Part I.

(Reserved)

Part II.

Amends GS 105-506.1 by expanding upon the definition of public transportation system so that it also includes other forms of micro-transit and tunnels and other infrastructure designed to rapidly transport people, freight, or vehicles through automated means. Amends the definition of transportation authority in as it applies to Part 2 of the Article, which is applicable to an additional 1/2% local sales and use taxes for public transportation systems in Mecklenburg County, so that it is defined as a metropolitan public transportation authority.

Directs, in GS 105-507.2(b), that no action by Mecklenburg County to repeal a tax levied under Part 2 of Article 43 (Mecklenburg County taxes) of GS Chapter 105 can become effective while previously issued, or refinanced, bonds, notes, or other financing secured or payable by receipts derived from the tax allocated to a municipality or a transportation authority by the county remain outstanding. Specifies that if the county repeals a tax levied Part 2, a municipality or transportation authority may refinance previously issued bonds, notes, or other financing that are secured or payable by  receipts for the tax revenue under Part 2 to reduce debt service as allowed under the law so long as the refinancing does not extend the date of maturity for the previously issued bonds, notes, or other financing. Makes organizational change and conforming change to the statute's title. 

Amends GS 105-507.3 to allow the net proceeds of the additional tax for public transportation systems distributed to any local government, other than the county that levies the tax, to be included as revenues within the meaning of GS 159-81(4), which defines revenue for the purposes of the State and Local Government Revenue Bond Act.

Effective only if Mecklenburg County levies under Part IV, discussed below, amends the distribution and use of taxes under GS 105-507.3, as amended above, as follows. Directs the Secretary of Revenue (Secretary) to now distribute net proceeds of county taxes to the largest transportation authority that includes the county (was, on a per capita basis among the county and units of local government that operate public transportation systems). Bans any funds from being distributed to a transportation authority that does not include public transportation (was, ban on distribution of funds to counties or local governments that don’t operate public transportation). Makes conforming changes. Effective on the same date the tax levied under Part IV becomes effective.

Part III.

Effective only if Mecklenburg County levies the tax under Part IV, discussed below, makes conforming change to Section 3.1 of SL 1997-417, as amended so that the proceeds of the regional transit authority vehicle rental tax regulated by that section are transferred to the largest metropolitan public transit authority instead of the largest city operating a public transportation system.  Effective on the same date the tax levied under Part IV becomes effective.

Part IV

Entitles the part as the Mecklenburg County Roadway Systems and Public Transportation Systems Sales Tax Act (Tax Act). Declares that the Tax Act’s purpose is to give Mecklenburg County an opportunity to obtain an additional source of revenue with which to meet its needs for financing roadway systems and public transportation systems through sales and use taxes as follows.  Allows for a 1% sales and use tax to be levied by the Mecklenburg County Board of Commissioners (Board) in addition to any other State and local sales and use taxes levied pursuant to law only if all of the following conditions are satisfied:

(1)                  The majority of those voting in a referendum vote for the levy of the tax.

(2)                  The General Assembly has enacted authorizing legislation that would allow a public transportation authority (Authority) that includes Mecklenburg County to be established, and the Authority has been established.

(3)                  At least one eligible municipality or an Authority maintains a public transportation system in the County.

Requires any such taxes to be adopted by Board resolution and then by referendum as discussed above. Defines eligible municipality, Red Line, and roadway system. Specifies that the food exempt from sales and use tax under GS 105-164.13B and the sales price of bundled transactions under GS 105-467 should not be taxed under any tax imposed by the Tax Act.  Provides that the referendum be conducted by the Board and for ballot question language. Provides for administration of any taxes levied under the Tax Act.

Requires the Secretary to distribute monthly the net proceeds of the tax to Mecklenburg County, with 40% of the net proceeds  to be distributed among the City of Charlotte and the Towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill, and Pineville (the eligible municipalities defined above) for roadway distribution and use using the procedures for allocation set forth in the Tax Act with the remaining 60% to be distributed to the Authority to be used only for costs associated with financing, acquiring, constructing, operating, and maintaining any combination of real and personal property for a public transportation system. Allows for the Authority to enter into an interlocal agreement with Mecklenburg County or an agreement with a private entity to accomplish its goals relating to the public transportation system. Lists four conditions that apply to the Authority’s use of funds distributed under the Tax Act, including that no more than two-thirds of the funds be used for capital and operating costs of rail projects over any period of 30 calendar years combined, completion of at least 50% of the Red Line with input from the towns of Cornelius, Davidson, and Huntersville, and reimbursement to the City of Charlotte for the acquisition of the Norfolk Southern O-Line and related property. Provides a process to repeal the tax imposed herein if the County so desires. 

If a referendum under Part IV fails, then requires the Charlotte Area Transit System to develop and publish a comprehensive, long-term public transportation plan that specifically includes frequent, express public transportation connections between the center of the City of Charlotte and Charlotte Douglas International Airport within one year after the failed referendum.

Part V.

Enacts new Article 34 of GS Chapter 160A, the “Metropolitan Public Transportation Authority Act,” providing as follows.

Defines unit of local government as any county, city, town, or municipality of this state, and any other political subdivision, public corporation, authority, or district in this state, which is or may be authorized by law to acquire, establish, construct, enlarge, improve, maintain, own, and operate public transportation systems. Defines other terms used in the act.

Allows the creation of a metropolitan public transportation authority (authority) for any area of the state that, when it is created: (1) consists of a single county with a population greater than 1 million, (2) the county borders another state, and (3) the county includes at least one local government that operates a light rail system. Sets out the purpose of the authority as to finance, provide, operate, and maintain for a safe, clean, reliable, adequate, convenient, energy efficient, economically and environmentally sound public transportation system for the service area of the authority through the granting of franchises, ownership and leasing of terminals, buses and other transportation facilities and equipment, and otherwise through the exercise of the powers and duties conferred upon it, in order to enhance mobility in the region and encourage sound growth patterns. Such a service, facility, or function shall be financed, provided, operated, or maintained in the service area of the authority either in addition to or to a greater or lesser extent than services, facilities, or functions are financed, provided, operated, or maintained for the entirety of the respective units of local government. Allows the authority to take direct action to accomplish these purposes or to enter into agreements with another unit of local government in the service area of the authority or a private entity to accomplish these purposes.

Sets out the process under which a county’s board of commissioners may create such an authority via resolution, including requirements for public hearings and notice. Sets out what must be included in the resolution, including that an affirmative vote equal to at least 75% of the membership of the board of trustees is required to amend the articles of incorporation or to adopt or amend the authority’s bylaws.

Requires that the initial territorial jurisdiction of an authority be coterminous with the boundaries of the county that organized it; sets out additional parameters for the authority’s jurisdiction over local public passenger transportation.

Makes the board of trustees the governing body of an authority. Requires that the initial board of trustees be made up of 27 members, with members appointed by the board of commissioners of the county that created the authority, the governing body of the largest municipality in the county that created the authority, by the NCGA upon recommendation of the Senate President Pro Tempore and Speaker of the House, and the Governor. Members serve for four years, with half of the initial members serving two-year terms. Provides for initial terms for members appointed by the General Assembly. Requires members to have experience or qualifications in the areas of law, finance, engineering, public transportation, urban planning, logistics, government, architecture, or economic development, and requires members to live within the authority’s territorial jurisdiction. Provides for the election of officers. Prevents elected officials from serving concurrently as a member of the board of trustees. Bars lobbyists and their immediate family members from serving as members of the board of trustees. Prohibits members from serving more than two consecutive terms, but allows reappointment after being off of the board for at least two years.

Sets out the procedure under which the board of trustees and the board of commissioners of the affected county may expand the territorial jurisdiction and service area of an authority to include a whole county that is contiguous to the then-existing territorial jurisdiction of the authority. Sets out what must be included in the resolution authorizing the expansion.

Sets out provisions governing the board of trustees voting, removal from the board, and filling of vacancies. Allows the board of trustees to select advisory committees.

Set out limits on the service area of the authority, which is to be set by the board of trustees. Lists 27 general powers of the authority, including: (1) to purchase or finance real or personal property in the manner provided for cities and counties; (2) to surrender to the State or a unit of local government any property no longer required by the authority; (3) to make, enter into, and perform contracts with private parties and public transportation companies with respect to the management and operation of public passenger transportation; (4) to operate public transportation systems extending service into another state, but only if the extension of service is authorized by any applicable State or federal agency; and (5) to issue bonds or other obligations of the authority as provided by law and apply the proceeds thereof to the financing of any public transportation system or any part thereof and to refund, whether or not in advance of maturity or the earliest redemption date, any such bonds or other obligations of the authority or another municipality that financed or refinanced real and personal property for a public transportation system to be owned or operated by the authority.

Specifies that the Utilities Commission does not have jurisdiction over rates, fees, charges, routes, and schedules of an authority for service within its territorial jurisdiction. Makes an authority subject to GS Chapter 159 (Local Government Finance). Allows the state and local governments to appropriate funds to support the establishment and operation of the authority, and to dedicate, sell, convey, donate, or lease any of their property interests to the authority. Prohibits using the authority’s equipment from being used for charter, tour, or sight-seeing services except as allowed under regulations adopted by the Federal Transit Administration.

Specifies that the authority does not impact any existing franchises granted by a local government and that all ordinances and resolutions of the unit of local government regulating local public transportation systems, bus operations, and taxicabs continue in full force and effect unless superseded by regulations of the authority.

Sets out the process under which the board of trustees may terminate the authority. Allows the authority to issue bonds and notes under The State and Local Government Revenue Bond Act to finance public transportation systems and to refund such bonds and notes and to refund any bonds, notes, or other obligations of another municipality used to finance or refinance real and personal property for a public transportation system to be owned or operated by the authority.

Gives the authority the power to purchase equipment and execute agreements, leases, or equipment trust certificates. Sets out provisions governing the payment of such agreements, leases, or equipment trust certificates. Gives the authority power to acquire, by gift, grant, devise, exchange, purchase, lease with or without option to purchase, or any other lawful method, including the power of eminent domain, the fee or any lesser interest in real or personal property for use by the authority.

Exempts the authority’s real and personal property from taxation. Also exempts the interest on bonds or obligations issued by the authority from state taxation.

Gives the authority the power to require any public utility, railroad, or other public service corporation owning or operating any installations, structures, equipment, apparatus, appliances, or facilities in, upon, under, over, across, or along any ways on which the authority has the right to own, construct, operate, or maintain its public transportation system, to relocate such installations, structures, equipment, apparatus, appliances, or facilities, or, in the sole discretion of the affected public utility, railroad, or other public service corporation, to remove them. Sets out additional requirements when relocating these items. Requires compensation for any real estate taken, subject to a reduction in compensation due by the value of the property exchanged, and requires reimbursement for relocation or removal costs, according to the specified calculation.

Requires the authority to annually submit an operating report to the NCGA, including a report of its administrative expenditures and its audited financial reports. Alternates who is to receive the report.

Allows the authority to contract with a railroad to allocate financial responsibility for passenger rail services claims. Defines claim as a claim, action, suit, or request for damages, whether compensatory, punitive, or otherwise, made by any person or entity against: a. the authority, a railroad, or an operating rights railroad  or b. an officer, director, trustee, employee, parent, subsidiary, or affiliated corporation as defined in GS 105-130.2, or agent of: the authority, a railroad, or an operating rights railroad. Requires when such a contract is entered to that the authority secure and maintain a liability insurance policy covering the liability of the parties to the contract, a State-Owned Railroad Company that owns or claims an interest in any real property subject to the contract, and any operating rights railroad for all claims for property damage, personal injury, bodily injury, and death arising out of or relating to passenger rail services. Requires the policy to have limits of no less than $200 million per single accident or incident, and the policy may include a self-insured retention in an amount of no more than $5 million. Defines operating rights railroad as a railroad corporation or railroad company that, prior to January 1, 2001, was granted operating rights by a State-Owned Railroad Company or operated over the property of a State-Owned Railroad Company under a claim of right over or adjacent to facilities used by or on behalf of the authority. If such a contract is not entered into, requires the authority to maintain a liability insurance policy with policy limits and a self-insured retention consistent with the above, for all claims for property damage, personal injury, bodily injury, and death arising out of or related to passenger rail services. Deems the authority a city for purposes of civil liability and waives governmental immunity to a minimum of $20 million per single accident or incident and requires the authority to maintain a minimum of $20 million per single accident or incident of liability insurance.

Part VI.

Provides that if Mecklenburg County creates a metropolitan public transportation authority, then the authority is subject to the following. Requires the authority to study: (1) legal and financial considerations with respect to the transfer or use of assets from Charlotte or the Charlotte Area Transportation System (CATS) to the authority; (2) legal and financial considerations with respect to outstanding indebtedness issued by Charlotte with respect to CATS to ensure no adverse impacts in relation to the outstanding indebtedness; (3) legal and financial considerations with respect to agreements and recognitions by Charlotte or CATS with respect to the public transportation system with any federal, State, regional, or local governmental entities; (4) legal and financial considerations with respect to human resources of a transfer of assets, liabilities, and operations of the public transportation system from Charlotte or CATS to the authority, including issues related, but not limited, to employee pensions, retirement plans, and benefits; (5) a recommendation as to whether the transfer of assets, liabilities, and operations of the existing public transportation system to the authority is feasible and advisable; and (6) any other issue determined to be relevant by the authority. Requires the completion of the study and publication of a report by July 1, 2025; lists recipients of a copy of the report. Requires the authority to take specified actions no later than one year after the enactment of this act, related to: (1) adoption of bylaws; (2) establishing policies for Board governance; (3) creating a human resources plan; (4) developing financial policies; (5) developing operation policies; (6) developing an information technology plan; (7) creating a plan and timeline for acquiring the assets of CATS from Charlotte; (8) ensuring approval for the use, control, and acquisition of CATS assets; (9) drafting amendments to the interlocal agreement between the specified local governments, as specified; (10) drafting agreements or amendments to agreements with third parties that substitute the Authority for Charlotte as a party to ongoing contracts, agreements, rights, responsibilities, or liabilities; and (11) completing a value engineering study with respect to the Silver Line East (defined) mass transit light rail line. Specifies that the Authority is responsible for conducting or completing in a timely manner all environmental and economic studies required by State or federal law for public transportation projects.

Provides that if Mecklenburg enacts the tax under Part IV, discussed above, if that act becomes law, then the Authority and Charlotte must take the specified actions concerning receiving the tax proceeds, handling assets, handing of the existing CATS Revenue Reserve Fund, requiring the authority to make payments to Charlotte, and for the transfer of employees. Also sets out conditions under which specified interlocal agreement with respect to taxes would be terminated.

Provides that if Mecklenburg County creates a metropolitan public transportation authority under this act, then any service outside of the territorial jurisdiction of the authority offered as of the date that the authority assumes operational control of the assets of CATS may continue without the governing bodies of the applicable political subdivisions granting approval by majority vote for the continuation of the service.

If Mecklenburg County creates a metropolitan public transportation, as enacted by Part V of this act, then directs for two of the appointments made to be made upon the recommendation of the named the named tax exempt organizations.

Part VII.

Allows a municipality to include as revenues the receipts from any sales tax or other local tax received by a municipality in connection with its ownership and operation of a revenue bond project or a utility or public service enterprise facility or system of which a revenue bond project is a part as long as the pledge of such receipts does not constitute a pledge of the municipality's taxing power. Gives a municipality the authority to finance and refinance the cost of public transportation systems, facilities, or equipment with bonds or notes secured: (1) by the revenues of the public transportation systems, facilities, or equipment; (2) by pledge, mortgage, or grant of a security interest in all or a portion of the real and personal property, whether owned or leased, comprising the public transportation systems, facilities, or equipment; and (3) as otherwise provided in Article 5 of GS Chapter 159. Allows each municipality to secure bonds or notes by a pledge of all or any portion of the revenues of public transportation systems, facilities, or equipment without regard to meeting the expense and maintenance and operation of and renewals and replacements with respect to the revenue bond project. Limits the applicability of the provisions of this Part to cities with a population of greater than 870,000 according to the 2020 federal decennial census or any subsequent federal decennial census and metropolitan public transportation authorities created under Article 34 of GS Chapter 20, as created in this act.

Part VIII.

Amends GS 40A-3 by adding a metropolitan public transportation authority to those that have the power of eminent domain. Amends GS 105-164.14 by allowing a metropolitan public transportation authority an annual refund of sales tax paid on direct purchases of items. Amends GS 136-44.20 to include a metropolitan public transportation authority under provisions related to a State Full Funding Grant Agreement and the use of State funds for fixed guideway projects. Amends GS 136-44.27 by amending the use of funds in the Elderly and Disabled Transportation Assistance Program to include metropolitan public transportation authorities. Amends GS 143-129, concerning transportation authority purchases, to incorporate metropolitan public transportation authorities. Amends GS 143-157.1 to require appointments to metropolitan public transport authorities to be reported to the Secretary of State. Amends GS 153A-148.1 to allow disclosures of a taxpayer’s income to exchange information with a metropolitan public transportation authority. Amends GS 159-48 to allow metropolitan public transportation authorities to borrow money and issue bonds. Amends GS 159-81 by including metropolitan public transportation authority under the definition of municipality for Article 5, Revenue Bonds. Amends GS 160A-20, concerning security interests, to include a metropolitan public transportation authority under the statute’s definition of unit of local government.

Part IX.

States that it is the NCGA’s intent not to reduce transportation funding allocations for any municipality in Mecklenburg County as a result of this act or the levy of a tax under the act; and not to reduce State transportation funding for State projects located in Mecklenburg County as a result of the enactment of this act. Prohibits the Department of Transportation, without NCGA authorization, from reducing funding for any transportation projects as a result of this act, including the levy of any tax under the act.

Amends GS 163-22 adding new subsection (u) prohibiting the State Board, in educating voters, from using its role to recruit or encourage voters to associate with any political party over another or to influence voter turnout for a particular political party.

Amends GS 163-90.2(a) clarifying that the county board (was, board) must maintain a record of any cancellation or correction to voter registration of a voter following a sustained challenge for any cause under GS 163-85(c) for at least six months and during pendency of appeal. Adds exception to the general rule that a challenged ballot is to be treated as a provisional official that will still be counted for any ballot items the challenged voter is eligible to vote for a sustained challenge under GS 163-85(c)(6) that a person is dead. Declares that for challenges sustained under GS 163-85(c)(6) the ballot will not be counted if the voter died between the time the ballot was cast and 6:30 am on election day.

Amends GS 163-165.5(a)(4) adding that party designations must be printed in the same font type and size as the name of the candidate. Effective January 1, 2026, and applies to elections held on or after that date.

Amends GS 163-166.35(a) making technical changes by removing “of elections” following “county board” throughout. Adds requirement that each county board open at least one early voting site for every 30,000 registered voters, or any portion thereof, registered as of July 1st of the previous calendar year. Mandates the county board seek to provide geographic diversity when selecting site locations.

Amends GS 163-182.1(b)(1) making it the State Auditor’s responsibility to provide a process for selecting district or local ballot items to adequately sample the electorate when there is no statewide ballot item (was, the State Board). Removes the requirement that the State Board approve the procedure for randomly selecting the sample precincts for each election. Makes conforming changes.

Amends GS 163-182.2(a), as amended by Section 3A.4(e) of SL 2024-57, subdivision (4) adding a provision that counties with over 250,000 registered voters in an election have until no later than 5:00 pm on the fifth business day after the election to count provisional official ballots (was, the third business day as required for all other counties). Makes the technical changes to subdivision (5) including removing “of elections” following “county board” and formatting changes.

Amends GS 163-234, as amended by Section 3A.4(g) of SL 2024-57, subdivision (2) adding a reference to new subdivision (13). Adds those absentee ballots subject to new subdivision (13) to ballots exempted from the requirement that the tally of all absentee ballots be announced no later than 5:00 pm on the third business day after the election. Adds subdivision (13), which sets out the timeline for counting absentee ballots for counties with over 250,000 registered voters in an election as follows: (1) all absentee ballots received by the county board on the Monday before election day must be processed by 7:30 pm the day before election day; (2) the county board must count and report the results of all absentee ballots received before election day by 7:30 pm on election day; (3) the county board must report the number of absentee ballots received on election day by 7:30 pm on election day; and (4) for absentee ballots received on election day, the county board must count and report the results of those ballots no later than 5:00 pm on the fifth business day after the election.

Amends GS 163-230.1(e1), as amended by Section 3A.4(f) of SL 2024-57, requiring any container-return envelope with a curable deficiency transmitted to the county board to be considered timely if the cure documentation is received no later than 5:00 pm (was, 12:00 pm) on the fifth (was, third) business day after the election.

Amends GS 163-278.9 changing the title to include “State” so that it reads “Statements filed with State Board.” Requires a political committee, political party or affiliated party committee that receives a contribution or transfer of funds of $2,000 (was, $1,000) or more before an election but after the period covered by the last report due before that election to disclose within 48 hours. Adds a requirement that the State Board increase the dollar amount of the reporting threshold effective each election cycle beginning the period from January 1st of an odd-numbered year through December 31st of the next even-numbered year based on the Consumer Price Index in GS 163-278.13(b) and set the revised threshold in October of that even-numbered year. Sets additional publication and notice requirement of the revisions. Adds subsection (a1) prohibiting subdivision (a)(2), requiring the 48-hour report, from applying to any candidate campaign committee in a primary election in which the candidate is unopposed on the ballot.

Amends GS 163-278.9A concerning the 48-hour report requirement for treasurers of referendum committees by raising the contribution or transfer amount that must be reported within 48 hours of receipt from $1,000 or more to $2,000 or more when received during the period before a referendum but after the period covered by the last report due before that referendum. Adds the same requirement that State Board increase the dollar amount of the reporting amount as detailed above for the change in GS 163-278.9. Adds subsection (a1) prohibiting subdivision (a)(3), requiring the 48-hour report, from applying to any candidate campaign committee in a primary election in which the candidate is unopposed on the ballot.

Requires the State Board of Elections to adjust the thresholds imposed by GS 163-278.9(a)(2) and GS 163-278.9A(a)(3), as enacted, no earlier than October 1, 2025, effective for the election cycle beginning January 1, 2027.

Except as otherwise provided, act effective when it becomes law and applies to elections held on or after that date.

Section 1. 

Enacts GS 143-151.22, which requires the NC Code Officials Qualification Board (Board) to consult with the Office of State Fire Marshal (Office) to develop and implement a Building Inspector Apprenticeship Program. Provides intentions of program and requirements for its structure.

Allows local government inspection departments to employ apprentice Code-enforcement officials that do not yet have standard certification to perform inspections under the direct supervision of a fully certified Code-enforcement official with a standard certificate of the appropriate type and level. Requires the Board to adopt rules to establish the terms of the apprenticeship. Provides list of the minimum terms that should be included. Permits the Board to issue apprenticeship certificates to those employed as an apprentice if the employing jurisdiction applies for it and the apprentice actively participates in required training and continues to make satisfactory progress in the program. Provides details for renewal or reissuing the certificate. Provides curriculum requirements. Allows an apprentice to sit for the appropriate State examination for standard certification or to qualify certification once the individual has completed the approved curriculum and meets any experience requirements set by the Board.

Permits the Office to provide financial assistance to encourage participation in the apprenticeship program. Subject to the availability of funds appropriated for this purpose, the Office may award local governments grants to support a portion of apprentice salary and training expenses with details on eligible expenses. Requires the Office to establish grant application guidelines with priority given to jurisdictions demonstrating significant inspector staffing needs. Requires the Board to review rules and criteria for issuance of standard certificates at levels II and III to eliminate or modify requirements that unnecessarily impede progression of Code-enforcement officials to higher levels; provides list of considerations for the Board as part of this review. Requires the Board to report findings and recommended statutory or rule changes to the Joint Legislative Oversight Committee on General Government and the Fiscal Research Division by July 1, 2026. Clarifies that nothing in the statute will compromise State Building Code enforcement integrity and that apprentices cannot independently approve or sign off on Code compliance. Requires a supervising certified inspector to review and approve all inspections performed by an apprentice and places responsibility of decision on that supervisor.

Amends GS 143-151.13 adding an apprenticeship certificate issued pursuant to new GS 143-151.22 to the list of certificates that will permit a person to engage in Code enforcement. Adds new subsection (c1), to allow the Board to grant a standard certificate after successful completion of the Building Inspector Apprenticeship Program in lieu of the standard examination requirement so long as the individual also successfully completes a Board-approved competency evaluation. Requires the Board to establish rules governing the development, administration, and standards for passing such competency evaluation.

Appropriates $750,000 for 2025-26 from the General Fund to the Office of State Fire Marshal in the Department of Insurance, to establish and administer the Building Inspector Apprenticeship Program. Requires funds be used for program administration, coordination, and provision of training resources and local grant funds as described in GS 143-151.22(c) and (d). Requires the Department of Insurance to include an evaluation of program’s effectiveness, participation rates, impact on inspector availability, and recommendations for future funding needs in its annual budget request submitted to the Office of State Budget and Management and in any relevant reports to the Joint Legislative Oversight committee on General Government and the Fiscal Research Division. Effective July 1, 2025.

Permits Board, Office, and Department of Insurance to adopt rules necessary to implement the statute's provisions.  

Except as indicated above, effective October 1, 2025.

Section 2.

Enacts GS 143-151.23 requiring the Board to consult with the NC Licensing Board for General Contractors and the Office to develop and implement the General Contractor to Inspector Transition Incentive Program. Provides purpose of the program. Requires an individual to, at a minimum, (1) hold a current, valid license in good standing issued by the NC Licensing Board for General Contractors and any specific license classifications or experience levels suitable for transition as the Board may define in rules; (2) satisfy all general eligibility requirements for employment as a Code-enforcement official established by the employing jurisdiction and the Board; and (3) meet all prerequisites for obtaining certification as required by the Board, except as specifically modified for program participants to participate in the program.

Requires the program to incorporate incentives to facilitate the transition of eligible general contractors and provides a list of suggested incentives that includes recognition of experience, tailored training and assessment, direct eligibility for level II certification, expedited progression from level II to level III, and maintains competency standards. Provides details on each incentive listed and clarifies that the incentives provided are not limited to those listed. Requires the Board and Office to collaborate with the NC Licensing Board for General Contractors and relevant construction industry associations to promote awareness of the program and opportunities in Code enforcement among licensed general contractors. Mandates that the Board adopt rules necessary to implement these statutory provisions. Clarifies that nothing in this statute lowers the standards of competency required for Code-enforcement officials and that every program participant must meet qualification standards set by the Board for the applicable level of certification prior to independently performing Code enforcement duties that require it. Effective October 1, 2025.

Section 3.

Enacts GS 153A-100 which provides building inspector disciplinary procedures. Defines “building inspector” as any individual employed or contracted by the county who holds a valid certification issued by the Board and who is authorized by the county to enforce at least one provision of the State Building Code. Requires just cause finding to discharge, suspend, or demote a building inspector employed by a county pursuant to GS 153A-351 for disciplinary reasons. Requires the county to adopt rules or personnel policies defining “just cause.” Provides an emergency suspension exception where conduct presents an imminent threat to public safety or property, or results in significant disruption to county operations that align with the county’s definition of just cause. Provides procedural details to implement the immediate suspension. Provides procedural safeguards that a county’s personnel policy or procedure must include, at minimum, for any disciplinary dismissal, demotion, or suspension of a building inspector aside from the emergency suspension. Permits each county to adopt supplementary personnel policies and procedures governing the discipline and removal of building inspectors beyond the minimum requirements of this statute.

Enacts GS 160A-170 which provides building inspector disciplinary procedures for inspectors employed by the city. Identical to those definitions, requirements, exceptions, procedures, and local flexibility preservation detailed above for counties.

Effective July 1, 2026, and applies to disciplinary actions initiated on or after that date.

Section 4. 

Amends GS 160D-1113 making technical changes to provide formatting for subsections' structure. Adds new subsection (b), which makes approval of any component or element of construction after inspection by a local inspector as compliant with State Building Code and applicable law binding and final as to the Code requirements for that stage of construction. Any subsequent inspections cannot require uncovered re-inspection, alteration, dismantling, or removal of the approved component or element and an inspector or inspection department cannot rescind or withhold approval for the component or element, unless one of the excepted conditions applies, which includes a material change in code requirements requiring retroactive compliance; discovery that approval was issued on the basis of false or misleading information, misrepresentation, or fraud that, if known at the time, would have led to withholding of approval; discovery of a concealed defect that results in noncompliance or presents a safety hazard; or subsequent damage or alteration to the approved component or element.

Effective October 1, 2025, and applies to building permits applied for on or after that date.

Section 5. 

Provides purpose of this statute to create a dedicated fund to support Tier 1 and Tier 2 counties in increasing building code inspection capacity after a disaster.

Defines seven terms for the purposes of this statute , which include: (1) county tier system; (2) disaster; (3) eligible county (county designated as a tier 1 or tier 2 county at the time of the disaster declaration); (4) eligible costs; (5) OSFM (Office of State Fire Marshal); (6) Tier 1 county; and (7) Tier 2 county.

Establishes the Disaster Inspection Relief Fund (Relief Fund) as a special fund in the Department of Insurance administered by OSFM to provide financial assistance grants to eligible counties for the purpose of hiring additional building code inspectors to support disaster recovery efforts.

Permits funds in the Relief Fund to become available for application by eligible counties upon Governor’s declaration of a state of emergency or disaster pursuant to Chapter 166A impacting one or more eligible counties.

Permits use of funds only for eligible costs incurred to increase building code inspection capacity in response to the declared disaster and prohibits use of the fund to supplant existing local funding for Code enforcement activities that were budgeted prior to the disaster.

Details county match requirements and percentages for funds disbursed from the Relief Fund.

Details the OSFM application and award process. Requires OSFM to prescribe the application form and sets minimum requirements for the application information and documentation. Requires OSFM to review applications based on demonstrated need, severity of disaster impact on the county, feasibility of the county’s plan, and compliance with this statute. Permits awards to be given on an expedited basis to ensure timely inspection services are available. Sets out prioritization parameters in the event that available funds are insufficient to meet needs of all qualified applicants.

Requires OSFM to report on administration and use of the Relief Fund to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division with an initial report no later than 90 days after the first grant is awarded from the Relief Fund following a disaster declaration and subsequent reports annually by November 1st. Sets out information to be provided in each report.

Authorizes OSFM to develop guidelines, procedures, and application forms to implement the statute's provisions.

Section 6. 

Authorizes an individual with a standard certificate as a Code-enforcement official with level I building qualification to conduct inspections on small residential buildings (up to three stories high with no more than four dwelling units) and small nonresidential buildings (one story high and not exceeding 20,000 square feet in gross floor area that are classified under the state building code as Business, Mercantile, Factory-Industrial, Storage or Utility/Miscellaneous occupancies).

Requires the Board to adopt rules substantively identical to the above. These rules are not subject to Part 3 of Article 2A of Chapter 150B and will become effective as though 10 or more written objections had been received under GS 150B-21.3(b2). Mandates that the Board and local governments follow the provisions above until the effective date of the rules the Board is required to adopt pursuant to this statute.

Expires when the permanent rules become effective.

Adds new Part 4, Uniform Partition of Heirs Property Act, to Article 2 of GS Chapter 46A, providing as follows. Defines heirs property as real property held in tenancy in common that satisfies all of the following as of the filing of a partition proceeding: (1) there is no agreement in a record binding all the cotenants which governs the partition of the property; (2) one or more of the cotenants acquired title from a relative, whether living or deceased; and (3) 20% or more of the interests are held by cotenants who are relatives, 20% or more of the interests are held by an individual who acquired title from a relative, or 20% or more of the cotenants are relatives. 

Requires a court, in a proceeding to partition real property under Article 2of  GS Chapter 46A to determine whether the property is heirs property; if such a determination is made, then the property must be partitioned under this Part unless all of the cotenants agree otherwise in a record. Sets out the procedure for notice by posting when a petitioner in a partition proceeding seeks authorization for notice by publication and the court decides that the property may be heirs property. Requires any commissioners appointed to partition the property by the court to be disinterested and impartial and not a party to or a participant in the proceeding.

Requires the court, if it determines that the property that is the subject of a partition proceeding is heirs property, to determine the fair market value of the property by ordering an appraisal. Requires the court, however, to adopt a valuation or use another method of valuation when it has been agreed to by all cotenants. Provides that if the court determines that the evidentiary value of an appraisal is outweighed by the cost of the appraisal, the court must determine the fair market value of the property, after an evidentiary hearing, and order the petitioner to send notice to the parties. Sets out the procedure to be followed when an appraisal is conducted.

Requires the court, when any cotenant requested partition by sale, after the determination of value, to send notice that any cotenant except one requesting partition by sale, may buy all of the interests of the cotenants making the request. Allows any cotenant, except the one requesting partition by sale, to give notice to the court no later than 45 days after the notice is sent stating that they elect to buy all interest of the cotenant requesting partition by sale. Sets out the process for determining the purchase price. Sets out procedures that apply at the end of the 45 days, varying based on how many of the cotenants (including, none) elect to buy the interests of the cotenant requesting partition by sale, including setting deadlines by which the electing cotenants must pay their apportioned price. Allows a cotenant who is entitled to buy an interest to request, no later than 45 days after the court sends notice to the parties, that the court authorize the sale as part of the pending proceeding of the interests of cotenants named as respondents and served with the complaint but that did not appear in the proceeding; allows the court to deny the request or authorize the requested additional sale on fair and reasonable terms, subject to the stated limitations.

Provides that when all the interests of all cotenants that requested partition by sale are not purchased by other cotenants, or if, after conclusion of the buyout, a cotenant remains that has requested partition in kind, the court must order partition in kind unless the court, after consideration of all seven listed factors, finds that partition in kind will result in substantial injury to the cotenants as a group. Requires that when the court does not order partition in kind, the court must order partition by sale or, if no cotenant requested partition by sale, the court is required to dismiss the proceeding. Sets out the processes to be followed when the court orders partition in kind.

Requires that when the court orders a sale of heirs property, the sale must be an open-market sale unless the court finds that a sale by sealed bids or an auction would be more economically advantageous and in the best interest of the cotenants as a group. Sets out the procedures to be followed for an open-market sale, including the appointment of a real estate broker when one is not agreed upon; procedures to be followed depending on whether or not the broker receives an offer to purchase in a reasonable time; and requirements for the broker to report to the court. Sets out requirements for when the court orders a sale by sealed bids or an auction.

Provides that in applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. Sets out how this new Part relates to the Electronic Signatures in Global and National Commerce Act.

Makes conforming changes to GS 46A-26.

Applies to petitions for partition filed on or after January 1, 2026.

Amends GS 131E-101 by deleting the definition for community advisory committee and adding a new definition for volunteer nursing home ombudsman representative (a volunteer designated by the Office of the State Long-Term Ombudsman in accordance with GS 131E-128 to work toward maintaining the intent of the Nursing Home Patients' Bill of Rights within the nursing homes in North Carolina, including nursing homes operated by hospitals licensed under Article 5 of Chapter 131E).

Amends GS 131E-102(e), GS 131E-117(12), GS 131D-2.4(e) to replace references to “community advisory committee” with references to “volunteer nursing home ombudsman representative.”

Amends GS 131E-128 by changing the title to “Volunteer nursing home ombudsman representatives” (was, “Nursing home advisory committees”) and makes other changes to the statute to remove references to nursing home advisory committees and replace them with requirements regarding volunteer nursing home ombudsman representatives.

• Encourages each board of county commissioners with at least one nursing home operating in the county to nominate volunteer ombudsman representatives. Provides that designation as a volunteer ombudsman representative is contingent upon designation of the nominee by the Office of the State Long-Term Care Ombudsman (the “State Office”) in accordance with GS 143B-181.18.
• Provides that a volunteer ombudsman representative serves for as long as he or she remains in compliance with training, certification, and other applicable requirements of the State Office, unless the representative’s designation is removed by the State Office. Requires a list of names of all designated volunteer ombudsman representatives and expiration dates of their terms to be filed with the State Office, which must provide the Division of Health Service Regulation with a copy of such names.
• Establishes minimum qualifications that a nominee must meet to be designated as a volunteer ombudsman representative by the State Office.
• Provides that any county commissioner serving as a volunteer ombudsman representative shall be deemed to be serving in an ex officio capacity.
• Requires that volunteer ombudsman representatives serve without compensation, but allows them to be reimbursed for actual expenses incurred in the performance of their duties.
• Requires the State Office to develop training requirements for certification and designation of volunteer ombudsman representatives in accordance with 45 C.F.R. 1324.13(c)(2). Requires each volunteer ombudsman representative to complete such training prior to exercising statutory powers and duties.
• Establishes powers, duties, and responsibilities for volunteer ombudsman representatives (reflecting the powers, duties, and responsibilities previously assigned to community advisory committees and their members under this subsection, except removes the responsibility to quarterly visit nursing homes).
• Revises subsections regarding privilege for written communications and waiver of qualified immunity that previously applied to nursing home advisory committee members to now apply to volunteer ombudsman representatives.

Amends GS 131D-31 by changing the title to “Volunteer adult care home ombudsman representatives” (was, “Adult care home community advisory committees”) and makes other changes to the statute to remove references to adult care home community advisory committees and replace them with requirements regarding volunteer adult care home ombudsman representatives.

• Encourages each board of county commissioners with at least one licensed adult care home operating in the county to nominate volunteer ombudsman representatives. Provides that designation as a volunteer ombudsman representative is contingent upon designation of the nominee by the State Office in accordance with GS 143B-181.18.
• Prohibits dual designation of an individual as a volunteer ombudsman representative under GS 131E-128 (nursing homes) and a volunteer ombudsman representative under this section (adult care homes) unless the State Office provides written approval to combine these functions.
• Provides that a volunteer ombudsman representative serves for as long as he or she remains in compliance with training, certification, and other applicable requirements of the State Office, unless the representative’s designation is removed by the State Office.
• Requires a list of names of all designated volunteer ombudsman representatives and joint nursing and adult care home volunteer ombudsman representatives, along with expiration dates of their terms, to be filed with the State Office, which must provide the Division of Health Service Regulation with a copy of such names.
• Establishes minimum qualifications that a nominee must meet to be designated as a volunteer ombudsman representative by the State Office.
• Provides that any county commissioner serving as a volunteer ombudsman representative shall be deemed to be serving in an ex officio capacity.
• Requires that volunteer ombudsman representatives serve without compensation, but allows them to be reimbursed for actual expenses incurred in the performance of their duties.
• Requires the State Office to develop training requirements for certification and designation of volunteer ombudsman representatives in accordance with 45 C.F.R. 1324.13(c)(2). Requires each volunteer ombudsman representative to complete such training prior to exercising statutory powers and duties.
• Revises subsections regarding privilege for written communications and waiver of qualified immunity that previously applied to adult care home advisory committee members to now apply to volunteer ombudsman representatives.

Amends GS 131D-32 to establish the powers and duties of volunteer adult care home ombudsman representatives. Reflects the same powers and duties previously assigned to adult care home advisory committees and their members under GS 131D-32, but removes the responsibility to quarterly visit certain adult care homes and to develop and recruit volunteer resources. Requires that volunteer adult care home ombudsman representatives must give notice to the administrator of an adult care home prior to entering the home. Clarifies that when a volunteer ombudsman representative visits a group home for developmentally disabled adults, rules concerning confidentiality as adopted by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services apply.

Makes conforming changes to GS 131D-2.4, concerning licensure, GS 143B-181.18, regarding the duties of the State Ombudsman, to include designation, suspension, and removal of volunteer ombudsman representatives. Makes conforming changes to GS 143-157.1(d) by repealing (2) and (21), which refer to adult care home community advisory committees.

Effective October 1, 2025.

Amends GS 115C-366 to include reference to a student attending public schools where a student is accepted, in addition to assigned. Includes a reference to the requirements of new GS 115C-366.5.

Enacts GS 115C-366.5 (Open enrollment), which outlines the procedure for a parent or guardian to request their student be enrolled in any school in the local school unit where they are domiciled. Requires local boards of education to adopt open enrollment plans, and sets minimum requirements for the plans, including an application process with two periods of enrollment, a process for declaring school preferences, a lottery procedure for schools that are beyond capacity, and availability of transportation. Specifies that if a student is registered at a school under the statute, they are allowed to continue attending the school without participating in open enrollment unless voluntarily unenrolled from the school. Requires local school administrators to publish the capacity of each school and maintain a waitlist. Clarifies that a local board of education is not required to establish or offer programs at schools where they are not currently offered or alter or waive eligibility criteria for existing schools. Permits local school administrators to deny enrollment under certain circumstances, including if the school does not offer appropriate programs, the student does not meet the criteria for enrollment, the school is subject to a desegregation plan, or the student has been suspended or expelled. Outlines an appeal process for denied enrollment, including appeal to the local board of education, and a subsequent appeal to the State Board of Education.

Directs the State Board of Education to adopt rules implementing the open enrollment appeals process.

Effective and applicable beginning with the 2025-2026 school year.

Section 1

Amends GS 90-94.1 changing “hemp extract” to “cannabis” throughout, including in the statute’s title. Removes subsection (a), which provided a definition of “hemp extract.” Adds subsection (a1) defining cannabis so that it has the same meaning as marijuana. Permits an individual to possess or use cannabis with no penalties if the individual satisfies all of the following: (1) possesses or uses it as a registered research study participant, as defined in GS 90-113.161, provided the quantity of usable cannabis possessed does not exceed an adequate supply; (2) possesses a written certification, as defined in GS 90-113.161, close to the cannabis; and (3) is a caregiver, as defined in GS 90-113.161 (was, permission for a caregiver to possess or use hemp extract to treat intractable epilepsy with a certificate of analysis indicating the ingredients with percentages as listed). Permits a caregiver as defined in GS 90-113.161 (was, GS 90-113.101), in lawful possession of cannabis (was, hemp extract), to administer it to another person under their care without penalty. Requires an individual possessing cannabis (was, hemp extract) under this statute to dispose of any unused portions (was, all residual oil from the hemp extract) at a secure collection box.

Section 2

Adds new article, Article 5I, to Chapter 90, the North Carolina Cannabis Treatment Research Act. Gives purpose of act.

Enacts GS 90-113.161, which defines the following: (1) cannabis; (2) caregiver; (3) database; (4) Department (Department of Health and Human Services); (5) patient; (6) Physician; (7) registered research study; (8) research institution; and (9) written certification.

Enacts GS 90-113.162, which requires the Department to create a secure and electronic Cannabis Treatment Research database registry for registration of research institutions, physicians, caregivers, and patients. Requires caregivers to register with the Department. Authorizes law enforcement agencies to contact the Department to confirm a caregiver’s registration. Lists the caregiver information the caregivers must supply for the database. Makes it a research institution’s responsibility to update the Department if caregiver or patient contact information changes for studies they are conducting.

Enacts GS 90-113.163, which permits research institutions to approve dispensing cannabis acquired from another jurisdiction to a registered caregiver on a case-by-case basis. Requires institutions that approve of dispensation to a caregiver to inform them of the disposal requirements detailed above. Provides immunity for research institutions and employees for the use of cannabis pursuant to this article. Mandates that identities of caregivers, patients, and research institutions reported to the Department are confidential, except that information may be provided to law enforcement agencies under GS 90-113.162.

Enacts GS 90-113.164, titled the NC Cannabis Research Program. Provides intent of NCGA to allow any physician providing written certification to a patient to participate in objective scientific research with registered persons regarding the administration of cannabis as part of medical treatment. Lists possible scientific research to be conducted under this Article. Provides immunity for research institutions, physicians, and registered persons to conduct research.

Section 3

Contains a severability clause.

Section 4

Effective July 1, 2025, and applies to offenses committed on or after that date.

Enacts GS Chapter 17C, Article 3 (North Carolina Police Leadership Fellows Program), and provides definitions for the Article. Establishes the 10-member North Carolina Police Leadership Fellows Committee as a special committee of the North Carolina Criminal Justice Education and Training Standards Commission in GS 17C-31. Outlines the membership of the committee, terms of office, meeting schedule and vacancy procedures.

Establishes the Police Leadership Fellows Program goal of increasing criminal justice professionals by providing forgivable loans for bachelor’s degrees from constituent institutions of the UNC System in criminal justice and related fields selected by the committee in GS 17C-32. Outlines the administration of the program and the procedure for awarding forgivable loans, up to a maximum of $20,000 per recipient. Requires at least 50 recipients each year, with a cap of 100. Creates eligibility criteria, including residency in the state and lack of criminal history, and an application process. Specifies that the committee must adopt standards for awarding the loans based on scholastic profiles and potential for excellence in criminal justice provisions. Provides the obligations for recipients, including maintaining enrollment and a minimum 2.0 GPA in appropriate credit hours for the required degree. Requires the program administrator and committee to report to the Joint Legislative Oversight Committee on Justice and Public Safety no later than January 1, 2027, and annually thereafter on the number of loans awarded, student performance, employment, forgiveness and termination of loans, and retention rates of recipients in the criminal justice profession.

Specifies the terms of the forgivable loans in GS 17C-33. Caps interest rates for loans at 10%. Provides that loans and interest will be forgiven if the recipient is employed on a full-time basis for a period of at least eight years in an eligible criminal justice profession. Allows for extensions and conditions of repayment if the recipient decides to forego criminal justice employment. Provides default terms and procedures if the recipient does not comply with the terms of the program.

Effective July 1, 2025.

Amends GS 42-46 by adding a new subsection (b1), requiring landlords (lessors) to provide written notice to tenants (lessees) prior to collecting a late fee authorized under GS 42-46(a). Specifies requirements for the method of delivery and contents of the late fee notice. Becomes effective October 1, 2025, and applies to late fees imposed on or after that date.

Amends GS 93A-62 (concerning delinquent assessments of timeshares), as follows. Expands the events tolling the time upon which a lien against a timeshare expires to include filing a foreclosure action. Makes clarifying changes. Specifies that for a timeshare trustee foreclosure brought pursuant to GS 93A-62, the managing entity or the holder of the lien is entitled to recover its costs, including reasonable attorney's fees and trustee's fees. Instructs that in the event of a timeshare trustee foreclosure, owners who do not object to use of the timeshare trustee foreclosure procedure are not subject to a deficiency judgment even if the proceeds from the sale of the timeshare are insufficient to offset the amounts secured by the lien, and any successor to the owner that acquires title to a timeshare as a result of a timeshare trustee foreclosure under GS 93A-62.1 are exempt from liability for all unpaid assessments attributable to the timeshare or chargeable to the previous owner that came due prior to acquisition of title by the successor. Makes conforming changes to account for new GS 93A-62.1, discussed below.

Enacts GS 93A-62.1, providing, as an alternative to judicial foreclosure, a simple and inexpensive method of enforcing payment of assessments, to the knowledge of all persons, based upon the General Assembly’s recognition, that in authorizing this timeshare trustee foreclosure proceeding, that all persons owning a timeshare know or should know that the assessment lien on their timeshare may be foreclosed and the timeshare sold for failure to pay assessments. Provides for a notice of lien and trustee foreclosure to be attached to a lien under GS 93A-62 and for the filing of that lien with the clerk of superior court. Requires, by no less than fifteen days prior to filing a claim of lien, for the managing entity or the holder of the lien to mail a statement of the assessment amount due by first-class mail to the owner's address as recorded in the books and records of the timeshare program. Provides for mailing to a corporation or LLC. Requires the managing entity or the holder of the lien to make diligent efforts to ensure that its records contain the unit owner's mailing address.  

Allows for foreclosure no sooner than two years since the indebtedness described in the claim became due and after filing the claim of lien by having the managing entity, holder of the lien, or designated trustee file a certificate, that has been signed and sworn to or affirmed before a notary public, with the clerk of the superior court, showing the following: (i) the record owner of the timeshare on which there is a lien for unpaid assessments, together with the amount of assessments, including taxes, penalties, interest, and costs that are covered by the lien, (ii) the year or years for which the assessments are due, (iii) a description of the timeshare sufficient to permit its identification by parol testimony, and (iv) the filing information for the claim of lien if previously filed with the clerk of the superior court. The fees for docketing and indexing of the certificate assessed are payable to the clerk of the superior court at the time the assessments are collected or the timeshare is sold.

Requires the managing entity, holder of the lien, or designated trustee filing the certificate to, at least 30 days prior to docketing the judgment, send notice of the assessment lien foreclosure to the owner in the same manner as a claim of lien to the owner at the owner's known address as recorded in the books and records of the timeshare program and to all lienholders with liens that have attached after the effective date of the timeshare claim of lien, as described. Provides for notice by publication if no return receipt or delivery confirmation is received after the mailing of the notice of foreclosure. Provides for assessment of costs of mailing and publication plus an additional $250 charge to be added to the amount of assessments that are a lien on the timeshare.

Specifies that immediately upon the docketing and indexing of a certificate, the assessments, including taxes, penalties, interest, and costs, constitute a valid judgment against the timeshare described in the judgment with the priority provided for claims of lien in GS 93A-62, with the same force and effect as a duly rendered judgment of the superior court  directing sale of the timeshare for the satisfaction of the assessment lien bearing interest at an annual rate of 8%. Provides certification to the clerk if the judgment is paid.

Requires sale of the timeshare at public auction, as described, at any time after 30 days and before one year from the indexing of the judgment at the request of the managing entity or holder of the lien. Instructs that a sale conducted under this statute releases the owner from liability for all amounts secured by the lien. Clarifies that the managing entity or holder of the lien have no right to a deficiency judgment against the owner after a sale of the owner's timeshare under this statute. Provides for a certificate of compliance, as described, to be executed and filed with the clerk within 10 days after the trustee sells the timeshare as described above. At least 10 calendar days after a sale conducted under this statute, absent the prior filing and service on the trustee of a judicial action to enjoin issuance of the trustee's deed to the highest bidder, requires the trustee to issue a trustee's deed to the highest bidder and record the trustee's deed in the public records of the county in which the timeshare is located. Directs the trustee to distribute the sale proceeds in four areas, including the amount owed and set forth in the notice of sale.

Specifies that the certificate of compliance and the trustee's deed together are presumptive evidence of the truth of the matters set forth in them, and action to set aside the sale and void the trustee's deed may not be filed or otherwise pursued against any person acquiring the timeshare interest for value. The issuance and recording of the trustee's deed is presumed valid and may be relied upon by third parties without actual knowledge of irregularities in the foreclosure proceedings.

Authorizes a managing entity, holder of the lien, or designated trustee may combine the claim of lien, certificate, notice of sale, certificate of compliance, published notices and other documents part of the timeshare trustee foreclosure procedure against timeshares of different owners if specified criteria are met.

Specifies that a claim of lien securing a debt consisting solely of fines imposed by the managing entity, interest on unpaid fines, or attorneys' fees incurred by the managing entity solely associated with fines imposed by the managing entity may be enforced by judicial foreclosure, as provided in Article 29A of GS Chapter 1 of the General Statutes. In addition, directs that any claim of lien securing a debt consisting solely of service, collection, consulting, or administration fees may only be enforced by judicial foreclosure, as provided in Article 29A of GS Chapter 1.

Specifies that all foreclosure proceedings commenced by a managing entity or holder of the lien before October 1, 2025, and all sales and transfers of real property as part of those proceedings pursuant to this GS Chapter, GS Chapter 47A, or provisions in a timeshare declaration are declared to be valid unless an action to set aside the foreclosure is started by October 1, 2025, or within one year after the date of the foreclosure sale, whichever occurs last.

Applies to claims of lien filed on or after the act becomes law.

Amends GS 143C-4-6 to lower the cap on the General Fund operating budget each fiscal year from 7% to 6% of the projected total State personal income for that fiscal year. Adds new GS 143C-4-6(a1) to provide that funds in excess of the budget size limitation may be expended upon a two-thirds vote of the members of the Senate and House present and voting. Effective July 1, 2025, and applicable to budgets adopted on or after that date.

Section 1.

Enacts new Article 11, Video Gaming Terminals in GS Chapter 18C, providing as follows.

Part 1, General Provisions

Sets out and defines terms as they are used in Article 9. Defines video gaming terminal as a device operated under the authority of the North Carolina State Lottery Commission (Commission) that is exempt under GS 14-306.1A (setting out the types of machines and devices prohibited by law) and is any electronic computerized video game machine that, upon the insertion of cash or a lottery share, is available to play a video gaming game authorized by the Commission and which uses a video display and microprocessors in which, by chance, the player may receive free games or credits that can be redeemed for cash; excludes a device that directly dispenses coins, cash, or tokens. Defines video gaming games as electronically simulated games of chance that are displayed and played on permitted video gaming terminals and approved by the Commission. Defines Operator as a person licensed by the Commission who owns, leases, or otherwise controls a video gaming terminal for which a video gaming terminal permit has been issued by the Commission. Defines video gaming merchant (Merchant) as a person licensed by the Commission who also holds a valid ABC permit (as described), is not primarily in the business of offering video gaming terminals and with whom an operator has contracted to allow placement of video gaming terminals for wagering and payment of winnings and payment of cash prizes for video gaming games in accordance with this Article.

Requires, in GS 18C-1102 the Commission to determine that video gaming games are a type of lottery game in this State and requires licensing Operators and Merchants to operate video gaming games for play by the public. Deems the playing of video gaming games a share (any method of participation in a lottery game, other than by a ticket purchased on an equivalent basis with a ticket) for the purposes of GS Chapter 18C, exempt from GS 18C-131(c), which sets the minimum retail price of each ticket or share in any lottery game at 50¢. Requires playing to be only on video gaming terminals that have a valid video gaming terminal permit. Prevents video gaming terminals (Terminals) from being placed on property owned or controlled by a governmental entity. Requires Terminals and associated equipment to be connected to a central monitoring system at all times during play, and as otherwise determined by the Commission.

Authorizes each Operator to operate up to three Terminals per location, with the possibility of licensure for an additional three Terminals if benchmarks established by the Commission are met. Specifies that Terminals must comply with the four listed criteria, including that it be located in a building that is more than 1,000 feet away from a church, public school, and nonpublic school, unless the church or school locates within 1,000 feet of the merchant after it began using the premises for Terminals. Requires Operators to do the following in relation to their Terminals; (1) acquire Terminals and associated equipment from licensed Manufacturers and (2) contract with Merchants for placement of Terminals for play by the public, on a contract form prescribed by the Commission.

Requires the Commission, in GS 18C-1103, to determine play of video gaming games that address procedures for monitoring, collection, and remittance of net machine revenue from the games, in conformity with the following: (1) transfers no less than 32% of the total net machine revenues to the North Carolina Video Gaming Fund (Fund); (2) allocates 8% of the total net revenues for the Commission’s listed annual administrative and enforcement expenses; and (3) allocates 30% of the net machine revenues to operators and 30% to video gaming merchants.

Establishes the Fund in the State treasury in GS 18C-1104 that consists of the transfer of net machine revenues as described above, unclaimed prizes, licensing fees collected by the Commission, and any interest earned on those funds. Requires the NCGA to appropriate money in the Fund annually in the Appropriations Act based on estimates of net machine revenue from video gaming terminals to the Fund. Specifies that a security interest is not granted in any funds appropriated under GS 18C-1104.

Part 2. Licenses and Permits

Enacts GS 18C-1110, requiring a video gaming permit to be affixed to every Terminal prior to play, representing that the machine has been registered, inspected, and approved for operation. Requires the Commission to issue video gaming terminal permits based on the number of approved Terminals registered with the Commission, with the initial permit valid for two years, and each successive permit annually renewed thereafter.  Makes it illegal for anyone other than authorized Commission personnel to affix or remove a permit. Requires the terminal and associated equipment’s software and hardware to be compatible with the Commission's central monitoring system and requires the games installed on the video gaming terminal to be approved by the Commission before a permit may be issued. Terminals that do not display the permit are illegal and subject to confiscation.

Requires a license under GS 18C-1114 to manufacture, operate or serve, or place for play by the public any video gaming terminal. Sets out qualifications for licensure as well as disqualifications for licensure. Requires a background check of the applicant, including each partner, director, officer, and all stockholders of 5% or more of any business entity, except for institutional investors. Prohibits an Operator from giving anything of value, including a loan or a financing arrangement, to any Merchant as an incentive or inducement to locate video gaming terminals in a specific location. Requires the Commission to adopt additional rules governing the exchange of gifts, loans and other financing arrangements, gratuities, special discounts, favors, hospitality, or service between licensees. Allows licenses to be revoked for cause.

Prohibits advertising of video gaming games and Terminals, as specified in GS 18C-1115. Limits cash awards on individual wagers to $1,199. Provides signage and notice at each Terminal location, including information on gambling addiction. Specifies that all winnings are subject to State income tax.

Caps the fee that may be charged for a license application for renewal at $250 and allows charging the cost of the criminal and financial record check in GS 18C-1120. Sets the fee schedule for the actual licenses as follows: $150,000 for Manufacturers ($100,000 to renew); $250,000 for Operators, plus $150 per Terminal in each location ($100,000 to renew, plus the same Terminal fee); and $1,500 per retail location for Merchants ($1,000 per location to renew). Allows license to be transferred or assigned. Initial licenses are good for two years, renewals for one year.

Specifies, in GS 18C-1122, that a Manufacturer, Merchant, or Operator or any affiliate company, employee, beneficiary, stockholder, officer, director, member, partner, or immediate family member of a manufacturer, is ineligible for a license under the Article other than the one held. Sets out requirements to be met when contracting for a central monitoring system. Requires the Commission to strive to have no less than five manufacturers licensed and no less than 12 operators licensed in the State at all times.

Sets out duties of video gaming license holders including reporting and recording keeping requirements in GS 18C-1124.

Part 3. Video Gaming Terminals

Requires Terminals to have a terminal permit and be placed with a video gaming merchant for play in GS 18C-1130. Requires Operators to provide the Commission with the location of each Terminal and information on the merchants where the Terminals are located. Requires game software to be certified by an independent testing lab. Prohibits the Commission from limiting licensure or connection to the central monitoring system to one type of gaming Terminal, one manufacturer, or one operator.

Requires the Commission to contract for a central monitoring system from a supplier of central monitoring systems in GS 18C-1132. Sets out requirements for the central monitoring system.

Specifies that no person can sell a share for play of a Terminal to a person under the age 21 nor can a person under age 21 purchase a share for play of a Terminal or otherwise play a Terminal in GS 18C-1134. Prohibits Terminals from allowing more than the amount set by the Commission to be played in a single wager. Requires the odds of winning to be posted on or near each terminal. Requires the Commission to establish a voluntary exclusion program for any individual to voluntarily exclude themselves from playing video gaming games in GS 18C-1135. Specifies that the voluntary exclusion program is confidential and exempt from State public records law. Only authorizes licensees to share such information with its agents and affiliates in other states to exclude individuals participating in the voluntary exclusion program.

Requires a person transporting a Terminal from one gaming merchant’s establishment to another location, to give written notice to the Commission before transporting the Terminal in GS 18C-1136.

Part 4. Enforcement

Gives the Commission sole regulatory and administrative authority of this Article. Tasks the Department of Public Safety (DPS), Alcohol Law Enforcement Division (ALE), and local law enforcement (collectively, the enforcing agencies) with providing criminal enforcement. Provides for coordination and notice to the other enforcing agencies by the Commission. Gives the Commission and other enforcing agencies authority to investigate the establishment of a video gaming merchant, operator, or a manufacturer to make inspections in GS 18C-1141. Provides for inspection reports. Makes refusal by a licensee, or their employee, to permit officers to enter the premises to make an inspection a cause for action against the licensee, including license revocation or suspension.  Requires access to surveillance footage upon request, Authorizes inspections at any time it reasonably appears someone is on premises.

Sets forth several criminal offenses for violations of the act in GS 18C-1142, including providing that unless a different punishment is expressly stated elsewhere, a violation of the Article is a Class 1 misdemeanor. Authorizes the Commission to terminate any licenses issued under GS Chapter 18C upon conviction of any crime under the Chapter or GS Chapter 14. Makes it unlawful under GS 18C-1143 for a licensee or any employee of the licensee to knowingly allow any of the following conduct to occur on the premises: (1) any violation of GS Chapter 18C; (2) any violation GS Chapter 14 or 90; or (3) any other unlawful act. Also makes it unlawful for a licensee to fail to superintend the business for which a license is issued in person or through an employee of the licensee.

Effective December 1, 2025.

Section 2.

Makes conforming changes to GS 18C-103, GS 18C-113, GS 18C-114, GS 18C-120, and GS 18C-161.

Effective December 1, 2025.

Section 3.

Prohibits a lottery retailer, licensee or applicant to be a licensee under GS Chapter 18C, a lottery contractor or potential contractor, or lottery supplier (the Gifters) from paying, giving, or making any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, having an aggregate value not exceeding $100 to the Director of the North Carolina State Lottery (Director), to any Commission member or employee, or to any member of the immediate family residing in the same household as one of these individuals (collectively the Recipients); prevents the Receivers from taking any gifts having an aggregate value not exceeding $100 from a Gifter. Repeals GS 18C-143(e) (gift giving prohibitions-licensees) and GS 18C-151(f)(gift giving prohibitions-contractors).

Effective December 1, 2025.

Section 4.

Enacts Article 2F to GS Chapter 105, enacting an unauthorized gaming machine tax, to levy an excise tax to generate revenue for State and local law enforcement agencies and for the General Fund. Specifies that nothing in the new article may in any manner provide immunity from criminal prosecution for a person who possess an illegal gaming machine.  Defines operator and unauthorized gaming machine.  Levies an excise tax on each unauthorized gaming machine at a rate of $10,000 per machine in GS 105-113.152. Provides for a process for payment of taxes by Operators. Directs the Secretary of Revenue (Secretary) to affix unauthorized gaming machines to indicate payment of the tax. Provides for Operators to report taxes payable to the Secretary as provided. Upon payment of the tax, directs the Secretary to issue stamps in an amount equal to the amount of the tax paid. Specifies that taxes may be paid, and stamps may be issued either by mail or in person. Provides for a process for the Secretary to impose assessments against an Operator to which a stamp has not been affixed, including notices, interest, and penalties in GS 105-113.154. Specifies, in GS 105-113.155, that information obtained by the Department of Revenue (DOR) in the course of administering the tax imposed by this Article, including information on whether DOR has issued a revenue stamp to a person, is confidential tax information. Prevents the information obtained by DOR from being used as evidence by a prosecutor in a criminal prosecution of the taxpayer for an offense related to the possession or operation of the unauthorized gaming machine.

Establishes the Unauthorized Gaming Machine Tax Account (Account) as a special nonreverting account under GS 105-113.156 with the proceeds of the tax levied under the Article to the Account. Directs the Secretary to distribute 75% of the unencumbered tax proceeds in the Account that were collected by assessment to the State or local law enforcement agency that conducted the investigation of an operator that led to the assessment and to credit the remainder to the General Fund. Directs that if more than one State or local law enforcement agency conducted the investigation, the Secretary must determine the equitable share for each agency based on the contribution each agency made to the investigation. Directs that refunds for taxes already be paid be drawn from the Account. Requires that funds provided for State and local law enforcement agencies under GS 105-113.153 should be used for expenses incurred by the agency for enforcing the laws of this State and carrying out other duties set by law. Specifies that those funds supplement and do not supplant local or State funding received by the law enforcement agency. Effective December 1, 2025, and applies to taxes due on unauthorized gaming machines on or after that date.

Section 5.-Section 7.

Amends GS 14-306.1A (types of machines and devices prohibited by law) to specify that it should not be construed to make illegal any activity conducted pursuant to GS Chapter 18’s Article 11. Amends GS 14-306.4 (electronic machines and devices for sweepstakes) to specify that it should not be construed to make illegal any activity conducted pursuant to GS Chapter 18’s Article 11. Makes conforming change to GS 105-259(b)(33)(secrecy required of officials).  Effective December 1, 2025.

Section 8.

Requires the court to order that an order pay reasonable costs of storage and disposal incurred by the seizing law enforcement agency when illegal gaming items are validly seized under GS 14-298. Specifies that if the item was seized for use as evidence in a criminal action or proceeding against the owner of the item, upon any plea of guilty or nolo contendere in that action or proceeding by the owner of the item, the court must order the owner to pay the reasonable costs of storage and disposal incurred by the seizing law enforcement agency. Subjects any motor vehicle used to transport any video game machine prohibited by GS 14-306 or GS 14-306.1A, or any electronic machine or device prohibited by GS 14-306.4 to seizure under GS 14-299. Specifies that each game console, play station, or other access point allowing a person to operate a slot machine constitutes a separate machine or device under GS 14-306 (definition of slot machine or device). Effective December 1, 2025, and applies to offenses committed on or after that date.

Section 9.

Directs the Commission to use sufficient funds from the Fund to cover its initial operating expenses to implement Article 9 of GS Chapter 18C, as enacted by the act, except that the total amount borrowed by the Commission cannot exceed $14 million. Provides for transfer of specified amounts of the funds for grants to local law enforcement agencies to combat illegal gaming, to be awarded upon recommendation by the Governor's Crime Commission; and the remainder to be available for expenditure for the purposes set forth in this act without further action by the General Assembly. Requires repayment of the funds within 24 months after the act’s effective date.

Section 10.

Provides for allocation of $2 million in each fiscal year from machine revenue to the specified six institutions of higher education for improving graduation rates and student success or sustainability in GS 18C-1103. Requires each institution to submit an annual report to the specified NCGA committee on its use of funds, as specified. Effective July 1, 2027, and applies to transfers made on or after that date.

Section 11.

Requires the Commission to identify a date upon which video gaming terminal play is authorized in this State and do all of the following at least 90 days in advance of that date: (1) publish that date in the North Carolina Registry and (2) report that date to the Joint Lottery Oversight Committee. Authorizes the Commission to (1) adopt rules that facilitate the licensure authorized in this act and (2) accept and issue applications for licensure prior to the date published in the North Carolina Registry of the date identified by the Commission.

Section 12.

Authorizes the Commission to initiate requests for proposal for the central monitoring system prior to December 1, 2025, but cannot award contracts prior to that date.

Enacts GS 90-171.38A, requiring programs approved by the North Carolina Board of Nursing (“Board”) under GS 90-171.38 to train, educate, and credential sexual assault nurse examiners to make an annual report to the Board including the number of total graduates from each program, the county of employment of each graduate, and, if known, where each graduate plans to work or is employed. Authorizes the Board to adopt rules to implement this requirement.

Effective August 1, 2025.

Part I.

Reorganizes specified portions of GS 90-210.121 and recodifies portions of GS 90-210.136 under GS 90-210.121 (definitions for Article 13F of GS Chapter 90). Renames Article 13F as Cremations and Alkaline Hydrolysis.

Further amends GS 90-210.121 as follows. Adds and defines reduction as alkaline hydrolysis, cremation, and any other method of final disposition of human remains authorized by the board. Makes conforming changes to the definition of authorizing agent. Also adds and defines reduced human remains, and reduction containers. Makes additional clarifying and technical changes to the statute.

Repeals GS 90-210.122 (establishing the Crematory Authority), effective October 1, 2025. Requires members to serve out their terms until that date and makes members eligible for per diem and travel and subsistence expenses for expenses incurred up to that date. Requires the North Carolina Board of Funeral Services (Board) to ensure that any unpaid, eligible expenses are paid to members.

Amends GS 90-210.123 by requiring a crematory to have a crematory manager. Allows the manager to manage multiple crematories within a 50-mile radius of each other. Allows a crematory to operate for 30 days without a manager due to the manager’s cessation of employment if the specified criteria are met, inkling that the crematory licensee retains on or more technicians to perform cremations. No longer requires applications for license renewal to include the technician’s educational certificates, just requiring it for licensure applications. Allows a crematory in the process of replacing its only technical at the time of licensure renewal to continue operating for up to 30 days (was, 180 days). Requires a new application for a crematory license or permit if: (1) there is a change to the legal structure of the crematory resulting in change of majority of the licensee’s owners, partners, managers, members, operators, or officers; or (2) a crematory licensee’s owner, partner, manager, member, operator, or officer holding a majority of the crematory’s interest dies (allows their estate to apply for a permit within 180 days of the date of death).

Amends the circumstances under which a license may be suspended, revoked, or refused, to now include (1) conviction of or a plea of guilty or nolo contendere to a felony or misdemeanor indicating that the individual is unfit or incompetent to engage in cremations or that they have deceived or defrauded the public (was, conviction of a felony or a crime involving fraud or moral turpitude); (2) acts or omissions indicating that the licensee is unable to engage in cremations with reasonable skill and safety due to illness, excessive use of alcohol, drugs, chemicals, or any other type of substance, or by reason of any physical or mental abnormality (was, gross immorality, including being under the influence of alcohol or drugs while performing cremation services); and (3) adds violating or cooperating with others to violate provisions of Articles 13A (practice of funeral service), 13D (preneed funeral funds), or 13E (mutual burial associations). Also adds the following circumstances: (1) failure to refund any insurance proceeds received as consideration in excess of the funeral contract purchase price within 30 days of receipt; (2) failure to provide, within a reasonable time, either the goods and services contracted for or a refund for the price of goods and services paid for but not fulfilled; (3) violation of GS 58-58-97 (provision of life insurance information upon notification of insured's death); (4) failure to respond to the Board's inquiries in a reasonable manner or time regarding any matter affecting the individual's performance of cremations; (5) failure to adequately supervise or oversee auxiliary licensed or unlicensed staff, employees, agents, or contractors, as required by this Article and Article 13D, 13E, or 13F of this Chapter, any rules of the Board, or the standards set forth in Funeral Industry Practices, 16 C.F.R. § 453 (1984), as amended; and (6) knowingly failing to follow the lawful direction of a person with the right to authorize disposition of human remains in accordance with GS 130A-420.

Allows the Board to apply for injunctive relief in the superior county of (1) where an act is alleged to have taken place, (2) where the defendant resides, or (3) Wake County, if any person, firm, corporation, or other entity has committed an act allegedly violating any provision of this Article. Requires when a violation is found that the court issue an order enjoining and restraining the acts constituting violations. Entitles the Board to reimbursement of costs and attorneys' fees.

Repeals GS 90-210.124 (authorizing agent). Enacts new GS 90-210.124A requiring crematory licensees to comply with GS 130A-420 (authority to dispose of body or body parts) when acting under their respective scope of practice for disposition of reduced human remains or body parts.

Amends GS 90-210.125, concerning the information that must be included on the cremation authorization from to require: (1) a representation that the authorizing agent has the right to authorize the cremation of the decedent and that the authorizing agent is not aware of any living person who has a superior priority right to that of the authorizing agent, as set forth in GS 130A-420 (was, GS 90-210.124); and (2) that the authorizing agent may specify in writing religious practices that conflict with Articles 13A, 13D or 13F (was, Article 13).

Amends GS 90-210.126 requiring the witnessing of the cremation authorization form on a preneed basis be in accordance with GS 130A-420. Makes additional clarifying changes.

Amends GS 90-210.217 requiring providing a receipt upon the release of reduced human remains (was, release of cremated remains) and makes conforming changes. Requires a funeral establishment to keep business records of all forms it generates or that are provided to it, for three years. Requires keeping records of the disposal of reduced human remains (was, cremated remains) for three years.

Amends GS 90-210.128 prohibiting rules requiring that any cremated remains be placed in an urn or receptacle designed to permanently encase the reduced human remains (was, cremated remains) after the cremation process has been performed.

Amends GS 90-210.129, concerning the cremation procedure, to refer to reduced human remains instead of cremated remains. Adds the requirement that a crematory refrigerate human remains at a temperature no greater than 40 degrees unless cremation will begin within 24 hours of the time in which the crematory takes custody of the remains.

Amends GS 90-210.130, concerning the final disposition of remains, by referring to reduced human remains instead of cremated remains throughout. Requires that if the authorizing agent or their representative has not specified the final disposition or claimed the reduced remain within 30 days after the crematory licensee provides written notice delivered by certified mail to the authorizing agent’s last known address that the reduced human remains are available for retrieval, then the crematory licensee or person in possess of the reduced human remains may release those remains to another family member or dispose of the remains only in the manner allowed by the Article.

Amends GS 90-210.131 concerning liability, by referring to reduced human remains instead of cremated remains.

Amends GS 90-210.132 by changing the hydrolysis fees to reduction fees. Adds that by the 10th of the month, every crematory licensee and hydrolysis licensee must remit to the Board the per cremation or reduction fees for the cremations or reductions which the crematory licensee performed during the immediately preceding calendar month, along with a signed statement containing specified information.

Amends GS 90-210.136 requiring applications for a license to hydrolyze human remains to be on a form provided by the Board. Requires a license to comply with this Article, including GS 90-210.127 (record keeping) and GS 90-210.130 (final disposition of cremated remains).

Amends GS 130A-415 by making conforming changes.

Effective October 1, 2025.

Part II.

Adds transportation protection agreement (an agreement that primarily provides for the coordination and arranging of all professional services related to the preparation of human remains or cremated remains for the purpose of initial and subsequent transportation of those remains) to the list of defined terms in GS 90-210.60 (definitions concerning preneed funeral funds governed under Article 13D of GS Chapter 90). Excludes transportation protection agreements from the scope of Article 13D. Allows the Board to adopt rules to implement these provisions.

Further excludes transportation protection agreements from: (1) the definition of a preneed funeral contract under GS 90-210.60, (2) the business of life insurance under GS 58-7-15(1), (3) solicitations or sales for contracts used to fund transportation protection agreements under GS 58-58-330(a) (listing sales or solicitations exempt from regulation under Part 6 of Article 58 of GS Chapter 58, concerning dishonest and predatory sales to military personnel), (4) the definition of prearrangement under GS 58-60-35 (concerning disclosure of prearrangement insurance policy provisions).

Broadens the statutory provisions under GS Chapter 58 that apply to the insurance described in GS 58-7-15 (kinds of insurance authorized) to include every article in the chapter (currently, just Articles 1 through 64). Excludes a preneed licensee under Article 13D of GS Chapter 90 and fund transportation protection agreements from GS 58-58-1 (kinds of contract under the life insurance and viatical settlements article of GS Chapter 58).

Makes conforming change to GS 58-58-335, reflecting exclusion of fund transportation protection agreements from definition of business of life insurance under GS 58-7-15(1). Makes technical changes, including updating statutory references to reflect recodifications.

Applies to preneed funeral contracts and transportation protection agreements entered into on or after October 1, 2025.

Amends GS 58-58-97 allowing a licensed funeral director or an employee of a funeral establishment to request from a life insurance carrier, information regarding the contract for a prospective policy beneficiary when they are requesting the use of a life insurance policy for the fulfilment of funeral services; makes conforming changes. Requires the life insurance company to provide the specified information within one business day (was, as soon as possible). Adds that failure to meet this deadline may subject the insurer to penalty. Makes conforming changes to GS 58-39-75. Effective 30 days after becoming law and applies to inquiries made to life insurance carriers doing business in this State on or after that date.

Part III.

Allows the Board to adopt temporary rules to implement this act, which will remain in effect until replacement permanent rules are effective.

Amends GS 105-537(c) to change the ballot question language for a special election concerning the levy of a local sales and use tax. Changes reference to rate from “one quarter percent” to “a fraction of a penny (one penny for every four dollars ($4.00) spent).”  Modifies allowable uses for proceeds derived from the tax by providing that the tax can be used to increase the pay for teachers and other education employees. Requires the ballot language to express the same and to say that the tax will not apply to gas, groceries, motor vehicles, or prescription drugs.

Effective upon becoming law and applicable to advisory referendums under Article 46, GS Chapter 105, conducted on or after that date.