All Roll Calls
Yes: 303 • No: 3
North CarolinaHB 5062025-2026 SessionHouseWALLET
AN ACT TO ENACT THE 2025 STATE INVESTMENT MODERNIZATION ACT, AS RECOMMENDED BY THE STATE TREASURER.
Sponsored By: Dana Jones (Republican), Kyle Hall (Republican), Stephen M. Ross (Republican), Steve Tyson (Republican)
Signed by Governor
APPOINTMENTSAUTHORITIESCOMMITTEESCONFIDENTIALITYCOUNCIL OF STATEFUNDS & ACCOUNTSGENERAL ASSEMBLYGOVERNORHIGHWAY TRUST FUNDINVESTMENT ADVISORY COMM
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 1 benefits, 1 costs, 5 mixed.
Board, CIO, and pay rules set
A five‑member Board (with the State Treasurer) runs the Authority. Members serve staggered six‑year terms, meet at least quarterly, and the Treasurer breaks ties. The Board sets investment policy and a risk range, hires a CIO and a global custodian, and caps the internal budget at 0.03% of a rolling three‑year average of assets unless special circumstances apply. The CIO must have at least 15 years of investment success and serves terms of five years or less. Staff can receive market‑based pay and bonuses funded by the investment programs. Board members have civil immunity for official acts, with limits. The Board must adopt strong ethics and conflict‑of‑interest policies.
New state investment authority takes charge
The law creates the North Carolina Investment Authority to manage State investments. It operates mostly outside the State Budget Act and runs its own operations. The Authority can sue and be sued, own property, and enter contracts. Its property and income are exempt from State and local taxes. This centralizes how public funds, including pensions, are managed.
Centralized investing of state funds
The Authority now invests extra cash for the General Fund, Highway Fund, and many special funds. The State Treasurer must deposit listed funds with the Authority, which can pool or separate them and charge program costs to the funds. Starting January 1, 2026, the Treasurer stays custodian of certain retirement funds, payments need two Board‑designated signatures, and the secretary must carry a surety bond. Funds under the Authority are fiduciary and must follow prudent‑investor, financial‑factor standards. Starting July 1, 2025, these funds follow Article 6 accounting rules. Existing Treasurer rules as of December 31, 2025 stay in place until changed.
New venture capital fund with oversight
The Authority can create a Venture Capital Multiplier Fund. An SEC‑regulated firm, chosen through public procurement, will manage it. The fund invests specified Escheat Fund assets and pays its own manager and staff costs. The Authority must adopt an investment policy and conflict‑of‑interest rules. Most documents from the Governor or Treasurer about the fund are public records, with confidentiality where allowed by law.
Limits and liquidity rules for pensions
At least 20% of retirement assets must stay in higher‑quality categories named in law. Caps apply each year: public equity 65%, private equity 8.75%, certain real assets 7.5%, certain real‑estate strategies 10%, and total illiquid investments 40%. Starting January 1, 2026, the Board must monitor liquidity every quarter and certify illiquid allocations each year. The Board can pause new illiquid commitments if needed to meet benefit payments and obligations.
Tighter contracting and deal safeguards
The Authority can hire specialists like auditors, consultants, and IT firms directly. The CIO can negotiate and sign needed contracts; the Board must approve master custodian and external auditor contracts. Authority lawyers must review investment contracts for proper form and enforceability. Trade‑secret records tied to active deal talks stay confidential until the negotiation ends; records showing a conflict of duty remain public.
HR and background rules for staff
The Authority may require criminal background checks and fingerprints for people handling confidential health or financial data. Refusal can mean no job or dismissal. The CIO and certain investment staff are exempt from parts of the State Human Resources Act. This exemption applies to people hired on or after July 1, 2025.
Sponsors & Cosponsors
Sponsors
Dana Jones
Republican • Senate
Kyle Hall
Republican • House
Stephen M. Ross
Republican • House
Steve Tyson
Republican • House
Cosponsors
Todd Johnson
Republican • Senate
Jeffrey C. McNeely
Republican • House
Ray Pickett
Republican • House
Roll Call Votes
House vote • 6/3/2025
HB 506: 2025 State Investment Modernization Act.
Yes: 113 • No: 0 • Other: 6
Senate vote • 5/22/2025
HB 506: 2025 State Investment Modernization Act.-AB
Yes: 40 • No: 0 • Other: 10
Senate vote • 5/22/2025
HB 506: 2025 State Investment Modernization Act.-AB
Yes: 40 • No: 0 • Other: 10
House vote • 4/29/2025
HB 506: 2025 State Investment Modernization Act.
Yes: 110 • No: 3 • Other: 6
Actions Timeline
Ch. SL 2025-6
6/13/2025HouseSigned by Gov. 6/13/2025
6/13/2025HousePres. To Gov. 6/5/2025
6/5/2025HouseRatified
6/4/2025HouseOrdered Enrolled
6/3/2025HouseConcurred In S Com Sub
6/3/2025HousePlaced On Cal For 06/03/2025
6/2/2025HouseWithdrawn From Com
6/2/2025HouseRef To Com On Rules, Calendar, and Operations of the House
5/27/2025HouseRegular Message Received For Concurrence in S Com Sub
5/23/2025HouseRegular Message Sent To House
5/23/2025SenateEngrossed
5/22/2025SenatePassed 3rd Reading
5/22/2025SenatePassed 2nd Reading
5/22/2025SenateAmend Adopted A1
5/22/2025SenateReptd Fav
5/21/2025SenateRe-ref Com On Rules and Operations of the Senate
5/20/2025SenateCom Substitute Adopted
5/20/2025SenateReptd Fav Com Substitute
5/20/2025SenateRe-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate
5/19/2025SenateWithdrawn From Com
5/19/2025SenateRef To Com On Rules and Operations of the Senate
4/30/2025SenatePassed 1st Reading
4/30/2025SenateRegular Message Received From House
4/30/2025SenateRegular Message Sent To Senate
4/30/2025House
Bill Text
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Filed
Latest Edition
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