Conference report to the 2nd edition removes the content of the previous edition and replaces it with the following. Makes conforming changes to the act’s titles.

Part I

Section 1.1

Provides that references to SL 2026-41 (An Act to Make Base Budget Appropriations for Current Operations of State Agencies, Departments, and Institutions) and corresponding committee report include relevant amendments contained in SL 2026-42 (An Act to Make Technical, Clarifying, and Other Changes to the Current Operations Appropriations Act of 2026 and to Other Acts). 

Section 1.2

Modifies the amount of funds transferred under Section 2.2(f) of SL 2026-41 as follows.

Reduces the amount of funds transferred from the Stabilization and Inflation Reserve to the Office of the State Auditor by $500,000 for the 2026-27 fiscal year.

Increases the amount of funds transferred from the Stabilization and Inflation Reserve to the State Board of Elections by $500,000 for the 2026-27 fiscal year.

Section 1.3

Amends Section 5.2(b)(2) of SL 2026-41 to clarify that a directed grant of more than $100,000 and $1 million or less (was, more than $100,000 but less than $1 million) shall be distributed in monthly or quarterly installments in the discretion of the Director of the Budget.

Section 1.4

Amends GS 143C-6-4(b2) to clarify treatment of unauthorized budget adjustments that use prior year earned revenue, other than those adjustments necessary to accomplish reversion of funds pursuant to GS 143C-1-2(b) or to offset of federal overdraws occurring in June required to be repaid during the next month.

Section 1.5

Repeals Section 10 of SL 2026-25 (authorizing establishment of building height limitation for City of Claremont).

Section 1.6

Repeals Section 4 of SL 2026-22 (Town of Kernersville deannexation). Prohibits the Town from exercising extraterritorial jurisdiction over specified Forsyth County parcel. Relinquishment of jurisdiction is effective upon becoming law. Provides that the specified parcel is subject to Forsyth County’s jurisdiction.

Section 1.7

Makes changes related to Local Government Commission (Commission) authority and procedures.

Amends GS 159-3(a) by adding seven subsections describing voting status and term limits for Commission members.

Amends GS 159-4(a) to remove the Secretary of State from the executive Committee of the Commission. Provides that all three members of the executive commission (was, three out of four members) constitute a quorum.

Amends Section 5.10 of SL 2026-41 to exclude ex officio members of the Commission from provision directing current Commission members to finish their current terms. Provides that a vacancy occurring before the expiration of a member’s current term will be filled pursuant to GS 159-3. Removes 30-day time frame for filling newly created seats pursuant to procedures in this section. Provides that the seat held by the Secretary of State ex officio on the date this section becomes law shall be appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate, applicable to any vacancy in this seat prior to June 30, 2029, and thereafter. Provides that the term of the Governor-appointed member serving as a current or former member of the governing board of a city shall continue until June 30, 2029 and the appointment of this seat remains with the Governor upon any vacancy prior to that date and thereafter. Provides that the term of the Governor-appointed member serving as an at-large member shall continue until June 30, 2029, and appointment thereafter shall be made by the General Assembly upon recommendation of the Speaker of the House of Representatives; if the seat becomes vacant prior to that date, the Speaker shall make an appointment to fill any partial term and to the seat thereafter. Provides that the term of the Governor-appointed member serving as a current or former member of a county board of commissioners shall continue until June 30, 2029, and appointment to this seat after that date shall be made by the State Treasurer; if the seat becomes vacant before that date, the State Treasure shall make an appointment to fill any partial term and to the seat thereafter. Provides that the term of the member appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate serving as an at-large member shall continue until June 30, 2029, after which date appointment remains with the President Pro Tempore; the General Assembly upon recommendation of the President Pro Tempore shall appoint to fill any vacancy in this seat prior to that date and thereafter. Provides that the term of the member appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives serving as an at-large member shall continue until June 30, 2029, after which date appointment remains with the Speaker of the House; the General Assembly upon recommendation of the Speaker of the House shall appoint to fill any vacancy in this seat prior to that date and thereafter.

Provides that the Commission may (was, shall) adopt temporary rules as necessary to implement the specified provisions of this section and shall adopt permanent rules to replace any temporary rules.

Section 1.8

Amends GS 143B-431.01(d)(2)a to modify board membership requirements for the Economic Development Partnership of North Carolina. Provides that the State Treasurer and Commissioner of Labor shall select their appointed members so that at least one of each of their respective choices comes from a development tier one or tier two area (was, one half from development tier one area and one half from development tier two area).

Part II

Section 2.1

Amends Section 5A.2(d) of SL 2026-41 (Helene Fund allocations) to specify up to $20 million of $450 million allocation to North Carolina Emergency Management for nonfederal share of federal disaster recovery programs for Hurricane Helene may be used for cashflow needs for Community Development Block Grant – Disaster Recovery-Related programs, including the Temporary Relocation Assistance Program (was, for Temporary Relocation Assistance Program). Removes word “directed” from specified grant allocations to Madison County and the Veterans Restoration Quarters of Asheville Buncombe Community Christian Ministry. Exempts these two grants from the requirements of Section 5.2(b)(2) of SL 2026-41 (distribution requirements for directed grants).

Section 2.2

Amends Section 5.9(d) of SL 2021-180 (establishing State Match Fund) to add provision allowing the Division of Emergency Management to use funds in the Fund to repay costs associated with federal deobligations.

Adds new subsection to Section 4.1 of SL 2024-51 (Disaster Recovery Act of 2024) that allows State funds appropriated to the Helene Fund to provide the State match or nonfederal share for federal disaster assistance programs to be used to repay costs associated with federal deobligations.

Section 2.3

Makes a change to Budget Fund line item numbering for Disaster Recovery Budget Fund.

Section 2.4

Provides that any funds remaining under Section 5.4(a)(3)c of SL 2022-74 (2022 Disaster Relief and Recovery Allocation) may be used by Star Telephone Membership Corporation for equipment and land for employee traffic. Effective when the act becomes law.

Section 2.5

Amends Section 5A.2(b) of SL 2026-41 to change allocation date to January 1, 2027 (was, October 1, 2026) for up to $20 million in unencumbered funds to the North Carolina Forest Service for wildfire mitigation in the affected area.

Section 2.6

Amends Section 5A.2(d)(4)a of SL 2026-41 to add two additional specified dams to the list of dams eligible for grant disbursement under the Dam Safety Grant Program.

Section 2.7

Adds new subsection 2F.1(c1) to Part II-F of SL 2025-2 establishing project eligibility requirements for certain business infrastructure grants. Provides that qualifying infrastructure needs for which permitting had been obtained or for which construction had commenced prior to Hurricane Helene shall be eligible for a grant under this section if other eligibility requirements are satisfied. Limits grant awarded to actual costs incurred to repair damage directly attributable to Hurricane Helene. Allows grants under this subsection to be used for qualifying infrastructure constructed by a private entity if dedicated, conveyed, or otherwise transferred to a public entity upon completion.

Directs the Department of Commerce to reconsider any closed or denied applications for a grant under the Small Business Infrastructure Grant Program that would have qualified under new subsection 2F.1(c1). Provides that the reporting requirements of Section 2F.1(h) of SL 2025-2 apply to this section.

Applicable to applications pending or submitted to the Department of Commerce for the Small Business Infrastructure Grant Program on the date this section becomes law, and effective when this section becomes law.

Section 2.8

Amends Section 4C.3 of SL 2024-53 as amended by Section 1.1 of SL 2025-97 to extend the interest-only period for Hurricane Helene bridge loans to a period not to exceed 30 months (was, 24 months) from the date the loan was awarded. Provides that a lender seeking to recapture loan funds for failure to comply with program requirements need not make a determination that there is a reasonable expectation that the recovery of funds will exceed the cost of recovery if the lender reasonably believes that loan funds were not used for purposes consistent with the section’s purpose.

Effective upon becoming law and applicable retroactively to loans made under the program and to suspected instances of fraud occurring before, on, or after that date.

Part III

Section 3.1

Changes the Budget Code for specified funds reduced from the Community Colleges System for the purpose of Enterprise Resource Planning.

Section 3.2

Changes the Budget Code to which specified funds allocated to the Community Colleges System for Customer Relationship Management System shall be appropriated.

Section 3.3

Changes the Budget Code to which specified funds allocated to the Community Colleges System for Short-Term Workforce Credentials Financial Assistance shall be appropriated.

Section 3.4

Amends GS 115D-31.3, as amended by Section 6.11 of SL 2026-41 as follows. Requires each college to publish its performance on the measures and standards adopted by the State Board of Community Colleges pursuant to subsection (a) (was, measures set out in repealed subsection (e)). Directs the State Board of Community Colleges to evaluate each college on the progress of basic skill students based on same performance measures and standards. To the extent funds are available, the State Board shall (was, may) allocate funds among colleges based on the evaluation of each institution’s performance. Effective when this section becomes law.

Section 3.5

Amends Section 6.8(e) of SL 2026-41 to remove the Office of Learning Research at the University of North Carolina as a recipient of the State Board’s report on the Workforce Diploma Program.

Section 3.6

Amends Section 6.5 of SL 2026-41 to require that ApprenticeshipNC report to the Joint Legislative Education Oversight Committee by March 15, 2027 (was, December 31, 2026).

Section 3.7

Makes a technical correction to statute numbering of GS 115C-229.55(d)(2) as referenced in and enacted by Section 7.57(c) of SL 2026-41.

Section 3.8

Changes the Budget Code for specified funds reduced from the Department of Public Instruction to contract with the North Carolina Association of School Business Officials.

Section 3.9

Amends Section 7.24(l) of SL 2026-41 to direct the Department of Public Instruction to issue the initial request for applications for the TeachReadyNC Program by October 1, 2026, to establish registered teacher apprenticeship programs as soon as practicable and no later than the 2027-28 school year (was, beginning in the 2027-28 school year).

Section 3.10

Amends GS 115C-375.6(e) as enacted by SL 2026-41 (liability under cardiac emergency response plan) to apply to any governing body of a public school unit, its members, designees, agents, volunteers or employees (was, any public school unit employee).

Section 3.11

Amends GS 115C-407.45(6) as enacted by SL 2026-41 (time limitations for released time religious instruction) to provide that a public school unit shall authorize excused absences for at least one, but no more than four, hours of released time religious instruction per calendar week.

Section 3.12

Establishes the North Carolina High School Redesign Commission within the Department of Public Instruction to explore and recommend changes to policies and systems governing high school and higher education that will better prepare North Carolina students for success as they transition to higher education or the workforce. Provides that the Commission consists of 15 specified members. Directs the Commission to elect a chair from one of four members appointed by the General Assembly. Provides that each members gets one vote for the chair except for the members to be appointed by the chair after the chair is elected. Requires the Commission to meet at least four times annually and on the call of the chair or as additionally provided. Provides that six members constitute a quorum and members may not vote by proxy. Provides that members shall be appointed to terms for the entire duration of the commission and any vacancy shall be filled by the appointing authority for the remainder of the term. Sets out 12 minimum duties of the Commission. Describes meeting and organization requirements. Requires the Commission to report annually to the Joint Legislative Education Oversight Committee by April 30, 2027, and specifies report contents. Provides that the Commission shall termination on the earlier of June 30, 2031, or upon filing its final annual report.

Section 3.13

Adds new subsection 7.39(r) to SL 2026-41 by specifying that the $400,000 in nonrecurring funds appropriated to the Board of Governors of the University of North Carolina for 2026-27 to be allocated to North Carolina State University for the Friday Institute to implement AI professional development models do not revert at the end of the 2026-27 fiscal year and shall remain available until the end of the 2027-28 fiscal year.

Section 3.14

Amends Section 7A.13 of SL 2026-41 (bonuses for school nutrition and custodial personnel) to clarify that all school nutrition and custodial personnel employed by (was, in) local school administrative units are eligible for $1,750 bonus. Excludes individuals employed in a local school administrative unit whose employer is not the local school administrative unit.

Section 3.15

Repeals Sections 7(b) and 7(f) of SL 2017-189 (regarding establishment of rules and accountability status for Educator Preparation Programs) and Section 4 of SL 2019-149 (regarding rule and reporting requirements). Requires the State Board of Education, in consultation with the University of North Carolina System Office, the Community Colleges System Office, and the North Carolina Independent Colleges and Universities, to report to the Joint Legislative Education Oversight Committee on recommendations for an educator preparation program accountability model by October 15, 2026. Effective when this section becomes law.

Section 3.16

Amends GS 116-36.10 as enacted by Section 8.20 of SL 2026-41 to change fund name to “UNC System Health Care Access Fund” (was, Rural Residency Medical Education and Training Fund). Provides that the fund shall be used for expenses for training, residency programs, and associated capital improvement projects and to develop and expand courses at constitute institutions of the University of North Carolina that lead to degrees in health care fields. Makes technical changes to section numbering.

Amends Section 8.20(b) of SL 2026-41 to name the UNC System Health Care Access Fund as recipient of allocation from the University of North Carolina System Office for funds appropriated to the Board of Governors of the University of North Carolina for the 2023-25 fiscal biennium for the Rural Residency Medical Education and Training Fund. Allocates to the Fund $4,898,216 in recurring funds appropriated to the Board of Governors and $4.5 million in nonrecurring funds budgeted from the Rural Health Care Stabilization fund for 2026-27. Allocates $9 million in recurring funds and $9.5 million in nonrecurring funds appropriated to the Board of Governors for the 2026-27 fiscal year for Healthcare Workforce Programs Expansion.

Section 3.17

Directs the North Carolina Collaboratory to submit findings of public school open enrollment study to the Joint Legislative Education Oversight Committee by June 1, 2027 (was, April 15, 2027).

Section 3.18

Directs the North Carolina Collaboratory to submit final report for study on shellfish aquaculture regulations to the Joint Legislative Oversight Committee on Agriculture and Natural Resources by December 1, 2027.

Section 3.19.

Amends Section 8.11 of SL 2023-134 (Collaboratory report on recovery court study results) to provide that the study shall consist of two phases. Provides that Phase I shall study programmatic aspects of judicially managed accountability and recovery courts (JMARCs) and Phase II shall evaluate processes and intended outcomes, including comparisons and cost-benefit evaluation. Authorizes JMARCs to share participant information with the Collaboratory and the University of North Carolina at Wilmington for purposes of this study only and prohibits public disclosure except as deidentified and aggregated information. Provides that the Collaboratory shall report Phase I results by October 1, 2024, and Phase II results by March 15, 2028, to eight listed committees and personnel. Sets out minimum report requirements for both phases. Effective when this section becomes law.

Effective retroactively to October 3, 2023.

Section 3.20

Provides that funds provided to the Collaboratory for scientific research on PFAS shall be used for research activities described in Section 8.27 of SL 2026-41 (Water Safety Act) as amended by this section.

Amends Section 8.27(a) and (b) of SL 2026-41 to provide that emerging contaminants include PFAS, 1,4-dioxane, and any other compounds the Collaboratory identifies as significant and in need of additional research. Makes conforming language change to seven listed areas of study.

Amends Section 8.27(f) of SL 2026-41 to direct Collaboratory to consult with the Department of Environmental Quality (DEQ) to carry out industrial discharger and significant industrial users study. Adds Publicly Owned Treatment Works (POTW) as potential sample collector for second phase of the study. Allows Collaboratory, DEQ, or the POTW to begin Phase 2 sampling at the same time as (was, upon completion of) Phase 1 sampling. Adds new subsection to provide that Collaboratory may include data collected by DEQ or POTW in the report required by this section.

Amends Section 8.27(g) directing Collaboratory to submit report to DEQ, the Environmental Management Commission, and the Environmental Review Commission summarizing Phase I results aggregated by POTW, county, or river basin (was, county or river basin).

Section 3.21

Amends Section 8A.13 of SL 2026-41 to clarify that the Reserve Fund for Early Graduate Scholarships shall be used to provide scholarships beginning in the 2027-2028 academic year beginning with students graduating high school in the 2025-2026 school year.

Section 3.22

Amends GS 115C-562.5 to provide that individual test data from tests administered by a nonpublic school accepting eligible students receiving scholarship grants is subject to collection by the State Education Assistance Authority and such data is not a public record under GS Chapter 132.

Effective July 1, 2026, and applies beginning with the 2026-27 school year.

Section 3.23

Adds new subsection (c) to Section 8A.14 of SL 2026-41 (Advise NC) to provide that the $2.5 million in nonrecurring funds appropriated to the Board of Governors of the University of North Carolina for the 2026-27 fiscal year to be allocated to the State Education Assistance Authority for the Advise NC College Access Initiative shall not revert at the end of the 2026-27 fiscal year and shall remain available under the end of the 2027-28 fiscal year.

Section 3.24

Amends GS 116-209.62(f1) as enacted by Section 8.5 of SL 2026-41 (reevaluation of teaching fellows programs) to add that the Director of the Program shall notify the State Education Assistance Authority of any educator preparation program removed from the North Carolina Teaching Fellows Program by February 1 prior to the academic year in which the program will no longer be eligible. Provides that any selected student eligible to receive a loan in the next academic year who is enrolled in the program that is being removed may continue to receive a forgivable loan for Program completion leading to initial teacher licensure or transfer to another selected institution with Director approval.

Section 3.25

Amends Section 8A.10 of SL 2026-41 (nursing fellows pilot program) to define eligible nursing student as a nursing student who is enrolled in and admitted to (was, enrolled in) a qualifying degree program at a qualifying institution of higher education beginning in the 2027-28 or 2028-29 academic year. Makes conforming language change (adding “and admitted to”) to other subsections.

Provides that funds remaining after program expenses and program administration shall be awarded as forgivable loans under the pilot program, with 30% of funds divided equally among qualifying community colleges and 70% for Winston-Salem State University.

Provides that forgivable loans awarded by the State Education Assistance Authority may be used for tuition, fees, the cost of books, and expenses related to obtaining licensure as a registered nurse (was, completion of the qualifying degree program).

Adds “awarding forgivable loans” to list of authorized administrative functions necessary for the Authority to implement this section.

Directs the Authority to forgive the loan amount received under the program over one year of enrollment (was, one third of the total amount received over the course of enrollment).

Section 3.26

Adds new Section 7.64 to Part VII of SL 2026-41 titled “Competitive Speech and Debate Grant Program.” Establishes Program for the 2026-27 school year and sets out Program purpose. Provides that the Program is to be administrated by the Department of Public Instruction (DPI).

Provides that any public school unit that includes a school serving students in grades nine through 12 is eligible to apply for a grant to develop, maintain, or expand an educational and competitive speech and debate team. Directs DPI to establish application process; applications must include, at minimum, a proposed budget. Provides that DPI shall award grants by October 31, 2026, up to a maximum of $10,000 per team per school year and sets out authorized uses for grant funds. Requires teams receiving Program funds to participate in the Tarheel Forensic League and the National Speech and Debate Association. Provides that a student at a school without a speech and debate team may participate on the team at the closest public school that is participating in the Program. Requires DPI to report on five specified criteria to the Joint Legislative Education Oversight Committee and Fiscal Research Division by May 15, 2027.

Increases the funds appropriated to the DPI by $250,000 in nonrecurring funds for 2026-27 to administer the Program.

Part IV

Section 4.1

Requires that when developing the base budget for each year of the 2027-29 biennium for the Department of Health and Human Services (DHHS), that the Office of State Budget and Management (OSBM) collaborate with DHHS in adjusting the requirements and receipts for the items funded by Section 9B.7 (funds for SNAP improvements) of SL 2026-41 to avoid an increase in the net General Fund appropriation for these items.

Section 4.2

Amends Section 9D.7 of SL 2026-41 by adding that the additional nonrecurring funds provided for Dolly Parton’s Imagination Library do not revert, but remain available until June 30, 2032, at which time they revert to the appropriate fund.

Section 4.3

Amends GS 108A-146.12 to require that the postpartum coverage component of the Medicaid hospital assessment be increased over the prior year’s quarterly amount by the Medicare Economic Index for each fiscal year after 2024-25 (was, 2025-26).

Section 4.4

Requires the State Controller to transfer $1.5 million for 2026-27 to DHHS, Division of Mental Health, Developmental Disabilities, and Substance Use Services, for a directed grant to HBOT 4 Heroes to provide hyperbaric oxygen therapy treatment for veterans with a traumatic brain injury or posttraumatic stress disorder. Decreases the funds provided as a directed grant to the Community Foundation of NC East by $1.5 million for 2026-27.

Section 4.5

Amends GS 112C-314 by changing the membership of the working group for the MAT Grant Program so that it includes the Director of the Division of Community Supervision of the Department of Adult Correction (was, Director of the Section of Community Corrections of the Department of Public Safety).

Section 4.6

Amends Section 9H.10 of SL 2026-41, concerning the JUUL settlement funds, by adding that effective July 1, 2026, the beginning fund balance for Budget Code 24433 is increased by $22.5 million for 2026-27. Prohibits DHHS from making the technical adjustment described on Page C97, Item 275 of the Committee Report.

Section 4.7

Increases the requirements and receipts budgeted to Budget Fund 133507 (NC Health Works - Reimburse County Costs) by $31,897,788 each in recurring funds for 2026-27.

Section 4.8

Changes the recipient of the directed grant to the Children’s Home Society Foundation, Inc., to the Children’s Home Society of North Carolina.

Section 4.9

Amends Section 9J.4 of SL 2026-41 by prohibiting additional expenses from being incurred beyond the funds budgeted for foster care for the Guardianship Assistance Program (GAP) or the Kinship Guardianship Assistance Program (KINGAP) (was, GAP only). Requires that GAP and KINGAP include extending guardianship services for individuals and youth who exited foster care through either program at 10 years of age or older (was, exited foster care through GAP after age 14) or who have attained age 10 and opt to continue to receive services until age 21 If they meet specified requirements. Makes additional conforming changes.

Section 4.10

Reduces the funds provided for the grant portion of the Responsible Fatherhood NC Program by $250,000 for 2026-27.

Amends Section 9J.13 of SL 2026-41 by decreasing the amount appropriated to the DHHS, Division of Social Services for 2026-27 that is to be used to implement the Responsible Fatherhood NC Program from $3 million to $2.75 million.

Section 4.11

Amends Section 9M.1 of SL 2026-41 by increasing the amounts appropriated from federal Block Grant funds to the Division of Child Development and Early Education for child care services and under the Community Services Block Grant for Community Action Agencies. Makes conforming changes.

Part V.

Section 5.1

Changes the recipient of funds for the North Carolinian Farm to School program from the Department of Public Instruction to the Department of Agriculture and Consumer Services (DACS).

Section 5.2

Appropriates from the General Fund to DACS $3,757,559 in recurring funds beginning in 2026-27 to restore vacant position funding eliminated in SL 2026-41.

Reduces the funds appropriated to the North Carolina Forest Services for emergency equipment repair and replacement needs by $2 million in recurring funds beginning in 2026-27. Appropriates $2 million from the General Fund to the North Carolinian Forest Services for 2026-27 in nonrecurring funds for emergency equipment and repair and replacement needs.

Reduces the funds allocated to the North Carolina Forest Services for the Prescribed Burning Cost Share Program by $1 million in recurring funds beginning in the 2026-27. Appropriates $1 million from the General Fund to the North Carolinian Forest Service in nonrecurring funds for 2026-27 to implement the Prescribed Burning Cost Share Program.

Section 5.3

Provides $10 million for 2026-27 as a directed grant to the Piedmont Triad Charitable Foundation (Foundation) to secure the qualifying event if it enters into (1) an agreement with the Department of Commerce (DOC) comporting with the requirements of this section and (2) an agreement with a sports championship tour organizer. States the NCGA’s intent, if the requirements of the agreement continue to be met, to appropriate additional funds in future acts in the aggregate amount of $30 million over an additional three fiscal years to continue holding qualifying events. Defines sports championship tour organizer as the PGA TOUR, Inc., (PGA), including any affiliated entity that can contract for and obligate the PGA, provided the PGA enters into a binding agreement with the Foundation requiring the PGA to hold at least four annual, consecutive qualifying events. Defines qualifying event as a PGA Tour Championship Series Event held for the highest tier ranking of professional golfers who qualify through PGA qualifications from the previous year, that is held in Greensboro, and that is in addition to any event meeting the same criteria held in the same year in the State. Requires all qualifying events to be held after January 1, 2028, and before December 31, 2031. Require an annual report from the Foundation to DOC by June 1 of each year following the year the agreement is entered into on the qualifying events required by this section that have been fulfilled.

Requires DOC and the Foundation to enter into an agreement for hosting the events that (1) includes all of the performance criteria, remedies, and other safeguards required by DOC to secure the State's benefit derived from holding the required events and (2) requires the Foundation to repay a proportionate amount of the grant for failure to meet and maintain the applicable performance criteria on which the grant was based.

Requires on September 1 of each year that requirements in the agreement entered into remain unfulfilled, for DOC to report to the committees or subcommittees responsible for appropriations for natural and economic resources in both the House and Senate, to the Joint Legislative Economic Development and Global Engagement Oversight Committee, and to the Fiscal Research Division; sets out what must be included in the report.

Section 5.4

Appropriates $23,489 in recurring funds beginning in 2026-27 from the General Fund to DOC for the Agency HR Consultant II position. Reduces the funds allocated to DOC for Administrative Operating Costs by $70,468 in recurring funds beginning in 2026-27.

Section 5.5

Appropriates $20,000 in recurring funds beginning in 2026-27 from the General Fund to DOC to be equally allocated to the North Carolina-India Trade Commission and the North Carolina-Ireland Trade Commission for administrative expenses.

Section 5.6

Appropriates $188,431 in recurring funds beginning in 2026-27 from the General Fund to DOC for continued operation of the Energy and Infrastructure Office; requires funds be used for the Assistant Secretary for Clean Energy Economic Development.

Section 5.7

Appropriates $25 million for 2026-27 from the General Fund to DOC for the 2027 Military World Games. Require a report on the use of the funds to the specified NCGA committee by October 1 of each year following the conclusion of each fiscal year in which funds are expended or incumbered. Provides that funds that have not been expended or encumbered by June 30, 2028, revert to the General Fund. Makes the allocation and expenditure of $17.5 million of these funds contingent upon the local organizing committee (1) securing commitments by August 1, 2026, for participation from at least 50 countries with a minimum of 7,500 total participants, and (2) receiving a Special Event Assessment Rating Level 1 or 2 from the Department of Homeland Security before June 25, 2027. Requires that the remaining $7.5 million be used to reserve facilities at UNC-Charlotte for hosting the Games.

Section 5.8

Amends GS 143B-437.02C, concerning the Micro-Budget Production Grant Fund, by adding that a production awarded grant is not eligible to receive a grant under GS 143B-437.02A (the Film and Entertainment Grant Fund).

Section 5.8A

Appropriates $15 million for 226-27 from the General Fund to DOC to be allocated to the Film and Entertainment Grant Fund.

Section 5.9

Allows fund allocated to Sylva in Section 12.3 of SL 2026-41 for repairs to the public works maintenance building to be used for repairs to buildings owned by the Town and for other pubic works facilities.

Section 5.10

Allows the Department of Environmental Quality to use funds appropriated in SL 2026-41 for emerging contaminant research to support and expand the capacity of the Division of Water Resources’ laboratory operations.

Section 5.11

Require that funds transferred in SL 2026-41 from the Commercial Leaking UST Fund to Budget Code 14300-102187 for administration to be transferred instead to Budget Code 14300-102189.

Section 5.12

Amends GS 159G-42 to allow the Department (was, required) to establish rules governing the disbursement of loan proceeds from the NCUC Emergency Reserve. Specifies that the disbursement of loan proceeds from the Reserve may include advance disbursements or up-front payments.

Section 5.13

Amends GS 159G-36, as amended, to prohibit the amount of merger/regionalization feasibility grants awarded from the Wastewater Reserve or the Drinking Water Reserve for a fiscal year from exceeding $75,000 (was, prohibited the grants for three consecutive fiscal years from exceeding that amount).

Section 5.14

Amends GS 143B-1320, as amended, by exempting the Department of Labor from the Department of Information Technology.

Section 5.15

Repeals Section 4.7 of SL 2026-42, which reallocated funds from the Department of Natural and Cultural Resources (DNCR) for the Great Trails Fund to the Town of Hope Mills, the Richmond County Sheriff's Department and the Baptist Children's Homes of North Carolina, Inc.

Reduces the funds appropriated to DNCR that were allocated to the Great Trails Fund by $1,090,000 for 2026-27.

Appropriates $1,040,000 for 2026-27 from the General Fund to OSBM to provide directed grants in the specified amounts to: the Town of Hope Mills, the Richmond County Sheriff's Department, the Baptist Children's Homes of North Carolina, Inc., Autryville, the Samantha and Kyle Busch Bundle of Joy Fund, and the South Caldwell Optimist Club, Inc.

Section 5.16

Allows funds allocated to the NC Museum of Art for the curator of Judaic art to be used for operational expenses.

Section 5.17

Appropriates $481,965 in recurring funds beginning in 2026-27 from the General Fund to DNCR to support the Office of Education and Outreach (Learning Happens Here); requires that funds be allocated to support the specified six positions.

Requires DNCR to transfer the specified position to Budget Fund 105101 and requires that the position be supported from General Fund appropriations instead of Department receipts. Allows any savings from this transfer to be used to support operations of the Office of Archives and History.

Reduces fund allocated to DNCR for software subscriptions by $481,965 in recurring funds beginning in 2026-27.

Section 5.18

Appropriates $1 million in recurring funds from the General Fund to the Wildlife Resources Commission beginning in 2026-27 to support operations.

Part VI.

Section 6.1

Amends Section 16.3 of SL 2026-41 by making the change to the number of magistrates under GS 7A-133 and the corresponding change in the number in Franklin and Vance Counties, effective July 13, 2026.

Section 6.3

Amends Section 16.25 of SL 2026-41, which allows IOLTA grants that are made available from funds not used to cover administrative expenses, by increasing the amount that may be used for grants of funds received before July 1, 2025, for programs designed to improve the administration of justice from $2 million to $2.5 million.

Section 6.4

Appropriates $1 million from the General Fund to the Department of Adult Correction for 2026-27 for a grant to Campbell University to support its Second Chance Initiative.

Section 6.5

Amends Section 19.6 of SL 2026-41 by requiring that Department of Public Safety (DPS) employees and contractors working in the Archdale Building move to the building housing the North Carolina Education Lottery by April 1, 2027 (was, December 1, 2026).

Section 6.6

Reduces the reduction in funds to Budget Fund 102607 and the increase in funds to Budget Fund 108500 by $116,297 in recurring funds beginning in 2026-27.

Section 6.7

Appropriates $105,000 for 2026-27 from the General Fund to DPS for operations costs from closing of a National Guard facility.

Section 6.8

Makes revisions to various justice and public safety budget funds.

Section 6.9

Amends GS 126-5 by increasing the number of employees the director of the State Bureau of Investigation (SBI) may exempt from the State Human Resources Act from 10 to 15. Makes conforming changes to GS 126A-15.

Section 6.10

Repeals GS 143B-1209(b1), which required the Samarcand Training Academy’s operation budget to be funded by the SBI, but that it would be independent of the operation budget of any division within the SBI and be managed and administered by the Director of the Academy with oversight by the Director of the SBI.

Section 6.11

Enacts new GS 143B-1208.4A allowing the SBI to elect to be exempted from oversight by the Department of Administration on the matters of purchasing, contracts, acquisition and maintenance of real property, and leasing of office space. Requires any SBI acquisition of real property under this statute to be approved by the Council of State.

Section 6.12

Enacts new GS 143B-1706 allowing the State Highway Patrol to elect to be exempted from oversight by the Department of Administration on the matters of purchasing, contracts, acquisition and maintenance of real property, and leasing of office space. Requires any Highway Patrol acquisition of real property under this statute to be approved by the Council of State.

Part VII.

Section 7.1

Appropriates $500,000 for 2026-27 from the General Fund to the Office of Administrative Hearings for costs associated with Rules Review Commission litigation.

Section 7.2

Allocates 17 of the 25 full-time equivalent positions that were allocated to Budget Fund 100701 Administration to Budget Fund 100703 Field Audit Division instead.

Changes the appropriation for $500,000 in recurring funds from Budget Fund 100701 Administration to audit the Annual Comprehensive Financial Report to Budget Fund 100703 Field Audit Division instead for the same purpose.

Changes the appropriation of $2.5 million in recurring funds appropriated to Budget Fund 100701 Administration to investigate Medicaid waste and abuse and a related report to Budget Fund 100700 State Auditor-General Fund for the same purpose.

Section 7.3

Appropriates $10 million for 2026-27 from the General Fund to OSBM for the Rural Health Care Stabilization Program.

Section 7.4

Amends Section 26.10 of SL 2026-41 by removing the allocation of funds from the appropriated to the OSBM—Special Appropriations for Yanceyville, Charlotte Healthcare Coalition, Inc., Care Ring, Inc., Southeaster Healthcare of North Carolina, Inc., and Cabarrus County. Adds allocations for Fayetteville Technical Community College and Wilkes Community College for the Community College Seamless Skills Initiative, to Fayetteville Technical Community College for cybersecurity education, and to the Leggett Volunteer Fire Department.

Amends the directed grants allocated by the OSBM—Special Appropriations for 2026-27 as follows. Allows Yanceyville to use the $500,000 for water and wastewater infrastructure and adds $500,000 for capital projects. Allows King to use its grant for parking improvements or any public purpose. Increases the grant to Southeastern Healthcare of North Carolina, Inc. Increases the grant to Care Ring, Inc. Increases the grant to Charlotte Healthcare coalition, Inc. Allocates a grant for the Odell Volunteer Fire Department #2. Reduces the grant to Mebane for water, wastewater, and stormwater. Increases the grant to Swepsonville for water, wastewater, and stormwater. Reduces the grant to Graham for water, wastewater, and stormwater. Increases the grant to Green Level for water, wastewater, and stormwater. Changes the grant to Foundation Forward NC., so that is now provided to the same nonprofits as for Charters of Freedom settings in counties where there are not yet Charters of Freedom settings. Allocates the funds appropriated to Vass to partners for Children & Families, Inc. Changes the grant to Bear Creek Volunteer Fire Department, Inc., to Onslow County Fire Rescue. Requires the grant to Surry County be allocated for any public purposes instead of water and wastewater needs. Changes the grant to Lumbee Nations, Inc, to Lumbee land Development, Inc. Expands the allowable uses of the grant to the North Carolina Coastal Federation, Inc. Reduces the grant to the North Carolina Police Benevolent Association, Inc. Changes the grant to Moore County for the Davis Community Center to the county for water and wastewater infrastructure. Requires that $50,000 of the $250,000 allocated to Craven County for various capital improvements be allocated as a grant to Havelock for any public purpose. Changes the title of the funds to the Southeastern Drainage Office. Requires $500,000 of the funds allocated to DOT under that item to be used for a grant to the Office for its activities in assisting drainage districts. Reduces a grant to Cleveland County and increases another grant to Cleveland County by $500,000. Reallocates the grant to Clemmons Civic Club to Shallow Ford Foundation, Inc., and to Clemmons. Reduces the grant to Guilford Technical Community College. Changes the Bertie County grant so that it is now for a new 911 call center. Requires the grant to Pitt County for water and wastewater infrastructure now be used for any public purpose. Changes the recipient of the grant to I-CARE. Changes the recipient of the grant to Champion House of Care, LLC. Increases the grant to Habitat for Humanity of Goldsboro-Wayne, Inc.

Makes additional technical and clarifying changes.

Section 7.5

Species that the grant to Friends of the North Carolina Maritime Museum for a fire suppression system does not revert until June 30, 2028.

Section 7.6

Specifies that the grant to Johnston County for the Bentonville State historic Site does not revert until June 30, 2028.

Section 7.7

Requires that any remaining funds allocated to Edgecombe County to assist with costs associated with the fire at the QVC facility and cleanup and of the QVC employee support program be used instead for economic development purposes.

Section 7.8

Reallocates the directed grant from DPI to Family First, Inc., to OSBM for a directed grant to the same entity.

Section 7.9

Repeals Section 26.3 of SL 2026-41, which appropriated $1 million to OSBM for CAGC Foundation, Inc., for community college programs.

Adds new Section 26.3A, providing as follows. Provides that $1 million from the funds appropriated to OSBM for 2026-27 for CAGC Foundation, Inc., must be used for the same purposes listed in Section 26.3, but no longer includes a definition of eligible participant for grants to employers for internships, apprenticeships, and other work-based learning for eligible participants.

Section 7.10

Amends GS 143B-9 by specifying that the appointment of each head of principal State Department is subject to senatorial advice and consent in conformance with the Constitution during the legislative biennium in which the appointment was made. Adds that if it does not provide for an appointment before the earlier of adjournment sine die or the end of the legislative biennium, the appointee will no longer serve as the head of that department and the Governor must not reappoint that person as the head of that department during the Governor’s term of office. Applies beginning with appointments made during the 2025-26 legislative biennium.

Section 7.11

Amends Section 32.1 of SL 2026-41. Requires Department of Insurance (DOI) and Office of the State Fire Marshal (OSFM) to seek to renew their current leases for a 1-year period if an adequate State-owned building cannot be leased by September 30, 2028, for DOI and October 31, 2026, for OSFM (was, requires DOI and OSFM to renew its current lease).

Section 7.12

Notwithstanding SL 2026-41, amends reduction in recurring funds to DOI for staffing purposes to $1.5 million (was, $2,712,285 reduction).

Section 7.13

Effective January 1, 2027, and consistent with SL 2026-41 Section 44.5(i), DOI may use up to $1.2 million in nonrecurring funds from the available cash balance of the Insurance Regulatory Fund (IRF) for expenses incurred by representation of DOI by NC Department of Justice attorneys, consistent with approved use of IRF funds under GS 58-6-25(d)(6) immediately before its amendment by SL 2026-41 Section 44.5(c). Clarifies nothing in this section limits DOI’s ability to use available funds collected and placed in the IRF before January 1, 2027, for any other allowed purpose in SL 2026-41 Section 44.5(i).

Section 7.14

Notwithstanding SL 2026-41, of the funds appropriated to the State Property Fire Insurance Fund, $20 million in nonrecurring funds for 2026-27 must be allocated to the Public School Insurance Funds.

Section 7.15

Notwithstanding SL 2026-41, of the funds appropriated to DOI to cover the increase in motor fleet management rates and to address existing shortfall in motor fleet accounts, $100,000 in recurring funds must instead be allocated to OSFM for the same purpose.

Section 7.16

Provides intent of NCGA. Amends GS 58-78A-1(a), as amended by SL 2026-41 Section 13.4(a), requiring DOI to provide clerical and professional services for the listed purpose to OSFM upon OSFM request (was, requires DOI to provide those services). Appropriates $1,253,491 in recurring funds from the General Fund to OSFM to create the listed full-time equivalent positions. Transfers Assistant General Counsel I position from Department of Labor to OSFM. Effective July 1, 2026.

Section 7.17

Effective July 1, 2026, OSFM must fully manage and control the listed budget codes. Requires OSFM, DOI, Office of the State Controller (OSC) and the Office of State Budget and Management (OSBM) to work together to identify budget funds within listed budget codes and move those funds to corresponding codes under OSFM’s authority.

Section 7.18

Amends GS 143B-1294(c), as amended by SL 2026-41 Section 35.2(a) by permitting the Veterans’ Affairs Commission to delegate authority to expend funds from the NC Veterans Home Trust Fund to the Secretary of the Department of Military and Veterans Affairs (was, the Assistant Secretary of Veterans Affairs) for any purpose authorized under GS 143B-1293(c) (was, for operations of the State Veterans Nursing Home).

Sections 7.19 –7.21

Makes the following appropriations from the General Fund to the Department of the Secretary of State: (1) $200,000 in recurring funds and $545,000 in nonrecurring funds for 2026-27 to implement GS 55A-16-22.1’s annual report requirement; (2) $160,000 in nonrecurring funds for 2026-27 for an intellectual property prosecutor to assist with department duties pursuant to the Trademark Registration Act and other applicable laws; (3) $255,000 in recurring funds beginning 2026-27 to provide two full-time equivalent positions and subscription costs to carry out Secretary of State duties under GS 64-63(c) and (d) (Prohibited foreign party acquisition of certain lands prohibited).

Section 7.22

Notwithstanding expiration of GS 10B-25 (emergency video notarization) and GS Chapter 10B, Article 3 (video witnessing during state of emergency) on July 1, 2026, any emergency video notarization or emergency video witnessing performed prior to SL 2026-52 enactment are deemed validated if performed July 1, 2026, through July 7, 2026.

Section 7.23

Amends GS 147-71.2, effective October 1, 2026, which provides duties of the NC Investment Authority’s Board of Directors. Amends Authority’s authorization to independently retain services of listed professionals notwithstanding certain, listed statutes by adding (1) GS 126A-52, relating to private personnel service (added by SL 2026-40), to the listed notwithstanding statutes and (2) recruitment firms to listed professionals the Authority may independently retain.

Subsection (b) provides that notwithstanding any provision of law to the contrary, the Authority is authorized to independently retain services of recruitment firms. Subsection (b) expires October 1, 2026.

Section 7.24

Amends GS 159-30(c)(13), as amended by SL 2026-41, which allows local governments or public authorities to invest idle funds in certain classes of securities by changing the conditions required for investment in one of the listed classes of security: in connection with funds held by or on behalf of a local government or public authority that are subject to the arbitrage and rebate provisions of the Internal Revenue Code, participating shares in tax-exempt mutual funds, to the extent participation in whole or part is not subject to rebate provisions, and taxable mutual funds, to the extent funds provide services in connection with the calculation of arbitrage rebate requirements under federal income tax law. Now requires that one (was, all) of the following be met (1) if the mutual fund is taxable (previously, no distinction between taxable and tax-exempt funds) it must be registered with the US Securities and Exchange Commission as a government money market fund that invests primarily in US government securities, cash, or repurchase agreements collateralized by government securities and must seek to maintain a stable $1.00 net asset value per share and (2) if the mutual fund is tax-exempt, investments of the fund are limited to those bearing one of the two highest ratings of a nationally recognized rating service and not bearing a rating below one of the two highest ratings by any nationally recognized rating service which rates the particular fund.

Section 7.25

Provides definition of unexpended bond proceeds as used in the section. Requires OSBM to, at direction of the State Treasurer, use unexpended bond proceeds that are not reasonably anticipated to be needed for the projects and purposes they were issued for to do any of the listed actions that can be taken without resulting in adverse tax consequences or violating categories of uses contained in the bond question the indebtedness was approved by voters, where applicable. Requires Treasurer to maximize savings and minimize costs to the State. Provides that to the extent unexpended bond proceeds are used to reimburse funds previously paid or to pay costs that would have been paid from other funds, those other funds are not an “appropriation made by law,” as used in NC Constitution, art. V Section 7(1). Requires funds to be deemed and remain unappropriated unless the NCGA subsequently appropriates the funds. If the funds are in the State Capital and Infrastructure Fund (SCIF), the funds must be invested by the Department of the State Treasurer and any earnings and interest deposited in the SCIF. For proceeds of public improvement bonds and notes and premium that were authorized in SL 2015-280, allocated to the Department of Environmental Quality for Statewide Water/Sewer Loans and Grants, placed in the Water Infrastructure Fund, and used for low-interest loans pursuant to SL 2015-280 Section 1, sub-subdivision (f)(2)d, the Department is permitted to repurpose repaid loan funds as grants that comport with requirements of sub-subdivision (f)(2)d., notwithstanding the dollar limitation for grants.

Part VIII.

Section 8.1

Amends SL 2026-41, Section 40.6(b) by removing the requirement that the Department of Health and Human Services and the Department of Information Technology work with the Government Data Analytics Center and CJLEADS to implement real-time data availability for the Behavioral Health Statewide Central Availability Navigator (BH-SCAN) and give law enforcement access to BH-SCAN.

Part IX.

Section 9.1

Requires that appropriations to the State Board of Community Colleges pursuant to SL 2023-134 and SL 2021-180 must be used for hard-to-recruit and hard-to-retain faculty positions in high-demand fields.

Section 9.2

Clarifies that to the extent appropriation reductions in the Committee Report described in SL 2026-41 Section 45.2 as an elimination of unused Labor Market Adjustment Reserve funds exceeds an agency’s undistributed balance of those funds, the agency must achieve required savings from other salary line items. Director of the Budget must adjust the certified budget of each affected agency.

Part X.

Sections 10.1–10.2

Add new sections to SL 2026-41 Part XLII. Adds Section 42.11A requiring proceeds from sale of Chancellor’s residence at Fayetteville State University (FSU) to be retained by FSU and deposited into a special fund used only to purchase another residence for the Chancellor. Adds Section 42.14A allowing funding allocated for project code DPS23-1 to be used for the expansion of existing youth detention facilities notwithstanding the Committee Report in Section 45.2 of SL 2026-41, or any other provision of law.

Part XI.

Section 11.1

Repeals SL 2026-41 Section 43.11 related to the DMV in-home license renewal pilot program. Adds new Section 43.11A to Part XLIII of SL 2026-41, which requires the Department of Transportation (DOT), Division of Motor Vehicles (DMV) to study and provide a plan for implementing a pilot program in Forsyth County authorizing either the DMV or third-party vendors to provide in-home drivers license renewal services. Requires the DMV to report its findings and recommendations to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division by January 1, 2027.

Section 11.2

Authorizes and requires the DMV to establish or amend rules to clarify that the requirements of the administrative code subsection related to the Operation of Safety or Emissions Inspection Stations (19A NCAC 03D .0523(f)) do not apply to public school units or community colleges within 180 days of the section’s effective date. Rules established or amended pursuant to this section apply to enrollment contracts entered on or after required rules become effective. Effective when it becomes law and expires on the date rules required by the section become effective.

Section 11.3

Amends SL 2026-41 Section 43.22(b) requiring the Department of Transportation pavement preservation study report by March 1, 2027 (was, by the convening of the 2027 Regular Session of the 2027 NCGA).

Section 11.4

Amends GS 136-17.3, as enacted by SL 2026-41 Section 43.21(a) by removing GS 136-17.3(a)(15) authorizing the Board of Transportation to set reasonable fees for DOT owned rail corridors under GS 136-18(10).

Section 11.5

Provides technical correction to the Wake Forest/Rolesville Driver License Office funding allocation in SL 2026-41, Section 45.2 from an allocation to the Wake Forest/Rolesville County Driver License Office to an allocation to the Wake Forest/Rolesville Driver License Office.

Section 11.6

Amends GS 20-26(b1), as amended by SL 2026-41, Section 43.10(f), providing that the registered or declared weight on a vehicle registration or certified copy of the Division record sent by the State Highway Patrol (was, the Department of Public Safety) or otherwise is admissible in any judicial or administrative proceeding and is prima facie evidence of the weight.

Makes technical correction to amendment of GS 20-85(a), as amended by Section 43.10(y) of SL 2026-41, related to title and registration fees for motor vehicles by correcting the fee amount SL 2026-41 removed from GS 20-85(a)(6) to $25.00 (was, $21.50 in SL 2026-41) for each application for a duplicate registration card.

Section 11.7

Amends GS 136-131.5(e), as enacted by SL 2026-41, Section 43.20(a) by eliminating the provision that the relocation of a lawfully erected outdoor advertising sign removed because of DOT right-of-way acquisition must be subject to the local ordinances and regulations in effect at the time the sign was erected.

Amends GS 136-133(d) and (e), as enacted by SL 2026-41 Section 43.20(b). Requires approval or denial of a permit for a new outdoor advertising sign to occur within 45 days of receiving a completed application and all required fees/documentation (was, 30 days). Provides that an outdoor advertising permit can be revoked for a first-time violation of GS Chapter 136, Article 11 if it is a zoning, size, lighting, or spacing violation (was, no revocation for any first-time violation). Provides technical correction to GS 136-133(e).

Part XII.

Section 12.1

Modifies Sampson County local sales tax effective date in SL 2026-41 Section 44.11(d) from effective when it becomes law, to effective when it becomes law, but no tax authorized under the section can be levied before July 1 of the year following the referendum.

Section 12.2

Amends GS 105-113.39A, as amended by SL 2026-41 Section 44.6(a3). Provides that a specialty retailer of vapor products that holds a valid license under subsection (a3) is subject to the licensing requirements under subsections (a1) (other tobacco products license) or (a2) (vapor products license) of GS 105-13.39A for the same location (was, a specialty retailer of vapor products with a valid license under (a3) is not required to obtain a retail dealer license under subsections (a1) or (a2)). Effective July 1, 2027.

Amends GS 143B-245.11, as amended by SL 2026-41 Section 44.6(d2). Amends subsection (a) by requiring every manufacturer of vapor and consumable products sold for retail sale in NC to provide certification to the Secretary that the vapor or consumable product is commercially marketed and not subject to federal enforcement priority under a published FDA enforcement policy, as of July 1, 2026 (was, that the vapor or consumable product is otherwise marketed pursuant to a published FDA enforcement policy as of July 1, 2026). Amends subsection (f) by making technical changes and requiring manufacturers of vapor or consumable product sold for retail in NC to submit documentation substantiating compliance with changed federal requirements or standards (was, requirements) to the Secretary for a vapor or consumable product within 30 days of the mandated date of compliance. Makes conforming changes throughout subsection reflecting addition of federal standards, including amending the defined phrase federal requirements for vapor products or consumable products to a defined term changed federal requirements or standards (definition remains the same).

Amends GS 143B-245.15, as amended by SL 2026-41 Section 44.6(d6) by (1) providing that the SBI may request (was, direct) the appropriate law enforcement official to investigate an alleged violation of GS 143B-245.13 related to prohibited products from retail sale of consumable and vapor products and (2) providing that noncompliant products identified for sale by a State or local law enforcement official may be subject to immediate seizure by the official and forfeiture and destruction by the seizing law enforcement agency (was, by the ALE Division) and permits the seizing agency (was, the ALE Division) to store and dispose of the seized products as appropriate.

Amends SL 2026-41 Section 44.6(e) by adding that subsection (a1) of Section 44.6 is effective October 1, 2026, and applies to sales or purchases occurring on or after that date (was, July 1, 2027). Makes conforming changes.

Clarifies that notwithstanding Section 44.6(e), as amended by Section 12.2, GS 143B-245.12(b)(6), as enacted by SL 2026-41 Section 44.6(d3) is effective when Section 12.2 becomes law.

Part XIII.

Section 13.1 provides adjustments to appropriations.

Section 13.2

Except as otherwise provided, this act is effective July 1, 2026.

Senate committee substitute to the 1st edition removes the content of the previous edition and replaces it with the following. Makes conforming changes to the act's titles. 

Section 1.1

Increases the amount appropriated under Section 5.1 of SL 2025-89 from the State Capital and Infrastructure Fund to the Office of State Budget and Management from $823,565,897 to $1,066,700,516 and adds allocations to the following budget codes: DPS23-3, DPS23-7, UNC/NCS23-4, UNC/A&T23-2, and UNC/NCC23-1. Requires that $100 million for 2025-26 be used exclusively for repairs and renovations projects at North Carolina Central  University. Prohibits the Board of Governors from negatively weighing repair and renovations project funding allocations against North Carolina Central University with respect to the additional funding described in this subsection, and the funds described are in addition to and shall not supplant any funds currently earmarked or projected to be allocated to North Carolina Central University for repairs and renovations during the 2025-27 biennium. Makes conforming changes.

Amends Section 40.1(b) of SL 2023-134 by increasing the amount authorized for the following capital projects: DPS23-3 and DPS23-7.

Adds the following to Section 5.1 of SL 2025-89. Appropriates $2 million from the General Fund to the State Bureau of Investigation for 2025-26, with $1 million to be used for each of the following: (1) up to 125 Viper radios and (2) up to 14 replacement cars. Appropriates $3 million from the IT Reserve to the State Bureau of Investigation for 2025-26 for a case management system.

Part II.

Section 2.1

Provides that if this act and GS 143C-5-4 are in conflict, the provisions of this act prevail. The appropriations and the authorizations to allocate and spend funds which are set out in this act remain in effect until the Current Operations Appropriations Act for the applicable fiscal year becomes law, at which time that act becomes effective and governs appropriations and expenditures. When the Current Operations Appropriations Act for that fiscal year becomes law, the Director of the Budget is required to adjust allotments to give effect to that act from July 1 of the fiscal year.

Section 2.2

Effective retroactively to July 1, 2025.