Identical to H 517, filed 3/25/25.

Part I.

Amends GS 55A-11-02 to allow a charitable or religious corporation to merge, without prior approval of the superior court, with a limited liability company if (1) its sole member is a domestic or foreign corporation exempt from income tax; and (2) it is disregarded for income tax purposes but would be eligible for an exemption under the specified provision of the Internal Revenue Code if it were not disregarded.

Amends GS 55A-11-09, concerning merger with unincorporated entities, as follows. Expands upon the definition of a business entity to also include a nonprofit association, whether or not it was formed under this State's laws. Provides that if the surviving business entity is not a domestic limited liability company, a domestic business corporation, a domestic nonprofit corporation, or a domestic limited partnership, when the merger takes effect,  the surviving business entity is deemed to have agreed that it may be served with process in this State in any proceeding for enforcement of any obligation of any merging nonprofit association that is formed under the laws of this State. Makes additional technical and clarifying changes.

Amends GS 55A-12-02 by making technical and clarifying changes.

Applies to plans of mergers adopted on or after October 1, 2025.

Part II.

Enacts new GS 55A-16-22.1 requiring domestic and foreign corporations authorized to conduct affairs in the State to submit annual reports electronically to the Secretary of State that include six specified items, including its principal office address and telephone number, brief description of the nature of its activities, and specified types of contact information. Requires corporations to also submit annual reports with due date varying based on the type of corporation. Sets out the process for filing late reports and for amending previously filed reports. Sets out actions a corporation may take under which it is deemed to have filed the required annual report.

Amends GS 55A-1-22, as amended, by providing that there is no fee for filing the annual report.

Amends GS 55A-14-20 to allow the Secretary of State to commence a proceeding to dissolve administratively a corporation for being delinquent in submitting its annual report. Makes additional technical changes.

Amends GS 55A-14-22 by amending the actions that must be taken before the Secretary of State will cancel a certificate of dissolution and prepare a certificate of reinstatement, to also require the payment of any penalties and payments due. Makes additional clarifying changes. 

Allows the Secretary of State, to waive the fee to be paid by a corporation seeking reinstatement following administrative dissolution for delinquent filing of the annual report, until January 1, 2029.

Applies to annual reports due on or after January 1, 2027.

Part III.

Adds new Article 11B, Domestication, to GS Chapter 55A, providing as follows. 

Allows a foreign nonprofit corporation to become a domestic nonprofit corporation by complying with the Article, so long as domestication is allowed by the laws in the foreign corporation's jurisdiction. Also allows a domestic nonprofit corporation to become a foreign nonprofit corporation by complying with the Article, under a plan of domestication, so long as the domestication is allowed by the laws of the jurisdiction of the foreign corporation. Provides that a charitable or religious corporation may only become a foreign nonprofit corporation in accordance with the statutory requirements for mergers involving charitable or religious corporations, and requires the domesticated corporation to meet the same requirements as the survivor in a merger. Provides that any devise, gift, grant, or promise contained in a will or other instrument made to a domesticating corporation that takes effect or remains payable after the domestication becomes effective, inures to the domesticated corporation unless the will or other instrument provides otherwise.

Allows a domestic nonprofit corporation to become a foreign nonprofit corporation by approving a plan of domestication; sets out items that must be included in the plan. Allows the plan's terms concerning the manner and basis of converting the memberships of the domesticating corporation into memberships, obligations, rights to acquire memberships, cash, or other property, to be made dependent upon facts objectionably ascertainable outside the plan.

Sets out the process under which the plan of domestication is to be adopted when the domestic nonprofit corporation is to be the domesticating corporation. Allows a plan of domestication of a domestic nonprofit corporation to be amended before articles of domestication have taken effect. Sets out the procedures that can be used by a domestic nonprofit corporation in approving an amendment of a plan of domestication. Allows a plan of domestication to be abandoned, as provided for in the plan, after it is approved but before articles of domestication have become effective. Sets out the process for abandonment and requires specified information to be included in the articles of abandonment. 

Sets out what must be included in the articles of domestication, and requires the articles to be signed by the domesticating corporation and filed with the Secretary of State. Sets out provisions governing when the domestication becomes effective. Sets out six provisions that apply once the domestication becomes effective, including that all debts, obligations, and other liabilities of the domesticating corporation remain the responsibility of the domesticated corporation, allows the name of the domesticated corporation to be substituted for the name of the domesticating corporation in any pending proceeding, and the articles of incorporation and bylaws of the domesticated corporation become effective. Sets out provisions governing the interest holder liability of a member in a foreign corporation that is domesticated into this State who had interest holder liability in respect of the domesticating corporation before the domestication becomes effective. Provides that a member who becomes subject to interest holder liability in respect of the domesticated corporation as a result of the domestication has interest holder liability only in respect of interest holder liabilities that arise after the domestication becomes effective. Specifies that a domestication does not constitute or cause the dissolution of the domesticating corporation.

Amends GS 55A-1-22, by setting a $25 fee for filing articles of domestication and a $10 fee for filing articles of abandonment of domestication. 

Amends GS 55A-1-60 to allow a judicial order requiring a meeting of a corporation to be held or that requires a method be used to obtain a vote, to also authorize obtaining votes or approvals necessary for domestication. Makes additional clarifying changes.

Amends GS 55A-8-25 to prohibit a committee of the board from recommending to members or approving domestication.

The above provisions are effective October 1, 2025.

Provides that if a protected agreement of a domestic domesticating nonprofit corporation in effect immediately before the domestication becomes effective contains a provision that applies to a merger of the corporation and the agreement does not refer to domestication, then the provision applies to a domestication as if the domestication were a merger until the provision is first amended after October 1, 2025. Sets forth four items that are considered a protected agreement if in effect immediately before October 1, 2025.

Part IV.

Amends GS 55A-1-50, concerning private foundations, by adding that a private foundation's board of directors consists of one or more natural persons, with the number specified in or fixed in accordance with the articles of incorporation or bylaws.

Amends GS 55A-8-03 to require a board of directors of a nonprofit corporation to have three or more persons (was, one or more); makes conforming and clarifying changes. Amends GS 55A-8-11 to allow a board of directors to have fewer than three members due to vacancies until the vacancies are filled.

Applies to corporations organized on or after October 1, 2025.

Part V.

Amends GS 55A-8-25 by providing that the number required to approve the creation of a committee of the board and the appointment of its members applies unless the articles of incorporation or bylaws provide otherwise. Applies to committees created on or after October 1, 2025.

Part VI.

Adds new Part 1, Conversion to Nonprofit Corporation, in Article 11A of GS Chapter 55A, providing as follows.

Allows a business entity that is not a domestic nonprofit, to convert to a domestic nonprofit if (1) the conversion is permitted by the laws of the state or country governing the organization and internal affairs of the converting business entity and (2) the converting business entity complies with the requirements of this Part 17 and, to the extent applicable, the laws referred to above. Defines business entity as a domestic business corporation, including a professional corporation, a foreign business corporation, including a foreign professional corporation, a domestic or foreign nonprofit corporation, a domestic or foreign limited liability company, a domestic or foreign limited partnership, a registered limited liability partnership or foreign limited liability partnership, or any other partnership whether or not formed under the laws of this State.

Requires the converting business entity to approve a written plan of conversion that includes specified information, including the manner and basis for converting the interests in the converting business entity, if any, into any combination of eligible interests or other securities, rights to acquire interests or other securities, obligations, cash, or other property of the resulting domestic nonprofit corporation. Requires the plan to be approved in accordance with the laws of the state or county governing the organization and internal affairs of the converting business entity. Allows amending or abandoning the plan after it has been approved but before articles of incorporation for the resulting domestic nonprofit have become effective, to the extent legally allowed.

Requires the converting business entity to deliver articles of conversion to the Secretary of State for filing after a plan of conversion has been approved. Sets out what must be included in the articles of incorporation. Sets out steps that must be taken when the plan is abandoned after the articles have been filed. Specifies that the conversion takes effect when the articles of incorporation become effective. Requires certificates of conversion to also be registered.

Provides that when the conversion takes effect, then: (1) the converting business entity ceases its prior form of organization and continues in existence as the resulting domestic nonprofit; (2) the title to all real estate and other property owned by the converting business entity continues vested in the resulting domestic nonprofit without transfer, reversion, or impairment; (3) except as otherwise provided by law or by the plan of conversion, all rights, privileges, immunities, powers, and purposes of the converting business entity remain vested in the resulting domestic nonprofit; (4) all debts, obligations, and other liabilities of the converting business entity continue as debts, obligations, and other liabilities of the resulting domestic nonprofit; (5) a proceeding pending by or against the converting business entity may be continued as if the conversion did not occur and allows the name of the resulting domestic nonprofit to be substituted for the name of the converting business entity in any pending action or proceeding; (6) the interests and obligations in the converting business entity are converted to eligible interests or other securities, rights to acquire interests or other securities, obligations, cash, or other property of the resulting domestic corporation in accordance with the plan of conversion; and (7) all of the following apply to the resulting domestic nonprofit corporation: it is incorporated under and subject to GS Chapter 55A, it converts from the converting business entity into its new form of organization interruption, and it is deemed to have been incorporated on the date that the converting entity was originally incorporated or organized. Specifies that the conversion does not affect the liability or absence of liability of any holder of an interest in the converting business entity for any acts, omissions, or obligations of the converting business entity made or incurred prior to the effectiveness of the conversion. The cessation of the existence of the converting business entity in its prior form of organization does not constitute a dissolution or termination of the converting business entity.

Amends Part 2 of Article 11A of GS Chapter 55A, by renaming the Part to Conversion of Nonprofit Corporation and making the following changes.

Amends GS 55A-11A-10 to require that the plan of conversion of a charitable or religious corporation to a domestic limited liability company comply with the following. If the converting charitable or religious corporation does not have any members entitled to vote on the conversion, the plan must be approved by the board of directors of the converting charitable or religious corporation. If members are entitled to vote on the conversion, the plan must be approved first by the board of directors and then by the members entitled to vote; sets out additional requirements for the voting process. If, as a result of the conversion, one or more members of the converting entity would become subject to new member liability, approval of the plan of conversion requires that each of those members sign a separate record consenting to become subject to the new member liability. Also requires the plan of conversion to be approved by any person or group of persons whose approval is required under GS 55A-10-30 to amend the articles of incorporation or bylaws of the charitable or religious corporation.

Applies to plans of conversion approved on or after October 1, 2025.

Part VII.

Amends GS 131F-9 by adding that a written acknowledgement that provides the information set forth in the specified section of the Internal Revenue Code satisfies the disclosure requirement for the disclosure by a charitable organization or sponsor soliciting in NC, to be made available upon request, of the amount of the contribution that may be deducted as a charitable contribution under federal income tax law.

Adds definitions of hemp-derived beverage and hemp-derived cannabinoid to the definitions provided in GS 18B-101, and includes hemp-derived beverages in the definition of malt beverage, while excluding it from the definition of alcoholic beverage. Adds new subsection (a2) to GS 18B-102, making it unlawful to manufacture, sell, transport, import, deliver, furnish, purchase, consume, or possess hemp-derived beverages except as provided in GS Chapter 18B. Includes hemp-derived beverages in the standards provided under GS 18B-206, giving the Alcoholic Beverage Control Commission the same authority to set standards and testing procedures as currently applies to alcoholic beverages. Makes conforming changes. Makes clarifying changes to incorporate the renumbered definitions.

Requires the Alcoholic Beverage Control Commission to adopt or amend existing rules consistent with the act, and authorizes the procedure under GS 150B-21.1.

Effective and applicable to hemp-derived beverages sold, transported, imported, delivered, furnished, purchased, consumed, or possessed on or after July 1, 2025.

Amends GS 14-33 by adding a new subdivision making it a Class A1 misdemeanor to assault a utility worker, not otherwise covered under subsection (c), when the worker is discharging or attempting to discharge his or her duties. Defines utility worker as any employee, including any person employed by contract with an organization, entity, or company, whether State-created or privately, municipally, county, or cooperatively owned, that provides gas, heat, electricity, water, telecommunications services, sewer services, cable or video services, internet services, or railroad services.

Makes technical changes to GS 14-33(d).

Amends GS 14-34.2 by adding utility workers, as defined in GS 14-33, to the statute's listed employees, which makes it a Class E felony to commit an assault with a deadly weapon upon those employees when the person is discharging or attempting to discharge his or her duties (was, in the performance of an official duty). This section only applies when the conduct is not covered under some other provision of law providing greater punishment.

Specifies that prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.

Effective December 1, 2025, and applicable to offenses committed on or after that date.

Amends GS 15A-401 (Arrest by law-enforcement officer) by creating new subsection (d2) (Protection from Retaliation), which protects law enforcement officers who report what they believe to be excessive use of force under subsection (d1) (Duty to Intervene and Report Excessive Use of Force) from termination or retaliation. Makes filing a knowingly false report under subsection (d1) a Class 2 misdemeanor. 

Creates new GS 17C-17, prohibiting a public employer from retaliating against a criminal justice officer for disclosing a violation of or noncompliance with a law, rule, or regulation to a supervisor or government agency. Specifies that the employer retains the right to investigate and take appropriate disciplinary action for any policy violation, misconduct, or performance issue, regardless of whether the employee has filed a protected disclosure. Makes it a Class 2 misdemeanor to knowingly file a false report. 

Applies to offenses committed and retaliatory actions taken on or after December 1, 2025.

Amends GS 115C-407.55(2) to include “youth mental health first aid” and the newly created GS 115C-407.57 and GS 115C-407.57A in the list of student health and safety rules during interscholastic athletic activities.

Creates new GS 115C-407.57A (Rules on mental health first aid training for coaches), requiring the State Board of Education (SBE) in consultation with the listed entities to select and publish a list of approved youth mental health first aid training programs that train coaches on recognizing the signs of mental health challenges and substance abuse, assisting youth that are experiencing these challenges, and connecting youth with professional assistance. Directs the SBE to adopt rules requiring coaches and athletic directors to obtain and maintain unexpired certifications from the approved training programs. Requires middle and high schools to maintain records that show compliance with the training requirements.

Creates new GS 160A-358 (youth athletics), that defines “youth athletics organization” as any local government entity, nonprofit organization, or other entity that organizes and conducts athletic competitions for children under 18. Requires counties and cities to receive proof from a youth athletics organization that all coaches have an unexpired certification from a youth mental health first aid training program approved by the SBE before allowing the organization to use any park, recreational center or facility. Requires the county or city to maintain records that show compliance with the training requirements.

Provides that the SBE shall select the National Council for Mental Wellbeing's Youth Mental Health First Aid course and Teen Mental Health First Aid course as the approved training programs and publish those selections no later than March 1, 2026, and annually thereafter until March 1, 2030, if the courses continue to exist. Allows the SBE to review the courses and possibly select other courses beginning March 1, 2031, or earlier if there is evidence of substantial changes to the curriculum.

Applicable beginning July 1, 2026.

Contains whereas clauses.

Section 1

Amends GS 116-11 by adding a new subdivision requiring the Board of Governors to adopt a policy on diversity, equity, and inclusion at constituent institutions of The University of North Carolina (UNC) that complies with new Article 39 of Chapter 116.

Amends GS 115D-5 by adding new subsections requiring the State Board to adopt a policy on diversity, equity, and inclusion at community colleges that complies with new Article 39 of Chapter 116 and a policy that prohibits community colleges from establishing or maintaining a group or committee designed to investigate a bias incident. Defines bias incident as any conduct, speech, or expression that the school, group, or committee labels as intimidating, demeaning, mocking, degrading, or marginalizing an individual or group based on the perceived or actual identity of that individual or group.

Section 2

Amends Chapter 116 by adding Article 39, concerning diversity, equity, and inclusion, as follows.

Enacts GS 116-415 detailing the intent of the General Assembly.

Enacts GS 116-416, which defines governing board and chancellor. Defines discriminatory practice as any of the following when based on an individual’s protected classification under federal law: treating someone different solely to advantage or disadvantage them as compared to other individuals or groups; excluding an individual from employment or participation in an educational program/activity, except as allowed under federal law. Provides a list of 12 concepts to define divisive concept. Defines instruction as content taught or presented to students by employees, contractors, or individuals otherwise engaged by a public institution of higher education. Defines public institution of higher education (Institution) to include a constituent institution of UNC or community college as defined in GS 115D-2(2).  

Enacts GS 116-417, which prohibits any Institution from: (1) engaging in or advocating for discriminatory practices; (2) compelling students, professors, administrators, or other employees to affirm or profess belief in divisive concepts; (3) endorsing divisive concepts; (4) maintaining any office, division, or unit that promotes discriminatory practices or divisive concepts, or is referred to as or named diversity, equity, and inclusion; (5) employing someone or assigning an employee to have duties for an Institution that include promoting discriminatory practices or divisive concepts; or (6) requiring completion of a course related to divisive concepts to obtain a degree or complete a program, unless an exception applies. Clarifies that this does not limit First Amendment-protected speech; accessing materials advocating for divisive concepts or discriminatory practices on an individual basis for research or independent study; policies or procedures required by state or federal law; instruction or discussion on divisive concepts that makes clear the Institution does not endorse the concepts; and a course related to divisive concepts required for a specific degree program as allowed by chancellor’s discretion. Requires the chancellor to report any such course requirement to the governing board.

Requires each Institution to provide written, annual certification to their governing board by September 1 that the Institution fully complies with the requirements of GS 116-417 and include any actions taken to achieve compliance. Requires the governing board to summarize the certifications in a report by January 15 annually to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Education Oversight Committee.

Section 3

For September 1, 2025, certification enacted in Section 2, each Institution must also include information on the initial implementation of this act, including reductions in force and spending, any job title and position description changes, and how savings achieved from these actions have been directed.

Section 4

Amends GS 116-300 by adding a new subdivision requiring the Board of Governors of UNC to develop and adopt a policy on free expression that includes a statement that the constituent institution is prohibited from establishing or maintaining a group or committee designed to investigate a bias incident. Defines bias incident as detailed in Section 1 above.  

Section 5

Contains a severability clause.

Contains whereas clauses.

Section 1.

Titles the act “The Working Hearts, Empowered Homes Act.”

Section 2.

Defines three terms. Requires the Department of Health and Human Services (DHHS) to coordinate all family support contracts and activities across divisions to address duplication, cost efficiency, and effectiveness and ensure compliance with federal requirements while maximizing State and federal resources. Requires DHHS to develop a family support coordination system that integrates family support programs, services, and activities offered throughout the state to ensure streamlined access for working families by consolidating application processes, eligibility requirements, and service delivery methods for family support programs and services.

Section 3.

Effective July 1, 2025, appropriates $3 million from the General Fund to DHHS for each year of the 2025-27 biennium to establish and administer a Regional Hubs Pilot Program (Pilot Program) in up to three different regions of the state to evaluate the effectiveness of utilizing regional hubs that are available in person, through the World Wide Web, or through any other means of electronic access to assist working families with gaining access to family support programs and services in one setting. Authorizes DHHS to use the appropriated funds to enter into a contract with a third-party entity to assist with the design, implementation, and operation of these regional hubs. Requires DHHS to conduct and submit to the specified NCGA committee and the Fiscal Research Division (FRD) a comprehensive evaluation of the Pilot Program, as described, by February 1, 2028. Sunsets the Pilot Program upon the filing of that report.

Section 4.

Effective July 1, 2025, appropriates $7 million from the General Fund to DHHS’s Division of Child Development and Early Education (Division) for each year of the 2025-27 biennium to establish and administer a Child Care Innovation Pilot Program (CCIPP) to evaluate the effectiveness of targeted child care interventions in improving access for working families, especially those employed in industries with nontraditional work hours or employed by small businesses. Authorizes three uses of the funds, including (1) to award grants on a competitive basis to small and midsize nonprofit employers that establish or contract for on-site or near-site child care services for their employees; (2) to award directed grants of up to $1,000 each on a first come, first serve basis to nonprofit or faith-based child care centers located in rural or underserved communities to expand their child caring capacity or extend their hours of operation; and (3) to fund smaller, innovative child care pilot projects in up to five counties determined by DHHS to have the greatest need for expanded access to child care, based on child care availability and economic data. Provides for an application process for the grant programs. Requires the Division to report on the outcomes of the CCIPP, including the four matters specified, to the specified NCGA committee and the FRD, by February 1, 2028. Sunsets CCIPP upon the filing of that report.

Effective July 1, 2025, appropriates $5 million from the General Fund to DHHS’s Division of Child and Family Well-Being (DCFW) for each year of the 2025-27 biennium to establish a Targeted Food Access Pilot Program (Food Access Pilot Program) to improve food security and nutritional outcomes for working families through targeted, community-based strategies. Limits use of appropriated funds to the following purposes: (1) to support produce prescription programs (defined) administered in partnership with  local health clinics or federally qualified health centers, targeting working families who have at least one family member with a chronic health condition or that is actively engaged in workforce training; (2) to support the establishment or expansion of mobile food markets or food delivery programs for working families in areas of the state with food deserts (defined); (3) to support local partnerships with farmers markets, food co-ops, and culturally appropriate food providers to improve food security for working families; and (4) to provide the State contribution necessary to draw down federal matching funds available through the Food and Nutrition Services Program or nutrition initiatives supported by the United States Department of Agriculture, or both, for the previously described purposes. Requires DCFW to report on the Food Access Pilot Program to the specified NCGA committee and the FRD to include the five specified matters by February 1, 2028. Sunsets the Food Access Pilot Program upon the filing of that report.

To the extent funds are made available for the purpose, the Department of Public Instruction (DPI) will establish and administer the Year-Round Nutrition Service Pilot Program (SPP) to enable select local school administrative units to provide free meals to students through the summer. Specifies that any local school administrative unit that is or contains schools eligible for and participating in the Community Eligibility Provision Program is eligible to apply for the SPP. Provides for an application to be developed by DPI. Requires DPI to notify selected local school administrative units selected to participate in SPP by July 15. Requires local school administrative units participating in SPP to (1) participate in the National School Lunch Program, School Breakfast Program, and Summer Food Service Program and (2) provide two meals per day, breakfast and lunch, to students at no cost to the students year-round, regardless of the school's instructional calendar. Appropriates $5 million from the General Fund to DPI for 2025-26 to establish the SPP. Requires DPI to report to the specified NCGA committee on the SPP for each year of the program. Effective July 1, 2025, and applies beginning with the 2025-26 school year.

Section 5.

Effective July 1, 2025, appropriates $2 million from the General Fund to DHHS’s Division of Central Management and Support, Office of Rural Health (ORH) in recurring funds for each year of the 2025-27 biennium to be used to provide grants to local health departments, federally qualified health centers, community health centers, and other safety-net providers to expand telehealth services in up to ten counties to enable working families to participate in virtual preventative care services, including wellness checkups, mental health counseling, and pediatric consultations. Requires ORH to prioritize safety-net providers located in low-wealth counties in selecting grant recipients.

Effective July 1, 2025, appropriates $3 million from the General Fund to DHHS’s Division of Central Management in recurring funds for each year of the 2025-27 biennium to be used to offer employers with 50 or more employees an incentive to offer on-site child care and flexible work hours to accommodate working families.

Section 6.

Declares the General Assembly’s intent that DHHS and DPI pursue all available federal matching funds to supplement State investments in integrated family support services.

Section 7.

Establishes the nine-member Family Support Advisory Board (Advisory Board) within the Department of Health and Human Services, with membership as described. Provides for a chairperson, administrative support from DHHS, at least quarterly meetings, quorum, and reimbursement of expenses for those members of the Advisory Board that are not full-time salaried public officers or employees other than State officers or employees. Requires the Advisory Board to provide consultation with respect to the fulfillment of DHHS’s obligations under the Pilot Program described in Section 3. Beginning May 1, 2027, requires the Advisory Board to annually conduct a comprehensive evaluation of family support services in North Carolina and submit a report of its findings and recommendations to the specified NCGA committee and the FRD on the three specified matters. Requires the evaluation to be made publicly available on DHHS’s website.

Section 8.

Contains a severability clause.

Amends GS 108A-25.2 to exempt an individual who has been convicted of a drug related felony from the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 if the individual can show: (1) they completed a substance abuse treatment program while in custody, or immediately after conviction if not in custody; or (2) are in continuous active participation in a required substance abuse treatment program. This exemption allows the individual to obtain assistance from the Work First Program and the food and nutrition services program.

Effective January 1, 2026.

Repeals subsections (b), (c), (d), and (j) of GS 58-3-220, concerning large employer group health plan minimum required benefits and durational limits.

Recodifies subsection (h) of GS 58-3-220 as subsection (a1) of GS 58-3-220.

Amends GS 58-3-220(a) by requiring all health benefit plans to provide coverage for necessary care and treatment of mental health conditions that are no less favorable than the benefits for the necessary care and treatment of physical health conditions (was, no less favorable than benefits for physical illness generally). Makes technical changes, conforming changes, and eliminates the use of illness and substitutes it with health or health condition(s) throughout. Removes definition of mental illness.

Amends GS 58-3-220(a1) by changing the defined term from mental illness to mental health condition and eliminating substance related disorders from those mental health conditions excluded from the meaning of the term. Makes technical changes to the definition as well. Makes technical changes to the definitions for health benefit plan, insurer, and medical necessity.

Amends GS 58-3-220(g) and GS 58-50-61(d1) concerning utilization review criteria to determine medical necessity by making technical changes and requiring that clinical review criteria and assessment of medical necessity for a treatment modality for any mental health condition, including substance use disorders, be consistent with the review criteria and assessments used to determine the medical necessity of non-mental health conditions. Specifies that for substance use disorders, medical necessity is determined by reliance on the most recent American Society of Addiction Medicine criteria alone.

Amends GS 58-3-220(i) by applying all applicable federal law to all health benefit plans (was, a requirement for group health benefit plans that cover both medical and surgical benefits and mental health benefits to follow applicable standards of Subtitle B of Title V of Public Law 110-343, with respect to mental health benefits).

Makes technical and conforming changes to GS 58-50-61(d).

Amends GS 58-50-61(d2) to require an insurer or its utilization review organization (was, insurer only) to follow certain criteria in issuing a utilization review decision. Makes technical changes to the subsection.

Requires the State Treasurer and Executive Administrator of the State Health Plan (SHP) to review all SHP practices, contracts with, and practices of any third party conducting utilization review on behalf of the SHP, to ensure compliance with GS 58-50-61, as amended no later than the start of the next plan year.

Mandates that the Revisor of Statutes replace the phrase chemical dependency with the phrase substance use disorder in all listed statutes.

Repeals GS 58-51-50 (coverage for chemical dependency treatment), GS 58-51-55(a)(2) (chemical dependency definition), GS 58-51-55(c) (specifying that the statute does not require insurer to offer coverage for chemical dependency), GS 58-65-75 (group insurance coverage for chemical dependency), GS 58-65-90(a)(2) (defining chemical dependency), GS 58-65-90(c) (not requiring service corporations to offer coverage for chemical dependency), GS 58-67-70 (concerning a health maintenance organization's coverage for chemical dependency), GS 58-67-75(a)(2) (chemical dependency definition), and GS 58-67-75(c) (not requiring HMO to offer coverage for chemical dependency).

Makes conforming changes to GS 58-3-192(a)(2).

Effective October 1, 2025, and applies to insurance contracts issued, renewed, or amended on or after that date.

Section 1.

Sets forth the General Assembly’s findings pertaining to healthy soils, including that they are a limited natural resource and fundamental for healthy and sustainable food production. Improving soil health means increasing soil's organic matter and diversifying its microbial activity to enhance agricultural productivity and environmental resilience. 

Section 2.

Enacts Article 7, the Healthy Soils Task Force (Task Force), in GS Chapter 139. Establishes a 13-member Task Force within the Department of Agriculture and Consumer Services (DACS) for budgetary purposes only in GS 139-70. Provides for eleven voting members, appointed as specified. Directs that the chairs of the House and Senate standing committees with responsibility for agriculture issues are nonvoting members of the Task Force. Provides additional requirements for the members appointed by the government, including that one be a farmer farming less than 180 acres and another be a farmer farming between 180 and 500 acres. Provides for quarterly meetings, quorum, terms and vacancies, staff from DACS to assist the Task Force in its work, and reimbursement of the Task Force and its staff for travel and subsistence expenses as specified. Sets forth six duties of the Task Force in GS 139-71 including: (1) developing a comprehensive healthy soils initiative for the state that will be implemented in a manner that supports local economic growth; (2) developing a comprehensive action plan to coordinate efforts to carry out healthy soils initiatives using standards for organic matter, biological activity, biological diversity, and soil structure as measures to assess improved soil health; (3) developing recommendations for the use of plants that preserve soil health; and (4) identifying opportunities to leverage state, local, or private funds under the Regional Conservation Partnership Program of the United States Department of Agriculture and other conservation programs for the purposes of the healthy soils initiative. Authorizes, in GS 139-72, the Task Force to consult with other agencies or organizations in carrying out its duties including the five specified entities. Directs the Task Force to submit the comprehensive action plan and report its findings and recommendations to the Governor and the specified NCGA committees on or before January 31, 2027. Specifies that the act expires on the earlier of December 31, 2029, or the date of submission of the final report of the Task Force.

Modifies the definition of electric assisted bicycle in GS 20-401 so that it must meet the requirements of one of the following three listed classes: (1) a class 1 electric bicycle (a bicycle equipped with a motor that provides assistance only when the rider is pedaling and ceases to assist once the bicycle reaches a speed of 20 miles per hour); (2) a class 2 electric bicycle (a bicycle equipped with a motor that may propel the bicycle without pedaling but ceases to assist once the bicycle reaches a speed of 20 miles per hour); and (3) a class 3 electric assisted bicycle (a bicycle equipped with a motor that provides assistance only when the rider is pedaling and ceases to assist once the bicycle reaches a speed of 28 miles per hour). Enacts new GS 160A-300.2 authorizing cities to regulate electric assisted bicycles on any street, road, or highway within municipal limits to include (1) restricting the use of a class or classes of electric assisted bicycles on multiuse paths, sidewalks, or trails, and (2) establishing speed limits on greenways or shared-use paths. Enacts new GS 20-171.3 allowing the operation of an electric assisted bicycle on all roadways, bicycle lanes, and shared-use paths, except as otherwise regulated in new GS 160A-300.2 and GS 153A-245.1; requires person operating or riding class 3 bicycles to wear a helmet. Allows a city to require helmet use by a person operating or riding as a passenger on a class 1 or 2 electric assisted bicycle and to impose penalties for violations. Permits counties, in new GS 153A-245.1 to regulate electric assisted bicycles in the same as cities can except that the statutory authority cannot be deemed to restrict or repeal the authority of a city to regulate the use of an electric assisted bicycle. Requires the Department of Transportation to develop educational materials on the proper use and safety considerations of electric assisted bicycles. Applies to all electric assisted bicycle riders and passengers on or after the act becomes law.

Establishes the NC Competency-Based Education Innovation Grant and Network Program (Program) to provide funding and support to schools and districts to support the transition to competency-based education (CBE) models that focus on mastery of learning rather than instructional time. Specifies that the grant aims to promote innovative instructional practices, flexible assessment models, and systemic shifts to ensure all students progress based on demonstrated proficiency. Sets forth four program objectives, including: (1) support schools and districts in developing personalized, CBE models that allow students to progress at their own pace; (2) utilize formative and performance-based assessments that measure student mastery of skills and knowledge, including the use of AI learning tools; (3) provide common professional development for educators on instructional strategies and assessment practices aligned with transitioning to CBE; and (4) develop and share resources, implementation strategies, and lessons learned to expand CBE across North Carolina. Sets Phase One (where public school units submit applications and complete any planning or organizational duties) to begin with the 2025-26 school year and continue until the conclusion of the 2028-29 school year, as specified. Tasks the Department of Public Instruction (DPI) with creating the application as described and selecting participants as set forth in the specified timeline. Sets grant awards at $330,000 to each participating school. Requires schools to use $95,000 each school year to receive training on the implementation of CBE in the school, with the remaining amount to be used for costs associated with the transition to CBE, including travel costs and CBE resources. Provides for grant funds to remain available until the end of the 2028-29 year.

Requires DPI to select a third-party vendor that is an educational support provider with a nationally recognized, research-based instructional and leadership framework, as described, to develop publicly available, standards-aligned proficiency scales for all content areas and grade levels to ensure educators in the participating schools have the tools necessary to successfully transition to CBE approaches. Requires the vendor to provide annual professional development events throughout the regions of the state to ensure educators can engage in learning about CBE approaches, including implementation of the proficiency scales developed. Requires DPI to develop, in collaboration with the vendor, a CBE network to support the long-term transition to CBE in the seven specified ways and to provide support and technical assistance, professional learning opportunities, and access to the CBE network for all grant recipients.

Requires each participating school to submit a quarterly progress report to DPI detailing implementation of CBE in the school as specified. Requires DPI to establish due dates and methods of submission. Requires DPI to submit a final report on the outcomes of Phase One of the Program, as described, by December 1, 2029. Declares the General Assembly’s intent to fund the Program with nonrecurring funds for the 2025-26 year. Effective when the Current Operations Appropriations Act of 2025 becomes law and if that bill appropriates funds for the purposes detailed in the act.

Appropriates $6.5 million from the General Fund to the Office of State Budget and Management for 2025-26 to provide a directed grant to Discovery Place, Inc., to be used  for the completion of sidewalks, parking lots, electric vehicle charging stations, and the Tree Canopy Walk project. Effective July 1, 2025. 

Amends GS 15A-304(b) to only allow issuance of an arrest warrant for probable cause based solely a sworn affidavit or oral testimony of a person (who is not a sworn law enforcement officer) to allegations of domestic violence. Eliminates citizen-initiated warrants where there is corroborating testimony of the facts establishing probable cause from a sworn law enforcement officer or at least one disinterested witness; the issuing official finds that obtaining investigation of the alleged offenses by a law enforcement agency would constitute a substantial burden for the complainant; or the official finds substantial evidence of at least one of the circumstances listed in subdivision (b)(1) where it appears to the official that the person named should be taken into custody, such as failure to appear when previously summoned, danger that the person accused will escape, danger that there may be injury to person or property, or the seriousness of the offense. Effective October 1, 2025, and applies to processes issued on or after that date. 

Identical to H 532, filed 3/26/25.

Amends GS 153A-311 to clarify a board of county commissioners may define a county research and production service district for any service or function that a city or county is authorized to maintain “in its territorial jurisdiction.” Specifies that the concurrent resolutions creating a multi-county district in GS 153A-313 must provide the number of advisory committee members, at least 10, and that the resolutions may allow the appointments to be divided among the counties proportionate to the respective size of the district. Adds new subsection (a1) to GS 153A-314 (Extension of service districts), allowing multi-county districts to annex territory wholly within one county with a resolution adopted by the board of county commissioners for that county.

Allows a county to designate the developer of a research and development park established as a research and production service district as an agent that may contract to provide services, including streets, parks, schools, utilities, and transportation systems, within the district by amending GS 153A-315(a).

Adds new subsection (a1) to GS 153A-316.1 [Urban research service district (URSD)], which permits the creation of a multi-county district even if the portion of the district lying in any one of the counties does not by itself meet the standards required for a district.

Amends GS 153A-316.2(a) to clarify the appointments of URSD advisory committee members shall be set forth in the resolution creating the committee, and that for multi-county districts the concurrent resolutions may allow the appointments to be divided among the counties proportionate to the respective size of the URSD. Amends subsection (b) to provide that for multi-county districts described in GS 153A-316.1(a1), discussed above, the board of commissioners for each county may make one additional appointment to the advisory committee.

Adds new subsection (a1) to GS 153A-316.3 (Extension of URSD), allowing multi-county districts to annex territory wholly within one county with a resolution adopted by the board of county commissioners for that county.

Amends GS 153A-316.5(a) to allow a county or counties to designate the developer of a development park where the URSD is located as an agent to provide services, including streets, parks, schools, utilities, and transportation systems, within the URSD.

Clarifies in GS 153A-317(a) that only services that counties and cities are authorized by law to provide may be provided within a district. Increases the limit on additional property taxes in subsection (b) to 20 cents per $100 and removes previous language providing a range between 10 cents and 20 cents.

Amends GS 153A-317.1(a) to add “counties and” to the restriction that only services authorized to be provided by counties and cities may be provided in the URSD. Amends subsection (c) to clarify that projects benefiting the URSD may be included in the calculation of debt service payments based on taxes levied by the county, and that a capital project does not have to be located wholly within the URSD to be considered benefitting the URSD.

Adds “such as a greenway, to the extent it supports a means of public conveyance,” to the definition of “Public Transportation” in GS 153A-149(c)(27).

Enacts GS 103-19 as title indicates.

Appropriates $6 million from the General Fund to the Office of State Budget and Management for 2025-26 to provide a directed grant to Hyde County to be used to assist with the purchase of property for oyster farming. Specified that the county is to collaborate with North Carolina Marine Industrial Park Authority on this project. Effective July 1, 2025.

Appropriates $5 million for 2025-26 from the General Fund to the Office of State Budget and Management to provide a directed grant to the Charlotte Mecklenburg Library Foundation to be used as title indicates. Effective July 1, 2025.

Appropriates $20,440,000 from the General Fund to the Office of State Budget and Management for 2025-26 to provide a directed grant to the Town of Davidson for emergency services. Specifies that funds are to be used for (1) the construction of a fire station, (2) to purchase an emergency vehicle, (3) to purchase police equipment, and (4) to replace breathing apparatus equipment. Effective July 1, 2025.

Includes whereas clauses.

Appropriates $30 million for 2025-26 from the General Fund to the North Carolina Housing Trust Fund to be used in accordance with the purposes of GS Chapter 122E (North Carolina Housing Trust and Oil Overcharge Act).

Amends GS 161-11.5 by amending the distribution of the $6.20 of the fee collected by the register of deeds for registering or filing Instruments in General and registering or filing any deed of trust or mortgage, by decreasing the amount that goes to the General Fund from 20% to 18.5% and adds a distribution of 1.5% to the North Carolina Housing Trust Fund.

Amends GS 105-228.30 by amending the distribution of the proceeds of the excise tax on instruments conveying an interest in real property so that 33% of the funds are remitted to the North Carolina Housing Trust Fund, with the remainder to the General Fund.

Effective July 1, 2025.

Appropriates $40,482,480 for each year of the 2025-27 biennium from the General Fund to the Reserve for Compensation Increases, effective July 1, 2025, to establish pay rates for the State Highway Patrol (SHP), asset out in the act. 

Requires, effective July 1, 2025, that SHP employees be paid based on the established experience based or rank-based schedules. Salaries range from $56,000 to $105,000 for experience ranging from 0 years to 8+ years. Salaries range from $120,750 to $224,612 for ranks ranging from Sergeant to Colonel.