Part I.

Section 1.

Directs that, on or after July 1, 2028, but no later than July 1, 2029, the local ABC boards will cease operations of any ABC stores and transfer all real property owned by the board and any fixtures and inventory used in the operation of ABC stores by public sale to the highest qualified bidder or bidders. Lists three requirements governing the ABC store sales, including that the inventory, fixtures, permit, and store location, including real property (if owned by the local ABC board), be sold as a package. Specifies that if a city or county has authorized the establishment and operation of an ABC store prior to July 1, 2027, and that city or county votes against off-premises spirituous liquor sales before July 1, 2028, the local ABC board applicable to that city or  county must do both of the following: (1) sell any spirituous liquor within their possession in the applicable city or county to a liquor wholesaler permitted under GS 18B-1109.1, as enacted by Part IV of the act and (2) offer any real property and fixtures for sale in any manner otherwise authorized by law. Clarifies that the act does not relieve an ABC Board of its debts or liabilities and prioritizes payment of any funds received under the act to satisfy said debts or liabilities, with any remaining distributed pursuant to GS 18B-805(e).

Tasks the ABC Commission (Commission) with developing a bid process by March 1, 2028. Directs, on July 1, 2029, for the Commission to cease the operation of the State warehouse. On or after July 1, 2029, and no later than December 31, 2029, directs the Commission to sell any remaining inventory of spirituous liquor (spirits) held in the State warehouse to a liquor wholesaler, described above.  Directs for any funds received to be used first to pay any amount owed to a distiller for inventory held in the warehouse, and any remaining funds shall be remitted to the General Fund to be used to fund education. Tasks the Department of Administration (DOA) with initiating proceedings to separate off and sell the described real property after the Commission ceases operations and sells off its inventory of spirits. Provides for priority use of sale proceeds and an appraisal. Requires DOA to assign the Commission office space by December 31, 2030. Of the funds appropriated to the Department of Public Safety (DPS) in Section 40.4(a) of SL 2023-134 for advance planning on a new ABC campus, directs any unexpended and unencumbered funds to revert to the General Fund.

Effective July 1, 2027.

Part II.

Section 2.

Makes the following changes to Article 6 of GS Chapter 18B (ABC Elections).  Replaces references to “ABC store” with “Off-premises spirituous liquor (liquor)” or “off-premises sale of spiritous liquor” and “an ABC store that is designated as a mixed beverage ABC store” to “package store” throughout the Article. Removes references to the Commission’s authority to sell liquor throughout the Article. Makes technical and conforming changes throughout the Article.

Sets the following requirements for a city holding an off-premises spirituous liquor elections in GS 18B-600 (places eligible to hold ABC elections): (1) retains population requirement applicable to ABC stores; (2) the county where the city is located does not allow the off-premises sale of spiritous liquor; and (3) at least one other city in the county allows the off-premises sale of spirituous liquor. Authorizes the commission to issue liquor permits to qualified persons in the jurisdiction in GS 18B-603 if the off-premises sale of spirituous liquor is approved.

Deems any city or county that has authorized the establishment and  operation of an ABC store prior to July 1, 2027, to have authorized the off-premises sale of spirituous liquor for purposes of Article 6 , as amended by the act, unless the city or county votes against authorizing off-premises spirituous liquor sales before July 1, 2028. A city or county that votes against off-premises spirituous liquor sales before July 1, 2028, may continue to operate ABC stores until July 1, 2029. If any city or county holds an off-premises spirituous liquor election on or after July 1, 2027, but prior to July 1, 2028, and the off-premises sale of spirituous liquor is approved, no off-premises sale of spirituous liquor is allowed until July 1, 2028.

Effective July 1, 2027, and applies to elections held on or after that date.

Part III.

Section 3.

Makes the following changes to Article 7, “Local ABC Boards,” in GS Chapter18B. Replaces references to “ABC store” with “Off-premises spirituous liquor (liquor)” or “off-premises sale of spiritous liquor” and “an ABC store that is designated as a mixed beverage ABC store” to “package store” throughout the Article. Removes references to the Commission’s authority to sell liquor throughout the Article. Makes technical and conforming changes throughout the Article.

Modifies the mission of local ABC Boards in GS 18B-700 so that it is now monitoring the sale of spirits and managing funds received as a result (was, controlling the sale of spirits and promoting customer friendly, modern, and efficient stores). Removes provisions pertaining to compensation of general managers (GM) of local boards and nepotism. Removes GM’s from the list of persons requiring to be bonded under the statute.

Removes most of the provision of GS 18B-701, listing the powers and duties of the local ABC Boards, except the following new and existing duties: (1) to authorize the operation of package stores, (2) distribute funds received pursuant to GS 105-113.82, (3) employ local ABC officers or make other provisions for enforcing ABC law, and (4) performing any other activity authorized or required by ABC law. Limits the local board’s duty to comply with the Commission’s rules under GS Chapter 18B, and removes provisions specifying requirement to meet all standards for performance and training established by the Commission.  

Removes all of the provision of GS 18B-702, the financial operations ABC Boards, except as follows. Retains the provisions listing the duties and powers of the finance officer, but removes duty to file a statement of financial condition of the local board and to supervise the investment of idle funds. Narrows the compliance obligations governing disbursement of local board funds so that it just Chapter 18B (currently, also the budget, preaudit obligations, and disbursements). Removes references to supervising money handled by authorized employees. Adds provisions requiring a local board to make specified statutory distributions of funds received pursuant to GS 105-113.82. Provides for other distributions after making the statutory distributions to the general fund of the city or county where the board is established, so long as no other distribution or schedule is provided for by law. Provides for expenditures of alcoholism funds.  Now prohibits a local board from borrowing money. Retains provisions pertaining to the applicability of criminal statutes and local acts.

Replaces references to “ABC system” with “ABC board” throughout GS 18B-703 (merger of local ABC board (currently, operations)). Removes provisions governing agreements for joint store operations. Replaces reference to “stores operated by the systems of” with “package stores” in the subject jurisdiction that serve the same general area as one of the conditions for merger. Requires the involved parties to agree upon a formula to distribute the funds received pursuant to GS 105-113.82 (was, formula for profit distribution).

Repeals GS 18B-705 (compliance with performance standards), GS 18B-707 (authorization to sample spirituous liquor products) and GS 18B-708 (sale of certain spirituous liquors below distiller’s price).

Adds new GS 18B-709, pertaining to authorizations of additional package stores. Imposes the following population requirements on the amount of package stores that may be authorized by a local board:

• If the jurisdiction of the local ABC board has a total population of less than 100,000, not more than one store per 20,000.
• If the jurisdiction of the local ABC board has a total population of at least 100,000 but less than 250,000, not more than one store per 25,000.
• If the jurisdiction of the local ABC board has a total population of 250,000 or more, not more than one store per 30,000.

Specifies that if a jurisdiction holds a liquor election and is required to merge with an existing local board, the merged local board may authorize at least one package store within the jurisdiction that held the election. Any additional stores must meet the above population requirements.  Requires Commission approval for the location of package stores, as described. Prevents a local board from placing a package store in a location where the municipality’s governing board has passed an ordinance barring package stores there after an evidentiary hearing on the matter. Allows for municipal objection to a location.

Specifies that any ABC store in operation by a local board on July 1, 2027, may be sold, and the authority to operate as a package store is  valid. From July 1, 2028, until June 30, 2029, specifies that the amendments to Article 7  apply to local ABC boards that have ceased operation of ABC stores. Local ABC boards that have not yet ceased operation of ABC stores during this period will continue to have any necessary authority provided by Article 7 as it reads on June 30, 2028. On July 1, 2029, the provisions of this section apply to all local ABC boards.

Effective July 1, 2028, except as provided above.

Part IV.

Section 4.

Makes the following changes to Article 9, “Issuance of Permits,” of GS Chapter 18B. Provides for an off-premises spirituous liquor (liquor) permit in GS 18B-900 (permit qualifications). Sets the liquor permit fee at $1,000 in GS 18B-902. Makes conforming changes to GS 18B-903 to account for new liquor permit.

Section 5.

Makes the following changes to Article 10, “Retail Activity” of GS Chapter 18B. Defines package store in GS 18B-1000 (definitions concerning establishments) and excludes a package store from a retail business. Allows off-premises fortified wine permits in GS 18B-1001 (kinds of ABC permits) to be issued for package stores. Creates the off-premises spirituous liquor permits, authorizing the retail sale of spirituous liquor in the manufacturer's original container for consumption off the premises, only issued to package stores. Requires warning signage. Makes conforming change to GS 18B-1004  (hours for sale and consumption) to account for liquor permits.

Section 6.

Makes the following changes to Article 11, “Commercial Activity” of GS Chapter 18B. Replaces references to “ABC store” with “Off-premises spirituous liquor (liquor)” or “off-premises sale of spiritous liquor” and “an ABC store that is designated as a mixed beverage ABC store” to “package store” throughout the Article. Removes references to the Commission’s authority to sell liquor throughout the Article. Makes technical and conforming changes throughout the Article.

Creates a liquor wholesaler commercial permit in GS 18B-1100 (commercial permits).  Expands the persons in GS 18B-1105 to whom holders of distillery permits may sell, deliver, and ship spirits to include licensed wholesalers under GS Chapter 18B so long as the spirits are not for resale in the State. Clarifies that the above does not prohibit the distiller from selling spirits to the described nonresident sellers for resale in the State if it’s shipped from the distillery to wholesalers licensed under GS Chapter 18B. Removes requirement that spirits sold must be listed as a code item and sold at a price set by the Commission. Authorizes the holder of a distillery permit to obtain a liquor wholesaler permit to sell, deliver, and ship at wholesale the described amounts of spirits. Provides for sales reports to the Commission.

Deletes the provisions of GS 18B-1105.1 (authorization of liquor importer bottler permit), except the following. Allows the holder of a liquor importer/bottler permit to import spirits from outside the US in closed containers and to bottle, package, or label imported spirituous liquor. Adds provisions allowing those permit holders to store and sell the spirits to liquor wholesalers for resale. Adds GS 18B-1109.1 (authorization of liquor wholesaler permits) enumerating four powers granted to those permit holders, including to receive, possess, and transport spirits.  Replaces reference to “local boards” with “liquor wholesalers” in GS 18B-1110.1 (authorization of packaging and logistic permit). Expands the authorizations for a holder of a salesman permit under GS 18B-1111 to sell and transport spirits for a liquor wholesaler. Makes conforming change to GS 18B-1113.1 to account for resale provisions of GS 18B-1005. Specifies that the spirits have to come to rest at the licensed premises of a liquor wholesaler in the State before being resold to a package store. Removes definition of distillery in the statute.

Prevents the sale of mixed beverages in conjunction with a consumer tasting at package stores under GS 18B-1114.7 (authorization of spirits for special events). Removes provisions placing additional limits on tastings on ABC stores. Now limits delivery of spirits to a liquor wholesaler, for delivery to an off-premises spirituous liquor permit holder, for delivery to a mixed beverages permit holder, or transport through the State to another state (was, delivery to ABC store or for transport to another state) in GS 18B-1115. Removes references to State code in requirements for a bill of lading. Expands the requirements for transportation by boat to spirits. Removes provisions pertaining to state warehouse carriers. Expands the purchase restrictions in GS 18B-1118 to liquor wholesalers and liquor importers/bottlers. Makes conforming change to account for sale of spirits by liquor wholesalers and liquor importers/bottlers.

Section 7.

Enacts Article 14, “Spirituous Liquor Franchise Law” to GS Chapter 18B, as follows. Provides for liberal construction of the Article to promote the four listed underlying purposes and policies. Emphasizes that the effect of new Article 14 may not be waived or varied by contract or agreement. Any contract or agreement purporting to do so is void and unenforceable to the extent of that waiver or variance. Exempts a North Carolina distillery holding a valid liquor wholesaler permit from new GS 18B-1404, 18B-1405, and 18B-1407. Defines four terms, including agreement (a commercial relationship between a liquor wholesaler and a distillery. The agreement may be of a definite or indefinite duration and is not required to be in writing. Lists five scenarios that are prima facia evidence of an agreement.)

Prohibits distilleries from engaging in or attempting to perform any of the four listed acts of inducement, coercion, or discrimination in GS 18B-1402.

Requires, in GS 18B-1403, for each agreement to designate the sales territory of the wholesaler. Prohibits distilleries from entering into more than one agreement for each brand of spirituous liquor or beverage it offers in any territory. Prevents wholesalers from distributing any brand of spirituous liquor to a package store whose premises are located outside the territory designated in the wholesaler's agreement for that brand. Allows a wholesale to distribute spirits outside of its territory with Commission approval under the circumstances described. Requires redesignations of sales territories after July 1, 2028, to be reported to the Commission in 30 days. Requires wholesalers to service package stores without discrimination and to make good faith efforts to provide any brand of spirits it is authorized to distribute in the territory. Prevents in GS 18B-1404 a distillery from acting to amend, cancel, terminate, or refuse to continue to renew any agreement, or cause a wholesaler to resign from an agreement, unless good cause (defined) exists for the refusal to continue with the agreement under GS 18B-1405. Provides process for a distillery’s notice of intent to terminate an agreement. Prohibits a distillery from acting to unreasonably withhold or delay consent to any transfer of the wholesaler's business whenever the wholesaler to be substituted meets the material and reasonable qualifications and standards required of the distillery's wholesalers under GS 18B-1406. Allows distilleries to object to a transfer of a wholesaler’s business to members of the wholesaler’s family (defined). Provides for judicial remedies. in GS 18B-1407, Prohibits price fixing, discrimination, and retaliatory action by a distillery. Prohibits a distillery from interfering with the wholesaler’s change of management or personnel unless the current or potential management or personnel fails to meet reasonable qualifications and standards required by the distillery. Prohibits a distillery from requiring a waiver of any of the conditions of GS Chapter 18B. Clarifies, in GS 18B-1413, that a purchaser of a distillery and their successors are subject to all the terms and conditions of an agreement, except if any of the four instances of good cause exist. Enumerates three prohibited practices in GS 18B-1414. Specifies the Article’s intent to prohibit discrimination on the basis of the listed protected classes in GS 18B-1415. Clarifies, in GS 18B-1416, that nothing in the Article relieves a distillery or wholesaler of any obligation, duty, or prohibition imposed by any other provision of GS Chapter 18B or by GS 75-1.1 or by any other provision of State law, and the remedies provided in the Article are nonexclusive.

Section 8.

Specifies that sections 4 through 7 become effective January 1, 2028. The Commission may issue liquor wholesaler permits beginning January 1, 2028, but must limit the permits such that a liquor wholesaler may not sell spirituous liquor to any package store until July 1, 2028.

Part V.

Section 9.

Makes the following changes to Article 1, “General Provisions” of GS Chapter 18B. Replaces references to the operation or establishment of an ABC store with “the off-premises sale of spirituous liquor is lawful” throughout the Article. Replaces references to “ABC stores” with “package stores.” Makes technical and conforming changes.

Expands the types of permits that the Native American tribes may issue in their territories under GS 18B-112 to include spirits.  

Section 10.

Makes the following changes to Article 2, “”state administration” of GS Chapter 18B. Replaces references to the operation or establishment of an ABC store with “the off-premises sale of spirituous liquor is lawful” throughout the Article. Replaces references to “ABC stores” with “package stores.” Makes technical and conforming changes.

Narrows the Commission’s authority under GS 18B-203 to approve or disapprove the location of package stores (currently approves the opening and location of ABC stores). Removes provisions from the enumerated list of Commission powers pertaining to construction of warehouse and distribution of spirits. Expands its power pertaining to warning signs to include providing them to spirituous liquor permittees. Deletes provisions of GS 18B-208 (Commission bonds and funds) except the following. Retains provisions of the ABC Commission Fund and makes the following changes. Removes outdated language. Removes provisions relating to bonds and bailment surcharges, as described.

Section 11.

Makes the following changes to Article 3, “sale, possession, and consumption to GS Chapter 18B. Removes references to ABC store in GS 18B-301. Makes it unlawful for a person to consumer the listed alcoholic beverages on the premises of a package store holding an off-premises spirituous liquor permit.

Section 12.

Allows a mixed beverage permittee to purchase spirits from either an ABC store or a package store in its county in GS 18B-404 (currently, just ABC store).

Section 13.

Removes provisions in GS 18B-503 pertaining to the sale of spirits only allowing the sale of  such seized alcohol to the local ABC board serving the city or county in which the liquor was seized or the closest ABC board if none exists. Instead, adds spirits to the sale procedure set forth in the statute.

Section 14.

Applies GS 18B-808’s warning signage requirements to package stores. Makes conforming changes.

Section 15.

Makes the following changes to Article 10, “retail activity,” of GS Chapter 18B, as modified by the act.  Allows a mobile bar services permittee in GS 18B-1001 to purchase spirits from a package store and an ABC store (currently, can only purchase from an ABC store that sells spirits). Allows mixed beverages permittees to purchase spirits from a package store or an ABC store.

Section 16.

Sections 9 through 15 of this act become effective July 1, 2028, and expire June 30, 2029.

Part VI.

Effective July 1, 2029, makes the following revisions to GS Chapter 18B after the phase out of ABC stores.

Section 17.

Removes ABC system, bailment surcharge, and general manager from GS Chapter 18B’s general definitions. Replaces references to the operation or establishment of an ABC store with “the off-premises sale of spirituous liquor is lawful” in special ABC area. Modifies finance officer. Removes the Governor’s power to order the closure of all ABC stores during a state of emergency in GS 118B-110. Removes provisions of GS 18B-112 authorizing the Commission to enter into agreements with Native American tribes to sell spirits. Allows for the two named tribes to adopt ordinances to sell spirits.

Section 18.

Removes references to the local ABC board in GS 18B-121 (claims for relief created for sale to underage person) and GS 18B-124 (joint and several liability).

Section 19.

Removes the listed enumerated powers of the Commission that relate to State ABC warehouses, local ABC stores, bailment charges, and the distribution of spirits to the listed federal entities in GS 18B-203. Replaces reference to local ABC store with “off-premises spirituous liquor premises” in enumerated power relating to signage. Allows the Commission to approve the opening and location of any off-premises spirituous liquor premises (was, approval of ABC stores). Tasks the Commission with developing warning signage pertaining to alcohol consumption during pregnancy. Repeals GS 18B-204 (state warehouses) and GS 18B-205 (required accounts and reports).  Removes provisions of GS 18B-208 (Commission bonds and funds) pertaining to bailment surcharges, issuing bonds, and outdated language.

Section 20.

Removes references to “ABC store/ABC store employee” or replaces those references with “a package store,” as described in GS 18B-301 (possession of fortified wine and spirituous liquor) and GS 18B-305 (other prohibited sales).

Section 21.

Removes references to ABC stores and electronic payments in GS 18B-404 (additional provisions for purchase and transportation by mixed beverage permittees).

Section 22.

Replaces references to “local board” with “package stores.”  Removes provisions limiting sales of spirits to ABC stores in GS 18B-503 (disposition of seized alcoholic beverages). Expands the provisions pertaining to sale of forfeited alcohol by public auction to include spirits.  Removes references to the local board in provisions authorizing a judge to order delivery of forfeited property in GS 18B-504 (pertaining to forfeiture).

Section 23.  

Repeals Article 8 of GS Chapter 18B, pertaining to the operation of ABC stores.

Section 24.

Makes the following changes to Article 10 of GS Chapter 18B, as amended by the act. Modifies the mobile bar services permit under GS 18B-1001 to direct permittees to purchase spirits from package stores (was, ABC stores). Now allows a guest room cabinet permit to be issued to the described golf course  holding a mixed beverages permit or located in a county the off-premises sale of spirituous liquor has been established (was, where ABC stores have been established). Replaces references to “operation of an ABC stores” with “off-premises sale of spirituous liquor” in GS 18B-1006 (miscellaneous provisions). Replaces references to the described ABC store in GS 18B-1007 with “package store.”

Section 25.

Replaces references to the “establishment of ABC stores” with “off-premises sales of spirituous liquor” in GS 18B-1114.1 (authorization of winery special event permit) and GS 18B-1114.5 (authorization of malt beverage special event permit).

Sections 16-25 are effective July 1, 2029.

Part VII.

Section 27.

Makes the following changes to Article 2C, “alcoholic beverage license tax and excise taxes” of GS Chapter 105.

Amends wholesaler or importer in GS 105-113.68 (definitions) so it applies to wholesalers and importers of spirits and includes distilleries that sell spirits, or spirits produced for the permittee under contract, at wholesale to a package store or at retail. Includes distillery permits, liquor importer/bottler permits, and liquor wholesaler permits in the types of permits to whom the definition applies. Adds a $15 off-premises spirits fee to GS 105-11.77 (city retail licenses) and a $25 off-premises spirits fee to GS 105-11.78 (county retail licenses) and makes conforming change to each statute’s title. Adds liquor wholesalers as one of the entities to obtain a city wholesaler license under GS 105-113.79. Makes conforming changes. Increases the excise tax on spirits from 30% to 60% under GS 105-113.80 (excises taxes on malt, wine and liquor) for sales in package stores (was, ABC stores). Specifies that the price of the liquor is calculated at the wholesale’s price (was, seller’s price plus ABC add-ons). Expands the circumstances under which exemptions are allowed in GS 105-113.81 to include spirituous liquor.

Expands the net amount of the excise taxes that the Secretary must distribute under GS 105-113.82 (pertaining to distribution of alcoholic beverage taxes) to include spirituous liquor. Makes organizational changes. Requires the Secretary to now distribute 30% of the tax on spirits to the local ABC board in counties or cities in which the off-premises sale of spirituous liquor is authorized. Specifies that if more than one county or city in which the off-premises sale of spirituous liquor is authorized are served by a single local ABC board, the local ABC board will receive the portion of the amount distributed that is attributable to each city and county within the board's jurisdiction, that portion to be determined on the basis of population. Limits the use of funds distributed to ABC boards to those set forth in new GS 18B-702. Provides for additional distributions to DHHS, DPI, and the Commission in the amounts specified. Makes conforming changes, including to statute title. Amends GS 105-113.83 (payment and reporting of excise tax) so that the monthly payment is now made by a resident wholesaler or importer who first handles the liquor 27 in this State and by a distillery if the liquor is sold to the consumer at the distillery. Tasks the wholesaler or reporter with the reporting requirement (was, ABC board).

For the taxable year beginning July 1, 2028, and ending June 30, 2029, the amendments provided in this section apply only to spirituous liquor distributed by wholesalers and importers and sold in package stores. Spirituous liquor sold in ABC stores will continue to be taxed pursuant to Article 2C of GS Chapter 105 as it reads on June 30, 2028. For the taxable year beginning July 1, 2029, the provisions of this section apply to all spirituous liquor.

Effective for taxes imposed for taxable years beginning on or after July 1, 2028, except as otherwise provided.

Part VIII.

Section 28.

Applies GS 105-251.2 to liquor wholesalers, effective July 1, 2028, and expires June 30, 2029.

Effective July 1, 2029, deletes reference to ABC store and continues to apply GS 105-251.2 to liquor wholesalers.

Section 29.

Amends GS 150B-1(d) (exemptions from rulemaking) so that ABC determinations relating to package stores are exempt, effective July 1, 2028, and expires June 30, 2029. Effective July 1, 2029, deletes provisions to ABC warehouses so that the Commission’s decision pertaining to alcoholic beverages sold in package stores are only subject to the exemption under GS 150B-1(d).

Part IX.

Effective July 1, 2027, unless otherwise specified.

Part I titles the act as the Workforce Act of 2026 and specifies the purpose of the act's appropriations.

Part II.

States legislative findings. Appropriates $3.1 million in recurring funds from the General Fund to the Community Colleges System Office (Office) for 2026-27 to administer the ApprenticeshipNC program.

Part III.

States legislative findings. Appropriates $350,000 in recurring funds from the General Fund to the Department of Commerce (Department) for 2026-27 to be used for operational expenses and staffing to support NC Workforce Credentials pursuant to the act and state law. Directs the Department to engage employers to provide workforce data and link data on industry-valued credentials to five labor market outcomes, including wage outcomes and work location. Requires consultation with the Office, UNC System, and other stakeholders to align with the rules and regulations of federal Workforce Pell Grants and institutionalize workforce data sharing across State government. Directs the Department to encourage entities issuing industry-valued credentials to submit data to the NC Longitudinal Data System for incorporation into the System's warehouse. Requires the Department to give substantial weight to demonstrated wage outcomes and evidence that a credential provides students a positive return on investment. Authorizes the Department to use up to $50,000 each fiscal year for outreach and communications.

States legislative findings. Amends GS 115D-10.19 to authorize the Office to use up to 4% of funds appropriated to the NC Community College Short-Term Workforce Development Grant Program for administration of the Program. Appropriates $1 million in recurring funds from the General Fund to the Office for 2026-27 for the NC Community College Short-Term Workforce Development Grant Program.

Part IV.

Directs the State Education Assistance Authority to incorporate private colleges and universities in the State into the common digital transcript developed pursuant to SL 2023-134, Section 8A.15. Requires consultation with specified State entities. Directs the SEAA to report to the specified NCGA committee by March 15, 2027. Specified required content.

Part V.

States legislative findings. Directs the UNC System Office to expand the current initiative for the 2026-27 academic year to accelerate the transfer of course credits among postsecondary institutions using postsecondary transfer technology. Requires consultation with the Community Colleges System Office. Requires the expansion to provide and improve technology at participating institutions to simplify the credit transfer process, compare credit transfer options, and make decision making more efficient for students. Appropriates $2.5 million from the General Fund to the UNC Board of Governors (BOG) for 2026-27 for the expanded initiative and requires the funds be used to identify and develop programs to accelerate the transfer of postsecondary course credits. Directs the UNC System Office to report to the specified NCGA committee by March 15, 2027. Specifies required content.

States legislative findings. Appropriates $1.5 million in nonrecurring funds from the Information Technology Reserve to the Department for 2026-27 to enhance NC Careers.

Part VI.

Directs the NC Collaboratory to evaluate programs and initiatives established in Parts I through V of the Act each academic year through 2029-30 and annually report to the specified NCGA committee by March 15. Specifies required content. Appropriates $600,000 from the General Fund to the UNC BOG for 2026-27 to be allocated to the Collaboratory for required evaluation and reporting.

Part VII.

Effective July 1, 2026.

Expands the eligibility requirements of the Film and Entertainment Grant Fund (Fund) in GS 143B-437.02A so that the funds are reserved for both online streaming productions as well a television series at $500,000 per episode (was, just TV series). Increases the caps on funds as follows: (1) from $7 million to $20 million for a feature-length film or single season of episodes intended for online distribution (was, just feature-length film) and (2) from $15 million to $25 million for a single season of a TV show. Specifies that the grant amount for the first season of a TV show, when added to any grant for a pilot episode, cannot exceed $25 million.  Now prohibits funds from being awarded to recorded concerts or other live performance events for theatrical or other release. Removes game shows from the types of productions that cannot receive funds from the Fund. Modifies definition of “highly compensated individual” to an individual who receives compensation in excess of $4 million (was, $1 million). Makes conforming change to definition of qualifying expenses. Defines production for an online show as all the episodes produced for a single calendar year, provided there are at least six episodes with an average running time of at least 20 minutes. Removes the statutory cross-reference to production company and defines the term as a person engaged in the business of making original motion pictures or video content for theatrical, commercial, advertising, or educational purposes. Sets forth qualifying expenses for game shows and productions that document purportedly unscripted real-life situations primarily using unfamiliar people in lieu of professional actors.

Creates a Micro-Budget Productions Account (Account) in the Fund to provide grant funds to encourage smaller productions to develop the filmmaking industry within the state in the amounts described. Requires the production company to have qualifying expenses of at least $50,000 in the state but no more than $1,499,000 for the production. Also requires that the production have at least 75% of the filming occur in the state by or with a production company with company headquarters in the state. Instructs the Department of Commerce (DOC) to adopt guidelines providing for Account administration, including the grant awards for those micro-budget productions described in the statute.

Appropriates $1.5 million from the General Fund to DOC for 2026-27 to the Account for purposes consistent with the act. Effective July 1, 2026.

Applies to grants made on or after July 1, 2026.

Adds new GS 113A-115.2 establishing a pilot program to authorize construction of shoreline stabilization pilot projects (Project[s]) at locations statewide where oceanfront homes face imminent danger of being lost to the ocean. Tasks the NC Collaboratory (Collaboratory) with evaluating potential locations and recommending a limited number of pilot projects sufficient to evaluate different shoreline conditions, erosion risks, and management approaches, based on the five enumerated criteria.  Requires the Division of Coastal Management (DCM) with the Collaboratory to establish monitoring periods for the projects, including a defined monitoring period. Instructs DCM and the Collaboratory to submit reports on the monitoring to the specified NCGA committee and Environmental Management Commission (EMC) within 60 days after the conclusion of each project’s monitoring period. Requires either the local government or homeowner’s association with jurisdiction over a Project location to do the following: (1) fund the Project in its entirety; (2) obtain all governmental permits and authorizations required; and (3) post bond or other financial assurance prior to construction. Exempts that governing entity from the limitations on erosion controls in GS 113A-115.1 for the duration of the Project (the period during which the stabilization structure is in place and active monitoring is being conducted) to terminate upon the removal of the structure, expiration or revocation of the permit, or a final agency determination requiring removal, whichever occurs first.

Appropriates $850,000 from the General Fund to the Collaboratory to carry out the evaluation described above and to update the State's Beach and Inlet Management Plan, as described.

Directs the Department of Environmental Quality to amend the management program it adopted pursuant to the federal Coastal Zone Management Act to ensure the management program is consistent with GS 113A-115.2, as enacted by the act, and seek approval of the proposed amended management plan by the United States Secretary of Commerce or the Secretary's authorized designee no later than six months after the act becomes law.

Titles the act as the "Framework for Upgrading Technology, Utilities, Resiliency, and Economies (FUTURE) NC Infrastructure Act." States legislative findings and the act's purpose. Establishes a 10-member NC Infrastructure Investment Commission (Commission) with four members appointed by the NCGA, two members appointed by the Governor, and four members appointed by the State Treasurer. Requires appointment of initial members within 60 days of the act becoming law and a first meeting within 30 days of appointment of a quorum. Provides for the Commission's chair, meetings, staffing and expenses. Houses the Commission within the Department of State Treasurer. Directs the Commission to develop a comprehensive statewide infrastructure investment plan that provides a long-term vision. Lists eight elements the Commission may consider including a 20-year framework for infrastructure investment that addresses the major needs across transportation, water, wastewater, stormwater, resiliency, and other critical systems, and exploration of six funding strategies. Requires the Commission to submit an interim plan to specified NCGA leaders, committees, and the Governor within 12 months of its first meeting, and a final plan by March 31, 2028. Prohibits State implementation without NCGA approval. Terminates the Commission upon submission of the final plan and transfers Commission records to the State Treasurer for retention. 

Appropriates $300,000 from the General Fund to the Department of State Treasurer for 2026-27 for administration of the Commission. Effective July 1, 2026.

Amends Article 14A, Part 2 of GS Chapter 115C (Operation of Charter Schools) to prohibit charter schools from being managed or serviced by for-profit education or charter management organizations. Authorizes management or services by nonprofit education or charter management organizations. Applies to contracts entered into on or after July 1, 2026.

Amends GS 115C-218.122(c) to provide that remote charter academies shall (was, may) require in-person attendance to fulfill state mandated student assessments in accordance with new GS 115C-174.17. Makes organizational changes. 

Enacts GS 115C-174.17 directing the Department of Public Instruction to develop an in-person testing program for remote charter school students to complete all State-mandated assessments. Sets out minimum program requirements.

Amends GS 115C-218.123(b) to require Review Board approval of charter or charter modification to create a remote charter academy every year (was, five years).

Amends GS 115C-218.124 to require a nonprofit with a school code for in-person instruction in addition to a school code for a remote charter academy to provide separate financial reports for each school code (was, jointly). Requires remote charter academies to submit a financial audit of the previous year with its renewal application. Reduces the renewal term to one year (was, five years) and provides that a remote charter academy identified as low-performing is not eligible for renewal.

Applies to applications for new charters or renewals submitted on or after July 1, 2026.

Appropriates $100,000 in recurring funds for 2026-27 from the General Fund to the Department of Public Instruction to hire High-Performing Placement Coaches to counsel families through school transitions for students at remote charter academies not renewed for being low-performing.

Appropriates $62,000 in recurring funds for 2026-27 from the General Fund to the Department of Public Instruction to establish the in-person assessment program.

Effective July 1, 2026.

Establishes the Tropical Storm Chantal Mitigation Fund within the Department of Public Safety, Division of Emergency Management (NCEM) to be maintained as a special fund. Permits NCEM to use up to 4% of funds for administration purposes. States that the purpose of the Fund is to provide mitigation buyouts, relocations, rehabilitations, reconstructions for eligible homeowners affected by Tropical Storm Chantal in the affected area (Alamance, Caswell, Chatham, Durham, Moore, Orange, and Person counties). Provides that funds are to be distributed in affected area on a per capita basis and that no person shall receive more than $500,000.

Appropriates $25 million from the General Fund to NCEM for the Tropical Storm Chantal Mitigation Fund. Provides that unused funds will revert to the Disaster Relief and Mitigation Fund on June 30, 2028.

Effective July 1, 2026.

Adds two new subsections to GS 62-110.1 to require electric public utilities to submit a grid utilization report for Utilities Commission (NCUC) approval as part of the biennial integrated resource plan. Requires that the report include (1) an assessment of current system performance compared to optimal use of electrical grid assets, (2) an analysis on the potential to increase grid utilization, (3) a projected timeframe for implementing plans to increase grid utilization, and (4) any other information requested by NCUC. Directs NCUC to issue a final order on the grid utilization report including any targets, timeframes, or other guidance necessary for an electric public utility to improve grid utilization performance.

Requires electric public utilities to submit specified electric grid utilization metrics to be used in the development of the grid utilization report to NCUC by November 1, 2026.

Directs NCUC to issue a final order on these proposed metrics within 240 days of filing, including a determination of how such metrics may inform the NCUC’s consideration of future utility requests for approval of cost recovery for capital investments.

Appropriates $10,000 for 2026-27 from the General Fund to NCUC to implement this act, effective July 1, 2026.

Contains whereas clauses.

Amends GS 62-133 by adding new subsection (g) requiring rates for electric public utilities to be established only through a general rate case. Prohibits the Utilities Commission from approving or implementing any form of automatic or preauthorized multiyear rate adjustment mechanism.

Amends GS 62-133.16 by changing the following definitions: (1) earning sharing mechanism: an annual ratemaking mechanism that shares surplus earnings between the electric public utility and customers over a period of time covered by a PBR plan (was, covered by an MYRP); (2) removing the multiyear rate plan (MYRP) definition; (3) performance-based regulation (PBR): alternative rate-making approach that includes decoupling, an earning sharing mechanism, and one or more performance incentive mechanisms (was, decoupling, one or more performance incentive mechanisms, and an MYRP, including an earnings sharing mechanism or an alternative regulatory mechanism); and (4) rate year: the year for which base rates are effective (removing an MYRP reference in the definition).

Further amends GS 62-133.16 by  removing reference to a MYRP; making small, technical changes; removing several additional requirements for a PBR application with an MYRP and shifting one of those to be a requirement under PBR, which is that the Commission must establish a rider to refund amounts related to the earnings sharing mechanism, and to refund or collect amounts related to PIM rewards or penalties, and decoupling adjustments in a proceeding authorizing a PBR plan; eliminating a requirement related to changes in revenue requirements for the second and third rate years allocation for a MYRP; eliminating an exclusion related to first year of MYRP from the limitations on PIM penalties/rewards; revising the plan period for an approved PBR application to 12 months (was, 36 months).

Also, adds GS 62-133.16(k) clarifying that nothing in GS 62-133.16 should be construed to authorize multiyear rate plans or automatic rate adjustments outside of a general rate proceeding.

Makes conforming changes to GS 62-133.16 to delete MYRP and substitute it with PBR.

Requires the Utilities Commission (Commission) to study the effectiveness of performance-based rate making authorized by SL 2021-165. Provides five required components of the study. Requires the Commission to report its findings and recommendations to the Joint Legislative Energy Policy Commission by March 1, 2027.

Appropriates $10,000 for 2026-27 from the General Fund to the Utilities Commission to be used for purposes consistent with this act, effective July 1, 2026.

Amends GS 62-159.1 by adding subsection (c) which prohibits public utilities and electric membership corporations from suspending or disconnecting service to a residential retail customer during a period of extreme heat, period of poor air quality, or extreme cold with a high temperature under 32 degrees Fahrenheit. Requires public utilities and electric membership corporations to offer customers with delinquent accounts, adversely affected by the extreme weather event, the option of settling any unpaid balance through participation in a deferred payment plan.

Amends GS 42-40 by making the following changes to the definitions: (1) action (making small, technical changes); (2) adding air quality alert (an alert that includes a warning regarding unhealthy or very unhealthy air quality in the area where a tenant’s address is located); (3) adding heat-related alert (an alert that includes an excessive heat warning, excessive heat watch, extreme heat index advisory, or heat advisory in the area where a tenant’s address is located); (4) moving the definition of landlord; (5) adding period of extreme heat (period beginning 24 hours before effective time of any heat-related alert given by the National Weather Service, or beginning at the effective time of any heat-related alert issued without announcement, and ending 48 hours after the alert expires, includes all overlapping or sequential alerts); (6) adding period of poor air quality (period beginning 24 hours before the effective time of any air quality alert issued by the Environmental Protection Agency or the NC Department of Environmental Quality (DEQ), or beginning at the effective time of an alert issued without advance announcement, and ending 48 hours after the alert expires, includes all overlapping or sequential alerts); (7) adding portable air filtration device (an air purifier or similar device designed to improve indoor air quality, excluding a device that requires alteration of premises to install or use); (8) adding portable cooling device (an air conditioner, or evaporative cooler, including a window-mounted device or device designed to sit on the floor, but excluding a device that requires alteration of premises to install or use); (9) premises (making small, technical changes); and (10) protected tenant (making small, technical changes).

Adds new GS 42-42.4 prohibiting a landlord from (1) prohibiting or restricting a tenant from installing a portable cooling device or portable air filtration device, unless one of the listed exceptions applies and (2) enforcing a restriction on portable cooling or air filtration devices against a tenant unless it is allowed under GS 42-42.4 and is delivered to the tenant in writing within 48 hours of notice of the default (if provided, then a tenant must remove the offending device within 48 hours of written notice if already installed). Provides that landlord is immune from liability for any claims for damages, injury, or death caused by such device installed or used by the tenant. Requires landlord to include written information in a written rental agreement or lease notifying a tenant of their rights, responsibilities, and restrictions related to installation and operation of such devices.

Adds GS 42-42.5 prohibiting a landlord from effecting an involuntary termination of electric utility or water services for the premises due to lack of payment by tenant during a period of extreme heat or poor air quality for the area where premises is located, except as provided. If a tenant’s electricity or water utility service has been disconnected for lack of payment, the tenant can request the landlord reconnect the service during a period of extreme heat or poor air quality. Requires landlord to inform tenants in any notice of disconnection of the ability to seek reconnection and to provide information about how to make such request. Provides requirements for landlord who receives such a request and outlines what a landlord may require of the tenant, including a repayment plan that complies with the Chapter. Details permissions and restrictions related to the repayment plan.

Appropriates $100,000 in recurring funds for 2026-27 from the General Fund to the NC Utilities Commission to assemble and disseminate a report of disconnections on an annual basis.

Effective July 1, 2026, and applies to rental agreements or leases entered into or renewed on or after that date.

Amends GS 105-164.13 to exclude from sales tax feminine hygiene products, as now defined under GS 105-164.3; excludes grooming and hygiene products, as defined. Further amends GS 105-164.13 to exclude from sales tax sales of children or adult diapers or incontinence underpads (replacing the existing exemption for sales of diapers or incontinence pads on prescription by an enrolled State Medicaid/health Choice provider for use by program beneficiaries when the provider is reimbursed by the State Medicaid program or a Medicaid MCO).

Repeals GS 105-164.13B(b), which requires the Secretary of Revenue (Secretary) to administer local sales and use taxes imposed on food as if they were imposed under Article 39, which authorizes counties to levy a 1 cent sales and use tax, applicable to local sales taxes on food imposed under specified state laws. Amends GS 105-467(a), which defines and limits the scope of the county sales and use tax that can be levied under Article 39, to eliminate from the tax's scope the sales price of food that is not otherwise exempt from state sales and use tax under GS 105-164.13B, and the sales prices of a bundled transaction that include food subject to local tax under the statute. Makes conforming changes to reflect the exemption enacted for food. 

Amends GS 105-164.3 to exclude only prepared food (was, food or prepared food) from the definition of amenity as it applies to state sales and use taxes imposed under Article 5. 

Applies to sales made on or after October 1, 2026.

Appropriates $1.6 million from the General Fund to the NC Association of Regional Councils of Government for 2026-27 to be equally allocated among regional councils and used for education on available tax relief.

Appropriates $2.261 million in recurring funds for 2026-27 from the General Fund to the Department of Adult Correction (DAC) to be allocated equally to the 17 local reentry councils in the State for each council to hire a Housing Support Specialist and a Support Specialist.

Appropriates $3.825 million in recurring funds for 2026-27 from the General Fund to the DAC to be allocated equally to the 17 local reentry councils to provide reentry assistance. Specifies that funds do not revert.

Appropriates $867,000 in recurring funds for 2026-27 from the General Fund to the DAC to be allocated equally to the 17 local reentry councils to provide transportation vouchers to individuals on post-release supervision. Specifies that funds do not revert.

Appropriates $140,000 in recurring funds for 2026-27 from the General Fund to the DAC to contract with two specified community colleges to hire a Reentry Educator Navigator for each specified community college.

Appropriates $25,000 for 2026-27 from the General Fund to the DAC for the State Reentry Council Collaborative to develop online professional development models to teach State agencies, educational institutions, and other nongovernmental stakeholders how to best serve individuals with criminal records.

Effective July 1, 2026.

Section 1.

Adds new Article 11, Online Safety Division, to GS Chapter 114, providing as follows. Establishes the Online Safety Division (Division) within the Office of the Attorney General, with the following duties: (1) investigation of complaints made under GS Chapter 114B (NC Children’s Safe Screens Act); (2) education of law enforcement agencies and the general public about the online safety of all North Carolinians, with an emphasis targeting harmful activities and dark patterns; (3) issuance of online safety standards and guidelines and review of relevant industry codes pertaining to internet safety, age-appropriate design, and compliance with the NC Children’s Safe Screens Act; and (4) facilitating advisory panels on internet safety, including child development experts, technology specialists, parent representatives, community stakeholders, and industry representatives. Specifies that the Division includes the NC Online Child Safety Commission (Commission) created in new GS Chapter 114B.  Establishes a children’s online safety fund (Fund) in the Department of Justice (DOJ) administered by the Commission and used exclusively for prevention, education, and enforcement activities under GS Chapter 114B. Provides for annual reports by the Commission to the NCGA on Fund expenditures and outcomes.

Section 2.

Enacts new GS Chapter 114B, NC Children’s Safe Screens Act, providing as follows. Defines terms used in the Chapter, including defining covered platform as an internet platform providing online services having more than 5 million users in North Carolina and revenue exceeding $25 million annually. Makes it State public policy that its children are owned a duty of care with regard to their online activities in order to limit foreseeable harm and their exposure to dark patterns and harmful content on covered platforms; also endorses age-appropriate design and strong parental controls as central to protecting children. Requires covered platforms to require parental notifications for accounts created by children (defines child as an individual under age 18) and requires offering robust, easy-to-use parental supervision tools. Makes it illegal for covered platforms to use dark patterns (manipulative design elements in online environments) or deploy features known to be addictive or manipulative. Requires covered platforms to define cyberbullying and include provisions for reporting to the Division and provide intervention and support services for affected children. Requires platforms to submit an annual Child Impact Assessment to the Division for new and existing services; sets out required content and requires retaining documentation supporting the annual assessments for at least three years. Requires covered platforms to use the highest privacy settings by default for all users likely to be children and establish strict data minimization principles that include the nine specified elements, including requiring deletion when no longer needed, prohibiting profiling and behavioral advertising targeting children, and data broker restrictions for children’s information. Allows the Attorney General to bring civil actions to enforce this Article. Allows, when the defendant is found to have knowingly violated the Chapter, imposing civil penalties of up to $500,000 per violation. Sets out what must be considered in setting the amount of the penalty. Requires penalty proceeds to be remitted to the Civil Penalty and Forfeiture Fund. Clarifies that GS Chapter 114B does not create a private right of action. Requires the Commission to refer all matters requiring civil enforcement to the AG, whose authority to bring civil actions under GS Chapter 114B is exclusive. Provides for limited injunctive relief.

Establishes the eleven-member North Carolina Online Child Safety Commission (Commission) (nine voting members and the AG and Superintendent of Public Instruction as two ex officio members) within DOJ to protect the state’s children from online harms through research, education, regulation, enforcement and ongoing adaptation to the evolving digital landscape. Sets out additional Commission duties. Voting members are to be appointed by the Governor and must have expertise in and commitment to child welfare, digital technology, mental health, education, or related fields relevant to children’s online safety; sets out additional membership qualifications. Sets terms at four years, staggered, and prohibits serving more than two consecutive terms. Provides for a chair and vice-chair, professional support staff, investigative staff, and specialized units. Requires the Commission to conduct a comprehensive review of its activities and impact, assess changing technological landscapes and emerging challenges, revise strategic priorities and approaches as needed, and recommend statutory amendments to maintain effectiveness, every three years.

Requires the Commission to give expert guidance to, among others, the Governor and General Assembly on matters relating to online child safety, educational institutions on digital literacy and safety curricula, technology platforms on best practices for age-appropriate design, and parents and caregivers on tools and strategies to protect children online. Requires the Commission to: (1) conduct research and data collection as specified; (2) develop and oversee the specified educational initiatives; (3) handle complaints in the specified manner; (4) adopt binding regulations on age verification, minor account data practices, default safety settings, complaint procedures, and platform transparency disclosure; and (5) coordinate and collaborate with listed entities.

Requires the Commission to prepare and publish an annual “State of Children’s Online Safety in North Carolina” report that includes the specified items. Requires the Commission to conduct annual compliance reviews of covered platforms that include seven specified measures. Requires the Commission to submit annual recommendations to the NCGA on five specified issues. Requires the Commission to hold at least four public hearings including specialized hearings on emerging issues of concern. Requires the Commission to engage with the industry in five specified ways, including convening an annual Industry Safety Summit with platform representatives and reviewing and approving updates to industry codes of practice. Requires the Commission to publish annual transparency reports that detail information related to enforcement actions, complaints, penalties, and other Commission actions. Requires the Commission to annually audit and evaluate five listed programs and initiatives, including digital literacy programs in schools and public awareness campaign effectiveness. Requires the Commission to establish annual research priorities based on identified gaps, commission or conduct studies on priority areas, award research grants from the Children's Online Safety Fund, publish findings and recommendations based on research, and ensure research informs regulatory and educational approaches.

Includes a severability clause.

Section 3.

Requires initial appointments to the Commission to be made and the first meeting to be convened by September 1, 2026. Requires the Commission to take specified actions during its first year. Requires the Commission to develop a phased implementation plan that: (1) prioritizes addressing the most serious harms, (2) accommodates different compliance timelines based on platform size, (3) allows for industry adjustment to new requirements, and (4) includes benchmarks for measuring progress. Requires the Commission, every three years, to: (1) review its activities and impact, (2) assess changing technological landscapes and emerging challenges, (3) revise strategic priorities and approaches as needed, and (4) recommend statutory amendments to maintain effectiveness.

Section 4.

Enacts new GS 143B-1209 establishing the Cyberbullying Unit (Unit) within the State Bureau of Investigation to protect children online and aid in the enforcement of new Article 11. Requires the Unit, in addition to other duties, to operate a toll-free number and website on online child safety and cyberbullying.

Section 5.

Effective July 1, 2026, appropriates from the General Fund to the Fund $6 million in recurring funds for 2026-27 to fund its work as provided by the act. These funds shall not revert at the end of the fiscal biennium. Effective July 1, 2026, appropriates from the General Fund to the Fund $10 million for 2026-27 to fund its work as provided by the act. These funds shall not revert at the end of the fiscal biennium.

Effective July 1, 2026, appropriates from the General Fund to the State Bureau of Investigation (SBI) $2 million for 2026-27 to create the Cyberbullying Unit at the SBI. These funds shall not revert at the end of the fiscal biennium.

Section 6.

Effective July 1, 2026, except as otherwise provided. Specifies that the substantive requirements and provisions of new GS Chapter 114B apply to acts or omissions occurring on or after December 1, 2026.

Amends GS 115C-83.31, concerning high school graduation requirements, to require passing grades in four math courses: NC Math 1; NC Math 2; and two additional courses required as part of one of four listed pathway-aligned options adopted by the State Board of Education (State Board).

Amends GS 115C-158.10 to require the State Board's rules setting forth requirements for career development plans to include pathway-aligned sequences of math courses adopted by the State Board pursuant to GS 115C-83.31, as amended.

Makes the above sections effective July 1, 2028, and apply beginning with students entering the ninth grade during the 2028-29 school year.

Directs the State Board to adopt rules for pathway-aligned sequences of math courses to be offered in high schools in the State by July 1, 2027. Requires consultation with the UNC Board of Governors and State Board of Community Colleges regarding minimum admission standards and workforce and industry needs. Exempts application to children with disabilities whose IEP team has determined cannot satisfy the standard state graduation requirements. Details the four required pathway-aligned sequences of math courses the State Board must adopt: a college preparatory pathway; a career and technical education pathway; a quantitative reasoning and statistics pathway; and a science, technology, engineering, and math pathway. Directs each school administrative unit to submit the number of students following each pathway at the conclusion of each year, beginning with the 2028-29 school year. Directs DPI to to submit a report to the specified NCGA committee by March 15, 2034, with specified data. Appropriates $1 million from the General Fund to the Department of Public Instruction for 2026-27 to implement the act. Effective July 1, 2026.

Contains the NCGA’s finding pertaining to the continued technological competitiveness, operational efficiency, and cybersecurity posture of the State.

Establishes the nine-member Board of Governors of the Carolina Digital Sovereignty Authority (Board) appointed by the Governor, House of Representatives and Senate in equal thirds, to be administratively housed in with the Department of Information Technology (DIT) for budgeting and logistical support, only. Specifies Board member qualifications. Provides for staggered, four-year terms, vacancies, removal, reappointment, a chair, meetings, quorum, disqualifications, and reimbursement for limited expenses. Prevents a Board member from serving more than two consecutive, full, four-year terms without at least a one-year break in membership. Provides for the initial terms, as follows: three to serve two-year terms, three to serve three-year terms, and three to serve four-year terms, as designated by the respective appointing authority, so as to establish staggered terms.

Requires the Board to develop a comprehensive plan (Plan) for modernization, consolidation, and cyber defense of the State's information technology enterprise, to at minimum address and make specific legislative and administrative recommendations on each of the ten areas identified, including a twenty-year vision, infrastructure modernization and asset liquidation, workforce consolidation, establishing an Innovation Center for Excellence to serve Cabinet agencies, cybersecurity and the State’s national guard’s cyber protection teams, and strategic oversight. Requires the Board to consult with the identified government stakeholder and private sector subject matter experts it deems appropriate. Requires DIT to provide the Board with professional and support staff, as described. Directs the Board to submit the Plan along with proposed legislation to implement the Plan to the specified NCGA members, committees, and division by no later than March 1, 2027. Allow for interim reports and requires the Board to appear before the specified NCGA committee upon request.

Clarifies that the act does not reorganize DIT, transfer personnel or property, establish a fee-for-service structure, realign cybersecurity functions, or otherwise effect any of the substantive changes addressed by the Plan.

Appropriates $100,000 from the General Fund to DIT for 2026-27 to support the Board. Requires initial Board appointments to be made within 90 days after July 1, 2026, and for the Board to hold its first meeting not later than 30 days after a quorum of members is appointed.

Effective July 1, 2026.

Section 1.

Removes ambulatory surgical facility, ambulatory surgical program, multispecialty ambulatory surgical program, qualified urban ambulatory surgical facility and specialty ambulatory surgical program from the defined terms pertaining to Certificates of Need for Health Care Facilities and Providers in GS 13E-76. Modifies gastrointestinal endoscopy room so that it only refers to rooms in a licensed health service facility performing the procedure specified. Removes rehabilitation facilities and ambulatory surgical facilities from the definition of health service facility. Makes conforming changes to health service facility bed. Excludes rehabilitation facilities from hospital, and makes conforming changes to the term. Removes references to qualified urban ambulatory surgical facilities and the conversion of a specialty ambulatory surgical program to a multispecialty ambulatory surgical program or the addition of a specialty to a specialty ambulatory surgical program from new intuitional health services. Excludes rehabilitation services provided in an in-patient nursing facility from nursing care. 

Section 2.

Makes conforming changes to GS 131E-178 (activities requiring certificates of need) to account for the narrowed terms above and removal of ambulatory surgical programs described from the term new institutional health services.  

Section 3.

Updates the statutory cross-reference in GS 90-21.82A’s definition of ambulatory surgical facility to account for removal of the term in GS 131E-176.

Section 4.

Repeals GS 131E-146(3) (definition of qualified urban ambulatory surgical facility is that of GS 131E-176) to account for the removal of those provisions by the act. Repeals GS 131E-147.5 (concerning the charity requirements for urban ambulatory surgical facilities). Repeals the following definitions from GS 131E-176: chemical dependency treatment beds, chemical dependency treatment facility, and psychiatric facility.
Section 5.

Appropriates $50,000 from the General Fund to DHHS’s Division of Health Service Regulation for 2026-27 to implement the repeal of certificate of need laws for ambulatory surgical facilities and for inpatient rehabilitation services, facilities, and beds and to development a comprehensive plan for the phased elimination of the State’s remaining certificate of needs law. Sets out requirements and deadline for this plan.

Section 6.

Contains a severability clause.

Section 7.

Effective July 1, 2026.

Adds new Part 9, Emerging Contaminant Mitigation, to Article 9 of GS Chapter 130A, with the purpose of providing funding to support the mitigation of the impacts of environmental contamination due to emerging contaminants on local public water and wastewater systems. Defines emerging contaminants as PFAS and 1,4-Dioxane. Establishes the Emerging Contaminant Mitigation Fund within the Department of Environmental Quality (DEQ) to support statewide efforts to detect, reduce, mitigate, and prevent exposure to emerging contaminants and to support scientific research and technology development related to removal, treatment, monitoring, and precursor identification for emerging contaminants. Specifies that the fund consists of any funds appropriated by the NCGA and grants from federal agencies or other non-State entities. Allows the Fund to be used by the State Water Infrastructure Authority (SWIA) to provide grants to units of local government operating public water or wastewater treatment systems for: (1) emerging contaminant sampling and monitoring in drinking water, wastewater, surface water, and groundwater; (2) installation or upgrade of water treatment technologies for emerging contaminant removal; (3) emergency response and remediation of emerging contaminant contamination in soil, surface water, and groundwater; and (4) providing technical assistance to significant industrial users for the purpose of eliminating discharges of PFAS and 1,4-dioxane to publicly owned treatment works. Gives priority to public water systems and public wastewater systems (1) for which contamination from emerging contaminants has caused the greatest impacts on public health and the environment and (2) that are or meet the criteria to be categorized as a distressed unit. Requires SWIA to report annually as a part of the report required by GS 159G-72 regarding projects funded under this provision. Makes conforming changes to GS 159G-71. Appropriates $56 million in recurring funds for 2026-27 from the General Fund to DEQ for the Fund.

Appropriates $14 million in recurring funds for 2026-27 from the General Fund to the UNC North Carolina Collaboratory to support scientific research on emerging contaminants conducted by or in collaboration with public or nonprofit academic institutions, including any of the six specified issues. Requires consultation with affected stakeholders, scientific experts, and State and local officials to ensure funding is targeted to research in areas of highest environmental and public health impact. Applies GS 116-255(c) to these funds. Requires the Collaboratory to include in their report under GS 116-256 documentation of its use of the funds and updates on the research funded by this section.

Appropriates $25 million for 2026-27 to the UNC Board of Governors, to be allocated to the NC Collaboratory for any of the eight listed research, development, and remedial activities related to PFAS. Requires a summary of these activities to be included in the report that must be submitted under GS 116-256.

Enacts new GS 130A-315.1 setting out maximum contaminant levels for Perfluorooctanoic acid (PFOA), Perfluorooctanesulfonic acid (PFOS), Perfluorononanoic acid, Hexafluoropropylene oxide dimer acid, Perfluorohexanesulfonic acid (PFHxS), Perfluorobutanesulfonic acid (PFBS), and mixtures containing two or more of PFHxS, PFNA, and HFPO-DA. Requires the adoption of rules to establish a compliance schedule with respect to these levels for all public water systems.

Requires DEQ, in consultation with the North Carolina Collaboratory, by October 1, 2026, to develop: (1) science-based PFAS concentration limits for commonly detected PFAS, which must be used to establish monitoring, permitting, and pollution reduction requirements for direct discharges to surface waters and significant industrial users ("regulated entities") as provided in this section; (2) source reduction and treatment requirements to be imposed, including requiring regulated entities to do one or more of the specified four actions; and (3) a compliance schedule of up to 36 months to begin no later than January 1, 2027, for regulated entities to achieve the requirements. Requires all National Pollutant Discharge Elimination System (NPDES) permits and pretreatment permits, as applicable, for regulated entities subject to this section to include enforceable limits or conditions for PFAS discharges based on the established concentration limits and available treatment options, as determined by DEQ. Sets out allowable exemptions. Makes this section applicable only to the following regulated entities: (1) significant industrial users that discharge wastewater containing PFAS compounds to a POTW and have exceedances of the established PFAS concentration limits and (2) direct dischargers that discharge wastewater containing PFAS compounds to surface waters of the state under an NPDES permit, and have exceedances of the established PFAS concentration limits. Requires the Environmental Management Commission to adopt temporary and permanent rules to implement the provisions of this section and allows DEQ to issue interim guidance pending rule adoption.

Establishes a moratorium on new or increased interbasin surface water transfers from defined area of Cape Fear River Basin. Prohibits Environmental Management Commission (EMC) from issuing certificates authorizing such transfers. Creates exceptions for existing transfers and any emergency transfer authorized by the Secretary of Environmental Quality. Expires June 1, 2030.

Directs the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) to study the Cape Fear River Basin to determine its reliable yield of water supply and make recommendations for legislative changes to ensure sustainability of use. Sets out required contents of the study. Directs Collaboratory to consult with the Department of Environmental Quality, the EMC, the State Water Infrastructure Authority, the North Carolina League of Municipalities, and other relevant entities. Requires Collaboratory to report to the General Assembly no later than July 1, 2029.

Appropriates $1.5 million for 2026-27 from the General Fund to the Board of Governors of the University of North Carolina to be allocated to the Collaboratory for this study. Provides that the funds shall not revert at the end of the 2026-27 fiscal year and shall remain available until the end of the 2028-29 fiscal year.

Requires that the NC Collaboratory carry out a collaborative research effort in partnership with utilities and state regulators to provide utilities, state regulators, and other relevant entities with the knowledge, data, and strategies they need for utility management and decision making. Sets out three issues that must be studied. Requires publicly owned or operated wastewater treatment works and DEQ to partner with the Collaboratory in conducting the study. Allows the Collaboratory to use any prior or future funds appropriated by the NCGA for PFAS-specific research, or other discretionary funds, to carry out this study and present the final results to DEQ, the Environmental Review Commission, and the Environmental Management Commission by January 31, 2029.

Appropriates $10 million in nonrecurring funds and $200,000 in recurring funds for 2026-27 from the General Fund to DEQ for the Bernard Allen Drinking Water Fund.

Appropriates $2,613,925 in nonrecurring funds and $1,659,393 in recurring funds for 2026-27 from the General Fund to DEQ for lab operations and field work, including the development of new sampling and testing protocols, to identify, reduce, and remediate PFAS contamination.

Includes a severability clause.

Effective July 1, 2026, unless otherwise indicated.

Enacts Article 82C, Licensing and Permitting for the Installation and Servicing of Portable Fire Extinguishers and Fire Suppression Systems, in GS Chapter 58.

Sets forth 11 defined terms. Provides for the State Fire Marshal (Fire Marshal) to administer the Article. Requires the Fire Marshal to establish rules for proper installation, inspection, recharging, repairing, servicing, or testing of fire suppression systems or portable fire extinguishers; and required specifications as to the number, type, size, shape, color, and information and data contained on service tags to be attached to all portable fire extinguishers and fire suppression systems covered by the Article that are installed, inspected, recharged, repaired, serviced, or tested. Permits the Fire Marshal to adopt the applicable standards of the National Fire Protection Association or another nationally recognized organization. Authorizes the Fire Marshal to adopt rules to require an exam of license or permit applicants under the Article. Authorizes the Fire Marshal to apply for and receive grants for the Article's administration from interested parties.

Requires firms to be licensed and persons to be permitted to install, inspect, repair, recharge, service, or test portable fire extinguishers, pre-engineered kitchen fire suppression systems, pre-engineered industrial fire suppression systems, and engineered special hazard fire suppression systems. Makes it unlawful to take such action on any portable fire extinguisher or fire suppression system without attaching the required tag(s) completed in detail, as described. Excludes from the permitting provisions individuals employed by any firm or governmental entity that only engages in the installation and servicing of fire suppression systems or portable fire extinguishers on such items owned by the firm and installed on property under the control of the firm, subject to the rules and regulations adopted under the Article. Provides further exemptions, including fire chiefs, fire marshals, fire inspectors, and insurance company inspectors, as described, and any firm that engages only in the routine visual inspection of the systems and extinguishers owned by the firm and installed on property under the firm's control.

Sets the license fee at $250. Sets the permit fee at $100, except for those military-trained applicants or military spouses who are exempt from such fees under GS 93B-15.1. Exempts government employees and members of a legal organized fire department acting in the member's official capacity.

Sets forth license and permit requirements, including proof of comprehensive liability insurance for prospective licensees. 

Provides for keeping a permit on the permittee's person in the course of the work under the permit, and licensees and permittees producing a valid license or permit upon demand by the Fire Marshal, the Fire Marshal's representatives, or any local authority having jurisdiction, or any individual soliciting the services of the licensee or permittee.

Establishes reciprocity with individuals that qualify under GS 93B-15.1 (licensures for individuals with military training and experience) or GS 93B-15.3 (licensures for individuals in neighboring states) as well as a firm that holds a comparable valid out-of-state credential, or may issue a permit to an individual who holds a comparable valid out-of-state credential if the Fire Marshal determines that the other jurisdiction's requirements are substantially equivalent to Article 82C and the applicant has paid the requisite fees.

Details the form of licenses, permits and applications. Requires a licensee or permittee to notify the Fire Marshal within 30 days of any change to application information provided to the Fire Marshal. Requires the Fire Marshal give an applicant 60 days to correct any deficiencies discovered in the application.

Requires the licenses and permits to be issued for each license year, beginning January 1 and expiring the following December 31. Provides for restoration of an inoperative license by paying a penalty within 90 days of expiration. After 90 days of expiration, the former licensee or permittee must apply for a new license or permit.

Details license or permit sanctions and denial procedures. Allows for an applicant to request review of a denial in writing within 30 days after service of the notice of denial, and allows an applicant to request an administrative hearing on the outcome within 30 days after service of the notice of the outcome. Requires surrender of a license or surrender within 30 days of suspension, revocation or nonrenewal. Describes the effect of an order of suspension or revocation.

Authorizes the Fire Marshal to deny, suspend, place on probation, revoke, or refuse to renew any license or permit under the Article for any of the 21 specified reasons, including failure to meet requirements under the Article and subject to GS 93B-8.1, conviction of a crime involving dishonesty or breach of trust.

Authorizes the Fire Marshal to issue cease and desist order for individuals or firms the Fire Marshal believes is or has been violating the Article. Requires the order to include a notice of opportunity for hearing upon request within 30 days of receipt of the order and notice. Provides for service of the order. Provides for noncompliance to result in the revocation of any and all permits and licenses issued by the Fire Marshal for a period of at least six months and no more than five years. Provides for effect of noncompliance on new permits or licenses held by the individual or firm. Establishes that violation of the Article can constitute grounds for license or permit refusal.

Establishes civil penalties for violations of the Article, rules adopted thereunder, or order of the Fire Marshal, as follows: a penalty not exceeding $1,000 for the first offense, no less than $1,000 and not exceeding $2,000 for the second offense, and no less than $2,000 and not exceeding $5,000 for a third or subsequent offense. Requires prior notice of a violation and a reasonable waiting period before ordering a fine or civil penalty, as specified. Additionally authorizes the Fire Marshal to bring a civil action to enjoin a violation.

Makes willful or intentional violations of any provision of the Article, rules, or order of the Fire Marshal a Class 1 misdemeanor. Details other conduct that constitutes a Class 1 misdemeanor, including (1) obliterating serial numbers on tags for falsifying service records, (2) improper install or service, (3) allowing another to use a license or permit or use another's license or permit, (4) impersonating a representative of the Fire Marshal, local fire chief, fire marshal, or other fire authority, (5) noncompliance with the Article, and (6) failure to comply with a cease and desist order issued by the Fire Marshal.

Clarifies that the Article does not limit certain State or local government powers. Prohibits local government from imposing any further requirements on licensees or permittees to prove competency.

Authorizes the Department of Insurance to adopt temporary rules for the Article's implementation.

Effective October 1, 2026.

Adds new Part 2A, “Military Family Food Security and Readiness Act,” to Article 2 of GS Chapter 108A. Sets out short title and legislative findings. Defines “activated service member” (member of North Carolina National Guard or reserve component of the Armed Forces ordered to duty under Title 10 or Title 32 of the U.S. Code), “deployed” (ordered to active duty outside permanent duty station for 30 consecutive days or more), and “eligible military household” (deployed or activated service member and at least one dependent).

Directs the Department of Health and Human Services (DHHS) to exclude basic housing, subsistence, and family separation allowances and hazard pay in determining eligibility for food and nutrition benefits during deployment or activation to the extent permitted under federal law or by waiver. Directs DHHS to seek any necessary federal approval or waivers.

Directs DHHS to apply an income eligibility adjustment by up to 25% for eligible military households during a qualifying deployment or activation to the extent permissible by federal law. Requires DHHS to implement equivalent relief through State-funded supplemental nutrition program if federal approval is not granted.

Directs DHHS to establish a State-funded supplemental nutrition program for eligible military households that do not otherwise qualify for nutrition benefits based on income but that demonstrate financial hardship due to deployment or activation. Details documentation necessary to apply for benefits and sets minimum benefit amount and duration. Requires that the monthly benefit be no less than $150 and no more than $300. Directs DHHS to submit report on participation, expenditures, and outcomes to the specified NCGA committee by March 1 annually.

Directs DHHS to establish an expedited application process of no more than 10 days and to coordinate with military installations to streamline verification of deployment. Provides that all provisions apply equally to National Guard and Reserve members activated under federal or State authority. Directs DHHS to seek a waiver for able-bodied adults from specified federal work requirement for benefit eligibility purposes. Provides that the act does not apply when a member permanently changes station without dependents.

Appropriates $77.6 million in recurring funds for 2026-27 from the General Fund to DHHS Division of Social Services to implement the act.

Effective and applicable to qualifying deployments occurring on or after July 1, 2026.

Directs the North Carolina Department of Transportation (DOT) to study the cost and potential economic benefits of a commuter rail service in the Piedmont Triad, including the cities of Winston-Salem, High Point, and Greensboro and the counties of Forsyth and Guilford. Provides that the study will evaluate additional transportation options and incorporate population and development growth projections through 2050.

Requires that the study evaluate at minimum: governance and implementation structure, mode flexibility, funding and financing, and economic and land use considerations. Sets out specific considerations for each category.

Requires the DOT to report study results and implementation recommendations to the specified NCGA committees and division by December 29, 2026.

Appropriates $250,000 for 2026-27 from the Highway Fund to the DOT for the study.

Effective July 1, 2026, and expires December 29, 2026.