GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 361 Short Title: Funds to Fight Deed and Title Fraud. (Public) Sponsors: Representatives Reives, Winslow, Schietzelt, and Liu (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House March 12, 2025 *H361 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO APPROPRIATE FUNDS FOR TRAINING AND TECHNOLOGY UPGR ADES 2 TO PREVENT AND DETER DEED AND TITLE FRAUD. 3 The General Assembly of North Carolina enacts: 4 SECTION 1. Notwithstanding G.S. 143C-5-2, there is appropriated from the 5 General Fund to the Department of the Secretary of State the sum of one million eight hundred 6 thousand dollars ($1,800,000) in nonrecurring funds for the 2025-2026 fiscal year to be used in 7 collaboration with the North Carolina Association of Registers of Deeds to provide antifraud 8 training for employees of county register of deeds offices. The Department of the Secretary of 9 State, in conjunction with the North Carolina Association of Registers of Deeds, may use an 10 amount not exceeding ten percent (10%) of the funds appropriated in this section for 11 administrative costs. 12 SECTION 2. Notwithstanding G.S. 143C-5-2, there is appropriated from the 13 General Fund to the Department of Justice the sum of five hundred thousand dollars ($500,000) 14 in nonrecurring funds for the 2025-2026 fiscal year to be used to create and launch a statewide 15 public awareness campaign on fraud relating to real property. 16 SECTION 3. Notwithstanding G.S. 143C-5-2, there is appropriated from the 17 General Fund to the Department of Information Technology the sum of thirty million dollars 18 ($30,000,000) in nonrecurring funds for the 2025-2026 fiscal year to be used to provide 19 need-based grants to the county register of deeds offices, said grants to be used in accordance 20 with this section. The Department of Information Technology may award grants to the county 21 register of deeds offices for a total amount not exceeding forty percent (40%) of the funds 22 appropriated in this section to be used by the county register of deeds offices to purchase scanning 23 equipment and provide for the digitization and storing of records kept by that office, including, 24 but not limited to, identification cards, passports, and other forms of identification. The 25 Department of Information Technology may award grants to the county register of deeds offices 26 for a total amount not exceeding fifteen percent (15%) of the funds appropriated in this section 27 to be used by the county register of deeds offices for the purchase of software upgrades. The 28 Department of Information Technology may award grants to the county register of deeds offices 29 for a total amount not exceeding ten percent (10%) of the funds appropriated in this section to be 30 used by the county register of deeds offices to procure cloud storage and backup. The Department 31 of Information Technology may award grants to the county register of deeds offices for a total 32 amount not exceeding ten percent (10%) of the funds appropriated in this section to be used by 33 the county register of deeds offices for the purpose of enhancing the digital security of those 34 offices. The Department of Information Technology may award grants to the county register of 35 General Assembly Of North Carolina Session 2025 Page 2 House Bill 361-First Edition deeds offices for a total amount not exceeding eight percent (8%) of the funds appropriated in 1 this section to be used by the county register of deeds offices for the purpose of training staff. 2 The Department of Information Technology may award grants to the county register of deeds 3 offices for a total amount not exceeding fifteen percent (15%) of the funds appropriated in this 4 section to be used by the county register of deeds offices for network and hardware 5 improvements, including network improvements that would allow for better communication or 6 integration with the networks and systems maintained by the Secretary of State's Office and 7 municipal tax offices. The Department of Information Technology may use an amount not 8 exceeding two percent (2%) of the funds appropriated in this section for administrative costs. 9 The Department of Information Technology shall develop criteria and an application process for 10 the grants funded by this section. 11 SECTION 4. Notwithstanding G.S. 143C-5-2, there is appropriated from the 12 General Fund to the Department of Information Technology the sum of one million dollars 13 ($1,000,000) in nonrecurring funds for the 2025-2026 fiscal year to be used to provide 14 need-based grants to county register of deeds offices that do not have a fraud detection alert 15 system in place as of the effective date of this section. The Department of Information 16 Technology shall develop a process by which county register of deeds offices may apply for the 17 grants funded by this section. 18 SECTION 5. This act becomes effective July 1, 2025. 19