House committee substitute to the 1st edition makes the following changes.

Deletes changes to Section 12.9(e), SL 2022-74, which provided for allocations of funds appropriated to DEQ for the Water Infrastructure Fund, as follows. More specifically requires $1 million be allocated to Harnett Regional Water to construct water or sewer lines inside the Town of Erwin and removed the apportionment previously specified for the $8 million allocated to the Town of Walnut Cove.

No longer repeals GS 143-214.7B, which grants rulemaking authority to the Environmental Management Commission to establish a fast-track permitting process that allows for the issuance of stormwater management system permits without a technical review when the permit applicant complies with DEQ's Minimum Design Criteria for stormwater management and submits a permit application prepared by a qualified professional.

House committee substitute to the 2nd edition makes the following changes. Amends GS 160D-917 (pertaining to accessory dwelling units [ADU]) as follows. Specifies that an ADU may be built or sited at any time before, concurrently, or after the primary detached dwelling (was, just primary dwelling) has been constructed or sited. Deletes provision barring local governments from requiring owner-occupancy of the primary single-family detached dwelling unit (now, only bars local governments from requiring owner-occupancy of ADU’s). Prohibits a local governments from prohibiting the connection of the ADU to existing utilities systems serving the primary single-family detached dwelling only if the utility service has the capacity to serve both dwellings. Specifies that new GS 160D-147 does not apply to properties located in a historic preservation district and properties designated as a National Historic Landmark by the US Department of Labor.

House committee substitute to the 1st edition makes the following changes.

Part I

Deletes proposed changes to GS 115C-270.5.

Amends GS 115C-284.1, Administrator Preparation Programs (APP) as follows. Specifies that for an APP to recommend candidates for licensure it must be approved by the State Board of Education (Board). Specifies that an APP is an entity that meets all of the following: (1) prepares, trains, and recommends candidates for administrator licensure; (2) leads to Master's of School Administration (MSA) or Master's of Education in Educational Leadership unless the candidate already holds a master's or doctoral degree in an education-related field; and (3) is accredited by a programmatic accrediting agency recognized by the Secretary of Education pursuant to federal law or was approved by the Board as a school administrator preparation program before April 1, 2023. Requires the Board to adopt rules for approval of an APP that ensure: (1) a rigorous approval process that requires that the criteria in GS 115C-284.1 are met; (2) an application process, peer review, and technical assistance provided by the Board; and (3) an approval period of five years and process for renewal. Grants the Board authority to approve an APP that meets the rules for approval set forth in GS 115C-284.1. Specifies nine additional minimum approval standards for APPs, in addition to already existing requirement that the rules for approval must incorporate the criteria developed in accordance with assessing proposals under the School Administrator Training Program. Directs the Board to develop rules to determine whether an applicant who completed an administrator preparation program outside the State meets or exceeds the requirement to hold a State administrator license.  Makes conforming change to GS 115C-270.1 (definitions section of licensure provisions pertaining to personnel for elementary and secondary education school systems) by adding defined term approved administrator preparation program or approved APP.

Amends GS 115C-270.20 (licensure requirements) to change the proposed licensure requirements for administrators and provisional assistant principals and to add a student services personnel license, as follows. Now establishes the requirements for a five-year renewable license to administrators as: (1) a bachelor's degree; (2) successful completion of an approved APP; (3) at least four years of experience as a licensed professional educator; and (4) submission of a portfolio to the Board for approval that meets criteria adopted by the Board. (Was: (1) submission of a complete application to the Board; (2) payment of the applicable fee; (3) a Bachelor’s degree from an accredited college or university; (4) complete an accredited school administrator preparation program listed in GS 115C-284(c2) as amended by the act (discussed below) or approved by the Board; (5) at least four years of experience as a licensed professional educator and certain graduate degrees; (6) submission of a portfolio to the Board for approval.) Changes the licensure requirements for a provisional assistant principal license to: (1) a determination by the local board of education that there is a demonstrated need for administrators and the employee enrolls in an approved APP by the end of the first year of the provisional license and (2) the employee is participating in an internship required for completion of an APP. (Was, (1) the local board determines there is a demonstrated need for administrators and the employee enrolls in an approved school administration program leading to a master’s degree in school administration or educational leadership before the provisional license expires; or (2) the employee is enrolled in an approved master’s program in school administration and participates in the required internship under the master’s program.) Moves the requirement that continuing licensure for administrators include education in digital teaching to GS 115C-270.30 (licensure renewal).

Removes amendments to GS 115C-284 that would change the school administrator internship requirement from a yearlong internship to 1,000 hours in duration and which would require the Board to issue rules to determine whether or not applicants who completed a school administrator program outside the State meet or exceed the requirements to hold a State license. Moves bar on provisional licenses for principals to GS 115C-284(e).

Exempts individuals who are eligible for the principal license requirement waiver under Section 1 of SL 2021-170, as amended (making various changes to laws affecting principal licensure and other matters). 

Makes Part I applicable beginning July 1, 2024 (was, applied beginning with applications for administrator licenses submitted on or after July 1, 2025). 

Deletes Part III in its entirety, which was the requirement that the Department of Public Instruction, in consultation with the Professional Educator Preparation and Standards Commission, to study ways to improve school administrator licensure and preparation processes to ensure that all school administrators in the State are prepared to lead schools that provide high-quality instruction to all students.

Makes conforming, technical, and organizational changes. Makes conforming changes to the act’s long title.

House committee substitute amends the 1st edition as follows. 

Part I.

Corrects an NCGA committee name. Adds the following.

Directs the Department of Health and Human Services, Division of Health Benefits (DHB), to implement Medicaid coverage of schoolbased transportation in adaptive vehicles for students with disabilities provided by local education agencies on the days they receive Medicaid covered health-related services, as described in Clinical Coverage Policy 10C. Requires DHB to submit a State Plan amendment, or develop a new or amend an existing clinical coverage policy; assign a CPT code as needed; and develop billing instructions. Requires coverage to be effective the later of July 1, 2023, or any effective date required by the Centers for Medicare and Medicaid Services (CMS). 

Requires an annual parental consent form to be signed in order for a child to access services provided at a school health clinic. Mandates that the form include a list of services provided, including specific preventative services provided, if any; a list of services available off-campus upon referral; and a list of other clinics to which the clinic may refer a student. Applies beginning with the 2023-24 school year. 

Part II.

Corrects an NCGA committee name.

Changes the act's titles.

House committee substitute to the 1st edition makes the following changes.

Amends GS 115C-218.45 as follows. Allows a charter school that is unable to fill its current enrollment with students qualified for admission to a public school to enroll out-of-state students who are domicilaries of other sates (was, school age children who are not domiciliaries of the State). Amends the amount of the tuition that may be charged those students, so that it is an amount of at least 50% of the total of the per pupil allocation for the local appropriation for that school year but no more than 100% of the total of the per pupil allocation of the local appropriation for the county in which the charter school is located and the per pupil State appropriation for that school year (was, a tuition amount equal to the per pupil allocation of the local appropriation for the county in which the charter school is located and the per pupil State appropriation for that school year). Adds that a charter school may enroll a foreign exchange student (as defined) as follows. Prohibits enrolling more than two foreign exchange students per high school grades nine through twelve. Allows charging the foreign exchange student the same amount as charged out-of-state students above. Specifies that foreign exchange students do not count towards the enrollment capacity or cap for any program, class, building, or grade level for grades nine through twelve and are not subject to any enrollment lottery process. Makes conforming changes to the act's titles.

House committee substitute to the 1st edition makes the following changes. Renumbers new GS 90-640 to GS 90-641 (the act’s short title) and 90-641 to 90-642 (definitions).

Amends GS 90-643’s requirements for health care practitioners, when providing health care to a patient, so that they only need to wear a badge or other form of ID displaying the practitioner's name and the license, certification, or registration held by the practitioner. (Previously also required to have a photo and the expiration date of such license.) Requires the ID to display a photo when reasonably possible. Clarifies that the act does not require a health care practitioner to display their license, certification or registration number on a badge or other form of ID.  Changes the effective date to October 1, 2026.

Enacts new GS 90-644 (advertisement and representation requirements). Reorganizes provisions barring health care practitioners from making misleading statements, provisions barring non-licensed individuals from holding themselves out to the public as a physician by using certain titles, and provisions requiring that advertisements for health care services that name a health care practitioner to identify the type of license held by the health care practitioner into new GS 90-644. Specifies that provisions should not be construed to prevent a health care practitioner from using any title or abbreviation which is authorized for such health care practitioner pursuant to licensing statutes.

Enacts new GS 90-643 (violations and enforcement) as GS 90-645. Deletes provisions allowing for persons who suffer injuries or damages as a result of a violation of the Article to seek injunctive relief in Wake County Superior Court. Reorganizes provisions requiring health care practitioners who work in more than office to comply with the Article in each practice setting and exempting health care practitioners that work in non-patient settings with no direct patient health care interactions from the act into new GS 90-645.

Makes organizational changes and conforming changes to the act’s long title and effective date.

House committee substitute to the 1st edition makes the following changes. Amends GS 105-277.1C to require that an application for prequalification under the section must also be accompanied by a copy of the veteran’s disability certification received under 38 USC 2101 (was, just needed to submit the form provided by the Department of Veterans’ Affairs).

House committee substitute to the 1st edition makes the following changes.

Amends GS 130A-152 to require that the immunization has been approved (was, licensed) by the FDA for a minimum of three years unless both the NC Medical Society Board of Directors and the NC Pediatric Society Board of Directors (was, 3/5 of the members of the Commission for Public Health Commission votes) recommend to authorize the immunization earlier. Makes conforming changes.

House committee substitute to the 1st edition makes the following changes. 

Amends proposed GS 131E-78.4 by replacing the term smoke evacuation system with smoke evacuation/filtering system, now defined as stand-alone, portable equipment that effectively captures, filters, and eliminates surgical smoke at the site of origin before the smoke makes contact with the eyes or respiratory tracts of occupants in the room. Specifies that this equipment does not have to be interconnected to the hospital or ambulatory surgical ventilation or medical gas system.

House committee substitute to the 1st edition makes the following changes. Makes technical change to GS 150B-1(d) to account for newly enacted SL 2023-10.

Sets an open primary for certain offices to be held on a Tuesday set by the General Assembly, with voters voting for one candidate from a list of candidates and the top four candidates advancing to the general election. Applies to the election of any State or federal office, including any statewide executive office, the office of United States Senate, the office of United States House of Representatives, member of the State Senate, member of the State House of Representatives, and elected judicial offices, except for elections for president. Provides for petitioning requirements to appear on a primary ballot and contents of ballot.  Specifies that minor parties qualified for the general election in accordance with GS Chapter 163 are not required to compete in the primary and may choose their nominees by party convention and that other minor parties may choose their candidates by meeting ballot access requirements set by State law.

Provides that the general election will be held on the first Tuesday after the first Monday in November in even-numbered years, and will be conducted by ranked choice voting. Specifies that ranked choice voting (i.e., a system where voters rank candidates in order of preference and candidates with fewest first-preference votes are eliminated after an initial tabulation and those votes are redistributed to candidates that voters have marked as their next preference) will be used any time there are at least three candidates in the general election. If only two candidates are in the general election, then the standard voting method set forth in GS Chapter 163 applies. Directs the State Board of Elections (Board) to research and develop an optimal method for conducting and counting a ranked-choice voting election that complies with the act. Specifies four things that the Board should review in conducting the Study, including previous ranked-choice elections in the State.  Directs the Board to also (1) research and design an easily understood ballot to work with various voting equipment used in the State and (2) develop a program of voter education in ranked choice elections. 

Effective December 1, 2023.

Appropriates $410,000 from the General Fund to the Board in nonrecurring funds for each year of the 2023-25 fiscal biennium to be used as follows: $210,000 for each year of the biennium for information technology development work related to election reporting and ballot changes to integrate into the current Statewide Elections Information Management System and $200,000 for each year of the biennium to be used for statewide education and training. Effective July 1, 2023.

Enacts new GS 105-130.49 to Part 1, and new GS 105-153.11 to Part 2, of Article 4, GS Chapter 105, providing identical provisions to establish a work opportunity tax credit for both corporate and individual taxpayers as follows. Allows a credit against corporate or individual taxes imposed under Part 1 or 2, as appropriate, equal to the amount allowed under the specified section of the Internal Revenue Code (Code), for a taxpayer that employs an eligible vocational rehabilitation referral. Defines eligible vocational rehabilitation referral as a referral (defined by the Code) who was unemployed prior to being hired by the taxpayer applying for the credit and is employed by the taxpayer for at least 20 hours per week, above minimum wage, for at least 12 consecutive weeks during the calendar year. Bars the credit from exceeding the total tax imposed for the taxable year less the sum of all credits allowed, except payments of tax made by or on behalf of a taxpayer. Establishes substantiation and recordkeeping requirements, and requires that the Secretary of Revenue have access to relevant records. Bars a taxpayer from claiming the credit if the taxpayer fails to maintain or make available adequate records, or terminates an employee or otherwise reduces its workforce to create a new hire eligible for the credit. Requires taxpayers to provide listed information for the Department of Revenue to itemize and include in the economic incentives report required by GS 105-256. Effective for taxable years beginning on or after January 1, 2023.

Appropriates $1 billion from the American Rescue Plan Act (ARPA) Temporary Savings Fund (established under Section 1.3 of SL 2023-7) to the Department of Health and Human Services (DHHS) in nonrecurring funds to be allocated in specified amounts and used as described below. Specifies that the funds will become available during the course of the 2023-2025 fiscal biennium as the funds are deposited into the ARPA Temporary Savings Fund. Prevents DHHS from providing allocations of the funds appropriated by the act until the funds are available within the ARPA Temporary Savings Fund, in whole or in part. When any portion of the funds appropriated by the act becomes available, the Secretary of DHHS must promptly allocate those funds for the uses described below and, at the discretion of the Secretary, must prioritize the allocations, taking into account any timelines for the use of the funds, the best interest of the citizens of the State, and the avoidance of any disruption in services to those citizens. Effective on the date the Current Operations Appropriations Act (Act) for the 2023-2024 fiscal year becomes law or July 1, 2023, whichever is later. Specifies that if, by June 30, 2024, no Act for the 2023-2024 fiscal year has become law, then the act expires on that date.

Allocates specified funds to the Division of Child and Family Well-Being as follows: to expand access to family partners capable of supporting the caregivers of children with high behavioral health needs; to expand intensive supports in the community that facilitate the coordination of wraparound services for families; to increase structured options for trained and licensed parents to meet the needs of children in crisis, such as Intensive Alternative Family Treatment services; to strengthen and expand specialized behavioral health treatment options in community, residential, and inpatient settings for children to divert them from emergency departments; to launch community assessment teams to facilitate the provision of behavioral health services to children within their communities by clinicians who specialize in working with children; for the statewide expansion of school behavioral health services.

Allocates specified funds to the Division of Mental Health, Developmental Disabilities and Substance Abuse Services as follows: for behavioral health mobile crisis teams able to address the needs to children experiencing a behavioral health crisis; to increase the number of youth crisis stabilization beds available statewide and to create reserve crisis stabilization bed capacity; the 988 Suicide & Crisis Lifeline; to be used as start-up funding for new mobile crisis teams; to develop new behavioral health urgent care and facility-based crisis combination facilities, peer drop-in facilities, and additional North Carolina Systemic, Therapeutic, Assessment, Resources and Treatment (NC START) respite locations; a pilot program transporting individuals needing psychiatric hospitalization from hospital emergency departments and behavioral health urgent care facilities to the inpatient facility at which a bed has been located for each individual; and for housing supports for individuals with serious mental illness and competitive integrated employment training that enhances employment opportunities for individuals with intellectual and developmental disabilities; to expand the number of certified community behavioral health clinics in this State; for an education campaign to reduce stigma around mental health; for the development of a workforce training center that provides training to behavioral health and intellectual and developmental disabilities providers at no charge to the provider; to operate community-based pre-arrest diversion and reentry programs and to fund local partnerships between law enforcement, counties, and behavioral health providers; to operate both community-based and detention center-based restoration programs; for judicial education programs designed to increase understanding of mental health issues and behavioral health treatment options; to be used to support individualized community-based treatment and support for adults with long lengths of stay or repeated stays at State-operated psychiatric hospitals; to recruit and retain the healthcare workforce at State-operated healthcare facilities; to implement electronic medical records in all State-operated healthcare facilities; for the purchase of automated medication dispensing cabinets at State-operated healthcare facilities; to expand the centralized bed  registry, known as BHSCAN; to provide funding and technological assistance to behavioral healthcare providers related to the modernization of data and technology.

Allocates specified funds to the Division of Social Services as follows: (1) to provide Division-based supports  for families, including professional foster parenting programs; (2) to provide funding for intensive supports in the community, such as (i) programs that specialize in collaborating with parents who struggle with substance use and (ii) teams that coordinate and provide wraparound family services including specified Division programs such as the Sobriety Treatment and Recovery Team and Safe Babies Court; and (3) to strengthen and expand the child welfare workforce.

Allocates specified funds to the Division of Health Benefits to increase connections between primary care providers and psychiatry services.

Allocates specified funds to the Division of Central Management and Support, Office of Rural Health to expand the North Carolina Loan Repayment Program to include all licensed providers of behavioral health services practicing in rural and underserved areas of the State who are enrolled Medicaid providers and to increase access to telehealth services in rural and underserved areas of the State

Allocates the specified funds to the Division of Health Benefits to be used to increase rates paid to Medicaid behavioral healthcare providers for a period of three years.

Allocates the specified funds to DHHS to be used for administrative purposes related to one or more programs for which funds have been allocated as described above, including creating up to 48 time-limited positions. 

Requires DHHS to submit quarterly reports to the specified NCGA committees and the Fiscal Research Division on the use of funds and other specified information beginning January 1, 2024.  Provides for termination date of the reporting requirement. 

Amends GS 160A-200.1. Allows for cities to take remedial action upon a "chronic violator" of the city's nuisance ordinance without a second or additional notice provided on a rolling 12-month basis (was, in the calendar year in which notice is given). Defines a "chronic violator" as a person who owns property, and, on a rolling 12-month basis (was, in the previous calendar year), was given notice of violation at least three times. 

Appropriates $25,000 in nonrecurring funds from the General Fund to the League of Municipalities for fiscal year 2023-24 to educate cities on this authority.

Appropriates from the General Fund to the NC General Assembly $91,000 in nonrecurring funds and $4,000 in recurring funds for fiscal year 2023-24 to obtain, install, and maintain equipment for NC House committee meeting rooms and the House chamber. Specifies that the equipment will be used for viewing and recording of proceedings. States that the goal of recording is to make available real-time internet access to audio and video of committee meetings and chamber proceedings and archival access to the content for ten years. Effective July 1, 2023. 

Transfers $3.85 million in funds that were designated for Tropical Storm Fred recovery efforts (appropriated by the General Assembly through SL 2021-180) to the State Emergency Response and Disaster Relief Fund. Reallocates funds for the following: (1) $2 million for relocation and buyouts of homes in floodplains that were damaged by Tropical Storm Fred, (2) $1.1 million for Cruso Fire and Rescue, Inc., with $600,000 for replacement of a fire engine, and remaining funds for the relocation of the fire department and, (3) $750,000 for Pisgah High School for repairs and replacements at the school-used agricultural farm. Effective July 1, 2013.

Enacts new GS 130A-19.1, providing as follows. Allows the Secretary of Environmental Quality (Secretary), when he determines that the concentration of any PFAS in a public water system, including any raw water intake, regardless of the system's raw water source, including surface water, public well, or pumped groundwater storage, has exceeded a permissible concentration level (as specified), to order the responsible party to pay the public water system costs incurred in removing, correcting, or abating any adverse effects upon the water supply due to the contamination for which the person is responsible. Sets out what is included in those costs. Defines responsible party as a PFAS manufacturer whose discharge or release of PFAS into the environment has caused or contributed to the presence of PFAS in a public water system. Allows the Secretary to institute an action in the superior court of the county where the public water system exists to enforce the order if the responsible party refuses to comply. Requires the action to be calendared for trial within 60 days after service of the complaint upon the defendant. Provides that a responsible party is jointly and severally liable for all actual and necessary costs. Requires a public water system to reimburse ratepayers of the system by reducing that rate charged in the future if (1) the public water system has previously expended funds to remove, correct, or abate any adverse effects upon its water supply resulting from PFAS contamination, (2) the amount of funds expended by the public water system for that purpose has been included in rates charged to its ratepayers, and (3) the funds expended by the public water system are subsequently reimbursed by the responsible party as the result of a court order. Applies retroactively to discharges from responsible parties occurring on or after January 1, 2017.

Appropriates $2 million for 2023-24 from the General Fund to the Department of Environmental Quality (DEQ) to implement this act. Requires the funds to be deposited in the PFAS Public Water Protection Fund and allows DEQ to establish time-limited positions with these funds. Requires DEQ to report annually, beginning by December 15, 2023, to the specified NCGA committee on the use of the funds. Effective July 1, 2023.

Directs the Department of Health and Human Services, Division of Aging and Adult Services, to partner with the Task Force on Alzheimer's Disease and Related Dementias (aka, Dementia-Capable NC Task Force) and the NC branch of the Alzheimer's Association to develop outreach programs. Charges the Division to focus educational programs on educating providers about the importance of early detection and diagnosis of impairment, importance of validated cognitive assessment tools, annual Medicare wellness visits, Medicare coverage for more complex cognitive assessments, and the development of a care plan for patients exhibiting cognitive impairment. 

Charges the Division to increase public awareness about the early signs of Alzheimer's disease and other related dementias, the importance of early detection and diagnosis, and ways to reduce the risk of cognitive decline (particularly in minority populations).

Appropriates $250,000 in nonrecurring funds for fiscal year 2023-24 and $250,000 in nonrecurring funds for fiscal year 2024-25 from the General Fund to the Department of Health and Human Services Division of Aging and Adult Services to implement this act. 

Effective July 1, 2023.

Adds new Article 1A, Water Safety Rescue Equipment at Public Docks and Piers, in GS Chapter 75A, providing as follows.

Requires the owner or operator of a covered water access facility (defined as a pier or access point that is open to the public and owned or operated by the Wildlife Resources Commission, any other State agency, or a unit of local government) located in or adjacent to waters of this state to install public rescue equipment, including at least ring life buoys, on each covered water access facility. Sets out requirements for the ring life buoys and requires the station to be a bright orange or yellow. Makes the owner or operator of the covered water access facility responsible for the installation and maintenance of the public rescue equipment and for providing public education on the public rescue equipment. 

Appropriates $25,000 for 2023-24 from the General Fund to the Wildlife Resources Commission to comply with the act and to provide grants of up to $500 to local governments in economic tier one areas to comply with this act. Effective July 1, 2023.

Requires the Division of Motor Vehicles (DMV) and the Division of Rehabilitation and Reentry of the Department of Adult Correction to establish procedures and adopt rules to facilitate issuing drivers licenses to individuals scheduled to be released from incarceration. Requires (1) inclusion of third-year law students to assist individuals in obtaining a drivers license, as part of a pro bono program; (2) scheduled drivers license tests conducted by the DMV at the correctional facility; and (3) issuance of the drivers license on release from custody.

Requires $200,000 in recurring funds of the funds appropriated from the Highway Fund to the Department of Transportation for 2023-24 be used to implement this act.

Effective July 1, 2023.

Appropriates $5 million for 2023-24 from the General Fund to the Office of State Budget and Management for a directed grant to Wake County as title indicates. Effective July 1, 2023.

Repeals GS 105-164.14(b), authorizing tax refunds for certain nonprofit entities and hospital drugs.

Amends GS 105-164.13 to add a new sales tax exemption for tangible personal property, digital property, and services for use in carrying on the work of seven specified entities, so long as the entity is not owned or controlled by the State.

The exemption applies to (1) nonprofit hospitals, including hospitals and medical accommodations operated by an authority or other public hospital described in Article 2 of GS Chapter 131E; (2) organizations exempt from income tax under 501(c)(3) of the Internal Revenue Code (Code) and not classified in the National Taxonomy of Exempt Entities major group areas of Community Improvement and Capacity Building, Public and Societal Benefit, or Mutual and Membership Benefit; (3) volunteer fire departments and volunteer emergency medical services squads exempt from income tax under the Code, financially accountable to a city as defined in GS 160A-1, a county, or a group of cities and counties, or both; (4) organizations that are single member LLCs disregarded for income purposes so long as the owner of the LLC is an organization exempt from income tax under 501(c)(3) of the Code, the LLC is a nonproft entity that would be eligible for an exemption under 501(c)(3) of the Code if it were not disregarded for income tax purposes, and the LLC is not an organization that would be properly classified in the National Taxonomy of Exempt Entities major group areas of Community Improvement and Capacity Building, Public and Societal Benefit, or Mutual and Membership Benefit; (5) qualified retirement facilities whose property is excluded from property tax under GS 105-278.6A; (6) university-affiliated nonprofit organizations, including an entity exempt from taxation as a disregarded entity of the nonprofit organization, that procures, designs, constructs, or provides facilities to or for use by a constituent UNC institution; and (7) over-the-counter drugs purchased for use in carrying out the work of a hospital not listed in one of the above entities.

Specifies this exemption includes indirect sales to a nonprofit entity of digital property and tangible personal property purchased by a real property contractor that becomes a part of or permanently installed or applied to any building or structure owned or leased by the nonprofit entity and is being erected, altered, or repaired for use by the nonprofit entity for carrying on its nonprofit activities. Further specifies that a sale to fulfill a real property contract with an entity that holds an exemption certificate is exempt to the same extent as if purchased directly by the entity that holds the exemption certificate. Requires a real property contractor that purchases an item allowed an exemption to provide (1) an exemption certificate to the retailer that includes the name of the nonprofit entity holding the exemption certificate, (2) the exemption certificate number issued to that holder, and (3) the information required pursuant to GS 105-164.28.

Specifies that this exemption does not apply to (1) purchases of electricity, telecommunications service, ancillary service, piped natural gas, video programming, a prepaid meal plan, aviation gasoline and jet fuel, and spirituous liquor or (2) sales and use tax liability indirectly paid by a nonprofit entity through reimbursement to an authorized person of the entity for tax incurred by the person on an item or transaction subject to tax under Article 5 of GS Chapter 105.

Caps the aggregate annual exemption allowed to an entity under this provision for a fiscal year at $31,700,000. Directs the real property contractor who pays local sales and use taxes on property qualifying for an exemption under this provision on behalf of an entity to give the entity for whose project the property was purchased a signed statement with the date the property was purchased, the type of property purchased, the project for which the property was used, and the county in which the property was purchased in this State or used  if purchased in another State. Directs the real property contractor to attach a copy of the sales or purchase receipt to the statement if the property was purchased in this State.

Enacts GS 105-164.29C, requiring a nonprofit entity to obtain a sales tax exemption number from the Department of Revenue (Department) to be eligible for the exemption provided in GS 105-164.13(52a), enacted above. Directs the Department Secretary to assign a sales tax exemption number to a nonprofit entity that submits a proper application, as specified. Requires a nonprofit entity that does not use the items purchased with its exemption number to pay the tax that would have been paid on the items purchased, plus interest from the date the tax would otherwise have been paid.

Amends GS 105-467(b), concerning exemptions and refunds for local sales and use tax. Provides that the State exemptions and exclusions contained in Article 5 of GS Chapter 105 (Sales and Use Tax) apply to the local sales and use tax authorizes to be levied and imposed under Article 39 (currently, specifies only exemptions and exclusions in GS 105-164.13 and GS 105-164.57A apply). Caps the aggregate annual local exemption amount allowed an entity under new GS 105-164.13(52a) for a fiscal year at $13,300,000 in tax.

Makes conforming changes to GS 105-467(b). 

Amends GS 105-236(a)(5a) to add that the offense of misusing of an exemption certificate under this subdivision, penalized by a $250 penalty, includes improper use of a certificate of exemption issued to a nonprofit entity pursuant to GS 105-164.29C, as enacted, for direct and indirect purchases by the entity or another person.

Effective October 1, 2023, and applies to sales and purchases made on or after that date. Does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this act before the effective date of its amendment or repeal, and does not affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal.

Appropriates $10 million for 2023-24 from the General Fund to the Department of Commerce (DOC) to be allocated to the NC Clean Energy Innovation and Research Fund established in this act, for clean energy innovation and research grants. Appropriates $4.5 million for 2023-24 from the General Fund to DOC for the One North Carolina Fund to provide competitive grants for support of clean energy and energy efficiency innovation, entrepreneurship, and small business development in the clean energy sector. Provides that appropriated funds that are not spent or encumbered by June 30, 2027, revert to the General Fund.

Adds new Part 2L, Clean Energy Innovation and Research Fund, in Article 10 of GS Chapter 143B, providing as follows. Establishes the NC Clean Energy Innovation and Research Fund (Fund) in DOC and makes the Office of Science, Technology and Innovation in the Department responsible for administering the Fund. Requires DOC to make grants from the Fund to private businesses with fewer than 100 employees, nonprofit organizations, local governments, and State agencies to encourage the expansion of small to medium-size businesses with fewer than 100 employees that will help grow a green economy in the State. Requires the Fund to be used for clean energy and energy efficiency innovations and research and for the development of small businesses and encouragement of entrepreneurship in these areas. Sets out three priority areas. Allows setting a cap on the grant amounts and requiring private business to provide matching funds. Allows DOC to adopt rules for the Fund's administration. Allows the specified amount of funds to be used to administer the Fund.

Effective July 1, 2023.