Enacts GS 20-137.4B, making it an infraction for a person to operate a vehicle on a public street, highway, or public vehicular area while (1) holding an animal or allowing an animal to sit in the operator's lap or (2) interacting with a child or an animal in a manner that impairs or restricts the proper operation of the motor vehicle and results in operation that is careless, reckless, or heedless under the existing conditions. Exempts drivers in fully autonomous vehicles. Provides for $100 fine and court costs for violations.  Prevents insurance surcharges from being assessed as a result of a violation.  Applies to offenses committed on or after December 1, 2025. Provides for six-month period after the act's effective date where only warning tickets are issued for violations. 

Adds new Part 3A, North Carolina Nursing Fellows Program, under Article 23 of GS Chapter 116, as follows. Defines twelve terms, including qualifying nurse (an eligible nurse who holds a B.S. in Nursing from Winston-Salem State University and who is employed as a nurse in the state); qualified nursing instructor (an eligible nurse who holds a B.S. in Nursing and an M.S. in Nursing Education from Winston-Salem State University and is employed as an instructor in a qualified nursing program in the state); and qualifying nursing program (a nursing program at a community college, university, or private postsecondary institution that prepares students to earn a degree in nursing and become a licensed practical nurse in the state).  

Establishes the North Carolina Nursing Fellows Program (Fellows Program) in GS 116-209.65 with the purpose of recruiting, preparing, and supporting students enrolled in an eligible nursing program at Winston-Salem State University (WSSU) for preparation as highly effective nurses and instructors by providing forgivable loans to those nursing students interested in preparing to become nurses in the state or instructors in qualifying nursing programs. Provides for administration of the Fellows Program by the State Educational Assistance Authority (Authority) in cooperation with the Dean of the School of Health Sciences at WSSU, with the Dean to determine selection criteria (including those set forth in the act) and engage in recruitment.  Provides for staff and office space by WSSU.

Establishes the North Carolina Nursing Fellows Program Trust Fund (Fund) to provide the financial assistance to be administered by the Authority and the Dean. Allows money in the Trust Fund to be used only for forgivable loans under the Fellows Program, administrative costs of the Fellows Program, mentoring and coaching support for loan recipients, and extracurricular enhancement activities as described. Sets out provisions governing the administration of the loans and establishes reporting requirements, with annual reports due to the specified NCGA committee starting January 1, 2027. Establishes the amount of the forgivable loans as $5,000 per semester/$2,500 per summer session with the number of eligible semesters dependent upon whether the recipient is either a student pursuing a career as a qualifying nurse or a student pursuing a career as a qualifying nurse instructor. Lists permitted uses of loan funds, including tuition, fees, and books. Requires an annual report, beginning January 1, 2027, to the specified NCGA committee on the Trust Fund and related information on the Fellows Program.   

Sets out the terms of the forgivable loans including interest caps in GS 116-209.66. Provides rules for forgiveness as follows. For every year a qualifying nurse remains a qualifying nurse or a qualifying nurse instructor, directs the Authority to forgive one-third of the total loan amount received over the course of enrollment in the applicable degree program and any interest accrued on that amount.  Directs the Authority to also forgive the loan if it finds that it is impossible for the recipient to work for up to three years, within ten years after completion of the Bachelor of Science in Nursing degree program for persons pursuing forgiveness as qualifying nurses or of the Master of Science in Nursing Education degree program for persons pursuing forgiveness as qualifying nurse instructors, because of the death or permanent disability of the recipient. Requires completion of indebtedness within 10 years after completion of the latest applicable degree program supported by the forgivable loan if the recipient pays in cash. Allows for extension of the repayment program under extenuating circumstances for no more than a total of 12 years.

Makes conforming changes to GS 116-204.

Requires applications to be available by December 31, 2025, and for recipients to be selected and initial awards made by April 1, 2026.

Appropriates $1.4 million in recurring funds for 2025-26 from the General Fund to the Fund to establish the Fellows Program.

Effective July 1, 2025, and applies beginning with applications for enrollment in the Fellows Program in the 2026-27 academic year.

Appropriates $100,000 from the General Fund to the UNC Board of Governors in recurring funds for 2025-26 to be allocated to WSSU to provide mentoring, coaching, and other curriculum-support services for students enrolled in a nursing degree program at WSSU. Effective July 1, 2025.

 

Enacts new GS 95-25.12A requiring an employer (any person employing another under any appointment or contract of hire, including the State and the political subdivisions of the State) who provides compensated or uncompensated job-protected sick leave for employees to allow an employee to use their accrued and available sick leave to attend to the care of a family member (as defined) for no more than five consecutive days in any calendar year. Defines sick leave. Makes all conditions and restrictions the employer placed on the use of sick leave applicable to the use of sick leave to attend to the care of a family members. Specifies that this does not extend the maximum period of leave that an employee is entitled to under the federal Family and Medical Leave Act of 1993. Specifies that this does not apply to (1) any benefit provide under an employee welfare benefit plan subject to the federal Employee Retirement Income Security Act of 1974 or (2) any insurance benefit, workers' compensation benefit, unemployment compensation disability benefit, or other benefit not payable from the employer's general assets.

Amends GS 95-241 to prohibit discrimination or taking retaliatory action against an employee who files a claim or complaint or takes any other action with respect to new GS 95-25.12A.

Effective October 1, 2025.

Names the act Bentley’s Law. Enacts GS 20-141.4A, concerning restitution for felony death by vehicle.  If a person is convicted of felony death by vehicle, aggravated felony death by vehicle, or is a repeat felony death by vehicle offender under GS 20-141.4 and the deceased victim was the parent of a minor child (defined), then requires the sentencing court to order the defendant to pay restitution in the form of child support to each of the victim's children until each child reaches 18 years of age and has graduated from high school or the class of which the child is a member when the child reached 18 years of age has graduated from high school. Provides for factors for court to consider in imposing child support. Requires defendant to submit payment to the clerk of court as trustee to be remitted to the child’s surviving parent or guardian with the time provided. Tolls payment obligation when a defendant is incarcerated and unable to pay the child support until up to one year after release from incarceration. Provides for payment of arrearages in such cases. Provides for enforcement of the order by the child’s surviving parent or guardian. Provides for offset by any damages awarded in a judgment in a civil suit by the surviving parent or guardian against the defendant, regardless of when such suit is filed. Applies to offenses committed on or after December 1, 2025.

Amends GS 150B-21.3 (pertaining to effective date of rules under the APA), as follows. Requires that any permanent rule that would have an aggregate economic impact on all persons affected of at least $1 million as calculated under law in a 12-month period (an Economic Rule) can only become effective if the NCGA ratifies a bill approving the rule with the rule becoming effective in accordance with the described timetable. Allows for any member of either chamber to introduce a bill during any regular or special session to approve a rule upon the earlier of either the day following a recommendation on the rule by the Joint Administrative Procedure Oversight Committee (the specified NCGA committee) or sixty days after the specified NCGA committee receives the rule for review but has not made a recommendation on the rule. Exempts an Economic Rule from the objection period. Provides for notice in GS 150B-21.11 (procedure when Rules Review Commission [Commission] approves permanent rule) to the chairs of the specified NCGA committee by the Commission when it approves an Economic Rule.

Expands what an agency must consider in determining the substantial economic impact of a rule under GS 150B-21.4 (fiscal and regulatory impact analysis under rules) to include an estimate of the combined cost of the baseline conditions and the proposed rule, including direct costs as well as opportunity costs, as described.

Makes organizational and conforming changes, including to GS 120-70.101 (purpose and powers of the specified NCGA committee).

Applies to rules adopted on or after the act becomes law. 

Section 1

Requires the Legislative Research Commission (LRC) to study the availability of affordable housing in this state, including examining the 11 specified issues, including: (1) assess the availability of publicly owned land that could be developed into affordable residential housing; (2) examine the challenges facing those in need of affordable housing, including financial, social, and logistical challenges; (3) assess the ability of local governments to leverage existing laws and resources, including partnering with nonprofit and for-profit entities, to increase the availability of affordable housing; (4) assess the feasibility and cost-savings from partnerships between public utilities, private businesses, and local governments in replacing aging housing in existing programs with newer modular and mobile home units; and (5) examine any costs that may be associated with government rules, regulations, and ordinances. Requires the LRC to report its findings and proposed legislation to the 2026 Regular Session of the 2025 General Assembly.

Section 2

Amends the State Fair Housing Act, GS Chapter 41A, as follows. Amends the unlawful discriminatory housing practices set out in GS 41A-4 to also prohibit discrimination based on source of income. Defines source of income as any lawful source of money paid directly, indirectly, or on behalf of a renter or buyer of real property, including: (1) income derived from any lawful profession or occupation and (2) income or rental payments derived from a grant, loan program, the State or federal government or any local governmental unit, including the HOPE program or a Section 8 voucher, or financial assistance from a private source, including a nonprofit or other nongovernmental entity. Amends the exemption from GS 41A-4 for religious institutions or organizations or organizations they operate, supervise, or control, who give preference to members of the same religion in real estate transactions, to also prohibit them from restricting membership based on source of income. Effective October 1, 2025.

Section 3

Appropriates $45 million for 2025-26 from the General Fund to the North Carolina Housing Trust Fund to be used for the purposes in GS Chapter 122E (North Carolina Housing Trust and Oil Overcharge Act). Effective July 1, 2025.

Section 4

Amends GS 161-11.5 by decreasing the amount of the fee collected by the register of deeds for the registration or filing of instruments in general and for registering or filing any deed of trust or mortgage that must be credited to the General Fund from 20% to 18.5% and adds the requirement that 1.5% be credited to the North Carolina Housing Trust Fund. Effective July 1, 2025.

Section 5

Amends GS 105-228.30 by requiring that 33% of the funds from the excise tax on instruments conveying any interest in real property is conveyed to another person be remitted to the North Carolina Housing Trust Fund. Effective July 1, 2025.

Section 6

Adds new Article 2B, Fair Use of Credit Reports, to GS Chapter 75, providing as follows. Prohibits credit reporting agencies from collecting, storing, reporting, or using to determine a composite-type score information regarding any lawsuit filed against the consumer for ejectment or summary ejectment unless there has been a judgment entered in favor of the landlord. Applies to credit information collected or reports disbursed on or after October 1, 2025.

Section 7

Adds new Article 6, Optional Credit Reporting for Tenants of Subsidized Housing Program (Program), in GS Chapter 157, providing as follows.

Requires any participating landlord of subsidized housing to offer the tenant(s) obligated on the lease the option of having their rent payment information reported to at least one credit reporting agency. Defines participating landlord as a landlord who decides to participate in the Program; requires any housing authority engaged in the practice of directly leasing residential accommodations to tenants automatically be considered as a participating landlord. Defines rent payment information as information concerning a tenant's timely payment of rent, untimely payment of rent, or nonpayment of rent; excludes information concerning a tenant's payment or nonpayment of any fees other than rent. Requires for leases entered into on or after October 1, 2025, that the offer to report rent payment information be made at the time of the lease agreement and at least once annually thereafter. Requires the offer to report to include a written election of rent reporting that contains at least the nine specified items, including: (1) identification of each credit reporting agency to which rental payment information will be reported; (2) a statement that all of the tenant's rental payments will be reported, regardless of whether the payments are timely, late, or missed; (3) a statement that the tenant may opt into rent reporting at any time after the initial offer by the participating landlord; and (4) a statement that the tenant may elect to stop rent reporting at any time, but that they will not be able to resume rent reporting for at least six months after their election to opt out. Sets out further provisions governing the submission of the offer and acceptance of the tenant’s election to begin rent reporting. Allows the landlord to require a fee when the tenant elects to have their rental payments reported, of no more than the lesser of the actual cost of the landlord to provide the service or $10 per month; sets out provisions that apply when the tenant fails to pay the fee. Sets out the process for the tenant to stop the reporting.

Appropriates $1 million for 2025-26 from the General Fund to the North Carolina Housing Finance Agency to provide grants to private landlords deciding to participate in the Program. Requires grants to be awarded on the express condition that the funds be used by the landlord to make improvements to the subsidized housing provided. Requires grants to be awarded after October 1, 2026. Sets out provisions governing the amount of the grants. Prohibits awarding grants to housing authorities.

Applies to leases entered into on or after October 1, 2025.

Section 1.

Amends GS 20-305 (concerning coercing a dealer to accept commodities not ordered; threatening to cancel franchise; preventing transfer of ownership; granting additional franchises; terminating franchises without good cause; preventing family succession), as follows. Makes technical changes.  

Adds the following two new things that a manufacturer is prevented from doing in relation to challenges to the sale or transfer of ownership of a dealership as described under GS 20-305(4)(i): (1) to inquire about or consider whether another manufacturer or distributor had previously denied, rejected, or otherwise turned down the application of the applicant, or any person or entity affiliated with the applicant, to acquire a franchise or dealership or become principal operator, part of the executive management, or a successor owner or manager of a dealership under the circumstances described and (2) to inquire about or consider whether the applicant, or any person or entity affiliated with the applicant, had, for any reason, ever previously commenced a civil or administrative proceeding against any manufacturer or distributor in the under the circumstances described.  Adds new GS 20-305(4)(j) requiring a manufacturer or distributor to reimburse both the dealer and applicant for their respective attorneys' fees if a manufacturer or distributor takes adverse action as described in response to a dealer’s proposed ownership transfer as described and (1) both the dealer and applicant elect not to appeal from or otherwise seek civil or administrative redress from the adverse action or (2) the manufacturer or distributor’s adverse action is ultimately overturned by a reviewing court or administrative agency.

Expands the conditions under which failure by a motor vehicle dealer to comply with the manufacturer’s reasonable performance criteria as described may constitute good cause for purposes of a manufacturer’s cancellation, termination or nonrenewal of a franchise with a licensed new motor vehicle dealer under GS 20-305(6) to also require that during the entire performance review period established by the manufacturer, the manufacturer made available to the dealer a sufficient number and model mix of new motor vehicles for the dealer to achieve all elements of the manufacturer's performance criteria. Expands the types of new and unsold goods that the manufacturer must purchase if cancelling a franchise to include but not be limited to travel trailers, slide-in truck campers, and park models. Removes provisions exempting a termination, nonrenewal, or cancellation of the franchise agreement at the initiation of a new motor vehicle dealer of recreational vehicle motor homes in the circumstances described, from GS 20-305(6)(e) and (f)’s provisions relating to payments and facilities assistance.

Section 2.

Now requires a manufacturer or distributor to compensate a franchised or new franchised motor vehicle dealer in an amount not less than 20% of the gross compensation that was collected from the customer (was, reasonable compensation) under the described circumstances in GS 20-305(57)(c) and (d) as part of the requirements to be met to sell, or activate for a fee, any permanent or temporary motor vehicle accessory, option, add-on, service, feature, improvement, or upgrade on or to any motor vehicle owned or leased by a retail customer located in the State, through over-the-air or remote means. Also requires those manufacturers and distributors to provide to each of its franchised dealers within this State, on at least a monthly basis, an itemized statement as described of over-the-air or remotely activated products and services that were sold to the dealer's customers and calculating the fees and commissions to which the dealer is entitled.

Section 3.

Amends GS 20-305(4)(e)’s provisions on hearings before the Commissioner of Motor Vehicles relating to an adverse action by a manufacturer or dealer to the described changes in dealer ownership, as follows. Places the burden of proof as described, on a manufacturer if they are objecting to a proposed change in the executive management or principal operator of the dealership on the candidate's alleged poor past performance. Details information now required to be contained in a manufacturer notice of objection.  

Section 4.

Includes persons who perform any warranty service or recall work on motor vehicles, except for a commercial fleet customer that has a designation as such by the manufacturer or distributor under the definition of motor vehicle dealer or dealer under GS 20-286(11). Removes exemptions from the definition for persons providing vehicle subscriptions or monthly rental programs on or after January 1, 2025.

Section 5.

Adds new term sell to GS 20-286, applicable to Article 12 (Motor Vehicle Dealers and Manufacturers Licensing Law). Makes organizational changes.

Section 6.

Expands the triggering events under GS 20-305(7) that authorize an owner of a new motor vehicle dealership to appoint a designated successor to include retirement of the owner or principal operator. 

Section 7.

Adds the following two new unlawful practices to GS 20-305:

• To sell, transfer to floor plan, assign a certificate of origin, or otherwise require a dealer to accept ownership or possession of a new motor vehicle that either (1) cannot be immediately sold at retail due to the existence of an open recall, missing or inoperable part or component, or stop sale order or (2) has not actually been delivered to a dealer within 90 days after the manufacturer or distributor has represented to the dealer that the vehicle was shipped.
• To vary the price charged to a dealer for any training, software, equipment, or tools that is in any way based upon a dealer's compliance with a facility image program or requirement.

Section 8.

Modifies the information that a motor vehicle manufacturer, factory branch, distributor or distributor branch must specify in writing to each of its motor vehicle dealers under GS 20-305.1(a) (automobile dealer warranty and recall obligations) to now include obligations related to pre-sale maintenance, manufacturer-directed component installation or assembly, and compensation related to battery or airbag shipping, storage, or disposal, for shipping, storage, or disposal of any other parts, fluids, or vehicle components.  Removes requirement that time allowances for the performance of preparation, delivery, warranty, and recall work and service must be reasonable and adequate for the work to be performed. Removes provisions pertaining to retail rates charged for parts and labor by other franchised dealers of the same line-make located within the dealer's market.  Adds the two following provisions to the listed obligations under GS 20-305.1

Allows a motor vehicle dealer to either (1) accept a manufacturer's, factory branch's, distributor's, or distributor branch's labor time guide as adequate and fair compensation for labor services rendered for repairs in an amount equal to the amount a retail customer pays for the same labor services with regard to labor time or (2) elect to establish an average retail labor time allowance as discussed below.

Provides a process and calculation by which a motor vehicle dealer may elect to establish an average retail labor time allowance in lieu of the manufacturer's, factory branch's, distributor's, or distributor branch's labor time guide for manufacturer, factory branch, distributor, or distributor branch-paid repairs or service.

Section 9.

Amends GS 20-305(33) to govern failure to reimburse a dealer for the described costs when the manufacturer approves (currently just requires) a rental or loaner vehicle to a customer having their vehicle serviced at the dealership. Provides that it is unlawful to or a manufacturer to fail to reimburse the dealer in full for a rental or loaner vehicle to a customer because all or any portion of the time the dealer has provided the customer with a loaner or rental vehicle is due to the unavailability of one or more parts sold  or distributed by the manufacturer or through its  supplier, regardless of whether or not the manufacturer has its own loaner program in which the dealer has elected not to participate. Sets forth a process for reimbursement of rental vehicles. 

Section 10.

Contains severability clause.

Section 11.

Applies to all current and future franchises and other agreements in existence between any new motor vehicle dealer located in the State and a manufacturer or distributor as of the effective date of this act.