House amendment to the 1st edition now specifies that the Department of Transportation (DOT), in initiating a condemnation action under GS 136-103, is not required to serve or join a person whose only interest in the land is the possibility of a future election under GS 29-30 (was, DOT not required to serve or join the spouse of a person with an interest in the subject land unless the spouse also has an interest in the land other than the possibility of a future election under GS 29-30). 

House committee substitute to the 2nd edition removes term "STIP project" as a descriptor for those capital projects identified for funding as a regional impact or division need project under GS Chapter 136 (concerning Strategic Prioritization Funding Plans for Transportation Investments). Makes technical and conforming changes.  

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

Section 1.

Requires the State Board of Education (Board) to remove its requirement that a student complete NC Math III as one of the four required math courses needed to graduate high school. Directs public school units to encourage all students to complete additional mathematics courses beyond the required courses and to encourage students interested in advanced degrees to work with counselors to determine a sequence of math classes that will make them competitive for higher education admission. Specifies that NC Math III and all other math courses existing on the effective date of this act will continue to be offered to all high school students (previously, required the Board to adopt a rule to modify the high school graduation requirements to require completion of NC Math 1 and 2 or equivalent courses and two additional math courses that align with the student's postsecondary plans and to require that NC Math and all other existing math courses continue to be offered by all high schools to the extent that there is sufficient student interest). Authorizes the Board to adopt emergency rules to implement Section 1 for the 2025-26 (was, required the Board to adopt a rule to require completion of an end-of-course test for NC Math 2 but not require completion of an end-of-course test for NC Math 3).

Section 2.

Expands the graduation requirements for social studies to include World History and US History, and Economic and Personal Finance in GS 115C-83.31 (exit standards and graduation requirements). Modifies the four credits required for mathematics so that it includes NC Math I and II, Computer Science, and a fourth math class aligned with the student's career development plan (was, a passing grade in a computer science course that fulfilled a credit that is not English, mathematics, science, or social studies). Requires a passing score on the US History test adopted by the Board, described below. Directs the Board to develop a US History test as part of its annual testing program in GS 115C-174.11(c) from the pool of publicly available questions used for the civics test given by the US Citizenship and Immigration Services (USCIS) as part of the naturalization interview and test issued by USCIS. Applies beginning with students entering the ninth grade in the 2026-27 school year.

Section 3.

Instructs the Board to develop a plan to remove licensing barriers for individuals who were licensed or eligible to be licensed to teach the described computer science classes prior to the courses becoming mathematics courses. Authorizes a public school unit to allow any licensed teacher, regardless of licensure area, to teach those courses if the public school unit determines the teacher possesses the necessary content knowledge to effectively teach the course. Expires June 30, 2028.

Section 4.

Amends new GS 115C-81.37 requiring local boards of education to enroll students in high school math courses so that students scoring at or below the described levels at the end-of-grade or end-of-course exam will be enrolled in the specified foundations of NC Math I or NC Math II (previously, required the Board to develop a course of study for high school mathematics courses that spreads the content standards of NC Math 1 and NC Math 2 into four separate courses, as described, along with setting out an enrollment schedule). Specifies that students scoring Level 3 or above on the eighth grade math end-of-year test shall be encouraged not to take Foundations of Math I before NC Match I in high school and those scoring Level 3 or above on the NC Math I exam must be encouraged not to take Foundations of Math II before enrolling in NC Math II. Applies beginning with the 2026-27 school year.

Section 5.

Specifies a list of eight documents that students must now read as part of the Founding Principles of the United States of America and North Carolina, including Dr. Martin Luther King Jr.’s Letters from a Birmingham Jail, at least five essays from the Federalist Papers, and the Gettysburg Address in GS 115C-81.45. Expands the question topics on the end-of-course exam to include perspectives of the authors, and the relevant historical contexts at the time the documents were written. Applies beginning with the 2026-27 school year.

Section 6.

Requires UNC’s Board of Governors to adopt as the minimum mathematics requirements for admission to a constituent institution the mathematics requirements for high school graduation adopted by the Board. Applies beginning with applying for admission for the 2026-2027 academic year.

Section 7.

Repeals GS 115C-83.32(c) (citizenship proficiency high school diploma endorsements), GS 115C-218.85(c) (high school diploma endorsements), Section 5 of SL 2019-82 (requiring the Board to begin the process for review and revision of the standard course of study for social studies in grades kindergarten through 12 in the 2019‑2020 school year and revise the high school standard course of study, as described), and Section 1(b) of SL 2023-132 (concerning the high school computer science requirement).

Removes provisions that set out which classes were to be taken by students who completed Math 1 or Math 2 with a grade of C or lower. 

House committee substitute to the 2nd edition makes the following changes.

Section 13

Narrows the type of complaints that the Department of Justice (DOJ) must receive under GS 114-8.8 to only complaints by members of associations of unit owners or lot owners concerning disputes with their associations (was, all complaints concerning disputes between unit/lot owner associations and their members). Makes conforming changes. 

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

Section 1.

Makes the proposed offense of presenting a fraudulent deed under GS 14-122 a Class H felony (was a Class G felony, unless the value of the property is $100,000 or more, then a Class C felony). Makes language gender neutral and makes technical changes.

Section 1.2.

Amends GS 14-117.8 to modify the Class H felony offense of fraudulent renting or leasing to include renting or leasing real property to another person knowing that the renter, tenant, lessee, landlord, or lessor (was only renter or lessor) has no lawful ownership or leasehold interest in the property. Makes it a violation of GS 75-1.1 to knowingly rent, lease, list or advertise (was only rent or lease) residential real property to another person knowing that the renter, tenant, lessee, lessor, landlord, or the person soliciting the listing or advertisement (was only the renter or lessor) has no lawful ownership or leasehold interest in the property. Authorizes a judge presiding over a civil suit brought by a person alleging that a violation of the section constitutes a violation of GS 75-1.1 to allow a reasonable attorney fee pursuant to state law without finding there was an unwarranted refusal by the alleged violator to fully resolve the matter that is the basis of the suit. Applies to offenses committed on or after December 1, 2025.

Section 1.3.

Amends GS 14-209, making it a Class F felony to knowingly and intentionally make a false statement under oath or affirmation in an instrument presented to a register of deeds for registration. Defines "instrument" by statutory cross-reference to proposed GS 161-32. Applies to offenses committed on or after December 1, 2025.

Section 2.

Modifies new GS 161-32, Identity verification and suspicious instruments, as follows. Replaces the definition of "instrument" to now define the terms by listing three types of qualifying documents which either transfer title of real property, establish a security interest in real property, or purports to establish an interest, option, encumbrance, right, or other claim relating to or interest in real property. Revises the definition of "suspicious instrument" to no longer include an instrument for which the register of deeds has found either: (1) the name or information of the acknowledging officer does not match the official records for that acknowledging officer; or (2) the instrument is materially false, fictitious, or fraudulent and has not been submitted by a trusted submitter or an authorized representative of a trusted submitter. Adds to the qualifying findings of a suspicious instrument that the instrument is submitted by an individual who is not a trusted submitter and the identity verification requirements of the statute have not been met. Expands the term "trusted submitter" to include the authorized agent of a licensed attorney or a financial institution (the extension was previously provided for title insurance companies only). Eliminates redundant language relating to authorized agents of trusted submitters throughout. Refers to identity verification rather than government-issued photo ID in the general requirement for register of deeds under subsection (b). Adds to the required information a register of deeds must record from a photo ID under subdivisions (b)(1) and (b)(2), the identification card number and the expiration date. No longer prohibits redaction of the birthdate from a person's photocopy of their ID submitted to the register of deeds pursuant to subdivision (b)(2). Adds new subdivision (b)(1a), establishing identity verification requirements for when an individual who is not a trusted submitter presents an instrument for registration by delivery, as specified, mirroring those required for the presentation of electronic documents pursuant to subdivision (b)(2). Deletes redundant language of subdivision (c)(2), now included in the expanded definition of "suspicious instrument" that is addressed in subdivision (c)(1). Removes the provision permitting the register of deeds to notify the acknowledging officer of the reason for finding that the instrument is a suspicious instrument. Makes technical and clarifying changes. No longer provides for a cause of action against the register of deeds for their refusal to record an instrument based on an erroneous finding that the instrument is a suspicious instrument. Makes changes to consistently refer to government-issued photo ID rather than identification card in subdivision (b)(2) and (f).

Section 3.

Deletes new GS 161-33, pertaining to a fraud detection alert system.

Section 3.1.

Directs the Legislative Research Commission (LRC) to study the feasibility of creating a fraud detection alert system for no cost, automatic enrollment of persons who submit instruments in the fraud detection alert system. Directs the register of deeds to provide a notice explaining the system prior to enrollment. Lists three required evaluations to be included in the study, including examining the fiscal impact on the State, counties, and/or registers of deeds, as specified. Requires the LRC to report its findings to the 2026 Regular Session of the NCGA. Makes these provisions effective on the date the act becomes law.

Section 4.

Changes the caption of new GS 41-10.2 and modifies the statute as follows. Makes the definition of "instrument" mirror the definition of the term provided in new GS 161-32, as amended. Makes clarifying changes to subsection (b) regarding the legal action available to the actual owner of an interest in real property subject to a recorded false, fictitious or fraudulent instrument. Provides for the right to bring a civil action in addition to the emergency relief (was "expedited relief") previously described. Allows the actual owner to proceed pro se. Deems the district court the court of original jurisdiction for the actions. Requires the plaintiff to file a notice of les pendens upon filing an action. Replaces the provisions regarding notice and proof of service for action under the statute; instead describes sufficiency of service under Rules 4 and 5 of the Rules of Civil Procedure if the party's address is used from specified sources. Adds provisions to address ex parte hearings and authorize temporary orders under the statute. Provides that temporary orders remain in effect for the later of 60 days or until the entry of a permanent order. Authorizes chief district court judges to authorize magistrates to hear ex parte motions. Establishes a time frame for scheduling ex parte hearings and provides for instances when the district court is not in session in that county (replacing the previous provision requiring the hearing be held after a minimum of five days' notice). Details calendaring requirements and grants the hearing priority on the court calendar. Provides for a permanent order to be entered upon a court finding the recorded instrument to be false and void as a matter of law after all interested person and all persons claiming an ownership interest are given the opportunity to be heard (replacing the authority to enter an order removing the cloud from the title described in the previous edition). Deletes the provisions relating to evidence that establishes fraudulent activity. Makes technical changes to the additional relief the court may order, and adds to the relief available: (1) imposing Rule 11 sanctions against the offending party or their attorney; and (2) ordering execution of any additional instruments necessary or required to clear the title to the property pursuant to Rule 70. Makes the provisions of subsection (c) apply to both ex parte and permanent orders entered under the section. Requires the register of deeds to record and cross-index the court's order under the statute, and mark the previously recorded instrument with the specified statement (previously, permitted the marking). Further requires that the order be recorded by the register of deeds as a subsequent instrument under state law at no cost. Specifies that the consequences under GS Chapter 75 are in addition to both criminal penalties and civil remedies provided by law. Deletes the language of subsection (e) and replaces it with the following. Makes it a Class G felony to initiate an action under the statute knowing that the subject instrument is not false, fictitious, or fraudulent. Directs that appeals may be made to superior court and contain a verified factual explanation as to why the order is incorrect. Makes clarifying and technical changes. 

Sections 5.1 and 5.2.

Directs the Administrative Office of the Courts (AOC) to develop and make available on its website by October 1, 2025, a complaint form for the fraudulent instrument procedure under GS 41-10.2, as well as a form for filing a lis pendens under GS 41-10.2. Requires the form to include a statement of the criminal penalties for filing a false complaint or statements of perjury. Effective on the date the act becomes law.

Section 6.1.

Replaces the provisions of new GS 47-108.30 with the following. Directs that instruments, as defined, do not have a presumption of priority based upon the time of registration and do not constitute constructive notice or color of title if either: (1) the instrument does not comply with the provisions of the specified sections of GS Chapter 47 (governing probate and registration); or (2) the instrument does not contain a signature and acknowledgement dule acknowledged before an officer authorized to perform acknowledgements as required for recording of at least one record owner at the time the conveyance is made. 

Section 6.2.

Enacts GS 47-18.4 to require all deeds or other conveyances of title (other than by court order) presented for registration to include a source of title to the grantor, as described. Prohibits accepting the conveyance for registration if submitted by anyone other than a trusted submitter, as defined by new GS 161-32, unless one of three specified criteria apply, providing that the grantor matches the owner identified in the property's tax listing. Provides for legal verification in the event of material inconsistency in the grantor's identity and the county tax records, as described. Applies to deeds or other conveyances (other than by court order) presented for registration on or after October 1, 2025.

Section 7.1.

Makes the provisions of GS 161-31 applicable statewide. Mandates all register of deeds to refuse deeds transferring real property for registration unless the county tax collector has verified the name of all owners of the parcel listed in the tax records and that no tax liens exist on the property (previously, specific county boards of commissioners could require registers of deeds to refuse registration if tax liens existed on the property). Allows for registration without verification if the deed is submitted by a trusted submitter as defined by new GS 161-32 and contains the specified statement of the licensed attorney who prepared the document, as now specified to include both delinquent and current taxes owed to be paid at closing. Effective October 1, 2025.

Section 8

Makes organizational changes to the act's effective date provisions.

Changes the act's long title.  

House committee substitute to the 2nd edition makes the following changes.  

Expands the examples of commercial goods, consumer goods, or intermediary products for use in the manufacture of commercial goods that are exempted from the term and makes technical changes to the term PFSA manufacturer in GS 130A-19.1 (abatement of PFAS exceedances). Clarifies that the Secretary of the Department of Environmental Quality (Secretary) can only order a responsible party to pay a public water system to abate any adverse effects on the system if the Secretary’s listed determinations are based upon sufficient evidence, detailed in findings of fact in its order. Makes organizational changes. Removes provisions providing for funding and an annual report to the specified NCGA committee by the Department of Environmental Quality. Makes conforming changes to the act’s effective date.

House amendment to the 2nd edition makes the following changes. Amends GS 143C-6-5.6(b1), which prohibits using State funds for surgical gender transition procedures, or for puberty-blocking drugs or cross-sex hormones to prisoners in the State prison system or the Statewide Misdemeanor Confinement program or in the custody of the Department of Adult Correction, or to support the administration of any governmental health plan or government-offered insurance policy offering those procedures or drugs to any prisoner, as follows. Specifies that GS 143C-6-5.6(b1) should not be construed to prevent State funds from being used, directly or indirectly, to address medical complications resulting in imminent physical harm, including the treatment of any infection, injury, disease, or disorder that has been caused by or exacerbated by a previously performed or privately funded gender transition procedure. Inserts severability clause.

House committee substitute to the 2nd edition changes the heading to Part III of the act and the act's long title.

House committee substitute to the 2nd edition makes the following changes.

Amends GS 105-164.4 by increasing the sales tax on boats, including accessories attached to the boat when it is delivered to the purchaser, from 3% to 3.25%; maintains the cap of $1,500 per article. Enacts new GS 105-164.44N requiring that 6% of the proceeds of that sales tax on boats be transferred within 75 days after the end of the fiscal year to the Wildlife Resources Fund. Applies to sales occurring on or after October 1, 2025. Makes conforming changes to the act's long title. 

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

Modifies new GS 160D-917, Camping in public spaces, as follows. No longer includes local government unit in the statute's defined terms. Makes changes throughout the statute to refer to: (1) local government rather than local government unit or unit; (2) governing board rather than governing body; and (3) property designation or designated property rather than designation. No longer specifies in subsection (b) that the list of public property covered by the statute is nonexhaustive. Amends subsection (c) to refer to the Unit Assistance List rather than the "unit list". Makes technical and clarifying changes.

House committee substitute to the 1st edition makes the following changes. Modifies the term eligible person under the definitions provision of new Article 51A, the Prevent Sexual Exploitation of Women and Minors Act,” so that it (1) is no longer limited to a pornographic image published to an online entity and (2) does not include a law enforcement officer acting pursuant to a valid court order. Includes tattoos as an identifying marking of an individual under the term intimate visual depiction. Removes term news gathering organization.

Removes provisions requiring the Attorney General to create or approve a consent form under GS 66-506 so that the online entity operator just needs to obtain written consent as directed by the statute. Extends standing under GS 66-507 to law enforcement officers acting pursuant to a valid court order for requests to an online operator to remove a pornographic image being hosted with the consent of the individual depicted in the pornographic image. Removes provisions in GS 66-509 (enforcement) creating a Class A1 misdemeanor for violations of the act. Removes provisions providing a private right of action for violations of GS 66-507(d) with respect to a pornographic image (requests for removal by third parties who are not eligible persons). Specifies, in the private right of action for violations of the article, that the $10,000 daily damages for which a pornographic image remains online in violation of new Article 51A should be calculated on a per day and per image basis. Require a prevailing eligible person to be awarded attorneys' fees.

Makes clarifying, technical, and conforming changes, including to act’s effective date.

House amendment to the 1st edition makes a technical correction to the reference to Section 2 in Section 3 of the act. 

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

Section 1. 

Renames the defined term at GS 90D-3(3) educational interpreter or educational transliterator (was, educational interpreter or transliterator). Specifies that the term interpreter includes an educational interpreter. Now specifies that a transliterator only includes an educational transliterator (was, educational interpreter or transliterator).  Adds holding a current Educational Interpreter Performance Assessment (EIPA) level 4.0 or above classification and passage of the EIPA written test to the criteria that a person can opt to fulfill as as requirement for licensure under GS 90D-7 (requirements for licensure--interpreters and transliterators). Requires an applicant for a provisional interpreters and transliterators license to have also passed the EIPA written test in addition to achieving the described EIPA level classification to fulfill that criterion under GS 90D-8. Expands the requirements for a person seeking a provisional license based on providing 400 hours of service in the two years preceding the application so they also have to hold any certificate or assessment issued by a nationally recognized body approved by the North Carolina Interpreter and Transliterator Licensing Board (Board) by rule. Decreases the times that a provisional license may be renewed from thrice to twice. Makes conforming changes. Specifies that the licensure renewal requirements under GS 115C-110.2 (interpreters/transliterators) are those adopted by the Board under GS 90D-11. 

Section 2.

Specifies that for an educational interpreter or educational transliterator who was issued a provisional license pursuant to GS 90D-8 and the provisional license expired prior to the effective date of the act, if the educational interpreter or educational transliterator continues to qualify for a provisional license, then the Board must issue a new initial provisional license upon application to the Board and the payment of the required fee for a provisional license. Prohibits the Board from granting an extension after a second renewal to a provisional license issued pursuant to Section 2 of the act. Expires September 30, 2027. 

Section 3. 

Authorizes the State Board of Education, in addition to the Board, to adopt rules to implement the act.  

House committee substitute to the 1st edition removes the content of the previous edition and replaces with the following study. Makes conforming changes to the act’s long title.

Establishes the 13-member Study Committee on Domestic Violence Training Standards for Professionals Involved in Child Custody Proceedings Involving Domestic Violence and Child Abuse (Committee), tasked with serving as a study and advisory committee on the need for and feasibility of implementing statewide training for judges, judicial officers, parenting coordinators, guardians ad litem, family financial mediators, child custody mediators, and other court-affiliated personnel involved in child custody proceedings that include allegations of domestic violence or child abuse. Sets out provisions governing co-chairs, filling of vacancies, and quorum. Requires studying issues related to training requirements, content areas of the training, training providers, cost and funding, and an implementation model. Requires an interim report on the study by March 1, 2026, and a final report by June 30, 2026, to the specified NCGA committees.

House amendment to the 2nd edition updates the name of the test that is the subject of the study to the Classic Learning Test (was, Classical Learning Test) throughout the act. Makes conforming changes to the act's long title. 

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

Section 1.

Changes the definition of deepfake in new GS 14-459. Now includes that the image or audio or video recording be digitally altered or generated to inauthentically depict a natural person speaking or acting in a manner that the person did not actually speak or act such that a reasonable person would not know that the depiction is false (previously included that the image or audio or video recording appear to depict a natural person speaking or acting in a manner that the person did not actually speak or act). Adds an exclusion for a work of artistic or newsworthy value including commentary, criticism, satire, or parody. Adds interactive computer service to the defined terms, defined to mean any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the internet and the systems operated or services offered by libraries or educational institutions. Removes previous subsection (d) authorizing the court to award the destruction of the deepfake for violations of the statute. Adds a new subsection granting immunity to interactive computer services, and providers and developers of technology used in the creation of a deepfake, used by a person in the commission of an offense under the statute. Makes organizational and clarifying changes.

Section 2.

Adds interactive computer service to the defined terms set forth in new GS 1-539.30, defined in the same way as the term is defined under new GS 14-459. Makes clarifying changes. Adds interactive computer services from to the entities that are immune from liability for damage to clients by learned professionals resulting from errors generated by an artificial intelligence product. Makes technical and clarifying changes.

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

Amends the membership of the Study Committee on Assistant District Attorney, Assistant Public Defender, and Private Assigned Counsel Pay Rates (Committee) so that it includes only one member (was, two members) appointed by the Conference of District Attorneys and adds the Executive Director of the Conference of District Attorneys or their designee; reduces the number of members appointed by the Office of Indigent Defense Services from two to one and adds the Executive Director of Indigent Defense Services or their designee. Instead of naming those two Executive Directors as co-chairs of the Committee, requires that the President Pro Tempore of the Senate and the Speaker of the House of Representatives each designate a co-chair from their appointees.

House committee substitute to the 2nd edition deletes the content of the previous edition and replaces it with the following study. Makes conforming changes to the act's titles.

Requires the Department of Public Instruction to study how local school administrative units can allow students to attend any school within the unit in which the student is domiciled, other than their assigned base school. Requires the study to include a review of existing voluntary open enrollment and freedom of choice plans, and considerations for implementing mandatory open enrollment plans, including the six specified issues. Requires DPI to report to the specified NCGA committee by April 15, 2026. 

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

Part I.

Amends GS 90-210.121 by changing the definition of alkaline hydrolysis so it is now defined the same as it is under GS 90-210.20, which defines the term as the technical process that reduces dead human bodies to bone fragments using heat, water, and chemical agents (was, the technical process using water, heat, and other chemicals to destroy, dissolve, or reduce human remains to simpler or essential elements).

Amends GS 90-210.123 by adding the requirement that applicants for licensure as a crematory undergo a criminal history record check, as described. Provides that refusal to consent to a criminal history record check may constitute grounds for denying the license. Requires a record check for new applicants and for those seeking instatement of licensure if the license has been expired for three or more years. Allows the use of a vendor other than the Department of Public Safety (DPS) for conducting the background check. Requires all information obtained as part of the background check to be kept privileged and confidential and specifies that it is not public record. Gives immunity to the NC Board of Funeral Service (Board) and its officers and employees, who are acting in good faith and in compliance with this statute, from civil liability for denying licensure based on information in the background check. Allows DPS to charge applicants a fee for conducting the criminal history checks. Removes the provision allowing the Board to obtain preliminary and final injunctions whenever a violation of the Article has occurred or threatens to occur. Makes clarifying changes to the new provisions concerning the Board’s ability to apply for injunctive relief.

Amends GS 90-210.125 making a change that conforms to the repeal of GS 90-210.124.

Amends GS 90-210.136 adding that only funeral establishments that hold a valid establishment permit are eligible to be a hydrolysis licensee. Also prohibits performing alkaline hydrolysis except on the physical premises of a funeral establishment with a valid establishment permit.

Adds the following new content.

Part III.

Amends GS 90-210.18A by reducing the number of members on the Board of Funeral Service (Board) appointed by the Governor upon recommendation by the NC Funeral Directors Association from four to three. Reallocates that member recommendation to the Funeral Directors and Morticians Association of NC, so it can provide three recommendations to the Governor for appointment to the Board (currently, two).  

Recodifies fifteen definitions in GS 90-210.20 (pertaining to the practice of funeral service) so that each definition is indicated by a subsection number in GS 90-210.20, rather than a subsection number letter. Applies GS 90-210.20, as amended above, to Articles 13A (Practice of Funeral Service), 13D (Preneed Funeral Funds), and 13F (Cremations) of GS Chapter 90 unless a different meaning applies. Makes technical changes. Adds new terms alkaline hydrolysis, branch establishment, embalming facility, funeral merchandise or funeral supplies, and principal funeral establishment. Modifies the definitions of chapel, dead human bodies, entry-level examination in funeral directing, and practice of funeral service.

Expands the Board’s authority so that it is also empowered to regulate and inspect chapels, crematories, and alkaline hydrolysis licensees under GS 90-210.23 (powers and duties of the Board). Allows the Board to recover costs, in addition to attorneys’ fees if the Board imposes discipline after holding a show cause hearing. Increases the cap on the amount that the Board may recover from $2,500 to $5,000. Directs the Board to set a reinspection fee by rule. Makes conforming changes.

Expands the places where a Board Inspector may conduct inspections under GS 90-210.24 (inspectors) to include visitations and memorial services.  Makes conforming changes to reflect expanded scope of Board’s authority. Makes technical changes.

Makes the following changes to GS 90-210.25, pertaining to the Board’s licensing power. Removes outdated language. Makes technical, organizational, clarifying, and conforming changes.  Increases the timespan that an applicant would have had to have obtained a passing score on the described funeral director, embalmer, or funeral service, examinations from three years to five years prior to the application. Allows an applicant to qualify for a provisional funeral director license if, in addition to meeting the other described requirements, they have five years of professional experience under the supervision of a licensed funeral service licensee. Allows persons desiring to become an embalmer, funeral director, or funeral service licensee to train under the described licensees who have been licensed to practice for a minimum of one year (was, five years).

Directs the Board to register qualified applicants as registered trainees instead of directing the secretary to issue a certificate of resident traineeship. Directs the supervising licensee to file an affidavit of competence with the Board after the resident trainee has left the proctorship, with a copy of the affidavit provided to the trainee. Provides for an affidavit form. Removes requirement that traineeship be a primary vocation of the trainee. Increases the amount of trainees that may serve under a licensee from one to two at a time.

Removes the 60-day waiting period for an applicant who has not obtained a passing score on the Board’s entrance exam to retake the exam. Caps the fee for Board-sponsored continuing education courses at $50. Requires all applicants for licensure or reinstatement of licensure if the license has been expired for three years or more, including any owner, partner, manager, member, operator, or officer of a business entity, to consent to a State and national criminal history check. Specifies that refusal to consent to the check is grounds for denial of an application. Allows the Board and applicant to consent to use of a vendor other than the Department of Public Safety (DPS) to perform the check, with the applicant to pay costs. Provides for good faith immunity to Board and its officers and employees if it denies licensure based on the applicant's criminal history check. Allows registered trainees to apply for an inactive license in the same category as their resident trainee license. Removes option for an applicant of a forfeited license to pass the NC examination for a forfeited license in order to have their license reinstated. Removes exception allowing for (1) licensees employed by a college of mortuary science to engage in the practice of funeral directing or funeral services or (2) those who are practicing funeral directing or funeral services but do not own, are not employed by or are not an agent of a licensee funeral establishment to practice if specified conditions were met.

Removes the parity requirements in education, training, and examination for an applicant licensed in another jurisdiction seeking a State license based on reciprocity. Clarifies that the applicant must have practiced in the profession for at least three consecutive years (was, three years). Requires the applicant to have paid all applicable fees before granting licensure. Removes licensure option for an out-of-state applicant who has practiced as a funeral director for at least ten years. Authorizes the Board to adopt rules to include courtesy card application procedures and the limited practice of funeral service that may be conducted with a courtesy card. Removes requirement that licensees within the funeral service profession register with the local board of health in the jurisdiction where they practice.

Removes provisions pertaining to receipt and transportation of a dead body by railway agents and related entities. Modifies transportation or removal of a dead body so that includes an embalming facility but no longer includes related facilities to those listed in the term. Prohibits any person or entity from operating or otherwise conducting a business engaged in the transportation or removal of a decedent unless a removal and transportation permit for that business has been issued by the Board and is conspicuously displayed in the removal vehicles of that business. Exempts persons licensed under the crematoria provisions of GS Chapter 90, embalmers, and funeral service licensees from the permitting requirements described under this statute. Removes the exemption for individuals who have exhibited special care and concern for the decedent. No longer requires three character references for a transportation and removal permit. Increases the fee cap for the permit application from $125 to $200 for an individual and establishes a $300 fee cap for a business permit. Removes conviction of a crime of moral turpitude and gross immorality as grounds for action on a permittee’s transportation and removal permit. Instead, allows for action upon conviction or nolo contendre plea to a felony or misdemeanor crime that indicates the permittee is unfit or incompetent to engage in removal or transportation or that the permittee has deceived or defrauded the public. Expands the reasons for Board action on a permittee’s permit to now include (1) acts or omissions indicating that the permittee is unable to engage in removal or transportation of dead human bodies with reasonable skill and safety by reason of illness, excessive use of alcohol, drugs, chemicals, or any other type, or by reason of any physical or mental abnormality; (2) acts or omissions that endanger public health; (3) acts or omissions that deceive, defraud, or harm the public while engaging in the removal or transportation of dead human bodies; and (4) failure to respond to the Board’s inquiries within a reasonable time or manner.

Allows for the manager of a funeral establishment to manage a principal funeral establishment and any branch funeral establishments and chapels registered to it within a fifty-mile radius in a straight line (currently, can only manage one funeral establishment). Tasks the manager with overseeing the daily operations of the funeral establishments and any other of the described facilities registered to the establishment. Expands the information required for a funeral establishment permit to include a list of all full-time and part-time licensees contracted by the establishment (currently, just employed). Now requires the manager to file for a funeral establishment permit, unless the establishment is operating in the 30-day window without a manager. In that case, authorizes the owner or managing officer or director of an entity owning the establishment to file for the permit. Prohibits funeral establishment permits that have been expired for six months or more from being renewed. Specifies that the 30-day deadline for a new application for a funeral establishment permit applies when there is a change in ownership due to an acquisition or sale. Describes when the death of an owner or other managing entity of the funeral establishment constitutes a change of ownership.

Removes conviction of a crime of moral turpitude and gross immorality as grounds for adverse action on a licensee’s license. Instead, allows for action upon conviction or nolo contendre plea to a felony or misdemeanor crime that indicates the permittee is unfit or incompetent to engage in removal or transportation or that the permittee has deceived or defrauded the public. Expands the reasons for adverse action on a license to now include (1) failure to adequately supervise or oversee auxiliary licensed or unlicensed staff or contractors as required by the specified laws; (2) knowingly failing to follow the lawful direction of the person or persons with right to authorize disposition of a dead human body; and (3) failure to respond to the Board’s inquiries within a reasonable time or manner. Specifies that nothing in Article 13A should be construed to alter the duties and authority of the Office of Chief Medical Examiner (was, coroner).  Expands the prohibition on taking or recovery of human tissue to crematoria. Expands the venues where the Board may seek injunctive relief to include Wake County. Provides for the Board’s reimbursement of costs and attorney's fees expended from any defendant found to have engaged in the unlicensed practice of funeral service by a court of this State.

Allows the Board to find that a criminal conviction for a sexual offense against a minor is indicative of the applicant’s lack of fitness to practice funeral service under GS 90-210.25B (persons with criminal history) (was, Board had to reject such persons). Repeals GS 90-210.26 (concerning affidavits of good moral character). Requires under GS 90-210.27A for each preparation room in a funeral establishment to also contain surgical gloves and clean smocks or gowns, identification tags, and a waste receptacle for storage of soiled linens.

Amends the triggering event for funeral establishments to be exempt from certain requirements under GS 90-210.27A(a1) so that it only applies when a funeral establishment is destroyed by certain events (currently, applies when the preparation room of a funeral establishment is destroyed). In that event, allows for the Board to grant a waiver not to exceed two years  from the requirements of GS 90-210.27A(a) (governing preparation rooms) and GS 90-210.27A(c) (requiring reposing rooms) (was, 180-day limit). Allows for further extension for up to two years from the date of loss. Authorizes a court to enter an order upon petition of the establishment and required findings granting an additional extension of up to three years after the date of loss or one year after the court order, whichever is greater. Narrows the regulations that the establishment must comply with during that time so that it is those rules and regulations imposed on funeral establishments and the funeral profession designed to protect consumers. Requires the establishment to maintain its business records at a location made known to the Board and to make those records available for inspection by the Board as specified. Allows for a provisional funeral director license to qualify as a license under the above-described waiver provisions. Requires that branch funeral establishments be registered with the Board as described. Prevents a person from owning or maintaining a branch funeral establishment or chapel outside of a radius within 50 miles in a straight line from the funeral establishment (currently, no straight line requirement). Prevents a licensee from using a chapel for the described secondary uses including selling funeral merchandise to the public. Removes prohibition on a funeral establishment using an unregistered name. Expands the types of misleading names to include “crematory center.” Modifies the conditions when using "crematory," "crematorium," or "crematory center" would be misleading to now include when the funeral establishment does not share a facility or other contiguous real property with a crematory licensee (was, doesn’t own a crematory). Includes owners of more than one chapel as those persons who may use the terms "crematory," "crematorium," or "crematory center" in its name if the there is a crematory license on the premises. Provides for temperature levels as part of the cooling requirements for deceased bodies (currently, covers embalmed human remains and no specificity on temperatures).

Expands the fee schedule set forth in GS 90-210.28 to cover branch funeral establishments. Instead of requiring the Board to provide copies of its rules and governing statutes to the applicants for licensure, directs the Board to publish the current statutes and rules related to the practice of funeral service on its website. Expands the identification requirements in GS 90-210.29A to licensees under Article 13F of GS Chapter 90 and authorized representatives of the described licensees. Requires the licensee or representative thereof to place an identification tag upon the body upon taking physical custody of the body. Makes technical and clarifying changes.

Specifies that the listed Board records in GS 90-210.29B relating to investigation of its licensees are also not subject to discovery, subpoena, or other means of legal compulsion for release to any person other than the Board, its employees, or consultants involved in the application for license, assessment, or discipline of a license holder (currently, just nonpublic records). Makes clarifying changes to the description of those records. Expands the type of Board actions tied to those records to include inquiries or assessments conducted in connection with a licensing, complain, or disciplinary matter. 

Part IV.

Amends Article 13D, Preneed Funeral Funds, as follows.

Amend GS 90-210.60, which sets out definitions that apply to the Article as follows. Adds and defines the term cash advance item as any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf; sets out items that may be included. Amends the definitions of preneed funeral contract and preneed funeral funds by excluding from the terms the furnishing of outer burial containers, or pre-installed interment receptacle sold by a cemetery that is regulated by the Cemetery Commission. Makes technical changes.

Amends GS 90-210.61 to allow funds deposited in trust under a revocable or irrevocable preneed funeral contract (was, under a revocable standard preneed funeral contract) to be withdrawn and used to purchase a pre-arrangement insurance policy. Specifies that this should not be construed to permit the revocation of an irrevocable preneed funeral contract and all funds withdrawn from the trust must be applied to the purchase of a pre-arrangement insurance policy (was, no funds deposited in trust in a financial institution can be withdrawn by the trustee to purchase a pre-arrangement insurance policy, except as provided in this provision).

Amends GS 90-210.62 adding that a person purchasing a preneed funeral contract may specify in writing religious practices that conflict with this Article and Articles 13A (Practice of Funeral Service) or 13F (Cremations) of GS Chapter 90. Requires the preneed licensee to observe those religious practices except where they interfere with cremation or the required documentation and record keeping.

Amends GS 90-210.63 concerning substitution of a different funeral establishment when a preneed funeral contract is irrevocable, as follows. Requires when a preneed funeral contract is funded by a trust deposit that the financial institution pay the funds to the successor preneed licensee (was, pay funds to the original contracting preneed licensee who was to then immediately pay the funds to the successor). Makes conforming changes. Provides that the successor preneed licensee is to deposit all of the funds in a trust or insurance product (was, in a financial institution if the preneed funeral contract beneficiary is still alive); no longer states that the specified provisions of the statute must not be construed to allow the use of the transferred funds to purchase a prearrangement insurance policy.

Amends GS 90-210.64 making conforming changes and specifying that the impacted licensee is the performing preneed licensee (including changing references to a contracting preneed licensee to performing preneed licensee). Adds the requirement that the performing preneed licensee give the contracting preneed licensee a copy of the certificate of performance at the same time it is submitted to the Board on or before 10 days of payment.

Amends GS 90-210.67 prohibiting the renewal of preneed funeral establishment permits that are expired six months or more and requires reapplying for licensure. Specifies that the Board may extend the bond requirement for a new preneed establishment license or for a license that has lapsed or been terminated, beyond five years if there is a claim paid from the bond. Clarifies that the late fees apply after February 1 (was, on or after).

Amends GS 90-210.68 amending the content of the preneed licensee’s annual pretor so that it is on the preneed funeral contract sales during the previous calendar year, including the total number, status, and type of each preneed contract for which the preneed licensee serves as trustee, the total year-end balance of each contact, and the status of each preneed contract. Requires, when a preneed licensee transfers or assigns its assets or stock to a successor funeral establishment, that the successor funeral establishment be in good standing with the Board (in addition to being a preneed licensee) in order to avoid having to apply for a license. Amends disclosure requirements to now require financial institutions accepting preneed funeral trust funds and, for any insurance policy naming a funeral establishment as an assignee or beneficiary, that the issuing or underwriting insurance company, upon request of the Board or its inspectors, to disclose information on the preneed funeral trust accounts or any insurance policy that names a funeral establishment as an assignee or beneficiary. Requires financial institutions accepting preneed funeral trust funds and, for any insurance policy naming a funeral establishment an assignee or beneficiary, for the insurance company to also forward the account balance or policy status and current death benefit to the contracting preneed funeral establishment or the funeral establishment named as an assignee or beneficiary at the end of the year. Requires when a license lapses or is terminated that the preneed licensee transfer unperformed contracts and retained amounts to a successor preneed funeral establishment licensee that is in good standing with the Board. Requires notifying the Board 30 days before the transfer and requires notice to contract purchasers and financial institutions housing funds or issuing the issuing or underwriting insurance company within 30 days after the transfer.  

Amends GS 90-210.69 as follows. Allows the Board, when necessary to protect the interest of a preneed contract purchasers or beneficiary, to issue a written order directing the preneed funds of any preneed licensee on deposit in any institution or organization and operating under this Article be frozen and not paid out. Provides immunity to a legal entity freezing the preneed funds under the Board’s direction. Adds that the Board may place on probation, refuse to issue or renew, suspend, or revoke a preneed license when an owner, partner, manager, member, operator, officer, or preneed salesperson of the preneed funeral licensee violates this Article or any Board rules, or when any agent or employee of the preneed funeral establishment, with consent of any person, firm, or corporation operating the funeral establishment, violates any of these provisions, rules, or regulations. Amends the conditions under which the Board may refuse to issue or renew a license or suspend or revoke a license or place the license holder on probation, to now include: (1) conviction of, or plea of guilty or nolo contendere to, a felony or a misdemeanor that indicates that the individual is unfit or incompetent to engage in preneed funeral service or that the individual has deceived or defrauded the public (was, conviction for a crime involving fraud or moral turpitude); (2) violating or cooperating with others to violate Articles 13A (Practice of Funeral Service), 13E (Mutual Burial Associations), or 13F (Cremation); (3) failure to refund any insurance proceeds received as consideration in excess of the funeral contract purchase price within days of receipt (excludes interest or growth on funds paid toward funeral goods and services to be provided pursuant to an inflation-proof preneed contract); (4) 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 but not fulfilled; (5) violation of GS 58-58-97. 5 (Provision of life insurance information upon notification of insured's death); and (6) failure to respond to the Board's inquiries in a reasonable manner or time regarding any matter affecting the individual's performance of preneed funeral services. Adds that revocation of a funeral establishment permit results in the automatic revocation of the firm's preneed funeral establishment permit; active suspension of a funeral establishment permit results in the automatic active suspension of the firm's preneed funeral establishment permit for the same length of time.

Amends GS 90-210.72 amending venue for actions brought by the Board for a restraining order and injunction so that it can be brought in Wake County, as an alternative to the superior court of any county where the acts are alleged to have been committed or the county where the defendant resides.

Amends GS 90-210.73 specifying that the following records or documents, in addition to not being subject to GS Chapter 132 (public records), are also not subject to discovery, subpoena, or other means of legal compulsion for release: (1) preneed funeral contracts filed with the Board (was, the name and address of the preneed funeral contract purchasers and beneficiaries); and (2) all financial information used to demonstrate solvency in connection with a required bond or application for a preneed funeral establishment permit (was, required bond only).

Makes conforming organizational changes to the act.