Recodifies GS 15A-311 (Consulate documents not acceptable as identification) as GS 64-6.

Amends GS 64-6, as recodified above, deleting language in subsection (c) that previously allowed law enforcement officers to use identity documents issued or created by individuals, organizations, or local governments for the purpose of assisting in determining the identity of a person when no other such documents are available. Makes a technical change to the section's catchline.

Enacts new GS Chapter 64, Article 3, Local Government Noncompliance with State Laws Related to Immigration, setting out specific findings of the General Assembly, including that the policy objectives of the General Assembly are frustrated when cities, counties, and law enforcement agencies do not uniformly comply with State law, and that supreme power and complete discretion over State funds appropriations can be used to create additional incentives for compliance. Sets out three definitions in use for the Article, includingaffected local government,law enforcement agency, andstate law related to immigration--defined as GS 64-6(b) (prohibition on adopting policy or ordinance to accept excluded documents as valid id), GS 153A-145.5 (prohibition on adoption of sanctuary ordinances), and GS 160A-205.2(prohibition on adoption of sanctuary ordinances).

Directs the Attorney General (AG) to create a form upon which individuals can allege that a city, county, or law enforcement agency is currently not in compliance with a State law related to immigration. The form is to be made available on the AG's website and once completed the form should be sent to the AG. No Social Security number or notarization is required on the form. Anonymous statements submitted on a nonprescribed form are not prohibited from consideration, but all complaints or allegations must be made having a good faith belief.

Requires the AG to begin an investigation into the allegations of noncompliance within 45 days of receipt of filed statement, with a final determination and conclusion of the investigation within 60 days of the investigation's commencement. The AG is authorized to ask for assistance from the State Bureau of Investigation in conducting the investigation. Further directs local governments to produce records or documents related to the investigation within 10 business days of request by the AG. Provides that statements, records, reports, and other investigative documents are confidential and not public records until the investigation is complete or 60 days have elapsed since the investigation was commenced. Authorizes local governments to request that confidential documents be made public.

Sets out consequences of a determination that an affected local government is not in compliance with State law related to immigration. The five consequences include ineligibility for specified state distributions for a fiscal year and that the AG will notify the affected local governments, the chairs of the Appropriations Committees of the Senate and House of Representatives, the chairs of the Joint Legislative Commission on Governmental Operations, the Office of State Budget and Management, and the Secretary of Revenue of the non-compliance determination and of the duration of the period of ineligibility to receive funds. Also includes provisions detailing consequences of the AG receiving notification of noncompliance with E-verify, which include all of the above consequences. Sets out specific entities to which the consequences of noncompliance with E-Verify regulations apply. No enactment must be construed as an exception to the statute unless it specifically mentions this section.

Sets out procedures and administrative guidelines for the AG, including reporting requirements. Requires the AG to maintain a database of those entities ineligible for funds and to report to the Joint Legislative Commission on Governmental Operations on a quarterly basis concerning the numbers of statements, investigations, consequences rendered, and the names of those entities found not to be in compliance. Further states that the AG's determination is only appealable to the extent required by the United States and North Carolina Constitutions, and delays the imposition of consequences for noncompliance while the appeal is pursued. Consequences last for the same length of time after an unsuccessful appeal as they would had no appeal been made, regardless of which fiscal years the consequences would occur in. Authorizes the AG to designate an official to carry out the duties of this regulation, and that the AG must promulgate rules needed to implement this Article.

Provides for a private enforcement action against entities that are not in compliance with State law concerning immigration, in the Superior Court of Wake County; an individual can seek relief in the form of declaratory and injunctive relief. Allows prevailing parties to receive attorneys' fees and court costs.

Amends GS 64-33.1, concerning noncompliance with E-Verify requirements, adding a new subsection (b) that requires the Commissioner of Labor to immediately notify the AG if a political subdivision of the State has violated the E-Verify requirements. The Commissioner of Labor must also notify the AG within 60 days of the violation if the political subdivision has not yet demonstrated compliance with E-Verify.

Directs the AG's office to notify local governments of the provisions of this act so steps to be in compliance can be taken.

Amends GS 136-41.1 (State distributed funds for roads of cities/towns), adding language that prohibits cities/towns from receiving their respective funds if they are ineligible due to noncompliance with state laws related to immigration.

Amends GS 105-113.82 (distribution of taxes on malt beverage and wine), GS 105-164.44F(a) (distribution of taxes on telecommunications services), GS 105-164.44I(a) (distribution of taxes on telecommunications services), GS 105-164.44L(a) (distribution of taxes on natural gas), and GS 105-187.19(b) (distribution of net tax proceeds)to reflect eligibility contingent upon compliance with new GS Chapter 64, Article 3.

The above provisions are effective August 1, 2017.

Amends GS 153A-145.5 and GS 160-205.2 to state that a county or city in violation of those statutes has waived its governmental immunity to suit.

Enacts new GS 153A-435.1 and GS 160A-485.1, waiving county and city immunity from tort liability if not compliant with GS 153A-145.5 and GS 160-205.2, and an unauthorized alien commits a crime against a person or property within the county or city, even if the county or city has not purchased insurance.

Enacts new GS 116-40.13, prohibiting constituent institutions of the University of North Carolina System from having policies that limit or restrict the enforcement of federal immigration law. Prohibits constituent institutions from prohibiting the gathering or communication of information regarding citizenship or immigration status by law enforcement. Directs the President to commence an investigation within 45 days of a report that a constituent institution is in violation of GS 116-40.13, and to make a determination within 60 days of commencement, and to notify the Board of Governors if a constituent institution is in violation. Directs the Board of Governors to immediately revoke special responsibility status from a violating constituent institution, as determined and reported by the President, for the current fiscal year. Directs the Board of Governors to extend the revocation for an additional fiscal year if the constituent institution fails to demonstrate to the Presidentäó»s satisfaction that it is in compliance with GS 116-40.13.

Directs the Secretary of the Department of Public Safety to enter into a memorandum of Agreement with the Director of US Immigration and Customs Enforcement to permit designated State law enforcement officers to perform immigration law enforcement functions.

Unless otherwise indicated, effective when the act becomes law.