Creates new GS 143-300.1B, which holds nongovernmental organizations (NGOs) that contract with the Department of Health and Human Services (DHHS) (including any affiliated county or local agency) to provide health and welfare services liable for injury or damage caused by the negligence of the NGOs, but makes the NGOs not liable for any injury or damage caused by DHHS, including employees, volunteers, and agents of DHHS acting within the scope of their employment or authority. Makes the NGO and DHHS each responsible for bearing their own costs for defending any litigation related to their own acts or omissions. Specifies that this section may not be waived by contract provisions or suspended by any court, and makes any provisions imposing liability on an NGO for DHHS’s negligence unenforceable and void. Clarifies that this statute does not affect the immunity available to either party under state or federal law.

Adds new GS 143-300.1C, which outlines the liability in tort for nongovernmental independent contractors providing health and welfare services to DHHS under contract. Makes such independent contractors the functional equivalent of DHHS while performing health and welfare services in the scope of a contract, and makes the contractor subject to the same monetary limits provided in GS 143-299.2. Requires any action against the contractor to be filed with a court of competent jurisdiction and not the Industrial Commission. Provides that the state will indemnify the contractor for any action alleging death or injury as a result of the contractor’s act or omission while performing services within the scope of the contract above the monetary limits in GS 143-299.2. Sets up a claim procedure with the Industrial Commission for indemnification compensation.

Effective and applicable to claims arising and contracts entered into or renewed on or after October 1, 2025.