House committee substitute to the 1st edition replaces the content of the previous edition with the following and makes conforming changes to the act’s titles.

Part I.

Section 1

Requires the Department of Agriculture and Consumer Services (DACS) to update the Strategic Plan for Protecting Agricultural Water Resources to include six additional topics, including: (1) water infrastructure needs to increase access and long-term storage capacity, (2) methods to identify best management practices for temporary water storage and retention to mitigate downstream flooding, and (3) methods to design incentive programs to compensate landowners that participate in flood mitigation programs. Requires DACS to report to the specified NCGA committee by October 1, 2026, on the development of the plan and any legislative changes needed to implement the plan.  

Section 2

Establishes the 10-member Feral Swine Working Group (Working Group), housed within the Wildlife Resources Commission (Commission), tasked with developing a statewide plan to control feral swine damage on private and public lands. Requires the Working Group to act in an advisory capacity to the Commission. Sets out four specific tasks in developing the plan, including orienting the plan toward public health and safety and toward landowner assistance, providing some relief to landowners through feral swine control, management, and eradication. Requires the Working Group to report annually to the Commission and specified NCGA entities on the results of the program. Requires the Commission to implement the plan and allows entering into a cooperative agreement with the Wildlife Services Division of the Animal and Plant Health Inspection Service, the US Department of Agriculture, DACS, and other relevant agencies or organizations to accomplish the plan.

Section 3

Amends GS 160D-705 to allow a special use permit to be denied for property owned by a business entity for at least three years on the basis that the proposed land use will have a negative impact on agricultural production within the local government’s jurisdiction; however, this does not apply where the primary purpose of the proposed land use is the construction of buildings or structures subject to the North Carolina Residential Code.

Section 4

Repeals GS 143-215.6E, which concerned the Violation Points System applicable to permits for animal waste management systems for swine farms.

Section 5

Amends GS 106-803 and GS 106-805 to correct the references to laws on requirements for animal waste management systems.

Section 6

Amends Section 10.4 of SL 2023-134, concerning the animal waste fertilizer conversion cost-share program, by expanding upon eligible entities to also include any person converting sludge from an anaerobic lagoon or other liquid animal waste management system treating animal waste from a livestock operation into fertilizer products.

Section 7

Amends GS 106-549.97, concerning regulation of farmed cervids produced and sold for commercial purposes, by amending the definition of farmed cervid by adding a definition of cervids that are susceptible to chronic wasting disease. Allows any cervid that is not susceptible to chronic wasting disease to be imported into the State to any licensed captive cervid facility.

Section 8

Requires the Disposal Systems Rule, 15A NCAC 02T .0113, to be implemented as follows. Requires the Environmental Management Commission (EMC) to deem a disposal system to be permitted and not require individual permits or coverage under a general permit if the system meets all of the following: (1) the disposal system is used for equine or bovine composting; (2) the disposal system does not result in any violations of surface water or groundwater standards; (3) the disposal system does not directly discharge to surface waters; (4) the construction and operation of the facilities, if they are included in the disposal system, are approved by DACS; (5) the disposal system is approved by the State Veterinarian; and (6) in the event of an imminent threat of a contagious animal disease, any emergency measure or procedure related to composting of animal mortality pursuant to GS 106-399.4(a) is authorized. Requires the EMC to adopt a rule to amend the Rule so that it is consistent with this provision.

Section 9

Amends GS 115C-379 to allow a minimum of two excused absences from school each academic year for participation in equestrian sporting events, livestock shows, or similar agricultural events, in addition to the already allowed absences for religious observance and military leave. Makes conforming changes.

Section 10

Amends GS 106-942, concerning the requirement of permits for fires in woodlands in high hazard counties, by making the statute also applicable in New Hanover and Pender counties.

Section 11

Amends GS 143-442, concerning registration of pesticides, by removing the specified fees for the annual assessment, instead allowing the amount to be set by the Pesticide Board with a cap of $125.

Section 12

Amends GS 119-57 to also allow agents of the Commissioner of Agriculture to take on the Commissioner’s duties over Article 5, Liquefied Petroleum Gases. Also gives the Commissioner or the Commissioner's authorized agents authority to: (1) access the premises and records of any place where liquefied petroleum products are stored for the purpose of conducting an inspection or examining any documentation related to the transport, sale, safety, and storage of liquefied petroleum gases; (2) issue stop-sale, hold, and removal orders for any equipment used to dispense, store, or transport liquefied petroleum gases that is found in violation of the provisions of GS Chapter 119 or rules adopted pursuant to the Chapter; and (3) recall for inspection a vehicle used for the delivery of liquefied petroleum gas.

Section 13

Amends GS 81A-52, concerning licensure of public weighmasters. Requires weighmasters to be licensed for a period of one year that begins the day the application is processed (was, beginning the first day of July and ending June 30) and raises the licensing fee from $19 to $25. Amends GS 81A-54 by expanding upon the items that must be listed on a weighmaster’s seal and removing the $6 fee. Adds provisions governing how the weighmaster’s signature must be captured when an electronic stamp is used to apply the seal to a certificate.

Section 14

Requires the Agriculture and Forestry Awareness Study Commission to collect information on communication lines that fall below the minimum height requirement and create a public safety hazard, especially to agricultural operations. Requires seeking input from specified entities, including the Office of Broadband Infrastructure. Requires a report before the convening of the 2026 Regular Session of the General Assembly.

Section 15

Amends GS 113-187 to set out the following violations by a person operating a shellfish aquaculture operation: (1) for an improperly marked shellfish lease area, a first offense is punishable by a warning ticket, a second offense within one month of the issuance of a warning ticket is punishable as an infraction, and a third offense within one month of the issuance of a warning ticket is a Class 3 misdemeanor; (2) for operating under an expired aquaculture operation permit, if the violation occurs within one month of the permit expiring, the violation is punishable by issuance of a warning ticket; and (3) for operating under an expired shellfish lease agreement, if the violation occurs within one month of the agreement’s expiration, the violation is punishable by issuance of a warning ticket. Applies to offenses committed on or after December 1, 2025.

Section 15.5

Requires the North Carolina Collaboratory (Collaboratory) to study shellfish aquaculture regulations to ensure a balanced approach between economic development, environmental protection, and public access to coastal waters. Sets out nine issues that must be evaluated, including economic impact of shellfish aquaculture expansion on coastal economies and tourism, environmental considerations, and the rule of local governments in shellfish aquaculture leases located in or adjacent to their jurisdictions. Requires the Collaboratory to consult with the Division of Marine Fisheries, Marine Fisheries Commission, and other stakeholders, including shellfish growers, commercial and recreational fishermen, property owners, and coastal area local governments. Requires an interim report to the specified NCGA committee by December 1, 2025, and a final report by May 1, 2026.

Section 16

Amends GS 14-78 by amending the punishment for larceny of ungathered crops by adding a fine of at least $250 for a first offense, which is also a Class H felony, and by making second or subsequent offenses a Class G felony, including a fine of at least $500. Applies to offenses committed on or after December 1, 2025.

Section 18

Amends GS 106-581.1 by adding under the terms agriculture, agricultural, and farming, referred to in Article 52, governing agricultural development, of GS Chapter 106, the production, processing, storage, use, and sale of compost for agricultural, residential, or commercial purposes by a permitted Small or Large Type 1, Type 2, or Type 3 composting facility as defined in rules adopted by the EMC. Defines compost to mean a product made from organic plant, animal, or food waste and created through controlled aerobic, biological decomposition of biodegradable materials that, when subject to mesophilic and thermophilic temperatures, stabilizes the carbon content, reduces the viability of pathogens and vector attraction, and when added to soils is beneficial to plant growth.

Section 19

Effective January 1, 2026, and applying to referenda conducted on or after that date, increases the maximum amount that may be assessed on propane sold in the State under GS 119-63.4 from $.002 to $.003. Further increases the number of votes needed for the referendum to become effective to 75% of dealers and distributors voting in favor of the increase (was, 50%). Broadens the permitted uses of the assessments by the North Carolina Propane Education & Research Foundation to include workforce development. 

Section 20

Amends Section 5.1 of SL 2024-44, which concerns the development of rules that establish methods and permitting requirements for the discharge of treated domestic wastewaters with low risk following site-specific criteria to surface waters of the State, including wetlands, perennial streams, and unnamed tributaries of named and classified streams and intermittent streams or drainage courses where the 7Q10 flow or 30Q2 flow of the receiving water is estimated to be low or zero flow, or under certain conditions non-existent, by adding that, effective retroactively to July 8, 2024, the temporary and permanent rules adopted under that section are not subject to GS 150B-21.3(b1) and (b2) (concerning objections to the rule and delayed effective dates).

Section 20.1-20.4

Directs the Residential Code Council (Council) to amend the Residential Code (Code) in order to permit dimension lumber that has not been grade-stamped under the authority of a lumber grading bureau to be used in the construction of one-and two-family dwellings, so long as these criteria are met: (1) the lumber is sold directly by the sawmill owner or employee to the dwelling owner or owner's authorized representative; (2) the dimension lumber meets or exceeds all other Code requirements; (3) the sawmill operator has a certificate from a state-approved lumber grading training program certifying that the lumber conforms with product and inspection standards under American Softwood Lumber Standard PS20 and marks the lumber as required; (4) that the appropriate code enforcement official reviews the dwelling's framing to ensure it meets all other requirements, with immunity from civil and professional liability for structural failure resulting from the use of dimension lumber; and (5) the sawmill gives the purchaser a certificate that contains the specified information.

Also requires the Council to amend the Code and the North Carolina Building Code in order to permit dimension lumber that has not been grade-stamped under the authority of a lumber grading bureau to be used in the construction of one- and two-family dwellings and structures classified as Residential Group R-2 or R-3, when that use meets the same five requirements specified above, except allows the lumber to be sold directly by the owner or employee of a small mill or a mobile sawmill and makes conforming references to such a facility.

Requires the Council to issue temporary implementing rules no later than 180 days after the statute's effective date. Sunsets these provisions when the Council issues permanent rules substantially similar to the act's provisions and notifies the Codifier of Statutes. 

Effective when the act becomes law and expires on the date the permanent rules that are substantially similar to the above have been issued.

Enacts new GS 143-138.2 requiring the NC Cooperative Extension Service to establish a basic lumber grading training program for individuals and establish the general requirements for successful completion of the program, including requirements for initial certification and for recertification. Requires the training to be offered at least annually. Requires the Extension Forestry staff, in cooperation with the staff of the North Carolina Forest Service, to develop and establish the content of the training program, determine the certification requirements for instructors, and determine the criteria for determining successful completion of the training program. Requires instructors to be approved by the North Carolina Cooperative Extension Service. Allows the North Carolina Cooperative Extension Service to allow one or more private lumber grading training programs, provided that the content of the private programs and certification requirements for instructors and criteria for successful completion of the training program are at least as stringent as the program offered by the North Carolina Cooperative Extension Service. Requires an individual holding an initial certification from the program established under this statute, from a private program, or from a state-approved lumber grading program in another state who mills lumber in the State to be recertified under the training program every five years. Requires certified individuals to register with the North Carolina Forest Service before selling lumber that has not been grade-stamped under the authority of a lumber grading bureau directly to the owner of a structure for use in construction of the structure.

Requires the basic lumber grading training program to be established no later than 180 days after the statute becomes law.

Amends GS 160D-1110 by setting out information that a building permit applicant for a structure constructed with lumber that has not been grade-stamped under the authority of a lumber grading bureau must include with the application. Effective on the date the temporary rules required to be adopted by the Residential Code Council and Building Code council become effective.

Section 20.5

Amends GS 130A-343 (approval of on-site subsurface wastewater systems), which authorizes certain wastewater subsurface dispersal products for use in traffic-related areas if a licensed professional engineer certifies that the product has been designed with a compatible load rating and the product manufacturer has approved the product for use in traffic-rated areas. Requires wastewater permits issued under this provision to be issued by a licensed professional engineer or by an authorized on-site wastewater evaluator. Excludes Department of Transportation rated areas from “traffic related areas” but does include driveways and private parking areas with impervious or pervious pavement areas.

Section 20.6

Adds a pre-hearing requirement to GS 160A-58.2 (public hearings held pursuant to a petition for municipal annexation) for counties with a population of 150,000 residents or more as of the most recent census, as follows. Requires the city council to direct the city planning department to consult with the planning department of the county that has jurisdiction over the area proposed to be annexed to determine whether zoning the area for residential use will increase the number of students attending public school in the county to more than 100% of the county's current capacity if the area meets all of the following: (1) is agricultural land, forestland, or horticultural land, or has been enrolled in present use value taxation within the previous three years; (2) is not contiguous to the city's primary corporate limits; and (3) is not within the city's extraterritorial planning jurisdiction.  If that is the case, then requires county approval before the city may annex the area. If the county with jurisdiction over the area does not approve the annexation, then the city cannot proceed with the annexation unless it is willing to pay the county the amount necessary to come back into compliance with school capacity. Applies to petitions for annexation received on or after July 1, 2025.  

Part II.

Includes a severability clause.