Notable Activity
This week saw a lot of action between the House and the Senate as lawmakers rushed to finalize bills before they adjourned for the summer recess. While much of the activity involved passing bills back and forth between the chambers for their approval before being sent to the governor, there was also significant attention on bills that did not move forward. Check the “Bills on the Move” (below) to see which bills impacting counties are on their way to becoming law, here are some newsworthy topics that failed to advance:
Trawling for Shrimp: Language was added in the Senate to a bill regulating fishing seasons that would have banned shrimp trawling inshore and up to half a mile off the coast — a change with potential effects on the shrimping industry. In response, advocates from the industry made visits to the General Assembly to voice their concern, and the House announced they would not take up the legislation — effectively ending the bill’s chance to become law.
Raw Milk and Pesticide: Every year, the General Assembly passes a myriad of changes to farming legislation, often at the request of stakeholders and agencies. While they can often be debated, this year’s legislation received additional attention over whether the state would allow or ban the sale of raw milk. A second provision would have protected pesticide manufacturers from litigation if they followed certain labeling guidelines, prompting discussion about consumer protection versus agricultural quality. In the end, the House and Senate were in disagreement, and the bill was left unfinished before the recess.
Mini-Budgets: When it became apparent that a comprehensive state budget would take more time to negotiate before the end of the fiscal year, both chambers released legislation called “mini-budgets” to allocate funds toward initiatives or programs they thought couldn’t wait for an adjustment. The Senate proposed one mini-budget, and the House proposed two different ones. Neither chamber agreed with the others’ funding allocations or policy decisions, so all three bills are now considered dead. Work will continue on a comprehensive state budget, but when that language will be released, and whether the House and Senate will reach an agreement, remains to be seen.
You Don’t Have to Go Home, But You Can’t Stay Here: The House and Senate were unable to agree on rules for when the General Assembly would return to session and what issues could be considered upon their return. The Senate proposed to adjourn and reconvene for a few days every month between now and November, and to only consider legislation that pertained to budget and disaster recovery, conference reports, election law (including district maps), appointments or confirmations, and actions based on gubernatorial actions (such as vetoes). The House, however, did not take up the adjournment resolution, leaving the door open for either or both chambers to return at their discretion and take up any legislation. At this time, we expect a two-week break before any voting session.
Bills on the Move
- House Bill 116 – Various Local Provisions 4
House Bill 116 – Various Local Provisions 4
Bill summary: The bill creates partisan elections for the Columbus, Gaston, and Johnston County Boards of Education, and details that they shall be elected on staggered four-year terms.
Changes of note: Section 4 of the bill was rewritten to include Columbus, Gaston, and Johnston counties.
Bill next steps: The bill was sent to conference, then sent to the Committee on Rules, Calendar, and Operations of the House, where it did not advance. Because the bill addresses taxation, election changes, and other governance changes, the bill is still considered eligible for future action when the General Assembly reconvenes.
Section 4 was rewritten to include Columbus, Gaston, and Johnston counties.
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- House Bill 173 – Various Local Provisions 3
House Bill 173 – Various Local Provisions 3
Bill summary: The bill de-annexes territories in Asheville, Wake County, and Taylortown; modifies the leases for the Asheboro and RDU airports; and adjusts the boundary between Catawba and Lincoln counties.
Changes of note: None this week.
Bill next steps: The bill was passed by the House and the Senate and sent to the governor for consideration.
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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.
Changes of note: None this week.
Bill next steps: The bill was signed by the governor and has become state law.
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- House Bill 694 – Regional Water Study/Interbasin Transfer Subbasin/ Total Maximum Daily Load
House Bill 694 – Regional Water Study/Interbasin Transfer Subbasin/ Total Maximum Daily Load
Bill summary: The bill directs the Environmental Finance Center (EFC) at the University of North Carolina at Chapel Hill’s School of Government to conduct a study on the regionalization of water and wastewater services across the state. The EFC will provide recommendations on legislative or regulatory changes related to financial, auditing, or oversight requirements imposed on public water and wastewater systems to enhance informed decision-making regarding financial stability and regionalization potential. In conducting the study, the EFC is to consult with the State Water Infrastructure Authority, the Local Government Commission, the North Carolina League of Municipalities, and the North Carolina Association of County Commissioners. The study is to be completed by April 1, 2026.
Changes of note: None this week.
Bill next steps: The House voted to concur with the changes from the Senate. The bill was ordered enrolled to be sent to the governor.
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- House Bill 850 – Interbasin Transfer Moratorium/Study
House Bill 850 – Interbasin Transfer Moratorium/Study
Bill summary: The bill directs the North Carolina Collaboratory to study interbasin transfers and provide recommendations for legislation to revise the current process, due in early 2027. The Collaboratory will consult with the Army Corps of Engineers and others to ensure existing and futured planned water supply and hydroelectric power generation needs are met. The bill provides a moratorium on interbasin transfer certificates for any new or existing surface water that would result in a transfer in excess of 15 million gallons per day until March 1, 2027.
Changes of note: The Senate adopted a proposed committee substitute (PCS) that provided further specificity to the study and a specific end date to the moratorium as noted above.
Bill next steps: The House voted to concur with the changes from the Senate. The bill was ordered enrolled to be sent to the governor.
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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, including several of interest to county governments.
Changes of note: A House floor amendment was added to attach two sections from Senate Bill 205 / House Bill 765 pertaining to split development regulation jurisdictions and prohibiting waiting periods for refiling of development applications.
Bill next steps: The bill passed out of the House and has been referred to the Committee on Rule and Operations of the Senate.
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- House Bill 948 – The P.A.V.E. Act
House Bill 948 – The P.A.V.E. Act
Bill Summary: The bill authorizes a new 1% transportation sales and use tax for Mecklenburg County, subject to voter approval. It changes laws that apply to the existing Mecklenburg County transit sales and use tax laws if the county levies the newly authorized tax.
Changes of note: A provision was added to authorize the State Auditor to audit local governments or transportation authorities who use public funds for local transportation infrastructure projects.
Bill next steps: The bill was approved by both the House and Senate and sent to the governor for consideration.
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- House Bill 1012 – Disaster Recovery Act of 2025 – Part II
House Bill 1012 – Disaster Recovery Act of 2025 – Part II
Bill Summary: The bill allocates an additional $700 million toward Hurricane Helene Recovery. Highlights of the funds include:
- $270 million from the DOT budget for Western North Carolina repairs
- $75 million for private road and bridges replacement and repair
- $70 million for local government capital repairs
- $65 million to repair and rebuild damaged schools
- $50 million for no-interest loans for local government
- $18 million toward wildfire preparation
Changes of note: Both the House and Senate released their own versions of the disaster recovery act, but both the House and Senate agreed in conference to the above relief package.
Bill next steps: The bill was passed by the House and Senate and sent to the governor for consideration.
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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:
- 70% to counties on a per capita basis, according to the most recent annual population estimates
- 30% to the Scrap Tire Disposal Account
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 approved by the House and Senate and sent to the governor for consideration.
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