House committee substitute to the 2nd edition makes the following changes. Modifies new GS 126-14.7 (Equality and merit in State government workspaces; no DEI), as follows. Directs that no State agency can promote, support, fund, implement, or maintain workplace diversity, equity, and inclusion (DEI) (was, no State agencies could promote, support, fund, implement or maintain DEI policies, programs, or initiatives). Changes defined term DEI training to DEI. Makes organizational changes. Requires the State Auditor to also report violations to the Attorney General (AG) (was, just the General Assembly and the specified NCGA Committee). Removes provisions making it a Class 1 misdemeanor to knowingly and willingly violate the statute. Instead, imposes a civil penalty not to exceed $5,000 for each such violation. Authorizes the AG to bring a civil action to collect the penalty in superior court. Specifies that GS 126-14.7 does not prohibit the celebration of any holiday, observance, or remembrance.

Replaces references to “non-State entity” in GS 143-162.8 (no public funds for DEI) with “covered school.” Defines covered school to mean a local administrative school unit defined in GS 115C-5, a regional school, a UNC school providing elementary or secondary instruction, and schools for the deaf and blind operated under Article 9C of GS Chapter 115C. Makes organizational changes. Specifies that GS 143-162.8 does not prohibit the celebration of any holiday, observance, or remembrance. Removes provisions making it a Class 1 misdemeanor to knowingly and willingly violate the statute. Instead, imposes a civil penalty not to exceed $10,000 for each such violation. Authorizes the AG to bring a civil action to collect the penalty in superior court. Permits injunctive relief to address ongoing violations. Clarifies that the civil penalty provisions that apply to the statute are GS 143C-10-3, GS 159-182(b), or GS 159-183. Now requires the State Auditor to refer violations to the AG for appropriate civil enforcement action (was, to the DA in the county where the violation occurred for criminal prosecution). Makes technical changes.

Makes conforming changes to GS 143C-10-1 and GS 143-162.8. Removes obligation for non-State entities to recoup misspent funds under GS 143C-10-2.