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

Reorganizes the existing provisions into Section 2 and adds the following new content. Makes conforming changes to the act’s titles.

Part I.

Enacts new GS 115C-102.10 requiring the State Board of Education (Board) to adopt rules requiring all public school units to evaluate the following when acquiring technology, computer hardware, and software: (1) long-term cost of ownership, including costs of repairing the technology, computer hardware, or software; (2) any flexibility for innovation during the life of the technology, computer hardware, or software; and (3) any anticipated resale or salvage value at the end of the target life cycle for the technology, computer hardware, or software based on the average resale or salvage value of similar technology, computer hardware, or software as a percentage of the initial cost of purchase.

Enacts new GS 115C-102.11, providing as follows. Requires the governing body of each public school unit to report annually by August 15th to the Board on the break/fix rate (as defined) of school technology devices and other items related to school technology. Also requires the Board to report annually by November 15th to the specified NCGA committee on the break/fix rate of technology across all public schools, including a summary of the data reported by public schools as well as recommendations on how to reduce the break/fix rates in the future.

Sets the first reporting deadline on August 15, 2026, based on data collected during the 2025-26 school year and requires the State Board’s first report by November 15, 2026.

Amends GS 115C-12 to require the State Board to adopt rules governing public school units evaluating technology costs. Amends the following statutes to require the specified entity adopt a policy requiring the evaluation of technology costs considerations adopted by the State Board and to report to the Board on their break/fix rate of technology: (1) GS 115C-47 (local boards of education); (2) GS 115C-150.12C (schools for deaf and blind students); (3) new GS 115C-218.33 (charter schools); (4) 115C-238.66 (regional schools); and (5) GS 116-239.8 (laboratory schools).

Applies beginning with the 2025-26 school year.

Enacts new GS 115D-9.40 (applicable to the State Board of Community College) and amends GS 116-11 (applicable to the UNC Board of Governors) requiring all community colleges/UNC constituent institutions to evaluate the following when acquiring technology, computer hardware, and software: (1) the long-term cost of ownership, including costs of repairing the technology, computer hardware, or software; (2) any flexibility for innovation during the life of the technology, computer hardware, or software; and (3) any anticipated resale or salvage value at the end of the target life cycle for the technology, computer hardware, or software based on the average resale or salvage value of similar technology, computer hardware, or software as a percentage of the initial cost of purchase.

Applies beginning with the 2025-26 academic year.

Part III.

Amends GS 115D-20 (pertaining to community college trustees) to expand academic transition pathways to include qualified high school sophomores, as title indicates (currently, just qualified high school juniors and seniors). Applies beginning with the 2025-26 school year.

Part IV.

Adds new Part 8A, Military Admissions and Deferment, to Article 1 of GS Chapter 116, providing as follows.

Prohibits a constituent institution of UNC from denying admission to any applicant solely because of serving or intending to serve in the uniformed service (Armed Forces, Reserve Armed Forces, or the Merchant Marine).

Requires the UNC Board of Governors to adopt a policy requiring constituent institutions to allow members of the uniformed services and their spouses to defer admission to a constituent institution, if it is requested at least 30 days before enrollment, for the following periods of time: (1) for applicants who are members of the reserve Armed Forces and their spouses, for at least two years after entry into the reserve Armed Forces; and (2) at least five years after accepting entry into active duty service for all other applicants. Defines Armed Forces as the AirForce, Army, Coast Guard, Marine Corps, Navy, Space Force, and NC National Guard.

Applies beginning with the 2025-26 academic year.

Part IV.

Sets out the section’s purpose as authorizing the financing of the capital improvement projects listed in this act for the respective UNC institutions with funds available to the institutions from gifts, grants, receipts, self-liquidating indebtedness, Medicare reimbursements for education costs, hospital receipts from patient care, or other funds, or any combination of these funds, but not including funds received for tuition or appropriated from the General Fund or State Capital and Infrastructure Fund of the State unless previously authorized by General Statute. Authorizes the following capital improvement projects, and their specified costs, to be financed as provided above: (1) UNC-Chapel Hill: Electrical Distribution System/Substations & Switchgear Upgrade, and Fetzer Hall Addition/Campus Recreation; (2) UNC-Wilmington Parking Deck III, and Student Housing Village - Phase III. Allows the Director of the Budget, at the request of the UNC Board of Governors and upon determining that it is in the best interest of the State to do so, to authorize an increase or decrease in the cost of, or a change in the method of, funding the projects listed in this act; allows consulting with the Joint Legislative Commission on Governmental Operations in deciding whether to make such changes. 

Allows the UNC Board of Governors to issue, subject to approval of the Director of the Budget, at one time or from time to time, special obligation bonds of the Board of Governors for the purpose of paying all or any part of the cost of acquiring, constructing, or providing for the projects listed above. Caps the maximum principal amount of bonds to be issued at the amounts specified in the act plus 5% of such amount to pay issuance expenses, fund reserve funds, pay capitalized interest, and pay other related additional costs plus any increase in the specific project costs authorized by the Director of the Budget. 

Part VI.

Adds new GS 1C-1601.5, pertaining to certain tax-advantaged accounts, as follows. Defines qualifying account as an education savings and investment plan account qualified under section 529 of the Internal Revenue Code (IRC) or an ABLE account qualified under section 529A of the IRC. Defines qualifying purpose as any purpose permitted under Section 529 of the IRC (education savings and investment plan accounts) or any purpose permitted under Section 529A of the IRC (ABLE accounts), as applicable. Directs that funds located in a qualifying account or withdrawn from the account and used for a qualifying purpose are not subject to liens, attachment, garnishment, levy, seizure, any involuntary sale or assignment by operation or execution of law, or the enforcement of any other judgment or claim to pay any debt or liability of any account owner, beneficiary, or contributor to an account, notwithstanding any other provision of law including GS 1C-1601(e) (listing certain federal claims that are not subject to the State’s property exemptions). Specifies that GS 1C-1601.5 does not prevent distribution of ABLE funds following the account owner’s death or limit enforcement of judgments or claims on funds either not used for a qualifying purpose or that were deposited into a qualifying account as a result of fraud, intentional wrongdoing or other violation of law.

Repeals GS 1C-1601(a)(10) (pertaining to limits on funds of college savings plans under Section 529 of the IRC).

Applies to actions filed on or after September 1, 2025. 

Part VII.

Amends the NC Uniform Athlete Agents Act (Article 9 of GS Chapter 78C) to provide for certain types of student-athlete contracts, as follows. Defines terms name, image, and likeness (NIL) agency contract (an agreement in which a student-athlete authorizes a person to negotiate or solicit an NIL contract on behalf of the student-athlete), name, image, and likeness (NIL) contract (a contract between a student-athlete and any entity in which the student-athlete receives consideration in exchange for the license or use of the student-athlete's name, image, or likeness), and professional-sports-services agency contract (an agreement in which a  student-athlete authorizes a person to negotiate or solicit a professional-sports-services contract on behalf of the student-athlete). Makes conforming changes to defined term agency contract to include an NIL contract. Removes the term endorsement contract.

Amends GS 78C-94(c) (pertaining to the required form of contracts) to specify that the conspicuous boldface warnings set forth in that subdivision only apply to professional-sports-services agency contracts (currently, applies to agency contracts). Requires an NIL agency contract to contain the specified boldfaced notice in close proximity to the signature. 

Amends GS 78C-95 (pertaining to notice to educational institution) to specify that when a student-athlete enters into professional-sports-services agency contracts they must provide certain notice to certain personnel in their educational institution (currently, only applicable to agency contracts).

Amends GS 78C-98 to provide that if an athlete agent is currently or was within the prior two years employed or in a contractual relationship with an educational institution, the following applies: (1) the athlete agent cannot enter into an NIL agency contract with a student-athlete who is enrolled in that educational institution and (2) an NIL agency contract is void if, following entry into an NIL agency contract, a student-athlete enrolls in that educational institution. Makes conforming changes to GS 78C-88 (pertaining to athlete agents).

Applies to NIL contracts entered into on or after the date the act becomes law.

Part VIII.

Amends GS 132-1.2 (confidential information under State public records law) to bar public agencies from disclosing records related to a student-athlete's name, image, and likeness contract. Effective when the section becomes law and applies retroactively to all records related to a student-athlete's name, image, and likeness contract ever in the possession of the institution of higher education.