The conference report makes the following changes to the 3rd edition.

Part I.

Section 1.1

Amends GS 159-13.2, pertaining to project ordinances in the Local Government Budget and Fiscal Control Act (LGBFCA). Makes language gender neutral.  Adds defined terms project ordinance and settlement project. Replaces references to "local government" with references to "unit" throughout the section. Amends the definition of grant project. Allows units and public authorities to also budget for a settlement project (currently just allows for capital projects or grant projects) as part of their annual budget ordinances or a project ordinance. Makes technical and conforming changes. Makes technical and conforming changes to GS 159-11 (preparation and submission of budget and budget message) and GS 159-13 (adoption of budget ordinances).

Adds defined terms from GS 159-13.2, grant projects and settlement projects, to the listed fund classes in GS 159-26 (accounting systems under the LGBFCA). Replaces references to "local government" with references to "unit" throughout the section. Makes technical and organizational changes.  

Amends GS 159-28 (budgetary accounting for appropriations) to include settlement projects as one of the obligations requiring the project ordinance to include an appropriation authorizing the obligation and requiring that an unencumbered balance remains in the appropriation sufficient to pay the sums obligated by the transaction. Makes technical changes. Clarifies that project ordinance refers to the defined term in GS 159-13.2.  Adds settlement projects to those types of claims that may be presented against a local government.  

Section 1.2

Changes the amount listed for Title Fees – Transfer to Highway in Section 3.4 of SL 2023-134 from 1,500,0000 to 1.5 million.  

Section 1.3

Amends Section 5.3(b)(4) of SL 2023-134 (directed grants to nonstate entities) to remove provisions specifying that directed grants issued as part of the nonrecurring funds in the 2023-24 fiscal year don’t revert until two years after the act becomes law.  

Amends Section 5.1 of SL 2023-134 (unexpended directed grants appropriated in FY 2022-23 do not revert) to extend the deadline for expending funds under the section to June 30, 2024 (currently, June 30, 2023) and the time for the reversion to the end of FY 2024-25 (currently, FY 23-24). 

Amends Section 5.1B of SL 2023-134 (unexpended directed grants appropriated in FY 21-22) to extend the deadline for expending funds under the section to March 31, 2025 (currently, March 31, 2024) and the time for the reversion to the end of FY 2024-25 (currently, FY 2023-24).

Effective June 30, 2024. 

Section 1.4

Revises Section 5.6(a) of SL 2023-134 (recapture of unused funds for disaster relief and recovery/mitigation/resiliency) to decrease the amount the State Controller transfers in remaining funds appropriated or allocated for the listed agencies, as referenced below, to the State Emergency Response and Disaster Relief Fund, from $52,784,447 to $51,513,650.  Decreases the amount transferred to the NC Community College System from $3,399,004 to $2,128,207. 

Section 1.4A

Changes the recipient in Section 5.6(f)(18) of SL 2023-134  (pertaining to emergency management pilot programs in Hyde County) from the Department of Public Safety (DPS), Division of Emergency Management (DEM), to the Office of State Budget and Management (OSBM).

Section 1.5

Repeals definition of solid waste for GS 130A-290(a)(35)h as enacted by SL 2023-134. 

Section 1.7

Adds the UNC Faculty Physicians Practice and an entity that merges with the UNC Health Care System and designated by its board of directors as a component unit to definition of component unit in GS 116-350(3), as enacted by Section 4.10(bb) of SL 2023-134 (pertaining to UNC Health Care system). Makes technical changes.  Amends GS 116-350.5 as enacted by Section 4.10(b) of SL 2023-134 (UNC Health Care System) to include component units governed by the Board of the System. Includes component units, System affiliates, and persons as part of those system components where the Board can adopt policies making certain statutes applicable to each entity. Changes the times the Board is required to meet from every 60 days to four times per year under GS 116-350.10(c), as enacted by Section 4.10(b) of SL 2023-134. Expands the power of the Board of Directors under GS 116-350.15 enacted by Section 4.10(b) of SL 2023-134 to allow it to designate System counsel and legal staff to represent the State's interest at any commitment hearing, rehearing, or supplemental hearing held at the University of North Carolina Hospitals at Chapel Hill or any other System location. Amends GS 116-350.60 as enacted by Section 4.10(b) of SL 2023-134 to include other component units of the System as a surviving unit of any merger pursuant to the section. Amends GS 116-350.100 as enacted by Section 4.10(b) of SL 2023-134 to clarify that the Board is authorized to establish a liability insurance program and to include component units and system affiliates under these with coverage. Expands covered conduct to include certain acts by individuals employed or otherwise affiliated with System component units or System affiliates.  Makes clarifying and technical changes.

Amends the following provisions of the new/amended GS sections as enacted by Section 4.10 of SL 2023-134. Amends GS 135-5.6. (Employees of the University of North Carolina Health Care System) and GS 135-5.7 (Certain employees of East Carolina University) to provide that an individual hired by the UNC Health Care System/ Medical Faculty Practice Plan or the ECU Dental School Clinical Operations on or after January 1, 2024, who is a contributing member of the Retirement System or the Optional Retirement Program immediately  prior to that individual's date of hire by the entity will, for the purposes of the section, be treated as having been employed as of December 31, 2023. If, at the time of entering eligible employment with the entity, that individual is a member of the Retirement System and was not previously offered an election to participate in the Optional Retirement Program, then that individual may elect to continue contributing membership in the Retirement System or to participate in the Optional Retirement Program. Exempts law enforcement officers employed by the UNC Health Care System from the employment deadlines for participation in the State retirement system. Specifies that provisions pertaining to partially contributory coverage do not apply to employees eligible to be enrolled in a health benefit plan offered by ECU or the UNC Health Care System under GS 135-48.40. Expands list of eligible participants in the Supplemental Retirement Income Plan to include employees of the UNC Health Care System. Makes technical changes. Effective retroactive to January 1, 2024.

Amends GS 116-360.35 to allow the ECU Chancellor to adopt policies for the Medical Faculty Practice Plan and ECU Dental School Clinical Operations. 

Amends Section 4.10 of SL 2023-134 to provide that the funds are for a regional behavioral health facility, instead of hospital. Effective retroactively to July 1, 2023.

Section 1.8 

Notwithstanding any provision of Article 38B of GS Chapter 115C to the contrary, provides that Stokes County Schools will have the authority to submit an application for a grant from the Needs-Based Public School Capital Fund. The Department of Public Instruction (DPI) cannot require the approval of the Stokes County Board of Commissioners for any grant application submitted and cannot allow Stokes County Public Schools to provide matching funds and to enter into any agreements in connection with a grant award. Expires June 30, 2026.

Part II. 

Section 2.1

Amends Section 6.11(c) (vocational rehab pilot program) of SL 2023-134 so that the required report is submitted to the now specified NCGA committee. 

Section 2.1A 

Adds new Section 6.14 to SL 2023-134 reappropriating the $9 million in nonrecurring funds to the Community Colleges Systems Office (CCSO) for the 2023-24 fiscal year that was to be allocated to Guilford Technical Community College to support its partnership with the North Carolina Federation of Advanced Manufacturing Education (NC FAME) to instead be used to support the partnership with NC FAME and for capital expenses related to that partnership. Directs that the funds do not revert at the end of the 2023-24 fiscal year, but remain available until expended.

Section 2.2 

Repeals Section 2 of SL 2022-59 (pertaining to remote academies and enacting Part 3A to Article 16 of GS Chapter 115C). 

Section 2.4

Adds an annual report requirement from DPI to the specified NCGA committee to GS 115C-250.5 with five required prongs of information (homeless and foster student transportation grants).

Section 2.5

Changes the specified NCGA committee that DPI is required to report on the special needs pilot program under Section 7.53 of SL 2023-134.

Section 2.8

Adds the NC Youth Tobacco Survey to those protected information surveys listed in GS 115C-76.65, as amended by Section 7.81(b) of SL 2023-134.

Section 2.8A

Requires the NC Criminal Justice Education and Training Standards Commission and the NC Sheriffs' Education and Training Standards Commission to establish initial and in-service educational and training standards for school resource officers.  Adds new GS 115C-105.58, pertaining to school resource officers. Defines school resource officers, specifies that they can also be placed in nonpublic schools, and requires them to comply with training requirements.  Requires both the training commissions listed above to amend their rules consistent with this section. Until such time that the amended  rules required by this subsection become effective, specifies that school resource officers assigned to nonpublic schools by their employing agency shall be required to meet the training requirements pursuant to 12 NCAC 10B .0510 and 12 NCAC 09B .0313 for school resource officers assigned to public schools.

Amends GS 153A-103 (number of employees in the sheriffs’ offices) to allow, in addition to the number of salaried employees fixed by the board of commissioners, each sheriff the number of school resource officers required to satisfy any agreements entered into under GS 162-26.5(b).  

Amends the budget ordinance provisions of the LGBFCA to provide that if a sheriff or police chief executes an agreement to provide school resource officers pursuant to new GS 160A-288.5(b) or GS 162-26.5(b), respectively, and the governing board receives the funds pursuant to the agreement, the governing board must appropriate the funds for that purpose. 

Adds new GS 160A-288.5, allowing police chiefs to provide school resource officers to public and nonpublic schools. Adds new GS 162-26.5, allowing sheriffs to provide school resource officers to public and nonpublic schools.

Section 2.8B 

Amends the College of Educational Opportunities Program (Program) for eligible students with intellectual and developmental disabilities provisions of Section 8.8, SL 2023-134. Requires NCSU and UNC to prioritize admission of applicants 22 years of age and older beginning with the 2024-25 fiscal year. Lowers the eligibility age to 18 beginning with the 2024-25 fiscal year.  Specifies that the $3 million in operating funds allocated to NCSU don’t revert at the end of FY 2023-24 but instead remain until the end of FY 2024-25, for the purposes specified in the act. 

Section 2.8C

Amends GS 115C-158.10(a), as enacted by Section 7.13(b) to require any high school student who does not already have a career development plan to complete the plan within 90 days of enrollment in school. Prohibits promoting a student from 8th (was, 7th) grade until a plan is created. Effective July 1, 2024, and applies beginning with the 2024-25 school year.

Section 2.8D 

Amends Section 39.2(e) of SL 2021-180 to include contractors in the definition of local government employee. Specifies that the amendment does not authorize payment of any new or additional bonuses and applies only to bonuses paid before the enactment of the section. Retroactive to July 1, 2021. 

Section 2.8E 

Changes the effective dates of new Article 9C to GS 115C, the amendments to GS 115C-51, GS 162-5, GS 138-5, GS 150B-1, and repealed provisions of SL 2013-247 and SL 2013-360  to May 1, 2024, and except as otherwise provided by law, applicable beginning July 1, 2024, to the North Carolina School for the Deaf and the Eastern North Carolina School for the Deaf. Specifies that beginning May 1, 2024, the boards of trustees for the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School for the Blind, respectively, may adopt policies, enter into contracts, including employment contracts other than renewals expiring prior to July 1, 2024, and otherwise engage  in any power or duty authorized by Article 9C of Chapter 115C of the General Statutes for any action that is effective on or after July 1, 2024. Effective May 1, 2024, to facilitate these actions DPI is authorized to provide access to existing employment records and student records for the purposes of enrollment in the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School for the Blind, respectively.

Section 2.10

Amends Section 8.16 of SL 2023-134 as follows. Specifies that one of the authorized uses of the $20 million appropriation to the NC Collaboratory (NCC) is for a voluntary takeback (was, buyback) program for stocks of PFAS-containing AFFF owned or stored by local fire departments. Changes the entity responsible for conducting a water supply fluoridation study and report from the Commission for Public Health to the Secretaries’ Science Advisory Board. Makes conforming changes.  

Section 2.11

Amends Part VIII of SL 2023-134 by adding new section requiring the $3.5 million appropriation to the UNC BOG for the 2023-24 fiscal year to be allocated to the NCC to study the use of artificial intelligence in improving non-confidential patient information instead be used to study the use of artificial intelligence.

Section. 2.12

Amends Part VIII of SL 2023-134 by adding new section directing that the $10 million in nonrecurring funds appropriated from the ARPA Temporary Savings Fund to the UNC BOG for each year of the 2023-2025 fiscal biennium to be allocated to UNC at Pembroke (UNC-P) to provide support for new healthcare-oriented programs at UNC-P to meet regional workforce demands will instead be used to meet regional workforce demands by providing support for the development of new and the growth of existing healthcare-oriented programs at UNC-P.

Section 2.16

Applying beginning with scholarship awards for the 2024-2025 academic year, amends GS 116-282 (need-based scholarship amounts for students attending private institutions of higher education) to change of one the award criteria from expected family contribution to demonstrated need of the student.

Part III.

Section 3.2A

Extends duration of the Adult Care Home (ACH) Accreditation Pilot Program set forth in Section 9E.6 of SL 2021-180, as amended, from two to three years. Increases the grant program funding to cover the cost of providing outcome data for up to 150 Pilot ACH’s (currently, 75 Pilot ACH’s). Extends the deadline for the Sheps Center to submit its interim report to the specified NCGA committee from July 31, 2024, to July 31, 2025. Extends the pilot program’s termination date from August 1, 2024, to August 1, 2025.  Makes technical and organizational changes.

Section 3.2B

Amends Section 9G.6 of SL 2023-134 as follows. Clarifies that Monarch, a nonprofit corporation located in Stanly County, is the entity responsible for providing services for adults with intellectual and developmental disabilities through its division, UMAR (currently lists UMAR as the entity).  Clarifies that the appropriation for the above services is notwithstanding any contrary provisions in the Committee Report referenced in Section 43.2 of the act. Makes technical and conforming changes.

Section 3.3

Corrects statutory citations in GS 122C-115.6(a) and G.S. 122C-115.6(c)(1), as enacted by Section 9G.7A(a1) of SL 24 2023-134 (pertaining to county realignment under Medicaid) to include GS 108D-46 (consideration of county requests for prepaid Medicaid health plans). Repeals GS 108A-54.3A(a)(2a), effective July 1, 2022.

Section 3.5

Retroactive to January 1, 2024, amends the effective date for the new required toxicology screenings in child deaths listed in Section 9h.7(d) of SL 2023-134 so that it only applies to child cases initiated after January 1, 2024 (currently, applies to child cases pending or initiated after January 1, 2024).

Section 3.5A

Amends Section 9H of SL 2023-134 (pertaining to the funds appropriated for the establish a county-operated regional autopsy center in Union County), as follows. Sets forth a schedule by when the regional autopsy center will expand to the schedule’s listed counties (Anson, Cabarrus, Montgomery, Moore, Richmond, Rowan, Stanly, and Union). The earliest addition date on the schedule is the date the regional autopsy center becomes operational for Union County and the latest date on the schedule being June 30, 2026 (Gaston County). Directs that the service area of the regional autopsy center funded will extended to the following counties as close to the schedule as reasonably practicable, provided that Union County does not experience (i) a delay in receiving the State funds allocated, (ii) a supply chain disruption in the construction industry that impacts the operation of the regional autopsy center funded by this section, or (iii) difficulty hiring staff 1essential to the operation of the regional autopsy center. Requires that the Office of the Chief Medical Examiner (OCME) and Union County amend their contract to add each county listed above along with expected date each is to be serviced by the regional service center. Specifies that Union County will be reimbursed for the additional counties. Directs that if Union County determines that a delay in the schedule is warranted for any of the reasons listed above, then Union County and the OCME must jointly determine an alternative schedule for adding the affected counties to the service area of the regional autopsy center.  Makes technical and conforming changes.  Changes the date of reporting requirements so that Union County must submit reports every six months after December 1, 2024. Adds the listed counties above to the report recipients. Requires the report to explain any delays in the schedule and to include one of the reasons listed above along with the alternative schedule. Terminates the reporting requirement on the date the regional autopsy center has added all of the listed counties to its service center.

Section 3.6

Amends the effective date of the changes to Article 14 of GS Chapter 7B, GS 7B-2902 (pertaining to disclosure in child fatality or near fatality cases) so that they are effective January 1, 2025, except for GS 73-1413.5 (new provisions pertaining to participation in the National Fatality Review Case Reporting System) which will be effective on July 1, 2025. Effective October 3, 2023.

Part IV.

Section 4.2

Amends and adds to the previous edition’s Section 4.2 as follows.

Amends Section 12.2(e) to require that $11 million of the $69.6 allocated to the Cabarrus County Water and Sewer Authority be used for projects at the Muddy Creek Wastewater Treatment Plant and $1.5 million be used for the north Kannapolis primary water loop project.

Allows funds allocated in Section 12.2(e), to be used as follows. Those allocated to Catawba County may be used for any water or wastewater project. Those allocated to Currituck County may be used for any water or wastewater infrastructure project. Those allocated to Mount Pleasant may be used for the purchase of water filtration equipment for public water system customers. Those allocated to Eureka are instead allocated to the Wayne County Development Alliance. Those funds provided to Rockingham County and to Stoneville are transferred to OSBM for grants to those local governments for five specified water and wastewater projects; specifies that these funds do not revert. Those allocated to Craven County under Section 12.2(f) for a backup generator for the water plat are allocated instead to the First Craven Sanitary District.

Section 4.3

Amends GS 143-215.107F by making a clarifying change. Makes the section applicable to retroactively to the adoption and enforcement of standards relating to control of emissions from new motor vehicles or new motor vehicle engines on or after October 3, 2023.

Section 4.5

Amends Section 10.6 of SL 2021-180, concerning the allocation of funds to Reinvestment Partners for its Produce Prescription Program by removing the provision that limited individuals to three months of food assistance.

Section 4.6

Amends GS 143-215.28A to make the application processing and compliance fee applicable to the processing of applications for approval for the alteration or breach of dams. Makes conforming changes. Amends the calculation of the fee to include an engineer’s actual costs instead of estimated costs. Applies retroactively to application for the construction, repair, alteration, breach, or removal of a dam received on or after October 10, 2023.

Section 4.7

Repeals GS 143-215.52(c), which set out requirements that applied when applying Part 6, Floodway Regulation, to airport projects.

Repeals GS 143-215.56(i), which a permit to be granted for the use of an eligible flood hazard area in connection with an airport project for which an airport authority received a no-rise certificate for that airport project where there is no local government that has a clearly demonstrated statutory authority to issue such a permit for the airport project for the use of a flood hazard area under Part 6.

Enacts new GS 143-215.57A, providing as follows. Deems an airport project permitted for use of an eligible flood hazard area if the applicable airport authority has received a no-rise certificate for that airport project, and the no-rise certificate has been accepted by the Department. Prohibits requiring an additional permit or authorization for an airport project deemed permitted. Sets out applicable definitions. Effective retroactively to October 10, 2023.

Section 4.8

Amends Section 12.2(f) of SL 2023-134 to allow funds remaining from the grant to Hookertown for the repayment of a USDA loan to be used by the town for water or wastewater projects.

Section 4.9

Amends Section 10.7(a) of SL 2023-134 by adding farmers in Haywood County to those receiving funding from the Agriculture Cost Share Program for Nonpoint Source Pollution Control.

Section 4.10

Amends Section 10.2(b) of SL 2023-134 by amending the allowable uses of funds allocated to the North Carolina Agricultural Manufacturing and Processing Initiative by giving grants to agriculture manufacturing facilities instead of to local governments and nonprofit economic development entities for the creation or expansion of agricultural manufacturing facilities. Does, however, allow for grants to a local government providing infrastructure for agricultural manufacturing facilities.

Section 4.13

Amends Section 12.11 of SL 2023-134 by adding the follow. Requires the Department of Environmental Quality, by July 1, 2025, to submit to the EPA a proposed North Carolina State Implementation Plan amendment based on the changes to the air permitting program set out in the section.

Makes Section 12.11 effective on the first day of a month that is 60 days after the DEQ Secretary certified that the EPA has approved the amendment. Specifies that the section applies to applications for new air permits and for modifications of existing permits received on or after the effective date.

Effective retroactively to July 1, 2023.

Section 4.14

Amends GS 121-7.8, by correcting a cross-reference.

Section 4.15

Amends Section 14.5(c) of SL 2023-134to require ta of the funds allocated, that the amount necessary for the Saluda Grade Tails Conservancy to provide earnest money deposit toward the purchase of the Saluda Grade rail corridor, as well as related assessment, due diligence, and transaction costs (was, earnest money deposit only), up to $2 million, will be provided as soon as possible. Also corrects a cross-reference.

Amends Section 14.7(f)(2) of SL 2023-134 by correcting an internal cross-reference.

Section 4.16

Specifies that funds appropriated by SL 2022-74 to the Department of Agriculture and Consumer Services for a directed grant to the NC Foundation for Soil and Water Conservation pursuant under Section 10.3 for cost share assistance to swine farmers for the installation of anaerobic digesters to produce biogas, do not revert and remain available until June 30, 2026. Effective June 30, 2024.

Section 4.17

Makes the following additional changes to the Title V air permitting bonus program (previously in Section 4.3 of the act).

Amends the definition of major modification applicable to Section 12.17 of SL 2023-134 so that it is a significant modification, as defined in 15A NCAC 02Q .0516. Defines meteorologist to mean a quality employee that is the primary reviewer of the dispersion modeling analysis of air quality impacts associated with a new or modified emissions source submitted in support of a Title V Air Permit application. Adds that if a qualifying employe is reviewing an air application that requires a construction and operation permit, they are only eligible for a bonus for the processing and reviewing of the construction and operation permit prior to construction, regardless of the option to file a subsequent application required within 12 months after commencing operation to modify the construction and operation permit to meet the specified requirements.

Part V.

Section 5.1

Amends GS 7A-133 by eliminating the satellite courts for Robeson County. Effective January 1, 2025.

Section 5.2

Amends GS 7A-60 by decreasing by one the number of full-time assistant district attorneys for Wake County, so it is now 44, for Cumberland County so it is now 25, for Mecklenburg County so it is now 61, for Forsyth County so it is now 27, for Randloph County it is now 10, and for Cherokee/Clay/Graham/Haywood/Jackson/Macon/Swain counties so it is now 15.

Adds new (a3) which gives the North Carolina Conference of District Attorneys authority to assign assistant district attorney positions to specific counties to serve as special assistant US attorneys. Limits the number of positions subject to this position to six.

Amends Section 39.6 of SL 2023-134, concerning the salaries of assistant district attorneys effective July 1, 2023, and July 1, 2024, by adding that an assistant district attorney assigned to a county under new (a3) is treated as an assistant district attorney of the judicial district where the county is located.

Part VI.

Section 6.1

Amends the changes to the directed grants that are to be allocated by OSBM found in the 3rd edition as follows.

No longer requires that the $100,000 directed grant to Wilson Pregnancy Center, Inc., for capital needs and security upgrades instead be provided to the Wilson County School: Her Pride Afterschool Mentoring Program. No longer requires that the $4 million directed grant to Burke County for capital improvements or equipment for fire departments instead be provided for Emergency Medical Services.

Adds the following changes.

·         Requires the $1 million directed grant to Davidson-Davie Community College Foundation, Inc., for the 2023-2024 fiscal year for capital improvements, including construction of a regional training and distribution center, instead be provided to Davidson-Davie Community College.

·         Requires the $325,000 directed grant to Gaston County for the 2023-2024 fiscal year to be used by the Gaston County Sheriff's Office to purchase or upgrade safety equipment instead be provided in the specified amounts to the Gaston County Sheriff's Office and to the Gaston County Police Department for a mobile command unit.

·         Allows the $1 million grant to Johnston Community College for the 2023-2024 fiscal year for capital improvements or equipment at the STEAM building to also be used for other improvements.

·         Requires the $6.5 million directed grant to Mayland Community College for the 2023-2024 fiscal year to develop a YMCA in Spruce Pine to instead be provided to Mayland Community College Foundation, Inc.

·         Allows the $15 million directed grant to North Carolina's Eastern Alliance Corporation for 2023-2024 for capital improvements or equipment for STEM educator training to also be used for other purposes related to the work of the organization to grow the economy of eastern North Carolina.

·         Requires the $100,000 directed grants to Pender County Christian Services, Inc., for the 2023-2024 fiscal year for Meals on Wheels and to Willard Outreach Organization for the 2023-2024 fiscal year for Meals on Wheels to instead be provided as a directed grant to Pender Alliance Council to be used for capital projects.

·         Requires the $100,000 directed grant to Randolph County Schools for the 2023-2024 fiscal year for athletic facilities at Providence Grove High School to be used for athletic facility upgrades at schools in Randolph County.

·         Expands the allowable uses for the directed grant to Robeson County – Animal Control so it can also be used for animal vaccinations and enrichment toys.

·         Requires the $350,000 directed grant to the Rocky Mount Area Wesleyan College Foundation, Inc. for the 2023-2024 fiscal year to support a nursing program instead be provided to the North Carolina Wesleyan University for the University's nursing program.

·         Requires that the $800,000 directed grant to the Town of Banner Elk for the 2023-2024 fiscal year to demolish the former Cannon Memorial Hospital building and remove asbestos containing materials be used by the Town for a public purpose.

·         Requires the $7,350,000 directed grant to the Town of Fair Bluff for the 2023-2024 fiscal year to be used for various purposes to remain available to the Town until the grant funds are expended for the allowed purposes.

·         Requires the $300,000 directed grant to the Town of Pollocksville for the 2023-2024 fiscal year to be used for a mobile medical unit to instead be used by the Town for a public purpose.

·         Allows the $750,000 directed grant to the Young Men's Christian Association of the Triangle Area, Inc. for the 2023-2024 fiscal year for capital improvements or equipment at the East Triangle YMCA to instead be used for any purpose at the East Triangle YMCA.

·         Requires the $5 million directed grant to the Eastern Carolina Young Men's Christian Association, Inc., for the 2023-2024 fiscal year to fund a community pool project with Onslow County, the City of Jacksonville, and Onslow County Schools to instead be provided to the New River Young Mens Christian Association Onslow, Inc.

·         Requires the directed grant to the Friends of the Overmountain Victory Trail in the $200,000 for the 2023-2024 fiscal year to instead be provided to OVNCST-Friends.

·         Requires the $250,000 directed grant to the Greater Fair Bluff Chamber of Commerce for the 2023-2024 fiscal year for development to remain available until the grant funds are expended.

·         Requires the $500,000 directed grant to the Wildlife Resources Commission for the 2023-2024 fiscal year for capital improvements related to parking and bathroom facilities at Rhodes Pond to instead be provided to Cumberland County.

·         Requires the $350,000 directed grant to the Town of China Grove for the 2023-2024 fiscal year for capital improvements or equipment for downtown, to instead be used for capital improvements or equipment in the Town's westside neighborhood.

·         Requires that the $30,000 directed grant to Innovative Community Schools and Services, LLC for the 2023-2024 fiscal year for The School of Hope for autism to instead be provided to the Hope School for Autism.

·         Requires the $210,000 directed grant to the Town of Bear Grass for the 2023-2024 fiscal year for capital improvements or equipment at the Yucca House, Inc. facility instead be used by the Town to purchase equipment and to make capital improvements at another building for the Town's office and storage.

·         Requires the $40,000 directed grant to the Dan River Basin Association for the 2023-2024 fiscal year for capital improvements or equipment at the Chinqua-Penn Walking Trail instead be provided to The North Carolina Agriculture Foundation, Inc.

·         Requires the $4.5 million directed grant to Hayden-Harman Foundation for the 2023-2024 fiscal year for capital improvements or equipment for the Washington Street enhancement and High Point Collaborative to instead be used for capital improvements or equipment for the Washington Street enhancement and to support the High Point Collaborative.

·         Requires that the $50,000 directed grant to the Holly Springs Youth Orchestra for the 2023-2024 fiscal year t instead be provided to the Town of Fuquay-Varina for school safety initiatives.

·         Requires budgeted receipts from the ARPA Temporary Savings Fund to provide $5 million in additional funds to Wake Forest Institute for Regenerative Medicine for each fiscal year of the 2023-2025 fiscal biennium to instead be provided to RegenMed Development Organization.

Requires that of the $4 million appropriated to the OSBM– Special Appropriations for the 2023-2024 fiscal year to provide a directed grant to Cleveland County for cultural projects and programming, that $500,000 be used for the specified purposes.

Requires that $1 million of the funds appropriated to the OSBM– Special Appropriations for the 2023-2024 fiscal year to provide a directed grant to the Town of Clayton for capital improvements or equipment at the Clayton Senior Community Center be used instead for property acquisition, construction, capital improvements, or equipment for a community senior center or a community civic center.

Requires that $3 million appropriated to the Department of Military and Veterans Affairs for the 2024-2025 fiscal year to provide a directed grant to Purple Heart Homes, Inc., be appropriated instead to the Office of State Budget and 35 Management – Special Appropriations to provide a directed grant to Purple Heart Homes, Inc., for the purpose provided in Section 33.11 of S.L. 2023-134. Specifies that the remaining provisions of Section 33.11 of S.L. 2023-134 continue to apply to Purple Heart Homes, Inc.

Section 6.2

Amends GS 84-18.1, as amended, to cap a district bar membership fee at $90 (was, the fee is $90).

Section 6.3

Amends GS 58-21-85, concerning surplus lines tax, by referring to the due date for premium receipts tax for surplus lines licensees (was insurers). Amends GS 58-58-120 by requiring a notice of life insurance payments due that must be sent before forfeiture to be sent a person’s last known address (was, address in this State).

Section 6.4

Amends statutes throughout Article 31, Insuring State Property, Officials and Employees, of GS Chapter 58 by transferring duties and powers from the Commissioner of Insurance to the Office of the State Fire Marshal.

Recodifies GS 58-78A-16 as GS 58-31-41.

Amends statutes throughout Part 1, Public Education Property, of Article 31A of GS Chapter 58 by transferring duties and powers related to insurance of public education property from the Commissioner of Insurance to the State Fire Marshal.

Amends GS 58-31A-60 by giving the State Fire Marshal, instead of Commissioner of Insurance, powers related to catastrophic insurance coverage for school athletes.

Amends GS 58-32-1 by placing the Public Officers and Employees Liability Insurance Commission within the Office of the State Fire Marshal instead of the Department of Insurance; makes conforming changes.

Amends GS 58-78A-1 by making the Office of the State Fire Marshal also responsible for ratings and inspections, and grants and governmental services.

Amends GS 143-135.26 by correction statutory cross-references.

Amends GS 143-345.11, concerning approval of plans for State buildings, by assigning specified powers and duties to the State Fire Marshal instead of the Commissioner of Insurance.

Amends GS 143-138 to require test results for electrical and mechanical equipment to be filed with the Department of Insurance instead of Office of the State Fire Marshal.

Amends GS 143-139 by correcting a statutory cross-reference.

Amends GS 143-140.1 to require appeals on matters pertaining to alternative design construction or methods to be heard by the Engineering and Building Codes Division of the Department of Insurance (was, the Department of Insurance Engineering Division). Makes conforming changes. Requires the State Fire Marshal, instead of the Commissioner of Insurance, to adopt related rules.

Section 6.5

Repeals Section 24.1(b) and (c) of SL 2022-74, which concern a directed grant to Dare County for making a forgivable loan to the qualified private partner selected by the County to construct affordable housing units in accordance with the County's longstanding master development plan to increase workforce housing. Repeals Section 24.8 of SL 2023-134, which set out requirements that applied to all construction of buildings and infrastructure under the agreement entered into for this partnership.

Part VII.

Section 7.1

Amends Section 38.4 of SL 2023-134 to require that for the duration of the pilot program where the State Highway Patrol, the State Bureau of Investigation, and the Division of Emergency Management are deemed stand-alone entities in all matters related to information technology, and shall autonomously manage their own respective information technology infrastructure and all associated services, that the State Highway Patrol and Division of Emergency Management continue to use personnel from the Department of Public Safety to perform technology purchasing and procurement.

Section 7.2

Adds new Section 38.9 to S.L. 2023-134 which allows funds appropriated in the act to the Government Data Analytics Center to also be used to support modernization within NC Healthconnex. Reverts unexpended funds on June 30, 2025.

Part VIII.

Section 8.4

Amends Section 39.28A of SL 2023-134 by waving any penalty payment assessed (was, payment determined to be owed) under GS 135-8(f)(3) related to reporting requirements of employee and employer contributions by Gaston County Public Schools for January 1, 2022-June 30, 2023.

Part IX.

Section 9.1

Amends Section 40.8 of SL 2023-134, as proposed in the 3rd edition, as follows. Adds the following. Requires the $575,000 transferred to the Office of State Budget and Management to provide funds to the Town of Gibsonville for the 2023-2024 fiscal year and $425,000 for the 45 2024-2025 fiscal year to be used for capital improvements or equipment for the police department shall instead be transferred to the State Capital and Infrastructure Fund to be disbursed to the Town for the described purposes. Requires the $5 million allocated to Brunswick County for the 2023-2024 fiscal year instead be provided as separate grants of $1 million five specified entities. Requires that the grants and funds allocated from the State Capital and Infrastructure Fund and the ARPA Temporary Savings Fund described as being provided to the Katie Blessing Foundation, a nonprofit in Mecklenburg County, to be used to build a new pediatric and adolescent behavioral health facility.

Amends Section 40.1 to allow funding for the Givens Performing Arts Cener to be used for replacement or renovation (was, renovation only).

Amends Section 40.17, as amended by adding: (1) the $450,00 allocated to Cleveland Community College for the 2021-2022 fiscal year must instead be allocated as a grant to Cleveland County for a new law enforcement training driving pad for Cleveland Community College; (81) the $1.5 million provided to Cleveland Community College for the 2021-2022 fiscal year may also be used for renovation, new construction, and equipment.

Part X.

Section 10.1

Amends GS 20-4.05, which concerns the DMV”s authority to charge transaction fees on electronic payments by adding that the statute applies to transactions completed in person, through the world wide web, or through any other means of electronic access. Effective July 1, 2024.

Section 10.2

Adds a new section 41.20 to SL 2023-134 which replaces: (1) Fund Code 1332, referenced for funds appropriated to the Department of Transportation (DOT) for State Retirement Contributions, with Fund Code 0871; (2) Fund Code 7031, referenced for funds appropriated to the DOT for Safety and Risk Management Equipment, with Fund Code 7185; and (3) Fund Code 7070, referenced for Multi-State Highway Planning Funds, with Fund Code 7811.

Section 10.3

Repeals Section 41.14(a) of SL 2023-134 which extended the duration of drivers license to 16 years and allowed licenses to be renewed remotely no matter how they were previously renewed.

Section 10.4

Repeals the requirement to submit an implementation status report in October of 2023 on the creation of 14 maintenance and construction tech III positions at DOT.

Section 10.5

Specifies that the requirement to submit an annual S-line rail corridor reconstruction project status report begins June 30, 2024 (was, October 1, 2023).

Section 10.6

Adds a new section to SL 2023-134 allowing up to $1 million of the funds in Fund Code 7830 for the New Hanover Airport Authority to be used for general capital improvements and other needs.

Section 10.7

Amends Section 41.4 of SL 2022-74 by extending by one year the date by which an airport allocated funds under Section 4.7 must expend or encumber those funds.

Section 10.8

Allows the Board of Commissioners of Lincoln County (Board) to terminate and dissolve the Lincolnton-Lincoln County Airport Authority (Authority). Sets out actions the Board may order the Authority to take in the event of termination related to the transfer of property and assigning of executory contracts. Repeals specified local acts if the Authority is terminated and dissolved and allows the County to operate the airport as a public enterprise.

Part XI.

Section 11.1

Amend GS 105-187.94, as enacted in Section 42.19 of SL 2023-134, by excluding from the excise tax, for-hire ground transport service provided as public transportation on behalf of a state agency, specified governmental entity, or a local board of education. Applies to for-hire ground transport services on or after July 1, 2025.

Section 11.2

Amends GS 105-122, as amended, to provide that for a C corporation, the tax rate is $1.50 per $1,000 of its tax base with a maximum of $500 for the first $1 million of the corporations tax base. Amends GS 105-120.2, as amended, by making a conforming change to the privilege tax. Effective for taxable years beginning on or after January 1, 2025, and applicable to the calculation of franchise tax reported on the 2024 and later corporate tax return.

Section 11.3

Amends GS 105-154.1(a1), as enacted by Section 42.21(b) of SL24 2023-134, by extending the time for which a partnership may elect to have the income tax Article imposed on the partnership for any taxable period covered by the return so that the amended return is due by July 1, 2024.

Section 11.4

Amends GS 105-113.36A(f), as amended to provide that if a person liable for the tobacco tax cannot produce to the Secretary's satisfaction documentation of the cost price, weight, count, or volume of the items subject to tax, based on the applicable tax imposed, the Secretary may determine a value based on: (1) the cost price, weight, count, or volume of comparable items, or (2) the average of the actual price paid by the person liable for the tax for the item over the 12 calendar months before January 1 of the year in which the sale occurs. Applies to sales or purchases on or after July 1, 2025.

Part XII.

Effective July 1, 2023, unless otherwise provided.

Deletes the following provisions from the 3rd edition.

Removes the amendments to GS 153A-145.11(a)(1) and GS 160A-205.6(a)(1) which changed the scope of a local government’s authority to restrict, tax, charge a fee, prohibit, or otherwise regulate auxiliary containers under those statutes to only prohibit these local government entities from restricting the use or sale of an auxiliary container (instead of use, disposition, or sale).

Deletes the changes to Section 8A.6(s) of SL 2023-134 which would have delayed the date by which the State Board of Education must adopt emergency rule related to early graduation.

Deletes the changes to Section 11.19 of SL 2021-180 which changed funding allocations if the Economic Investment Committee awards a Job Development Investment Grant for a qualifying project to a manufacturer in Randolph County while the county is classified as a development tier one area.

Deletes the proposed changes to Section 35.1 of SL 2023-134 which would have changed the effective date of the increase in the lobbying fee.

Deletes the changes to GS 126-6.3 concerning temporary employment needs of Cabinet and Council of State agencies.

Deletes the proposed new section in Part XL of SL  2023-134 which would have allowed OSBM to use up to $1 million for up to five temporary positions to assist in the administration of grants and other funding allocations from the State Capital and Infrastructure Fund.

Amends the act's long title.