House committee substitute to the 3rd edition makes the following changes.

Removes the following provisions: (1) changes to GS 90-624 (activities not requiring a license to practice Massage and Bodywork Therapy) to include a nationally certified reflexologist engaged in the practice of reflexology who has a current certification from the American Reflexology Certification Board (ARCB) or its successor entity, or an individual who is a reflexology student working to obtain certification from the ARCB or its successor entity under the supervision of an ARCB-certified reflexologist who obtains certification within 12 months of beginning the certification process; (2) new GS 160D-103.1, limiting local government’s authority to adopt requirements for water and sewer infrastructure more stringent than state law unless the requirements are approved by the Environmental Management Commission (EMC) and the requirements are then adopted by ordinance as provided in the statute; (3) new GS 136-17.2B, authorizing the Board of Transportation (BOT) to set reasonable fees for fifteen listed services provided by Department of Transportation (DOT) upon public hearing before any fee is set, along with changes to GS 136-18.02, GS 136-93.1, and GS 150B-1(d). Makes organizational changes to account for the deleted content and new content.

Section 2

Amends GS 115C-407.57 to require physical therapists who might clear a student with concussion symptoms to return to play to be specifically trained in concussion protocols and managements.

Section 6.

Makes technical changes to provisions authorizing the North Carolina Board of Examiners for Speech and Language Pathologists and Audiologists to adopt rules to implement new GS 90-308.

Section 8.

Makes technical changes to provisions allowing a broker acting as an agent in a real estate transaction to use a preprinted offer or sales contract form containing provisions on the payment of a commission or compensation, including the forfeiture of earnest money, to a broker or firm, and directing the Real Estate Commission to amend 21 NCAC 58A.0112 consistent with the provisions of the section.

Section 28 (was, Section 18).

Now requires, in GS 150B-23, that the Office of Administrative Hearings (OAH) provide the parties to a contested case a written notice the location and week during which the hearing is expected to occur not less than 45 days prior to the initial scheduled hearing date. Also requires OAH to issue a notice of hearing not less than fifteen days prior to the hearing date.

Adds the following new content.

Section 1.

Defines supervised in GS 90-622 (definitions pertaining to massage and bodywork therapy practice) to mean oversight provided by an instructor who is available either in person or virtually through real-time synchronous learning. Makes conforming change to supervisory requirements in GS 90-629 (requirements for licensure).

Section 9.

Requires the EMC to implement the “Falls Lake New Development Rule” (15A NCAC 02B .0277) so that, except as required pursuant to federal law or permit, no stormwater permit, management plan, or post-construction stormwater controls is required under the Falls Lake New Development Rule or local ordinances adopted thereunder for single family and duplex residential and recreational development that cumulatively disturb less than 1 acre, which is not part of a larger common plan of development. Prohibits local governments from establishing more restrictive requirements than the Falls Lake Development Rule. Requires the EMC to adopt rules consistent with these provisions. Applies the APA’s effective date provisions triggered when 10 or more written objections are received to the rule (GS 150B-21.3). Sunsets the above rule when permanent rules become effective.

Section 14.

Excludes activities undertaken at any time on the mine property for the production and harvesting of timber and timber products and conducted in accordance with standards defined by the Forest Practice Guidelines Related to Water Quality, as adopted by the Department of Agriculture and Consumer Services (DACS) from the definition of mining under GS 74-49 (definitions under the Mining Act of 1971). Removes 60-day deadline for Department of Environmental Quality (DEQ) to decide on a permit under GS 74-51. Instead, requires DEQ to act on a permit application as quickly as possible by following the specified process within the required timeline. Amends to GS 74-50 (permits) by prohibiting DEQ from extending or altering public comment periods and time frames for conducting public hearings. Now requires requests for public hearing to be made within 30 days of receipt (was, of issuances of the notice of opportunity to submit comments and request a public hearing). Prevents DEQ from denying a permit (as specified) based solely on the failure of an applicant to obtain another permit, authorization, or certification required for the same project, excluding denial of the permit, authorization, or certification by DEQ based on the standards for approval of the permit, authorization, or certification based on the approval standards by law. Applies to permit applications filed on or after October 1, 2025.

Section 17.

Enacts GS 160A-205.8 preventing a city from adopting or enforcing an ordinance that prohibits or restricts, or has the effect of prohibiting or restricting, a property owner from displaying a flag of the United States of America or the State of North Carolina, including prohibiting or restricting the size of the flag or the height of any associated flagpole, on the property owner's property. Allows cities to adopt ordinances that reasonably regulate the manner and placement of the display of those flags to protect public health and safety. Requires for a written evaluation before those regulations are applied to a particular property, including a site-study by DOT if the city asserts traffic-based justifications as its reason. Effective when the section becomes law, and any citation, fine, penalty, action, proceeding, or litigation pending on that date which has resulted from application of an ordinance contrary to the provisions of GS 160A-205.8 are abated.

Section 18-23.

Repeals Nash County’s (County) authority to impose an additional 2% room occupancy tax for the City of Rocky Mount under Section 1 of SL 1987-32 as amended, so that the County’s authority decreases from a maximum 5% occupancy tax to a 3% maximum. Allows the tax to be levied on gross receipts from the rental of an accommodation within the county. Modifies the definition of the term tourism-related expenditures. Makes conforming changes. Specifies at least one-half of the Nash County Tourism Development Authority (NCTDA) must be individuals who are currently active in the promotion of travel and tourism in the County (previously, required one less than one-half of the members have such experience if there was an odd number of members on the NCTDA). Specifies that no elected official can serve as a member of the NCTDA. Removes provisions allowing the NCTDA to convene upon written request of one-third of its members. Narrows the NCTDA’s duties to expending net tax proceeds to the City of Rocky Mount, as described. Effective July 1, 2025, and applies to gross receipts derived from the rental of an accommodation that a person occupies or has the right to occupy on or after that date. Instructs that the reduction of the room occupancy tax under the act does not affect a liability for a tax that was attached before the effective date of the reduction, nor does it affect a right to a refund of a tax that accrued before the effective date of the reduction.

Creates the Rocky Mount District R (District R) taxing district, consisting of the part of Rocky Mount located within Nash County. Makes the Rocky Mount City Council the ex officio governing body of the district with the officers of the City serving as the officers of the governing body of the district. Allows the governing body of the District R to impose a room occupancy tax up to 3% of the gross receipts derived from the rental of an accommodation within the district that is subject to the described State sales tax. Clarifies that the occupancy tax is in addition to State or local sales tax. Provides that the tax must be levied, administered, collected, and repealed as provided in GS 160A-215 (uniform provisions for room occupancy taxes). Requires the District R Tourism Development Authority (TDA) to use at least two-thirds of the occupancy tax proceeds to promote travel and tourism and the remainder for tourism–related expenditures. Mandates that at least one-third of the members of the TDA must be affiliated with businesses that collect the tax in the district and at least one-half must be currently active in the district’s travel and tourism promotion. Makes conforming changes to GS 160A-215(g) (city occupancy taxes). 

Instructs the County to remit the net proceeds of the 2% occupancy tax that has been collected but not yet remitted to the TDA as soon as practicable after the repeal of the 2% room occupancy tax and the creation of the TDA. Directs for any unexpended net proceeds of the 2% room occupancy tax held by the City of Rocky Mount as of July 1, 2025, to be remitted to the TDA upon its creation to be used for the same purposes as authorized for the City of Rocky Mount under the specified statutes.

Makes organizational and technical changes.

Section 24.

Enacts Article 10, consisting of new GS 99E-90, concerning Racing Facility and Racetrack Nuisance Immunity, to GS Chapter 99E. Protects a racing facility (a designated area where competitive vehicle and motorsport races are conducted, including the track, spectator areas, garages, and any associated grounds, buildings, or appurtenances used to operate the races) from being subject to any action brought by a surrounding property owner under any nuisance or taking cause of action if the developer of the racing facility obtained all permits required for construction of the racing facility and established a vested right in the development of the property or contiguous group of properties where the racing facility is located before the surrounding property owner either purchased the real property or constructed any building in the area of the racing facility. Defines area of the racing facility. Applies to actions commenced on or after the section becomes law.

Section 26.

Allows costs to be imposed against either party, or both, in (1) actions for trespass upon real property and (2) in actions against any professional land surveyor or any person acting under the surveyor's supervision and control for physical damage or economic or monetary loss due to negligence or deficiency in performance of surveying or platting under GS 6-21.

Section 27.

Sets forth the following punishments for persons who operate a shellfish aquaculture operation who commit the following violations in GS 113-187:

• For an improperly marked shellfish area, a warning ticket for the first offense, for a second offense within one month of the first issuance of a warning ticket punishable as an infraction, and for third offenses issued within one month of the warning ticket, a Class 3 misdemeanor.
• For operating under an expired aquaculture operation permit, if the violation occurs within one month of the expiration of the permit, a warning ticket.
• For operating under an expired shellfish lease agreement, if the violation occurs within one month of the expiration of the agreement, a warning ticket.

Applies to offenses committed on or after December 1, 2025.