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

Instead of new GS 116-11.5 (concerning the admissions of military personnel at UNC constituent institutions), moves those provisions into proposed new Part 8A, Military Admissions and Deferment, in Article 1 of GS Chapter 116 and makes the following changes to the proposed provisions. Expands upon the definition of Armed Forces to also include the North Carolina National Guard. Removes the definition of the term eligible applicant and defines applicant as an individual who has applied for admission to a constituent institution of UNC. Specifies that a UNC constituent institution must not deny admission to any applicant solely on the basis of the applicant's indication (was, must not deny admission to any applicant who indicates) that the applicant is serving or intends to serve in the uniformed services. Amends the provisions related to deferment to allow deferment for members and spouses of members of the Reserve Armed Forces for at least two years (was, for members of the reserve Armed Forces only); updates all periods of deferment so that they start running after entry into the reserve Armed Forces or the uniformed services (as applicable), instead of after the member accepts entry. Removes the provision that specified that these provisions do not supersede federal law or require a constituent institution to violate federal law. Makes additional organizational, clarifying, and technical changes. 

Instead of amending GS 116-143.3, moves the provisions concerning charging qualifying veterans in-state tuition and fees, into new GS 116-143.3B. Adds that the individual applying for benefits under this statute has the burden of proving that they are entitled to the benefits. Makes additional clarifying changes. 

Makes conforming changes to the act's titles. 

House committee substitute to the 1st edition makes the following changes.  Removes Part II from the act, which was comprised of: (1) amendments to GS 20-280.5 to require transportation network company (TNC) drivers to obtain consent from an unemancipated minor’s parent or legal guardian before providing service to that minor and (2) new GS 14-401.28 making it an infraction with $250 fine for a TNC driver to provide TNC service (defined) to an unemancipated minor, without first obtaining consent from that minor child's parent or legal guardian. Makes organizational changes. Makes conforming changes, including to the act’s title. Makes technical changes.

Modifies the age requirement under GS 14-190.7 (dissemination of obscene materials to minors) so that a person is now guilty of a Class H felony (was, Class G felony in 1st edition and H under current law) if the person age 18 or older is at least four years older than the minor (currently, GS 14-190.7 requires that the minor be under the age of sixteen).  Makes organizational and conforming changes, including to the statute's title.

Removes the proposed felony class modifications to GS 14-190.8 (dissemination of obscene material to minors under age 13 by persons aged 18 or older) and GS 14-190.15 (dissemination of harmful material to minors). 

Makes clarifying changes to the new offense of habitual indecent exposure under new GS 14-190.9(a6) and upgrades felony classification to Class F felony (was, Class H felony). Makes additional clarifying changes to the statute. Adds new GS 14-190.9(a7) creating a Class E felony for aggravated habitual indecent exposure when the person is at least 18 years old and willfully expose themselves to a minor in a public place and has two or more prior convictions under any combination of the listed offenses (except for habitual indecent exposure) in GS 14-190.9.  Removes designation as reportable conviction under GS 14-208.6, the definitions pertaining to sex offender registration, of final convictions of habitual indecent exposure. Instead, lists both habitual indecent exposure and aggravated habitual indecent exposure as sexually violent offenses under that statute.

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

Amends GS 14-16.6 by expanding upon the statute's scope to also prohibit assault on local elected officers, or assault on another person as retaliation against a local elected officer, in addition to the already included assault on a legislative officer, executive officer, or court officer. Increases the punishment for assault on these classes of individuals from a Class I felony to a Class G felony; from a Class F felony to a Class D felony when the offense includes the use of a deadly weapon; and from a Class E felony to a Class C felony when the person inflicts serious bodily injury to a legislative, executive, court, or local elected officer.

Further amends GS 14-16.7 (felony for threats against executive, legislative, court, or local elected officers) by increasing the penalties for violating the statute from a Class I felony to a Class H felony.

Amends proposed new GS 15A-534.9 so that it also applies to cases where a defendant is charged with violating GS 14-16.6. Requires that the judicial official determining pretrial release for defendants charged with those specified violations be a judge. Removes the requirement to set bond in an amount no less than $50,000; adds the  following requirements instead. Requires the judge to direct a law enforcement officer or district attorney to provide the defendant's criminal history report and to consider that criminal history when setting conditions of release. Prohibits a judge from unreasonably delaying the determination of conditions of pretrial release for the purpose of reviewing the criminal history report. Allows a judge, if they decide that the defendant's immediate release will pose a danger of injury to persons and that executing an appearance bond will not assure that the injury will not occur, to keep the defendant in custody for a reasonable period of time while determining the conditions of pretrial release. Specifies four conditions that a judge may impose on pretrial release, which may be imposed in addition to requiring the defendant to execute a secured appearance bond. Specifies that the provisions of Article 5 (Procedure for Admission and Discharge of Clients) of GS Chapter 122C apply if the defendant is mentally ill and dangerous to himself or others or a substance abuser and dangerous to himself or others. Allows keeping a defendant in custody no more than 48 hours from the time of arrest with the judge making a determination under this statute; if a judge has not acted within those 48 ours, requires the magistrate to take action under this statute. 

Makes conforming changes to the act's long title. 

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

Amends proposed GS 75-41(f) by changing the definition of the term automatic renewal provision to a provision under which a contract is automatically renewed at the end of a definite term for a subsequent term of more than one month unless the consumer gives notice to the person of the consumer's intention to terminate the contract (was, the renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the contract). 

House committee substitute to the 1st edition makes the following changes.  Makes conforming changes, including to the act’s long title.

Expands the flags considered official government flags under new GS 144-7.1 to now include:

• The flag of any state or territory of the United States.
• The flag of a political subdivision of any state or territory of the United States.
• The flag of any Indian tribe or Indian group recognized by State or federal law.

Removes requirement that flying or displaying a flag of a nation recognized by the United States of America only occur during a visit by the nation’s head of state or national delegation. Removes references to the government property being owned or leased by the State or political subdivision thereof. Removes Class 3 misdemeanor penalty for second or subsequent violations of GS 144-7.1. Makes clarifying changes. Makes conforming changes to GS 144-5 (display and handling of flags) so that all official flags (currently, a flag of the United States or the State flag) under new GS 144-7.1 must be handled, displayed, stored, and disposed of properly. Requires local governments to comply with GS 144-7.1 as part of their obligations pertaining to display of official government flags under GS 144-7. Makes conforming and technical changes.

Changes the effective date to October 1, 2025 (was, when act became law). 

Amends GS 160A-601(4), pertaining to the Regional Public Transportation Authority (Authority), to define public transportation to include a buspool. Changes the description of geographic boundaries of the mode of transportation from territorial jurisdiction to service area. Amends GS 160A-610 (powers of the Authority) to specify that buspools are not subject to the limitation that service cannot be provided more than ten miles outside of the territorial jurisdiction of the authority. Makes technical and conforming changes, including referring to the Authority's service area instead of territorial jurisdiction. Effective July 1, 2025.

Part I

Repeals Subsection 8.3(b) of SL 2011-145 (requiring the State Board of Community Colleges [SBCC] to allocate formula funds appropriated to support curriculum instruction and the occupational education component of continuing education in a certain way). Repeals Subsection 10.4(a) of SL 2013-360 (establishing community college funding as based on the number of full-time equivalent (FTE) students).

Requires the SBCC to revise the funding formula for community colleges and allocate funds accordingly, beginning with the 2025-26 fiscal year, according to the following minimum criteria: (1) each community college will continue to receive a base allocation of funds; (2) in addition to the base allocation of funds, funds shall be provided to community colleges based on the number of FTE students enrolled in the following: (i) curriculum, workforce continuing education, and Basic Skills courses and (ii) courses and programming conducted under the Customized Training Program and the Small Business Center Network; and (3) funds allocated according to prong two must be weighted based on the workforce sector of each course, as determined by the SBCC. In making its determinations, the SBCC must consider salary data and labor market demand for the applicable workforce sector. Amends GS 115D-5 (administration of institutions by SBCC) to require the SBCC to review and revise, as necessary, its workforce sector designations for curriculum, workforce continuing education, and Basic Skills courses at community colleges by January 15, 2027, and every two years thereafter. 

Amends GS 115D-31 (state financial support of institutions), when receipts for community college tuition and fees exceed the amount certified in General Fund Codes at the end of a fiscal year, to allow SBCC to allocate those receipts to the community colleges for operating costs according to a formula adopted by the SBCC (currently, requires the SBCC to transfer the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve). Makes conforming changes.

Appropriates $94 million in recurring funds for 2025-26 from the General Fund to the Community Colleges System Office for implementation of these provisions.

Enacts new GS 115D-31.4, establishing the Enrollment Increase Reserve (Reserve), to be administered by the SBCC. Specifies the purpose of the Reserve is to allow the SBCC to provide funds to community colleges to account for enrollment increases beyond budgeted enrollment levels.  Provides for monies in the Reserve to consist of funds appropriated by the General Assembly  in its Current Operations Appropriations Act for a fiscal year. Directs the SBCC to include in its annual enrollment request the appropriation to the Reserve needed to fund enrollment increases in the next fiscal year. Allows the SBCC to allocate monies from the Reserve to a community college with an eligible increase in FTE enrollment according to a formula adopted by the SBCC.  Specifies that an increase in FTE enrollment is either (1) an increase in FTE enrollment of more than 325 students or (2) an increase in FTE enrollment of more than 5% of the budgeted enrollment level in any of the following course categories: curriculum, workforce continuing education, or basic skills. Specifies that monies in the Reserve do not revert but instead remain available for the specified purposes. Makes conforming changes to GS 115D-31 (State financial support for community colleges) to include reference to the Reserve. Appropriates $6 million from the General Fund to the Reserve, for 2025-26, for the purposes describe in this statute.

Part II.

Adds new GS 115C-238.54A (concerning cooperative innovative high schools funding based on county development tier designations) as follows.  Designates three development tier areas mirroring the development tiers areas created by GS 143B-437 (defining a development tier one area as a county whose annual ranking is one of the 40 highest in the State. A development tier two area is a county whose annual ranking is one of the next 40 highest in the State. A development tier three area is a county that is not in a lower-numbered development tier.) Requires the Department of Public Instruction (DPI) to allocate the following amounts from the cooperative innovative high school supplemental allotment to a local school administrative unit located in a development tier one area with a cooperative innovative high school that was approved by the State Board of Education (Board):

• $740,000 in recurring funds for the first cooperative innovative high school approved by the Board.
• $370,000 in recurring funds for each subsequent cooperative innovative high school approved by the Board.
• For a virtual cooperative innovative high school, requires DPI to allocate $200,000 in recurring funds from the cooperative innovative high school supplemental allotment to the local school administrative unit for each fiscal year.
• For the Northeast Regional School of Biotechnology and Agriscience, requires DPI to allocate $310,000 in recurring funds from the regional school supplemental allotment for the school for each fiscal year.

For development tier two areas, requires DPI to allocate the following amounts from the cooperative innovative high school supplemental allotment to a local school administrative unit located in a development area with a cooperative innovative high school that was approved by the Board:

• $590,000 in recurring funds for the first cooperative innovative high school approved by the Board.
• $295,000 in recurring funds for each subsequent cooperative innovative high school approved by the Board.
• For a virtual cooperative innovative high school, requires DPI to allocate $200,000 in recurring funds from the cooperative innovative high school supplemental allotment to the local school administrative unit for each fiscal year.

For development tier three areas, requires DPI to allocate the following amounts from the cooperative innovative high school supplemental allotment to a local school administrative unit located in a development area with a cooperative innovative high school that was approved by the Board:

• $550,000 in recurring funds for the first cooperative innovative high school approved by the Board.
• $275,000 in recurring funds for each subsequent cooperative innovative high school approved by the Board.
• For a virtual cooperative innovative high school, requires DPI to allocate $200,000 in recurring funds from the cooperative innovative high school supplemental allotment to the local school administrative unit for each fiscal year.

Appropriates $40 million from the General Fund to DPI in recurring funds for 2025-26 to implement this section. 

Part III.

Appropriates $30 million in recurring funds from the General Fund to DPI for 2025-26 to create a grant program in collaboration with the Community Colleges System Office for public school units to promote science, technology, engineering, and math (STEM) education. Requires the grants to be used for professional development, classroom technology, lab upgrades, or coding programs for teachers teaching STEM courses. Requires DPI to make grant applications available to public school units before August 1 of each school year and requires applications to be submitted by October 1 of each school year. Requires DPI to determine grant recipients by November 1 of each school year and disburse grants funds within 60 days.

Appropriates $20 million in recurring funds from the General Fund to DPI for 2025-26 to create a grant program in collaboration with the Community Colleges System Office for public school units to expand career and technical education course offerings, dual enrollment opportunities, and certification pathways for students in grades 9-12. Requires DPI to make the grant applications available to public school units before August 1 of each school year and for applications to be submitted by October 1 of each school year. Requires DPI to decide on grant recipients by November 1 of each school year and disburse grants funds within 60 days.

Appropriates $25 million in recurring funds from the General Fund to DPI for 2025-26 to create a grant program in collaboration with the Community Colleges System Office for public school units to create industry-school partnerships to facilitate internships, apprenticeships, and project-based learning opportunities. Requires DPI to make grant applications available to public school units before August 1 of each school year and for applications to be submitted by October 1. Requires the application to include at least one industry partner that the public school unit intends to collaborate with to achieve program goals. Requires DPI to determine grant recipients by November 1 of each school year and disburse grants funds within 60 days.

Part IV.

Appropriates $10 million in recurring funds from the General Fund to DPI for 2025-26 for DPI to collaborate with the Community Colleges System Office to create an awareness campaign in public school units to promote enrollment in community colleges, including informing students and parents of career pathways, internships, apprenticeships, dual enrollment opportunities, and certification pathways available through the Community College System.

Part V.

Effective July 1, 2025.

Enacts new GS 15A-266.5B, providing as follows. Provides that a victim for whom a sexual assault examination kit is submitted to the State Crime Lab, or an approved lab, has a right to know the status of the testing of the examination kit. Requires the State Crime Lab to develop a procedure for victims to exercise this right. Gives these victims a right to be notified when a: (1) determination is made that the examination kit is unable to be tested; (2) decision is made not to test the examination kit for a reason other than that it was unable to be tested; and (3) decision is made to destroy the examination kit. Requires the State Crime lab to develop procedures for these notifications. Makes it the victim's responsibility to ensure that the lab has the victim's required and current contact information. Applies to sexual examination kits submitted before, on, or after October 1, 2025.

Part I.

Amends GS 160D-702 by prohibiting a zoning or development regulation from requiring off-street vehicular parking to: (1) have a minimum width or length, unless the parking space is designed for handicap, parallel, or diagonal parking or (2) require a minimum number of parking spaces per development or structure, regardless of occupancy or use (was, must require a parking space to be larger than nine feet wide by 20 feet long, unless designated for handicap, parallel, or diagonal parking). Effective July 1, 2025.

Part II.

Enacts new GS 143-215.77B, prohibiting a person from purchasing or importing a high PAH (polycyclic aromatic hydrocarbons) sealant product (as defined) for use or application in the construction or maintenance of any parking or vehicular access area. Effective January 1, 2026.

Part III.

Amends GS 143-214.7 by no longer prohibiting stormwater runoff rules and programs from requiring private property owners to install new or increased stormwater controls for redevelopment activities that do not remove or decrease existing stormwater controls. Instead, prohibits local stormwater programs from requiring owners who are redeveloping a property to install new stormwater controls for preexisting built-upon areas if the redevelopment site is a small scale residential development. Allows, when a preexisting development that is not a small scale residential development is redeveloped, for local stormwater programs to implement mandatory stormwater capture ordinances requiring owners undertaking the redevelopment to install new stormwater controls for preexisting built-upon area to capture up to 50% of the final stormwater runoff calculation for the entire property. Also allows applicable local stormwater programs to implement incentive stormwater capture ordinances that waive building, zoning, connection, or other fees; provide additional tax and financial benefits; or institute other incentives for redevelopments that capture additional stormwater over the local stormwater programs' mandatory percentages. Allows applicable local stormwater programs to elect to forego mandating stormwater capture controls and provide incentives to capture up to 100% of the final stormwater runoff calculation for the entire property.

Amends GS 20-7 to require the Division of Motor Vehicles to provide an option for applicants to receive the drivers license handbook and take the written test required for licensure in Khmer and each language that is the primary language of at least 2% of the State's population. Effective January 1, 2026.

Authorizes discounted tuition at UNC constituent institutions under GS 116-143 (requiring State-supported institutions of higher education to charge tuition and fees) for the following enrolled students: (1) qualifying resident military students (defined) receiving certain military tuition or State National Guard tuition assistance, by an amount of up to the difference in the maximum amount of military tuition assistance funds the student receives and the applicable rate of tuition and (2) students who are enrolled in an employer-sponsored financial support program (defined) that is approved by the UNC Board of Governors, by an amount of up to the difference in the maximum amount provided by the employer and the applicable rate of tuition. Requires the UNC Board of Governors to report to the specified NCGA committee and the Fiscal Research Division on the discounted tuition provided in the previous academic year, including the number of students receiving a discount and the annual financial impact on each constituent institution resulting from the discounted tuition. Makes technical, conforming, organizational, and clarifying changes. Applies beginning with the 2025-26 academic year.

Section 1.

Enacts new GS Chapter 170, the Artificial Intelligence and Synthetic Media Act (Act), as follows.   

Article 1: Political Campaigns

Defines eighteen terms, including generative artificial intelligence or generative AI (AI that’s trained on data, interacts with a person using text, audio, or visual communication and generates non-scripted outputs similar to outputs created by a human, with limited or no human oversight); synthetic media (an image, audio recording, or video recording of an individual's appearance, speech, or conduct that has been created or intentionally manipulated with the use of digital technology in a manner to create a realistic but false image, audio, or video). Defines materially deceptive media to mean synthetic audio or visual media that: (1) exhibits a high level of authenticity or convincing appearance that is visually or audibly indistinguishable from reality to a reasonable person; (2) depicts a scenario that did not actually occur, or that has been altered in a significant way from how it actually occurred such that it significantly changes how a reasonable person would understand the original content; (3) is likely or meant to harm reputation or mislead voters; and (4) is created by generative artificial intelligence or with software, machine learning, or any other computer-generated or technological means, including adapting, modifying, manipulating, or altering a realistic depiction.   

Enacts GS 170-2, applicable only to audio or visual communications that: (1) are paid for by a candidate campaign committee, political action committee, political issues committee, political party, or a person using a contribution; (2) are intended to influence voting for or against a candidate or ballot proposition in an election or primary in this state; and (3) contain synthetic media. Requires placement of a clear and conspicuous disclosure message meeting the three described criteria by persons who act as a creator of a synthetic media message that the person knows is a deceptive and fraudulent deepfake of that candidate or of a political party that is on that ballot within 90 days before an election at which a candidate for elected office appears on the ballot. Additionally, requires that the advertisement carries tamper-evident digital content provenance that discloses the content’s author and creator along with any other entity that subsequently edited or altered the content and any use of generative artificial intelligence in generating or modifying the substantive content.

Requires disclosures, as described, in new GS 170-3 by a person that distributes or publishes any political communication that was produced by or includes materially deceptive media and the person knows or should know that it is materially deceptive. Excludes visual media that is satire, parody, bond fide news reporting; an initial dissemination by a platform or service, including, but not limited to, a website, regularly published newspaper, or magazine, where the content disseminated is materially deceptive media provided  by another information content provider when a good-faith effort has been made to establish that the depiction is not materially deceptive media; and an interactive computer service.

Provides remedies for violations of the Article in new GS 170-4, including: (1) injunctive or other equitable relief prohibiting the publication of the deceptive and fraudulent deepfake by a candidate whose appearance, action, or speech is depicted through the use of a deceptive and fraudulent deepfake and (2) reasonable attorneys' fees, costs, and injunctive relief prohibiting the distribution, publication, or broadcasting of any materially deceptive media against such individual or entity who disseminated or published the media without the consent of the candidate depicted and who knew or should have known that it was materially deceptive. Provides for venue, automatic calendar preferences in the filing court, rules pertaining to the availability of preliminary relief, and burdens of proof. Makes violations of the Article a Class 1 misdemeanor, except as follows: (1) for persons who commit the violation within five years of one or more prior convictions under GS 170-4, then designates violation as Class A felony and (2) if the person commits the violation with the intent to cause violence or bodily harm, then designates the violation as a Class A felony.

Exempts the following four classes of persons from the Article under GS 170-5:

1. A radio or television broadcasting station, including a cable or satellite television operator, programmer, or producer that broadcasts a deceptive and fraudulent deepfake and that is part of a bona fide newscast, news interview, or news documentary or on-the-spot coverage of bona fide news events, if the broadcast clearly acknowledges through its content or a disclosure in a manner that can be easily heard or read by the average listener or viewer that there are questions about the authenticity of the materially deceptive audio or visual media and is paid to broadcast a deceptive and fraudulent deepfake and has made a good-faith effort to establish that the depiction is not a deceptive and fraudulent deepfake.
2. An internet website or a regularly published newspaper, magazine, or other periodical of general circulation, including an internet or electronic publication, that routinely carries news and commentary of general interest and that publishes materially deceptive audio or visual media if the publication clearly states that the materially deceptive audio or visual media was generated by artificial intelligence.
3. Satire or parody.
4. An interactive computer service (defined).

Article 2: Pornography and Fabricated Images

Enacts new GS 170-6, concerning generated child pornography (any image that has been created, altered, adapted, or modified by electronic, mechanical, or other computer-generated means to portray a fictitious person, who a reasonable person would regard as being a minor, engaged in sexual conduct), as follows. Makes the following a Class A felony: (1) intentionally creating generated child pornography and (2) to knowingly possess, control, or intentionally view a photograph, a motion picture, a representation, an image, a data file, a computer depiction, or any other presentation which, in whole or in part, the person knows includes generated child pornography. Specifies that the possession, control, or intentional viewing of each such photograph, motion picture, representation, image, data file, computer depiction, or other presentation constitutes a separate offense. Exempts any material possessed, controlled, or intentionally viewed as part of a law enforcement investigation. Provides rules for security of generated child pornography during a criminal proceeding and for copying those materials by the defendant in those proceedings.

Establishes the crime of disclosing fabricated images in GS 170-7 as a Class 1 misdemeanor on the first offense or a Class A felony if the defendant has one or more prior convictions for a violation of this section or the section governing disclosure of intimate images. Defines the offense as when a person knowingly discloses a fabricated intimate image of another person and the person disclosing the image: (1) knows or should have known that the depicted person has not consented to the disclosure and (2) knows or reasonably should know that disclosure would cause harm to the depicted person. Exempts persons under 18 from the crime unless the person (1) intentionally and maliciously disclosed a fabricated intimate image of another person and (2) knows or should have known that the depicted person has not consented to the disclosure. Further exempts disclosures made in the public interest, including reports of unlawful conduct, legal proceedings, law enforcement practices, or medical treatment and images that constitute commentary, criticism, or disclosure protected by the North Carolina Constitution or the United States Constitution. Clarifies that GS 170-7 does not impose liability upon interactive computer services, mobile telecommunications service providers or telecommunications network or broadband providers solely as a result of content provided by another person. Specifies that it is not a defense to prosecution that (1) the perpetrator lacked knowledge of whether the disclosed image had been created or altered by digitization or (2) the depicted person consented to the creation or alteration of the image. Directs that a minor who possesses any image of any other minor which constitutes a fabricated intimate image forfeits any right to continued possession of the image and any court exercising jurisdiction over such image must order forfeiture of the image.

Provides for civil remedies for disclosure of fabricated intimate images in GS 170-8 including a cause of action by a depicted individual who is identifiable and who suffers harm from a person's intentional disclosure or threatened disclosure of a fabricated intimate image without the depicted individual's consent against the disclosing party if they knew or acted with reckless disregard for whether: (1) the depicted individual did not consent to the disclosure and (2) the depicted individual was identifiable. Sets forth rules related to establishing consent of the disclosure of the fabricated image. Prohibits use of disclaimers as a defense. Provides for (1) the greater of actual damages or statutory damages or $10,000; (2) an amount equal to any monetary gain made by the defendant from disclosure of the fabricated intimate image; and (3) punitive damages, as described. Provides for statute of limitations and rules relating to tolling of the statute of limitations for minors.

Exempts disclosures or threats to disclose such images were made in good faith from liability under this Article, as follows: (1) in connection with law enforcement activities, legal proceedings, or medical education or treatment; (2) in the reporting or investigation of unlawful conduct; and (3) in connection with a matter of public interest or concern. Clarifies that the exemption doesn’t apply if the plaintiff proves the disclosure was prohibited by other law or made for the purpose of sexual arousal, sexual gratification, humiliation, degradation, or monetary or commercial gain. Specifies that disclosure of, or a threat to disclose, a fabricated intimate image is not a matter of public concern or public interest solely because the depicted individual is a public figure.

Enacts new GS 170-10, pertaining to AI-generated images in court proceedings, as follows. Directs that such material that includes explicit depictions of minors must remain in the care of either a law enforcement agency or the court in any criminal proceeding. Prohibits copying such materials by the parties so long as they are made reasonably available to one another. Prevents the defendant from viewing such materials unsupervised. Provides for rules relating to disclosure to an expert. Requires a prosecutor to seek an order sealing exhibits of a depiction of a minor engaged in sexually explicit conduct. Provides for the destruction of such materials if the criminal proceeding ends in a conviction; if it ends in acquittal, directs that the materials be returned to the investigating law enforcement agency for either safekeeping or destruction. 

Article 3: Various Regulations

Requires when a person uses generative artificial intelligence to interact with an individual that the business or person disclose that the individual is interacting with Gen AI only if the individual asks whether the interaction involves generative artificial intelligence. Provides, however, that when generative artificial intelligence is used to provide services of a regulated occupation, a prominent mandatory disclosure must be clearly and conspicuously provided. Requires regulated occupation professionals to disclose the use of Gen AI either verbally at the start of an exchange or conversation with a client or customer or through an electronic message before a written exchange. Makes violations a Class A misdemeanor and makes each interaction with a consumer a potential separate violation.

Article 4: Miscellaneous Provisions

Specifies that the Chapter’s remedies are nonexclusive. Allows an aggrieved person with multiple options for seeking relief to pursue other remedies even if they chose an option provided by this Chapter.

Specifies that a defendant is guilty of a criminal offense under this Chapter if the defendant commits the offense with the aid of generative artificial intelligence or intentionally prompts or otherwise causes generative artificial intelligence to commit the offense; it is not a defense to the violation of any statute that generative artificial intelligence made the violative statement, undertook the violative act, or was used in furtherance of the violation.

Sets out provision on how the Chapter’s provisions are to be construed and specifies that it is not to be construed to conflict with or prohibit compliance with specified federal acts or other applicable State or federal law. Includes a severability clause.

Section 2.

Applies to acts or omissions occurring on or after December 1, 2025.

Part I

Enacts Article 11 to GS Chapter 31, named the “North Carolina Electronic Uniform Electronic Wills Act (Act).”  Establishes that an electronic will is a valid will in the State subject to State laws and principles of equity applicable to wills.  Makes conforming change to GS 31-3.2 (kinds of wills) to list electronic wills. Requires an electronic will to be recorded in electronic form and readable as text at the time of signing, be signed by the testator, and be attested to by at least two competent witnesses. Specifies rules for revoking an electronic will. Sets out requirements under which an electronic will may be self-proved. Permits creating certified paper copies of an electronic will by a sworn certification attached to the will or by attaching the affidavits of self-proof at the time of the execution of the will. Specifies that the certified paper copy of an electronic will, but not the electronic will itself, may be probated. Provides for conversion of an attested written will to an electronic will.  Amends GS 28A-2A-8 (pertaining to probate of wills) to establish a procedure for probate of an electronic will. Makes conforming changes to refer to certified paper copies of an electronic will in GS 28A-2B-1 (pertaining to establishment before death the validity of a will or codicil), GS 28A-2B-3 (pertaining to the contents of a petition for will validity), and GS 31-11 (pertaining to depositories in offices of the clerk of superior court). Makes other conforming and technical changes to those statutes. Makes conforming changes to GS 31-3.1.

Requires that uniformity amongst the states must be given consideration in applying and construing the Act. Sets forth the following definitions: electronic, electronic will, record, sign, and state.  Requires the Revisor of Statutes to print as annotations to the statute all relevant portions of the official comments to the Uniform Electronic Wills Act and all explanatory comments of the drafters of this act as the Revisor may deem appropriate.

Effective January 1, 2026, and applies to electronic wills executed on or after that date and to attested written wills converted to electronic wills on or after that date, regardless of the date of execution of the attested written will.

Part II

Amends GS 30-3.3A (valuation of partial and contingent interests in property passing to a surviving spouse) as follows. Requires the terms of a trust to substantially meet the listed requirements in form and content (currently, just requires the trust terms to meet the listed requirements). Expands the types of trustees that control the trust during the surviving spouse’s lifetime. Allows the trust to authorize or require the trustee to also take assets (currently, just income and other means of support) into account. Specifies required language that the trust must contain pertaining to distribution of the income and principal. Makes clarifying and technical changes.

Amends GS 30-3.4 (procedure for determining the elective share), as follows. Removes the requirement that surviving spouse must mail or deliver a copy of the petition to the estate as a requirement for asserting a claim for elective share. Requires petition to be verified.  Directs that an elective share proceeding is an estate proceeding to be conducted in line with Article 2 of GS Chapter 28A, except as modified or supplemented as described.

Applies to claims for elective share filed on or after January 1, 2026.

Part III

Amends GS 36C-6-604 (limitation on action contesting validity of revocable trust, distribution of trust property), as follows. Makes technical changes. Directs trustee to not distribute trust property to any beneficiary in contravention of the rights of any person who may be affected by the outcome of a pending or possible judicial proceeding if, at the time the distribution is made: (1) the trustee knows of a pending judicial proceeding pertaining to the validity of the trust or contesting he identity of beneficiaries, or (2) a potential contestant has notified the trustee in writing of a possible judicial proceeding to contest the validity of terms of the trust or to contest the identity of the beneficiaries eligible to receive distribution therefrom, and a judicial proceeding is commenced within 60 days after the contestant sent the notification. Expands those matters that prevent the trustee from distributing trust property to judicial proceedings or contestants challenging the identity of the beneficiaries eligible to receive distributions from the trust. Specifies that the trustee’s failure to comply with the above constitutes breach of trust. Provides for distribution of assets to beneficiaries upon motion, with notice to the interested parties upon court order. Expands the conditions upon which a beneficiary must return trust property to include when their interest in a trust has been determined to be invalid (currently, just when the trust has been determined to be invalid).  Specifies that if the beneficiary refuses to return the distribution after being ordered by the court, the beneficiary is liable for all costs incurred for recovery of the distribution, including attorneys' fees. Applies to settlors dying on or after January 1, 2026. 

Part IV

Amends GS 30-15 (spousal allowances) as follows. Creates an exception for when the spousal allowance takes priority over a child’s allowance that occurs if a surviving spouse entitled to an allowance fails to file a petition for an allowance within six months after the date of death of the decedent and an eligible person files a petition for a child's allowance before the spouse files a petition for an allowance. Specifies that a proceeding for a spouse’s allowance will be an estate proceeding governed by Article 2 of GS Chapter 28A. Makes conforming changes.

Amends GS 30-17 (child’s allowance) by amending the order of priority for the person entitled to file a petition on behalf of the child for a child's allowance, so that first priority is given to the child, if the child is at least 18 years old or an emancipated minor at the time the petition is filed. Specifies that a proceeding for a child’s allowance will be an estate proceeding governed by Article 2 of GS Chapter 28A. Removes the clerk’s discretion under GS 30-20(c) to on its own motion, determine that a hearing is necessary to determine whether a year’s allowance should be awarded to the children of an estate under GS 30-20 (procedure for assignment). 

Removes references to “GS 30-20(c)” and replaces those references with references to “contested case proceedings commenced by the petitioner or by order of the clerk joining respondents to the proceeding” in standing provisions in GS 30-23.1 (contested case proceedings regarding allowance).  Makes conforming and clarifying changes.

Amends GS 28A-25-6 (payment to clerk of money owed decedent) as follows. Provides in (f) that if no administrator has been appointed, the clerk of superior court must upon motion of the clerk or application of an interested party, disburse the money received under this statute for the following purposes and in the following order: (1) to pay the surviving spouse's year's allowance and children's year's allowance assigned in accordance with law, except that if (1) it has been greater than six months since the date of death of the decedent and (2) there has been no petition filed and assignment of a spouse's or child's year's allowance, the clerk may disburse the money in accordance with the other provisions of (f) (which requires all other claims to be disbursed according to the order set out in GS 28A-19-6). Clarifies that after the death of a the decedent (currently, spouse who died intestate) and after the disbursements have been made, the balance in the clerk's hands belonging to the estate of the decedent will be paid to the surviving spouse, and if there is no surviving spouse, the clerk will pay it to the heirs or beneficiaries (currently, just heirs) in proportion to their respective interests. Makes technical changes. Applies to petitions filed on or after January 1, 2026.