House committee substitute 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

Repeals GS 113-170.3(d) (which required reporting the recreation harvest of Red Drum, Flounder, Spotted Seatrout, Striped Bass, and Weakfish), (e) (which required a commercial fishing license engaged in a commercial fishing operation who harvests any fish in coastal or joint fishing waters to report that harvest), (f) (which set out punishments for violations of these reporting requirements), and (g) (which required the Department of Environmental Quality and the Wildlife Resources Commission to report on the implementation and response to the fishery reporting requirements). Changes the catchline of GS 113-170.3 by removing reference to mandatory reporting for certain fisheries.

Section 2

Amend SL 2025-74 by extending the deadline for the North Carolina Collaboratory’s study on the statutory process for approving surface water transfers so that the report is now due to the 2028 General Assembly (was, 2027), by January 15, 2028. Also extends the moratorium on issuing certificates allowing a significant new surface water transfer or a significant increase in an existing surface water transfer so that it ends August 1, 2028, instead of March 1, 2027. Makes a clarifying change.

Section 3

Amends GS 103-6 to change Arbor Week from the week containing March 15 to the week containing November 15.

Section 4

Amends GS 14-151(a)(4), which makes it illegal to willfully, with intent to injure or defraud, to turn on or off, make any connection or reconnections, or enlarge the orifice of mixers, or to interfere with the valves, stopcocks, wires, or other appliances of gas, electric, and water without permission, by adding that water pipes means water pipes, fire hydrants, flushing assemblies, blow-offs, sampling stations, and all other appurtenances connected to a water distribution system, whether above or below ground. Also amends (e) to make a person found in a civil action to have violated (a)(4) by the connection or reconnection with any water pipe to be liable to the water supplier an amount that is the greater of triple the amount of loss and damages or $10,000, plus attorneys’ fees. Applies to offenses committed on or after December 1, 2026.

Section 5

Amend GS 119-58 by limiting the application of the requirements for identifying liquified petroleum gas supply tanks or containers to those that have a total capacity greater than five gallons. Expands upon the identifying information that must be provided to also include the address and contact information of the person supplying liquified petroleum gas to the system, as well as the name of the tank or container owner. Expands upon the actions that must be taken by a new supplier requested by a consumer to also include performing a leak test. Allows a person other than the supplier or the owner of the system to fill or refill a properly inspected and certified system with liquefied petroleum gas when a qualifying emergency is in effect if the six listed condition are met, including: (1) the consumer demonstrates that they have less than a 20% supply reaming for use as the primary energy for eating or cooking; (2) the consumer makes a good faith effort to procure delivery of liquefied petroleum gas from the current supplier or owner; (3) the current supplier or owner is unable to make a scheduled fill or refill within three business days of the good faith procurement effort; and (4) the emergency supplier provides no more than 20% of the capacity of the tank or container in liquified petroleum gas as part of the emergency refill. Makes conforming changes.

Amends GS 119-54 by defining emergency supplier as a Class A dealer that provides liquified petroleum gas to a consumer during a qualified emergency. Defines a qualified emergency as: (1) a state of emergency as declared by the Governor, NCGA, or governing body of a municipality or county, (2) a state of emergency declared by the President, (3) when severe weather or similar circumstances exist that may result in a person being place in imminent danger of death or injury due to lack of heat caused by a lack of liquified petroleum gas, or (4) when a wavier from deliver limitation affecting the delivery of liquified petroleum gas has been lawfully ordered.

Amends GS 119-59 to make violations of GS 119-58(b) concerning labeling requirements, prohibiting a person other than the supplier or system owner from disconnecting, interrupting or filling the system without the supplier’s consent, and requiring new suppliers who are requested by the consumer to take specified actions, a Class A1 misdemeanor (was, Class 1 misdemeanor). Also allows accessing a civil penalty for these violations of up to $1,000 for a first violation, up to $2,000 for a second violation, and up to $3,000 for a third or subsequent violation.

Amends GS 119-60 to exempt a person acting as an emergency supplier from liability for any civil damages resulting from any act of commission or omission on his part in the course of rendering assistance unless the acts or omissions amount to willful or wanton negligence or intentional wrongdoing.

Requires that the Department of Agriculture and Consumer Services (DACS) only issue warnings for the failure of a supplier under GS 119-58(b) to either attach a tag, label, or other marking to a tank or container that includes the address and contact information for the person supplying the gas to the system and that identifies whether it is owned by the supplier, or to conduct a leak test. Expires December 1, 2027.

Applies to offenses committed on or after December 1, 2026.

Section 6

Amends GS 143-215.94V by adding that for noncommercial petroleum underground storage tanks where the Environmental Management Commission (EMC) has received to the information necessary to determine the degree of risk to human health and the environment that is posed by a discharge or release from a petroleum underground storage and to identify the most cost‑effective cleanup that addresses imminent threats to human health and the environment, the EMC, must within five years of receiving that information, (1) determine the level of risk of the discharge, and cleanup or other measures to be required, and (2) notify the owner, operator, or landowner of that determination. Provides that in order for a discharge to be determined to be low-risk from a noncommercial tan, if the EMC does not notify the owner, operator, or landowner in the required time, then the EMC is prohibited from requiring cleanup, further cleanup, or further action unless the EMC later determines that the release or discharge poses an unacceptable level of risk or a potentially unacceptable level of risk to human health or environment, in which case the EMC must produce written findings of fact.

Applies to discharges occurring before, on, or after the date that act becomes law as follows: (1) for discharges from noncommercial tanks occurring five or more years prior to the effective date of this act for which the EMC has not previously notified an owner, operator, or landowner of its determination as to the level of risk of the discharge, and actions required in response to the discharge, the EMC has one year from the effective date of this act to notify the owner, operator, or landowner accordingly; and (2) for all other discharges occurring before the effective date of this act for which the EMC has not previously notified an owner, operator, or landowner of its determination as to the level of risk of the discharge, and actions required in response to the discharge, the EMC has five years from the effective date of this act to notify the owner, operator, or landowner accordingly.

Part II.

Section 7

Moves GS 115C-174.22 from Part 4 of Article 10A of GS Chapter 115C into Part 5. Also amends Part 5 by adding new GS 115C-174.23 which requires the State Board of Education (State Board), to the extent funds are made available, to use a competitive bid process to adopt one nationally norm-reference college admissions text and to make the test available to public school units to administer to all students in the 11th grade unless the student has completed a comparable test and scored at or above the set level. Requires administering an alternate to the nationally norm-referenced college admissions test or an alterative precursor test to the nationally norm-referenced college admissions test to a student who meets the specified criteria concerning specified delays and course of study that may not lead to college admission. Allows students to complete any surveys included as part of administering the test; requires giving notice of the collecting of information in the surveys to parents and allows parents to opt their student out of a survey. Requires the State Board to ensure that parents have the necessary information to make informed decisions on the test, precursor test, and any associated surveys. Requires the State Board to include alternate assessment and nationally norm-referenced college admissions test assessment results for students with disabilities in public school unit accountability reports. Makes conforming and organizational changes to GS 115C-76.65, conforming changes to GS 115C-174.11 (which previously required the State Board to use a competitive bid process to adopt one nationally norm-referenced college admissions test), and GS 115C-174.22.

Repeals Part 4 of Article 10A of GS Chapter 115C, Student Diagnostic Tests, which previously consisted of only GS 115C-174.22, which is now in Part 5.

Applies to administrations of the nationally norm-referenced college admissions test under GS 115C-174.23, beginning with the 2026-27 school year.

Section 8

Amends GS 115C-595 to allow using scholarship funds from the State Education Assistance Authority (Authority) that have been deposited into a personal education student account for a student with disabilities enrolled in a Part 1 (Private Church Schools and Schools of Religious Charter) or 2 (Qualified Nonpublic Schools) nonpublic school to be used for education-related support services provided by a one-to-one classroom aide (as now defined in GS 115C-591). Sets out documentation requirements and prohibits the one-to-one classroom aide from providing services to other students during the instructional day. The funds cannot be used for services provided by a one-to-one aid who is a parent, guardian, legal custodian, sibling, or grandparent of the student, or who is an employee or independent contractor of the school where the student is enrolled. Applies beginning with the 2026-27 school year.

Section 9

Repeals: (1) Section 7(b) of SL 2017-189, which required that any rules required by the act, which concerned the Educator Preparation Program, be adopted by February 1, 2018; (2) Section 7(f) of SL 2017-189, which prohibited the State Board from assigning an accountability status to any EPP during the specified past school years, only allowed assigning the accountability statuses of "warned" and "probation" during the specified past school years, and allowed assigning the accountability status of "revoked" beginning with the 2023-2024 school year; and (3) Section 4 of SL 2019-149, which required the State Board to adopt the rule required by GS 115C-269.45(c1), and make the required report by October 1, 2019, and required the State Board to apply the rule beginning with data collected from the 2018-2019 academic year for the purposes of the annual report.

Requires the State Board, by October 15, 2026, in consultation with the specified entities, to report to the specified NCGA committee on recommendations for an educator preparation program accountability model.

Part III.

Section 10

Amend GS 160-108.1 to provide that a vested right for a site-specific vesting plan remains vested for five (was, two) years. Allows a local government to provide for rights to be vested for a period exceeding five years (was, two years) but not exceeding eight (was, five) years when warranted in light of all relevant circumstances. Provides that a vested right precludes any land development regulation (was, any zoning action) by a local government that would change, alter, impair, prevent, diminish, or otherwise delay the development or use of the property as set forth in the approved site-specific vesting plan, except in the listed circumstances. Makes conforming changes.

Section 11

Amends GS 136-93 by amending the requirements for a bond for driveway and road encroachment projects to allow a performance guarantee instead of a bond. Specifies that the form of the performance guarantee may consist of a bond, irrevocable letter of credit, parent guaranty, or other instrument that provides equivalent security to a surety bond or irrevocable letter of credit at the election of the applicant.

Section 12

Amends GS 160D-602, applicable to Winston-Salem only, to allow its governing board to delegate or assign, by ordinance, the authority for the rezoning of property to a designated planning board. Requires providing a right of appeal end review before the governing board.

Section 13

Amends GS 160D-703 by adding the requirement that a local government zoning regulation allow siting buildings and structures subject to the NC Residential Code and multifamily housing with more than four dwelling units, in areas zoned for non-agricultural commercial, business, or industrial use. Requires a maximum height restriction of no less than 60 feet.

Section 14

Enacts new GS 160D-917 requiring local governments to allow at least one accessory dwelling that conforms to the North Carolina Residential Code for One- and Two-Family Dwellings for each single-family detached dwelling in areas zoned for residential use that allow for development of single-family detached dwellings. Defines accessory dwelling unit as an attached or detached residential structure that is used in connection with, or that is an accessory to, a primary single-family detached dwelling and that has less total square footage than the primary single-family detached dwelling. Allows the accessory dwelling unit to be built or sited concurrently or after the primary detached dwelling has been constructed or sited. Prohibits a local government from taking six specified actions when permitting accessory dwelling units, including requiring placement in a conditional zoning district, establishing minimum parking requirements or parking restrictions, or setting a maximum unit size of less than 800 square feet. Sets out what a local government can do concerning setbacks, and unit location requirements and size. Specifies that the statute does not apply to: (1) the validity or enforceability of private covenants or other contractual agreements among property owners related to dwelling type restrictions; (2) properties located in a historic preservation district established pursuant to Part 4 of this Article; (3) properties designated as a National Historic Landmark by the US Department of Interior; or (4) an accessory dwelling unit that is not connected to water, well and septic, and sewer. Applies to applications for accessory dwelling unit permits submitted on or after October 1, 2026.

Specifies that a local government that has enacted an ordinance meeting the requirements of this section and GS 160D-917, is not required to adopt a new ordinance.

Requires local governments to adopt development regulations to implement the provisions in this section by July 1, 2027; if they fail to do so, accessory dwelling units will be allowed in that local government without any limitations.

Section 15

Amends GS 150B-34 to require in contested cases before an administrative law judge that the judge apply traditional de novo review to the interpretation of State rules and regulations. Allows the judge to be informed by (was, must give due regard to) the demonstrated knowledge and expertise of the agency with respect to acts and inferences within the specialized knowledge of the agency.

Amends GS 150B-51 by adding that a court conducts its review of a final decision in a contested case may be informed by the agency’s interpretation of its own rules or regulations but must apply traditional de novo review to the interpretation of State rules and regulations.

Section 16

Makes it illegal for a local government to withhold a license, permit, zoning approval, financial incentives, or any other type of assistance from an employer for its refusal to negotiate or sign an agreement with a labor organization except as required by law.

Section 17

Amends GS 160D-912.1, which concerns on-premises advertising, by adding that the statute does not apply to an ordinance regulating on-premises advertising signs that was lawfully adopted by a local government and: (1) included an amortization period of 10 or more years during which nonconforming signs were allowed to remain in place before it was required to be removed or brought into compliance, and (2) the date of compliance under the amortization period expired on or before July 1, 2024.

Part IV.

Section 18

Amends GS 14-415.12 to include courses certified or sponsored by the North Carlina Concealed Carry Association among those that meet the requirements for the firearms safety and training course for the issuance of a concealed handgun permit. Makes conforming changes. Applies to permit applications submitted on or after July 1, 2026.

Section 19

Amends GS 15A-298 as follows. Under current law, the Director of the State Bureau of Investigation (SBI) or their designee may issue an administrative subpoena to a communications common carrier or an electronic communications service provider to compel the production of business records if the records: (1) disclose information concerning local or long distance tool records or subscriber information and (2) are material to an active criminal investigation. Amends the statute to no longer limit the subpoena to when the records disclose information concerning local or long distance toll records or subscriber information. Allows using the subpoena to compel production of business records or other information pertaining to a subscriber or customer of such service, exclusive of the contents of the communications when they are material to an active criminal investigation. Sets out information that must be disclosed to the SBI in response to the subpoena. Authorizes the SBI to disseminate any information it acquires under the subpoena to any federal, State, tribal, or local law enforcement agency in furtherance of a criminal investigation. Prohibits the carrier or service provider from notifying subscribers or customers of the subpoena.

Section 20

Allows municipalities and cities to contract with third-parties for conducting criminal history record checks under GS 153A-94.2 and GS 160A-164.2. Such contracts must terminate on or before the later of December 1, 2026, or when the SBI require for proposal is awarded. Requires the third-party vendors to comply with any restrictions or requirements set by law governing fingerprints and other information collected by the SBI for a criminal record check.

Part V.

Section 21

Includes a severability clause.