North CarolinaHB 5492025-2026 SessionHouseWALLET

AN ACT TO CLARIFY THE POWERS OF THE STATE AUDITOR AND TO MAKE OTHER CHANGES RELATED TO THE STATE AUDITOR.

Sponsored By: Dana Jones (Republican), Keith Kidwell (Republican), Mitchell S. Setzer (Republican), John A. Torbett (Republican)

Signed by Governor

AUDITING & AUDITSCOLLEGES & UNIVERSITIESCOUNCIL OF STATEEDUCATIONHIGHER EDUCATIONINFORMATION TECHNOLOGYINVESTIGATIONSPERSONNELPRESENTEDPUBLICPUBLIC OFFICIALSRATIFIEDSTATE AUDITORSTATE EMPLOYEESUNCVETOEDCHAPTEREDVETO OVERRIDDENGOVERNMENT EMPLOYEESINFORMATION TECHNOLOGY DEPT

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Stronger audits of publicly funded groups

Beginning July 29, 2025, the State Auditor must investigate reports of misuse, waste, fraud, law breaks, or serious dangers in state agencies and publicly funded groups. The Auditor can access people, records, databases, and facilities needed for audits and can ask a court to order access. Contracts and grants with public money must let the Auditor inspect records. Suspected crimes, ethics issues, or election-law issues go to the right enforcement office. Starting December 1, 2025, the Auditor may audit any publicly funded entity, but only the state or federal funds it handled. When fraud causes improper payments, the Auditor must send a written report to the Revenue Department and the State Purchasing Officer and may recommend debarment.

New fees on debt collections

Starting December 1, 2025, the Revenue Department keeps $5 per debt collected by setoff from a State tax refund. It charges 3% of the amount collected when it uses forced collection. For local debts sent through a clearinghouse, there is a $15 setoff fee. Child support debts do not pay these fees. Net money from forced collections goes to the State General Fund within 60 days.

New steps before forced collection

Beginning December 1, 2025, only debts found by a State Auditor audit or investigation are eligible for levy, attachment, garnishment, or other forced collection. The Auditor must mail you a notice with the debt basis, remedies, and your right to contest. You have 30 days to request a hearing. After the debt is finally decided and appeals are done, the Auditor sends the case and documents to the Revenue Department. The Department must then mail you a notice before using any forced remedy. That notice explains payment options and that a 3% fee is added if the State forces collection.

Auditor gains IT buying freedom

Beginning July 1, 2025, the Office of the State Auditor is exempt from that IT oversight Article and can buy technology under a separate state rule. The State Auditor can also choose in writing to use Department IT programs and contracts. On July 29, 2025, several older related provisions are repealed. These changes streamline how the Office gets technology and services.

Revenue Department can do non-tax work

Starting December 1, 2025, the Department of Revenue may perform non‑tax functions that the legislature assigns, in addition to tax collection and administration. This expands the Department’s duties. It does not by itself change your taxes or benefits.

Sponsors & Cosponsors

Cosponsors

Jay Adams
Republican • House
Todd Johnson
Republican • Senate
Jeffrey C. McNeely
Republican • House
Bill Ward
Republican • House
David Willis
Republican • House
Matthew Winslow
Republican • House