Notable Activity
Committee meetings and floor votes reached a new level of intensity this week as legislators raced to finalize bills ahead of the summer recess at the end of the month. Expect a flurry of activity and more bills being sent to the governor’s desk than at any other point this session. Once the legislature breaks, the vast majority of legislators are expected to remain at home, though leadership may continue to return to Raleigh to work on a compromise budget and major policy bills. The exact timing for resuming normal legislative work remains uncertain.
Also of note, Senate Leader Phil Berger has announced that the next Helene relief package will move forward soon, despite earlier concerns that it might become entangled in budget negotiations between the House and Senate. The Senate had originally included its version of Helene relief as a subsection of its budget proposal, prompting uncertainty that additional relief could be delayed without a budget deal with the House. Now that Berger has stated his intent to move it separately, leaders in both chambers will be able to come to a faster compromise and authorize new relief before adjourning for summer recess. We will share details of that relief package as they become available.
Bills on the Move
- House Bill 91 – Define Armed Forces/Religious Prop. Tax Excl.
House Bill 91 – Define Armed Forces/Religious Prop. Tax Excl.
Bill summary: The bill adds “Space Force” to all statutory references to the complete list of armed forces. The bill also allows religious institutions to file late applications for exemption from taxation for the previous five years prior to the bill’s passing.
Changes of note: None this week
Bill next steps: The bill was approved by the Senate and sent to the governor’s desk for signature.
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- House Bill 171 – Equality in State Agencies/Prohibition on DEI
House Bill 171 – Equality in State Agencies/Prohibition on DEI
Bill Summary: The bill prohibits state agencies and local governments from using public money to promote or fund any diversity, equity, and inclusion (DEI) initiatives or programs or applying for federal funds that require compliance with DEI policies.
Changes of Note: None this week
Bill next steps: The bill was approved by the Senate Judiciary Committee and referred to the Rules and Operations Committee of the Senate.
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- House Bill 251 – Various Disaster Recovery Reforms
House Bill 251 – Various Disaster Recovery Reforms
Bill summary: The bill explicitly prohibits discrimination based on political affiliation or political speech in the administration of state disaster recovery assistance. Violations of the law would be classified as a Class I felony. Additionally, it ensures that applicants for state emergency grants are not required to disclose personal demographic information unless legally necessary. The bill also establishes penalties for theft or burglary of temporary housing during emergencies. The bill establishes the automatic adoption of any temporary federal relief for hospitals to ensure no conflict with federal and state rulemaking in a state of emergency.
Changes of note: None this week
Bill next steps: The bill was passed by the House and sent to the governor for signature.
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- House Bill 352 – Modify Water and Sewage Project Bid Req.
House Bill 352 – Modify Water and Sewage Project Bid Req.
Bill summary: The bill authorizes contracts for construction of water/sewer systems with only two competitive bids, and makes other environmental regulatory changes, mostly in relation to water mapping and the North Carolina Department of Environmental Quality permitting.
Changes of note: Language was added to expedite processing of environmental permits for upland basins and marinas.
Bill next steps: The bill was approved by the Senate and sent to the House for concurrence.
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- House Bill 612 – Fostering Care in NC Act
House Bill 612 – Fostering Care in NC Act
Bill summary: The bill seeks to delineate the jurisdiction of courts in matters involving juveniles, ensuring a more precise allocation of judicial responsibilities. Further, it restructures and redefines the roles and responsibilities of county social services boards and departments, regional social services boards and departments, and consolidated human services boards and agencies. The bill also requires background checks for individuals employed by local governments in positions involving work with children.
Changes of note: The bill was modified to allow the North Carolina Department of Health and Human Services (NCDHHS) to receive requests to review reports of abuse and neglect, and to detail the timeline in which the NCDHHS shall review the requests.
Bill next steps: The House approved the bill and sent it to the governor for signature.
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- House Bill 661 – Building Industry Efficiency Act of 2025
House Bill 661 – Building Industry Efficiency Act of 2025
Bill summary: The bill prohibits inspection departments from charging fees for canceled inspections, clarifies municipal responsibilities for pedestrian and street improvements, and sets limits on construction standards for certain streets. It would also allow private contractors to self-certify residential changeout work (e.g., HVAC systems) and exempt them from local inspection requirements. Additionally, the bill addresses issues related to development and construction practices to streamline processes.
Changes of note: Minor changes were made to the bill authorizing public-private partnerships to build North Carolina Alcoholic Beverage Control (ABC) warehouses and specifying definitions of cold-water immersion tanks.
Bill next steps: The bill was passed by the House and sent to the Senate, where it was referred to the Committee on Rules and Operations of the Senate.
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- House Bill 926 – Regulatory Reform Act of 2025
House Bill 926 – Regulatory Reform Act of 2025
Bill summary: The bill makes various regulatory changes across a wide swath of topics.
Changes of note: The bill originally contained limitations to local governments’ ordinance rulemaking as it pertained to water/sewer allocations and the stringency of the rules, but those provisions were removed from the current legislation.
Bill next steps: The bill passed its second reading in the House and was placed on the calendar for next week to receive a final House vote.
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- Senate Bill 205 – Swimming Pools/Housing Regulatory Reform
Senate Bill 205 – Swimming Pools/Housing Regulatory Reform
Bill summary: The first sections pertain to regulations around private swimming pools, including those rented on apps. The remaining sections largely restrict local governments’ authority to regulate land use and development, and they create civil jurisdiction for third parties to sue governments for land use decisions they disagree with.
Changes of note: None this week.
Bill next steps: The bill was scheduled for a hearing in the Committee on Rules, Calendar, and Operations of the House, but was removed from the calendar. At this time, it is uncertain if the bill will be heard prior to July recess. If so, there is a high likelihood it will be calendared with little advance notice.
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- Senate Bill 695 – Incent Development Finance District Funding
Senate Bill 695 – Incent Development Finance District Funding
Bill summary: The bill provides incentives to grow the property tax base of local governments by facilitating private developer involvement via making changes to the classification of inventory property tax deferral. For the purposes of classification, inventory constructed by a builder and owned by the builder or a business entity of which the builder is a member and is in an incentive district. An incentive district is defined as an area (i) designated by a developer, (ii) submitted for approval to the governing body of the unit of local government in which the area is located, (iii) determined, by that governing body, to be an area for which the unit could apply for project development financing debt instruments, and (iv) approved by the governing body as an incentive district. An incentive district may comprise no more than 5% of the local government unit’s total area.
Changes of note: None this week
Bill next steps: The bill was approved by the Senate and will be sent to the House.
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- Senate Bill 706 – County Waste Management Assistance
Senate Bill 706 – County Waste Management Assistance
Bill summary: This bill re-establishes the Scrap Tire Disposal Account at the Department of Environmental Quality (DEQ) and modifies the proceeds of the scrap tire disposal tax as follows:
- 30% to the Scrap Tire Disposal Account
- 70% to counties on a per capita basis, according to the most recent annual population estimates
The bill then allows DEQ to use up to 75% — previously 50% — of the revenue in the Scrap Tire Disposal Account to make grants to units of local government to assist them in disposing of scrap tires.
Changes of note: None this week
Bill next steps: The bill was passed by the Senate and sent to the House, where it was referred to the Committee on Rules, Calendar, and Operations of the House.
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