Bill Summary for S 257 (2025-2026)

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Summary date: 

May 21 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 257 (Public) Filed Monday, March 10, 2025
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE AGENCIES, DEPARTMENTS, AND INSTITUTIONS.
Intro. by Jackson, Hise, Lee.

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Bill summary

House amendments to the 5th edition makes the following changes.

Part V. General Provisions

Section 5.20 Zoning Regulations/University Property

Amendment #23 adds Watauga County to the counties exempt from GS Chapter 160D under GS 160D-913 (public buildings).

Section 5.24. Personal Privacy Protection

Amendment #23 enacts Article 18, the Personal Privacy Protection Act (Act), to GS Chapter 55A, to prohibit public agencies from collecting, disclosing, or releasing personal information about members, volunteers, and financial and nonfinancial donors to 501(c) nonprofit organizations, except as permitted by State or federal law or regulation, as follows. Defines nonprofit organization, person, personal information, and public agency. Prohibits a public agency from doing any of the following except as otherwise provided: (1) requiring a person or nonprofit organization to provide it with personal information or otherwise compel the release of personal information, (2) release, publicize, or otherwise publicly disclose personal information in its possession, or (3) request or require a current or prospective contractor or grantee to provide a list of nonprofit organizations they have provided financial or nonfinancial support. Declares that personal information is not a public record under GS Chapter 132.

Provides list of nine exemptions in GS 55A-18-05 clarifying when collection, disclosure, or release of personal information is allowed. This includes reports or disclosures required by State law, lawful warrant for personal information issued by a court, a lawful request for discovery in litigation if provided conditions are met, admission of the information as relevant evidence in court with provided limitation, a public agency's release of information voluntarily released by the person or nonprofit organization it relates to, collection of information disclosing the identity of certain people in a nonprofit organization in reports or disclosures required by statute to be filed with the Secretary of State, disclosure derived from a donation to a nonprofit affiliated with a public agency and required by statute if there was no previous request for anonymity by the person.

Allegations of a violation of this act may be brought in a civil action for injunctive relief, damages, or both. Sets parameters for damages to be awarded. Allows a court to award all or part of litigation costs including attorneys’ fees and witness fees to the complainant. Makes it a Class 2 misdemeanor to knowingly violate the Act.

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

Section 5.25. Citizens Support Act

Amendment #23 requires the described State agencies to do the following.

Requires the Department of Health and Human Services (DHHS) to take all steps necessary to cease providing State-funded benefits to noncitizens residing in the United States without legal permission, to the extent permitted by federal law. Tasks DHHS with developing and implementing a plan to review and update the eligibility criteria for all State-funded benefits to ensure that noncitizens determined to be residing in the United States without legal permission are ineligible to receive State-funded benefits, including developing a method for verifying the immigration status of applicants. By January 15, 2026, requires DHHS to submit a report to the specified NCGA committee and division on the steps taken to implement the above and related information. Defines state-funded benefits to include 15 listed programs administered by DHHS or through a contract with DHHS, but excludes any benefits or services available under these programs to help eligible beneficiaries access food or meals.

Requires the Department of Commerce (DOC), the House Finance Agency, and all local housing authorities (collectively, “the housing agencies”) to take all steps necessary to cease providing publicly funded housing benefits to noncitizens residing in the United States without legal permission, to the extent permitted by federal law. Tasks the housing agencies with developing and implementing a plan to review and update the eligibility criteria for all publicly funded housing benefits to ensure that noncitizens determined to be residing in the United States without legal permission are ineligible to receive State-funded benefits, including developing a method for verifying the immigration status of applicants. By January 15, 2026, requires the housing agencies to submit a report to the specified NCGA committee and division on the steps taken to implement the above and plan development. Defines publicly funded housing benefits to include 13 listed programs administered by any of the housing agencies or through a contract with any of the housing agencies.

Requires the governing bodies of the UNC System and the NC Community College System to adopt and implement a policy to the extent allowed by federal law, to verify that all applicants for enrollment are legally authorized to reside in the United States for purposes of determining eligibility for in-State tuition and financial aid by January 15, 2026.

Requires the DOC’s Division of Employment Security to adopt and implement a policy to verify, for unemployment benefits purposes, that all applicants are legally authorized to reside in the United States prior to the first payment of benefits, to the extent permitted by federal law and notwithstanding any provision of State law, by January 15, 2026.

Part VII. Public Instruction

Section 7.38. CTE Modernization

Amendment #23 increases the funds appropriated to DPI by $500,000 in nonrecurring funds for 2025-26 to increase the funds available for CTE modernization and expansion. Reduces the amount appropriated to the Workers’ Compensation Reserve (WRC) by $500,000 for 2025-26. Makes conforming, organizational changes.

Section 7.65. IDS for Students with IEP’s

Amendment #23 requires each local education agency to include in a transition plan for an IEP student under GS 115C-107.6, a plan for guiding and assisting the student in obtaining a NC identification card issued by the DMV.  So long as the student’s parent or guardian consents, requires DHHS’s Division of Employment and Independence for People with Disabilities to be a part of the IEP team developing the transition plan.

Section 7.66. School Planning Section Data Sharing Platform

Amendment #23 adds the following.

Increases the funds appropriated to DPI for 2025-26 by $500,000 to be allocated to the School Planning Section to contract with a third-party entity to maintain a digital platform to facilitate data sharing among local school administrative units and county governments, as described. Reduces the amount appropriated to the WRC by $500,000 for 2025-26.

Section 7.67. Expand K-6 License to Include Grades 7 and 8

Amendment #23 requires the State Board of Education (SBE) to adopt rules expanding elementary licenses as described in the section title.

Part VII-A. Compensation of Public School Employees

Section 7A.1B. Publicize Minimum Salary Schedule for Occupational Therapists and Physical Therapists

Amendment #10 adds a new section amending GS 115C-316 by adding a requirement that local boards of education report annually by October 15 on the salary schedule for occupation therapists and physical therapists to the Department of Public Instruction, which must collect the schedules and report them to the specified NCGA committee by December 15. 

Part VIII. UNC System

Section 8.7A Prior Teaching Fellows Program Revisions Apply Retroactively to Certain Teaching Fellows

Amendment #23 adds the following. Changes the applicability of Section 8A.4 of SL 2023-134, which amended the North Carolina Teaching Fellows Program (Program) by making changes that included expanding the qualifying licensure area to include elementary education, expanded the number of participating institutions, and increased the loan amounts, so that it applies to all students enrolled in an approved educator preparation at an institution of higher education participating in the Program and receiving a forgivable loan under the Program in the 2024-25 academic year and thereafter. Amends the effective date under Section 2.14(b) of SL 2024-1, which further amended the Program’s definition of a qualifying teacher to include one serving as a teacher in a qualifying licensure area, so that it applies beginning in the 2024-25 academic year to all students enrolled in an approved educator preparation at an institution of higher education participating in the Program and receiving a forgivable loan under the Program in the 2024-25 academic year and thereafter.

Section 8.28. UNC Funding Reduction

Amendment #23 further decreases the funds appropriated to the UNC Board of Governors by the act by $1 million for each year of the 2025-27 fiscal biennium.

Section 8.36. Retain NC Talent Scholarship Fund

Amendment #23 increases the funds appropriated to the UNC Board of Governors for each year of the 2025-27 biennium by $1 million from the additional reduction enacted by Section 8.28 of the act to be allocated to East Carolina University to create endowed merit scholarships that will be matched with private funds. 

Part IX-A. Aging

Section 9A.2 ALS Grant Modification

Amendment #23 adds the following. Changes the recipient of the $300,000 directed grant for both years of the 2025-27 biennium from the ALS Association North Carolina Chapter to ALS United North Carolina, Inc.

Part IX-G. Mental Health/Developmental Disabilities/Substance Use Services

Section 9G.6 Use of Opioid Settlement Funds

Amendment #23 increases the amount transferred from the Opioid Abatement Reserve to the Opioid Abatement Fund for 2025-26 from $31,350,000 to $32,350,000.

Part XIV. Natural and Cultural Resources

Section 14.1A NC Arts Council Membership and Appointment Changes

Amendment #38 amends Section 14.1A(a) as follows. Increases the membership of the NC Arts Council (Council) under GS 143B-88 back to 24 members (was, nine in the previous edition and 24 under current law) to be appointed as follows: (1) 12 members by the Governor based upon the listed qualifications, for three-year terms; and (2) 12 members by the General Assembly to serve three year terms, with six upon recommendation of the Speaker of the House of Representative and six upon recommendation of the President Pro Tempore of the Senate (was, the Governor appointed three members and the General Assembly appointed six members, three upon recommendation of the Speaker of the House of Representative and three upon recommendation of the President Pro Tempore of the Senate). Change the amount of appointments that the Governor and General Assembly members may make to the Council to replace the sixteen members half of whom whose terms expire on June 30, 2026, and the other half whose terms expire on June 30, 2027. For the eight members whose terms expire on June 30, 2026, directs the Governor to appoint four successors and the General Assembly to appoint the other four (two upon recommendation of the Speaker of the House of Representative and two upon recommendation of the President Pro Tempore of the Senate). Provides for the same division of appointments for the members whose terms expire on June 30, 2027. (Was, Governor appointed one successor and the General Assembly appointed two successor).

Part XX. State Bureau of Investigation

Section 20.10 Funding for Fentanyl Control Unit and Sexual Assault Cold Case Team

Amendment #23 adds the following.

Reduces the recurring funds appropriated in the act to the Workers' Compensation Settlement Reserve beginning in the 2025-26 fiscal year by $1,213,115 and the nonrecurring funds for the 2025-26 fiscal year by $389,541. Increases the funds appropriated in this act to the State Bureau of Investigation by (1) $1,213,115 in recurring funds beginning in the 2025-26 fiscal year and (2) $389,541 in nonrecurring funds for the 2025-26 fiscal year, to be used in the specified amounts to hire four drug agents and three financial crimes investigators, and to start a permanent sexual assault cold case unit, including the hiring of full-time employees.

Part XXXV. Military and Veterans Affairs

Section 35.2 Statutory Changes

Amendment #23 amends GS 143B-1311 by reinstating the provision allowing meeting of the North Carolina Military Affairs Commission to be called by the Secretary of the Department of Military and Veterans Affair, in addition to the Commission’s chair.

Part XXXVIII. Treasurer

Section 38.8 Support Firefighters Fighting Cancer

Amendment #23 adds the following.

Expands the definition of killed in the line of duty under GS 143-166.2, as it applies under the Public Safety Employees’ Death Benefits Act, to also include a presumption that a firefighter was killed in the line of duty when their death occurs as a direct and proximate result of cancer of the stomach (gastric cancer). Effective July 1, 2025, or when the section becomes law, whichever is later, and applies to qualifying deaths occurring on or after that date.

Increases the funds appropriated to the Department of State Treasurer for each year of the 2025-27 fiscal biennium by $500,000 in recurring funds to be used for the implementation of this section. Reduces the funds appropriated to the Department of Revenue for returns payment and processing in Budget Code 14700 for each year of the 2025-27 fiscal biennium by $500,000 in recurring funds.

Part XL. Information Technology

Section 40.8 Preventing Identity Fraud and Abuse

Amendment #23 adds the following.

Requires State agencies to ensure that all State benefits and entitlement programs responsible for the distribution of funds to individuals implement and use authentication and identity-proofing systems before the disbursement of funds. Requires these systems, to the greatest extent feasible, to comply with National Institute of Standards and Technology (NIST) Authenticator Assurance Level 2 and Identity Assurance Level 2 requirements.

Part XLII. Capital

Section 42.2 Six-Year Intended Project Allocation Schedule

Amendment #23 amends the list of scheduled capital projects by changing the needed amounts and schedule for UNC/ECU21-1.

Section 42.4 Various Capital Changes

Amendment #23 adds the following. Requires that $60 million in nonrecurring funds for 2025-26 and $60 million in nonrecurring funds for 2026-27 from funds available in the State Capital and Infrastructure Fund, be allocated for project code 24 UNC/ECU21-1.

Part XLIII. Transportation

Section 43.26 Use of Funds for Tolling Capital Boulevard in Wake County Prohibited

Amendment #43 adds a section prohibiting the Department of Transportation and Turnpike Authority from using State funds for the study, design, construction, operation, or implementation of tolling on the portion of US1/Capital Boulevard located in Wake County.