.5 million); UNC Greensboro ($19,687); UNC Pembroke ($3,701,653); and Winston-Salem State University ($1,251,335).

Section 2A.5

Reduces the Future Building Reserves by $2,786,673 in recurring funds and $470,404 in nonrecurring funds for FY 2024-25. Then appropriates those funds from the General Fund to the UNC BOG for FY 2024-25 to operate and maintain Randall Library at UNC Wilmington and Joiner Hall and other buildings at the North Carolina School of Science and Mathematics (NCSSM) Morganton campus.

Section 2A.6

Allows the Chair of the UNC Board of Governors or their designee to sit as an ex officio voting member on the board of Project Kitty Hawk (was, just the chair) under Section 8.24 of SL 2021-180.

Section 2A.7
Expands the entities that may (1) establish a campus law enforcement agency and (2) employ campus police officers to include the governing board of any teaching hospital affiliated with but not part of any UNC constituent institution (currently, just UNC constituent institutions, the Board of Directors of the University of North Carolina Health Care System, or the Board of Directors of the North Carolina Arboretum). Allows those teaching hospitals to also assign those police officers to any other facilities within its healthcare system. Makes conforming changes. 

Section 2A.8

Appropriates $1.5 million from the General Fund to the UNC BOG for FY 2024-25 in recurring funds to be allocated to the North Carolina Collaboratory (Collaboratory) to establish and operate the Office of Learning Research (OLR), beginning in the 2024-2025 fiscal year with the purpose of identifying and evaluating the efficacy and efficiency of programs, activities, initiatives, procedures, and any other factors related to elementary and secondary education in the state.  Designates the Collaboratory as the administrator of the funds to be used for three listed purposes. Authorizes the Collaboratory to relocate the OLR within UNC Chapel Hill in consultation with the UNC System Office and the Provost at UNC Chapel Hill. Should that occur, requires the Collaboratory to continue to administer funds, oversee the research portfolio of the OLR, and report to the specified NCGA committee on the relocation within 60 days of relocation.  Requires all units of State and local government, including the State Board of Education (SBE), DPI, and public school units, to provide reasonable access to records, data, processes, personnel, and any other information deemed relevant by OLR or the Collaboratory, to the extent otherwise permitted under State and federal law, to carry out these provisions. By no later than July 1, 2025, requires the Collaboratory to report to the specified NGCA committee on the progress made in establishing and operating OLR. For each fiscal year OLR is in operation, requires the Collaboratory to include information on the activities of OLR from the prior fiscal year in its annual report.

Section 2A.9

Revises the membership requirements for the State Education Assistance Authority’s (SEAA) Board of Directors under GS 116-203 to allow for a member appointed by the UNC BOG to either be or have experience as a CFO or chief administrative officer from a nonpublic school receiving opportunity scholarship funds (currently, appointee must hold one of these roles at time of appointment). Allows for current appointees to the SEAA’s Board of Directors to continue to serve the remainder of their unexpired term. Effective July 1, 2024.

Part 2A.10

Amends Section 8A.6(h) of SL 2023-134 (FY 2023-24 Appropriations Act) to extend the domicile certification requirement to the SEAA and the SEAA’s verification requirements to the 2025-26 school year (currently, just the 2024-25 school year).

Subpart II-B. Health and Human Services

Section 2B.1

Appropriates $33.75 million from the General Fund to DHHS’s Division of Child Development and Early Education (DCD) FY 2024-25 in nonrecurring funds to continue the compensation grants portion of the child care stabilization grants through the third quarter at the current 2024-25 fiscal year level.

Section 2B.2

Extends the January 1, 2025, deadline in Section 9H.15(e) of SL 2023-134 by six months, to July 1, 2025, for DHHS to ensure that the State Office of Child Fatality Prevention is sufficiently staffed and prepared to carry out the powers and duties of the State Office to support a restructured Child Fatality Prevention System as set forth in GS 143B-150.27 and that any necessary agreements are in place. Extends (1) DHHS’s training and guidelines deadline and (2) the effective date of GS 7B-1413.5 (as enacted by Section 9H.15(f)) from July 1, 2025, to January 1, 2026. Extends the date of repeal of GS 7B-1404, 7B-1405, 7B-1406, 7B-1408, 7B-1409, 7B-1411, and 143B-150.20 (all concerning the NC Child Fatality Prevention System) from January 1, 2025, to July 1, 2025. Extends the remainder of effective date of Section 9H.15(f) from January 1, 2025, to July 1, 2025. Extends the effective date of GS 108A-15.20 (citizen review panels concerning the state plan for child abuse and neglect prevention and treatment) from January 1, 2025, to July 1, 2025.

Section 2B.3

Extends the following deadlines set forth in Section 9J.12(c) of SL 2023-134: (1) the finalized trauma-informed, standard assessment template from September 30, 2024, to August 30, 2025, and (2) the start date of the phased-in approach of the assessment from October 1, 2024, to January 30, 2026, with statewide operation of that assessment to now be completed by December 31, 2026 (currently, September 30, 2025).

Subpart II-C. Agriculture and Natural and Economic Resources

Section 2C.1

Amends the following appropriations:

1. In SL 2021-180 (FY 2021-23 appropriations), reallocates $3 million appropriated to the Town of Midland by Section 12.13(f)(39) to the Town of Mount Pleasant for water and wastewater infrastructure projects;
2. In SL 2021-180 (FY 2021-23 appropriations), authorizes funds allocated to Union County by Section 12.13(f)(63) of that act to also be used by the county for an expansion of the 12-Mile Creek water reclamation facility.
3. In SL 2022-74 (corrections to FY 2021-23 appropriations act) removes the requirement that the Town of Warsaw use the $7.5 million appropriated to it by Section 12.9(e)(87) of the act for wastewater capacity expansion.
4. In SL 2023-134 reallocates the $2,548,500 appropriated to the Town of Connelly Springs to Burke County for any water or wastewater project.
5. In SL 2024-1 (corrections to the FY 2023-24 appropriations act) changes one of the permitted uses of funds reallocated to OSMB to $44.55 million to provide grants to Rockingham County for water and wastewater projects (was, $23.55 million for such projects). Removes $21 million dollar allocation to Rockingham County for extension of water services from Reidsville toward the incorporated community of Ruffin.
6. Authorizes the City of Saluda and the Towns of Columbus and Tryon (the recipients) to use the funds by Section 4.2(h) of SL 2024-1 as amended, for either of the following purposes, apportioned among those purposes as the recipients may specify: (1) repayment of debt incurred by any of the recipients for the construction of a water or wastewater project or (2) any water or wastewater infrastructure project.

Section 2C.2

Increases the administrative spending cap for the Tobacco Trust Fund Commission under GS 143-717 from $375,000 to $485,000 annually.

Section 2C.3

Changes the effective date for new GS 74-55 (ticket price transparency) from January 1, 2025, to April 1, 2025.

Section 2C.4

Removes the effective date provisions for the amendments to GS 113A-118 (concerning Coastal Area Management) under Section 4C.11 of SL 2024-53 and GS 113A-115.1(f1) (concerning dune building and beach planting projects) under Section 4C.12 of SL 2024-53 so that those changes are now retroactively effective to when SL 2024-53 became law (October 25, 2024).

Section 2C.5

Reallocates funds from the Town of Lake Waccamaw to Columbus County for pedestrian and bike trails by Section18.1 of SL 2022-6 to the Town of Lake Waccamaw for dam construction and associated activities.

Subpart II-D. Justice and Public Safety

Section 2D.1

Amends GS 14-4(c) (affirmative defense to misdemeanor violation of local ordinances) so that the person must now provide documented proof of good faith efforts to seek assistance related to unemployment, homelessness, mental health, or substance abuse that might relate to the person's ability to comply with the local ordinance (was, just proof). Increases the time that the person must demonstrate that no new alleged violations have occurred from 30 days to 12 months from the date of the alleged violation in order to establish that prong of the affirmative defense. Effective January 1, 2025, and applies to offenses committed on or after that date.

Section 2D.2

Reduces the funding appropriated to the Administrative Office of the Courts (AOC) in Section 2.2(d) of SL 2023-134 by $2.5 million. Reverts those funds to the Information Technology Reserve (ITR) to remain unspent until authorized by an act of the NCGA. Appropriates $2.5 million to AOC from the General Fund in recurring funds for FY 2024-25 to be used to convert time-limited eCourts technology positions into permanent positions.

Section 2D.3

Appropriates $8.2 million to AOC’s office of Indigent Defense Services (IDS) from the General Fund in nonrecurring funds for FY 2024-25 to be used to provide timely payments to private assigned counsel representing indigent defendants.

Section 2D.4

Amends GS 7A-45.1 (concerning special judges) to authorize the General Assembly to appoint, through enactment of a bill, two special superior court judges nominated by the Speaker of the House and President Pro Tempore of the Senate, respectively, to serve terms expiring at the earlier of (1) eight years from the date that each judge takes office or (2) the date of the judge's death, retirement, resignation, or removal from office. Effective January 1, 2025. Provides for required contents of the appointing bill, and for reappointments upon the expiration of each judge’s term. Directs that a special superior court judge takes the same oath of office and is subject to the same requirements and disabilities as are or may be prescribed by law for regular judges of the superior court, save the requirement of residence in a particular district. Appropriates $287,486 to AOC from the General Fund in recurring funds and $14,452 in nonrecurring funds for FY 2024-25 to be used to hire two full-time special superior court judge positions for these new judgeships.

Section 2D.5

Removes judicial divisions in superior court district 10E (comprising parts of Wake County) and in superior court district 31D (comprising parts of Forsyth County) in GS 7A-41. Makes conforming changes. Directs that in a future act of the NCGA, the voters assigned to those districts will be reassigned to other superior court districts located within the same county, respectively, of the repealed districts. Effective January 1, 2029, with elections conducted in 2028 to be held accordingly.

Subpart II-E. General Government

Section 2E.1

Adds the following amended directed grants to be allocated by OBSM under Section 6.1(a) of SL 2024-1 for FY 2023-24:

• The directed grant to the Town of Yanceyville for $250,000 in nonrecurring funds for the fire department to construct a substation at the municipal airport will instead be used for general water and sewer needs.
• The directed grant to the Town of Waxhaw for $150,000 in nonrecurring funds for crosswalk construction and related equipment needs for Cuthbertson High and Middle Schools may also be used for sidewalk construction on Kensington Drive between the new town hall and Kensington Elementary School.
• The directed grant to Place of Refuge of Gaston County, Inc., for $100,000 in nonrecurring funds will instead  be provided to the Gaston County Sheriff's Office.
• The directed grant to the North American Mission Board of the Southern Baptist Convention, Inc., for $50,000 in nonrecurring funds will instead be provided to The Oar Foundation, Inc.
• The budgeted receipts from the ARPA Temporary Savings Fund to provide funds to the Lincoln Community Health Center, Incorporated, for $500,000 in nonrecurring funds to be used for operational needs, including staff.
• The directed grant to The Salvation Army for $50,000 in nonrecurring funds will be provided to the location in Winston-Salem.
• Funding provided to Fayetteville State University for $2.5 million in nonrecurring funds for a risk management school will not revert on December 31, 2024, but will remain available until June 30, 2026.
• The directed grant to Life Choices Rowan for $250,000 in nonrecurring funds for 2023-24 for medical equipment and products for clients may also be used for renovation.
• The directed grant to the Town of Red Springs $2 million in nonrecurring funds to support the Emerging Technology Institute will instead be provided to the Emerging Technologies Institute.
• The directed grant to The Arc/Alamance County, Inc., for $20,000 in nonrecurring funds for playground equipment will instead be provided to the City of Burlington.

Changes the grantee of the $250,000 directed grant funds appropriated to OSBM from the Regional Economic Development Reserve from Person County to Person-Caswell Lake Authority in Section 24.7 of SL 2023-134.

Section 2E.2

Appropriates $250,000 to OAH from the General Fund in nonrecurring funds for FY 2024-25 to be used to offset litigation expenses incurred by the Rules Review Commission in the Commission's retention of private counsel.

Section 2E.3

Of the $23.52 million from the nonrecurring funds for FY 2024-25 appropriated to the OSBM-Special Appropriations to be used to provide a directed grant to Burke Partnership for Economic Development, Inc. (Burke Partnership), a nonprofit corporation, for acquisition and capital costs associated with constructing a megasite in western North Carolina, carves out $20 million to be used instead for site development and pre-construction and construction activities at the Burke Business Park located in Burke County, in consultation with the Department of Commerce (DOC). Directs that funds provided to Burke Partnership in this paragraph will be recouped by Burke Partnership, in its entirety within 36 months of the date that the funds are used or otherwise obligated. Provides for a project management and design agreement between Burke County, DOC, and Burke Partnership. Directs that no funds may be used by Burke Partnership after December 31, 2027. Provides a schedule for recoupment along with priority of distribution of proceeds derived from the sale or lease of any buildings created with funds designated above. Directs that Burke Partnership is liable for any deficiency in the recoupment of funds used or otherwise obligated by it. Requires, by no later than December 1, 2024, and quarterly thereafter until December 31, 2027, for Burke Partnership to report on the use of funds provided to it under this section to the chairs of the specified NCGA committees and the Fiscal Research Division.  Requires DOC to report if a clawback is triggered.  Specifies that the $20 million will no longer be available after December 31, 2027, or if the agreement discussed above is terminated earlier than that by Burke Partnership.  Specifies that those funds will instead be used by Burke Partnership for acquisition and capital costs associated with constructing a megasite in western North Carolina. Funds repurposed by this subsection that are  not expended or encumbered by December 31, 2030, will revert to the Regional Economic Development Reserve. Sets forth rules of construction related to reversion dates and other grant requirements set forth in SL 2023-134.

Section 2E.4

Amends the limitations on practices and agreements under the NC Consumer Finance Act (GS 53-180) to set forth rules related to loan modification or restructuring including, that the loan may be modified or restructured after its maturity date so long as it doesn’t exceed the 8% per annum limit set forth in GS 53-173. Provides for written notice of loan changes. Specifies that modification of payment amounts for the term of a loan is not subject to the 8% limit, but cannot provide for a balloon payment.  Applies to loan contracts modified or restructured on or after the act becomes law.  Amends GS 53-178 (pertaining to splitting contracts and void contracts) so that all balances due to a licensee from any person as a borrower or as an endorser, guarantor or surety for any borrower  or otherwise jointly or severally, will be considered a part of any loan being made by a licensee to such person for the purpose of computing interest or charges, or exceeding the maximum loan amount established in G.S. 53-176(a) (installment loans) (currently, maximum amount of $15,000). Clarifies that nothing herein invalidates or impairs a loan modification or restructuring that occurred prior to the act’s effective date.

Section 2E.5

Adds new GS 10B-73 allowing any emergency video notarizations performed in line with GS 10B-25 as codified on June 30, 2024 or witnessing  performed in line with Article 3 of CS Chapter 10B as codified on June 30, 2024, to be validated so long as the notarial act was performed July 1, 2024, through September 8, 2024.

Section 2E.6

Amends the membership of the Building Code Council under GS 143-136, as amended, so that attorney member specializing in construction law appointed upon recommendation of the Speaker of the House is replaced with a design professional licensed in North Carolina with expertise and experience in the design of structures or buildings subject to the North Carolina Building Code. Effective January 1, 2025.

Subpart II-F. Information Technology (Reserved)

Subpart II-G. Salaries and Benefits

Section 2G.1

Corrects a statutory citation in Section 2(b) SL 2024-42 (concerning benefits for charter school employees).

Subpart II-H. Capital

Section 2H.1

Amends the following grants allocated from the State Capital and Infrastructure Fund notwithstanding any provision of law or the Committee Report described in Section 43.2 of SL 2021-180 to the contrary:

• The grant to Fayetteville Technical Community College for a new regional fire training center for $10 million for 2022-23 will instead be used as follows: (1) $3 million will be used for the new Fayetteville Technical Community College Regional Fire Training Center and (2) $7 million will be used for the Fayetteville Technical Community College Regional Truck Driver Training Center.
• The grant to Burke County for a regional substance abuse treatment facility for $3.25 million in nonrecurring funds for 2021-22 will instead be provided as a grant to Partners Health Management, a local management entity/managed care organization, for the construction, planning, and operation of a substance abuse facility in Burke County.

Directs that the grant allocated from the State Capital and Infrastructure Fund for $1.5 million in nonrecurring funds for the 2023-2024 fiscal year to Montgomery Community College for capital improvements related to its new dental hygienist program will instead be used for capital improvements or equipment for the dental and nursing programs at Montgomery Community College notwithstanding any provision of law or the Committee Report described in Section 43.2 of SL 2023-134 to the contrary.

Section 2H.2

Reduces the $2.3 million in recurring funds for FY 2024-25 for Future Building Reserves, notwithstanding any provision of law or the Committee Report described in Section 43.2 of SL 2023-134 to the contrary.  Appropriates from the General Fund to the Office of the State Fire Marshal for FY 24-25 $2.3 in recurring funds to operate and maintain a training facility.

Section 2H.3

Directs that the $8 million in funding allocated from the State Capital and Infrastructure Fund to UNC Wilmington in nonrecurring funds for the 2023-2024 fiscal year will be for the planning and design of the I.S.A.T. Building and related capital improvements or equipment. Replaces the UNC Wilmington building assigned project code UNC/WIL23-4 under Section 40.1(a) of GS 2023-134 from the Health Education Building to the Integrated Science and Technology Building. 

Section 2H.4

Directs that notwithstanding the Committee Report described in Section 43.2 of SL 2023-134, funds transferred from the ARPA Temporary Savings Fund to the State Capital and Infrastructure Fund to provide funds to the Northern Regional Foundation for capital improvements or equipment at Northern Regional Hospital may also be used for the retirement of debt incurred for capital projects by the Foundation or the Hospital between January 1, 2020, and October 3, 2023.

Section 2H.5

Amends Section 40.1 of SL 2023-134 (concerning project TRAN23) so that the North Carolina Global TransPark Authority (Authority) will repay the total amount of $350 million intended to be allocated from the State Capital and Infrastructure Fund for the  project in an amount of no less than $1 million and up to $15 million annually beginning with the 2026-2027 fiscal year (currently, $15 million annually commencing on the first year the federal government agency takes occupancy of the facility under the terms of the intergovernmental services agreement). Beginning with the 2034-2035 fiscal year, directs the Authority to repay the balance of funding allocated for the project in an amount of no less than $15 million annually.

Section 2H.6

Appropriates from the State Capital and Infrastructure Fund to NCSU $5 million in nonrecurring funds for FY 2024-25 to be used to assess the costs of rehabilitating or replacing Poe Hall.

Section 2H.7

Appropriates from the State Capital and Infrastructure Fund to the Department of Natural and Cultural Resources (DNCR) $5.2 million in nonrecurring funds for FY 2024-25 to be used by the named grantees for the listed purposes. 

Subpart II-I. Transportation

Section 2I.1

Directs that funds allocated for airport improvements on or after July 1, 2019, by Section 4.7 of SL 2019-231, Section 2.2(j) of SL 23 2023-134, or any other act of the General Assembly for projects that are active as of November 24, 2024, do not revert but will remain available to expend until completion of the improvement.

Section 2I.2

Directs that of the $2 million in nonrecurring funds for FY 2023-24 allocated for the construction of a pedestrian bridge over Highway 1 at the Rockingham Speedway in Richmond County $1.7 million will be allocated as a grant to the  Rockingham Dragway and $300,000 will be allocated as a grant to the Rockingham Speedway, all to be used for facility improvements.

Subpart II-J. Finance

Section 2J.1

Repeals Section 22 of SL 2024-45 (pertaining to additional means of notice to advertise property tax liens).

Subpart II-K. General Provisions

Section 2K.1

Directs that the funds allocated by Section 5.6(f)(16)a. of SL 2023-134 to the OSBM to provide a directed grant to Pilot View Resource Conservation and Development, Inc., for stormwater and stream rehabilitation is instead allocated to the Davie County Economic Development Commission, Inc., as a directed grant for the same purposes.

Part III. Various Law Changes.

Subpart III-A. Elections

Section 3A.1.

Repeals Part I of SL 2023-139 (transferring the State Board of Elections to the Secretary of State).

Section 3A.2

Effective July 1, 2025, administratively transfers the State Board of Elections (Board) from the Secretary of State to the Department of the State Auditor (Auditor). Specifies that the transfer will have all the elements of a Type II transfer, as described in GS 143A-6 (i.e., the Board will be administered under the direction and supervision of that principal department (i.e., the Auditor), but will exercise all its prescribed statutory powers independently of the head of the principal department, except that the budgeting functions of the Board will be performed under the direction and supervision of the Auditor. 

Directs that no action or proceeding pending on July 1, 2025, brought by or against the Board will be affected by the act. Allows pending business to be completed after the transfer. Specifies that the transfer will not affect or abate any ongoing investigation or audit and that prosecutions for offenses or violations committed before July 1, 2025, are similarly not affected or abated by the act. Provides for rules and forms adopted by the Board to remain in effect until amended or repealed. Repeals GS 163-28 (establishing the Board as an independent agency).

Effective July 1, 2025.

Section 3A.3

Changes the appointment authority of members to the Board from the Governor to the Auditor. Amends GS 163-19 (appointments, terms of office, vacancies and oaths of office for the Board), as follows.  Changes the Board members’ start term to May 1 of the year following election of the President of the United States (currently, every four years after May 1, 2019). Specifies that original appointments and appointments resulting from vacancies must be made from the lists provided by the State party chair as directed in GS 163-19 (was, just the party chair). Limits terms to two full terms (was, just two terms). Makes technical and conforming changes.

Makes technical, conforming, and conforming changes to GS 163-20 (meetings of the Board). Makes conforming changes to GS 163-22 (powers and duties of the Board).

Makes technical changes to GS 163-30 (concerning county boards of elections). Changes the start date of each county board member to the last Tuesday in June of each odd-numbered year (currently, appointed for two-year terms with no specification on which year the appointment starts). Changes the member-appointing authority from the Governor to the State Auditor.

Directs that the current terms of office of the members of the Board terminate on April 30, 2025, and members will be appointed to the Board in accordance with GS 163-19, as amended by the act, for a term to begin May 1, 2025. Directs that the current terms of office of the members of the county boards of elections will terminate on June 24, 2025, and members of each county board of election will be appointed in accordance with GS 163-30, as amended by the act, for a term beginning on June 25, 2025, and expiring on July 19, 2027.

Repeals Section 2.1 (changes to GS 163-19), Section 2.2 (changes to GS 163-20), Section 2.5 (GS 163-27), Section 4.1 (changes to GS 163-30), Part V (conforming statutory changes), Section 8.1 (pertaining to election of Board chair), Section 8.2 (pertaining to election of chair of county boards), and Section 8.3 (pertaining to section of Executive Director of SL 2023-139).

Section 3A.4

Shortens the deadline for a voter to correct a registration form under GS 163-82.4(f) from 5:00 pm on the day before the county canvass to 12:00 pm on the third business day after the election. Makes conforming changes. Requires precinct officials to maintain a log under GS 163-166.8 of persons entering voting precincts not seeking to vote on a form provided by the Board.

Amends requirements for voters registering by mail under GS 163-166.12 by setting a deadline of 12:00 pm on the third business day after the election for a voter to provide identification when the information they provided when registering that pertains to their driver’s license number, Social Security information does not match in the information in the computer validation. Now requires all absentee ballots submitted without required identification be treated as a provisional ballot (was, just mailed in absentee ballots). Makes conforming changes. 

Shortens the deadline for a voter who had to vote by provisional ballot due to lack of required identification to bring an acceptable form of photo identification to the county board so that their provisional ballot is counted under GS 163-166.16 from end of business on the day before the county canvass to 12:00 pm on the third business day after the election.

Shortens the deadline for a county board to count a provisional ballot under GS 163-182.2 if it finds that the voter was (1) was registered in the county, (2) voted in the proper precinct, and (3) was otherwise eligible to vote from before the canvass to 5:00 pm on the third business day after the election. Makes conforming changes.

Amends GS 163-230.1 (simultaneous issuance of ballots with application) as follows. Changes the deadline for a voter submitting a request for an absentee ballot to the county board to no later than 5:00 pm on the second Tuesday before the election (was, 5:00 pm the Tuesday before the election). Changes the timeframe for a person to submit a request to vote by absentee ballot due to illness or disability to starting after 5:00 pm on the second Tuesday before the election and ending not later than 5:00 pm on the last business day before the election (was, starting after 5:00 pm on the Tuesday before the election and ending at 5:00 pm on the day before the election). Changes the date for approval of a submitted absentee ballot to the county board’s next official meeting prior to election day after the ballot has been submitted (was, just next official meeting). Shortens the deadline for an absentee voter to cure any deficiencies in the ballot from end of business on the business day before the canvass conducted by the county board is held to 12:00 pm on the third business day after election. Makes technical, clarifying, and conforming changes. 

Amends GS 163-234 (counting absentee ballots by county boards) as follows. Removes requirement that absentee ballots received prior to election day be counted on election day. Instead those ballots are counted at 5:00 pm on election day in the county board office or other public counting location. Requires that the count of the ballots will be continuous until completed, and the members cannot separate or leave the counting place except for unavoidable necessity. Removes provisions authorizing the counting of absentee ballots on the day of canvass. Now requires the county boards to meet after the day of the election and prior to the day of canvass to count absentee ballots that were received in precincts where every poll’s closing time was extended by court order or the State Board or where the absentee ballots must be counted to comply with federal law or the Uniform Military and Overseas Voters Act (UMOVA).  Requires the county board to announce a tally of the absentee ballot votes by no later than 5:00 pm on the third business day after the election, except for those subject to challenge or that fall under the ambit of UMOVA. Makes conforming, clarifying, and technical changes. Effective January 1, 2025, and applies to elections conducted on or after that date.

Section 3A.5

Amends GS 163-278.19B (political party headquarters building funds) so that those funds can be used to fund legal actions (defined) or to make a legal expense donation to a legal expense fund as set forth Article 22m of GS Chapter 163. Makes organizational, technical, and conforming changes. Makes conforming change to GS 163-278.316 to account for changes to GS 163-278.19B. 

Effective January 1, 2025, and applies to donations made and expenses paid on or after that date.

Subpart III-B. General Government

Section 3B.1

Amends GS 120-122 by requiring the Governor, when there is a vacancy in any office subject to appointment by the NCGA upon recommendation of the Speaker of the House, upon the recommendation of the President Pro Tempore of the Senate, or upon recommendation of the President of the Senate, to appoint the person recommended within 15 days (was, either appoint the recommended person or inform the officer who made the recommendation that he rejects the recommendation within 30 days). Provides that failure to act in 15 days is deemed to be an execution of the appointment. Makes conforming changes.

Amends GS 143B-9, which addresses the appointment of the head of principal State departments to specify that senatorial advice and consent is limited to the remainder of the term the Governor is serving at the time it is given unless: (1) the person was appointed by the Governor and received Senatorial advice and consent as the head of the same principal State department during that Governor's immediately preceding term; (2) the person continues to serve in the same position; and (3) the Senate has not adopted a simple resolution specifically disapproving the person during the first 90 legislative days of the first regular session commencing in the calendar year after the Governor's reelection.  Defines legislative day as a day on which the Senate convenes in regular session. Specifies that a person is no longer eligible to continue to serve after the date on which the Senate adopts a simple resolution under this provision. Also amends the statute to make technical, clarifying, and organizational changes.

Section 3B.2

Amends GS 120-21.1 to include all of the parking spaces in State Parking Deck 65 (under the Halifax Street Mall), instead of just the upper level, in the definition of State legislative buildings and grounds.

Section 3B.3

States the purpose of the Section as correcting a misapprehension of the powers conferred to the Governor under Article 1A of Chapter 166A of the General Statutes, entitled "North Carolina Emergency Management Act,"  which does not allow for the Governor to waive, modify, suspend, or fail to enforce or execute any provision of the General Statutes of North Carolina, including the provisions of Chapter 96, entitled "Employment Security Law," unless specifically and expressly prescribed by general law enacted by the General Assembly. Amends GS 166A-19.2, as amended, by adding that nothing in Article 1A (North Carolina Emergency Management Act) authorizes or empowers the Governor or their designee to waive, modify, suspend, or fail to enforce or execute any provision of GS Chapter 96. Makes additional conforming and organizational changes.

Applies to exercises of power on or after March 1, 2025. 

Subpart III-C. Judiciary

Section 3C.1

Changes the appointment process for vacancies on the Supreme Court and Court of Appeals in GS 163-9(a) by requiring the Governor to select a new appointee from a list of qualified persons provided by the executive committee of the political party that the outgoing justice or judge was affiliated with when they were elected. If the political party does not provide a recommendation within 30 days, or if the justice or judge was not affiliated with a political party when elected, the Governor may appoint any qualified person. Defines “qualified person” for purposes of the section as a resident of North Carolina who is authorized to practice law in the state. Amends GS 163-9(b) to clarify that the Governor may appoint any qualified person to fill a superior court vacancy and reorganizes existing language into subsections (b) and (b1). Specifies that if any vacancy on the Supreme Court or Court of Appeals occurs before the effective date of the act, the relevant political party has 30 days from the effective date to provide a list of qualified persons to the Governor. Applies to appointments made on or after the effective date of the act.

Section 3C.2

Abolishes the North Carolina Courts Commission by repealing Article 40A of GS Chapter 7A and reverts all unexpended appropriations to the General Fund.

Section 3C.3

Gives the Chief Justice of the Supreme Court the authority to select the senior resident superior court judge in GS 7A-41.1 for districts that have more than one resident superior court judge. Specifies that the senior resident superior court judges serve in that capacity at the pleasure of the Chief Justice. Outlines a succession procedure for senior resident superior court judges who decline the authority vested in them. Allows the Chief Justice to determine that a senior resident superior court judge is incapacitated and provides for an acting replacement. Specifies that all senior resident superior court judges serving in that capacity on the effective date of the act are deemed to be serving at the pleasure of the Chief Justice.

Subpart III-D. Attorney General

Section 3D.1

Amends GS 1-72.3 (State a party to certain actions) to make the representation of the Attorney General subject to the provisions of GS 1-72.2 (Standing of legislative officers) and GS 120-32.6 (Certain employment authority).

Repeals GS 62-20 (Participation by Attorney General in Commission proceedings), which permits the Attorney General to intervene in proceedings before the Utilities Commission and state and federal courts in matters affecting public utility services when they deem it to be in the public interest. Amends GS 62-15(g) to remove the obligation of the Utilities Commission executive director to employ the Public Staff to assist the Attorney General upon request. Makes corresponding changes throughout GS Chapter 62 to remove references to the Attorney General.

Amends GS 114-2(1) to make the Attorney General’s duty to defend all actions in the appellate courts subject to the provisions of GS 1-72.2 (Standing of legislative officers) and GS 120-32.6 (Certain employment authority). Removes GS 114-2(8), which in subparagraph a. authorizes the Attorney General to intervene in any proceedings in courts or before regulatory agencies when they deem it to be in the public interest and in subparagraph b. requires state agencies to furnish copies of any proceedings which will affect a substantial number of North Carolina residents to the Attorney General and permits the Attorney General to intervene in those proceedings if it is in the public interest.

Amends subsection (a) of GS 114-2.3 (Use of private counsel limited) to allow the Judicial Department and agencies under the control of members of the Council of State to retain private counsel without obtaining written permission from the Attorney General. Creates new subsection (e) to require the Attorney General to report to GovOps by January 1 and July 1 of each year on all contracts between the Attorney General and private counsel for assistance in any of the Attorney General’s statutory duties.

Creates new GS 114-2.8 (Limitation on participation in foreign litigation), prohibiting the Attorney General from advancing an argument in any state or federal court in another state that would result in the invalidation of any statute enacted by the General Assembly.

Amends GS 120-32.6 subsection (b) to specify that when the General Assembly is participating on behalf of the State of North Carolina in an action in any state or federal court, the Attorney General cannot take any position on behalf of the State that is contrary or inconsistent with the General Assembly’s position. Amends subsection (c) to provide that the lead counsel designated by the General Assembly in any action where it is participating as the State of North Carolina has the final decision-making authority on the positions to be taken and representation to be provided for the State.

Amends GS 135-6(u) to remove references to GS 114-2.3 and GS 147-17 in the provision authorizing the Treasurer to retain private counsel.

Amends GS 147-17(a) to allow the Judicial Department and agencies under the control of members of the Council of State to retain private counsel without obtaining approval from the Governor.

Section 3D.2

Creates new GS 7A-343.7 (Legal services for the Judicial Branch), which allows the director of the Administrative Office of the Courts (AOC Director) to employ staff counsel or private counsel to provide legal services and represent entities, current and former officials, and employees of the Judicial Branch in actions involving their official roles or duties. Requires the AOC Director to determine that none of the conditions in GS 143-300.4(a) (regarding grounds for refusing to defend an employee) apply before providing litigation services, requires the AOC Director to report the litigation to the Attorney General if the amount at issue exceeds $1 million or if settlement or resolution is $75,000 or more, and provides for the payment of judgments and settlements under GS 143-300.6(a). Specifies that when the Attorney General is providing representation, any compromise or settlement involving a Judicial Branch employee or entity must be approved by the employee or entity, and if payment of public money is involved, also approved by the AOC Director, but the approval of the Attorney General is not required. Exempts counsel employed or retained under this section from the requirements of GS 114-2(1)-(2) (regarding the duty of the Attorney General to defend actions and represent State parties), GS 114-2.3 (Use of private counsel limited), GS 143C-6-9(b) (prohibiting the use of lapsed salary savings for litigation services provided by private counsel) and GS 147-17(a)-(c1) (requiring the approval of the Governor for private counsel, making the Attorney General counsel for all agencies, and limiting the use of state funds for litigation services from private counsel). Makes coverage under the section excess coverage over commercial liability insurance. Provides that communication and documents made during the provision of legal services under the section are not public records under GS 132-1. Supplies definitions for the section.

Creates new subsection (d) in GS 114-2.2 (Consent judgments), which exempts consent judgments entered into by entities, officers, and employees of the Judicial Branch from the requirement that the consent judgment must be signed by the Attorney General to be effective, and instead requires the signature of the AOC Director. Amends GS 114-2.4 (Settlement agreements) to similarly exempt proposed settlements of $75,000 or more for Judicial Branch entities, officers, and employees from Attorney General review, and requires the AOC Director or their designee to approve settlements that require the payment of state funds.

Amends GS 143C-6-9(b) to clarify the lapsed salary savings limitations of the subsection do not apply to legal services provided to the Judicial Branch under newly created GS 7A-343.7(a).

Amends GS 7A-343(17) to specify that the AOC Director may employ staff counsel or retain private counsel to provide legal services for the Judicial Department and approve expenditures of lapsed salary savings for legal services.

Section III-E. State Highway Patrol

Section 3E.1

Establishes the State Highway Patrol (SHP) as a cabinet-level department and transfers, vests, and consolidates all functions, powers, duties, and obligations vested in the SHP under the Department of Public Safety (DPS) within the SHP as a principal department. Makes conforming changes to GS 143B-2 and GS 143B-6. Adds new Article 17 to GS Chapter 143B. Recodifies specified sections of Article 4, GS Chapter 20 and GS Chapter 143B as specified sections under new Article 17, GS Chapter 143B.

Effective on the date the act becomes law, amends GS 126-5(c1), exempting from the State Human Resources Act, except Articles 6 and 7 (Equal Employment and Compensation Opportunity; Privacy of State Employee Personnel Records), up to 10 SHP employees whom the SHP Commander designates by letter to the Director of the Office of State Human Resources.

Transfers, vests, and consolidates all functions, powers, duties, and obligations of the State Capitol Police Division of DPS within the SHP. Recodifies Subpart B, Part 4, Article 13 of GS Chapter 143B and GS 143B-911 as specified sections under new Article 17, GS Chapter 143B.

Transfers and vests to SHP all statutory authority, powers, duties, and functions of DPS for the regulation and enforcement of commercial motor vehicles, oversize and overweight vehicles, motor carrier safety, and mobile and manufactured housing. Deems SHP a continuation of the transferred portion of DPS for purposes of succession to all rights, powers, duties, and obligations of DPS currently performed by the Motor Carrier Enforcement Administration Section located within SHP under DPS. Deems all equipment, supplies, personnel, and other properties rented or controlled by DPS for the regulation and enforcement of commercial vehicles, oversize and overweight vehicles, motor carrier safety, and mobile and manufactured housing to be administered by SHP.

Transfers to SHP all sworn law enforcement personnel located in the Department of Transportation (DOT), Division of Motor Vehicles License and Theft Bureau (Division), including all personnel positions, salaries, property and allocated funds for such personnel. Transfers to SHP all statutory authority, powers, duties, and functions statutorily assigned to the Division required to be performed by sworn law enforcement personnel. Deems SHP a continuation of the transferred portion of the Division for the purpose of succession to all rights, powers, duties, and obligations exercised by the Division on behalf of the transferred portion. Deems all equipment, supplies, or other properties rented or controlled by the Division for the use or benefit of sworn law enforcement personnel to be administered by SHP.

Amends sections recodified as new Article 17, GS Chapter 143B as follows. Eliminates provisions providing for the Secretary of Public Safety to have supervision, direction and control of the State Highway Patrol Division; Governor’s appointment of the Division Commander; and Governor’s approval of additional subordinate officers and members of the State Highway Patrol. Instead establishes the Commander as the head of SHP. Appointment of the Commander by the Governor is for a term of five years and subject to confirmation by joint resolution of the NCGA. Describes the procedure for appointment and filling any vacancy. Deems the powers and duties of the chiefs, directors, and the divisions of SHP to be subject to the direction and control of the Commander.

Lists six duties of SHP, including (1) to plan and direct a coordinated effort by the law enforcement agencies of State government and to ensure maximum cooperation between State and local law enforcement agencies in the fight against crime and (2) to develop a plan for a coordinated and integrated electronic communications system for State government and cooperating local agencies, including coordination and integration of existing electronic communications systems.

Deems the Commander to have all powers and duties conferred by the laws of the State and the Constitution and delegated by the Governor, and lists four specific powers and duties including: (1) providing assistance to State and local law enforcement agencies, district attorneys, and judges, at their and the Governor’s request; (2) adopting rules and procedures; (3) adopting rules required for federal grants for criminal justice purposes and for implementation of the regulatory and enforcement duties assigned to SHP; and (4) appointment of a Chief of the State Capital Police Division. Makes the Commander rather than the Secretary of Public Safety responsible for appointment of SHP members, subject to the Governor’s approval. Transfers all administrative functions, including reporting, to the Commander from the Secretary of Public Safety. Removes the Secretary of Public Safety from the persons who may hold supervisory positions over sworn members of SHP. Makes conforming changes throughout new Article 17, GS Chapter 143B.

Deems positions exempted with the State Highway Patrol under DPS, the State Capitol Police, and the Division of Motor Vehicles (DMV) by the Governor and transferred to SHP by this act no longer exempt on the date the act becomes law, unless exempted by the Commander pursuant to new authority under GS Chapter 126, as amended.

Directs SHP to adopt or amend rules consistent with the act. Permits SHP to use the procedures generally limited to the adoption of temporary rules in GS 150B-21.1 to adopt or amend rules as required by the act.

Effective on the date the act becomes law, directs DMV to consult with SHP and review the current statutory responsibilities assigned to DMV that are being performed by the Division to determine those performed by sworn law enforcement personnel to make recommendations for statutory changes necessary to place those responsibilities with SHP. Directs DMV to report to the specified NCGA committee by March 1, 2025.

Authorizes SHP to complete transitional training for law enforcement transferred from the Division to become State Troopers.

Effective on the date the act becomes law, mandates the Commander of the State Highway Patrol serving on November 18, 2024, to continue to serve as Commander until July 1, 2025, and through the first five-year term of the Commander of the new SHP department, beginning July 1, 2025, without nomination of the Governor or confirmation by the NCGA, absent vacancy from death, resignation, or physical or mental incapacity.

Makes the above provisions effective July 1, 2025, except as otherwise provided.

Section 3E.2

Makes conforming changes to and repeals specified sections of GS Chapters 17C, 17E, 20, 74E, 105, 143, 143A, 143B, 143C, and 146 to provide for the transfers set forth in Section 3E.1 of the act. Makes conforming changes to Section 16B.2, SL 2015-241.

Amends GS 20-102 to require sheriffs, chiefs of police, and peace officers to report reliable reports of stolen or recovered registered motor vehicles to SHP in addition to DMV.

Amends GS 143-166.13 to include sworn State law enforcement officers of the State Capital Police to those entitled to benefits under Article 12B, Salary Continuation Plan for Certain State Law-Enforcement Officers.

Amends Section 19G.2, SL 2023-134 (Appropriations Act of 2023) to require seized and forfeited assets transferred to SHP during 2023-25 pursuant to federal law to be credited to the budget of SHP and result in an increase of law enforcement resources for SHP. Requires SHP to make described reports to the specified NCGA committee chairs. Prohibits SHP from using seized and forfeited assets transferred pursuant to federal law for new personnel positions, new projects, acquisition of real property, structural repair of buildings and construction of buildings that may result in additional expenses for the State in future fiscal periods without NCGA approval.

Makes the preceding provisions effective July 1, 2025.

Section 3E.3

Appropriates to SHP for 2025-26 from the General Fund $2,894,468 in recurring funds to hire 20 full-time equivalent positions, including seven personnel positions, eight budget positions, one Safety Director, two Information Technology Communications positions, one Staff Attorney, and one Legislative Liaison.

Directs DOT to transfer to SHP on a recurring basis all funds necessary to fully support all costs associated with sworn personnel positions transferred from the Division to the SHP.

Effective July 1, 2025.

Subpart IIIF. Utilities Commission and Energy

Section 3F.1

Amends GS 62-10 to change the appointment of North Carolina Utilities Commission (Commission) commissioners, decreasing the number of commissioners appointed by the Governor from three to two. Adds appointment authority by the State Treasurer to appoint one commissioner, subject to confirmation by a joint resolution of the NCGA. Makes conforming changes to appointment and vacancy procedures provided. Changes designation of the Commission’s chair by the Governor to instead provide for election of the chair by and from members of the Commission.

Directs that the appointee of the Governor replaced by the State Treasurer must be one of the Governor’s appointees with a term ending June 30, 2025.

Requires the Commission to elect a chair pursuant to GS 62-10, as amended, within 30 days after the State Treasurer has made their appointment.

Section 3F.2

Repeals Article 1, GS Chapter 113B, which created the Energy Policy Council within the Department of Environmental Quality charged with the purpose of serving as the central energy planning and coordinating body of the State and responsible for advising and making recommendations on domestic energy exploration, development, and production within the State and region to the Governor and the General Assembly.

Amends Article 2, GS Chapter 113B, Energy Crisis Administration, as follows. Clarifies that “energy crisis” means a period of time during which the health, welfare or safety of State citizens are threatened by reason of an actual or impending acute shortage in usable, necessary energy resources.

Enacts GS 113B-20A to direct the Commission to develop contingency and emergency plans to deal with possible shortages of energy to protect public health, safety, and welfare to be compiled into an Emergency Energy Program. Requires the Commission to approve and recommend to the Governor an Emergency Energy Program (Program) to be implemented upon adoption by the Governor after declaration of an energy crisis and pursuant to Article 2. Requires the Program to be based upon plans presented to the Commission, independent analysis and study by the Commission, and hearings of the Commission that are consistent with federal programs and regulations. Requires the Commission to collect existing contingency plans from all relevant governmental agencies, and when deemed an update is justified, receive proposed emergency curtailment plans from every electric utility and natural gas utility in the State, and national supply curtailment analyses from each major oil producer doing business in the State, as specified. Directs the Commission to encourage joint plans or analyses between two or more utilities, major producers, or an association of such companies. Details substantive requirements of the Program, including the provision of maintenance of essential services; the protection of public health, safety, and welfare; maintenance of a sound basic State economy; consistency with the applicable General Load Reduction and System Restoration Plan; and specified requirements to differentiate energy conservation measures by users and compliance with federal law. Directs the Commission to investigate and study when potentially serious shortages of energy are likely to affects the State. Requires the Commission to make recommendations to the Governor to avert shortages and requires such recommendations to be included as a section of the Program and provide proposals for implementation of and procedures for review of complaints and requests for exemptions from emergency conservation measures or allocations. Grants the Governor authority to accept, administer, and enforce federal programs, program measures, and permissive delegations of authority delegated to the Governor by the US President, Congress, or the Department of Energy regarding actions to handle an actual or impending energy shortage.

Eliminates the Lieutenant Governor as chair and a nonvoting ex officio, tie-breaking member of the Legislative Committee on Energy Crisis Management, created by GS 113B-21.

Changes the procedures for adopting emergency orders, rules, or regulations of the Governor to alleviate the effects of an energy crisis under GS 113B-22. Now requires approval by a majority vote of the Council of State finding that an energy crisis exists for the emergency orders, rules, or regulations to take effect (currently, the orders, rules, or regulations take effect at a time specified by the Governor if 48 hours have passed after submission to the Legislative Committee, or at an earlier time with approval by a majority vote of the Council of State finding that the crisis is of such immediacy as to make delay for legislative review cause for probable harm to the public). Limits the effect of orders, rules, or regulations of the Governor to alleviate the effects of an energy crisis to 48 hours (currently, 30 days), unless the Governor consults the Legislative Committee.

Amends GS 113B-23 to deem the Commission (was the Energy Policy Council) the emergency energy coordinating body upon declaration of an emergency crisis. Removes the Attorney General from those the Governor is directed to order to implement and enforce the Program and any emergency rules, orders, or regulations approved pursuant to GS Chapter 113B-20A and -22, as amended.

Assigns the duties and responsibilities of the Energy Policy Council to the Commission throughout GS Chapter 113B. Makes conforming changes to GS 120-286 and 143-345.13. Makes a conforming repeal of Part 35, Article 7, GS Chapter 143B.

Amends GS 143-58.5 to eliminate projects approved by the Energy Policy Council from those funded by the Alternative Fuel Revolving Fund.

Section 3F.3

Enacts GS 62-133.8A, providing for a one-time enhanced credit renewable energy certificate (REC) stimulus. Provides that the enhanced credits RECs can be used by electric power suppliers for compliance with swine waste set aside requirements under GS 62-133.8(e). Caps any one facility from being credited with more than 80,000 enhanced credit RECs in any one year, though the facility may continue to generate RECs without enhanced credit. Eligible facilities are new renewable energy facilities located in a development Tier 1 county that produce RECs using in-State sourced swine waste resources. Provides a schedule for enhanced credit RECs with currently operating or newly constructed facilities that produce one REC to be credited with two additional, enhanced credits RECs for the first eight years following the date the act becomes law, and one additional, enhanced credit REC for every one REC produced by the facility for the succeeding six years. Defines four terms.

Section III-G. Insurance

Section 3G.1

Repeals the following relating to group health plans offered by sponsoring associations: GS 58-50-115(c); 58-50A-5; 58-50A-10; 58-50A-15; 58-50A-20; 58-50A-25; 58-50A-30; 58-50A-35; and 58-50A-40.

Amends Article 50A, GS Chapter 58 as follows. Eliminates as defined terms “employer member”; “Path 2 MEWA”; and “sponsoring association”. Modifies the definition of “MEWA”, making the qualifying criteria that there is at least one employer participating in the MEWA that is domiciled or has it principal headquarters in the State, or that the MEWA solicits an employer for membership in the MEWA that is domiciled or has it principal headquarters in the State. Adds the term “insured”, defined as employees or other individuals covered under the employee welfare benefit plan offered through a MEWA licensed in the State. Adds and defines “net worth”.

Enacts new GS 58-50A-50, setting forth requirements regarding enrollment, coverage, and funding for MEWAs initially licensed under Article 50A on or after January 1, 2025. Sets the enrollment minimum at 500 individuals; limits coverage to employees, their dependents, and continuation of coverage under State or federal law; sets the limit of coverage at or above 60% of the actuarial value of allowed costs; limits investment or maintenance of funds to securities, investments, and assets permitted under State law for the investment of assets constituting legal reserves of licensed life insurance companies, or any security or investment permitted by the Commissioner of Insurance (Commissioner); and sets the minimum net worth to be maintained at $500,000.

Enacts new GS 58-50A-55, providing a non-exhaustive list of statutes and articles of GS Chapter 58 applicable to licensed MEWAs, including reporting requirements and form approvals.

Makes technical changes to GS 58-50A-60.

Amends the qualifications for licensure under GS 58-50A-70. Allows for the MEWA to be administered by a nonprofit organization as an alternative to the current requirement for the MEWA to be a nonprofit organization. Allows the MEWA to be administered by a trade association or similar as an alternative to the current requirement for the MEWA to be established by a trade association or similar. Eliminates the qualifying criteria allowing for a Path 2 MEWA to be licensed under the Article. Adds a new qualifying option to allow for a MEWA established or administered by a statewide chamber of commerce or a statewide business league to be licensed under the Article if the chamber or business league has a constitution or bylaws; the chamber or business league was organized and maintained in good faith for a continuous period of five years for purposes other than obtaining or providing insurance; and the chamber or business league is exempt from taxation under 501(c)(6) of the Internal Revenue Code. Modifies the required statement to be contained in the evidence of benefits and coverages provided. Makes clarifying and conforming changes.

Amends GS 58-50A-85, eliminating the provision that limits audits of examinations of a MEWA to when there are circumstances to support a reasonable belief of a MEWA’s noncompliance with Article.

Amends GS 58-50A-90 to clarify that annual reports are due within 150 days after the end of the fiscal year applicable to the operation of the MEWA and the required analysis of the adequacy of reserves and contributions or premiums charged must be based on a review of claims and expenses related to the operation of the MEWA. Makes technical and clarifying changes.

Amends GS 58-50A-95 to specify that the Commissioner’s authority to deny, suspend, or revoke a license applies to any MEWA or any entity administering a MEWA.

Amends GS 58-7-31 to include licensed MEWAs with the insurers subject to the statute which governs life and health insurance agreements.

Amends GS 58-63-5 to include a MEWA in the definition of “person” as the term applies to Article 63 governing unfair trade practices.

Effective January 1, 2025, and applies to licensed issued under Article 50A, GS Chapter 58 on or after that date.

Subpart III-H. Commerce

Amends the definition of “Major event” applicable to the North Carolina Major Events, Games, and Attractions Fund in GS 143B-437.111(4) by including facilities that have hosted an Association of Tennis Professionals event within the previous 12 months, and removes the requirement that the site selection organization selected the site within North Carolina as the sole location for the event.

Changes the conditions that the Department of Commerce must find before entering an agreement to provide grants from the Major Events, Games, and Attractions Fund in GS 143B-437.112(a). Requires the Department to find that the economic activity of the major event will justify the use and amount of state funds, that the major event will supplement the State’s effort’s to promote travel and tourism, removes the requirement that site within the State be the sole location of the event, and removes the requirement that the total benefits of the major event to the State outweigh its costs.

Amends GS 105-113.128(2)b. to include local school administrative units in the list of entities eligible to receive grants from sports betting tax proceeds distributed by North Carolina Amateur Sports. 

Subpart III-J. Education

Section 3J.1

Amends GS 115C-150.11 as follows. Removes the provision specifying that the schools for the deaf and blind (schools) are housed administratively with the Department of Public Instruction (DPI) for purposes of distributing state funds, but each school is operated independently with a board of trustees as the governing body. Creates the following as separate State agencies that are governed by boards of trustees: (1) Governor Morehead School for the Blind of the DPI, for the function, purpose, and duty of serving students who are blind or visually impaired from birth to age 22 (specifies that this includes the Governor Morehead Preschool); (2) Eastern North Carolina School for the Deaf of the DPI, for the function, purpose, and duty of serving students who are deaf or hard of hearing; and (3) North Carolina School for the Deaf of the DPI, for the function, purpose, and duty of serving students who are deaf or hard of hearing. Clarifies that the boards of trustees for the schools for the deaf and blind are subject to rules adopted by the State Board of Education (State Board) in accordance with GS Chapter 150B for public school units. Requires that DPI include the schools for the deaf and blind and employees of those schools in coverage for professional liability, workers’ compensation, property, and liability policies purchased by DPI for its employees and requires that DPI now enter into a memorandum of understanding with the schools to facilitate the purchase of other insurance policies for those schools. Requires the Department of Administration to provide each school with support related to finance, human resources, capital, and procurement, including for information technology, and requires each school to enter into a memorandum of understanding with the Department for this support. Gives a school, its board of trustees, and the school’s members, employees, and agents, the immunities provided for under GS Chapter 115C applying to the State Board, Superintendent of Public Instruction, local boards of education, local school administrative units, and their members and employees. Sets out provisions under which this immunity is waived. Applies beginning July 1, 2025.

Makes the schools eligible to receive the benefits of any regional or statewide systems of support provided by DPI to all public school units and to apply for any grants available to all public school units. Specifies that the schools are not eligible to receive funding allotments for local school administrative units unless otherwise directed by the NCGA. Prohibits DPI from remitting money to the Pay Plan Reserve before distributing funds to the schools for any authorized automatic step increases.

Amends GS 115C-150.16, concerning the exclusion of schools for the deaf and blind from the requirements of GS Chapter 115C, except as specified, by removing the provisions stating that schools for the deaf and blind are considered a State agency and specifies that they must comply with all requirements for State agencies in State law.

Effective July 1, 2024.

Section 3J.2

Amends GS 115C-150.12A by prohibiting employees of the schools for the deaf and blind from being a member of the school’s board of trustees. Deems a board member that becomes an employee of that school to have resigned from their membership on the board. Also specifies that a majority of the voting members of the board of trustees (was, a majority of the board) constitutes a quorum.

Section 3J.3

Repeals GS 115C-150.10(5) which defined school director as it is used in Article 9C, Schools for Deaf and Blind Students, as the executive officer of a school for the deaf or the school for the blind. Adds and defines the term superintendent as the chief administrator of a school for the deaf or the school for the blind.

Amends GS 115C-150.12B to require that each board of trustees appoint a superintendent for that school and requires the superintendent to meet the requirements for employment under GS 115C-271 (concerning local boards of education superintendents of schools). Makes all boards of trustee acts that are not in conflict with State law binding on the superintendent and requires the superintendent to carry out all rules and regulations of the board and other duties as prescribed by the board. Makes the superintendent, for purposes of the application to other statutes in GS Chapter 115C, the equivalent of a superintendent of a local school administrative unit.

Gives the superintendent duties and responsibilities previously assigned to the director under GS 115C-150.12B, concerning personnel and human resources, GS 115C-150.12C, concerning making recommendations to the board on rules governing employee conduct, reporting, and care of school property, GS 115C-150.13A, concerning admissions and disenrollment, and GS 115C-150.15, concerning the receipt of reports and evaluation data and maintaining confidentiality.

Effective July 1, 2025.

Section 3J.4

Amends GS 115C-150.12C by adding that the Governor Morehead School for the Blind, the Eastern North Carolina School for the Deaf, and the North Carolina School for the Deaf are regarded as a State agency for the purposes of the State Tort Claims Act and associated representation by the Office of the Attorney General with regards to litigation defense. Also allows a school’s board of trustees to purchase liability insurance and directors and officers insurance. Specifies that GS 115C-42 (concerning liability insurance and immunity for a local board of education) applies to a school that purchases liability insurance.

Effective July 1, 2024.

Section 3J.5

Amends GS 115C-150.13A to specify that a school is responsible for providing free appropriate public education upon the student’s enrollment. Allows a parent to appeal a superintendent’s final determination of a student’s eligibility to the board of trustees (was, a parent may seek an impartial due process hearing following a determination on eligibility by the director). Specifies that parents may not seek an impartial due process hearing regarding an eligibility determination.

Amends GS 150B-1 by adding the Governor Morehead School for the Blind, the Eastern North Carolina School for the Deaf, and the North Carolina School for the Deaf to those entities that are exempt from the contested case provisions in GS Chapter 150B.

Section 3J.6

Repeals Section 5 of SL 2023-10, which required DPI to continue its administrative duties and responsibilities for the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School for the Blind until the board of trustees for each school has successfully transitioned into the administrative role required by that act, but in no event later than October 1, 2024.

Requires DPI, for the 2024-25 school year, to administratively house the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School for the Blind. Requires DPI to include the schools and their employees in coverage for professional liability, workers' compensation, property, and liability policies purchased by DPI for the Department and its employees, and requires entering into a memorandum of understanding with the schools to facilitate the purchase of other insurance policies for those schools. Also requires entering into a memorandum of understanding with regards to administrative support.

Provides immunity for civil liability for the State Board, DPI, Superintendent of Public Instruction, or any of their members or employees for acts or omission of the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School for the Blind or their members or employees.

Requires a report from the schools and DPI to the specified NCGA committee by March 15, 2025, on implementation.

Requires the Department of Administration, in coordination with DPI, the schools, and the Department of Information Technology, to study costs and position need to support the schools and report to the specified NCGA division and committee by May 1, 2025.

Requires the schools to be established as State agencies by July 1, 2025.

Requires DPI, the Office of State Controller, Office of State Budget and Management, and Department of Administration to each designate a person as liaison for the schools to assist with technical and administrative questions during the 2024-25 school year.

Requires the North Carolina Collaboratory, in consultation with each of the schools, DPI, and the Department of Administration, to study each school's administrative structure, operations, and policies, including the cost and positions needed for the support of the schools and how to optimize operation of that school to maximize the educational outcomes for the school's students and ensure the school's success and independence. Requires a report to the specified NCGA division and committee by May 1, 2025.

Section 3J.7

Effective July 1, 2024, transfers from DPI and the State Board, to the schools, the powers, duties, and functions, records, personnel, contracts, property, and unexpended balances, upon certification that the schools have been established as a State agency.

Section 3J.8

Requires the Department of Administration to reassign all assets in Complex 1-92-9 to the Governor Morehead School; allows the Governor Morehead School and Department of Health and Human Services to enter into a memorandum of understanding related to the use of assets in the Complex for shared services.

Section 3J.9

Amends GS 14-458.2 (concerning the crime of cyber-bullying of a school employee by a student) by amending the definition of school employee to mean an employee, or an independent contractor of a public school unit (was, of a local board of education, charter school, regional school, or a laboratory school); amends the definition of student to mean a person assigned to or enrolled in a public school unit (was, assigned to a school by a local board of education or has enrolled in a charter school, regional school, or a laboratory school).

Amends GS 115C-102.9 to require schools for the deaf and blind (was, regional schools) to report on access and connectivity separately for the dormitories and the student’s home when submitting information that is included in the digital learning dashboard.

Section 3J.10

Amends GS 151C-218.9 by removing the State Superintendent from those entities that may appeal a final decision of the Charter School Review Board related to a charter school’s grants, renewal, revocation, or amendments. Makes additional conforming and clarifying changes.

Section 3J.11

Allows, beginning with the 2024-25 school year, Dare Early College High School and Rockingham County CTE Innovation High School to operate as cooperative innovative high schools and that they are subject to the specified evaluation requirements.

Section 3J.12

Amends Section 7.36(h) of SL 2023-134, as amended, as follows. Amends the requirements for public schools participating in the Artificial Intelligence Pilot Program to (1) amend the use of funds allocated for the program, so that they are used to implement a school safety system that integrates AI technology into existing cameras, video management systems and alerting protocols (was, into existing access controls, alerting protocols, and intercom systems); (2) add that proposed school safety solutions must offer the eight listed performance capabilities, including intruder detection, person down detection, and forensic face search; and (3) add that the participating school units must contract the same vendor for the program and the vendor must be determined by the first public school to enter into a contract for a school safety solution.

Section 3J.13

Amends Section 7.53 of SL 2023-134, as amended, by changing the schools participating in the pilot program with Amplio Learning Technologies for a special education digital intervention software platform to now be Cabarrus County Schools, Union County Schools, and Vance County Schools (was, Alamance County Schools, Catawba County Schools, and Nash County Schools).

Adds the requirement that the Department of Public Instruction make an interim report on the program to the specified NCGA committee and division by June 30, 2025, and extends the deadline for the final report by two years to 2027.

Section 3J.14

Amends the SparkNC Pilot Program, established in Section 7.62 of SL 2023-134, as follows. Defines learning accelerator as either a high-tech or health science learning accelerator. Amends the elective course under the program to now require that it be denoted on transcripts as a learning accelerator credit (was, as high tech learning accelerator) and allows a student to earn up to four credits in learning accelerators but does not allow the student to complete the same learning experience more than once for credit. Adds to the requirements of the memorandum of understanding between the school and SparkNC to also include a requirement that the physical learning lab be operated on a schedule agreed upon by both parties and no longer requires that the lab be a site for virtual networking. Replaces references to learning modules with learning experiences. No longer needs approval by the superintendent of public instruction in order for the completion of the competency-based elective credit to be deemed to satisfy a required course in computer science.

Makes all public school units eligible to participate in the program instead of the previous list of 18 public school units.

Requires the nonrecurring funds appropriated to the Department of Public Instruction (DPI) in the 2023-24 and 2024-25 fiscal years for the purposes of this section to be allocated as a directed grant to SparkNC. Makes funds available until the end of the 2025-26 fiscal year. Requires SparkNC to use the grant to partner with and provide services in the maximum number of public school units possible. Amends the items that must be included in SparkNC’s interim and final reports and changes the due date of the final report to February 15, 2027 (was, March 1, 2026).

Makes additional conforming changes.

Section 3J.15

Requires the State Board of Education (State Board) to waive the portfolio requirement for an administrator license for the individuals who meet the following: (1) before August 31, 2025, the individual completed at least one course as part of an approved administrator preparation program; (2) the individual meets all licensure requirements in state law, rule, or policy not otherwise waived by this section; and (3) the individual does not qualify for a waiver under SL 2021-170, as amended.

Section 3J.16

Repeals GS 115C-311, which required the State Board to establish a program to develop advanced teaching roles and organizational models that link teacher performance and professional growth to salary increases for classroom teachers in selected local school administrative units. Repeals GS 115C-321, which set out alary supplements for teachers in Advanced Teaching Roles schools. Effective July 1, 2025.

Adds new Article 20, Advanced Teaching Roles (ATR), to GS Chapter 115C, providing as follows. Requires the State Board to create a program to develop advanced teaching roles and organizational models linking teacher performance and professional growth to salary increases for classroom teachers in selected local school administrative units. Sets out the program’s purposes.

Defines the following terms. Adult leadership teacher as an ATR team lead who: (1) works in the classroom providing instruction for at least 30 percent of the instructional day, (2) leads a team of 3-8 teachers, (3) shares responsibility for the performance of the students of all teachers on the adult leadership teacher's team, and (4) is not a school administrator. Advanced teaching role is a teaching assignment that includes either teaching an increased number of students or becoming an ATR team lead. ATR school is a school that is included in an ATR unit's ATR plan. ATR team lead is a teaching assignment that includes leading one or more teachers and being responsible for the student performance of all students taught by teachers on that lead teacher's team. Classroom excellence teacher is a classroom teacher serving in an advanced teaching role who assumes and maintains responsibility for at least 20 percent of additional students as compared to the most recent prior school year in which the teacher did not receive a salary supplement. Classroom teacher is a teacher who works in the classroom providing instruction to students at least 70 percent of the instructional day and who is not instructional support personnel. Also defines ATR plan and ATR unit.

Requires the State Board to issue an RFP annually by July 15 to allow local boards of education to submit ATR plans for approval; requires proposed ATR plans to be submitted by August 15. Sets out information that must be included in the proposals related to plan structure, advanced teaching roles descriptions, and salary supplement information. Requires the State Board to select participants by October 15.

Establishes the following limitations on the implementation of advanced teaching roles in an ATR unit: (1) for the first year of implementation, the ATR unit may include in its plan at least one school up to the lesser of five of the ATR unit's schools or 25 percent of the ATR unit's schools; (2) for the second and third years of implementation, the ATR unit may include in its plan at least one school up to the lesser of 10 of the ATR unit's schools or 50 percent of the ATR unit's schools; and (3) for any years following the third year of implementation, the plan may include any number of the unit's schools.

Allows ATR schools to exceed the maximum class size requirements for K-3rd grade during any term of up to three years in which state funds are awarded to the ATR unit where the school is located. Also authorizes ATR units to use any available state funds for salary supplements to teachers in advanced teaching roles so long as the ATR complies with specified state and federal policies and programs.

Requires the State Board to conduct a compliance review of ATR units once every five years; sets out matters that must be considered during the review. Allows for renewal or termination of the plan of any ATR unit or school that fails to meet the criteria. Requires an annual report on such reviews to the specified NCGA division and committee.

Makes funds awarded to an ATR unit under this provision subject to availability and awarded for a term of up to three years; ATR units are not eligible to receive funding for more than two terms. Requires state funds to be used for any of the following: (1) development of ATR plans, (2) development of professional development courses for teachers in advanced teaching roles that lead to improved student outcomes, (3) transition costs associated with designing and implementing ATR plans, and (4) development of the design and implementation of compensation plans that focus on teacher professional growth and student outcomes and the transition costs associated with designing and implementing new compensation plans. Sets out conditions under which an ATR unit that received an initial award of state funds pursuant may apply for a second term of funding for up to three years. Specifies that funds awarded to an ATR unit under this provision do not revert at the end of each fiscal year but remain available until October 1 of the subsequent fiscal year.

Allows ATR units to designate up to 15 percent of the teachers in each ATR school as adult leadership teachers and 5 percent of the teachers in each ATR school as classroom excellence teachers. Makes, to the extent funds are made available for the purpose, teachers serving in an advanced teaching role eligible for the following salary supplements: (1) $10,000 for adult leadership teachers and (2) $3,000 for classroom excellence teachers. Sets out provisions governing funding of these supplements. Specifies that a teacher is eligible to continue receiving a salary supplement as long as they remain an adult leadership teacher or a classroom excellence teacher. Limits teachers to no more than one annual salary supplement under this provision at any time.

Requires the State Board to evaluate how the advanced teaching roles program and the new compensation plans have accomplished six specified objectives, including improvement in the quality of classroom instruction and increases in school-wide growth or the growth of teachers who are mentored or impacted by a teacher in an advanced teaching role, an increase in the attractiveness of teaching, and improvement in school culture based on school climate survey results.

Provides that for any ATR unit approved by the State Board before July 1, 2024, the ATR unit may implement advanced teaching roles in the number of schools included in its approved ATR plan.

Requires the State Board, for the advanced teaching roles evaluation report due October 15, 2025, to contract with an independent research organization to perform the evaluation.

Requires the Department of Public Instruction to study the feasibility of measuring class size by student-to-teacher ratio, including the method to determine student ratios when a teacher is serving as an ATR team lead. Requires a report on the results by March 15, 2025, to the specified NCGA committee.

Applies beginning with the 2025-26 school year.

Section 3J.17

Transfers the Center for Safer Schools (Center) from the Department of Public Instruction (DPI) to the State Bureau of Investigation (SBI) with the elements of a Type I transfer, except as specified.

Adds a new Part 3, “The Center for Safer Schools,” under Article 13A of GS Chapter 143B and recodifies specified statutes under that new Part. Makes conforming changes. Amends statutes throughout GS Chapter 115C that apply to the Center by replacing references to and duties of: (1) DPI with SBI and (2) the Superintendent of Public Instruction with the Director of the SBI.

Amends GS 115C-105.57 (now, GS 143B-1209.59) to also require the report compiled by the Center as part of its annual census of school resource officers to be shared with the SBI. No longer requires that the Center receive guidance and advice from the Task Force for Safer Schools.

Amends GS 115C-105.60 (now GS 143B-1209.60) to place the School Resource Officer Grants Program under the Executive Director of the Center instead of the Superintendent of Public Instruction; makes conforming changes. Amends Section 7.36 of SL 2023-134 to also make the Executive Director, instead of the Superintendent, responsible for the School Safety Grants Program, for grants for training to increase school safety, grants for safety equipment, and the Subsidizing School Resource Officer Grants Program. Allows the Executive Director of the Center to enter into a memorandum of understanding with DPI to disburse the grants. Makes additional conforming changes to Section 7.36. Specifies that applications for grant funds under Section 7.36 or GS 115C-105.60 received by DPI before the act’s effective date are not abated or affected by this section. Sets out which provisions govern grant award decisions. Specifies that grant funds awarded under Section 7.36 and GS 115C-105.60 before the act’s effective date are not abated or affected by this act, and the laws that would be applicable but for this section remain applicable to those grant funds. Requires DPI to transfer to SBI funds that did not revert under Section 7.36(l), except for the funds allocated in Section 7.36(h). Specifies that funds allocated in Section 7.36(h) shall remain available for use until the reversion date in Section 7.36(l).

Repeals GS 115C-105.55, which established the Task Force for Safer Schools. Makes conforming changes, including the repeal of GS 115C-105.56, which set out the Task Force’s duties. Amends GS 115C-105.65 to make DPI the consulting entity on guidance for threat assessment teams instead of the Task Force.

Amends GS 115C-105.51 to require the Center to collaborate with DPI (instead of DPI and the Center being responsible for) the anonymous safety tip line. Amends GS 115C-105.52 to also require the Center to collaborate with DPI (instead of DPI and the Center being responsible for) the policies on the placement of school crisis kits in schools and the kits’ contents. Amends GS 115C-105.53 to require the Center to collaborate with DPI (instead of DPI and the Center being responsible for) the schematic diagrams of schools.  Makes conforming changes.

Requires DPI to transfer to SBI any federal funds received by DPI for any program administered by the Center. Establishes a new budget fund within the SBI’s General Fund budget code for the Center and requires all funds supporting the Center to be transferred to the new fund. Makes the Center’s Executive Director responsible for (1) administering the fund and (2) deciding all matters related to the Center’s budget.

Appropriates $370,000 in recurring funds from the General Fund to the SBI for 2024-25 for four new full-time criminal justice specialist positions at the Center. Also requires DPI to transfer position number 60009394 and associated costs to the Center.

Section 3J.18

Amends GS 115D-89.1 (State Board of Proprietary Schools [SBPS]) so that one of the two appointees by the General Assembly upon the recommendation of the President Pro Tem of the Senate and the Speaker of the House is a director or owner of a proprietary school or group of proprietary schools licensed in the state with a 100 or more total annual enrollment of students (was, 750 or more annual enrollment of students--Senate and owner or director of a proprietary school--House). Changes the other appointee upon recommendation of the Speaker of the House so that person is an owner or director of a proprietary school in the state with less than 100 total annual enrollment of students (was, between 100 and 750 students annually enrolled). Applies beginning with appointments made on or after the date the act becomes law.

Expands the refund provisions of GS 115D-90’s required refund policy for proprietary school licensure to require that the school provide for a full refund if the school causes the student to be withdrawn before the first day of school. Requires that for institutions receiving federal funds, the institution must comply with federal law requirements for refunds. Now requires for all other institutions a 75% refund if the student withdraws or the school causes the student to be withdrawn before completing 25% of the period of enrollment, excluding any disclosed nonrefundable fees (currently, just if the student withdraws and no exclusion of nonrefundable fees). Effective July 1, 2025, and applies to licenses issued or renewed on or after that date.

Amends the bond requirements under GS 115D-95 (applicants for licensure as a proprietary school) as follows. For schools licensed for one year and less than six years, requires the bond amount be evaluated by the school quarterly and reported to the State Board. Removes the bond evaluation process for schools in operation for more than five years. Instead, if the school has been licensed for six years or more, specifies that if the SBPS deems an evaluation necessary, the SBPS may require the bond amount to be evaluated by the school quarterly and reported to the SBPS or its representative. Makes conforming and technical changes. Increases the amount of the catastrophic loss amount in GS 115D-95.1 (student protection fund) so that it is $1.5 million (currently, $1 million). Increases the fund cap amount from $1.5 million to $2 million.  Requires the SBPS to suspend payments into the fund when: (1) the Student Protection Fund balance is equal to or exceeds the catastrophic loss amount, for schools currently licensed in the State and (2) the Student Protection Fund balance is equal to or exceeds the fund cap amount, for schools applying for initial licensure with the State requires when the Student Protection Fund balance decreases below the catastrophic loss amount that the State Board reinstate payment requirements. (Currently, the SBPS suspends payments for schools that have been continuously licensed in the State for more than eight years if the fund balance is equal to or exceeds the fund cap amount.) Makes organizational changes. Effective July 1, 2025, and applies to licenses issued or renewed on or after that date.

Section 3J.19

Amends Section 10.13 of SL 2015-241, as amended, to expand the college developmental math and developmental reading and English curriculums to include the summer immediately preceding the senior year of high school.

Section 3J.20

Amends GS 143-64.03 (concerning the powers and duties of the State agency for surplus property) to allow UNC to enter into agreements with one or more vendors to trade in any technological equipment purchased from the vendor or to allow a vendor to buy back any technological equipment even if the equipment was not purchased from that vendor. Makes conforming changes. Requires UNC to keep records of the type and quantity of technological equipment and the name of the vendor subject to each agreement discussed above. Changes UNC’s requirement from keeping track of the number of computer equipment distributed to keeping track of the number of computers distributed. Changes UNC’s reporting deadline to the specified NCGA committee from December 1 annually to March 1 annually.

Section 3J.21

Adds the following to Section 8A.15 of SL 2024-134. Requires that the State Education Assistance Authority (Authority) transfer up to $1 million of the funds allocated to it under that section for the creation of a common digital transcript to the Community Colleges System Office to conduct a digital credential pilot program with a digital credential provider. Requires the System Office to select at least one community college currently enrolling students in a digital credential program from the fall of the 2024-25 academic year to participate in the pilot. Requires a report by the listed entities to the specified NCGA committee by June 15, 2025, on the implementation and outcomes of the pilot program.

Section 3J.22

Sets out NCGA findings relating to the Department of Military and Veterans Affairs’ (DMVA) responsibility for selecting recipients of the Scholarships for Children of Wartime Veterans and that the Authority acts as the fiscal agent for administering the scholarship funds, which necessitates receiving certain information from the DMVA.

Requires the DMVA and Authority to enter into a data-sharing agreement for the protection of student data related to scholarships by December 2, 2024, that addresses the disclosure, sharing, and use of student data for recipients of scholarships as required by this section and the protection of records maintained by the DMVA regarding eligibility of recipients and the records maintained by the Authority. Student data is defined as personally identifiable information directly related to a student or member of a student's household, including the name, birthdate, address, Social Security number, identification number, telephone number, email address, or any other information that would provide information about a specific student or members of a specific student's household, including identification of the enrolling institution and status as a scholarship recipient.

Requires DMVA to provide the Authority with four categories of information no later than 10 business days after the execution of the data-sharing agreement. Requires the Authority to use this information to acquire certification of the enrollment of eligible recipients and any other necessary information directly from the enrolling institutions for the disbursement of funds. Provides that if the Authority determines that an enrolling institution has not certified the enrollment and eligibility of a recipient consistent with the scholarship requirements and this section, the Authority must notify DMVA within 30 days.

Requires DMVA to give the Authority any additional information the Authority deems necessary for its disbursement of scholarships within 10 business days of the Department obtaining the information.

Effective July 1, 2024, and applies to the 2024-25 academic year.

Section 3J.23

Repeals SL 2023-134, Sections 8A.6(i) and (j), which required the Superintendent of Public Instruction to make a study and report to the specified NCGA committee in March of 2024 on: (1) for the purpose of comparing student performance, recommendations for a nationally standardized test for use in third  and eighth grades to be administered to students in nonpublic schools who are receiving Opportunity Scholarships beginning with the 2024-25 school year and students attending schools in public school units; (2) alignment between the nationally standardized test that is selected and the standard course of study for third grade and eighth grade, including a crosswalk between the standards assessed by the nationally standardized test and the standard course of study; and (3) feasibility of developing a through-grade assessment for third and eighth grade that would meet specified criteria.

Instead, requires the Office of Learning Research (Office) at UNC to conduct that study and report by December 31, 2025, to the specified NCGA committee. Updates the requirements so that it includes administering tests to students receiving Opportunity Scholarships beginning with the 2026-27 school year instead of 2024-25. Also adds the requirement that the Office, to the extent practicable, recommend only one test to use in third grade and one test for eighth grade.

Requires the State Education Assistance Authority to designate as the nationally standardized assessments to be administered by nonpublic schools, in accordance with GS 115C-562.5(a)(4), the tests recommended by the Office for use in third grade and eighth grade in accordance with the above provisions.

Requires the State Education Assistance Authority to submit the report required by GS 115C-562.7(c) by December 1, 2027, and annually thereafter, based on the data submitted by nonpublic schools in accordance with GS 115C-562.5(c)(1) beginning with the 2026-27 school year.

Subpart III-K. Local Government

Section 3K.1

Amends GS 160D-601 to also prohibit enacting, in addition to the current prohibition on initiating or enforcing, an amendment to zoning regulations or a zoning map that down-zones property without written consent from all property owners whose property is the subject of the down-zoning amendment. Amends what is considered down-zoning under the statute to also include a zoning ordinance that affects an area of land by creating any type of nonconformity on land not in a residential zoning district, including a nonconforming use, nonconforming lot, nonconforming structure, nonconforming improvement, or nonconforming site element.

Includes a severability clause.

Applies to local government ordinances adopted on or after the date the section becomes law and any local government ordinance enacting down-zoning of property during the 180 days before the date that this section becomes effective. Makes void and unenforceable any ordinances adopted in violation of this section.

Part IV.

Includes a severability clause.