Senate committee substitute to the 3rd edition replaces the content of the previous edition with the following. Makes conforming changes to the act’s titles.

Part I.

Section 1.1

Appropriates $2.1 million from the General Fund to the UNC Board of Governors (BOG) in recurring funds for each year of the 2025-2027 fiscal biennium to be allocated to the UNC-Charlotte to expand its data science programs and battery engineering and recycling initiatives.

Part II.

Section 2.1

Appropriates $12,192,124 from the General Fund to the Department of Health and Human Services, Division of Central Management and Support, in recurring funds for each year of the 2025-2027 fiscal biennium for an increase in funding for implementation of the Transitions to Community Living Initiative Plan designed comply with the 2012 US Department of Justice Settlement. Allocates these funds in specified amounts for one full-time Olmstead Associate Director position within the Division of Central Management and Support; and to provide community-based supported housing, tenancy support, supported employment, and wrap-around community-based mental health services to eligible adults with serious mental illnesses as they transition from institutional to community care settings, and to provide project management support for the Transitions to Community Living Initiative.

Section 2.2

Requires the State Controller to transfer from funds available in the Information Technology Reserve to the Department of Health and Human Services, Division of Central Management and Support Special Fund, $15,118,177 for 2025-26 and appropriates these funds, to be allocated and used to fund continued implementation of electronic health records (EHR) at State-operated healthcare facilities.

Requires the State Controller to transfer from funds available in the Department of Health and Human Services, Division of Central Management and Support Special Fund $3,490,148 for 2025-26 to the Department of Health and Human Services Special Fund, and appropriates these funds, to be transferred, allocated and used for the same purpose specified above.

Appropriates $3,019,233 from the General Fund to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services, $3,019,233 in recurring funds for each year of the 2025-27 fiscal biennium for ongoing operations and maintenance of EHR at State-operated healthcare facilities.

Section 2.3

Appropriates $30 million from the General Fund to the Department of Health and Human Services, Division of Health Benefits, in nonrecurring funds and associated receipts for the 2025-2026 fiscal year for continued operations of the Healthy Opportunities Pilots program in current pilot counties.

Section 2.4

Requires the lead State agency designated by the Governor to develop and submit the application for funding under the Rural Health Transformation Program (RHTP) established by the One Big Beautiful Bill Act to collaborate with all relevant state entities to ensure that the RHTP application submitted on behalf of North Carolina includes demonstrated expertise on any combination of rural healthcare access, rural healthcare quality, rural healthcare workforce, or rural healthcare outcomes through system transformation. Require a copy of the application be given to the Chairs of the Joint Legislative Oversight Committee on Health and Human Services a copy submitted on behalf of North Carolina to the federal Centers for Medicare and Medicaid Services on the date of submission. Also requires a report by November 15, 2025, to the Joint Legislative Oversight Committee on Health and Human Services summarizing the rural health transformation vision, plan, goals, strategies, proposed projects, and sustainability plans for North Carolina as described in the State's Rural Health Transformation Program application. Requires that federal funds received by the State under the RHTP to be available for expenditure only upon an act of appropriation by the General Assembly.

Part III.

Section 3.1

Appropriates $10,078,149 in recurring funds from the General Fund to the Department of Natural and Cultural Resources (DNCR) beginning with the 2025-2026 fiscal year and $10,864,950 in recurring funds for the 2026-2027 fiscal year, to be allocated in specified amounts for the Fort Fisher State Historic Site, the North Carolina Transportation Museum, Fort Fisher Aquarium, North Carolina Zoo, and for positions that may be allocated among Bakers Lake, Bob's Creek, and Salmon Creek State Natural Areas, Pettigrew and Lake Waccamaw State Parks, and Wilderness Gateway State Trail.

Appropriates $6,936,900 for 2025-26 and $4.5 million for 2026-27 from the General Fund to DNCR to be allocated in the specified amounts to Fort Fisher State Historic Site, to replace receipts while the Fort Fisher Aquarium, North Carolina Zoo, and the expansion of State parks through Connect NC bonds or other capital appropriations.

Section 3.2

Amends GS 143B-283 to allow the chair of the Environmental Management Commission (Commission) to employ professional, administrative, technical, and clerical personnel as necessary for the proper discharge of the Commission's duty and responsibility. Requires the chair to organize and direct the work of the Commission staff. Requires any additional clerical and other services to be supplied by the Secretary of the Department. Provides for fixing salaries for this personnel and for travel, subsistence, and related expenses of the personnel.

Appropriates $700,000 in recurring funds for the 2025-27 biennium from the General Fund to the Department of Environmental Quality for up to five full-time equivalent positions as dedicated staff for the Commission. Allows the positions to be established from within the following classifications, at salary grades up to Level III: Deputy Secretary, General Counsel (Attorney), Engineer, Environmental Program Consultant, Economist, and Administrative Officer.

Section 3.3

Allows the Department of Commerce (DOC) to commit in a Governor's Letter to reimburse, over a period of time not less than 10 years, a business, as defined in GS 143B-437.51 (a corporation, sole proprietorship, cooperative association, partnership, S corporation, limited liability company, nonprofit corporation, or other form of business organization, located either within or outside this State), for the costs incurred for an eligible project. Defines an eligible project as the construction of, or improvements to, new or existing water or sewer lines, facilities, or equipment for new, proposed, or existing buildings by the business, and can include water reuse and water reclamation projects, if the business commits, in a company performance agreement, to the requirements of subsection (c), described below.

Sets the total amount that may be committed for reimbursement under this section as the lesser of: (1) $50 million or (2) 50% of the cost of the eligible project. Sets the maximum amount that can be paid out in a single calendar year for all but the final year of the award term as the lesser of one-tenth of the amount committed or one-half of the costs incurred and verified by the business for that calendar year.

Requires that in order for a project to be eligible, a business operating a manufacturing site within the same county and river basin as the eligible project must also commit to the following requirements: (1) invest at least $2 billion of private funds in the development or expansion of the manufacturing site served by or located within the same county as the eligible project; (2) for the greater of the term of the agreement or 10 years, create at least 500 new jobs having an overall average compensation that exceeds the average wage for all insured private employers in the county in which the eligible project is located and maintain both the new and existing jobs of the business in that county; (3) annually verify costs incurred for the eligible project; (4) ensure that the eligible project will supply at least 60% of the total aggregate water and wastewater needs required by the manufacturing site as developed or expanded by the investment; and (5) not seek or accept any other grant from the State, including a grant under Part 2G (Job Development Investment Grant Program) of Article 10 of GS Chapter 143B, for any jobs created as part of the company performance agreement.

Specifies that the Governor's Letter is a binding obligation of the State and is not subject to State funds being appropriated by the General Assembly. Also specifies that a local government is not required to match the funds allocated by the State.

Section 3.4

Allows members of the Utilities Commission (UC) living at least 50 miles from Raleigh to receive a daily subsistence allowance for meals and lodging at a rate of $143.10 for each day of service under GS 62-10 for each day of service for when they travel to Raleigh from their home for UC business. Makes conforming changes.

Section 3.5

Appropriates $20 million from the General Fund to DOC for each year of the 2025-27 fiscal biennium for the nonprofit for which DOC contracts with pursuant to GS 143B-431.01 to be used equally for (1) business marketing expenses and (2) travel and tourism marketing expenses.

Part IV.

Section 4.1

Appropriates $2.1 million from the General Fund to the State Highway Patrol’s listed budget fund in recurring funds beginning in 2025-26 to be used to maintain and operate the VIPER network.

Section 4.2

Tasks the Executive Director of the Center for Safer Schools (Executive Director) with establishing the School Safety Grants Program (Program) for the 2025-26 year to improve safety in public school units by providing grants in the 2025-26 year for (1) services for students in crisis, (2) school safety training, (3) safety equipment in schools, and (4) subsidizing the School Resource Officer Grants Program. Allows public school units to submit applications as described for one or more grants to the Executive Director. Instructs the Executive Director to develop criteria and guidelines for the administration and use of the grants. Requires the Executive Director to consider at least (1) the level of resources available to the public school unit that would receive the funding; (2) whether the public school unit has received other school safety grants; and (3) the overall impact on student safety in the public school unit. Lists four crisis services that should be provided as part of grants for students in crisis. Specifies five topics that should be included in grants for training to increase student safety. Allows the grants for safety equipment to be used to purchase safety equipment and for training on the use of that equipment. Allows charter schools to receive grants for school safety equipment. Directs that if the Executive Director receives applications for grants for school resource officers in excess of the amount of funding appropriated for school resource officers, they may use the funds appropriated for the grants provided for by the act to cover the unmet need for school resource officer grants. Clarifies that grants provided to public school units by the Program will be used to supplement and not supplant State or non-State funds already provided for these services. Authorizes the Executive Director to retain $100,000 of the funds appropriated to the Program for administrative costs and to enter into an MOU with the Department of Public Instruction (DPI) to disburse the grants awarded. Requires the Executive Director to report on the Program to the specified NCGA committees and division, to include the four matters described, by April 1, 2026.

Appropriates $35 million from the General Fund to the Center for Safer Schools for 2025-26 to be used for the Program described above.

Section 4.3

Appropriates $25 million from the General Fund to the Department of Health and Human Services (DHHS), Division of Mental Health, Developmental Disabilities, and Substance Use Services (Division) for 2025-26 to be used to distribute grants pursuant to the Mental Health for Detainees Grant Program (MHD Grant Program) created by the act. Sets forth five program criteria and tasks the Division with developing and implementing the MHD Grant Program pursuant to those criteria. Requires each grantee to submit an annual report to the Division by October 1. Requires the Division to compile those reports by December 1 in a year in which it receives grantee reports and submit that compilation to the specified NCGA committees. Allows the Division to use up to $200,000 of the funds appropriated for administrative purposes. Specifies that the funds appropriated for the MHD Grant Program do not revert on June 30, 2026, but remain available to the Division until June 30, 2027.

Part V.

Section 5.1

Appropriates $2.3 million from the General Fund to the Office of the State Fire Marshal in recurring funds for 2025-27 to be used to support the operating costs of the Emergency Training Center located in Stanly County.

Section 5.2

Appropriates $30 million from the General Fund to the Office of the State Fire Marshal for 2025-26 to be used to cover increased expenditures related to the State's reinsurance policy.

Section 5.3.

Appropriates $300,000 from the General Fund to the Office of the State Fire Marshal in recurring funds for 2025-27 to provide funds for three administrative positions, including salaries and benefits, to support the Office of the State Fire Marshal's budgetary and human resources needs.

Section 5.4

Requires OSBM to establish a new budget code for the Office of the State Fire Marshal and create new budget funds for each division.

Section 5.5

Appropriates $27 million from the cash balance of the North Carolina Veterans Home Trust Fund’s listed budget code to the Department of Military and Veterans Affairs (DMVA) for 2025-26 to renovate and repair the Fayetteville State Veterans Home. Repeals Section 40.5(c) of SL 2021-180 (allowing DMVA to use the described funds to provide the required State match for federal funding for a new State veterans nursing facility in Wake County).

Part VI.

Appropriates $20.85 million from the IT Reserve to OSBM for 2025-26 and $850,000 for 2026-27 to be used for the replacement and stabilization of the IBIS system.

Part VII.

Appropriates $4 million from the Highway Fund to DOT for 2025-26 to provide funds for marine vessel maintenance and repairs at external shipyards to meet US Coast Guard dry dock requirements. Requires DOT’s Ferry Division to submit a report to the specified NCGA committee and division on the use of the funds including the three specified matters, by January 1, 2026.

Part VIII.

Amends GS 105-122(b), which sets out adjustments to be made when determining a corporation's net worth, to specify that a deduction for any investment, whether direct or indirect, in an insurance company subject to tax under GS Chapter 105’s Article 8B and any investment, whether direct or indirect, in an insurance company that would be subject to such tax if it engaged in business in this State. Directs that the deduction only applies if the corporation owns, directly or indirectly, more than 80% of the outstanding voting stock, voting capital interests, or ownership interests in the insurance company. Effective retroactively for taxable years beginning on or after January 1, 2019, and applicable to the calculation of franchise tax reported on the 2018 and later corporate income tax returns.

Part IX.

Section 9.1

Enacts GS 143C-5-6 requiring that each provision of the Current Operations Appropriations Act and each provisions of an appropriations bill making adjustments to that act must specify which member or members of the General Assembly requested inclusion of the provision in that act.  Directs that GS 143C-5-6 be considered and treated as a rule of procedure in the Senate and House of Representatives unless provided otherwise by a rule of either branch of the General Assembly. Effective when it becomes law and applies to Current Operations Appropriations Acts enacted on or after that date.

Section 9.2

Specifies that the headings of the parts of the act are a convenience to the act and are for reference only. Instructs that the headings do not limit or define the text of the act.

Section 9.3

Directs that, except where expressly repealed or amended by the act, any legislation enacted during the 2025 Regular Session expressly appropriating funds to an agency, a department, or an institution covered under this act, remains in effect.

Section 9.4

Specifies that if any of the act’s provisions are in conflict with GS 143C-5-4, the act’s provisions prevail. Instructs that the appropriations and the authorizations to allocate and spend funds set out in the act remain in effect until the Current Operations Appropriations Act for the applicable fiscal year becomes law, at which time that act will become effective and govern appropriations and expenditures. When the Current Operations Appropriations Act for that fiscal year becomes law, directs the Director of the Budget to adjust allotments to give effect to that act from July 1 of the fiscal year.

Section 9.5

Contains a severability clause.

Section 9.6

Specifies that the act is effective retroactive to July 1, 2025, except as otherwise provided.