Regulatory Reform Act of 2026.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 5
SENATE BILL 445
Health Care Committee Substitute Adopted 4/17/25
House Committee Substitute Favorable 5/20/26
House Committee Substitute #2 Favorable 6/2/26
Fifth Edition Engrossed 6/3/26

Short Title: Regulatory Reform Act of 2026. (Public)
Sponsors:
Referred to:
March 25, 2025
*S445-v-5*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE FURTHER REGULATORY RELIEF TO THE CITIZENS OF NORTH 2
CAROLINA. 3
The General Assembly of North Carolina enacts: 4
5
PART I. ENVIRONMENT AND NATURAL RESOURCES REFORMS 6
7
REPEAL 2023 FISHERIES HARVEST REPORTING REQUIREMENT 8
SECTION 1.(a) G.S. 113-170.3(d), (e), (f), and (g) are repealed. 9
SECTION 1.(b) The catch line of G.S. 113-170.3 reads as rewritten: 10
"§ 113 -170.3. Record -keeping requirements; mandatory reporting for certain 11
fisheries.requirements." 12
13
MOVE ARBOR WEEK FROM MARCH TO NOVEMBER 14
SECTION 3. G.S. 103-6 reads as rewritten: 15
"§ 103-6. Arbor Week. 16
The week in March November of each year containing March November 15 is hereby 17
designated as Arbor Week in North Carolina." 18
19
INCREASE CIVIL PENALTY FOR WATER THEFT 20
SECTION 4.(a) G.S. 14-151 reads as rewritten: 21
"§ 14-151. Interfering with gas, electric, and steam steam, and water appliances or meters; 22
penalties. 23
(a) It is unlawful for any person to willfully, with intent to injure or defraud, commit any 24
of the following acts: 25
… 26
(4) Make any connection or reconnection with the gas mains, water pipes, service 27
pipes, or wires of any person, furnishing to consumers natural or artificial gas, 28
water, or electricity, or turn on or off or in any manner interfere with any valve 29
or stopcock or other appliance belonging to that person, and connected with 30
the person's service or other pipes or wires, or enlarge the orifices of mixers, 31
or use natural gas for heating purposes except through mixers, or electricity 32
for any purpose without first procuring from the person a written permit to 33
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 445-Fifth Edition
turn on or off the stopcock or valve, or to make the connection or 1
reconnections, or to enlarge the orifice of mixers, or to use for heating 2
purposes without mixers, or to interfere with the valves, stop cocks, wires, or 3
other appliances of them, as the case may be. For the purposes of this 4
subsection, "water pipes " means water pipes, fire hydrants, flushing 5
assemblies, blow -offs, sampling stations, and all other appurtenances 6
connected to a water distribution system, whether above or below ground. 7
… 8
(e) Whoever is found in a civil action to have violated any provision of this section is 9
liable to the electric, gas, or water supplier in triple the amount of losses and damages sustained 10
or five thousand dollars ($5,000), whichever is greater.greater, except that whoever is found in a 11
civil action to have violated subdivision (a)(4) of this section by the connection or reconnection 12
with any water pipe is liable to the water supplier in triple the amount of los ses and damages 13
sustained or ten thousand dollars ($10,000), whichever is greater, and attorneys' fees. 14
…." 15
SECTION 4.(b) This section becomes effective December 1, 2026, and applies to 16
offenses committed on or after that date. 17
18
ALLOW LIQUEFIED PETROLEUM GAS REFILLS DURING EMERGENCIES 19
SECTION 5.(a) G.S. 119-54(a) reads as rewritten: 20
"(a) It is the purpose of this Article to provide for the adoption and promulgation of a code 21
of safety, and such rules and regulations setting forth minimum general standards of safety for 22
the design, construction, location, installation, and operation of the equipment used in handling, 23
storing, measuring, transporting, distributing, and utilizing liquefied petroleum gases and to 24
provide for the administration and enforcement of the code and such rules and regulations thereby 25
adopted. Words used in this Article shall be defined as follows: 26
(1) "Board" means the North Carolina Board of Agriculture. 27
(2) "Commissioner" means the Commissioner of Agriculture or his designated 28
agent. 29
(3) "Dealer" means any person, firm, or corporation who is engaged in or desires 30
to engage in: 31
a. The business of selling or otherwise dealing in liquefied petroleum 32
gases which require handling, storing, measuring, transporting, or 33
distributing liquefied petroleum gas; or 34
b. The business of installing, servicing, repairing, adjusting, connecting, 35
or disconnecting containers, equipment, or appliances which use 36
liquefied gas. A person who engages in any of the aforementioned 37
activities only in connection with his or his employer's use of liquefied 38
petroleum gas and not as a business shall not be deemed to be a 39
"dealer" for the purposes of this Article. 40
(3a) "Emergency supplier " means a Class A dealer that provides liqu efied 41
petroleum gas t o a consumer during a qualifying emergency, pursuant to 42
G.S. 119-58(c). 43
(4) "Liquefied petroleum gas" means any material which is composed 44
predominantly of any of the following hydrocarbons, or mixtures of the same: 45
propane, propylene, butanes (normal butanes or isobutane), butylenes. 46
(5) "Qualifying emergency" means (i) a state of emergency as declared by the 47
Governor, General Assembly, or the governing body of a municipality or 48
county pursuant to Article 1A of Chapter 166A of the General Statutes, (ii) a 49
state of emergency declared by the President of the United States, (iii) when 50
severe weather or similar circumstances exist that may result in a person being 51
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Senate Bill 445-Fifth Edition Page 3
placed in imminent danger of death or injury due to lack of heat cause d by a 1
lack of liqu efied petroleu m gas, or (iv) when a waiver from delivery 2
limitations affecting the delivery of liquefied petroleum gas has been lawfully 3
ordered." 4
SECTION 5.(b) G.S. 119-58 reads as rewritten: 5
"§ 119-58. Unlawful acts. 6
… 7
(b) Every supply tank or container with a total capacity greater than 5 gallons and with 8
its regulating equipment connected in a service system, shall be identified while in service by the 9
supplier with an attached tag, label, or other marking that includes the name name and contact 10
information of the person supplying liquefied petroleum gas to the system, and system, and the 11
name of the tank or container owner. Except as provided in subsection (c) of this section, it shall 12
be unlawful for any person, other than the supplier or the owner of the system, to disconnect, 13
interrupt or fill the system with liquefied petroleum gas without the consent of the supplier. If 14
another registered supplier is requested by the consum er to connect service and is given 15
permission by the consumer to do so, the new supplier shall notify the former supplier before 16
disconnecting the former service and connecting the new service and shall cap or plug all 17
disconnected equipment outlets outlets, perform a leak test, and leave the equipment in a 18
condition consistent with this Article and the rules adopted pursuant to this Article. 19
(c) When a qualifying emergency is in effect, a person other than the supplier or the 20
owner of the system may fill or refill a properl y inspected system, as required by law , with 21
liquefied petroleum gas, provided the following conditions are met: 22
(1) The consumer demonstrates that they have less than a twenty percent (20%) 23
supply of liquefied petroleum gas remaining in the tank or cont ainer for use 24
as the primary energy for heating or cooking. 25
(2) The consumer makes a good -faith effort to procure delivery of liquefied 26
petroleum gas from the current supplier or owner. 27
(3) The current supplier or owner is unable to make a scheduled fill or refill within 28
three business days of the good-faith procurement effort. 29
(4) The emergency supplier makes a good -faith effort to contact and obtain 30
consent from the current supplier to conduct the emergency refill before 31
attempting to do so. 32
(5) The emergency supplier attaches a nonpermanent tag to the tank or container 33
that includes the name, address, and contact information of the emergency 34
supplier, as well as the date of the emergency service. The tag shall not deface 35
or otherwise obstruct any name, tag, label, or other marking on the tank or 36
container. 37
(6) The emergency supplier provides no more than twenty percent (20%) of the 38
capacity of the tank or container in liqu efied petroleum gas as part of the 39
emergency refill performed pursuant to this subsection. 40
(7) The emergency supplier makes a good -faith effort to notify the current 41
supplier or owner promptly after the emergency service and, within five days 42
after an emergency fill or refill has occurred, provides to the current supplier 43
or owner written documentation of (i) the name and address of the customer 44
and of the emergency supplier, (ii) the date of deliver y, (iii) the approximate 45
amount of liqu efied petroleum gas that was delivered, (iv) whether or not a 46
leak was detected by the emergency supplier, and (v) the services provided to 47
address any leak detected, as needed." 48
SECTION 5.(c) G.S. 119-59 reads as rewritten: 49
"§ 119-59. Sanctions for violations. 50
General Assembly Of North Carolina Session 2025
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(a) Criminal. – A dealer who violates a provision of this Article or a rule adopted under 1
it is guilty of a Class 1 misdemeanor.misdemeanor, except that any person that violates 2
G.S. 119-58(b) is guilty of a Class A1 misdemeanor. 3
(b) Injunction. – The Commissioner or an agent of the Commissioner may apply to any 4
superior court judge and the court may temporarily restrain or preliminarily or permanently 5
enjoin any violation of this Article or a rule adopted under it. 6
(c) Civil Penalty. – The Commissioner may assess a civil penalty against any person who 7
violates a provision of this Article or a rule adopted under it. The penalty may not exceed three 8
hundred dollars ($300.00) for the first violation, five hundred dollars ($500.00) for a second 9
violation, and one t housand dollars ($1,000) for a third or subsequent violation. violation. The 10
Commission may assess a civil penalty against any person who violates G.S. 119-58(b) of up to 11
one thousand dollars ($1,000) for the fi rst violation, up to two thousand dollars ($2 ,000) for a 12
second violation, and up to three thousand dollars ($3,000) for a third or subsequent violation. In 13
determining the amount of a penalty, the Commissioner shall consider the degree and extent of 14
harm or potential harm that has resulted or could have resulted from the violation. The clear 15
proceeds of civil penalties assessed pursuant to this subsection shall be remitted to the Civil 16
Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 17
(d) Registration. – The Commissioner may deny, suspend, or revoke the registration of a 18
dealer who violates a provision of this Article or a rule adopted under it." 19
SECTION 5.(d) G.S. 119-60 reads as rewritten: 20
"§ 119-60. Liquefied petroleum gas accidents; liability limitations. 21
Any person who provides as sistance upon request of any police agency, fire department, 22
rescue or emergency squad, or any governmental agency in the event of an accident or other 23
emergency involving the use, handling, transportation, transmission or storage of liquefied 24
petroleum ga s, when the reasonably apparent circumstances require prompt decisions and 25
actions, or any person acting as an emergency supplier pursuant to G.S. 119-58(c), shall not be 26
liable for any civil damages resulting from any act of commission or omission on his part in the 27
course of his rendering such assistance unless such acts or omissions amount to willful or wanton 28
negligence or intentional wrongdoing. Nothing in this section shall be deemed or construed to 29
relieve any person from liability for civil damages (a) where the accident or emergency referred 30
to above involved his own facilities or equipment or (b) resulting from any act of commission or 31
omission on his part in the course of providing care or assistance in the normal and ordinary 32
course of conducting his own business or profession, nor shall this section be construed to relieve 33
from liability for civil damages any other tortfeasor not referred to herein. When the assistance 34
takes the form of rendering first aid or emergency health care treatment, ques tions of liability 35
shall be governed by G.S. 90-21.14." 36
SECTION 5.(e) Notwithstanding G.S. 119-59, the Department of Agriculture and 37
Consumer Services shall only issue warnings for the failure of a supplier, pursuant to 38
G.S. 119-58(b), to either attach a tag, label, or other marking to a tank or container that includes 39
the address and contact information of the person supplying liquefied petroleum gas to the system 40
and that identifies whether the tank or container is owned by the supplier, or to conduct a leak 41
test. 42
SECTION 5.(f) This section becomes effective December 1, 2026, and applies to 43
offenses committed on or after that date. Subsection (e) of this section expires December 1, 2027. 44
45
TIME LIMIT FOR DETERMINING NONCOMMERCIAL UST DISCHARGE RISK 46
AND RE QUIRING FURTHER REMEDIATION FOR CERTAIN LOW -RISK 47
DISCHARGES 48
SECTION 6.(a) G.S. 143-215.94V is amended by adding a new subsection to read: 49
"(d1) For noncommercial tanks where the Commission has received the information 50
required by subsection (c) of this section from an owner, operator, or landowner, the Commission 51
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Senate Bill 445-Fifth Edition Page 5
shall, within five years of receipt of such information : (i) determine the level of risk of the 1
discharge, and cleanup or other m easures to be required ; and (ii) notify the owner, operator, or 2
landowner of that determination . For a discharge determined to be low -risk from a 3
noncommercial tank, if the Commission fails to notify the owner, operator, or landowner in the 4
required time frame, the Commission shall be prohibited from requiring cleanup, further cleanup, 5
or further action, including filing of a Notice of Residual Petroleum pursuant to G.S. 143B-279.9 6
and G.S. 143B-279.11, unless the Commission later determines that the discharge or release 7
poses an unacceptable level of risk or a potentially unacceptable level of risk to human health or 8
the environment in which case the Commission shall produce written findings of fact sufficient 9
to demonstrate an unacceptable level of risk, or a potentially unacceptable level of risk. Nothing 10
in this section shall be construed to impair the Department 's and Commiss ion's continuing 11
authority to require cleanup, further cleanup, or further action, including filing of a Notice of 12
Residual P etroleum pursuant to G.S. 143B-279.9 and G.S. 143B-279.11, for n oncommercial 13
tanks with discharges determined to be intermediate or high -risk, notwithstanding any 14
requirement of this subsection." 15
SECTION 6.(b) This section is effective when it becomes law and applies to 16
discharges occurring before, on, or after that date as follows: (i) for discharges from 17
noncommercial tanks occurring five or more years prior to the effective date of this section for 18
which th e Commission has not previously notified an owner, operator, or landowner of its 19
determination as to the level of risk of the discharge, and actions required in response to the 20
discharge, the Commission shall have one year from the effective date of this s ection to notify 21
the owner, operator, or landowner accordingly; and (ii) for all other discharges occurring before 22
the effective date of this section for which the Commission has not previously notified an owner, 23
operator, or landowner of its determination as to the level of risk of the discharge, and actions 24
required in response to the discharge, the Commission shall have five years from the effective 25
date of this section to notify the owner, operator, or landowner accordingly. 26
27
PART II. EDUCATION REFORMS 28
29
ALLOW STUDENTS TO COMPLETE SURVEYS ASSOCIATED WITH NATIONALLY 30
NORM-REFERENCED COLLEGE ADMISSIONS TESTS 31
SECTION 7.(b) G.S. 115C-174.11(c)(4) reads as rewritten: 32
"(4) To the extent funds are made available, the State Board of Education shall use 33
a competit ive bid process to adopt one nationally norm -referenced college 34
admissions test to make available to local school administrative units, regional 35
schools, and charter schools to administer to all students in the eleventh grade 36
unless the student has already taken a comparable test and scored at or above 37
a level set by the State Board. The State Board of Education shall require the 38
administration of an alternate to the nationally norm -referenced college 39
admissions test or an alternate precursor test to the nationally norm-referenced 40
college admissions test to a student who (i) exhibits severe and pervasive 41
delays in all areas of conceptual, linguistic, and academic development and in 42
adaptive behaviors, including communication, d aily living skills, and 43
self-care, (ii) is following the extended content standards of the Standard 44
Course of Study as provided in G.S. 115C-81.5, or is following a course of 45
study that, upon completing high school, may not lead to admission into a 46
college-level course of study resulting in a college degree, and (iii) has a 47
written parental request for an alternate assessment. 48
The State Board of Education shall ensure that parents of students enrolled 49
in all public schools, including charter and regional sc hools, have the 50
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 445-Fifth Edition
necessary information to make informed decisions regarding participation in 1
the nationally norm-referenced college admissions test and precursor test. 2
Alternate assessment and nationally norm -referenced college admissions 3
test assessment results of students with disabilities shall be included in school 4
accountability reports, including charter and regional schools, provided by the 5
State Board of Education.The State Board of Education shall adopt and make 6
available to public school units one nationally norm -referenced college 7
admissions test pursuant to G.S. 115C-174.23." 8
SECTION 7.(c) Part 5 of Article 10A of Chapter 115C of the General Statutes is 9
amended by adding to the Part G.S. 115C-174.22 from Part 4 of that Article. 10
SECTION 7.(d) Part 5 of Article 10A of Chapter 115C of the General Statutes, as 11
amended by subsection (c) of this section, reads as rewritten: 12
"Part 5. Career and College Readiness. 13
"§ 115C-174.22. Tools for student learning. 14
To the extent funds are made available for this purpose, and except as otherwise provided in 15
G.S. 115C -174.11(c)(4), G.S. 115C-174.23, the State Board shall plan for and require the 16
administration of diagnostic tests in the eighth and tenth grades that align to the nationally norm 17
referenced coll ege admissions test adopted by the State Board through the competitive bid 18
process pursuant to G.S. 115C-174.11(c)(4). G.S. 115C-174.23(a). The results of the tests shall 19
be used to help diagnose student learning and provide for students an indication of whether they 20
are on track to be remediation free at a community college or university. 21
"§ 115C-174.23. Nationally norm-referenced college admissions test. 22
(a) To the extent funds are made available, the State Board of Education shall use a 23
competitive bid process to adopt one nationally norm -referenced college admissions test . The 24
State Board shall make the test available to public school units to administer to all students in the 25
eleventh grade unless the student has completed a comparable test and scored at or above a level 26
set by the State Board. 27
(b) The State Board shall require the a dministration of an alternat e to the nationally 28
norm-referenced college admissions test or an alternat e precursor test to the nationally 29
norm-referenced college admissions test to a student who meets all of the following criteria: 30
(1) Exhibits severe and pervasive delays in all areas of conceptual, linguistic, and 31
academic development and in adaptive behaviors, including communication, 32
daily living skills, and self-care. 33
(2) Is following the extended content standards of the Standard Course of Study 34
as provided in G.S. 115C-81.5, or is following a course of study that, upon 35
completing high school, may not lead to admission into a college level course 36
of study resulting in a college degree. 37
(3) Has a written parental request for an alternate assessment. 38
(c) The State Board of Education and public school units shall allow students with 39
parental consent as required by G.S. 115C-76.65(c) to complete any surveys included as part of 40
the administration of the nationally norm -referenced college admissions test required by this 41
section. Prior to the administration of the nationally norm-referenced college admissions test, 42
public school units shall provide notice regarding the informatio n collected in the surveys to 43
parents of children in eleventh grade. 44
(d) The State Board of Education shall ensure that parents of students enrolled in all 45
public school units have the necessary information to make informed decisions regarding 46
participation in the nationally norm -referenced college admissions test, precursor test, and any 47
associated surveys included as part of the test administration required by this section. 48
(e) The State Board of Education shall include alternate assessment and nationally 49
norm-referenced college admissions test assessment results for students with disabilities in public 50
school unit accountability reports. 51
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 7
…." 1
SECTION 7.(e) Part 4 of Article 10A of Chapter 115C of the General Statutes, as 2
amended by subsection (c) of this section, is repealed. 3
SECTION 7.(f) This section is effective when it becomes law and applies to 4
administrations of the national norm -referenced college admissions test pursuant to 5
G.S. 115C-174.23(a), as enacted by this section, beginning with the 2026-2027 school year. 6
7
EXPAND ALLOWABLE USE OF PESA SCHOLARSHIP 8
SECTION 8.(a) G.S. 115C-591 reads as rewritten: 9
"§ 115C-591. Definitions. 10
The following definitions apply in this Article: 11
… 12
(4a) One-to-one classroom aide. – A person who holds at least a high school 13
diploma, or its equivalent, and who supports an eligible student in a classroom, 14
and other educational settings as necessary, at the request of the Part 1 or 2 15
nonpublic school in which the eligible student is enrolled. 16
…." 17
SECTION 8.(b) G.S. 115C-595 reads as rewritten: 18
"§ 115C-595. Parental agreement; use of funds. 19
(a) Parental Agreement. – The Authority shall provide the parent of a scholarship 20
recipient with a written agreement, applicable for each year the eligible student receives 21
scholarship funds under this Article, to be signed and returned to the Authority prior to receiving 22
the scholarship funds. The agreement shall be submitted to the Authority electronically. The 23
parent shall not designate any entity or individual to execute the agreement on the parent's behalf. 24
A parent or eligible student's failure to comply with this section shall result in a forfeit of 25
scholarship funds and those funds may be awarded to another eligible student. The parent shall 26
agree to the following conditions in order to receive scholarship funds under this Article: 27
… 28
(3) Use the scholarship funds deposited into a personal education student account 29
only for the following qualifying education expenses of the eligible student: 30
a. Tuition and fees for a G.S. 115C-562.5 compliant school, disbursed as 31
provided in subdivision (1) of subsection (a1) of this section. 32
b. Textbooks required by a nonpublic school. 33
c. Tutoring and teaching services provided by an individual or facility 34
accredited by a State, regional, or national accrediting organization. 35
d. Curricula. 36
e. Fees for nationally standardized norm -referenced achievement tests, 37
advanced placement tests, or nationally recognized college entrance 38
exams. 39
f. Fees charged to the account holder for the management of the PESA. 40
g. Fees for services provided by a public school, including individual 41
classes and extracurricular programs. 42
h. Premiums charged to the account holder for any insurance or surety 43
bonds required by the Authority. 44
i. Educational therapies from a licensed or accredited practitioner or 45
provider. 46
j. Educational technology defined by the Authority as approved for use 47
pursuant to G.S. 115C-591(2a). 48
k. Student transportation, pursuant to a contract with an entity that 49
regularly provides student transportation, to and from (i) a provider of 50
education or related services or (ii) an education activity. 51
General Assembly Of North Carolina Session 2025
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l. Transaction or merchant fees charged to the account holder, not to 1
exceed two and one -half percent (2.5%) of the cost of the item or 2
service. 3
m. Education-related support services provided by a one -to-one 4
classroom aide to an eligible student enrolled in a Part 1 or 2 nonpublic 5
school. A one-to-one classroom aide shall not provide services to other 6
students during the instructional day. The nonpublic school in which 7
an eligible student is enrolled shall submit documentation to the 8
Authority describing the education-related support services requested 9
for an eligible student each semester in the manner prescribed by the 10
Authority. 11
(3a) Use of scholarship funds for reim bursement of tuition. – Notwithstanding 12
sub-subdivision a. of subdivision (3) of this subsection, a parent of an eligible 13
student may pay tuition to Part 1 or 2 nonpublic schools that are not 14
G.S. 115C-562.5 compliant schools with funds other than funds av ailable in 15
the personal education student account and then request reimbursement from 16
the Authority from scholarship funds if the parent complies with the 17
provisions of subdivision (2) of subsection (a1) of this section. 18
(4) Not use scholarship funds for any of the following purposes: 19
a. Computer hardware or other technological devices not defined by the 20
Authority as educational technology approved for use pursuant to 21
G.S. 115C-591(2a). 22
b. Consumable educational supplies, including paper, pen, or markers. 23
c. Tuition and fees at an institution of higher education, as defined in 24
G.S. 116-143.1, or a private postsecondary institution. 25
d. Tuition and fees for a nonpublic school that meets the requirements of 26
Part 3 of Article 39 of this Chapter. 27
e. Educational-related support services provided by a one -to-one 28
classroom aide who is any of the following: 29
1. A parent, guardian, legal custodian, sibling, or grandparent of 30
the eligible student. 31
2. An employee or independent contractor of the Part 1 or 2 32
nonpublic school in which the eligible student is enrolled. 33
…." 34
SECTION 8.(c) This section is effective when it becomes law and applies beginning 35
with the 2026-2027 school year. 36
37
REMOVE DEADLINE FOR EDUCATOR PREPARATION PROGRAM RULE 38
ADOPTION 39
SECTION 9.(a) All of the following provisions are repealed: 40
(1) Section 7(b) of S.L. 2017-189. 41
(2) Section 7(f) of S.L. 2017-189. 42
(3) Section 4 of S.L. 2019-149. 43
SECTION 9.(b) By October 15, 2026, the State Board of Education, in consultation 44
with the Department of Public Instruction, The University of North Carolina System Office, the 45
Community Colleges System Office, and the North Carolina Independent Colleges and 46
Universities, shall report to the Joint Legisla tive Education Oversight Committee on 47
recommendations for an educator preparation program accountability model, including any 48
necessary changes to State law that would be required to implement the accountability model. 49
SECTION 9.(c) This section is effective when it becomes law. 50
51
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 9
NEEDS-BASED PUBLIC SCHOOL CAPITAL FUND PRIORITIZATION CHANGE 1
SECTION 9.5. G.S. 115C-546.10 reads as rewritten: 2
"§ 115C-546.10. Fund created; purpose; prioritization. 3
There is created the Needs -Based Public School Capital Fund as an interest -bearing, 4
nonreverting special fund in the Department of Public Instruction. The State Treasurer shall be 5
the custodian of the Needs -Based Public School Capital Fund and shall invest its assets in 6
accordance with the provisions of G.S. 147-69.2 and G.S. 147-69.3. The Department of Public 7
Instruction shall award grants from the Fund to counties to assist with their critical public school 8
building capital needs in accordance with the following priorities: 9
(1) Counties designated as development tier one areas. 10
(2) Counties with greater need and less ability to generate sales tax and property 11
tax revenue. 12
(3) Counties with a high debt-to-tax revenue ratio. 13
(4) The extent to which a project will address critical deficiencies in adequately 14
serving the current and future student population. 15
(5) Projects with new construction or complete renovation of existing facilities. 16
(6) Projects that will consolidate two or more schools into one new facility. 17
(7) Counties that have not received a grant under this Article in the previous three 18
years.Projects for a local school administrative unit for which a grant has not 19
been awarded under this Article in the previous three years." 20
21
PART III. BUSINESS AND DEVELOPMENT REFORMS 22
23
SITE-SPECIFIC VESTING PLAN CHANGES 24
SECTION 10.(a) G.S. 160D-108.1 reads as rewritten: 25
"§ 160D-108.1. Vested rights – site-specific vesting plans. 26
… 27
(c) Approval and Amendment of Plans. – If a site -specific vesting plan is based on an 28
approval required by a lo cal development regulation, the local government shall provide 29
whatever notice and hearing is required for that underlying approval. A duration of the underlying 30
approval that is less than two five years does not affect the duration of the site -specific vesting 31
plan established under this section. If the site -specific vesting plan is not based on such an 32
approval, an approval required by a development regulation, a legislative hearing with notice as 33
required by G.S. 160D-602 shall be held. 34
A local government may approve a site-specific vesting plan upon any terms and conditions 35
that may reasonably be necessary to protect the public health, safety, and welfare. Conditional 36
approval results in a vested right, although failure to abide by the terms and condit ions of the 37
approval will result in a forfeiture of vested rights. A local government shall not require a 38
landowner to waive the landowner's vested rights as a condition of developmental approval. A 39
site-specific vesting plan is deemed approved upon the ef fective date of the local government's 40
decision approving the plan or another date determined by the governing board upon approval. 41
An approved site-specific vesting plan and its conditions may be amended with the approval of 42
the owner and the local govern ment as follows: any substantial modification must be reviewed 43
and approved in the same manner as the original approval; minor modifications may be approved 44
by staff, if such the modifications are defined and authorized by local regulation. 45
… 46
(e) Duration and Termination of Vested Right. – 47
(1) A vested right for a site -specific vesting plan remains vested for a period of 48
two five years. This vesting shall not be extended by any amendments or 49
modifications to a site-specific vesting plan unless expressly provided by the 50
local government. 51
General Assembly Of North Carolina Session 2025
Page 10 Senate Bill 445-Fifth Edition
(2) Notwithstanding the provisions of subdivision (1) of this subsection, a local 1
government may provide for rights to be vested for a period exceeding two 2
five years but not exceeding five eight years where warranted in ligh t of all 3
relevant circumstances, including, but not limited to, the size and phasing of 4
development, the level of investment, the need for the development, economic 5
cycles, and market conditions or other considerations. These determinations 6
are in the soun d discretion of the local government and shall be made 7
following the process specified for the particular form of a site -specific 8
vesting plan involved in accordance with subsection (a) of this section. 9
(3) Upon issuance of a building permit, the provision s of G.S. 160D-1111 and 10
G.S. 160D-1115 apply, except that a permit does not expire and shall not be 11
revoked because of the running of time while a vested right under this section 12
is outstanding. 13
(4) A right vested as provided in this section terminates at the end of the 14
applicable vesting period with respect to buildings and uses for which no valid 15
building permit applications have been filed. 16
(f) Subsequent Changes Prohibited; Exceptions. – 17
(1) A vested right, once established as provided for in this section, precludes any 18
zoning action development regulation by a local government which would 19
change, alter, impair, prevent, diminish, or otherwise delay the development 20
or use of the property as set forth in an approved site -specific vesting plan, 21
except under one or more of the following conditions: 22
a. With the written consent of the affected landowner. 23
b. Upon findings, by ordinance after notice and an evidentiary hearing, 24
that natural or man -made hazards on or in the immediate vicinity of 25
the property, if uncorrected, would pose a serious threat to the public 26
health, safety, and welfare if the project were to proceed as 27
contemplated in the site-specific vesting plan. 28
c. To the extent that the affected landowner receives compensation for 29
all costs, expens es, and other losses incurred by the landowner, 30
including, but not limited to, all fees paid in consideration of financing, 31
and all architectural, planning, marketing, legal, and other consulting 32
fees incurred after approval by the local government, togeth er with 33
interest as provided under G.S. 160D-106. Compensation shall not 34
include any diminution in the value of the property which is caused by 35
the action. 36
d. Upon findings, by ordinance after notice and an evidentiary hearing, 37
that the landowner or the la ndowner's representative intentionally 38
supplied inaccurate information or made material misrepresentations 39
that made a difference in the approval by the local government of the 40
site-specific vesting plan or the phased development plan. 41
e. Upon the enactmen t or promulgation of a As required by State or 42
federal law or regulation that precludes development as contemplated 43
in the site -specific vesting plan or the phased development plan, in 44
which case the local government may modify the affected provisions, 45
upon a finding that the change in State or federal law has a 46
fundamental effect on the plan, by ordinance after notice and an 47
evidentiary hearing. 48
f. Due to site conditions resulting from a natural disaster in an area with 49
a declared disaster declaration purs uant to Chapter 166A of the 50
General Statutes the local government determines that under current 51
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 11
site conditions the site no longer meets applicable State or federal 1
safety, environmental, or engineering standards, or that preclusion of 2
the development regulation would present a material risk to life, 3
health, or property. 4
g. Upon adoption of a floodplain ordinance adopted by the local 5
government for the purposes of compliance with the National Flood 6
Insurance Program. 7
(2) The establishment of a vested right under this section does not preclude 8
precludes the application of overlay zoning or other development regulations 9
which impose additional requirements but do not affect the allowable type or 10
intensity of use, or ordinances or regulations which are general in nature and 11
are applicable to all property subject to development regulation by a local 12
government, including, but not limited to, building, fire, plumbing, electrical, 13
and mechanical codes. Otherwise applicable new development regulations 14
become effective with respect to property which is subject to a site -specific 15
vesting plan upon the expiration or termination of the vesting rights period 16
provided for in this section. 17
(3) Notwithstanding any provision of this section, the establishment of a vested 18
right does not preclude, change, or impair the authority of a local government 19
to adopt and enforce development regulations governing nonconforming 20
situations or uses.nonconformities. 21
…." 22
SECTION 10.(b) This section is effective when it becomes law and applies to permit 23
applications filed and appeals filed on or after that date. 24
25
EXPAND ALTERNATE INSPECTION METHOD FOR COMPONENTS OR 26
ELEMENTS TO INCLUDE HOME POWER INSTALLATIONS 27
SECTION 10.5.(a) G.S. 160D-1106 reads as rewritten: 28
"§ 160D -1106. Alternate inspection method for component or element. components, 29
elements, or home power installations. 30
(a) Notwithstanding the requirements of this Article, a local government shall accept and 31
approve, without further responsibility to inspect, a design or other proposal for a component or 32
element component, element, or home power installation in the construction of buildings from 33
an architect licensed under Chapter 83A of the General Statutes or professional engineer licensed 34
under Chapter 89C of the General Statutes provided all of the following apply: 35
(1) When required by the North Carolina State Building Cod e, the submission 36
design or other proposal is completed under valid seal of the licensed architect 37
or licensed professional engineer. 38
(2) Field inspection of the installation or completion of a component or element 39
of the component, element, or home power installation within or connected to 40
a building is performed by a licensed architect or licensed professional 41
engineer or a person under the direct supervisory control of the licensed 42
architect or licensed professional engineer. 43
(3) The licensed architect or licensed professional engineer under subdivision (2) 44
of this subsection provides the local government with a signed written 45
document certifying that the component or element of the component, 46
element, or home power installation wi thin or connected to a building 47
inspected under subdivision (2) of this subsection is in compliance with the 48
North Carolina State Building Code. The certification required under this 49
subdivision shall be provided by electronic or physical delivery, [and] and its 50
receipt shall be promptly acknowledged by the local government through 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 445-Fifth Edition
reciprocal means. The certification shall be made on forms created by the 1
Building Code Council and Residential Code Council responsible Code 2
Council which shall include at least the following: 3
a. Permit number. 4
b. Date of field inspection. 5
c. Type of field inspection. 6
d. Contractor's name and license number. 7
e. Street address of the job location. 8
f. Name, address, and telephone number of the person responsible for 9
the field inspection. 10
g. A description of the component, element, or home power installation 11
covered by the certification. 12
(a1) In accepting certifications of inspections under subsection (a) of this section, a local 13
government shall not require information other than that specified in this section. 14
(b) Upon the acceptance and approval receipt of a signed written document by the local 15
government as required under subsection (a) of this section, notwithstanding the issuance of a 16
certificate of occupancy, the local government, its inspection department, and the inspectors are 17
discharged and released from any liabilities, duties, and responsibilities imposed by this Article 18
with respect to or in common law from any claim arising out of or attributed to the component 19
or element component, element, or home power installation in the construction of the building 20
for which the signed written document was submitted. 21
(c) With the exception of the requirements contained in subsection (a) of this section, no 22
further certification by a licensed architect or licensed professional engineer is required for any 23
component or element component, element, or home power installation designed and sealed by 24
a licensed architect or licensed professional engineer for the manufacturer of the component or 25
element component, element, or home power installation under the North Carolina State Building 26
Code. 27
(d) As used in this section, the following definitions apply: 28
(1) Component. – Any assembly, subassembly, or combination of elements 29
designed to be combined with other components to form part of a building or 30
structure. Examples of a component include an excavated footing trench 31
containing no concrete, a foundation, and a prepared underslab with 32
slab-related materials without concrete. The term does not include a system. 33
(2) Element. – A combination of products designed to be combined with other 34
elements to form all or part of a building compo nent. The term does not 35
include a system. 36
(3) Home power installation. – An electric generating or energy storage system, 37
standby system, or associated equipment, connected at 600 volts or less, 38
intended to provide electrical power to a building or structure subject to the 39
North Carolina Residential Code that requires a building permit or other 40
approval. 41
(4) Responsible Code Council. – Either the Building Code Council or Residential 42
Code Council in accordance with Article 9 of Chapter 14 3 of the General 43
Statutes." 44
SECTION 10.5.(b) G.S. 143-143.2 reads as rewritten: 45
"§ 143-143.2. Electric wiring of houses, buildings, and structures. 46
(a) The electric wiring of houses or buildings for lighting or for other purposes shall 47
conform to the requirements of the North Carolina State Building Code and any other applicable 48
State and local laws. 49
(b) In order to protect the property of citizens from the dangers incident to defective 50
electric wiring of buildings, it shall be unlawful for any firm or corporation to allow any electric 51
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 13
current for use in any newly erected building to be turned on without f irst having had an 1
inspection made of the wiring by the appropriate official electrical inspector or inspection 2
department and having received from that inspector or department a certificate approving the 3
wiring of such building. It shall be unlawful for a ny person, firm, or corporation engaged in the 4
business of selling electricity to furnish initially any electric current for use in any building, 5
unless said building shall have first been inspected by the appropriate official electrical inspector 6
or inspection department and a certificate given as required by this subsection. 7
(c) In the event that there is no legally appointed inspector or inspection department with 8
jurisdiction over the property involved, subsections (a) and (b) of this section shall have no force 9
or effect. 10
(c1) For the purposes of subsection (b) of this section, an inspection made of the wiring of 11
a "home power installation," as defined in G.S. 160D-1106(d), may be conducted in accordance 12
with G.S. 160D-1106. 13
(d) As used in this section, "building" includes any structure." 14
SECTION 10.5.(c) By July 1, 2027, the Residential Code Council shall develop a 15
home power installation work certification as required by G.S. 160D-1106, as amended by 16
subsection (a) of this section, and make it ava ilable on the Office of the State Fire Marshal's 17
website. 18
SECTION 10.5.(d) The Residential Code Council may adopt or amend rules to 19
implement provisions enacted by this section, to become effective July 1, 2027. 20
SECTION 10.5.(e) Subsections (a) and (b) of this section become effective July 1, 21
2027. The remainder of this section is effective when it becomes law. 22
23
DEVELOPER CHOICE FOR PERFORMANCE GUARANTEES FOR DRIVEWAY 24
AND ENCROACHMENT PROJECTS 25
SECTION 11.(a) G.S. 136-93 reads as rewritten: 26
"§ 136-93. Openings, structures, pipes, trees, and issuance of permits. 27
(a) No opening or other interference whatsoever shall be made in any State road or 28
highway other than streets not maintained by the Department of Transportation in cities and 29
towns, nor shall any structure be placed thereon, nor shall any structure which has been placed 30
thereon be changed or removed except in accordance with a written permit from the Department 31
of Transportation or its duly authorized officers, who shall exercise complete and perm anent 32
control over such roads and highways. No State road or State highway, other than streets not 33
maintained by the Department of Transportation in cities and towns, shall be dug up for laying 34
or placing pipes, conduits, sewers, wires, railways, or other objects, and no obstruction placed 35
thereon, without a written permit as hereinbefore provided for, and then only in accordance with 36
the regulations of said Department of Transportation or its duly authorized officers or employees; 37
and the work shall be und er the supervision and to the satisfaction of the Department of 38
Transportation or its officers or employees, and the entire expense of replacing the highway in 39
as good condition as before shall be paid by the persons, firms, or corporations to whom the 40
permit is given, or by whom the work is done. The Department of Transportation, or its duly 41
authorized officers, may, in its discretion, before granting a permit under the provisions of this 42
section, require the applicant to file a satisfactory bond, payable to performance guarantee in 43
favor of the State of North Carolina, in such an amount as may be deemed sufficient by the 44
Department of Transportation or its duly authorized officers, conditioned upon the proper 45
compliance with the requirements of this section by the person, firm, or corporation granted such 46
permit. The form of the performance guarantee may consist of a bond, irrevocable letter of credit, 47
parent guaranty, or other instrument that provides equivalent security to a surety bond or 48
irrevocable letter of credit at the election of the applicant . Any person making any opening in a 49
State road or State highway, or placing any structure thereon, or changing or removing any 50
structure thereon without obtaining a written permit as herein provided, or not in compliance 51
General Assembly Of North Carolina Session 2025
Page 14 Senate Bill 445-Fifth Edition
with the terms of such permit, or otherwise violating the provisions of this section, shall be guilty 1
of a Class 1 misdemeanor: Provided, this section shall not apply to railroad crossings. The 2
railroads shall keep up said crossings as now provided by law. 3
…." 4
SECTION 11.(b) This section is effective when it becomes law and applies to permit 5
applications filed on or after that date. 6
7
AUTHORIZE OPTIONAL DELEGATION OF ZONING APPROVALS TO 8
WINSTON-SALEM PLANNING BOARD 9
SECTION 12.(a) G.S. 160D-602 reads as rewritten: 10
"§ 160D-602. Notice of hearing on proposed zoning map amendments. 11
… 12
(f) Delegation. – The governing board may, by ordinance, delegate or assign the 13
authority for the rezoning of property to a designated planning board. The governing board shall 14
provide a right of appeal and review before the governing board in accordance with rules adopted 15
by the governing board. This authority shall be exercised by the designated planning board under 16
such rules, regulations, and guidelines as may be established by the governing board." 17
SECTION 12.(b) This section applies only to the City of Winston-Salem. 18
19
RESIDENTIAL RIGHT OF USE IN COMMERCIAL ZONING DISTRICTS 20
SECTION 13. Article 7 of Chapter 160D of the General Statutes is amended by 21
adding a new section to read: 22
"§ 160D-703.1. Residential right of use in commercial districts. 23
(a) Residential Right of Use in Commercial Districts. – A local government zoning 24
regulation shall allow all of the following as a use by right on property undergoing 25
redevelopment, except for properties that are on or adjacent to sites with known contamination 26
that have not been remediated , in all areas zoned for nonagricultural commercial, business, or 27
light industrial use: 28
(1) The siting of buildings and structures subject to the North Carolina Residential 29
Code. 30
(2) The siting of multifamily housing structures with more than four residential 31
dwelling units. 32
(3) Buildings and structures containing both residential dwelling units and 33
nonresidential uses, provided that only the residential component of any such 34
building or structure is a use by right, regardless of whether the nonresidential 35
component requires a permit, special use authorization, or other approval. 36
(b) Limitation on Height Restrictions. – A zoning regulation under subsection (a) of this 37
section shall not establish a maximum building height of less than 60 feet. 38
(c) Definitions. – For purposes of this section, "redevelopment" means the demolition 39
and reconstruction of, or rehabilitation and improvement of, an existing structure or structures 40
on a parcel, or the clearing and new construction on a parcel that contains or previously contained 41
an impervious surface, building, or other structure associated with a prior use. Redevelopment 42
does not include the construction of a new primary structure on a vacant parcel that has never 43
been developed. 44
(d) Applicability. – This section applies only to cities with a population of 50,000 or 45
greater that are located in counties with a population of 275,000 or greater." 46
47
ALLOW CONSTRUCTION AND SITING OF ACCESSORY DWELLING UNITS 48
SECTION 14.(a) Part 1 of Article 9 of Chapter 160D of the General Statutes is 49
amended by adding a new section to read: 50
"§ 160D-917. Accessory dwelling units. 51
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 15
(a) A local government shall allow the development of at least one accessory dwelling 1
unit which conforms to the North Carolina Residential Code , including applicable provisions 2
from fire prevention code s, for each single -family detached dwelling in areas zoned for 3
residential use that allow for development of single -family detached dwellings. An accessory 4
dwelling unit may be built or sited concurrently or after the primary single-family detached 5
dwelling has been constructed or sited. Nothing in this section shall prohibit a local government 6
from permitting accessory dwelling units in any area not otherwise required under this section. 7
(b) In permitting accessory dwelling units under this section, a local government shall 8
not do any of the following: 9
(1) Prohibit the use of the primary single-family detached dwelling and the 10
accessory dwelling for long-term rentals by separate households. 11
(2) Require placement in a conditional zoning district. 12
(3) Establish minimum parking requirements or other parking restrictions, 13
including imposition of additional parking requirements where an existing 14
structure is converted for use as an accessory dwelling unit. 15
(4) Prohibit the connection of the accessory dwelling unit to existing utilities 16
systems serving the primary single-family detached dwelling, provided the 17
utility service to that primary single-family detached dwelling has capacity to 18
serve both dwellings. 19
(5) Charge any fee s in excess of those charged for the permitting of a 20
single-family detached dwelling similar in nature. 21
(6) Set a maximum accessory dwelling unit size of less than 800 square feet or 22
greater than 1000 square feet. 23
(c) A local government may do any of the following: 24
(1) Impose a setback minimum for accessory dwelling units of 10 feet or the 25
setback minimum imposed generally upon lots in the same zoning 26
classification, whichever is less. 27
(2) Require that accessory dwelling units be located to the side or rear of t he 28
primary single-family detached dwelling. 29
(3) Require that accessory dwelling units be smaller than the primary 30
single-family detached dwelling. 31
(d) Except as otherwise provided in this section, a local government may regulate 32
accessory dwelling units pursuant to this Chapter and nothing in this section shall be construed 33
to impair the authority of a local government to adopt and enforce ordinances pursuant to Part 2 34
of this Article to comply with State and federal law, rules, and regulations, or permits consistent 35
with the interpretations and directions of the State or federal agency issuing the permit. 36
(e) Nothing in this section shall apply to any of the following: 37
(1) The validity or enforceability of private covenants or other contractual 38
agreements among property owners related to dwelling type restrictions. 39
(2) Properties located in a historic preservation district established pursuant to 40
Part 4 of this Article. 41
(3) Properties designated as a National Historic Landmark by the United States 42
Department of the Interior. 43
(4) An accessory dwelling unit that is not connected to water, well and septic, and 44
sewer. 45
(f) After an accessory dwelling unit has been permitted for construction on a parcel, the 46
parcel may not be further subdivided such that the accessory dwelling unit would be located on 47
a different parcel than the primary single-family detached dwelling. 48
(g) For the purposes of this section, the term "accessory dwelling unit" means an attached 49
or detached residential structure that is used in connection with , or that is an accessory to, a 50
primary single-family detached dwelling located on the same parcel as the primary single-family 51
General Assembly Of North Carolina Session 2025
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detached dwelling and that has less total square footage than the primary single-family detached 1
dwelling. 2
(h) This section applies only to cities with a population of 50,000 or greater." 3
SECTION 14.(b) A local government that has enacted an ordinance that meets the 4
requirements of this section and G.S. 160D-917, as enacted by this section, is not required to 5
adopt a new ordinance. 6
SECTION 14.(c) Local governments shall adopt development regulations to 7
implement the provisions in this section no later than July 1, 2027. If a local government fails to 8
adopt development regulations as required by this section by July 1, 2027, accessory dwelling 9
units shall be allowed in that local government without any limitations. 10
SECTION 14.(d) Subsection (a) of this section becomes effective October 1, 2026, 11
and applies to applicat ions for accessory dwelling unit permits on or after that date. The 12
remainder of this section is effective when it becomes law. 13
14
DE NOVO REVIEW OF AGENCY RULES 15
SECTION 15.(a) G.S. 150B-34 reads as rewritten: 16
"§ 150B-34. Final decision or order. 17
(a) In each contested case the administrative law judge shall make a final decision or 18
order that contains findings of fact and conclusions of law. The administrative law judge shall 19
decide the case based upon the preponderance of the evidence, giving due regard to evidence. 20
The administrative law judge may be informed by the demonstrated knowledge and expertise of 21
the agency with respect to facts and inferences within the specialized knowledge of the 22
agency.agency but shall apply traditional de novo review to the interpretation of State rules and 23
regulations. 24
(b) Repealed by Session Laws 1991, c. 35, s. 6. 25
(c) Repealed by Session Laws 2011 -398, s. 18. For effective date and applicability, see 26
editor's note. 27
(d) Except for the exemptions contained in G.S. 150B-1, the provisions of this section 28
regarding the decision of the administrative law judge shall apply only to agencies subject to 29
Article 3 of this Chapter, notwithstanding any other provisions to the contrary relating to 30
recommended decisions by administrative law judges. 31
(e) An administrative law judge may grant judgment on the pleadings, pursuant to a 32
motion made in accordance with G.S. 1A-1, Rule 12(c), or summary judgment, pursuant to a 33
motion made in accordance with G.S. 1A-1, Rule 56, that disposes of all issues in the contested 34
case. Notwithstanding subsection (a) of this section, a decision granting a motion for judgment 35
on the pleadings or summary judgment need not include findings of fact or conclusions of law, 36
except as determined by the administrative law judge to be required or allowed by G.S. 1A-1, 37
Rule 12(c), or Rule 56." 38
SECTION 15.(b) G.S. 150B-51 reads as rewritten: 39
"§ 150B-51. Scope and standard of review. 40
(a), (a1) Repealed by Sessions Laws, 2011-398, s. 27. For effective date and applicability, 41
see editor's note. 42
(b) The court reviewing a final decision may affirm the decision or remand the case for 43
further proceedings. It may also reverse or modify the decision if the substantial rights of the 44
petitioners may have been prejudiced because the findings, inferences, conclusions, or decisions 45
are: 46
(1) In violation of constitutional provisions; 47
(2) In excess of the statutory authority or jurisdiction of the agency or 48
administrative law judge; 49
(3) Made upon unlawful procedure; 50
(4) Affected by other error of law; 51
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 17
(5) Unsupported by substantial evidence admissible under G.S. 150B-29(a), 1
150B-30, or 150B-31 in view of the entire record as submitted; or 2
(6) Arbitrary, capricious, or an abuse of discretion. 3
(c) In reviewing a final decision in a contested case, the court shall determine whether 4
the petitioner is entitled to the relief sought in the petition based upon its review of the final 5
decision and the official record. With regard to asserted errors pursuan t to subdivisions (1) 6
through (4) of subsection (b) of this section, the court shall conduct its review of the final decision 7
using the de novo standard of review. With regard to asserted errors pursuant to subdivisions (5) 8
and (6) of subsection (b) of thi s section, the court shall conduct its review of the final decision 9
using the whole record standard of review. In conducting its review of the final decision, the 10
court may be informed by the agency 's interpretation of its own rules or regulations but shal l 11
apply traditional de novo review to the interpretation of State rules and regulations. 12
(d) In reviewing a final decision allowing judgment on the pleadings or summary 13
judgment, the court may enter any order allowed by G.S. 1A-1, Rule 12(c) or Rule 56. If the 14
order of the court does not fully adjudicate the case, the court shall remand the case to the 15
administrative law judge for such further proceedings as are just." 16
SECTION 15.(c) This section is effective when it becomes law and applies to actions 17
pending or filed on or after that date. 18
19
PROHIBIT LOCAL GOVERNMENTS FROM REQUIRING EMPLOYERS TO 20
BARGAIN WITH LABOR ORGANIZATIONS OR SET WAGES OR BENEFITS IN 21
CONSULTATION WITH A LABOR ORGANIZATION OR SIMILAR ENTITY 22
SECTION 16. G.S. 95-79 reads as rewritten: 23
"§ 95-79. Certain agreements declared illegal. 24
(a) Any agreement or combination between any employer and any labor union or labor 25
organization whereby persons not members of such union or organization shall be denied the 26
right to work for said employer, or whereby such membership is made a condition of employment 27
or continuation of employment by such employer, or whereby any such union or organization 28
acquires an employment monopoly in any enterprise, is hereby declared to be against the public 29
policy and an illegal combination or conspiracy in restraint of trade or commerce in the State of 30
North Carolina. 31
(b) Any provision that directly or indirectly conditions the purchase of agricultural 32
products, the terms of an agreement for the purchase of agricultural products, or the terms of an 33
agreement not to sue or settle litigation upon an agricultural producer's status as a union or 34
nonunion employer or entry into or refusal to enter into an agreement with a labor union or labor 35
organization is invalid and unenfo rceable as against public policy in restraint of trade or 36
commerce in the State of North Carolina. Further, notwithstanding G.S. 95-25.8, an agreement 37
requiring an agricultural producer to transfer funds to a labor union or labor organization for the 38
purpose of paying an employee's membership fee or dues is invalid and unenforceable against 39
public policy in restraint of trade or commerce in the State of North Carolina. For purposes of 40
this subsection, the term "agricultural producer" means any producer enga ged in any service or 41
activity included within the provisions of section 3(f) of the Fair Labor Standards Act of 1938, 42
29 U.S.C. § 203, or section 3121(g) of the Internal Revenue Code of 1986, 26 U.S.C. § 3121. 43
(c) It shall be unlawful for any unit of local government to withhold any license, permit, 44
zoning approval, financial incentives, or any other type of assistance, either directly or indirectly, 45
from an employer based on the refusal of the employer to negotiate or sign any agreeme nt with 46
a labor organization except as required by State or federal law." 47
48
ORDINANCE EXEMPTION FOR CERTAIN NONCONFORMING ON -PREMISES 49
SIGNS 50
SECTION 17. G.S. 160D-912.1 is amended by adding a new subsection to read: 51
General Assembly Of North Carolina Session 2025
Page 18 Senate Bill 445-Fifth Edition
"(e) This section shall not apply to an ordinance regulating on-premises advertising signs 1
that was lawfully adopted by a local government, and: (i) included an amortization period of 10 2
or more years during which a nonconforming sign was allowed to remain in place before it was 3
required to be removed or brought in to compliance with the current sign ordinance and (ii) the 4
date of compliance under the amortization period expired on or prior to July 1, 2024." 5
6
REDUCE CONTINUING EDUCATION HOURS FOR USED MOTOR VEHICLE 7
DEALER LICENSE RENEWAL 8
SECTION 17.5. G.S. 20-288(a1) reads as rewritten: 9
"(a1) A used motor vehicle dealer may obtain a license by filing an application, as 10
prescribed in subsection (a) of this section, and providing the following: 11
(1) The required fee. 12
(2) Proof that the applicant, within the last 1 2 months, has completed a 12 -hour 13
licensing course approved by the Division if the applicant is seeking an initial 14
license and one six-hour four-hour course approved by the Division for each 15
year of the licensing period immediately preceding the renewal if the applicant 16
is seeking a renewal license. The requirements of this subdivision do not apply 17
to a used motor vehicle dealer the primary business of which is the sale of 18
salvage vehicles on behalf of insurers or to a manufactured home dealer 19
licensed under G.S. 143-143.11 who complies with the continuing education 20
requirements of G.S. 143-143.11B. The requirement of this subdivision does 21
not apply to persons age 62 or older as of July 1, 2002, who are seeking a 22
renewal license. This subdivision also does n ot apply to an applicant who 23
holds a license as a new motor vehicle dealer as defined in G.S. 20-286(13) 24
and operates from an established showroom located in an area within a radius 25
of 30 miles around the location of the established showroom for which the 26
applicant seeks a used motor vehicle dealer license. An applicant who also 27
holds a license as a new motor vehicle dealer may designate a representative 28
to complete the licensing course required by this subdivision. 29
…." 30
31
PART IV. JUSTICE AND PUBLIC SAFETY REFORMS 32
33
ADD APPROVED FIREARM SAFETY AND TRAINING COURSE 34
SECTION 18.(a) G.S. 14-415.12(a)(4) reads as rewritten: 35
"(4) The applicant has successfully completed an approved firearms safety and 36
training course which involves the actual firing of handguns and instruction 37
in the laws of this State governing the carrying of a concealed handgun and 38
the use of deadly force. The North Carolina Criminal Justice Education and 39
Training Standards Commission shall prepare and publish general guidelines 40
for courses and qu alifications of instructors which would satisfy the 41
requirements of this subdivision. An approved course shall be any course 42
which satisfies the requirements of this subdivision and is certified or 43
sponsored by any of the following: 44
a. The North Carolina C riminal Justice Education and Training 45
Standards Commission. 46
a1. The North Carolina Concealed Carry Association. 47
b. The National Rifle Association. 48
b1. The United States Concealed Carry Association. 49
b2. U.S. LawShield. 50
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 19
c. A law enforcement agency, college, private or public institution or 1
organization, or firearms training school, taught by instructors 2
certified by the North Carolina Criminal Justice Education and 3
Training Standards Commission, the North Carolina Concealed Carry 4
Association, the United States Concealed Carry Association, U.S. 5
LawShield, or the National Rifle Association. 6
d. The North Carolina Private Protective Services Board and Secretary 7
of Public Safety pursuant to G.S. 74C-13. 8
Every instructor of an approved course shall file a copy of the firearms course 9
description, outline, and proof of certification annually, or upon modification 10
of the course if more frequently, with the North Carolina Criminal Justice 11
Education and Training Standards Commission." 12
SECTION 18.(b) This section becomes effective July 1, 2026, and applies to permit 13
applications submitted on or after that date. 14
15
CHANGE TO STATE BUREAU OF INVESTIGATION SUBPOENA AUTHORITY 16
SECTION 19.(a) G.S. 15A-298 reads as rewritten: 17
"§ 15A-298. Subpoena authority. 18
The Director of the State Bureau of Investigation or the Director's designee may issue an 19
administrative subpoena to a communications common carrier or an electronic communications 20
service to compel production of business records if the records: 21
(1) Disclose information concerning local or long -distance toll records or 22
subscriber information; and 23
(2) Are material to an active criminal investigation being conducted by the State 24
Bureau of Investigation. 25
(a) The Director of the State Bureau of Investigation or the Director's designee may issue 26
an administrative subpoena to a communications common carrier or an electronic communication 27
service provider to compel production of business records or other information pertaining to a 28
subscriber or cus tomer of such service, exclusive of the contents of communications, if the 29
records are material to an active criminal investigation being conducted by the State Bureau of 30
Investigation. 31
(b) A communications common carrier or electronic communication servic e provider 32
shall disclose to the State Bureau of Investigation all of the following information within a 33
reasonable time of a subpoena being issued pursuant to subsection (a) of this section: 34
(1) The subscriber's or customer's name. 35
(2) The subscriber's or customer's address. 36
(3) The length of service, including the start date and any applicable termination 37
date. 38
(4) The type of service utilized. 39
(5) Any other account associated with the account for which records are sought, 40
including joint or linked accounts. 41
(6) Telephone, computer, or device instrument number or other subscriber or 42
customer number or identities, including any temporarily assigned network 43
address. 44
(7) Telephone, computer, or other device connection records, including records 45
of session times and durations. 46
(8) The means and source of payment for such service, including any credit card 47
or bank account number. 48
(c) The Director, the Director 's designee, and other employees of the State Bureau of 49
Investigation are authorized to disseminate to any federal, State, tribal, or local law enforcement 50
agency any information acquired under this section in furtherance of a criminal investigation. 51
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 445-Fifth Edition
(d) A communications common carrier or electronic communication ser vice provider 1
shall not provide to a subscriber or customer any notification of a subpoena issued pursuant to 2
subsection (a) of this section." 3
SECTION 19.(b) This section is effective when it becomes law and applies to 4
subpoenas issued on or after that date. 5
6
THIRD-PARTY CRIMINAL HISTORY RECORD CHECK VENDORS FOR CERTAIN 7
LOCAL GOVERNMENT CHECKS 8
SECTION 20. Notwithstanding G.S. 153A-94.2(b) and G.S. 160A-164.2(b), 9
municipalities and counties may enter contracts with third -party vendors supplying criminal 10
history record checks to conduct cri minal history record checks required pursuant to those 11
sections. All contracts entered pursuant to this section shall terminate on or before December 1, 12
2026, or when the State Bureau of Investigation request for proposal is awarded, whichever 13
occurs later . Third -party vendors conducting criminal history record checks pursuant to this 14
authority shall comply with any restrictions or requirements set by law governing fingerprints 15
and other information collected by the Bureau for a criminal record check, as re quired by 16
G.S. 143B-1209.09. 17
18
INCREASE FINES FOR INTENTIONAL OR RECKLESS LITTERING 19
SECTION 21.(a) G.S. 14-399 reads as rewritten: 20
"§ 14-399. Littering. 21
(a) No person, including any firm, organization, private corporation, or governing body, 22
agents or employees of any municipal corporation shall intentionally or recklessly throw, scatter, 23
spill or place or intentionally or recklessly cause to be blown, scattered, spilled, thrown or placed 24
or otherwise dispose of any litter upon any public property or private property not owned by the 25
person within this State or in the waters of this State including any public highway, public park, 26
lake, river, ocean, beach, campground, forestland, recreational area, trailer park, highway, road, 27
street or alley except: 28
(1) When the property is designated by the State or political subdivision thereof 29
for the disposal of garbage and refuse, and the person is authorized to use the 30
property for this purpose; or 31
(2) Into a litter receptacle in a manner that the litter will be prevented from being 32
carried away or deposited by the elements upon any part of the private or 33
public property or waters. 34
… 35
(c) Any person who violates subsection (a) of this section in an amount not exceeding 10 36
pounds and not for commercial purposes is guilty of a Class 3 misdemeanor punishable by a fine 37
of not less than five hundred dollars ($500.00) one thousand dollars ($1,000) nor more than one 38
thousand dollars ($1,000) three thousand dollars ($3,000) for the first offense. In addition, the 39
court may require the violator to perform community service of not less than eight hours nor 40
more than 24 hours. The community service required shall be to pick up litter if feasible, and if 41
not feasible, to perform other labor commensurate with the offense committed. Any second or 42
subsequent violation of subsection (a) of this section in an amount not exceeding 10 pounds and 43
not for commercial purposes within three years after the date of a prior violation is a Class 3 44
misdemeanor punishable by a fine of not less than one thousand dollars ($1,000) three thousand 45
dollars ($3,000) nor more than three thousand dollars ($3,000). five thousand dollars ($5,000). 46
In addition, the court may require the violator to perform community service of not less than 16 47
hours nor more than 50 hours. The community service required shall be to pick up litter if 48
feasible, and if not feasible, to perform other labor commensurate with the offense committed. 49
… 50
General Assembly Of North Carolina Session 2025
Senate Bill 445-Fifth Edition Page 21
(d) Any person who violates subse ction (a) of this section in an amount exceeding 10 1
pounds but not exceeding 500 pounds and not for commercial purposes is guilty of a Class 3 2
misdemeanor punishable by a fine of not less than one thousand dollars ($1,000) five thousand 3
dollars ($5,000) nor more than three thousand dollars ($3,000). ten thousand dollars ($10,000). 4
In addition, the court shall require the violator to perform community service of not less than 50 5
hours nor more than 100 hours. The community service required shall be to pick up litter if 6
feasible, and if not feasible, to perform other community service commensurate with the offense 7
committed. 8
… 9
(e) Any person who violates subsection (a) of this section in an amount exceeding 500 10
pounds or in any quantity for commercial purpos es, or who discards litter that is a hazardous 11
waste as defined in G.S. 130A-290 is guilty of a Class I felony punishable by a fine of five 12
thousand dollars ($5,000). not less than ten thousand dollars ($10,000) nor more than fifteen 13
thousand dollars ($15,000). In addition, the court shall require the violator to perform community 14
service of not less than 100 hours. The community service required shall be to pick up litter if 15
feasible, and if not feasible, to perform other community service commensurate with the offense 16
committed. 17
…." 18
SECTION 21.(b) This section becomes effective December 1, 2026, and applies to 19
offenses committed on or after that date. 20
21
PROHIBIT TELEPHONE SOLICITORS FROM MISREPRESENTING CALL 22
ORIGINS 23
SECTION 22.(a) G.S. 75-100 is amended by adding a new subdivision to read: 24
"(10) A telephone number is the property of a telephone subscriber, subject to the 25
terms and conditions of the subscriber's contract with a telephone carrier." 26
SECTION 22.(b) G.S. 75-101(10) reads as rewritten: 27
"(10) Telephone solicitor. – Any individual, business establishment, business, or 28
other legal entity doing business in this State that, directly or through 29
salespersons or agents, makes or attempts to make telephone solicitations or 30
causes telephone solicitation s to be made. made, and any agent of that 31
individual, business establishment, business, or legal entity. "Telephone 32
solicitor" also includes any party defined as a "telemarketer" under the 33
Telemarketing Sales Rule." 34
SECTION 22.(c) G.S. 75-102 reads as rewritten: 35
"§ 75-102. Restrictions on telephone solicitations. 36
… 37
(i) No telephone solicitor shall cause misleading information to be transmitted to users 38
of caller identification technologies or otherwise block or misrepresent the origin of the telephone 39
solicitation. solicitation or use any other alteration to the origin of the telephone solicitation that 40
displays in a way to give the perception that the call originated from any other origin except the 41
actual origin of the telephone solicitation. No provider of telephone caller identification services 42
shall be held liable for violations of this subsection committed by other individuals or entities. It 43
is not a violation of this subsection for a telephone solicitor to utilize the name and number of 44
the entity the solicitation is being made on behalf of rather than the name and number of the 45
telephone solicitor. 46
(j) A telephone solicitor or its agent that makes telephone solicitations on its behalf, 47
provided that the telephone solicitor ensures compliance by its agent, shall keep a record for a 48
period of 24 months from the date a telephone solicitation is made of the legal name, any fictitious 49
name used, the resident address, the telephone number, and the job title of each individual who 50
makes a telephone solicitation for that telephone solicitor. If an individual who makes telephone 51
General Assembly Of North Carolina Session 2025
Page 22 Senate Bill 445-Fifth Edition
solicitations for a telephone solicitor uses a fictitious name, the fictitious name shall be traceable 1
only to the specific individual. 2
…." 3
SECTION 22.(d) Article 4 of Chapter 75 of the General Statutes is amended by 4
adding a new section to read: 5
"§ 75-104.1. Telephone carriers. 6
(a) A telephone carrier shall not knowingly and intentionally transmit, sell, or otherwise 7
provide the numbers of telephone subscribers to any entity the telephone carrier knows (i) will 8
use the number to violate provisions of this Article, (ii) has previously used telephone subscriber 9
information to violate provisions of this Article, or (iii) has previously provided the information 10
to another entity that has violated provisions of this Article. 11
(b) A telephone carrier shall not be held liable for a telemarketer's violation of 12
G.S. 75-102(i)." 13
SECTION 22.(e) G.S. 75-105 reads as rewritten: 14
"§ 75-105. Enforcement. 15
… 16
(b) A telephone subscriber who has received a telephone solicitation from or on behalf 17
of a telephone solicitor in violation of this Article may bring any of the following actions in civil 18
court: 19
(1) An action to enjoin further violations of this Article by the telephone solicitor. 20
(2) An action to recover five hundred dollars ($500.00) for the first violation, one 21
thousand dollars ($1,000) for the second violation, and five thousan d dollars 22
($5,000) for the third and any other violation that occurs within two years of 23
the first violation. 24
(3) An action to recover ten thousand dollars ($10,000) for each call placed in 25
knowing violation of G.S. 75-102(i). 26
…." 27
SECTION 22.(f) This section becomes effective December 1, 2026, and applies to 28
phone calls placed on or after that date. 29
30
PART V. SEVERABILITY AND EFFECTIVE DATE 31
SECTION 23.(a) If any provision of this act or its application is held invalid, the 32
invalidity does not affect other provisions or applications of this act that can be given effect 33
without the invalid provisions or application and, to this end, the provisions of this act are 34
severable. 35
SECTION 23.(b) Except as otherwise provided, this act is effective when it becomes 36
law. 37