North CarolinaSB 4492025-2026 SessionSenateWALLET

AN ACT TO REQUIRE ALL PUBLIC SCHOOLS, COMMUNITY COLLEGES, AND CONSTITUENT INSTITUTIONS OF THE UNIVERSITY OF NORTH CAROLINA TO REQUIRE MINIMUM CONSIDERATIONS ON TECHNOLOGY COSTS AND PUBLIC SCHOOLS TO REPORT ON BREAK/FIX RATE.

Sponsored By: Kevin Corbin (Republican), Michael V. Lee (Republican), Brad Overcash (Republican)

Signed by Governor

ACCOUNTINGAGRICULTURAL WASTEAGRICULTUREAGRICULTURE DEPT

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Bill Overview

Analyzed Economic Effects

22 provisions identified: 15 benefits, 0 costs, 7 mixed.

NC Promise tuition changes by residency

Undergraduate tuition at four NC Promise schools is $500 per semester for North Carolina residents. Starting in the 2026–2027 year, new nonresident students pay $3,500 per semester. Nonresident students who were enrolled in 2025–2026 and stay continuously enrolled keep paying $2,500 per semester until they stop continuous enrollment.

Add $25 million to Pay Plan

Starting in 2025–2026, the state adds $25 million each year to the Pay Plan Reserve. This increases recurring funds available for future pay‑plan needs.

Upgrade state budget and HR systems

The state spends $20.85 million in 2025–2026 and $850,000 in 2026–2027 to replace and stabilize the IBIS budget system. It also funds Human Capital Management work: $1.18 million in 2025–2026 and $2.691 million in 2026–2027. Time‑limited positions funded here end no later than June 30, 2027.

Reclassify some COVID recovery funds

The budget office can reclassify unspent State Fiscal Recovery Fund balances labeled as revenue loss to support other eligible government services. Funds must have been properly obligated by December 31, 2024, and follow 31 C.F.R. Part 35 and Treasury guidance. The office must report actions by April 15, 2026.

Lower health fund costs for employers

For 2025–2026 only, the State Treasurer waives 2.4% of relevant salaries when figuring some employers’ State Health Plan contributions. This applies to specific local governments and charter schools named in the law. The waiver ends June 30, 2026 and never has to be repaid.

More funding for innovative high schools

Beginning in 2025–2026, the state gives yearly extra money to cooperative innovative high schools. Tier one schools get $275,000 each. The Northeast Regional School gets $310,000. Virtual cooperative high schools and tier two get $200,000, and tier three get $180,000 per school.

Small business loan rules change

Golden LEAF loans now allow interest‑only payments for up to 24 months. Loan terms cannot go past June 30, 2032, even after a restructure. Each business can borrow no more than $150,000 total under the program.

Hurricane Helene grants and loan relief

The state gives capital grants to local governments to fix Helene‑damaged infrastructure that FEMA will not reimburse. OSBM splits funds using FEMA damage per person. Cashflow loan repayments are delayed until the latest of June 30, 2030, final FEMA denial, or FEMA payment. Older loan terms must be renegotiated on request to match the new delay. If a county borrows for an unincorporated area, it must spend those funds only in that area.

Legislative security and operations funding

Starting in 2025–2026, the General Assembly receives $2.5 million each year for operations and the General Assembly Special Police. The law also clarifies what Special Police can do when protecting legislators in response to threats.

State Fair receipts for fairground repairs

The Agriculture Department may use up to $7.5 million from State Fair receipts for repair and renovation at the State Fairgrounds. Spending is limited to available receipts and the $7.5 million cap.

Who is exempt from state IT

The law confirms that certain entities, like the General Assembly, courts, UNC institutions, the State Auditor, Elections, Highway Patrol, and the Treasurer, are not required to use the statewide IT programs and contracts. Each may choose to participate voluntarily.

Insurance trade rules start in 2027

Subsections (a)–(c) of the insurance trade practice rules take effect January 1, 2027. They apply to insurance contracts issued, renewed, or changed on or after that date. The rest of the section is effective when the law takes effect and applies from that date.

Ferry maintenance funds and reporting

For 2025–2026, the Ferry Division gets $4 million for required dry docking and $3 million for vessel maintenance and operations. Starting January 1, 2026, the Division must file quarterly dry‑docking reports until the funds are fully used. Reports list vessels, estimated and actual costs, and total funds used.

Funding for public‑safety radios and gear

Starting in 2025–2026, the state pays $2.1 million each year to run the VIPER public‑safety radio network. It also provides a one‑time $2 million in 2025–2026 for SBI radios and other needed equipment. The State Fire Marshal gets $300,000 each year starting in 2025–2026 to fund three administrative positions.

More support for courts and prosecutors

The courts receive a one‑time $7.2 million in 2025–2026 for technology upgrades. Beginning in 2025–2026, $600,000 each year goes to hire additional special assistant U.S. attorneys.

More time and flexibility for local grants

Granite Falls keeps its fire station grant available through June 30, 2027. Asheboro can use leftover grant money for the Trade Street Infrastructure Project if the funds are unspent and not encumbered.

Rebuild hurricane‑damaged broadband lines

The state gives MCNC a one‑time $12 million federal‑funded grant to rebuild fiber networks damaged by Hurricane Helene. Projects must finish and close out by December 31, 2026. The IT Department must consult the Pandemic Recovery Office to ensure only eligible federal funds are used and rules are followed.

Easier tree removal on private lots

In affected disaster areas, local governments cannot enforce tree rules on private property more than 10 feet from a property line. They can still act to protect life or property, fix imminent threats, in protected areas, or if State or federal law requires it.

Some MEWA health plans exempt

If you have a health plan from a licensed multiple‑employer welfare arrangement (MEWA), that plan is exempt from two specified state subsections. This changes which protections and rules apply to your plan.

More prosecutors, new fingerprinting options

District attorney offices can assign up to 12 assistant district attorneys, up from six. The SBI can use approved vendors for fingerprinting and criminal record checks, and vendors may charge a fee. The law also repeals a named subsection from S.L. 2025‑2.

Move agencies and sell Raleigh property

Administration must pick a new site for the Division of Employment Security by April 1, 2026 and move staff by April 1, 2027. It must sell 304 N. Dawson Street at fair market value and send an appraisal to oversight by January 1, 2026. The State Records Center must be planned for consolidation and relocation within 18 months, with a plan due by June 1, 2026.

Pension data to cloud; banking charges

The Retirement Systems Division can use up to $1.022 million yearly, plus a one‑time $1.26 million in 2025–2026, from retirement assets to move data to the cloud. The Treasurer’s office can also charge funds and programs that use State banking for system upgrades: up to $3 million yearly starting 2025–2026, plus up to $4.3 million one‑time in 2025–2026.

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Sponsors & Cosponsors

Sponsors

  • Kevin Corbin

    Republican • Senate

  • Michael V. Lee

    Republican • Senate

  • Brad Overcash

    Republican • Senate

Cosponsors

  • Dana Jones

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 274 • No: 86

House vote 10/21/2025

SB 449: Continuing Budget Operations Part IV.

Yes: 104 • No: 6 • Other: 6

Senate vote 10/21/2025

SB 449: Continuing Budget Operations Part IV.

Yes: 46 • No: 0 • Other: 4

Senate vote 6/24/2025

SB 449: Fiscal Responsibility and K-20 Technology Planning/Central Office Salary.

Yes: 1 • No: 44 • Other: 5

House vote 6/17/2025

SB 449: Fiscal Responsibility and K-20 Technology Planning/Central Office Salary.

Yes: 76 • No: 36 • Other: 7

Senate vote 4/15/2025

SB 449: Fiscal Responsibility and K-20 Tech Planning.

Yes: 47 • No: 0 • Other: 3

Actions Timeline

  1. Ch. SL 2025-97

    10/23/2025Senate
  2. Signed by Gov. 10/22/2025

    10/22/2025Senate
  3. Pres. To Gov. 10/22/2025

    10/22/2025Senate
  4. Ratified

    10/22/2025Senate
  5. Ordered Enrolled

    10/21/2025Senate
  6. Conf Report Adopted

    10/21/2025House
  7. Added to Calendar

    10/21/2025House
  8. Withdrawn From Com

    10/21/2025House
  9. Re-ref Com On Rules, Calendar, and Operations of the House

    10/21/2025House
  10. Conf Report Adopted

    10/21/2025Senate
  11. Conf Com Reported

    10/21/2025House
  12. Placed on Today's Calendar

    10/21/2025Senate
  13. Conf Com Reported

    10/21/2025Senate
  14. Conferees Reappointed

    10/21/2025House
  15. Conf Com Dismissed

    10/21/2025House
  16. Conferees Reappointed

    10/20/2025House
  17. Conf Com Dismissed

    10/20/2025House
  18. Conf Com Appointed

    6/24/2025House
  19. Conf Com Appointed

    6/24/2025Senate
  20. Failed Concur In H Com Sub

    6/24/2025Senate
  21. Placed on Today's Calendar

    6/24/2025Senate
  22. Withdrawn From Com

    6/24/2025Senate
  23. Ref To Com On Rules and Operations of the Senate

    6/18/2025Senate
  24. Special Message Received For Concurrence in H Com Sub

    6/18/2025Senate
  25. Special Message Sent To Senate

    6/18/2025House

Bill Text

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