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

Section 3.1

Modifies the eligibility criteria for the Crop Loss Program so that the “eligibility date” for losses related to planted, but not harvested, commodities and aquaculture commodities refers to the date of the disaster set forth in the Secretarial declaration for the county in which the agricultural or aquaculture commodities are located and for which verifiable losses, damage, or degradation are claimed.

Extends the following dates and dates under the process to document the loss to be established by the Department of Agriculture and Consumer Services (Department):  

• Now requires submission to the Department by no later than 45 days (was, 30 days) after the Crop Loss Program is effective.
• Now allows for an additional 45-day extension (was, 30-day extension) for verification of nursery crops, fruit-bearing trees and bushes, and specialty crops where the survival level is not immediately known upon written request by the farmer that is received no later than 45 days (was, 30 days) after the Crop Loss Program becomes effective and with approval by the Department. 

Revises the provisions pertaining to required refunds of awards under the Agricultural Crop Loss Program so that the refund provisions are also triggered if a person received financial assistance for which they were ineligible (was, only that the amount of the financial assistance received is based on inaccurate information). States that should a triggering event occur, the recipient forfeits the assistance awarded and that it bears interest at the statutory rate set forth in GS 105-241.21 until repaid.  Now requires for forfeited financial assistance that is not repaid to be recouped through a civil action by the Attorney General at the request of the Commissioner of Agriculture (was, collection by Department of Revenue).

Adds specialty crop to the definition of agricultural commodity.

Enacts new GS 144-10 prohibiting State institutions or political subdivision of the State from using public funds to purchase US or North Carolina flags unless the flag has been entirely manufactured in the US using articles, materials, or supplies that have been grown or entirely produced or manufactured in the United States. Applies to purchases made on or after October 1, 2025.

Requires the Department of Health and Human Services, Division of Health Benefits (Division), to amend the Medicaid State Plan to set and adjust rates for all services provided by licensed ambulatory surgical centers so that these services are reimbursed at a rate of at least 95% of the Medicare Ambulatory Surgical Centers fee schedule in effect as of January 1 of each year, as published by the Centers for Medicare and Medicaid Services (CMS). Specifies that the initial rate adjustments are effective on the effective date approved by CMS for the State Plan amendment.

Appropriates $10,476,000 from the General Fund to the Division in recurring funds for each year of the 2025-27 biennium to implement the changes required by the act. Specifies that the funds provide a State match for the $19,135,000 in recurring federal funds during this time.

Effective July 1, 2025. 

Identical to S 155, filed 2/25/25.

Reorganizes GS Chapter 90B into Articles and moves specified existing statutes into Article 1. Retitles the Chapter as Social Worker Certification and Licensure.

Adds new Article 2, Social Work Licensure Compact (Compact), providing as follows. Set out the purpose of the Compact and Compact objectives. Sets out and defines terms as they are used in the Article.

Sets out criteria that must be met by a state to become a member of the Compact and for a member state to maintain membership. Requires member states to designate the categories of social work licensure eligible for issuance of a multistate license for applicants in that member state. Provides that to the extent a member state does not meet the requirements for participation in the Compact in any particular category of social work licensure, that member state may choose to issue a multistate license to applicants that otherwise meet the requirements for issuance of a multistate license in those categories of licensure.

Requires applicants to meet the following to be eligible for a multistate license: (1) hold or be eligible for an active, unencumbered license in the home state; (2) pay any applicable fees, including any state fee, for the multistate license; (3) submit, in connection with an application for a multistate license, fingerprints or other biometric data for the purpose of obtaining criminal history record information; (4) notify the home state of any adverse action, encumbrance, or restriction on any professional license taken by any member state or non-member state within 30 days from the date the action is taken; (5) meet any continuing competence requirements established by the home state; and (6) abide by the laws, regulations, and applicable standards in the member state where the client is located at the time care is rendered. Requires applicants for a clinical-category multistate license to meet specified requirements for fulfilling a competency requirement, attain at least a master's degree in social work from a program meeting specified qualifications, and fulfill a practice requirement by completion of one of the listed types of practice. Requires applicants for a master's category multistate license to meet specified requirements for fulfilling a competency requirement, and attaining at least a master's degree in social work from a program meeting specified qualifications. Requires applicants for a bachelor's category multistate license to meet specified requirements for fulfilling a competency requirement, and attaining at least a bachelor's degree in social work from a program meeting specified qualifications. Sets out provisions governing renewal of a license. Makes services provided in a remote state subject to that member state's regulatory authority. Allows a remote state to remove a regulated social worker's multistate authorization to practice in the remote state or take other necessary actions to protect the health and safety of its citizens. Requires that if a multistate license is encumbered, the regulated social worker's multistate authorization to practice must be deactivated in all remote states until the license is no longer encumbered. Provides that if a multistate authorization to practice is encumbered in a remote state, then the multistate authorization to practice may be deactivated in that state until the multistate authorization to practice is no longer encumbered.

Sets out the steps a home state must take to issue a multistate license. Requires that a multistate license issued by a home state to a resident in that State be recognized by all Compact member states as authorizing social work practice under a multistate authorization to practice corresponding to each category of licensure regulated in the member state.

Sets out limitations on the Compact and specifies the ways in which the Compact does not interfere with a member state's powers.

Limits licensees to holding a multistate license in only one member state at a time. Sets out provisions governing how to change home states. Requires active military members and their spouses to designate a home state and allows retaining that home state during active duty.

Sets out the process under which a remote state or home state can take an adverse action against a licensee and allows for joint investigations.

Establishes a Social Work Licensure Compact Commission (Commission) with 22 specified duties, including to meet and take such actions consistent with the provisions of this Compact and the bylaws; initiate legal proceedings or actions in the name of the Commission, provided that the standing of any state occupational therapy licensing board to sue or be sued under applicable law shall not be affected; purchase and maintain insurance and bonds; and assess and collect fees. Sets out membership requirements, with each member state limited to one delegate; provides for removal of members and filling of vacancies. Requires the Commission to meet at least once a year and allows meeting electronically. Establishes an 11-member Executive Committee with the power to act on behalf of the Commission. Sets out the Committee's powers and duties, memberships, and meeting requirements. Requires Commission meetings to be open to the public, except for listed matters that may be discussed in a closed meeting. Sets out notice requirements for meeting, including special meetings for emergency business. Allows the Commission to levy an annual assessment on member states and impose fees on other licensees of member states to whom it grants a multistate license. Sets out additional regulations governing these fees. Provides for immunity from liability for members, officers, executive director, employees, and representatives of the Commission, and provides for Commission defense against such lawsuits.

Requires the Commission to provide for the development, maintenance, operation, and use of a coordinated database and reporting system that includes licensure, adverse action, and the presence of current significant investigative information on all licensed individuals in member states. Requires each applicant for a multistate license to be given a unique identifier. Requires member states to submit a uniform data set to the data system on all individuals to whom this Compact is applicable, including specified information. Sets out limitation on the use of information and records. Prohibits sharing data with the public unless the contributing state gives permission.

Requires the Commission to promulgate reasonable rules in order to achieve the purposes of the Compact effectively and efficiently. Sets out provisions governing the adoption of rules by the Commission.

Requires the executive and judicial branches of state government in each member state to enforce the Compact and take all actions necessary and appropriate to implement the Compact. Sets out provisions governing proper venue, service of process, enforcement of the Compact by the Commission, terminating membership of a defaulting state from the Compact, and dispute resolution.

Makes the Compact effective on the date on which the Compact statute is enacted into law in the seventh member state. Sets out provisions for a member state to withdraw from the Compact. Sets out provisions governing the construction of the compact and includes a severability clause. Provides that any laws, statutes, regulations, or other legal requirements in a member state in conflict with the Compact are superseded to the extent of the conflict.

Effective when at least seven states have enacted the Compact. Requires the NC Social Work Certification and Licensure Board to report to the Revisor of Statues when the Compact has been enacted by seven member states.

Appropriates $13,215 from the General Fund to the Office of State Budget and Management for 2025-26 to provide a directed grant to the Town of Milton to be used as the title indicates. 

Effective July 1, 2025.

Adds an additional offense to GS 14-122, making it unlawful for a person to present for filing or recording in a public record or a private record generally available to the public a deed or transfer of real property of an owner, knowing or having reason to know that the deed or conveyance is false or contains a materially false, fictitious, or fraudulent statement or representation.  Makes it a Class C felony if the value of property is $100,000 or more and a Class G felony if the value of property is less than $100,000.  Makes conforming changes to the statute's title.

Adds new GS 14-118.6A, pertaining to fraudulent deeds or conveyances, as follows. Allows the actual owner of an interest in real property subject to a recorded false, fictitious, or fraudulent deed or conveyance to file a civil action and proceed pro se, without the assistance of legal counsel. Provides for jurisdiction, the availability of emergency relief upon an ex parte hearing and a sworn statement and evidence supporting the allegation of the recording as false or fraudulent, and an adversarial hearing after the issuance of a temporary ex parte order. Authorizes the court, in issuing a permanent order under the statute, to grant possession and order ejectment, award attorneys’ fees and costs, and stay any proceedings involving the subject real property in which the property owner is not a party. Provides for a process for register of deeds to record and cross reference any order under the section declaring a deed false and void as a matter of law.  Provides that the presentation of an instrument for recording with a register of deeds that purports to be a deed or conveyance that is determined to be materially false, fictitious, or fraudulent is an unfair trade practice.  Makes it a Class G felony for a person to initiate an action under the section knowing that the subject deed or conveyance is not false, fictitious, or fraudulent.

Amends GS 161-31 to now require all county board of commissions to, by resolution, require the register of deeds not to accept any deed transferring real property for registration unless the county tax collector has certified that no delinquent ad valorem county taxes, ad valorem municipal taxes, or other taxes with which the collector is charged are a lien on the property described in the deed (previously, only certain listed county commissioners had discretion to require this).  Makes conforming changes.

Applies to documents and instruments submitted for recording on or after December 1, 2025.

Part I.

Amends the purposes set forth in GS 7B-100 that are applicable to Subchapter I of GS Chapter 7B, governing abuse, neglect, dependency and termination of parental rights proceedings. Now states as a purpose of the Subchapter that when it is not in the best interest of the juvenile to be returned home, the juvenile will be placed in a safe, permanent home within one year from the date of the initial order removing custody (was, within a reasonable amount of time).

Expands the definitions of abused juveniles and neglected juvenile provided in GS 7B-101. Now includes any juvenile less than 18 who is found to be a victim of unlawful sale, surrender, or purchase of a minor under GS 14-43.14 (previously, included in the list of offenses that if committed by a parent, guardian, custodian, or caretaker of a juvenile under 18, deemed the juvenile an abused juvenile). Changes the statutory violations listed for which a parent, guardian, custodian, or caretaker of a juvenile under 18, the commission of which deems the juvenile abused pursuant to the definition of an abused juvenile. Now includes sexually violent offenses as defined in GS 14-208.6(5), applicable to the Sex Offender and Public Protection Registration Programs (replacing individually listed GS Chapter 14 sexual offenses previously listed). Now deems a neglected juvenile any juvenile less than 18 whose parent, guardian, custodian, or caretaker uses an illegal substance, abuses alcohol, or illegally uses a controlled substance and is unable to care for and provide a safe and appropriate home for the juvenile, or (2) uses an illegal substance, abuses alcohol, or illegally uses a controlled substance while a child is in utero.

Expands the available grounds for obtaining nonsecure custody of a juvenile alleged to be abused, neglected or dependent which are set forth in GS 7B-503. Now allows for a court to order nonsecure custody if the juvenile is an infant born exposed to alcohol, illegal substances, or illegally used controlled substances. However, the parent's use cannot be the sole ground for a nonsecure custody order if the parent is enrolled in and meeting or exceeding benchmarks of a substance abuse treatment program recommended by a medical provider or an LME/MCO. Adds a new requirement that the court must consider the developmental and attachment needs of the juvenile when making nonsecure custody determinations.

Amends GS 7B-505, adding the juvenile's next of kin to the relatives and other persons with custody of any siblings of the juvenile which the department of social services (dss) must identify and notify within 30 days of the initial nonsecure custody order. Adds a new requirement that the court must consider the developmental and attachment needs of the juvenile in determining whether placement with an identified relative while in nonsecure custody would be contrary to the best interest of the juvenile.

Modifies the aggravating circumstances which require a court to direct, in the initial dispositional order, that dss is not required to make reasonable efforts for reunification of the juvenile under GS 7B-901(c). Regarding a court's determination of a parent's commission or encouragement of the commission of, or allowance of the continuation of, chronic or toxic exposure to alcohol, illegal substances, or controlled substances in violation of the law, now specifically states that in utero exposure to alcohol, illegal substance, or controlled substances in violation of the law is included. Directs the court to consider the parent's enrollment in and meeting or exceeding the benchmarks of a substance abuse treatment program recommended by medical provider or LME/MCO.

Amends GS 7B-903, which lists dispositional alternatives the court may order following the adjudication of a juvenile as abused, neglected or dependent, to require the court to consider the developmental and attachment needs of the juvenile when determining whether placement with a relative would be contrary to the best interest of the juvenile. Limited to the provisions of GS 7B-903 only, deems a foster parent to be nonrelative kin of the juvenile once the juvenile has resided in the home of the foster parent for a continuous period of at least nine months, so long as the juvenile is not a member of a State-recognized tribe.

Amends GS 7B-903.1(c) regarding required observation visits with the juvenile and the parent, guardian, custodian, or caretaker from whom the juvenile was removed, to specify that dss can recommend unsupervised visits or return of physical custody of the juvenile, whichever occurs first.

Regarding whether hearings which follow the initial dispositional hearing are designated review hearings or permanency planning hearings, amends GS 7B-906.1 to designate hearings for a juvenile who was residing with a caretaker at the time the abuse, neglect or dependency petition was filed as a permanency planning hearing (previously, review hearings were held for a juvenile that was not removed from a caretaker). Amends the required relevant findings the court must make at each review and permanency planning hearing under GS 7B-906.1 as follows. Removes the exception for hearings noticed and heard as permanency planning hearings from the requirement that the court schedule a permanency planning hearing within 30 days of a review hearing in which a juvenile is removed from the custody of a parent, guardian, or custodian. If relevant, requires the court to make written findings regarding whether reunification would be unsuccessful or inconsistent with the juvenile's health or safety and need for a safe, permanency home within one year from the date the initial order removing custody was entered (was, within a reasonable period of time). Adds that this finding must also address whether the parent has engaged in any of the factors described in GS 7B-901(c) which require that the court direct that reunification efforts are not required at initial disposition. Limits the court's authority to maintain or order a different placement, appoint a guardian of the person, or order any dispositional alternative under subsection (i) to permanency planning hearings. Specifies that visitation requirements under GS 7B-903.1 apply when the court orders custody or placement to dss, in addition to instances in which the court continues custody or placement with dss, under subsection (l). Limits the authority of the court to waive future hearings, subject to making five required findings, to permanency planning hearings only. Eliminates "cogent" from the evidentiary standard required for the court's findings to waive future permanency planning hearings, hold the hearings less often than required, or require written reports in lieu of hearings. Changes the five required findings for waiver under subsection (n) as follows. As an alternative to a finding that the juvenile has resided in the placement for at least one year, allowing for the parties to agree and the court to enter a consent order (was, that the juvenile has resided in the placement for at least six consecutive months and the court enters a consent order). Requires that all parties are aware that the matter can be brought before the court for review at any time by filing a permanency planning or modification motion (was, a motion for review) or on the court's own motion. Makes technical changes.

Modifies the criteria for standing to petition or motion to terminate the parental rights (TPR) of a parent under GS 7B-1103(a) to include any person with whom the juvenile has resided for a continuous period of 15 months (was, 18 months) or more next preceding the filing.

Amends GS 7B-1109 to specify that the evidentiary standard to adjudicate a TPR ground is clear and convincing evidence (was, clear, cogent and convincing).

Amends the grounds upon which a parent's rights may be terminated under GS 7B-1111(a) to include that the parent has willfully left the juvenile in foster care or placement outside of the home for more than nine months (was, 12 months) without showing reasonable progress under the circumstances in correcting the conditions which led to the juvenile's removal.

Effective October 1, 2025, and applies to TPR petitions and motions filed on or after that date.

Part II. 

Immediately stays the Regional Abuse and Medical Specialist (RAMS) program staffed within the NC Child Medical Evaluation Program (NC CMEP), pending compliance with three objectives, which include establishing program rules pursuant to GS Chapter 150A, amendment and federal approval of any State plan, and federal approval of RAMS program rules. Requires modification of any contracts or memorandums of understanding between the Department of Health and Human Services (DHHS) and the UNC School of Medicine to comply with the act.

Directs the Social Services Commission (Commission) to adopt rules to implement the RAMS program and lists 10 required components, including limiting the RAMS team focus to screened-in cases meeting specified criteria, requiring the county dss director to decide issues where there is a disagreement between the local social services worker and the RAMS team, and establishing the frequency in which the RAMS team member and the social worker supervisor must meet during the family or investigative assessment period. Within 30 days of the completion of the rulemaking process, requires the DHHS Secretary (Secretary) or their designee to submit the proposed rules and any proposed changes to the State plan to the US Secretary of Health and Human Services (US Secretary) or their designee. Requires the Commission to initiate the rulemaking process within 30 days of the date the act becomes effective. Prohibits any rule, statute or plan amendment which the US Secretary determines would negatively impact federal funding to the State from becoming effective. Requires the Secretary or their designee to notify the Commission and the Rules Review Commission of the US Secretary's determinations within five days of receipt.

Directs the Division to annually report to the specified NCGA committees and chairs beginning September 1, 2025, on the hiring, training, and oversight of the RAMS program and the rulemaking process. Requires all reports provided to the federal government relevant to the RAMS program to be simultaneously provided to the specified NCGA committees and chairs.

Details the effective dates for rules adopted pursuant to the act, based on whether approval of the US Secretary is required or State plan amendments are necessary because of the proposed rules. Requires the Secretary to report to the Revisor applicable effective dates once known.

Part III.

Enacts GS 143B-138.1A, establishing a private cause of action against DHHS for any individual who experiences a loss or harm due to the Secretary or their designee taking any action or causing any action to be taken against an individual through a program created, administered, supervised, or funded by DHHS that is operating without going through the required rulemaking process. Provides for the prevailing individual to recover litigation costs. Applies to actions taken by DHHS on or after October 1, 2025.

Part IV. 

Effective March 1, 2026, amends GS 108A-9, GS 108A-15.8, and GS 153A-77 to require members of county boards of social services, regional boards of social services, and consolidated human services board members to attend education and training sessions provided for new board members during their first year of service. Directs the Division of Social Services (applicable to county and regional boards) and the Divisions of Social Services, Public Health, and Mental Health, Developmental Disabilities, and Substance Use Services (applicable to consolidated boards) to collaborate with specified stakeholders to create formal education and training sessions required of new board members, including a segment on the potential liabilities of the applicable board, with sessions available statewide by March 1, 2026. Requires all board members to have participated in the sessions by March 1, 2028.

Part V.

Directs the Administrative Office of the Courts (AOC) to conduct a feasibility and cost study of a proposed child support tribunal in which dedicate court officers would hear child support matter using quasi-judicial procedures. Details required considerations of the study. Requires AOC to submit its findings and recommendations to the specified NCGA committee by May 1, 2026.

Part VI.

Enacts GS 108A-15.16 to require county and regional departments of social services and consolidated human services agencies to expeditiously work to resolve conflicts of interest pursuant to applicable law and DHHS policies and procedures. Describes three instances which qualify as a conflict of interest, including when the department or agency cannot manage adverse interests of two individuals to whom the office owes a duty to serve. Requires DHHS policies and procedures to address financial and practice responsibilities associated with conflicts of interest. Provides for offices to contact DHHS when a conflict arises and grants DHHS final authority regarding conflicts of interest assignments when a dispute arises, with regional and central offices having initial authority as specified.

Directs the Social Services Commission to report to the specified NCGA committee within 30 days of adopting the rules addressing conflicts of interest. Directs the Social Services Commission to adopt rules regarding conflicts of interest management that address described required components within 30 days of the date the act becomes law.

Part VII.

Directs the Joint Legislative Oversight Committee (Committee) on Health and Human Services to study, evaluate, and make recommendations on five described proposals regarding foster children, foster families, and kinship providers. Further directs the committee to: (1) work with DHHS and county boards to create uniform standards regarding child welfare matters; (2) make recommendations from information updated provided by DHHS on the Child Welfare and Family Well-being Transformation Team; (3) work with the Supreme Court Chief Justice regarding improvements to child welfare cases, obtain updates from the Task Force of Adverse Childhood Experience Informed Courts, and make recommendations based on the information provided; (4) work with DHHS regarding the working group working to identify innovative Medicaid services to fill gaps in care for foster children and the development of the trauma-informed standardized assessment for foster cases, and make recommendations based thereon; and (5) any other issues the committee deems appropriate for the improvement of the child welfare system. Directs the Committee to report to the 2026 NCGA prior to its convening.                                             

Modifies GS 115C-111.05, setting forth funding for children with disabilities by the State Board of Education (Board), as follows. Exempts public schools for the deaf and blind established under Article 9C of GS Chapter 115C from the statute’s requirements. Makes conforming changes. Now requires that those schools receiving funds receive funds that are the lesser of (1) all children who are identified as children with disabilities or (2) 13% of the sum of the allocated average daily membership in the public school units co-located within the boundaries of a local school administrative unit for the current school year, plus the number of students that received scholarship grants pursuant to Part 2A of Article 39 of GS Chapter 115C (private and proprietary school grants) for the most recent school year that data is available and reside within the boundaries of the local school administrative unit. (Currently, the lesser of prong (1) or 13% of its allotted average daily membership in the local school administrative unit for the current school year). Requires the State Education Assistance Authority (Authority) to provide the Department of Public Instruction (DPI) by March 15 annually the number of students provided such scholarship grants that resided within the boundaries of each local school administrative unit during the most recent school year.

Appropriates $25 million from the General Fund to DPI in recurring funds for the 2025-26 school year to be allocated to public school units for children with disabilities funding.

Effective July 1, 2025, and applies beginning with the funding allocations for the 2025-26 fiscal year.