This bill proposes administrative and technical updates to North Carolina laws governing state retirement systems, primarily affecting teachers, state employees, and local government workers. It reinstates previously forfeited military service credits for eligible retirees who purchase that service back after January 1, 2027, ensuring their military time counts toward their pension calculations. Additionally, the legislation clarifies that fully contributory death benefits cannot be reduced to cover overpayments or errors in other retirement benefits. The bill also introduces a contribution-based benefit cap to limit pension payments for certain members and modifies rules regarding the offset of erroneous payments against retirement allowances.
This bill directs the North Carolina Office of the State Auditor to conduct a performance audit of the Ferry Division within the Department of Transportation. The audit will examine financial spending, operational efficiency, and the current route system to identify ways to reduce costs and increase revenue. Additionally, the review will explore options for diversifying funding sources to support capital projects and cover operating expenses. The State Auditor must submit a final report detailing these findings to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division by October 1, 2026.
HB 206 modifies North Carolina's process for handling firearms surrendered under domestic violence protective orders. It requires defendants to immediately surrender firearms, ammunition, and permits to the sheriff when such orders are issued, with a 24-hour deadline if immediate surrender isn't possible. The bill clarifies that sheriffs must store these items, may charge reasonable storage fees, and must conduct criminal background checks before returning firearms after the order ends. This directly affects domestic violence defendants, victims, and sheriffs managing firearm storage and retrieval.
HB 920, the NC Digital Asset Freedom Act, allows North Carolina residents and businesses to use qualifying digital assets for everyday transactions and tax payments. To qualify, digital assets must meet strict criteria including 10 years of security, $750 billion market capitalization, decentralized governance, proof-of-work security, and U.S. regulatory classification as a non-security. The bill recognizes these assets as legally valid payment methods (preventing denial of enforceability) and permits tax payments to the state using them, requiring reporting of U.S. dollar equivalents at transaction time. It also mandates privacy protections for users and imposes a $2,000 daily transaction limit for new users of digital asset kiosks to prevent fraud.
SB 474, the DAVE Act, creates a new Division of Accountability, Value, and Efficiency within North Carolina's State Auditor's office. It requires all state agencies to report by October 2025 on how they spend public funds and list vacant positions held for six months or longer, including reasons for vacancies. The Division will assess whether agencies or specific positions remain necessary, using AI tools to analyze spending effectiveness, duplication, and budget use. By December 2025, the Division must recommend to the legislature which agencies or positions should be eliminated based on this review.
Senate Bill 648 modifies various provisions affecting North Carolina's courts and legal procedures. It adds High Point University School of Law to the list of institutions receiving state appellate division reports. The bill renames and clarifies the framework for "judicially managed accountability and recovery courts" under the Administrative Office of the Courts. It also requires clear disclosure when official court forms are modified by attorneys or parties. Furthermore, the bill repeals the requirement for public notice of name change applications at the courthouse and clarifies confidentiality for certain applicants, such as victims of domestic violence.
SB 355 waives tuition at North Carolina public colleges for survivors of correctional officers, probation officers, or firefighters who died in the line of duty or became permanently disabled. It specifically covers spouses of disabled officers and children (ages 17-24) of disabled officers, with eligibility requiring service-connected death/disability and verification from relevant agencies. The waiver applies to both credit and noncredit programs, limiting bachelor’s degree support to 54 months. This policy directly affects families of these public safety workers by reducing education costs.
HB 133, the NC Farmland and Military Protection Act, bans U.S.-designated adversarial foreign governments from buying, leasing, or holding interests in agricultural land or land within 75 miles of major military installations like Fort Bragg and Camp Lejeune. It directly affects foreign governments identified by the U.S. State Department as adversaries under arms regulations, preventing them from acquiring land critical to food production or near military sites. The law excludes agricultural research leases under 250 acres and makes any violating land transfer legally void. This focuses on restricting foreign control of strategic land without altering existing domestic land transactions.
HB 372 prevents North Carolina cities from banning or requiring permits for "no-impact home-based businesses," directly affecting residents who run small home businesses like crafts or consulting. The bill prohibits cities from mandating rezoning, fire sprinklers, or applications for these businesses, while allowing limited regulations to ensure safety, residential compatibility, and compliance with laws (e.g., no traffic spikes or visible storefronts). It defines "no-impact" businesses as those operating inside homes/yards, selling legal goods, with minimal employees or visitors, and not generating street parking. The law does not override private agreements like homeowners association (HOA) rules or restrictions on illegal activities (e.g., drug sales).
HB 517 modifies North Carolina's Nonprofit Corporations Act to expand merger options for charitable organizations and simplify disclosure requirements. It allows charitable nonprofits to merge with specific tax-exempt limited liability companies (LLCs) that would qualify for 501(c)(3) status if not disregarded for tax purposes, and clarifies rules for merging with unincorporated entities like partnerships. The bill also permits charitable organizations to satisfy state disclosure obligations by providing the acknowledgment required for federal tax deductions, aligning state and federal compliance. This directly affects North Carolina-based charitable nonprofits and their merger partners by reducing administrative barriers and clarifying legal pathways.
HB 747 updates North Carolina's wildlife laws with three key changes. It requires the Wildlife Resources Commission to keep personal information (like addresses and email) and details about rare species habitats confidential to prevent harm or theft. The bill also creates two new license plates - “Wildlife Resources” (requiring 300+ applications before development) and “Lifetime Conservationist” - with sales revenue funding conservation accounts. Additionally, it shortens the out-of-state boat number reciprocity period from 90 to 60 days and adds safety rules for personal watercraft, including mandatory Coast Guard-approved life jackets and restrictions on close following. These changes affect the Commission, vehicle owners, and boaters, effective October 1, 2025.
This bill, known as Jaleeyah's Law, strengthens North Carolina's anti-gang laws by updating definitions of criminal gangs and increasing penalties for soliciting minors to participate in gang activity. It creates new offenses for encouraging people under 18 to join gangs and for gang members possessing firearms, with stricter penalties for those under 18. The legislation also allocates funding to hire additional prosecutors and investigators specifically focused on criminal gang cases. These changes will take effect in 2026 and aim to provide clearer legal tools for prosecuting gang-related crimes.
