SB 177 expands North Carolina's Medicaid Healthcare Access and Stabilization Program (HASP) to include qualifying freestanding psychiatric hospitals, allowing them to receive increased reimbursements for services. The bill creates a new assessment (a fee) on these hospitals, calculated as a percentage of their hospital costs, to fund the program. To implement this, the state must seek federal approval from CMS to include psychiatric hospitals in HASP. This change directly affects all Medicare-certified, state-licensed freestanding psychiatric hospitals in North Carolina, requiring them to pay the new assessment while gaining eligibility for enhanced Medicaid payments.
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.
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.
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.
SB 257, the 2025 Appropriations Act, allocates funding for North Carolina's state agencies, departments, and institutions for the 2025-2027 fiscal biennium. It provides budget authority from the General Fund, Highway Fund, and Highway Trust Fund to cover current operations, maintenance, and specific programs like those managed by the Department of Transportation. The bill also includes federal block grant funding for health and human services (DHHS) and other designated programs. This funding measure directly affects all state entities receiving these appropriations and becomes effective July 1, 2025.
This bill restricts the City of Rocky Mount from using money earned by its electric utility to fund general city expenses beyond specific operational needs. It mandates that revenue from electric rates must primarily cover the costs of running the power system, paying off related debts, and keeping rates low for customers. The only exception allows the city to transfer a limited amount of surplus funds to other municipal accounts, capped at the greater of 3% of the system's assets or 5% of its annual revenue. Effective July 1, 2026, these rules apply exclusively to Rocky Mount, preventing the transfer of electric utility profits to the city's general fund for unrelated purposes.
SB 695, titled "Incent Development Finance District Funding," was introduced in 2025 but withdrawn from committee on April 28, 2025, without advancing further. The bill's title suggests it aimed to establish incentives for funding Development Finance Districts (DFDs), which are designated areas where local governments use special tax mechanisms to finance public improvements. However, no specific policy provisions or affected entities are described in the provided context, as the bill was withdrawn before committee action. Since it did not pass committee or receive a full legislative vote, no concrete policy changes were enacted.
This bill requires counties in North Carolina that completed a property reappraisal effective January 1, 2026, to temporarily pause using those new values for tax calculations. Instead, these counties must use the property values from their previous reappraisal for the 2026-2027 fiscal year and continue using the 2026 reappraisal values for all future years until a new general reappraisal is conducted. The legislation also clarifies the timeline for scheduling the next reappraisal and allows taxpayers to appeal property listings related to the 2026 reappraisal during the 2027 calendar year. Additionally, the bill updates qualifications and requirements for county assessors, mandating a $20 examination fee for certain candidates and requiring all assessors to complete 30 hours of continuing education every 24 months.
This bill authorizes the University of North Carolina system to finance specific capital improvement projects, such as dormitory renovations and new construction, using non-state funds like gifts, grants, and hospital receipts. It allows the university to issue special obligation bonds to cover these costs and includes a mechanism for the Director of the Budget to adjust project funding if necessary. Additionally, the legislation standardizes the residency determination process for admission to the North Carolina School of Science and Mathematics and revises tuition grant rules for graduates of that school and the UNC School of the Arts. These changes aim to support university infrastructure development and ensure equitable access to specialized science and arts programs for North Carolina residents.
HB 87 (Educational Choice for Children Act) allows North Carolina to participate in a federal tax credit program that encourages donations to private scholarship organizations. The bill requires the State Education Assistance Authority to maintain and publish an annual list of qualifying scholarship groups operating in North Carolina, enabling donors to claim federal tax credits for contributions. These scholarships can cover elementary and secondary school costs, including homeschooling expenses, as permitted under federal law. The law becomes effective after 2026, with the Authority needing to establish necessary rules by July 2026 to comply with federal requirements.
