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North Carolina House Bill H481

North Carolina 2025-2026 Regular Session

North Carolina House Bill H481 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 2
3+H 1
44 HOUSE BILL 481
5-Committee Substitute Favorable 4/1/25
5+
66
77 Short Title: GSC Technical Corrections 2025 Part 2. (Public)
8-Sponsors:
9-Referred to:
8+Sponsors: Representative Davis.
9+For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10+Referred to: Judiciary 1, if favorable, Rules, Calendar, and Operations of the House
1011 March 25, 2025
11-*H481 -v-2*
12+*H481 -v-1*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT TO MAKE TECHN ICAL CORRECTIONS TO THE GENERAL STATUTES AND 2
1415 SESSION LAWS, AS REC OMMENDED BY THE GENE RAL STATUTES 3
1516 COMMISSION. 4
1617 The General Assembly of North Carolina enacts: 5
1718 SECTION 1. Subject to the grammatical rules and general drafting conventions of 6
1819 capitalization, the Revisor of Statutes shall make the following changes: 7
1920 (1) Subject to subdivision (2) of this section, replace "e-mail", "electronic mail", 8
2021 or "electronic mailing" with "email" in G.S. 1-75.4, 1-507.34, 1-539.2A, 9
2122 1A-1, Rule 4, 1A-1, Rule 5, and any other statutes in which any of these terms 10
2223 appear. The Revisor of Statutes shall make a similar change when any of these 11
2324 terms is plural. 12
2425 (2) Replace "registered, certified, or electronic mail" with "registered mail, 13
2526 certified mail, or email" in G.S. 143-293. 14
2627 (3) Subject to subdivisions (4) and (5) of this section, make "Internet" lowercase 15
2728 in G.S. 14-113.20, 14-113.30, 14-113.31, 14-118.7, 14-196.3, and any other 16
2829 statutes in which the term appears. 17
2930 (4) Replace "Internet protocol" with "Internet Protocol" in G.S. 105-164.3, 18
3031 130A-480, and 143B-1400. 19
3132 (5) Replace "internet web site", "internet website", "internet site", or "web site", 20
3233 including any variation in capitalization of any of these terms, with "website" 21
3334 in G.S. 7A-38.2, 7A-38.3F, 10B-36, 14-44.1, 14-202.5, and any other statutes 22
3435 in which any of these terms appear. The Revisor of Statutes shall make a 23
3536 similar change when any of these terms is plural. 24
3637 (6) Replace "rule making" or "rule-making" with "rulemaking" in G.S. 7B-4001, 25
3738 10B-126, 15C-12, 18B-105, 20-37.22, and any other statutes in which either 26
3839 of these terms appear. 27
3940 The Revisor of Statutes may delete duplicative language resulting from these changes 28
4041 and may replace "an" with "a" to conform with these changes. 29
4142 SECTION 2. G.S. 14-288.9 reads as rewritten: 30
4243 "§ 14-288.9. Assault on upon emergency personnel; punishments. 31
4344 (a) An assault upon emergency personnel is an assault upon any person coming included 32
4445 within the definition of "emergency personnel" which in subsection (b) of this section that is 33
4546 committed in an area:area in which either of the following applies: 34
4647 (1) In which a A declared state of emergency exists; orexists. 35 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 481-Second Edition
48+Page 2 House Bill 481-First Edition
4849 (2) Within the immediate vicinity of which vicinity, a riot is occurring or is 1
4950 imminent. 2
5051 (b) The In this section, the term "emergency personnel" includes law-enforcement 3
5152 officers, firemen, firefighters, ambulance attendants, utility workers, doctors, nurses, members 4
5253 of the North Carolina National Guard, and other persons lawfully engaged in providing essential 5
5354 services or otherwise discharging or attempting to discharge his or her their official duties during 6
5455 the an emergency. 7
5556 (c) Any A person who commits an assault upon emergency personnel is guilty of a Class 8
5657 H felony. 9
5758 (d) Any A person who commits an assault upon emergency personnel with or through the 10
5859 use of any a dangerous weapon or substance shall be punished as a Class F felon.is guilty of a 11
5960 Class F felony. 12
6061 (e) Any A person who commits an assault upon emergency personnel causing serious 13
6162 bodily injury to the emergency personnel is guilty of a Class E felony. 14
6263 (f) Any A person who commits an assault upon emergency personnel causing death to 15
6364 the emergency personnel is guilty of a Class D felony." 16
6465 SECTION 3.(a) G.S. 15A-145.5 reads as rewritten: 17
6566 "§ 15A-145.5. Expunction of certain misdemeanors and felonies; no age limitation. 18
6667 (a) For purposes of this section, the term "nonviolent misdemeanor" or "nonviolent 19
6768 felony" means any misdemeanor or felony except the following: 20
6869 … 21
6970 (4) Any of the following sex-related or stalking offenses: G.S. 14-27.25(b), 22
7071 14-27.30(b), 14-190.7, 14-190.8, 14-190.9, 14-202, 14-208.11A, 14-208.18, 23
7172 former 14-277.3, 14-277.3A, and 14-321.1. 24
7273 (5) Any felony offense in Chapter 90 of the General Statutes where the offense 25
7374 involves that involves methamphetamines, heroin, or possession with intent 26
7475 to sell or deliver or sell and deliver cocaine. 27
7576 (6) An offense under G.S. 14-12.12(b), 14-12.13, or 14-12.14, or any offense for 28
7677 which punishment was determined pursuant to G.S. 14-3(c).G.S. 14-3(c) was 29
7778 applied. 30
7879 … 31
7980 (c) A person may file a petition, petition in the court of the county where the person was 32
8081 convicted. [The following applies:]The following provisions apply: 33
8182 (1) For expunction of one or more nonviolent misdemeanor convictions, the 34
8283 petition shall not be filed earlier than one of the following:the following, as 35
8384 applicable: 36
8485 … 37
8586 (2) For expunction of up to three nonviolent felony convictions, the petition shall 38
8687 not be filed earlier than one of the following:the following, as applicable: 39
8788 a. For expunction of one nonviolent felony not subject to the waiting 40
8889 period set forth in sub-subdivision a1. of this subdivision, 10 years 41
8990 after the date of the conviction or 10 years after any active sentence, 42
9091 period of probation, or post-release supervision, supervision related to 43
9192 the conviction listed in the petition, has been served, whichever occurs 44
9293 later. 45
9394 a1. For expunction of one nonviolent felony under G.S. 14-54(a), 15 years 46
9495 after the date of the conviction or 15 years after any active sentence, 47
9596 period of probation, or post-release supervision, supervision related to 48
9697 the conviction listed in the petition, has been served, whichever occurs 49
9798 later. 50 General Assembly Of North Carolina Session 2025
98-House Bill 481-Second Edition Page 3
99+House Bill 481-First Edition Page 3
99100 b. For expunction of two or three nonviolent felonies, 20 years after the 1
100101 date of the most recent conviction listed in the petition, or 20 years 2
101102 after any active sentence, period of probation, or post-release 3
102103 supervision, supervision related to a conviction listed in the petition, 4
103104 petition has been served, whichever occurs later. 5
104105 A person previously granted an expunction under this section is not eligible for relief under 6
105106 this section for any offense committed after the date of the previous order for expunction. Except 7
106107 as provided in subsections (c4) and (c5) of this section, a person previously granted an expunction 8
107108 under this section for one or more misdemeanors is not eligible for expunction of additional 9
108109 misdemeanors under this section section, and a person previously granted an expunction under 10
109110 this section for one or more felonies is not eligible for expunction of additional felonies under 11
110111 this section. 12
111112 (c1) A petition filed pursuant to this section shall contain, but not be limited to, the 13
112113 following: 14
113114 (1) An affidavit by the petitioner that the petitioner is of good moral character and 15
114115 one of the following statements:statements, as applicable: 16
115116 … 17
116117 (2) Verified affidavits Affidavits of two persons who are not related to the 18
117118 petitioner or to each other by blood or marriage, that they know the character 19
118119 and reputation of the petitioner in the community in which the petitioner lives 20
119120 and that the petitioner's character and reputation are good. 21
120121 (3) A statement that the petition is a motion in the cause in the case wherein in 22
121122 which the petitioner was convicted. 23
122123 (4) An application on a form approved by the Administrative Office of the Courts 24
123124 requesting and authorizing a all of the following: 25
124125 a. A name-based State and national criminal history record check by the 26
125126 State Bureau of Investigation using any information required by the 27
126127 Administrative Office of the Courts to identify the individual, a 28
127128 individual. 29
128129 b. A search by the State Bureau of Investigation for any outstanding 30
129130 warrants on or pending criminal cases, and a cases. 31
130131 c. A search of the confidential record of expunctions maintained by the 32
131132 Administrative Office of the Courts. 33
132133 The application shall be filed with the clerk of superior court. The court, who 34
133134 clerk of superior court shall forward the application it to the State Bureau of 35
134135 Investigation and to the Administrative Office of the Courts, which shall 36
135136 Courts to conduct the searches and report their findings to the court. 37
136137 … 38
137138 Upon filing of the petition, the petition shall be served upon the district attorney of the court 39
138139 wherein in which the case was tried resulting in conviction. The district attorney shall then have 40
139140 30 days thereafter in which to file any an objection thereto and shall be duly notified as to the 41
140141 date of the hearing of the petition. Upon good cause shown, the court may grant the district 42
141142 attorney an additional 30 days to file an objection to the petition. The district attorney shall make 43
142143 his or her best efforts to contact the victim, if any, to notify the victim of the request for 44
143144 expunction prior to the date of the hearing. Upon request by the victim, the victim has a right to 45
144145 be present at any hearing on the petition for expunction expunction, and the victim's views and 46
145146 concerns shall be considered by the court at such the hearing. 47
146147 The presiding judge is authorized to may call upon a probation officer for any additional 48
147148 investigation or verification of the petitioner's conduct since the conviction. The court shall 49
148149 review any other information the court deems relevant, including, but not limited to, affidavits 50 General Assembly Of North Carolina Session 2025
149-Page 4 House Bill 481-Second Edition
150+Page 4 House Bill 481-First Edition
150151 or other testimony provided by law enforcement officers, district attorneys, and victims of crimes 1
151152 committed by the petitioner. 2
152153 (c2) The court, after hearing a petition for expunction of one or more nonviolent 3
153154 misdemeanors, shall order that the petitioner be restored, in the contemplation of the law, to the 4
154155 status the petitioner occupied before the arrest or indictment arrest, indictment, or information, 5
155156 except as provided in G.S. 15A-151.5, if the court finds all of the following: 6
156157 … 7
157158 (3) The petitioner has no outstanding warrants or pending criminal cases, is not 8
158159 under indictment, and no finding of probable cause exists against the 9
159160 defendant petitioner for a felony, felony in any federal court or state court in 10
160161 the United States. 11
161162 (3a) The petitioner is not free on bond or personal recognizance pending trial, 12
162163 appeal, or sentencing in any federal court or state court in the United States 13
163164 for a crime which that would prohibit the person from having his or her the 14
164165 petition for expunction under this section granted. 15
165166 … 16
166167 (6) The petitioner has no convictions for a misdemeanor or felony conviction that 17
167168 is listed as an exception to the terms "nonviolent misdemeanor" or "nonviolent 18
168169 felony" as provided in subsection (a) of this section. 19
169170 … 20
170171 (c3) The court, after hearing a petition for expunction of one or up to three nonviolent 21
171172 felonies, may order that the petitioner be restored, in the contemplation of the law, to the status 22
172173 the petitioner occupied before the arrest or indictment arrest, indictment, or information, except 23
173174 as provided in G.S. 15A-151.5, if the court finds all of the following: 24
174175 … 25
175176 (3) The petitioner has no outstanding warrants or pending criminal cases, is not 26
176177 under indictment, and no finding of probable cause exists against the 27
177178 defendant petitioner for a felony, felony in any federal court or state court in 28
178179 the United States. 29
179180 (3a) The petitioner is not free on bond or personal recognizance pending trial, 30
180181 appeal, or sentencing in any federal court or state court in the United States 31
181182 for a crime which that would prohibit the person from having his or her 32
182183 petition for expunction under this section granted. 33
183184 … 34
184-(5) The petitioner has no outstanding restitution orders or civil judgments 35
185-representing amounts ordered for restitution entered against the petitioner. 36
186-(6) The petitioner has no convictions for a misdemeanor conviction that is listed 37
187-as an exception to the term "nonviolent misdemeanor" as provided in 38
188-subsection (a) of this section or any other felony offense.conviction. 39
189-… 40
190-(c4) A person petitioning who petitions for expunction of multiple convictions pursuant to 41
191-sub-subdivision b. of subdivision (1) of subsection (c) of this section or sub-subdivision b. of 42
192-subdivision (2) of subsection (c) of this section, where the section and whose convictions were 43
193-obtained in more than one county, county shall file a petition in each county of conviction. All 44
194-petitions shall be filed within a 120-day period. period, except that the court may grant a petition 45
195-for expunction filed outside this period if good cause is shown for the failure to file the petition 46
196-within this period. The granting of one petition shall not preclude the granting of any other 47
197-petition filed within the same 120-day period. Notwithstanding the provisions of this subsection, 48
198-upon good cause shown for the failure to file a petition within the 120-day period, the court may 49
199-grant a petition for expunction filed outside the 120-day period. 50
200-… 51 General Assembly Of North Carolina Session 2025
201-House Bill 481-Second Edition Page 5
202-(d) No person as to whom an order has been entered pursuant to subsection (c) of this 1
203-section shall be held thereafter under any provision of any law to be guilty of perjury or otherwise 2
204-giving a false statement by reason of that person's failure to recite or acknowledge the arrest, 3
205-indictment, information, trial, or conviction. This subsection shall The effect of an expunction 4
206-under this section is governed by G.S. 15A-153, except that the protected nondisclosure under 5
207-G.S. 15A-153(b) does not apply to a sentencing hearing when the person has been convicted of 6
208-a subsequent criminal offense. 7
209-(d1) Persons pursuing certification under the provisions of Article 1 of Chapter 17C or 8
210-Article 2 of Chapter 17E of the General Statutes, however, shall disclose any and all convictions 9
211-to the certifying Commission, regardless of whether or not the convictions were expunged 10
212-pursuant to the provisions of this section. 11
213-(d2) Persons requesting that a disclosure statement be prepared by the North Carolina 12
214-Sheriffs' Education and Training Standards Commission pursuant to Article 3 of Chapter 17E of 13
215-the General Statutes, however, shall disclose any and all felony convictions to the North Carolina 14
216-Sheriffs' Education and Training Standards Commission regardless of whether or not the felony 15
217-convictions were expunged pursuant to the provisions of this section. 16
218-(d3) Persons required by State law to obtain a criminal history record check on a 17
219-prospective employee shall are not be deemed to have knowledge of any convictions expunged 18
220-under this section. 19
221-(e) The If the petition is granted, the court shall also order that the conviction or 20
222-convictions be expunged from the records of the court and direct all law enforcement agencies 21
223-bearing record of the same conviction to expunge their records of the conviction. The clerk shall 22
224-notify State and local agencies of the court's order, as provided in G.S. 15A-150. 23
225-(f) Any other applicable State or local government agency shall expunge from its records 24
226-entries made as a result of the conviction or convictions ordered expunged under this section 25
227-upon receipt from the petitioner of an order entered pursuant to this section. The An agency shall 26
228-also vacate any administrative actions taken against a person whose record is expunged under 27
229-this section as a result of the charges or convictions expunged. A person whose administrative 28
230-action has been vacated by an occupational licensing board pursuant to an expunction under this 29
231-section may then reapply for licensure and must shall satisfy the board's then current education 30
232-and preliminary licensing requirements at the time of reapplication in order to obtain licensure. 31
233-This subsection shall does not apply to the Department of Justice for DNA records and samples 32
234-stored in the State DNA Database and the State DNA Databank. 33
235-(g) A person who files a petition for expunction of a criminal record under this section 34
236-must shall pay the clerk of superior court a fee of one hundred seventy-five dollars ($175.00) at 35
237-the time the petition is filed. Fees collected under this subsection shall be deposited in the General 36
238-Fund. This subsection does not apply to petitions filed by an indigent.indigent person." 37
239-SECTION 3.(b) G.S. 15A-145 reads as rewritten: 38
240-"§ 15A-145. Expunction of records for misdemeanors of first offenders under the age of 18 39
241-at the time of conviction of misdemeanor; expunction of certain other 40
242-misdemeanors.and of underage persons possessing alcohol. 41
243-(a) Whenever any person who has not previously been convicted of any felony, or 42
244-misdemeanor other than a traffic violation, under the laws of the United States, the laws of this 43
245-State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic 44
246-violation, and the offense was committed before the person attained the age of 18 years, or (ii) 45
247-pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to 46
248-G.S. 18B-302(b)(1), and the offense was committed before the person attained the age of 21 47
249-years, he may file a petition in the court of the county where he was convicted for expunction of 48
250-the misdemeanor from his criminal record. The petition cannot be filed earlier than: (i) two years 49
251-after the date of the conviction, or (ii) the completion of any period of probation, whichever 50
252-occurs later, and the petition shall contain, but not be limited to, the following: 51 General Assembly Of North Carolina Session 2025
253-Page 6 House Bill 481-Second Edition
254-… 1
255-(2) Verified affidavits Affidavits of two persons who are not related to the 2
256-petitioner or to each other by blood or marriage, that they know the character 3
257-and reputation of the petitioner in the community in which he the petitioner 4
258-lives and that his the petitioner's character and reputation are good. 5
259-… 6
260-(b1) No person as to whom such order has been entered shall be held thereafter under any 7
261-provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 8
262-his failure to recite or acknowledge such arrest, or indictment, information, or trial, or response 9
263-to any inquiry made of him for any purpose. This subsection shall The effect of an expunction 10
264-under this section is governed by G.S. 15A-153, except that the protected nondisclosure under 11
265-G.S. 15A-153(b) does not apply to a sentencing hearing when the person has been convicted of 12
266-a subsequent criminal offense. 13
267-…." 14
268-SECTION 3.(c) G.S. 15A-145.1 reads as rewritten: 15
269-"§ 15A-145.1. Expunction of records for first offenders under the age of 18 at the time of 16
270-conviction commission of certain gang offenses. 17
271-(a) Whenever any person who has not previously been convicted of any felony or 18
272-misdemeanor other than a traffic violation under the laws of the United States or the laws of this 19
273-State or any other state pleads guilty to or is guilty of (i) a Class H felony under Article 13A of 20
274-Chapter 14 of the General Statutes or (ii) an enhanced offense under G.S. 14-50.22, or has been 21
275-discharged and had the proceedings against the person dismissed pursuant to G.S. 14-50.29, and 22
276-the offense was committed before the person attained the age of 18 years, the person may file a 23
277-petition in the court of the county where the person was convicted for expunction of the offense 24
278-from the person's criminal record. Except as provided in G.S. 14-50.29 upon discharge and 25
279-dismissal, the petition cannot be filed earlier than (i) two years after the date of the conviction or 26
280-(ii) the completion of any period of probation, whichever occurs later. The petition shall contain, 27
281-but not be limited to, the following: 28
185+(4a) If the petition is for the expunction of two or three felonies, or if the petitioner 35
186+has filed petitions in more than one county pursuant to subsection (c4) of this 36
187+section, the petitioner has no misdemeanor convictions convictions, other than 37
188+a traffic violation not listed in the petition petition, for expunction in the five 38
189+years preceding the petition, and no other felony convictions during the 39
190+applicable waiting period set forth in subsection (c) of this section. 40
191+… 41
192+(5) The petitioner has no outstanding restitution orders or civil judgments 42
193+representing amounts ordered for restitution entered against the petitioner. 43
194+(6) The petitioner has no convictions for a misdemeanor conviction that is listed 44
195+as an exception to the term "nonviolent misdemeanor" as provided in 45
196+subsection (a) of this section or any other felony offense. 46
197+… 47
198+(c4) A person petitioning who petitions for expunction of multiple convictions pursuant to 48
199+sub-subdivision b. of subdivision (1) of subsection (c) of this section or sub-subdivision b. of 49
200+subdivision (2) of subsection (c) of this section, where the section and whose convictions were 50
201+obtained in more than one county, county shall file a petition in each county of conviction. All 51 General Assembly Of North Carolina Session 2025
202+House Bill 481-First Edition Page 5
203+petitions shall be filed within a 120-day period. period, except that the court may grant a petition 1
204+for expunction filed outside this period if good cause is shown for the failure to file the petition 2
205+within this period. The granting of one petition shall not preclude the granting of any other 3
206+petition filed within the same 120-day period. Notwithstanding the provisions of this subsection, 4
207+upon good cause shown for the failure to file a petition within the 120-day period, the court may 5
208+grant a petition for expunction filed outside the 120-day period. 6
209+… 7
210+(d) No person as to whom an order has been entered pursuant to subsection (c) of this 8
211+section shall be held thereafter under any provision of any law to be guilty of perjury or otherwise 9
212+giving a false statement by reason of that person's failure to recite or acknowledge the arrest, 10
213+indictment, information, trial, or conviction. This subsection shall The effect of an expunction 11
214+under this section is governed by G.S. 15A-153, except that the protected nondisclosure under 12
215+G.S. 15A-153(b) does not apply to a sentencing hearing when the person has been convicted of 13
216+a subsequent criminal offense. 14
217+(d1) Persons pursuing certification under the provisions of Article 1 of Chapter 17C or 15
218+Article 2 of Chapter 17E of the General Statutes, however, shall disclose any and all convictions 16
219+to the certifying Commission, regardless of whether or not the convictions were expunged 17
220+pursuant to the provisions of this section. 18
221+(d2) Persons requesting that a disclosure statement be prepared by the North Carolina 19
222+Sheriffs' Education and Training Standards Commission pursuant to Article 3 of Chapter 17E of 20
223+the General Statutes, however, shall disclose any and all felony convictions to the North Carolina 21
224+Sheriffs' Education and Training Standards Commission regardless of whether or not the felony 22
225+convictions were expunged pursuant to the provisions of this section. 23
226+(d3) Persons required by State law to obtain a criminal history record check on a 24
227+prospective employee shall are not be deemed to have knowledge of any convictions expunged 25
228+under this section. 26
229+(e) The court shall also order that the conviction or convictions be expunged from the 27
230+records of the court and direct all law enforcement agencies bearing record of the same conviction 28
231+to expunge their records of the conviction. The clerk shall notify State and local agencies of the 29
232+court's order, as provided in G.S. 15A-150. 30
233+(f) Any other applicable State or local government agency shall expunge from its records 31
234+entries made as a result of the conviction or convictions ordered expunged under this section 32
235+upon receipt from the petitioner of an order entered pursuant to this section. The An agency shall 33
236+also vacate any administrative actions taken against a person whose record is expunged under 34
237+this section as a result of the charges or convictions expunged. A person whose administrative 35
238+action has been vacated by an occupational licensing board pursuant to an expunction under this 36
239+section may then reapply for licensure and must shall satisfy the board's then current education 37
240+and preliminary licensing requirements at the time of reapplication in order to obtain licensure. 38
241+This subsection shall does not apply to the Department of Justice for DNA records and samples 39
242+stored in the State DNA Database and the State DNA Databank. 40
243+(g) A person who files a petition for expunction of a criminal record under this section 41
244+must shall pay the clerk of superior court a fee of one hundred seventy-five dollars ($175.00) at 42
245+the time the petition is filed. Fees collected under this subsection shall be deposited in the General 43
246+Fund. This subsection does not apply to petitions filed by an indigent.indigent person." 44
247+SECTION 3.(b) G.S. 15A-145 reads as rewritten: 45
248+"§ 15A-145. Expunction of records for misdemeanors of first offenders under the age of 18 46
249+at the time of conviction of misdemeanor; expunction of certain other 47
250+misdemeanors.and of underage persons possessing alcohol. 48
251+(a) Whenever any person who has not previously been convicted of any felony, or 49
252+misdemeanor other than a traffic violation, under the laws of the United States, the laws of this 50
253+State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic 51 General Assembly Of North Carolina Session 2025
254+Page 6 House Bill 481-First Edition
255+violation, and the offense was committed before the person attained the age of 18 years, or (ii) 1
256+pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to 2
257+G.S. 18B-302(b)(1), and the offense was committed before the person attained the age of 21 3
258+years, he may file a petition in the court of the county where he was convicted for expunction of 4
259+the misdemeanor from his criminal record. The petition cannot be filed earlier than: (i) two years 5
260+after the date of the conviction, or (ii) the completion of any period of probation, whichever 6
261+occurs later, and the petition shall contain, but not be limited to, the following: 7
262+… 8
263+(2) Verified affidavits Affidavits of two persons who are not related to the 9
264+petitioner or to each other by blood or marriage, that they know the character 10
265+and reputation of the petitioner in the community in which he the petitioner 11
266+lives and that his the petitioner's character and reputation are good. 12
267+… 13
268+(b1) No person as to whom such order has been entered shall be held thereafter under any 14
269+provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 15
270+his failure to recite or acknowledge such arrest, or indictment, information, or trial, or response 16
271+to any inquiry made of him for any purpose. This subsection shall The effect of an expunction 17
272+under this section is governed by G.S. 15A-153, except that the protected nondisclosure under 18
273+G.S. 15A-153(b) does not apply to a sentencing hearing when the person has been convicted of 19
274+a subsequent criminal offense. 20
275+…." 21
276+SECTION 3.(c) G.S. 15A-145.1 reads as rewritten: 22
277+"§ 15A-145.1. Expunction of records for first offenders under the age of 18 at the time of 23
278+conviction commission of certain gang offenses. 24
279+(a) Whenever any person who has not previously been convicted of any felony or 25
280+misdemeanor other than a traffic violation under the laws of the United States or the laws of this 26
281+State or any other state pleads guilty to or is guilty of (i) a Class H felony under Article 13A of 27
282+Chapter 14 of the General Statutes or (ii) an enhanced offense under G.S. 14-50.22, or has been 28
283+discharged and had the proceedings against the person dismissed pursuant to G.S. 14-50.29, and 29
284+the offense was committed before the person attained the age of 18 years, the person may file a 30
285+petition in the court of the county where the person was convicted for expunction of the offense 31
286+from the person's criminal record. Except as provided in G.S. 14-50.29 upon discharge and 32
287+dismissal, the petition cannot be filed earlier than (i) two years after the date of the conviction or 33
288+(ii) the completion of any period of probation, whichever occurs later. The petition shall contain, 34
289+but not be limited to, the following: 35
290+… 36
291+(2) Verified affidavits Affidavits of two persons who are not related to the 37
292+petitioner or to each other by blood or marriage, that they know the character 38
293+and reputation of the petitioner in the community in which the petitioner lives, 39
294+and that the petitioner's character and reputation are good. 40
295+… 41
296+(b1) No person as to whom such order has been entered shall be held thereafter under any 42
297+provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 43
298+the person's failure to recite or acknowledge such arrest, or indictment or information, or trial, or 44
299+response to any inquiry made of the person for any purpose. This subsection shall The effect of 45
300+an expunction under this section is governed by G.S. 15A-153, except that the protected 46
301+nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 47
302+has been convicted of a subsequent criminal offense. 48
303+…." 49
304+SECTION 3.(d) G.S. 15A-145.2 reads as rewritten: 50 General Assembly Of North Carolina Session 2025
305+House Bill 481-First Edition Page 7
306+"§ 15A-145.2. Expunction of records for first offenders not over 21 years of age at the time 1
307+of the offense of certain drug offenses. 2
308+(a) Whenever a person is discharged, and the proceedings against the person dismissed, 3
309+pursuant to G.S. 90-96(a) or (a1), and the person was not over 21 years of age at the time of the 4
310+offense, the person may apply to the court of the county where charged for an order to expunge 5
311+from all official records, other than the confidential files retained under G.S. 15A-151, all 6
312+recordation relating to the person's arrest, indictment or information, trial, finding of guilty, and 7
313+dismissal and discharge pursuant to this section. The applicant shall attach to the petition the 8
314+following: 9
315+… 10
316+(2) Verified affidavits Affidavits by two persons who are not related to the 11
317+petitioner or to each other by blood or marriage, that they know the character 12
318+and reputation of the petitioner in the community in which he or she lives, and 13
319+that the petitioner's character and reputation are good; 14
320+… 15
321+(a1) No person as to whom such order was entered shall be held thereafter under any 16
322+provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the 17
323+person's failures to recite or acknowledge such arrest, or indictment or information, or trial in 18
324+response to any inquiry made of him or her for any purpose. This subsection shall The effect of 19
325+an expunction under this section is governed by G.S. 15A-153, except that the protected 20
326+nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 21
327+has been convicted of a subsequent criminal offense. 22
328+…." 23
329+SECTION 3.(e) G.S. 15A-145.3 reads as rewritten: 24
330+"§ 15A-145.3. Expunction of records for first offenders not over 21 years of age at the time 25
331+of the offense of certain toxic vapors offenses. 26
332+(a) Whenever a person is discharged and the proceedings against the person dismissed 27
333+under G.S. 90-113.14(a) or (a1), such person, if he or she was not over 21 years of age at the time 28
334+of the offense, may apply to the court of the county where charged for an order to expunge from 29
335+all official records, other than the confidential files retained under G.S. 15A-151, all recordation 30
336+relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal 31
337+and discharge pursuant to this section. The applicant shall attach to the petition the following: 32
338+… 33
339+(2) Verified affidavits Affidavits by two persons who are not related to the 34
340+petitioner or to each other by blood or marriage, that they know the character 35
341+and reputation of the petitioner in the community in which the petitioner lives, 36
342+and that his or her character and reputation are good; 37
343+… 38
344+(b1) No person as to whom such order has been entered shall be held thereafter under any 39
345+provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the 40
346+person's failures to recite or acknowledge such arrest, or indictment or information, or trial in 41
347+response to any inquiry made of him or her for any purpose. This subsection shall The effect of 42
348+an expunction under this section is governed by G.S. 15A-153, except that the protected 43
349+nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 44
350+has been convicted of a subsequent criminal offense. 45
351+…." 46
352+SECTION 3.(f) G.S. 15A-145.4 reads as rewritten: 47
353+"§ 15A-145.4. Expunction of records for first offenders who are under 18 years of age at 48
354+the time of the commission of a nonviolent felony. 49
355+… 50 General Assembly Of North Carolina Session 2025
356+Page 8 House Bill 481-First Edition
357+(c) Whenever any person who had not yet attained the age of 18 years at the time of the 1
358+commission of the offense and has not previously been convicted of any felony or misdemeanor 2
359+other than a traffic violation under the laws of the United States or the laws of this State or any 3
360+other state pleads guilty to or is guilty of a nonviolent felony, the person may file a petition in 4
361+the court of the county where the person was convicted for expunction of the nonviolent felony 5
362+from the person's criminal record. The petition shall not be filed earlier than four years after the 6
363+date of the conviction or when any active sentence, period of probation, and post-release 7
364+supervision has been served, whichever occurs later. The person shall also perform at least 100 8
365+hours of community service, preferably related to the conviction, before filing a petition for 9
366+expunction under this section. The petition shall contain the following: 10
367+… 11
368+(2) Verified affidavits Affidavits of two persons who are not related to the 12
369+petitioner or to each other by blood or marriage, that they know the character 13
370+and reputation of the petitioner in the community in which the petitioner lives 14
371+and that the petitioner's character and reputation are good. 15
372+… 16
373+(f) No person as to whom an order has been entered pursuant to subsection (e) of this 17
374+section shall be held thereafter under any provision of any laws to be guilty of perjury or 18
375+otherwise giving a false statement by reason of that person's failure to recite or acknowledge the 19
376+arrest, indictment, information, trial, or conviction. This subsection shall The effect of an 20
377+expunction under this section is governed by G.S. 15A-153, except that the protected 21
378+nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 22
379+has been convicted of a subsequent criminal offense. 23
380+…." 24
381+SECTION 3.(g) G.S. 15A-145.6 reads as rewritten: 25
382+"§ 15A-145.6. Expunctions for certain defendants convicted of prostitution. 26
383+… 27
384+(c) The petition shall contain all of the following: 28
282385 … 29
283-(2) Verified affidavits Affidavits of two persons who are not related to the 30
386+(2) Verified affidavits Affidavits of two persons, who are not related to the 30
284387 petitioner or to each other by blood or marriage, that they know the character 31
285-and reputation of the petitioner in the community in which the petitioner lives, 32
388+and reputation of the petitioner in the community in which the petitioner lives 32
286389 and that the petitioner's character and reputation are good. 33
287390 … 34
288-(b1) No person as to whom such order has been entered shall be held thereafter under any 35
289-provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 36
290-the person's failure to recite or acknowledge such arrest, or indictment or information, or trial, or 37
291-response to any inquiry made of the person for any purpose. This subsection shall The effect of 38
292-an expunction under this section is governed by G.S. 15A-153, except that the protected 39
391+(g) No person as to whom an order has been entered pursuant to subsection (f) of this 35
392+section shall be held thereafter under any provision of any laws to be guilty of perjury or 36
393+otherwise giving a false statement by reason of that person's failure to recite or acknowledge the 37
394+arrest, indictment, information, trial, or conviction. This subsection shall The effect of an 38
395+expunction under this section is governed by G.S. 15A-153, except that the protected 39
293396 nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 40
294397 has been convicted of a subsequent criminal offense. 41
295398 …." 42
296-SECTION 3.(d) G.S. 15A-145.2 reads as rewritten: 43
297-"§ 15A-145.2. Expunction of records for first offenders not over 21 years of age at the time 44
298-of the offense of certain drug offenses. 45
399+SECTION 3.(h) G.S. 15A-145.7 reads as rewritten: 43
400+"§ 15A-145.7. Expunction of records for first offenders under 20 years of age at the time of 44
401+the offense of certain offenses. 45
299402 (a) Whenever a person is discharged, and the proceedings against the person dismissed, 46
300-pursuant to G.S. 90-96(a) or (a1), and the person was not over 21 years of age at the time of the 47
301-offense, the person may apply to the court of the county where charged for an order to expunge 48
302-from all official records, other than the confidential files retained under G.S. 15A-151, all 49
303-recordation relating to the person's arrest, indictment or information, trial, finding of guilty, and 50 General Assembly Of North Carolina Session 2025
304-House Bill 481-Second Edition Page 7
305-dismissal and discharge pursuant to this section. The applicant shall attach to the petition the 1
306-following: 2
403+pursuant to G.S. 14-277.8, and the person was under 20 years of age at the time of the offense, 47
404+the person may apply to the court of the county where charged for an order to expunge from all 48
405+official records, other than the confidential files retained under G.S. 15A-151, all recordation 49
406+relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal 50
407+and discharge pursuant to this section. The applicant shall attach to the petition the following: 51 General Assembly Of North Carolina Session 2025
408+House Bill 481-First Edition Page 9
409+… 1
410+(2) Verified affidavits Affidavits by two persons who are not related to the 2
411+petitioner or to each other by blood or marriage, that they know the character 3
412+and reputation of the petitioner in the community in which he or she lives, and 4
413+that the petitioner's character and reputation are good;good. 5
414+… 6
415+(b) No person as to whom such order was entered shall be held thereafter under any 7
416+provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the 8
417+person's failures to recite or acknowledge such arrest, or indictment or information, or trial in 9
418+response to any inquiry made of him or her for any purpose. This subsection shall The effect of 10
419+an expunction under this section is governed by G.S. 15A-153, except that the protected 11
420+nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 12
421+has been convicted of a subsequent criminal offense. 13
422+…." 14
423+SECTION 3.(i) G.S. 15A-145.8 reads as rewritten: 15
424+"§ 15A-145.8. Expunction of records when charges are remanded to district court for 16
425+juvenile adjudication. 17
426+(a) Upon remand pursuant to G.S. 7B-2200(c) or G.S. 7B-2200.5(d) or removal pursuant 18
427+to G.S. 15A-960, the court shall order expunction of all remanded or removed charges. No person 19
428+as to whom such an order has been entered shall be held thereafter under any provision of any 20
429+law to be guilty of perjury, or to be guilty of otherwise giving a false statement or response to 21
430+any inquiry made for any purpose, by reason of his or her failure to recite or acknowledge any 22
431+expunged entries concerning apprehension or trial.The effect of an expunction under this section 23
432+is governed by G.S. 15A-153. 24
433+…." 25
434+SECTION 3.(j) G.S. 15A-145.8A reads as rewritten: 26
435+"§ 15A-145.8A. Expunction of records for offenders under the age of 18 at the time of 27
436+commission of certain misdemeanors and felonies upon completion of the 28
437+sentence. 29
438+… 30
439+(f) No person as to whom such order has been entered shall be held thereafter under any 31
440+provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 32
441+that person's failure to recite or acknowledge such arrest, or indictment, information, or trial, or 33
442+response to any inquiry made of the person for any purpose.The effect of an expunction under 34
443+this section is governed by G.S. 15A-153. 35
444+…." 36
445+SECTION 3.(k) G.S. 15A-145.9 reads as rewritten: 37
446+"§ 15A-145.9. Expunctions of certain offenses committed by human trafficking victims. 38
447+… 39
448+(g) Effect. – No person as to whom an order has been entered pursuant to subsection (f) 40
449+of this section shall be held thereafter under any provision of any laws to be guilty of perjury or 41
450+otherwise giving false statement by reason of that person's failure to recite or acknowledge the 42
451+arrest, indictment, information, trial, or conviction.The effect of an expunction under this section 43
452+is governed by G.S. 15A-153. 44
453+Persons required by State law to obtain a criminal history record check on a prospective 45
454+employee shall not be deemed to have knowledge of any convictions expunged under this section. 46
455+…." 47
456+SECTION 3.(l) G.S. 15A-146 reads as rewritten: 48
457+"§ 15A-146. Expunction of records when charges are dismissed or there are findings of not 49
458+guilty. 50
459+… 51 General Assembly Of North Carolina Session 2025
460+Page 10 House Bill 481-First Edition
461+(a3) Effect of Expunction. – Except as provided in G.S. 15A-151.5(b)(5), no person as to 1
462+whom an order has been entered by a court or by operation of law under this section shall be held 2
463+thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 3
464+giving a false statement or response to any inquiry made for any purpose, by reason of the 4
465+person's failure to recite or acknowledge any expunged entries concerning apprehension or 5
466+trial.The effect of an expunction under this section is governed by G.S. 15A-153. 6
467+…." 7
468+SECTION 3.(m) G.S. 15A-147 reads as rewritten: 8
469+"§ 15A-147. Expunction of records when charges are dismissed or there are findings of not 9
470+guilty as a result of identity theft or mistaken identity. 10
471+… 11
472+(b) No person as to whom such an order has been entered under this section shall be held 12
473+thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 13
474+giving a false statement or response to any inquiry made for any purpose, by reason of the 14
475+person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 15
476+or trial.The effect of an expunction under this section is governed by G.S. 15A-153. 16
477+…." 17
478+SECTION 3.(n) G.S. 15A-149 reads as rewritten: 18
479+"§ 15A-149. Expunction of records when pardon of innocence is granted. 19
480+… 20
481+(c) No person as to whom such an order has been entered under this section shall be held 21
482+thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 22
483+giving a false statement or response to any inquiry made for any purpose, by reason of the 23
484+person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 24
485+or trial.The effect of an expunction under this section is governed by G.S. 15A-153." 25
486+SECTION 3.(o) G.S. 15A-153 reads as rewritten: 26
487+"§ 15A-153. Effect of expunction; prohibited practices by employers, educational 27
488+institutions, agencies of State and local governments. 28
489+(a) Purpose. – The purpose of this section is to clear the public record of any entry of any 29
490+arrest, criminal charge, or criminal conviction that has been expunged so that (i) the person who 30
491+is entitled to and obtains receives the expunction may omit reference to the charges or convictions 31
492+to potential employers and others and (ii) a records check for prior arrests and convictions will 32
493+not disclose the expunged entries. Nothing in this section shall be construed to prohibit an 33
494+employer from asking a job applicant about criminal charges or convictions that have not been 34
495+expunged and are part of the public record. 35
496+(b) Nondisclosure Protected. – No person as to whom an order of expunction has been 36
497+entered who receives an expunction pursuant to this Article shall be held thereafter under any 37
498+provision of any laws to be is guilty of perjury or otherwise giving a false statement by reason of 38
499+that person's failure following expunction to recite or acknowledge any the expunged arrest, 39
500+apprehension, charge, indictment, information, trial, or conviction in response to any inquiry 40
501+made of him or her the person for any purpose other than as provided in subsection (e) of this 41
502+section. 42
503+…." 43
504+SECTION 4. G.S. 48-3-309 reads as rewritten: 44
505+"§ 48-3-309. Mandatory preplacement criminal checks of prospective adoptive parents 45
506+seeking to adopt a minor who is in the custody or placement responsibility of a 46
507+county department of social services and mandatory preplacement criminal 47
508+checks of all individuals 18 years of age or older who reside in the prospective 48
509+adoptive home.history checks. 49
510+(a) The Department shall ensure that the criminal histories of all prospective adoptive 50
511+parents seeking to adopt a minor who is in the custody or placement responsibility of a county 51 General Assembly Of North Carolina Session 2025
512+House Bill 481-First Edition Page 11
513+department of social services and the criminal histories of all individuals 18 years of age or older 1
514+who reside in the prospective adoptive home are checked prior to placement and, based on the 2
515+criminal history, a determination is made as to the prospective adoptive parent's fitness to have 3
516+responsibility for the safety and well-being of children and whether other individuals required to 4
517+be checked are fit for an adoptive child to reside with them in the home. The Department shall 5
518+ensure that all individuals required to be checked are checked prior to placement for county, state, 6
519+and federal criminal histories. 7
520+(b) A county department of social services shall issue an unfavorable preplacement 8
521+assessment to a prospective adoptive parent if an individual required to submit to a criminal 9
522+history check pursuant to subsection (a) of this section has a criminal history. A county 10
523+department of social services shall issue an unfavorable preplacement assessment to a 11
524+prospective adoptive parent if the county department of social services determines, pursuant to 12
525+G.S. 48-3-303(e), that, based on other criminal convictions, whether felony or misdemeanor, the 13
526+prospective adoptive parent is unfit to have responsibility for the safety and well-being of 14
527+children or other individuals required to be checked are unfit for an adoptive child to reside with 15
528+them in the home. 16
529+histories 17
530+(c) The State Bureau of Investigation shall provide to the Department of Health and 18
531+Human Services the criminal history of any individual required to be checked under subsection 19
532+(a) of this section as requested by the Department and obtained from the State and National 20
533+Repositories of Criminal Histories. The Department shall provide to the State Bureau of 21
534+Investigation, along with the request, the fingerprints of any individual to be checked, any 22
535+additional information required by the State Bureau of Investigation, and a form consenting to 23
536+the check of the criminal record and to the use of fingerprints and other identifying information 24
537+required by the State or National Repositories signed by the individual to be checked. The 25
538+fingerprints of any individual to be checked shall be used by the State Bureau of Investigation 26
539+for a search of the State's criminal history record file, and the State Bureau of Investigation shall 27
540+forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history 28
541+record check. 29
542+(d) At the time of the request for a preplacement assessment or at a subsequent time prior 30
543+to placement, any individual whose criminal history is to be checked shall be furnished with a 31
544+statement substantially similar to the following: 32
545+ 33
546+"NOTICE 34
547+ 35
548+MANDATORY CRIMINAL HISTORY CHECK: NORTH CAROLINA LAW 36
549+REQUIRES THAT A CRIMINAL HISTORY CHECK BE CONDUCTED PRIOR TO 37
550+PLACEMENT ON PROSPECTIVE ADOPTIVE PARENTS SEEKING TO ADOPT A 38
551+MINOR WHO IS IN THE CUSTODY OR PLACEMEN T RESPONSIBILITY OF A 39
552+COUNTY DEPARTMENT OF SOCIAL SERVICES AND ON ALL PERSONS 18 40
553+YEARS OF AGE OR OLDER WHO RESIDE IN THE PROSPECTIVE ADOPTIVE 41
554+HOME. 42
555+"Criminal history" means a county, State, or federal conviction of a felony by a court of 43
556+competent jurisdiction or a pending felony indictment of a crime for child abuse or 44
557+neglect, spousal abuse, a crime against a child, including child pornography, or for a crime 45
558+involving violence, including rape, sexual assault, or homicide, other than physical 46
559+assault or battery; a county, State, or federal conviction of a felony by a court of 47
560+competent jurisdiction or a pending felony indictment for physical assault, battery, or a 48
561+drug-related offense, if the offense was committed within the past five years; or similar 49
562+crimes under federal law or under the laws of other states. Your fingerprints will be used 50 General Assembly Of North Carolina Session 2025
563+Page 12 House Bill 481-First Edition
564+to check the criminal history records of the State Bureau of Investigation (SBI) and the 1
565+Federal Bureau of Investigation (FBI). 2
566+If it is determined, based on your criminal history, that you are unfit to have responsibility 3
567+for the safety and well-being of children or have an adoptive child reside with you, you 4
568+shall have the opportunity to complete, or challenge the accuracy of, the information 5
569+contained in the SBI or FBI identification records. 6
570+If the prospective adoptive parent is denied a favorable preplacement assessment by a 7
571+county department of social services as a result of a criminal history check as required 8
572+under G.S. 48-3-309(a), the prospective adoptive parent may request a review of the 9
573+assessment pursuant to G.S. 48-3-308(a). 10
574+Any person who intentionally falsifies any information required to be furnished to 11
575+conduct the criminal history is guilty of a Class 2 misdemeanor." 12
576+ 13
577+Refusal to consent to a criminal history check by any individual required to be checked under 14
578+G.S. 48-3-309(a) subsection (a) of this section is grounds for the issuance by a county department 15
579+of social services of an unfavorable preplacement assessment. Any person who intentionally 16
580+falsifies any information required to be furnished to conduct the criminal history is guilty of a 17
581+Class 2 misdemeanor. 18
582+… 19
583+(g) There is no liability for negligence on the part of a State or local agency, or the 20
584+employees of a State or local agency, arising from any action taken or omission by any of them 21
585+in carrying out the provisions of this section. The immunity established by this subsection shall 22
586+does not extend to gross negligence, wanton conduct, or intentional wrongdoing that would 23
587+otherwise be actionable. The immunity established by this subsection shall be is deemed to have 24
588+been waived to the extent of indemnification by insurance, indemnification under Article 31A of 25
589+Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the 26
590+Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes. 27
591+(h) The State Bureau of Investigation shall perform the State and national criminal history 28
592+checks on prospective adoptive parents seeking to adopt a minor in the custody or placement 29
593+responsibility of a county department of social services and all individuals 18 years of age or 30
594+older who reside in the prospective adoptive home and shall charge the Department of Health 31
595+and Human Services a reasonable fee only for conducting the checks of the national criminal 32
596+history records authorized required by this section. The Division of Social Services, Services of 33
597+the Department of Health and Human Services, Services shall bear the costs of implementing 34
598+this section." 35
599+SECTION 5.(a) G.S. 58-36-43 reads as rewritten: 36
600+"§ 58-36-43. Optional approved program enhancements authorized not altering coverage 37
601+under not within Rate Bureau jurisdiction. 38
602+(a) Member companies writing private passenger automobile, homeowners', dwelling, or 39
603+residential private flood insurance under this Article may incorporate optional enhancements to 40
604+their automobile, homeowners', dwelling, and residential private flood these programs as an 41
605+endorsement to an automobile, homeowners', dwelling, or residential private flood policy issued 42
606+under this Article a policy if the insurer has filed the proposed enhancement enhancements with 43
607+the Commissioner and if the proposed enhancement is approved by the Commissioner. the 44
608+Commissioner has approved them. Any approved optional enhancements shall be considered are 45
609+outside the authority of the Rate Bureau. If the a proposed enhancement will include an additional 46
610+premium charge, the proposed premium charge shall be included with the proposed program 47
611+enhancements filed with the Commissioner. The Commissioner shall review the proposed 48
612+premium charges and approve them if the Commissioner finds that they are based on sound 49
613+actuarial principles. Amendments to private passenger automobile, homeowners', dwelling, or 50 General Assembly Of North Carolina Session 2025
614+House Bill 481-First Edition Page 13
615+residential private flood program enhancements are subject to the same requirements as initial 1
616+filings. dwelling, residential private flood 2
617+A company shall not condition (i) the acceptance or renewal of a policy, (ii) any underwriting 3
618+criteria, or (iii) any rating criteria upon the acceptance by the policyholder of any optional 4
619+automobile or homeowners' enhancements authorized by this section. A rate amendment 5
620+authorized by this section is not a rate deviation and is not subject to the requirements for rate 6
621+deviations set forth in G.S. 58-36-30(a). 7
622+(b) Repealed by S.L. 2023-133, s. 16(c), as amended by S.L. 2024-29, s. 9(b), effective 8
623+July 1, 2025." 9
624+SECTION 5.(b) This section becomes effective July 1, 2025. 10
625+SECTION 6.(a) Part 1 of Article 45 of Chapter 66 of the General Statutes reads as 11
626+rewritten: 12
627+"Part 1. Pawnbrokers and Cash Currency Converters. 13
628+"§ 66-385. Short title. 14
629+This Part shall be known and may be cited as the Pawnbrokers and Cash Currency Converters 15
630+Modernization Act. 16
631+"§ 66-386. Purpose. 17
632+The making of pawn loans and the acquisition and disposition of tangible personal property 18
633+by and through pawnshops and cash currency converters vitally affects the general economy of 19
634+this State and the public interest and welfare of its citizens. In recognition of these facts, it is the 20
635+policy of this State and the purpose of the Pawnbrokers and Cash Converters Modernization Act 21
636+this Part to do all of the following: 22
637+(1) Ensure a sound system of making loans and acquiring and disposing of 23
638+tangible personal property by and through pawnshops, pawnshops and to 24
639+prevent unlawful property transactions, particularly in stolen property, 25
640+through licensing and regulating pawnbrokers. 26
641+(2) Ensure a sound system of acquiring and disposing of tangible personal 27
642+property by and through cash currency converters and to prevent unlawful 28
643+property transactions, particularly in stolen property, by requiring record 29
644+keeping by cash currency converters. 30
645+(3) Provide for pawnbroker licensing fees and investigation fees of licensees. 31
646+(4) Ensure financial responsibility to the State and the general public. 32
647+(5) Ensure compliance with federal and State laws. 33
648+(6) Assist local governments in the exercise of their police authority. 34
649+…." 35
650+SECTION 6.(b) G.S. 25-9-201 reads as rewritten: 36
651+"§ 25-9-201. General effectiveness of security agreement. 37
652+(a) General effectiveness. – Effectiveness. – Except as otherwise provided in this 38
653+Chapter, a security agreement is effective according to its terms between the parties, against 39
654+purchasers of the collateral, and against creditors. 40
655+(b) Applicable consumer laws and other law. – Consumer Laws and Other Law. – A 41
656+transaction subject to this Article is subject to any applicable rule of law which that establishes a 42
657+different rule for consumers, to any other statute, rule, or regulation statute or rule of this State 43
658+that regulates the rates, charges, agreements, and practices for loans, credit sales, or other 44
659+extensions of credit, and to any consumer-protection statute, rule, or regulation statute or rule of 45
660+this State, including Chapter 24 of the General Statutes, the Retail Installment Sales Act (Chapter 46
661+25A of the General Statutes), the North Carolina Consumer Finance Act (Article 15 of Chapter 47
662+53 of the General Statutes), and the Pawnbrokers and Cash Currency Converters Modernization 48
663+Act (Part 1 of Article 45 of Chapter 66 of the General Statutes). 49
664+(c) Other applicable law controls. – Applicable Law Controls. – In case of conflict 50
665+between this Article and a rule of law, statute, or regulation law described in subsection (b) of 51 General Assembly Of North Carolina Session 2025
666+Page 14 House Bill 481-First Edition
667+this section, the rule of law, statute, or regulation law controls. Failure to comply with a statute 1
668+or regulation law described in subsection (b) of this section has only the effect the statute or 2
669+regulation law specifies. 3
670+(d) Further deference to other applicable law. – Deference to Other Applicable Law. – 4
671+This Article does not:neither of the following: 5
672+(1) Validate any rate, charge, agreement, or practice that violates a rule of law, 6
673+statute, or regulation law described in subsection (b) of this section; or section. 7
674+(2) Extend the application of the rule of law, statute, or regulation a rule of law to 8
675+a transaction not otherwise subject to it." 9
676+SECTION 7.(a) The subunits of G.S. 75D-3 are renumbered to conform to the 10
677+General Statutes numbering system, and the definitions in G.S. 75D-3 are reordered so that they 11
678+appear in alphabetical order. 12
679+SECTION 7.(b) G.S. 75D-3, as amended by subsection (a) of this section and 13
680+Section 1(b) of S.L. 2024-22, reads as rewritten: 14
681+"§ 75D-3. Definitions. 15
682+As used in this Chapter, the term:The following definitions apply in this Chapter: 16
683+(1) "Attorney General" means the Attorney General. – The Attorney General of 17
684+North Carolina or any employee of the Department of Justice designated by 18
685+him the Attorney General in writing. Any district attorney of this State, with 19
686+his the Attorney General's consent, may be designated in writing by the 20
687+Attorney General to enforce the provisions of this Chapter. 21
688+(2) a. "Beneficial interest" means either Beneficial interest. – Either of the 22
689+following: 23
690+1.a. The interest of a person as a beneficiary under any other a trust 24
691+arrangement pursuant to which a trustee holds legal or record title to 25
692+real property for the benefit of such person; orthe person. 26
693+2.b. The interest of a person under any other form of express fiduciary 27
694+arrangement pursuant to which any other another person holds legal or 28
695+record title to real property for the benefit of such the person. 29
696+b. "Beneficial interest" The term does not include the interest of a 30
697+stockholder in a corporation or the interest of a partner in either a general 31
698+partnership or limited partnership. A beneficial interest shall be is deemed to 32
699+be located where the real property owned by the trustee is located. 33
700+(3) "Civil proceeding" means any Civil proceeding. – A civil proceeding 34
701+commenced by the Attorney General or an injured person under any provision 35
702+of this Chapter. 36
703+(4) "Criminal proceeding" means any Criminal proceeding. – A criminal action 37
704+commenced by the State for a violation of any provision of those criminal laws 38
705+referred to in G.S. 75D-3(c).set forth in subdivision (8) of this section. 39
706+(5) "Documentary material" means any Documentary material. – A book, paper, 40
707+document, writing, drawing, graph, chart, photograph, phonocord, magnetic 41
708+tape, computer printout, other data compilation from which information can 42
709+be obtained or from which information can be translated into useable form, or 43
710+other tangible item. 44
711+(6) "Enterprise" means any Enterprise. – A person, sole proprietorship, 45
712+partnership, corporation, business trust, union chartered under the laws of this 46
713+State, or other legal entity; or any an unchartered union, association, or group 47
714+of individuals associated in fact although not a legal entity; and it entity. The 48
715+term includes illicit as well as licit enterprises and governmental as well as 49
716+other entities. 50 General Assembly Of North Carolina Session 2025
717+House Bill 481-First Edition Page 15
718+(7) "Pattern of racketeering activity" means engaging Pattern of racketeering 1
719+activity. – Engaging in at least two incidents of racketeering activity that have 2
720+the same or similar purposes, results, accomplices, victims, or methods of 3
721+commission or otherwise are interrelated by distinguishing characteristics and 4
722+are not isolated and unrelated incidents, provided incidents so long as at least 5
723+one of such these incidents occurred after October 1, 1986, and that at least 6
724+one other of such these incidents occurred within a four-year period of time 7
725+of the other, excluding any periods of imprisonment, after the commission of 8
726+a prior incident of racketeering activity. 9
727+(8) a. "Racketeering activity" means to Racketeering activity. – To commit, to 10
728+attempt to commit, or to solicit, coerce, or intimidate another person to commit 11
729+an act or acts which that would be chargeable by indictment if such the act or 12
730+acts were was accompanied by the necessary mens rea or criminal intent under 13
731+the following laws of this State: 14
732+1.a. Article 5 of Chapter 90 of the General Statutes of North Carolina 15
733+relating to controlled substances and counterfeit controlled 16
734+substances;substances. 17
735+2.b. Chapter 14 of the General Statutes of North Carolina except Articles 18
736+9, 22A, 38, 40, 43, 46, 47, 59 thereof; and further excepting G.S. 19
737+Sections 14-78.1, and 59 of that Chapter and G.S. 14-82, 14-86, 20
738+14-145, 14-146, 14-147, 14-177, 14-178, 14-179, 14-183, 14-184, 21
739+14-186, 14-190.9, 14-195, 14-197, 14-201, 14-202, 14-247, 14-248, 22
740+14-313 thereof.and 14-313. 23
741+3. Any conduct involved in a "money laundering" activity, including 24
742+activity covered by G.S. 14-118.8; and 25
743+b. "Racketeering activity" The term also includes the description in Title 18, 26
744+United States Code, Section 1961(1)."racketeering activity," as defined in 18 27
745+U.S.C. § 1961(1), and any conduct involved in a money laundering activity, 28
746+including activity covered by G.S. 14-118.8. 29
747+(9) "Real property" means any Real property. – Any real property situated in this 30
748+State or any an interest in such the real property, including, but not limited to, 31
749+any a lease of or mortgage upon such the real property. 32
750+(10) "RICO lien notice" means the RICO lien notice. – The notice described in 33
751+G.S. 75D-13. 34
752+(11) a. "Trustee" means either Trustee. – Either of the following: 35
753+1.a. Any A person who that holds legal or record title to real property for 36
754+in which any other another person has a beneficial interest; orinterest. 37
755+2.b. Any A successor trustee or trustees to any of the foregoing persons.to 38
756+a person described in sub-subdivision a. of this subdivision. 39
757+b. "Trustee" The term does not include the following:either 40
758+1. Any (i) a person appointed or acting as a personal 41
759+representative under Chapter 35A of the General Statutes 42
760+relating to guardian and ward, or under Chapter 28A of the 43
761+General Statutes relating to the administration of estates; or 44
762+estates or 45
763+2. Any (ii) a person appointed or acting as a trustee of any a 46
764+testamentary trust or as trustee of any an indenture of trust 47
765+under which any bonds are to be issued." 48
766+SECTION 7.(c) G.S. 75D-5 reads as rewritten: 49
767+"§ 75D-5. RICO civil forfeiture proceedings. 50 General Assembly Of North Carolina Session 2025
768+Page 16 House Bill 481-First Edition
769+(a) All property of every kind used or intended for use in the course of, derived from, or 1
770+realized through a racketeering activity or pattern of racketeering activity is subject to forfeiture 2
771+to the State. Forfeiture shall be had by a civil procedure known as a RICO forfeiture proceeding. 3
772+(b) A RICO forfeiture proceeding shall be is governed by Chapter 1A of the General 4
773+Statutes of North Carolina except to the extent that special rules of procedure are stated in this 5
774+Chapter. 6
775+(c) A RICO forfeiture proceeding shall be is an in rem proceeding against the property. 7
776+(d) A RICO forfeiture proceeding shall be instituted by complaint and prosecuted only 8
777+by the Attorney General of North Carolina or his designated representative. General. The 9
778+proceeding may be commenced and a final judgment rendered thereon before or after seizure of 10
779+the property and before or after any a criminal conviction of any person for violation of those 11
780+laws any law set forth in G.S. 75D-3(c).G.S. 75D-3(8). 12
781+(e) If the complaint is filed before seizure, it shall state what property is sought to be 13
782+forfeited, that the property is within the jurisdiction of the court, the grounds for forfeiture, and 14
783+the names of all persons known to have or claim an interest in the property. The court shall 15
784+determine ex parte whether there is reasonable ground to believe that the property is subject to 16
785+forfeiture and, if the State so alleges, whether notice to those persons having or claiming an 17
786+interest in the property prior to seizure would cause the loss or destruction of the property. If the 18
787+court finds:The court shall take action as follows: 19
788+(1) That If the court finds that reasonable ground does not exist to believe that the 20
789+property is subject to forfeiture, it shall dismiss the complaint; orcomplaint. 21
790+(2) That If the court finds that reasonable ground does exist to believe the property 22
791+is subject to forfeiture but there is not reasonable ground to believe that prior 23
792+notice would result in loss or destruction, it shall order service on all persons 24
793+known to have or claim an interest in the property prior to a further hearing 25
794+on whether a writ of seizure should issue; orissue. 26
795+(3) That If the court finds that there is reasonable ground to believe that the 27
796+property is subject to forfeiture and to believe that prior notice would cause 28
797+loss or destruction, it shall shall, without any further hearing or notice, issue a 29
798+writ of seizure directing the sheriff of or any other law enforcement officer in 30
799+the county where the property is found to seize it. 31
800+(f) Seizure may be effected by a law enforcement officer authorized to enforce the penal 32
801+laws of this State prior to the filing of the complaint and without a writ of seizure if the seizure 33
802+is incident to a lawful arrest, search, or inspection and the officer has probable cause to believe 34
803+the property is subject to forfeiture and will be lost or destroyed if not seized. Within 24 hours of 35
804+the time of seizure, the seizure shall be reported by the officer to the district attorney of the 36
805+prosecutorial district as defined in G.S. 7A-60 in which the seizure is effected who shall 37
806+immediately report such the seizure to the Attorney General. The Attorney General shall, within 38
807+30 days after receiving notice of seizure, examine the evidence surrounding such the seizure, and 39
808+if he the Attorney General believes reasonable ground exists for forfeiture under this Chapter, 40
809+the Attorney General shall file a complaint for forfeiture. The complaint shall state, in addition 41
810+to the information required in subsection (e) of this section, the date and place of seizure. 42
811+(g) After the complaint is filed or the seizure effected, whichever is later, every person 43
812+known to have or claim an interest in the property, or in the property or enterprise of which the 44
813+subject property is a part or represents any interest, shall be served, if not previously served, with 45
814+a copy of the complaint and a notice of seizure in the manner provided by Chapter 1A of the 46
815+General Statutes of North Carolina. Statutes. Service by publication may be ordered upon any 47
816+party whose whereabouts cannot be determined with reasonable diligence within 30 days of the 48
817+filing of the complaint. 49
818+(h) (1) Any A person claiming an interest in the property, property may become a 50
819+party to the action at any time prior to judgment whether named in the 51 General Assembly Of North Carolina Session 2025
820+House Bill 481-First Edition Page 17
821+complaint or not. Any A party claiming a substantial interest in the property, 1
822+upon motion motion, may be allowed by the court to take possession of the 2
823+property upon posting bond with good and sufficient security in double the 3
824+amount of the property's value conditioned to pay the value of any interest in 4
825+the property found to be subject to forfeiture or the value of any interest of 5
826+another not subject to forfeiture. 6
827+(2) The court, upon such any terms and conditions as it may prescribe, that it 7
828+prescribes, may order that the property be sold by an innocent party who that 8
829+holds a lien on or security interest in the property at anytime any time during 9
830+the proceedings. Any proceeds from such the sale over and above the amount 10
831+necessary to satisfy the lien or security interest shall be paid into court pending 11
832+final judgment in the forfeiture proceeding. No such sale shall be ordered, 12
833+however, unless the obligation upon which the lien or security interest is based 13
834+is in default. 14
835+(3) Pending final judgment in the forfeiture proceeding, the court may make any 15
836+other disposition of the property necessary to protect it or in the interest of 16
837+substantial justice, justice and which that adequately protects the interests of 17
838+innocent parties. 18
839+(i) The interest of an innocent party in the property shall not be is not subject to forfeiture. 19
840+An innocent party is one who that did not have actual or constructive knowledge that the property 20
841+was subject to forfeiture. An attorney who is paid a fee for representing any a person subject to 21
842+this act, shall be Chapter is rebuttably presumed to be an innocent party as to that fee transaction. 22
843+(j) Subject to the requirement of protecting the interest of all innocent parties, the court 23
844+may, after judgment of forfeiture, make any of the following orders for disposition of the 24
845+property: 25
846+(1) Destruction of the property or contraband, the possession of, or use of, which 26
847+is illegal;illegal. 27
848+(2) Retention for official use by a law enforcement agency, the State State, or any 28
849+political subdivision thereof. When such the agency or political subdivision 29
850+no longer has use for such the property, it shall be disposed of by judicial sale 30
851+as provided in Article 29A of Chapter 1 of the General Statutes of North 31
852+Carolina, Statutes, and the proceeds shall be paid to the State 32
853+Treasurer;Treasurer. 33
854+(3) Transfer to the Department of Natural and Cultural Resources of property 34
855+useful for historical or instructional purposes;purposes. 35
856+(4) Retention of the property by any an innocent party having an interest therein, 36
857+in it, including the right to restrict sale of an interest to outsiders, such as a 37
858+right of first refusal, upon payment or approval of a plan for payment into 38
859+court of the value of any forfeited interest in the property. The plan may 39
860+include, in the case of an innocent party who that holds an interest in the 40
861+property through an estate a tenancy by the entirety, or an undivided interest 41
862+in the property, interest, or a lien on or security interest in the property, 42
863+interest, the sale of the property by the innocent party under such any terms 43
864+and conditions as may be prescribed by the court and the payment into court 44
865+of any proceeds from such the sale over and above the amount necessary to 45
866+satisfy the divided ownership value of the innocent party's interest or the lien 46
867+or security interest. interest. Proceeds paid into the court must shall then be 47
868+paid to the State Treasurer;Treasurer. 48
869+(5) Judicial sale of the property as provided in Article 29A of Chapter 1 of the 49
870+General Statutes of North Carolina, Statutes, with the proceeds being paid to 50
871+the State Treasurer;Treasurer. 51 General Assembly Of North Carolina Session 2025
872+Page 18 House Bill 481-First Edition
873+(6) Transfer of the property to any an innocent party having an interest therein in 1
874+it equal to or greater than the value of the property; orproperty. 2
875+(7) Any other disposition of the property which that is in the interest of substantial 3
876+justice and adequately protects innocent parties, with any proceeds being paid 4
877+to the State Treasurer. 5
878+(k) In addition to the provisions of an in rem action under subsections (c) through (g) 6
879+relating to in rem actions, of this section, the State may bring an in personam action for the 7
880+forfeiture of any property subject to forfeiture under subsection (a) of this section. 8
881+(l) Upon the entry of a final civil judgment of forfeiture in favor of the State:State, the 9
882+following provisions apply: 10
883+(1) The title of the State to the forfeited property shall:relates back as follows: 11
884+a. In the case of real property or a beneficial interest, relate the title 12
885+relates back to the date of the filing of the RICO lien notice in the 13
886+official record of the county where the real property or beneficial 14
887+interest is located and, if located. If no RICO lien notice is filed, then 15
888+the title relates back to the date of the filing of any notice of lis pendens 16
889+in the official records of the county where the real property or 17
890+beneficial interest is located and, if located. If no RICO lien notice or 18
891+notice of lis pendens is so filed, then the title relates back to the date 19
892+of the recording of the final judgment of forfeiture in the official 20
893+records of the county where the real property or beneficial interest is 21
894+located; andlocated. 22
895+b. In the case of personal property, relate the title relates back to the date 23
896+the personal property was seized pursuant to the provisions of this 24
897+Chapter. 25
898+(2) If property subject to forfeiture is conveyed, alienated, disposed of, or 26
899+otherwise rendered unavailable for forfeiture after the filing of a RICO lien 27
900+notice or after the filing of a RICO civil proceeding proceeding, whichever is 28
901+earlier, the Attorney General may, on behalf of the State, institute an action in 29
902+an appropriate court against the person named in the RICO lien notice or the 30
903+defendant in the civil proceeding and the court shall enter final judgment 31
904+against the person named in the RICO lien notice or the defendant in the civil 32
905+proceeding in an amount equal to the fair market value of the property, 33
906+together with investigative costs and attorney's attorneys' fees incurred by the 34
907+Attorney General in the action." 35
908+SECTION 7.(d) G.S. 75D-8 reads as rewritten: 36
909+"§ 75D-8. Available RICO civil remedies. 37
910+(a) As part of a final judgment of forfeiture, any judge of the superior court may, after 38
911+giving reasonable notice to potential innocent claimants, enjoin violations of G.S. 75D-4, by 39
912+issuing appropriate one or more of the following orders and judgments: 40
913+(1) Ordering any a defendant to divest himself oneself of any an interest in any 41
914+enterprise, real property, or personal property including property held by a 42
915+tenancy by the entirety. Where If property is held by a tenancy by the entirety 43
916+and one of the spouses is an innocent person as defined in G.S. 75D-5(i), upon 44
917+entry of a final judgment of forfeiture of entirety property, the judgment 45
918+operates, operates to convert the tenancy by the entirety to a tenancy in 46
919+common, and only the one-half undivided interest of the offending spouse 47
920+shall be forfeited according to the provisions of this Chapter;this Chapter. 48
921+(2) Imposing reasonable restrictions upon the future activities or investments of 49
922+any a defendant in the same or similar type of endeavor as the enterprise in 50
923+which he the defendant was engaged in violation of G.S. 75D-4;G.S. 75D-4. 51 General Assembly Of North Carolina Session 2025
924+House Bill 481-First Edition Page 19
925+(3) Ordering the dissolution or reorganization of any enterprise;an enterprise. 1
926+(4) Ordering the suspension or revocation of any a license, permit, or prior 2
927+approval granted to any an enterprise by any agency of the State;a State 3
928+agency. 4
929+(5) Ordering the forfeiture of the charter of a corporation organized under the laws 5
930+of this State or the revocation of a certificate authorizing a foreign corporation 6
931+to conduct business within in this State upon a finding that the board of 7
932+directors or a managerial agent acting on behalf of the corporation, in 8
933+conducting affairs of the corporation, has authorized or engaged in conduct in 9
934+violation of G.S. 75D-4, G.S. 75D-4 and that, for the prevention of future 10
935+unlawful activity, the public interest requires that the charter of the 11
936+corporation be dissolved or the certificate be revoked;revoked. 12
937+(6) Appointment of a receiver pursuant to the provisions of Article 38 of Chapter 13
938+1 of the General Statutes of North Carolina, to collect, conserve conserve, and 14
939+dispose of all the proceeds, money, profits profits, and property, both real and 15
940+personal, subject to the provisions of this Chapter in accordance with the 16
941+provisions hereof this Chapter, as directed by the final judgment of the 17
942+superior court having jurisdiction over the parties or subject matter of the 18
943+action; oraction. 19
944+(7) Any other equitable remedy appropriate to effect complete forfeiture of 20
945+property subject to forfeiture, or to prevent future violations of this Chapter. 21
946+(b) The State through the Attorney General may institute a proceeding under G.S. 75D-5. 22
947+In such the proceeding, relief shall be granted in conformity with the principles that govern the 23
948+granting of injunctive relief from threatened loss or damage in other civil cases, provided that no 24
949+showing of special or irreparable damage to the person shall have to be made and provided further 25
950+that the State shall not be cases. However, the State is not required to show special or irreparable 26
951+damage, nor is the State required to execute any bond before or after obtaining temporary 27
952+restraining orders or preliminary injunctions. 28
953+(c) Any An innocent person who that is injured or damaged in his business or property 29
954+by reason of any violation of G.S. 75D-4 involving a pattern of racketeering activity shall have 30
955+has a cause of action for three times the actual damages sustained and reasonable attorneys 31
956+attorneys' fees. For purposes of this subsection, "pattern of racketeering activity" shall require 32
957+requires that at least one act of racketeering activity be an act of racketeering activity other than 33
958+(i) an act indictable under 18 U.S.C. § 1341 or U.S.C. § 1343, 18 U.S.C. § 1343 or (ii) an act 34
959+which that is an offense involving fraud in the sale of securities. Any A person filing a private 35
960+action under this subsection must shall concurrently notify the Attorney General in writing of the 36
961+commencement of the action. Thereafter, the Attorney General may file a motion for a protective 37
962+order in the court where the private action is pending and shall be granted a stay of the private 38
963+action for a reasonable time if the court finds either:either of the following: 39
964+(1) The bringing of a private action is likely to materially interfere with or impair 40
965+a public forfeiture action; oraction. 41
966+(2) The public interest is so great as to require the Attorney General to investigate 42
967+and bring a forfeiture action. 43
968+(d) Any An injured innocent person shall have has a right or claim to forfeited property 44
969+property, or to the proceeds derived therefrom from it, that is superior to any right or claim the 45
970+State has in the same property or proceeds. To enforce such a claim the claim, the injured innocent 46
971+person must shall intervene in the forfeiture proceeding prior to its final disposition. 47
972+(e) A final conviction in any a criminal proceeding for a violation of those laws set forth 48
973+in G.S. 75D-3(c), shall estop estops the defendant in any subsequent civil action or proceeding 49
974+under this Chapter as to all matters proved in the criminal proceeding. 50 General Assembly Of North Carolina Session 2025
975+Page 20 House Bill 481-First Edition
976+(f) A defendant in an action commenced by the State pursuant to this Chapter whose 1
977+convictions of two or more criminal offenses of those criminal statutes as set forth in G.S. 2
978+75D-3(c) have become final, which offenses have occurred within a four-year period of each 3
979+other as set forth in G.S. 75D-3(b) shall be who has two or more final convictions for violating 4
980+any law set forth in G.S. 75D-3(8) and whose violations occurred within a four-year period as 5
981+set forth in G.S. 75D-3(7) is deemed to have, have per se violated the provisions of 6
982+G.S. 75D-4(a)(1) or (2) as of the date of the second conviction. 7
983+(g) Any party is entitled to a jury trial in any action brought under this Chapter." 8
984+SECTION 7.(e) This section is effective when it becomes law and applies to actions 9
985+or proceedings commenced on or after that date. 10
986+SECTION 8.(a) The definitions in G.S. 85B-1 are reordered so that they appear in 11
987+alphabetical order. 12
988+SECTION 8.(b) G.S. 85B-1, as amended by subsection (a) of this section, reads as 13
989+rewritten: 14
990+"§ 85B-1. Definitions. 15
991+For the purposes of this Chapter Chapter, the following definitions shall apply: 16
992+(1) "Absolute Auction" means the Absolute auction. – The sale of real or personal 17
993+property at auction in which the item offered for auction is sold to the highest 18
994+bidder without reserve, without the requirement of any a minimum bid, and 19
995+without competing bids of any type by the owner, or agent of the owner, of 20
996+the property. 21
997+(2) "Auction" means the Auction. – The sale of goods or real estate by means of 22
998+exchanges between an auctioneer and members of an audience, the exchanges 23
999+consisting of a series of invitations for offers made by the auctioneer, offers 24
1000+by members of the audience, and the acceptance by the auctioneer of the 25
1001+highest or most favorable offer. 26
1002+(3) "Auction Firm" means a Auction firm. – A sole proprietorship of which the 27
1003+owner is not a licensed auctioneer, or any a partnership, association, or 28
1004+corporation, not otherwise exempt from this Chapter, that does any of the 29
1005+following: 30
1006+a. sells Sells, either directly or through agents, real or personal property 31
1007+at auction, or that auction. 32
1008+b. arranges, Arranges, sponsors, manages, conducts conducts, or 33
1009+advertises auctions, or that auctions. 34
1010+c. in In the regular course of business business, uses or allows the use of 35
1011+its facilities for auctions. 36
1012+This definition This term applies whether or not an owner or officer of the 37
1013+business acts as an auctioneer. 38
1014+(4) "Auctioneer" means any Auctioneer. – A person who conducts or offers to 39
1015+conduct auctions and auctions. This term includes apprentice auctioneers 40
1016+except as when stricter standards are specified by this Chapter for apprentice 41
1017+auctioneers. 42
1018+(5) "Auctioneering", "conduct of auction", or "conduct of business" means, in 43
1019+Auctioneering, conduct of auction, or conduct of business. – In addition to the 44
1020+actual calling of bids, any of the following: 45
1021+a. Contracting for auction. 46
1022+b. Accepting consignments of items for sale at auction. 47
1023+c. Advertising an auction. 48
1024+d. Offering items for sale at auction. 49
1025+e. Accepting payment or disbursing monies for items sold at auction. 50 General Assembly Of North Carolina Session 2025
1026+House Bill 481-First Edition Page 21
1027+f. Otherwise soliciting, arranging, sponsoring, or managing an auction 1
1028+or holding oneself out as an auctioneer or auction firm. 2
1029+(6) "Consignment" means, unless Consignment. – Unless otherwise modified by 3
1030+written agreement, the act of delivering or transferring goods or real estate in 4
1031+fact or constructively to an auctioneer or the auctioneer's agent in trust for the 5
1032+purpose of resale at auction whereby by which title does not pass to the buyer 6
1033+until there is an action indicating a sale. For purposes of this section, 7
1034+consignment may also mean This term includes a bailment for sale. 8
1035+(7) "Designated person" means any Designated person. – A person approved by 9
1036+the Board to have the authority to transact business for a licensed auction firm. 10
1037+(8) "Estate Sale" means the Estate sale. – The liquidation by sale at auction of real 11
1038+or personal property of a specified person. 12
1039+(9) "Fund" means Fund. – Auctioneer Recovery Fund. 13
1040+(10) "Owner" means the Owner. – The bona fide owner of the property being 14
1041+offered for sale;sale. The following provisions apply: 15
1042+a. in In the case of partnerships, "owner" this term means a general 16
1043+partner in a partnership that owns the property being offered for sale, 17
1044+provided that sale so long as, in the case of a limited partnership it 18
1045+partnership, the partnership has filed a certificate of limited 19
1046+partnership as required by Chapter 59 of the General Statutes; Statutes. 20
1047+b. in In the case of corporations, "owner" this term means an officer or 21
1048+director or employee or someone acting on behalf of the employee of 22
1049+officer, director, employee, or agent of a corporation that owns the 23
1050+property being offered for sale provided that so long as the corporation 24
1051+is registered to do business in the this State." 25
1052+SECTION 9. G.S. 128-26A is redesignated as G.S. 128-26.1. 26
1053+SECTION 10.(a) G.S. 131A-3 reads as rewritten: 27
1054+"§ 131A-3. Definitions. 28
1055+As used or referred to in this Article, the following words and terms shall have the following 29
1056+meanings, unless the context clearly indicates otherwise: 30
1057+(1) "Bonds" or "notes" means the revenue bonds or bond anticipation notes, 31
1058+respectively, authorized to be issued by the Commission under this Article; 32
1059+(2) "Commission" means the North Carolina Medical Care Commission, created 33
1060+by Part 10 of Article 3 of Chapter 143B of the General Statutes, or, should 34
1061+said Commission be abolished or otherwise divested of its functions under this 35
1062+Article, the public body succeeding it in its principal functions, or upon which 36
1063+are conferred by law the rights, powers and duties given by this Article to the 37
1064+Commission; 38
1065+(3) "Cost" as applied to any health care facilities means the cost of construction 39
1066+or acquisition; the cost of acquisition of property, including rights in land and 40
1067+other property, both real and personal and improved and unimproved; the cost 41
1068+of demolishing, removing or relocating any buildings or structures on land so 42
1069+acquired, including the cost of acquiring any land to which such buildings or 43
1070+structures may be moved or relocated; the cost of all machinery, fixed and 44
1071+movable equipment and furnishings; financing charges, interest prior to and 45
1072+during construction and, if deemed advisable by the Commission, for a period 46
1073+not exceeding two years after the estimated date of completion of 47
1074+construction, the cost of engineering and architectural surveys, plans and 48
1075+specifications; the cost of consulting and legal services and other expenses 49
1076+necessary or incident to determining the feasibility or practicability of 50
1077+constructing or acquiring such health care facilities; the cost of administrative 51 General Assembly Of North Carolina Session 2025
1078+Page 22 House Bill 481-First Edition
1079+and other expenses necessary or incident to the construction or acquisition of 1
1080+such health care facilities, and the financing of the construction or acquisition 2
1081+thereof, including reasonable provision for working capital and a reserve for 3
1082+debt service; the cost of reimbursing any public or nonprofit agency for any 4
1083+payments made for any cost described above or the refinancing of any cost 5
1084+described above, provided that no payment shall be reimbursed or any cost be 6
1085+refinanced if such payment was made or such cost was incurred earlier than 7
1086+two years prior to the effective date of this Article; provided further, that it is 8
1087+the intent that any costs described above shall be payable solely from the 9
1088+revenues of the health care facilities; 10
1089+(4) "Health care facilities" means any one or more buildings, structures, additions, 11
1090+extensions, improvements or other facilities, whether or not located on the 12
1091+same site or sites, machinery, equipment, furnishings or other real or personal 13
1092+property suitable for health care or medical care; and includes, without 14
1093+limitation: general hospitals, chronic diseases, maternity, mental, tuberculosis 15
1094+and other specialized hospitals; facilities for intensive care and self-care; 16
1095+nursing homes, including skilled nursing facilities and intermediate care 17
1096+facilities; facilities for continuing care of the elderly and infirm; clinics and 18
1097+outpatient facilities; clinical, pathological and other laboratories; health care 19
1098+research facilities; laundries; training facilities for nurses, interns, physicians 20
1099+and other staff members; food preparation and food service facilities; 21
1100+administration buildings, central service and other administrative facilities; 22
1101+communication, computer; and other electronic facilities, fire-fighting 23
1102+facilities, pharmaceutical facilities and recreational facilities; storage space, 24
1103+X-ray, laser, radiotherapy and other apparatus and equipment; dispensaries; 25
1104+utilities; vehicular parking lots and garages; office facilities for health care 26
1105+facilities staff members and physicians; and such other health care facilities 27
1106+customarily under the jurisdiction of or provided by hospitals, or any 28
1107+combination of the foregoing, with all necessary, convenient or related 29
1108+interests in land, machinery, apparatus, appliances, equipment, furnishings, 30
1109+appurtenances, site preparation, landscaping and physical amenities; 31
1110+(5) "Non-profit agency" means any nonprofit corporation existing or hereafter 32
1111+created and empowered to acquire, by lease or otherwise, operate or maintain 33
1112+health care facilities; 34
1113+(6) "Public agency" means any county, city, town, hospital district or other 35
1114+political subdivision of the State existing or hereafter created pursuant to the 36
1115+laws of the State authorized to acquire, by lease or otherwise, operate or 37
1116+maintain health care facilities; 38
1117+(7) "State" means the State of North Carolina; 39
1118+(8) "Federally guaranteed security" means any security, investment or evidence 40
1119+of indebtedness issued pursuant to any provision of federal law for the purpose 41
1120+of financing or refinancing the cost of any health care facilities which is 42
1121+insured or guaranteed, directly or indirectly, in whole or in part as to the 43
1122+repayment of principal or interest by the United States of America or any 44
1123+instrumentality thereof; 45
1124+(9) "Federally insured mortgage note" means any loan secured by a mortgage or 46
1125+deed of trust on any health care facilities owned or leased by any public or 47
1126+nonprofit agency which is insured or guaranteed, directly or indirectly, in 48
1127+whole or in part as to the repayment of principal and interest by the United 49
1128+States of America or any instrumentality thereof, or any commitment by the 50 General Assembly Of North Carolina Session 2025
1129+House Bill 481-First Edition Page 23
1130+United States of America or any instrumentality thereof to so insure or 1
1131+guarantee such a loan secured by a mortgage or a deed of trust. 2
1132+(10) "Continuing care" means the furnishing, pursuant to a continuing care 3
1133+agreement, of shelter, food, and nursing care to an individual not related by 4
1134+consanguinity or affinity to the provider furnishing such care. Other personal 5
1135+services provided shall be designated in the continuing care agreement. 6
1136+Continuing care shall include only life care, care for life, or care for a term of 7
1137+years; 8
1138+(11) "Life care" or "care for life" means a life lease, life membership, life estate, or 9
1139+similar agreement between an individual and a provider by which the 10
1140+individual pays a fee for the right to occupy a space in the continuing care 11
1141+facility and to receive continuing care for life; and 12
1142+(12) "Care for a term of years" means an agreement between an individual and a 13
1143+provider whereby the individual pays a fee for the right to occupy space in a 14
1144+continuing care facility, and to receive continuing care, for at least one year, 15
1145+but for less than the life of the member. 16
1146+The following definitions apply in this Article: 17
1147+(1) Bonds or notes. – The revenue bonds or bond anticipation notes, respectively, 18
1148+authorized to be issued by the Commission under this Article. 19
1149+(2) Care for a term of years. – An agreement between an individual and a provider 20
1150+by which the individual pays a fee for the right to occupy space in a continuing 21
1151+care facility and to receive continuing care for at least one year but for less 22
1152+than the life of the member. 23
1153+(3) Commission. – The North Carolina Medical Care Commission, created by 24
1154+Part 10 of Article 3 of Chapter 143B of the General Statutes, or a successor 25
1155+body. 26
1156+(4) Continuing care. – The furnishing, pursuant to a continuing care agreement, 27
1157+of shelter, food, and nursing care to an individual not related by consanguinity 28
1158+or affinity to the provider furnishing the care. Other personal services 29
1159+provided shall be designated in the continuing care agreement. This term 30
1160+includes only life care, care for life, or care for a term of years. 31
1161+(5) Cost. – As applied to any health care facilities, any of the following: 32
1162+a. The cost of construction or acquisition. 33
1163+b. The cost of acquisition of property, including property rights, both real 34
1164+and personal and improved and unimproved. 35
1165+c. The cost of demolishing, removing, or relocating any buildings or 36
1166+structures on land acquired, including the cost of acquiring any land to 37
1167+which the buildings or structures may be moved or relocated. 38
1168+d. The cost of all machinery, fixed and movable equipment, and 39
1169+furnishings. 40
1170+e. Financing charges, interest prior to and during construction, and, if 41
1171+deemed advisable by the Commission, for a period not exceeding two 42
1172+years after the estimated date of completion of construction, the cost 43
1173+of engineering and architectural surveys, plans, and specifications. 44
1174+f. The cost of consulting and legal services and other expenses necessary 45
1175+or incident to determining the feasibility or practicability of 46
1176+constructing or acquiring the health care facilities. 47
1177+g. The cost of administrative and other expenses necessary or incident to 48
1178+the construction or acquisition of the health care facilities and the 49
1179+financing of the construction or acquisition, including reasonable 50
1180+provision for working capital and a reserve for debt service. 51 General Assembly Of North Carolina Session 2025
1181+Page 24 House Bill 481-First Edition
1182+h. The cost of reimbursing a public or nonprofit agency for any payments 1
1183+made for any cost described in this subdivision or the refinancing of 2
1184+any cost described in this subdivision. This term, however, does not 3
1185+include any reimbursement or refinancing costs that are not payable 4
1186+solely from the revenues of the health care facilities. 5
1187+(6) Federally guaranteed security. – A security, investment, or evidence of 6
1188+indebtedness issued pursuant to federal law for the purpose of financing or 7
1189+refinancing the cost of a health care facility and that is insured or guaranteed, 8
1190+directly or indirectly, in whole or in part as to the repayment of principal or 9
1191+interest by the United States of America or any instrumentality thereof. 10
1192+(7) Federally insured mortgage note. – A loan secured by a mortgage or deed of 11
1193+trust on a health care facility owned or leased by a public or nonprofit agency 12
1194+and that is insured or guaranteed, directly or indirectly, in whole or in part as 13
1195+to the repayment of principal and interest by the United States of America or 14
1196+any instrumentality thereof, or by a commitment of the United States of 15
1197+America or any instrumentality thereof. 16
1198+(8) Health care facilities. – Any one or more buildings, structures, additions, 17
1199+extensions, improvements, or other facilities, whether or not located on the 18
1200+same site, machinery, equipment, furnishings, or other real or personal 19
1201+property suitable for health care or medical care. The term includes, without 20
1202+limitation, any of the following facilities related to health care: 21
1203+a. General hospitals or specialized hospitals, such as hospitals for chronic 22
1204+diseases, maternity, or mental health. 23
1205+b. Facilities for intensive care and self-care. 24
1206+c. Nursing homes, including skilled nursing facilities and intermediate 25
1207+care facilities. 26
1208+d. Facilities for the continuing care of the elderly and infirm. 27
1209+e. Clinics and outpatient facilities. 28
1210+f. Clinical, pathological, and other laboratories. 29
1211+g. Health care research facilities. 30
1212+h. Laundries. 31
1213+i. Training facilities for nurses, interns, physicians, and other staff 32
1214+members. 33
1215+j. Food preparation and food service facilities. 34
1216+k. Administration buildings, central service facilities, and other 35
1217+administrative facilities. 36
1218+l. Communication, computer, and other electronic facilities, firefighting 37
1219+facilities, pharmaceutical facilities, and recreational facilities. 38
1220+m. Storage space. 39
1221+n. X-ray, laser, radiotherapy, and other apparatus and equipment. 40
1222+o. Dispensaries. 41
1223+p. Utilities. 42
1224+q. Vehicular parking lots and garages. 43
1225+r. Office facilities for staff members and physicians of a health care 44
1226+facility. 45
1227+s. Other facilities customarily under the jurisdiction of or provided by 46
1228+hospitals, or any combination of the facilities listed in this subdivision, 47
1229+with all related interests in land, machinery, apparatus, appliances, 48
1230+equipment, furnishings, appurtenances, site preparation, landscaping, 49
1231+and physical amenities. 50 General Assembly Of North Carolina Session 2025
1232+House Bill 481-First Edition Page 25
1233+(9) Life care or care for life. – A life lease, life membership, life estate, or similar 1
1234+agreement between an individual and a provider by which the individual pays 2
1235+a fee for the right to occupy a space in the continuing care facility and to 3
1236+receive continuing care for life. 4
1237+(10) Nonprofit agency. – A nonprofit corporation authorized to acquire, by lease 5
1238+or otherwise, operate, or maintain health care facilities. 6
1239+(11) Public agency. – A county, city, town, hospital district, or other political 7
1240+subdivision of the State authorized to acquire, by lease or otherwise, operate, 8
1241+or maintain health care facilities. 9
1242+(12) State. – State of North Carolina." 10
1243+SECTION 10.(b) G.S. 143B-181.16 reads as rewritten: 11
1244+"§ 143B-181.16. Long-Term Care Ombudsman Program/Office; definition.Definitions. 12
1245+Unless the content clearly requires otherwise, as used in this Article: 13
1246+(1) "Long-term care facility" means any skilled nursing facility and intermediate 14
1247+care facility as defined in G.S. 131A-3(4) or any adult care home as defined 15
1248+in G.S. 131D-20(2). 16
1249+(1a) Reserved for future codification purposes. 17
1250+(1b) "Programmatic supervision" means the monitoring of the performance of the 18
1251+duties of the Regional Ombudsman and ensuring that the Area Agency on 19
1252+Aging has personnel policies and procedures consistent with the laws and 20
1253+policies governing the Ombudsman Program as performed by the State 21
1254+Ombudsman. 22
1255+(1c) "Regional Ombudsman" means a person employed by an Area Agency on 23
1256+Aging who is certified and designated by the State Ombudsman to carry out 24
1257+the functions of the Regional Ombudsman Office established by this Article, 25
1258+42 U.S.C. § 3001, et seq. and regulations promulgated thereunder. 26
1259+(2) "Resident" means any person who is receiving treatment or care in any 27
1260+long-term care facility. 28
1261+(3) "State Ombudsman" means the State Ombudsman as defined by the Older 29
1262+Americans Act of 1965, as amended, 42 U.S.C. § 3001 et seq., and regulations 30
1263+promulgated thereunder, who carries out the duties and functions established 31
1264+by this Article and 42 U.S.C. § 3001, et seq. and regulations promulgated 32
1265+thereunder. 33
1266+(4) "Willful interference" means actions or inactions taken by an individual in an 34
1267+attempt to intentionally prevent, interfere with, or attempt to impede the 35
1268+Ombudsman or a representative of the Office from performing any of the 36
1269+functions, responsibilities, or duties set forth in 42 U.S.C. § 3001 et seq., and 37
1270+regulations promulgated thereunder. 38
1271+The following definitions apply in this Article: 39
1272+(1) Long-term care facility. – A skilled nursing facility, intermediate care facility, 40
1273+or adult care home as defined in G.S. 131D-20. 41
1274+(2) Programmatic supervision. – The monitoring of the performance of the duties 42
1275+of the Regional Ombudsman and ensuring that the Area Agency on Aging has 43
1276+personnel policies and procedures consistent with the laws and policies 44
1277+governing the Ombudsman Program as performed by the State Ombudsman. 45
1278+(3) Regional Ombudsman. – A person employed by an Area Agency on Aging 46
1279+who is certified and designated by the State Ombudsman to carry out the 47
1280+functions of the Regional Ombudsman Office established by this Article, the 48
1281+Older Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations 49
1282+promulgated under that act. 50 General Assembly Of North Carolina Session 2025
1283+Page 26 House Bill 481-First Edition
1284+(4) Resident. – A person who is receiving treatment or care in a long-term care 1
1285+facility. 2
1286+(5) State Ombudsman. – The State Ombudsman, as defined by the Older 3
1287+Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations 4
1288+promulgated under it, who carries out the duties and functions established by 5
1289+those laws and this Article. 6
1290+(6) Willful or unnecessary obstruction. – Actions or inactions taken by an 7
1291+individual in an attempt to intentionally prevent, interfere with, or attempt to 8
1292+impede the State Ombudsman or Regional Ombudsman from performing any 9
1293+of the functions, responsibilities, or duties set forth in the Older Americans 10
1294+Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations promulgated under 11
1295+it." 12
1296+SECTION 11.1.(a) G.S. 131E-176(5a) is recodified as G.S. 131E-176(5c). 13
1297+SECTION 11.1.(b) G.S. 131E-176(10) is recodified as G.S. 131E-176(7e). 14
1298+SECTION 11.1.(c) G.S. 131E-176(13) is recodified as G.S. 131E-176(13d). The 15
1299+Revisor of Statutes shall substitute "G.S. 131E-176" for "G.S. 131E-176(13)" wherever it 16
1300+appears in G.S. 90-414.4. 17
1301+SECTION 11.2.(a) G.S. 131E-176, as amended by Section 11.1 of this act, reads as 18
1302+rewritten: 19
1303+"§ 131E-176. Definitions. 20
1304+The following definitions apply in this Article: 21
1305+(1) Adult care home. – A facility with seven or more beds licensed under Part 1 22
1306+of Article 1 of Chapter 131D of the General Statutes or under this Chapter that 23
1307+provides residential care for aged individuals or individuals with disabilities 24
1308+whose principal need is a home which that provides the supervision and 25
1309+personal care appropriate to their age and disability and for whom medical 26
1310+care is only occasional or incidental. 27
1311+… 28
1312+(1b) Ambulatory surgical facility. – A facility designed for the provision of a 29
1313+specialty ambulatory surgical program or a multispecialty ambulatory surgical 30
1314+program. An ambulatory surgical facility serves patients who require local, 31
1315+regional, or general anesthesia and a period of post-operative observation. An 32
1316+ambulatory surgical facility may only admit patients for a period of less than 33
1317+24 hours and must shall provide at least one designated operating room or 34
1318+gastrointestinal endoscopy room and at least one designated recovery room, 35
1319+have available the necessary equipment and trained personnel to handle 36
1320+emergencies, provide adequate quality assurance and assessment by an 37
1321+evaluation and review committee, and maintain adequate medical records for 38
1322+each patient. An ambulatory surgical facility may be operated as a part of a 39
1323+physician physician's or dentist's office, provided office so long as the facility 40
1324+is licensed under Part 4 of Article 6 of this Chapter, but the performance of 41
1325+incidental, limited ambulatory surgical procedures which that do not 42
1326+constitute an ambulatory surgical program and which that are performed in a 43
1327+physician's or dentist's office does not make that office an ambulatory surgical 44
1328+facility. 45
1329+(1c) Ambulatory surgical program. – A formal program for providing on a 46
1330+same-day basis those surgical procedures which that require local, regional, 47
1331+or general anesthesia and a period of post-operative observation to patients 48
1332+whose admission for more than 24 hours is determined, prior to surgery or 49
1333+gastrointestinal endoscopy, to be medically unnecessary. 50 General Assembly Of North Carolina Session 2025
1334+House Bill 481-First Edition Page 27
1335+(2) Bed capacity. – Space used exclusively for inpatient care, including space 1
1336+designed or remodeled for licensed inpatient beds even though temporarily 2
1337+not used for such these purposes. The number of beds to be counted in any a 3
1338+patient room shall be the maximum number for which adequate square footage 4
1339+is provided as established by rules of the Department except that single beds 5
1340+in single rooms are counted even if the room contains inadequate square 6
1341+footage. The term "bed capacity" This term also refers to the number of 7
1342+dialysis stations in kidney disease treatment centers, including freestanding 8
1343+dialysis units. 9
1344+… 10
1345+(2d) Capital expenditure. – An expenditure for a project, including but not limited 11
1346+to to, the cost of construction, engineering, and equipment which that, under 12
1347+generally accepted accounting principles principles, is not properly 13
1348+chargeable as an expense of operation and maintenance. Capital expenditure 14
1349+includes, in addition, the fair market value of an acquisition made by donation, 15
1350+lease, or comparable arrangement by which a person obtains equipment, the 16
1351+expenditure for which would have been considered a capital expenditure 17
1352+under this Article if the person had acquired it by purchase. 18
1353+… 19
1354+(3) Certificate of need. – A written order which that affords the person so 20
1355+designated as the legal proponent of the proposed project the opportunity to 21
1356+proceed with the development of the project. 22
1357+… 23
1358+(5) Change in bed capacity. – Any of the following: 24
1359+a. Any A relocation of health service facility beds, beds or dialysis 25
1360+stations from one licensed facility or campus to another. 26
1361+b. Any A redistribution of health service facility bed capacity among the 27
1362+categories of health service facility bed. 28
1363+c. Any An increase in the number of health service facility beds, beds or 29
1364+dialysis stations in kidney disease treatment centers, including 30
1365+freestanding dialysis units. 31
1366+… 32
1367+(5c) Chemical dependency treatment facility. – A public or private facility, or unit 33
1368+in a facility, which that is engaged in providing 24-hour a day 24-hour-a-day 34
1369+treatment for chemical dependency or a substance use disorder. This treatment 35
1370+may include detoxification, administration of a therapeutic regimen for the 36
1371+treatment of individuals with chemical dependence or substance use disorders, 37
1372+and related services. The facility or unit may be any of the following: 38
1373+… 39
1374+(7) Develop. – When used in connection with health services, means to undertake 40
1375+those activities which that will result in the offering of institutional health 41
1376+service or the incurring of a financial obligation in relation to the offering of 42
1377+such a the service. 43
1378+(7a) (Effective until November 21, 2026 – see note) Diagnostic center. – A 44
1379+freestanding facility, program, or provider, including but not limited to, 45
1380+physicians' offices, clinical laboratories, radiology centers, and mobile 46
1381+diagnostic programs, in which the total cost of all the medical diagnostic 47
1382+equipment utilized by the facility which cost that costs ten thousand dollars 48
1383+($10,000) or more exceeds three million dollars ($3,000,000). In determining 49
1384+whether the medical diagnostic equipment in a diagnostic center costs more 50
1385+than three million dollars ($3,000,000), the costs of the equipment, studies, 51 General Assembly Of North Carolina Session 2025
1386+Page 28 House Bill 481-First Edition
1387+surveys, designs, plans, working drawings, specifications, construction, 1
1388+installation, and other activities essential to acquiring and making operational 2
1389+the equipment shall be included. The capital expenditure for the equipment 3
1390+shall be is deemed to be the fair market value of the equipment or the cost of 4
1391+the equipment, whichever is greater. Beginning September 30, 2022, and on 5
1392+On September 30 of each year thereafter, year, the cost threshold amount in 6
1393+this subdivision shall be adjusted using the Medical Care Index component of 7
1394+the Consumer Price Index published by the U.S. Department of Labor for the 8
1395+12-month period preceding the previous September 1. 9
1396+… 10
1397+(7c) Gamma knife. – Equipment which that emits photon beams from a stationary 11
1398+radioactive cobalt source to treat lesions deep within the brain and is one type 12
1399+of stereotactic radiosurgery. 13
1400+… 14
1401+(7e) Health maintenance organization (HMO). – A public or private organization 15
1402+which that has received its certificate of authority under Article 67 of Chapter 16
1403+58 of the General Statutes and which that either is a qualified health 17
1404+maintenance organization under Section 1310(d) of the Public Health Service 18
1405+Act 42 U.S.C. § 300e-9, or satisfies all of the following: 19
1406+… 20
1407+b. Is compensated, except for copayments, for the provision of the basic 21
1408+health care services listed in sub-subdivision a. of this subdivision to 22
1409+enrolled participants by a payment which that is paid on a periodic 23
1410+basis without regard to the date the health care services are provided 24
1411+and which that is fixed without regard to the frequency, extent, or kind 25
1412+of health service actually provided. 26
1413+c. Provides physicians' services primarily (i) directly through physicians 27
1414+who are either employees or partners of such organizations, these 28
1415+organizations or (ii) through arrangements with individual physicians 29
1416+or one or more groups of physicians organized on a group practice or 30
1417+individual practice basis. 31
1418+… 32
1419+(9a) Health service. – An organized, interrelated activity that is medical, 33
1420+diagnostic, therapeutic, rehabilitative, or a combination thereof of those and 34
1421+that is integral to the prevention of disease or the clinical management of an 35
1422+individual who is sick or injured or who has a disability. "Health service" The 36
1423+term does not include administrative and other activities that are not integral 37
1424+to clinical management. 38
1425+(9b) (Effective until November 21, 2025 – see note) Health service facility. – A 39
1426+hospital; long-term care hospital; rehabilitation facility; nursing home facility; 40
1427+adult care home; kidney disease treatment center, including freestanding 41
1428+hemodialysis units; intermediate care facility for individuals with intellectual 42
1429+disabilities; home health agency office; diagnostic center; hospice office, 43
1430+hospice inpatient facility, or hospice residential care facility; and or 44
1431+ambulatory surgical facility. 45
1432+… 46
1433+(9c) Health service facility bed. – A bed licensed for use in a health service facility 47
1434+in the categories of (i) acute care beds; (iii) (ii) rehabilitation beds; (iv) (iii) 48
1435+nursing home beds; (v) (iv) intermediate care beds for individuals with 49
1436+intellectual disabilities; (vii) (v) hospice inpatient facility beds; (viii) (vi) 50 General Assembly Of North Carolina Session 2025
1437+House Bill 481-First Edition Page 29
1438+hospice residential care facility beds; (ix) (vii) adult care home beds; and (x) 1
1439+(viii) long-term care hospital beds. 2
3071440 … 3
308-(2) Verified affidavits Affidavits by two persons who are not related to the 4
309-petitioner or to each other by blood or marriage, that they know the character 5
310-and reputation of the petitioner in the community in which he or she lives, and 6
311-that the petitioner's character and reputation are good; 7
1441+(12) Home health agency. – A private organization or public agency, whether 4
1442+owned or operated by one or more persons or legal entities, which that 5
1443+furnishes or offers to furnish home health services. 6
1444+(12a) Home health services. – Items and services furnished to an individual by a 7
1445+home health agency, or by others under arrangements with such others made 8
1446+by the agency, on a visiting basis, and except for sub-subdivision e. of this 9
1447+subdivision, in a place of temporary or permanent residence used as the 10
1448+individual's home as follows: 11
1449+… 12
1450+d. Medical supplies, other than drugs and biologicals biologicals, and the 13
1451+use of medical appliances. 14
1452+e. Any of the items and services listed in this subdivision which that are 15
1453+provided on an outpatient basis under arrangements made by the home 16
1454+health agency at a hospital or nursing home facility hospital, nursing 17
1455+home facility, or rehabilitation center facility and the furnishing of 18
1456+which involves the use of equipment of such a nature that the items 19
1457+and services cannot readily be made available to the individual at 20
1458+home, or which that are furnished at the facility while the individual is 21
1459+there to receive any such the item or service, but not including 22
1460+transportation of the individual in connection with any such the item 23
1461+or service. 24
1462+… 25
1463+(13a) Hospice. – Any coordinated program of home care with provision for inpatient 26
1464+care for terminally ill patients and their families. This care is provided by a 27
1465+medically directed interdisciplinary team, directly or through an agreement 28
1466+under the direction of an identifiable hospice administration. A hospice 29
1467+program of care provides palliative and supportive medical and other health 30
1468+services to meet the physical, psychological, social, spiritual, and special 31
1469+needs of patients and their families, which families that are experienced during 32
1470+the final stages of terminal illness and during dying and bereavement. 33
1471+(13b) Hospice inpatient facility. – A freestanding licensed hospice facility or a 34
1472+designated inpatient unit in an existing health service facility which that 35
1473+provides palliative and supportive medical and other health services to meet 36
1474+the physical, psychological, social, spiritual, and special needs of terminally 37
1475+ill patients and their families in an inpatient setting. For purposes of this 38
1476+Article only, a hospital which that has a contractual agreement with a licensed 39
1477+hospice to provide inpatient services to a hospice patient as defined in 40
1478+G.S. 131E-201(4) G.S. 131E-201 and provides those services in a licensed 41
1479+acute care bed is not a hospice inpatient facility and is not subject to the 42
1480+requirements in sub-subdivision (5)b. of this section for hospice inpatient 43
1481+beds.the services provided in this manner are not a redistribution of health 44
1482+service facility bed capacity among the categories of health service facility 45
1483+bed. 46
1484+(13c) Hospice residential care facility. – A freestanding licensed hospice facility 47
1485+which that provides palliative and supportive medical and other health 48
1486+services to meet the physical, psychological, social, spiritual, and special 49
1487+needs of terminally ill patients and their families in a group residential setting. 50 General Assembly Of North Carolina Session 2025
1488+Page 30 House Bill 481-First Edition
1489+(13d) Hospital. – A public or private institution which that is primarily engaged in 1
1490+providing to inpatients, by or under supervision of physicians, diagnostic 2
1491+services and therapeutic services for medical diagnosis, treatment, and care of 3
1492+injured, disabled, or sick persons, or rehabilitation services for the 4
1493+rehabilitation of injured, disabled, or sick persons. The term includes all 5
1494+facilities licensed pursuant to G.S. 131E-77, except long-term care hospitals. 6
1495+… 7
1496+(14a) Intermediate care facility for individuals with intellectual disabilities. – 8
1497+Facilities licensed pursuant to Article 2 of Chapter 122C of the General 9
1498+Statutes for the purpose of providing health and habilitative services based on 10
1499+the developmental model and principles of normalization for individuals with 11
1500+intellectual disabilities, autism, cerebral palsy, epilepsy epilepsy, or related 12
1501+conditions. 13
1502+… 14
1503+(14e) Kidney disease treatment center. – A facility that is certified as an end-stage 15
1504+renal disease facility by the Centers for Medicare and Medicaid Services, 16
1505+Services of the United States Department of Health and Human Services, 17
1506+Services pursuant to 42 C.F.R. § 405. 18
1507+(14f) "Legacy Medical Care Facility" means a Legacy Medical Care Facility. – A 19
1508+facility that meets all of the following requirements: 20
1509+a. Is not presently operating. 21
1510+b. Has not continuously operated for at least the past six months. 22
1511+c. Within the last 24 months:months, both of the following: 23
1512+1. Was operated by a person holding a license under 24
1513+G.S. 131E-77; andG.S. 131E-77. 25
1514+… 26
1515+(14k) Long-term care hospital. – A hospital that has been classified and designated 27
1516+as a long-term care hospital by the Centers for Medicare and Medicaid 28
1517+Services, Services of the United States Department of Health and Human 29
1518+Services, Services pursuant to 42 C.F.R. § 412. 30
1519+… 31
1520+(14n) Main campus. – All Both of the following for the purposes of 32
1521+G.S. 131E-184(f) and (g) only: 33
1522+… 34
1523+(14o) (Effective until November 21, 2026 – see note) Major medical equipment. – 35
1524+A single unit or single system of components with related functions which that 36
1525+is used to provide medical and other health services and which that costs more 37
1526+than two million dollars ($2,000,000). In determining whether the major 38
1527+medical equipment costs more than two million dollars ($2,000,000), the costs 39
1528+of the equipment, studies, surveys, designs, plans, working drawings, 40
1529+specifications, construction, installation, and other activities essential to 41
1530+acquiring and making operational the major medical equipment shall be is 42
1531+included. The capital expenditure for the equipment shall be is deemed to be 43
1532+the fair market value of the equipment or the cost of the equipment, whichever 44
1533+is greater. Major medical equipment This term does not include replacement 45
1534+equipment as defined in this section. Beginning September 30, 2022, and on 46
1535+equipment. On September 30 of each year thereafter, year, the cost threshold 47
1536+amount in this subdivision shall be adjusted using the Medical Care Index 48
1537+component of the Consumer Price Index published by the U.S. Department of 49
1538+Labor for the 12-month period preceding the previous September 1. 50
1539+… 51 General Assembly Of North Carolina Session 2025
1540+House Bill 481-First Edition Page 31
1541+(15b) Neonatal intensive care services. – Those services provided by a health service 1
1542+facility to high-risk newborn infants who require constant nursing care, 2
1543+including but not limited to to, continuous cardiopulmonary and other 3
1544+supportive care. 4
1545+(16) New institutional health services. – Any of the following: 5
1546+… 6
1547+b. (Effective until November 21, 2025 – see note) Except as otherwise 7
1548+provided in G.S. 131E-184(e), the obligation by any a person of a 8
1549+capital expenditure exceeding four million dollars ($4,000,000) to 9
1550+develop or expand a health service or a health service facility, or which 10
1551+that relates to the provision of a health service. The cost of any studies, 11
1552+surveys, designs, plans, working drawings, specifications, and other 12
1553+activities, including staff effort and consulting and staff effort, 13
1554+consulting, and other services, essential to the acquisition, 14
1555+improvement, expansion, or replacement of any a plant or equipment 15
1556+with respect to which an expenditure is made shall be is included in 16
1557+determining if the expenditure exceeds four million dollars 17
1558+($4,000,000). Beginning September 30, 2022, and on On September 18
1559+30 of each year thereafter, year, the amount in this sub-subdivision 19
1560+shall be adjusted using the Medical Care Index component of the 20
1561+Consumer Price Index published by the U.S. Department of Labor for 21
1562+the 12-month period preceding the previous September 1. 22
1563+… 23
1564+c. Any A change in bed capacity. 24
1565+… 25
1566+e. A change in a project that was subject to certificate of need review and 26
1567+for which a certificate of need was issued, if the change is proposed 27
1568+during the development of the project or within one year after the 28
1569+project was completed. For purposes of this subdivision, a change in a 29
1570+project is a change of more than fifteen percent (15%) of the approved 30
1571+capital expenditure amount or the addition of a health service that is to 31
1572+be located in the facility, or portion thereof, of the facility, that was 32
1573+constructed or developed in the project. 33
1574+f. The development or offering of a health service as listed in this 34
1575+subdivision any of the following health services by or on behalf of any 35
1576+a person: 36
1577+… 37
1578+f1. The acquisition by purchase, donation, lease, transfer, or comparable 38
1579+arrangement of any of the following equipment by or on behalf of any 39
1580+a person: 40
1581+… 41
1582+l. The purchase, lease, or acquisition of any a health service facility, or 42
1583+portion thereof, of a health service facility, or a controlling interest in 43
1584+the health service facility or portion thereof, of the health service 44
1585+facility, if the health service facility was developed under a certificate 45
1586+of need issued pursuant to G.S. 131E-180. 46
1587+m. Any A conversion of nonhealth service facility beds to health service 47
1588+facility beds. 48
1589+n. The construction, development development, or other establishment of 49
1590+a hospice, hospice inpatient facility, or hospice residential care 50
1591+facility;facility. 51 General Assembly Of North Carolina Session 2025
1592+Page 32 House Bill 481-First Edition
1593+o. The opening of an additional office by an existing home health agency 1
1594+or hospice within its service area as defined by rules adopted by the 2
1595+Department; or the opening of any an office by an existing home health 3
1596+agency or hospice outside its service area as defined by rules adopted 4
1597+by the Department. 5
1598+p. The acquisition by purchase, donation, lease, transfer, or comparable 6
1599+arrangement by any a person of major medical equipment. 7
3121600 … 8
313-(a1) No person as to whom such order was entered shall be held thereafter under any 9
314-provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the 10
315-person's failures to recite or acknowledge such arrest, or indictment or information, or trial in 11
316-response to any inquiry made of him or her for any purpose. This subsection shall The effect of 12
317-an expunction under this section is governed by G.S. 15A-153, except that the protected 13
318-nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 14
319-has been convicted of a subsequent criminal offense. 15
320-…." 16
321-SECTION 3.(e) G.S. 15A-145.3 reads as rewritten: 17
322-"§ 15A-145.3. Expunction of records for first offenders not over 21 years of age at the time 18
323-of the offense of certain toxic vapors offenses. 19
324-(a) Whenever a person is discharged and the proceedings against the person dismissed 20
325-under G.S. 90-113.14(a) or (a1), such person, if he or she was not over 21 years of age at the time 21
326-of the offense, may apply to the court of the county where charged for an order to expunge from 22
327-all official records, other than the confidential files retained under G.S. 15A-151, all recordation 23
328-relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal 24
329-and discharge pursuant to this section. The applicant shall attach to the petition the following: 25
1601+s. The furnishing of mobile medical equipment to any a person to provide 9
1602+health services in North Carolina, which Carolina that was not in use 10
1603+in North Carolina prior to the adoption of this provision, March 18, 11
1604+1993, if the equipment would otherwise be subject to review in 12
1605+accordance with sub-subdivision f1. of this subdivision or 13
1606+sub-subdivision p. of this subdivision if it had been acquired in North 14
1607+Carolina. 15
1608+t. Repealed by Session Laws 2001-242, s. 4, effective June 23, 2001. 16
1609+u. The construction, development, establishment, increase in the number, 17
1610+or relocation of an operating room or gastrointestinal endoscopy room 18
1611+in a licensed health service facility, other than the relocation of an 19
1612+operating room or gastrointestinal endoscopy room within the same 20
1613+building or on the same grounds or to grounds not separated by more 21
1614+than a public right-of-way adjacent to the grounds where the operating 22
1615+room or gastrointestinal endoscopy room is currently located. 23
1616+… 24
1617+(17a) Nursing care. – Any of the following: 25
3301618 … 26
331-(2) Verified affidavits Affidavits by two persons who are not related to the 27
332-petitioner or to each other by blood or marriage, that they know the character 28
333-and reputation of the petitioner in the community in which the petitioner lives, 29
334-and that his or her character and reputation are good; 30
335-… 31
336-(b1) No person as to whom such order has been entered shall be held thereafter under any 32
337-provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the 33
338-person's failures to recite or acknowledge such arrest, or indictment or information, or trial in 34
339-response to any inquiry made of him or her for any purpose. This subsection shall The effect of 35
340-an expunction under this section is governed by G.S. 15A-153, except that the protected 36
341-nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 37
342-has been convicted of a subsequent criminal offense. 38
343-…." 39
344-SECTION 3.(f) G.S. 15A-145.4 reads as rewritten: 40
345-"§ 15A-145.4. Expunction of records for first offenders who are under 18 years of age at 41
346-the time of the commission of a nonviolent felony. 42
347-… 43
348-(c) Whenever any person who had not yet attained the age of 18 years at the time of the 44
349-commission of the offense and has not previously been convicted of any felony or misdemeanor 45
350-other than a traffic violation under the laws of the United States or the laws of this State or any 46
351-other state pleads guilty to or is guilty of a nonviolent felony, the person may file a petition in 47
352-the court of the county where the person was convicted for expunction of the nonviolent felony 48
353-from the person's criminal record. The petition shall not be filed earlier than four years after the 49
354-date of the conviction or when any active sentence, period of probation, and post-release 50
355-supervision has been served, whichever occurs later. The person shall also perform at least 100 51 General Assembly Of North Carolina Session 2025
356-Page 8 House Bill 481-Second Edition
357-hours of community service, preferably related to the conviction, before filing a petition for 1
358-expunction under this section. The petition shall contain the following: 2
1619+c. Health-related care and services provided on a regular basis to 27
1620+individuals who who, because of their mental or physical condition 28
1621+condition, require care and services above the level of room and board, 29
1622+which board that can be made available to them only through 30
1623+institutional facilities. 31
1624+These are services which that are not primarily for the care and treatment 32
1625+of mental diseases. 33
1626+… 34
1627+(20) Project or capital expenditure project. – A proposal to undertake a capital 35
1628+expenditure that results in the offering of a new institutional health service. A 36
1629+project, or capital expenditure project, or proposed project may refer to the 37
1630+project from its earliest planning stages up through the point at which the 38
1631+specified new institutional health service may be offered. In the case of facility 39
1632+construction, the point at which the new institutional health service may be 40
1633+offered must shall take place after the facility is capable of being fully licensed 41
1634+and operated for its intended use, and at that time it shall be considered a health 42
1635+service facility. 43
1636+(21) Psychiatric facility. – A public or private facility licensed pursuant to Article 44
1637+2 of Chapter 122C of the General Statutes and which that is primarily engaged 45
1638+in providing to inpatients, by or under the supervision of a physician, 46
1639+psychiatric services for the diagnosis and treatment of individuals with mental 47
1640+illnesses. 48
1641+… 49
1642+(22) Rehabilitation facility. – A public or private inpatient facility which that is 50
1643+operated for the primary purpose of assisting in the rehabilitation of 51 General Assembly Of North Carolina Session 2025
1644+House Bill 481-First Edition Page 33
1645+individuals with disabilities through an integrated program of medical and 1
1646+other services which are provided under competent, professional supervision. 2
1647+(22a) Replacement equipment. – Equipment that costs less than three million dollars 3
1648+($3,000,000) and is purchased for the sole purpose of replacing comparable 4
1649+medical equipment currently in use which that will be sold or otherwise 5
1650+disposed of when replaced. In determining whether the replacement 6
1651+equipment costs less than three million dollars ($3,000,000) ($3,000,000), the 7
1652+costs of equipment, studies, surveys, designs, plans, working drawings, 8
1653+specifications, construction, installation, and other activities essential to 9
1654+acquiring and making operational the replacement equipment shall be is 10
1655+included. The capital expenditure for the equipment shall be is deemed to be 11
1656+the fair market value of the equipment or the cost of the equipment, whichever 12
1657+is greater. Beginning September 30, 2023, and on On September 30 of each 13
1658+year thereafter, year, the cost threshold amount in this subdivision shall be 14
1659+adjusted using the Medical Care Index component of the Consumer Price 15
1660+Index published by the U.S. Department of Labor for the 12-month period 16
1661+preceding the previous September 1. 17
1662+… 18
1663+(24a) Service area. – The area of the State, as defined in the State Medical Facilities 19
1664+Plan or in rules adopted by the Department, which that receives services from 20
1665+a health service facility. 21
1666+… 22
1667+(25) State Medical Facilities Plan. – The plan prepared in accordance with 23
1668+G.S. 131E-176.2 by the Department of Health and Human Services and the 24
1669+North Carolina State Health Coordinating Council, Council and approved by 25
1670+the Governor. In preparing the Plan, the Department and the State Health 26
1671+Coordinating Council shall maintain a mailing list of persons who have 27
1672+requested notice of public hearings regarding the Plan. Not less than 15 days 28
1673+prior to a scheduled public hearing, the Department shall notify persons on its 29
1674+mailing list of the date, time, and location of the hearing. The Department 30
1675+shall hold at least one public hearing prior to the adoption of the proposed Plan 31
1676+and at least six public hearings after the adoption of the proposed Plan by the 32
1677+State Health Coordinating Council. The Council shall accept oral and written 33
1678+comments from the public concerning the Plan. 34
1679+…." 35
1680+SECTION 11.2.(b) Article 9 of Chapter 131E of the General Statutes is amended by 36
1681+adding a new section to read: 37
1682+"§ 131E-176.2. State Medical Facilities Plan. 38
1683+The Department of Health and Human Services and the North Carolina State Health 39
1684+Coordinating Council shall prepare and present to the Governor for approval the State Medical 40
1685+Facilities Plan. In preparing the Plan, the Department and the State Health Coordinating Council 41
1686+shall maintain a mailing list of persons that have requested notice of public hearings regarding 42
1687+the Plan. Not less than 15 days prior to a scheduled public hearing, the Department shall notify 43
1688+persons on its mailing list of the date, time, and location of the hearing. The Department shall 44
1689+hold at least one public hearing prior to the adoption of the proposed Plan and at least six public 45
1690+hearings after the adoption of the proposed Plan by the State Health Coordinating Council. The 46
1691+Council shall accept oral and written comments from the public concerning the Plan." 47
1692+SECTION 11.2.(c) G.S. 131E-177 reads as rewritten: 48
1693+"§ 131E-177. Department of Health and Human Services is designated State Health 49
1694+Planning and Development Agency; powers and duties. 50 General Assembly Of North Carolina Session 2025
1695+Page 34 House Bill 481-First Edition
1696+The Department of Health and Human Services is designated as the State Health Planning 1
1697+and Development Agency for the State of North Carolina, Carolina and is empowered to exercise 2
1698+has all of the following powers and duties: 3
1699+(1) To establish Establish standards and criteria or plans required to carry out the 4
1700+provisions and purposes of this Article and to adopt rules pursuant to Chapter 5
1701+150B of the General Statutes, Statutes to carry out the purposes and provisions 6
1702+of this Article;Article. 7
1703+(2) Adopt, amend, and repeal such rules and regulations, consistent with the laws 8
1704+of this State, rules, as may be required by the federal government for 9
1705+grants-in-aid for health service facilities and health planning which that may 10
1706+be made available by the federal government. This section shall be liberally 11
1707+construed in order that the State and its citizens may benefit from such 12
1708+grants-in-aid;these grants-in-aid. 13
1709+(3) Define, by rule, procedures for submission of periodic reports by persons or 14
1710+health service facilities subject to agency review under this Article;Article. 15
1711+(4) Develop policy, criteria, and standards for health service facilities planning; 16
1712+shall planning. The Department shall conduct statewide registration and 17
1713+inventories of and make determinations of need for health service facilities, 18
1714+health services as specified in G.S. 131E-176(16)f., and equipment as 19
1715+specified in G.S. 131E-176(16)f1., which shall include including 20
1716+consideration of adequate geographic location of equipment and services; and 21
1717+develop a State Medical Facilities Plan;Plan. 22
1718+(5) Implement, by rule, criteria for project review;review. 23
1719+(6) Have the power to grant, Grant, deny, or withdraw a certificate of need and to 24
1720+impose such sanctions as are provided for by this Article;Article. 25
1721+(7) Solicit, accept, hold hold, and administer on behalf of the State any grants or 26
1722+devises of money, securities securities, or property to the Department for use 27
1723+by the Department in the administration of this Article; andArticle. 28
1724+(8) Repealed by Session Laws 1987, c. 511, s. 1. 29
1725+(9) Collect fees for submitting applications for certificates of need. 30
1726+(10) The authority to review Review all records in any recording medium of any 31
1727+person or health service facility subject to agency review under this Article 32
1728+which that pertain to construction and acquisition activities, staffing staffing, 33
1729+or costs and charges for patient care, including but not limited to, construction 34
1730+contracts, architectural contracts, consultant contracts, purchase orders, 35
1731+cancelled checks, accounting and financial records, debt instruments, loan and 36
1732+security agreements, staffing records, utilization statistics statistics, and any 37
1733+other records the Department deems to be reasonably necessary to determine 38
1734+compliance with this Article. 39
1735+The Secretary of Health and Human Services shall have has final decision-making authority 40
1736+with regard to all functions described in this section." 41
1737+SECTION 11.3.(a) G.S. 131E-176(7a), as amended by Section 11.2 of this act, reads 42
1738+as rewritten: 43
1739+"(7a) (Effective November 21, 2026 – see note) Diagnostic center. – A 44
1740+freestanding facility, program, or provider, including but not limited to, 45
1741+physicians' offices, clinical laboratories, radiology centers, and mobile 46
1742+diagnostic programs, in which the total cost of all the medical diagnostic 47
1743+equipment utilized by the facility that costs ten thousand dollars ($10,000) or 48
1744+more exceeds three million dollars ($3,000,000). No facility, program, or 49
1745+provider, including, including but not limited to, physicians' offices, clinical 50
1746+laboratories, radiology centers, or mobile diagnostic programs, shall be 51 General Assembly Of North Carolina Session 2025
1747+House Bill 481-First Edition Page 35
1748+deemed a diagnostic center solely by virtue of having a magnetic resonance 1
1749+imaging scanner in a county with a population of greater than 125,000 2
1750+according to the 2020 federal decennial census or any subsequent federal 3
1751+decennial census. In determining whether the medical diagnostic equipment 4
1752+in a diagnostic center costs more than three million dollars ($3,000,000), the 5
1753+costs of the equipment, studies, surveys, designs, plans, working drawings, 6
1754+specifications, construction, installation, and other activities essential to 7
1755+acquiring and making operational the equipment shall be included. The capital 8
1756+expenditure for the equipment is deemed to be the fair market value of the 9
1757+equipment or the cost of the equipment, whichever is greater. On September 10
1758+30 of each year, the cost threshold amount in this subdivision shall be adjusted 11
1759+using the Medical Care Index component of the Consumer Price Index 12
1760+published by the U.S. Department of Labor for the 12–month period preceding 13
1761+the previous September 1." 14
1762+SECTION 11.3.(b) G.S. 131E-176(14o), as amended by Section 11.2 of this act, 15
1763+reads as rewritten: 16
1764+"(14o) (Effective November 21, 2026 – see note) Major medical equipment. – A 17
1765+single unit or single system of components with related functions that is used 18
1766+to provide medical and other health services and that costs more than two 19
1767+million dollars ($2,000,000). In determining whether the major medical 20
1768+equipment costs more than two million dollars ($2,000,000), the costs of the 21
1769+equipment, studies, surveys, designs, plans, working drawings, specifications, 22
1770+construction, installation, and other activities essential to acquiring and 23
1771+making operational the major medical equipment is included. The capital 24
1772+expenditure for the equipment is deemed to be the fair market value of the 25
1773+equipment or the cost of the equipment, whichever is greater. This term does 26
1774+not include replacement equipment. equipment or magnetic resonance 27
1775+imaging scanners in counties with a population greater than 125,000 according 28
1776+to the 2020 federal decennial census or any subsequent federal decennial 29
1777+census. On September 30 of each year, the cost threshold amount in this 30
1778+subdivision shall be adjusted using the Medical Care Index component of the 31
1779+Consumer Price Index published by the U.S. Department of Labor for the 32
1780+12-month period preceding the previous September 1." 33
1781+SECTION 11.3.(c) G.S. 131E-176(16)f1.7., as amended by Section 11.2 of this act, 34
1782+reads as rewritten: 35
1783+"7. (Effective November 21, 2026 – see note) Magnetic 36
1784+resonance imaging scanner. This sub-sub-subdivision applies 37
1785+only to counties with a population of 125,000 or less fewer 38
1786+according to the 2020 federal decennial census or any 39
1787+subsequent federal decennial census." 40
1788+SECTION 11.3.(d) This section becomes effective November 21, 2026. 41
1789+SECTION 11.4.(a) G.S. 131E-176(9b), as amended by Section 11.2 of this act, reads 42
1790+as rewritten: 43
1791+"(9b) (Effective November 21, 2025 – see note) Health service facility. – A 44
1792+hospital; long-term care hospital; rehabilitation facility; nursing home facility; 45
1793+adult care home; kidney disease treatment center, including freestanding 46
1794+hemodialysis units; intermediate care facility for individuals with intellectual 47
1795+disabilities; home health agency office; diagnostic center; hospice office, 48
1796+hospice inpatient facility, or hospice residential care facility; or ambulatory 49
1797+surgical facility. The term "health service facility" This term does not include 50
1798+a qualified urban ambulatory surgical facility." 51 General Assembly Of North Carolina Session 2025
1799+Page 36 House Bill 481-First Edition
1800+SECTION 11.4.(b) This section becomes effective November 21, 2025. 1
1801+SECTION 12. G.S. 150B-1 reads as rewritten: 2
1802+"§ 150B-1. Policy and scope. 3
1803+(a) Purpose. – This Chapter establishes a uniform system of administrative rule making 4
1804+rulemaking and adjudicatory procedures for agencies. The procedures ensure that the functions 5
1805+of rule making, rulemaking, investigation, advocacy, and adjudication are not all performed by 6
1806+the same person in the administrative process. 7
1807+(b) Rights. – This Chapter confers procedural rights. 8
1808+(c) Full Exemptions. – This Chapter applies to every agency except:except the following: 9
1809+… 10
1810+(d) Exemptions from Rule Making. – Rulemaking. – Article 2A of this Chapter does not 11
1811+apply to the following: 12
1812+(1) The Commission. 13
1813+(2) Repealed by Session Laws 2000-189, s. 14, effective July 1, 2000. 14
1814+(3) Repealed by Session Laws 2001-474, s. 34, effective November 29, 2001. 15
1815+(4) The Department of Revenue, with respect to the notice and hearing 16
1816+requirements contained in Part 2 of Article 2A. 2A of this Chapter. With 17
1817+respect to the Secretary of Revenue's authority to redetermine the State net 18
1818+taxable income of a corporation under G.S. 105-130.5A, the Department is 19
1819+subject to the rule-making rulemaking requirements of G.S. 105-262.1. 20
1820+(5) The North Carolina Global TransPark Authority with respect to the 21
1821+acquisition, construction, operation, or use, including fees or charges, of any 22
1822+portion of a cargo airport complex. 23
1823+(6) The Department of Public Safety, Adult Correction, with respect to matters 24
1824+relating to executions under Article 19 of Chapter 15 of the General Statutes 25
1825+and matters relating solely to persons in its custody or under its supervision, 26
1826+including prisoners, probationers, and parolees. 27
1827+… 28
1828+(26) The Board of Agriculture in the Department of Agriculture and Consumer 29
1829+Services with respect to the following: 30
1830+a. Annual admission fees for the State Fair. 31
1831+b. Operating hours, admission fees, or related activity fees at State 32
1832+forests. 33
1833+The Board shall annually post the admission fee and operating hours schedule 34
1834+on its Web site website and provide notice of the schedule, along with a 35
1835+citation to this section, to all persons named on the mailing list maintained 36
1836+pursuant to G.S. 150B-21.2(d). 37
1837+c. Fee schedules for the preparation of forest management plans 38
1838+developed pursuant to G.S. 106-1004. 39
1839+d. Fees for State phytosanitary certificates. 40
1840+(27) The Department of Natural and Cultural Resources with respect to operating 41
1841+hours, admission fees, or related activity fees at:at the following: 42
1842+a. The North Carolina Zoological Park pursuant to G.S. 143B-135.205. 43
1843+b. State parks pursuant to G.S. 143B-135.16. 44
1844+c. The North Carolina Aquariums pursuant to G.S. 143B-135.188. 45
1845+d. The North Carolina Museum of Natural Sciences. 46
1846+The exclusion from rule making rulemaking for the setting of operating hours 47
1847+set forth in this subdivision (i) shall does not apply to a decision to eliminate 48
1848+all public operating hours for the sites and facilities listed and (ii) does not 49
1849+authorize any of the sites and facilities listed in this subdivision that do not 50 General Assembly Of North Carolina Session 2025
1850+House Bill 481-First Edition Page 37
1851+currently charge an admission fee to charge an admission fee until authorized 1
1852+by an act of the General Assembly. 2
3591853 … 3
360-(2) Verified affidavits Affidavits of two persons who are not related to the 4
361-petitioner or to each other by blood or marriage, that they know the character 5
362-and reputation of the petitioner in the community in which the petitioner lives 6
363-and that the petitioner's character and reputation are good. 7
364-… 8
365-(f) No person as to whom an order has been entered pursuant to subsection (e) of this 9
366-section shall be held thereafter under any provision of any laws to be guilty of perjury or 10
367-otherwise giving a false statement by reason of that person's failure to recite or acknowledge the 11
368-arrest, indictment, information, trial, or conviction. This subsection shall The effect of an 12
369-expunction under this section is governed by G.S. 15A-153, except that the protected 13
370-nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 14
371-has been convicted of a subsequent criminal offense. 15
372-…." 16
373-SECTION 3.(g) G.S. 15A-145.6 reads as rewritten: 17
374-"§ 15A-145.6. Expunctions for certain defendants convicted of prostitution. 18
375-… 19
376-(c) The petition shall contain all of the following: 20
377-… 21
378-(2) Verified affidavits Affidavits of two persons, who are not related to the 22
379-petitioner or to each other by blood or marriage, that they know the character 23
380-and reputation of the petitioner in the community in which the petitioner lives 24
381-and that the petitioner's character and reputation are good. 25
382-… 26
383-(g) No person as to whom an order has been entered pursuant to subsection (f) of this 27
384-section shall be held thereafter under any provision of any laws to be guilty of perjury or 28
385-otherwise giving a false statement by reason of that person's failure to recite or acknowledge the 29
386-arrest, indictment, information, trial, or conviction. This subsection shall The effect of an 30
387-expunction under this section is governed by G.S. 15A-153, except that the protected 31
388-nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 32
389-has been convicted of a subsequent criminal offense. 33
390-…." 34
391-SECTION 3.(h) G.S. 15A-145.7 reads as rewritten: 35
392-"§ 15A-145.7. Expunction of records for first offenders under 20 years of age at the time of 36
393-the offense of certain offenses. 37
394-(a) Whenever a person is discharged, and the proceedings against the person dismissed, 38
395-pursuant to G.S. 14-277.8, and the person was under 20 years of age at the time of the offense, 39
396-the person may apply to the court of the county where charged for an order to expunge from all 40
397-official records, other than the confidential files retained under G.S. 15A-151, all recordation 41
398-relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal 42
399-and discharge pursuant to this section. The applicant shall attach to the petition the following: 43
400-… 44
401-(2) Verified affidavits Affidavits by two persons who are not related to the 45
402-petitioner or to each other by blood or marriage, that they know the character 46
403-and reputation of the petitioner in the community in which he or she lives, and 47
404-that the petitioner's character and reputation are good;good. 48
405-… 49
406-(b) No person as to whom such order was entered shall be held thereafter under any 50
407-provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the 51 General Assembly Of North Carolina Session 2025
408-House Bill 481-Second Edition Page 9
409-person's failures to recite or acknowledge such arrest, or indictment or information, or trial in 1
410-response to any inquiry made of him or her for any purpose. This subsection shall The effect of 2
411-an expunction under this section is governed by G.S. 15A-153, except that the protected 3
412-nondisclosure under G.S. 15A-153(b) does not apply to a sentencing hearing when the person 4
413-has been convicted of a subsequent criminal offense. 5
414-…." 6
415-SECTION 3.(i) G.S. 15A-145.8 reads as rewritten: 7
416-"§ 15A-145.8. Expunction of records when charges are remanded to district court for 8
417-juvenile adjudication. 9
418-(a) Upon remand pursuant to G.S. 7B-2200(c) or G.S. 7B-2200.5(d) or removal pursuant 10
419-to G.S. 15A-960, the court shall order expunction of all remanded or removed charges. No person 11
420-as to whom such an order has been entered shall be held thereafter under any provision of any 12
421-law to be guilty of perjury, or to be guilty of otherwise giving a false statement or response to 13
422-any inquiry made for any purpose, by reason of his or her failure to recite or acknowledge any 14
423-expunged entries concerning apprehension or trial.The effect of an expunction under this section 15
424-is governed by G.S. 15A-153. 16
425-…." 17
426-SECTION 3.(j) G.S. 15A-145.8A reads as rewritten: 18
427-"§ 15A-145.8A. Expunction of records for offenders under the age of 18 at the time of 19
428-commission of certain misdemeanors and felonies upon completion of the 20
429-sentence. 21
430-… 22
431-(f) No person as to whom such order has been entered shall be held thereafter under any 23
432-provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 24
433-that person's failure to recite or acknowledge such arrest, or indictment, information, or trial, or 25
434-response to any inquiry made of the person for any purpose.The effect of an expunction under 26
435-this section is governed by G.S. 15A-153. 27
436-…." 28
437-SECTION 3.(k) G.S. 15A-145.9 reads as rewritten: 29
438-"§ 15A-145.9. Expunctions of certain offenses committed by human trafficking victims. 30
439-… 31
440-(g) Effect. – No person as to whom an order has been entered pursuant to subsection (f) 32
441-of this section shall be held thereafter under any provision of any laws to be guilty of perjury or 33
442-otherwise giving false statement by reason of that person's failure to recite or acknowledge the 34
443-arrest, indictment, information, trial, or conviction.The effect of an expunction under this section 35
444-is governed by G.S. 15A-153. 36
445-Persons required by State law to obtain a criminal history record check on a prospective 37
446-employee shall not be deemed to have knowledge of any convictions expunged under this section. 38
447-…." 39
448-SECTION 3.(l) G.S. 15A-146 reads as rewritten: 40
449-"§ 15A-146. Expunction of records when charges are dismissed or there are findings of not 41
450-guilty. 42
451-… 43
452-(a3) Effect of Expunction. – Except as provided in G.S. 15A-151.5(b)(5), no person as to 44
453-whom an order has been entered by a court or by operation of law under this section shall be held 45
454-thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 46
455-giving a false statement or response to any inquiry made for any purpose, by reason of the 47
456-person's failure to recite or acknowledge any expunged entries concerning apprehension or 48
457-trial.The effect of an expunction under this section is governed by G.S. 15A-153. 49
458-…." 50
459-SECTION 3.(m) G.S. 15A-147 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
460-Page 10 House Bill 481-Second Edition
461-"§ 15A-147. Expunction of records when charges are dismissed or there are findings of not 1
462-guilty as a result of identity theft or mistaken identity. 2
463-… 3
464-(b) No person as to whom such an order has been entered under this section shall be held 4
465-thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 5
466-giving a false statement or response to any inquiry made for any purpose, by reason of the 6
467-person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 7
468-or trial.The effect of an expunction under this section is governed by G.S. 15A-153. 8
469-…." 9
470-SECTION 3.(n) G.S. 15A-149 reads as rewritten: 10
471-"§ 15A-149. Expunction of records when pardon of innocence is granted. 11
1854+(e) Exemptions From Contested Case Provisions. – The contested case provisions of this 4
1855+Chapter apply to all agencies and all proceedings not expressly exempted from the Chapter. The 5
1856+contested case provisions of this Chapter do not apply to the following: 6
1857+… 7
1858+(5) Hearings required pursuant to the Rehabilitation Act of 1973, (Public Law 8
1859+93-122), as amended and federal regulations promulgated thereunder. adopted 9
1860+under it. G.S. 150B-51(a) is considered a contested case hearing provision that 10
1861+does not apply to these hearings. 11
4721862 … 12
473-(c) No person as to whom such an order has been entered under this section shall be held 13
474-thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise 14
475-giving a false statement or response to any inquiry made for any purpose, by reason of the 15
476-person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, 16
477-or trial.The effect of an expunction under this section is governed by G.S. 15A-153." 17
478-SECTION 3.(o) G.S. 15A-153 reads as rewritten: 18
479-"§ 15A-153. Effect of expunction; prohibited practices by employers, educational 19
480-institutions, agencies of State and local governments. 20
481-(a) Purpose. – The purpose of this section is to clear the public record of any entry of any 21
482-arrest, criminal charge, or criminal conviction that has been expunged so that (i) the person who 22
483-is entitled to and obtains receives the expunction may omit reference to the charges or convictions 23
484-to potential employers and others and (ii) a records check for prior arrests and convictions will 24
485-not disclose the expunged entries. Nothing in this section shall be construed to prohibit an 25
486-employer from asking a job applicant about criminal charges or convictions that have not been 26
487-expunged and are part of the public record. 27
488-(b) Nondisclosure Protected. – No person as to whom an order of expunction has been 28
489-entered who receives an expunction pursuant to this Article shall be held thereafter under any 29
490-provision of any laws to be is guilty of perjury or otherwise giving a false statement by reason of 30
491-that person's failure following expunction to recite or acknowledge any the expunged arrest, 31
492-apprehension, charge, indictment, information, trial, or conviction in response to any inquiry 32
493-made of him or her the person for any purpose other than as provided in subsection (e) of this 33
494-section. 34
495-…." 35
496-SECTION 4. G.S. 48-3-309 reads as rewritten: 36
497-"§ 48-3-309. Mandatory preplacement criminal checks of prospective adoptive parents 37
498-seeking to adopt a minor who is in the custody or placement responsibility of a 38
499-county department of social services and mandatory preplacement criminal 39
500-checks of all individuals 18 years of age or older who reside in the prospective 40
501-adoptive home.history checks. 41
502-(a) The Department shall ensure that the criminal histories of all prospective adoptive 42
503-parents seeking to adopt a minor who is in the custody or placement responsibility of a county 43
504-department of social services and the criminal histories of all individuals 18 years of age or older 44
505-who reside in the prospective adoptive home are checked prior to placement and, based on the 45
506-criminal history, a determination is made as to the prospective adoptive parent's fitness to have 46
507-responsibility for the safety and well-being of children and whether other individuals required to 47
508-be checked are fit for an adoptive child to reside with them in the home. The Department shall 48
509-ensure that all individuals required to be checked are checked prior to placement for county, state, 49
510-and federal criminal histories. 50 General Assembly Of North Carolina Session 2025
511-House Bill 481-Second Edition Page 11
512-(b) A county department of social services shall issue an unfavorable preplacement 1
513-assessment to a prospective adoptive parent if an individual required to submit to a criminal 2
514-history check pursuant to subsection (a) of this section has a criminal history. A county 3
515-department of social services shall issue an unfavorable preplacement assessment to a 4
516-prospective adoptive parent if the county department of social services determines, pursuant to 5
517-G.S. 48-3-303(e), that, based on other criminal convictions, whether felony or misdemeanor, the 6
518-prospective adoptive parent is unfit to have responsibility for the safety and well-being of 7
519-children or other individuals required to be checked are unfit for an adoptive child to reside with 8
520-them in the home. 9
521-histories 10
522-(c) The State Bureau of Investigation shall provide to the Department of Health and 11
523-Human Services the criminal history of any individual required to be checked under subsection 12
524-(a) of this section as requested by the Department and obtained from the State and National 13
525-Repositories of Criminal Histories. The Department shall provide to the State Bureau of 14
526-Investigation, along with the request, the fingerprints of any individual to be checked, any 15
527-additional information required by the State Bureau of Investigation, and a form consenting to 16
528-the check of the criminal record and to the use of fingerprints and other identifying information 17
529-required by the State or National Repositories signed by the individual to be checked. The 18
530-fingerprints of any individual to be checked shall be used by the State Bureau of Investigation 19
531-for a search of the State's criminal history record file, and the State Bureau of Investigation shall 20
532-forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history 21
533-record check. 22
534-(d) At the time of the request for a preplacement assessment or at a subsequent time prior 23
535-to placement, any individual whose criminal history is to be checked shall be furnished with a 24
536-statement substantially similar to the following: 25
537- 26
538-"NOTICE 27
539- 28
540-MANDATORY CRIMINAL HISTORY CHECK: NORTH CAROLINA LAW 29
541-REQUIRES THAT A CRIMINAL HISTORY CHECK BE CONDUCTED PRIOR TO 30
542-PLACEMENT ON PROSPECTIVE ADOPTIVE PARENTS SEEKING TO ADOPT A 31
543-MINOR WHO IS IN THE CUSTODY OR PLACEMENT RESPONSIBILITY OF A 32
544-COUNTY DEPARTMENT OF SOCIAL SERVICES AND ON ALL PERSONS 18 33
545-YEARS OF AGE OR OLDER WHO RESIDE IN THE PROSPECTIVE ADOPTIVE 34
546-HOME. 35
547-"Criminal history" means a county, State, or federal conviction of a felony by a court of 36
548-competent jurisdiction or a pending felony indictment of a crime for child abuse or 37
549-neglect, spousal abuse, a crime against a child, including child pornography, or for a crime 38
550-involving violence, including rape, sexual assault, or homicide, other than physical 39
551-assault or battery; a county, State, or federal conviction of a felony by a court of 40
552-competent jurisdiction or a pending felony indictment for physical assault, battery, or a 41
553-drug-related offense, if the offense was committed within the past five years; or similar 42
554-crimes under federal law or under the laws of other states. Your fingerprints will be used 43
555-to check the criminal history records of the State Bureau of Investigation (SBI) and the 44
556-Federal Bureau of Investigation (FBI). 45
557-If it is determined, based on your criminal history, that you are unfit to have responsibility 46
558-for the safety and well-being of children or have an adoptive child reside with you, you 47
559-shall have the opportunity to complete, or challenge the accuracy of, the information 48
560-contained in the SBI or FBI identification records. 49
561-If the prospective adoptive parent is denied a favorable preplacement assessment by a 50
562-county department of social services as a result of a criminal history check as required 51 General Assembly Of North Carolina Session 2025
563-Page 12 House Bill 481-Second Edition
564-under G.S. 48-3-309(a), the prospective adoptive parent may request a review of the 1
565-assessment pursuant to G.S. 48-3-308(a). 2
566-Any person who intentionally falsifies any information required to be furnished to 3
567-conduct the criminal history is guilty of a Class 2 misdemeanor." 4
568- 5
569-Refusal to consent to a criminal history check by any individual required to be checked under 6
570-G.S. 48-3-309(a) subsection (a) of this section is grounds for the issuance by a county department 7
571-of social services of an unfavorable preplacement assessment. Any person who intentionally 8
572-falsifies any information required to be furnished to conduct the criminal history is guilty of a 9
573-Class 2 misdemeanor. 10
574-… 11
575-(g) There is no liability for negligence on the part of a State or local agency, or the 12
576-employees of a State or local agency, arising from any action taken or omission by any of them 13
577-in carrying out the provisions of this section. The immunity established by this subsection shall 14
578-does not extend to gross negligence, wanton conduct, or intentional wrongdoing that would 15
579-otherwise be actionable. The immunity established by this subsection shall be is deemed to have 16
580-been waived to the extent of indemnification by insurance, indemnification under Article 31A of 17
581-Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the 18
582-Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes. 19
583-(h) The State Bureau of Investigation shall perform the State and national criminal history 20
584-checks on prospective adoptive parents seeking to adopt a minor in the custody or placement 21
585-responsibility of a county department of social services and all individuals 18 years of age or 22
586-older who reside in the prospective adoptive home and shall charge the Department of Health 23
587-and Human Services a reasonable fee only for conducting the checks of the national criminal 24
588-history records authorized required by this section. The Division of Social Services, Services of 25
589-the Department of Health and Human Services, Services shall bear the costs of implementing 26
590-this section." 27
591-SECTION 5.(a) G.S. 58-36-43 reads as rewritten: 28
592-"§ 58-36-43. Optional approved program enhancements authorized not altering coverage 29
593-under not within Rate Bureau jurisdiction. 30
594-(a) Member companies writing private passenger automobile, homeowners', dwelling, or 31
595-residential private flood insurance under this Article may incorporate optional enhancements to 32
596-their automobile, homeowners', dwelling, and residential private flood these programs as an 33
597-endorsement to an automobile, homeowners', dwelling, or residential private flood policy issued 34
598-under this Article a policy if the insurer has filed the proposed enhancement enhancements with 35
599-the Commissioner and if the proposed enhancement is approved by the Commissioner. the 36
600-Commissioner has approved them. Any approved optional enhancements shall be considered are 37
601-outside the authority of the Rate Bureau. If the a proposed enhancement will include an additional 38
602-premium charge, the proposed premium charge shall be included with the proposed program 39
603-enhancements filed with the Commissioner. The Commissioner shall review the proposed 40
604-premium charges and approve them if the Commissioner finds that they are based on sound 41
605-actuarial principles. Amendments to private passenger automobile, homeowners', dwelling, or 42
606-residential private flood program enhancements are subject to the same requirements as initial 43
607-filings. dwelling, residential private flood 44
608-A company shall not condition (i) the acceptance or renewal of a policy, (ii) any underwriting 45
609-criteria, or (iii) any rating criteria upon the acceptance by the policyholder of any optional 46
610-automobile or homeowners' enhancements authorized by this section. A rate amendment 47
611-authorized by this section is not a rate deviation and is not subject to the requirements for rate 48
612-deviations set forth in G.S. 58-36-30(a). 49
613-(b) Repealed by S.L. 2023-133, s. 16(c), as amended by S.L. 2024-29, s. 9(b), effective 50
614-July 1, 2025." 51 General Assembly Of North Carolina Session 2025
615-House Bill 481-Second Edition Page 13
616-SECTION 5.(b) This section becomes effective July 1, 2025. 1
617-SECTION 6.(a) Part 1 of Article 45 of Chapter 66 of the General Statutes reads as 2
618-rewritten: 3
619-"Part 1. Pawnbrokers and Cash Currency Converters. 4
620-"§ 66-385. Short title. 5
621-This Part shall be known and may be cited as the Pawnbrokers and Cash Currency Converters 6
622-Modernization Act. 7
623-"§ 66-386. Purpose. 8
624-The making of pawn loans and the acquisition and disposition of tangible personal property 9
625-by and through pawnshops and cash currency converters vitally affects the general economy of 10
626-this State and the public interest and welfare of its citizens. In recognition of these facts, it is the 11
627-policy of this State and the purpose of the Pawnbrokers and Cash Converters Modernization Act 12
628-this Part to do all of the following: 13
629-(1) Ensure a sound system of making loans and acquiring and disposing of 14
630-tangible personal property by and through pawnshops, pawnshops and to 15
631-prevent unlawful property transactions, particularly in stolen property, 16
632-through licensing and regulating pawnbrokers. 17
633-(2) Ensure a sound system of acquiring and disposing of tangible personal 18
634-property by and through cash currency converters and to prevent unlawful 19
635-property transactions, particularly in stolen property, by requiring record 20
636-keeping by cash currency converters. 21
637-(3) Provide for pawnbroker licensing fees and investigation fees of licensees. 22
638-(4) Ensure financial responsibility to the State and the general public. 23
639-(5) Ensure compliance with federal and State laws. 24
640-(6) Assist local governments in the exercise of their police authority. 25
641-…." 26
642-SECTION 6.(b) G.S. 25-9-201 reads as rewritten: 27
643-"§ 25-9-201. General effectiveness of security agreement. 28
644-(a) General effectiveness. – Effectiveness. – Except as otherwise provided in this 29
645-Chapter, a security agreement is effective according to its terms between the parties, against 30
646-purchasers of the collateral, and against creditors. 31
647-(b) Applicable consumer laws and other law. – Consumer Laws and Other Law. – A 32
648-transaction subject to this Article is subject to any applicable rule of law which that establishes a 33
649-different rule for consumers, to any other statute, rule, or regulation statute or rule of this State 34
650-that regulates the rates, charges, agreements, and practices for loans, credit sales, or other 35
651-extensions of credit, and to any consumer-protection statute, rule, or regulation statute or rule of 36
652-this State, including Chapter 24 of the General Statutes, the Retail Installment Sales Act (Chapter 37
653-25A of the General Statutes), the North Carolina Consumer Finance Act (Article 15 of Chapter 38
654-53 of the General Statutes), and the Pawnbrokers and Cash Currency Converters Modernization 39
655-Act (Part 1 of Article 45 of Chapter 66 of the General Statutes). 40
656-(c) Other applicable law controls. – Applicable Law Controls. – In case of conflict 41
657-between this Article and a rule of law, statute, or regulation law described in subsection (b) of 42
658-this section, the rule of law, statute, or regulation law controls. Failure to comply with a statute 43
659-or regulation law described in subsection (b) of this section has only the effect the statute or 44
660-regulation law specifies. 45
661-(d) Further deference to other applicable law. – Deference to Other Applicable Law. – 46
662-This Article does not:neither of the following: 47
663-(1) Validate any rate, charge, agreement, or practice that violates a rule of law, 48
664-statute, or regulation law described in subsection (b) of this section; or section. 49
665-(2) Extend the application of the rule of law, statute, or regulation a rule of law to 50
666-a transaction not otherwise subject to it." 51 General Assembly Of North Carolina Session 2025
667-Page 14 House Bill 481-Second Edition
668-SECTION 7.(a) The subunits of G.S. 75D-3 are renumbered to conform to the 1
669-General Statutes numbering system, and the definitions in G.S. 75D-3 are reordered so that they 2
670-appear in alphabetical order. 3
671-SECTION 7.(b) G.S. 75D-3, as amended by subsection (a) of this section and 4
672-Section 1(b) of S.L. 2024-22, reads as rewritten: 5
673-"§ 75D-3. Definitions. 6
674-As used in this Chapter, the term:The following definitions apply in this Chapter: 7
675-(1) "Attorney General" means the Attorney General. – The Attorney General of 8
676-North Carolina or any employee of the Department of Justice designated by 9
677-him the Attorney General in writing. Any district attorney of this State, with 10
678-his the Attorney General's consent, may be designated in writing by the 11
679-Attorney General to enforce the provisions of this Chapter. 12
680-(2) a. "Beneficial interest" means either Beneficial interest. – Either of the 13
681-following: 14
682-1.a. The interest of a person as a beneficiary under any other a trust 15
683-arrangement pursuant to which a trustee holds legal or record title to 16
684-real property for the benefit of such person; orthe person. 17
685-2.b. The interest of a person under any other form of express fiduciary 18
686-arrangement pursuant to which any other another person holds legal or 19
687-record title to real property for the benefit of such the person. 20
688-b. "Beneficial interest" The term does not include the interest of a 21
689-stockholder in a corporation or the interest of a partner in either a general 22
690-partnership or limited partnership. A beneficial interest shall be is deemed to 23
691-be located where the real property owned by the trustee is located. 24
692-(3) "Civil proceeding" means any Civil proceeding. – A civil proceeding 25
693-commenced by the Attorney General or an injured person under any provision 26
694-of this Chapter. 27
695-(4) "Criminal proceeding" means any Criminal proceeding. – A criminal action 28
696-commenced by the State for a violation of any provision of those criminal laws 29
697-referred to in G.S. 75D-3(c).set forth in subdivision (8) of this section. 30
698-(5) "Documentary material" means any Documentary material. – A book, paper, 31
699-document, writing, drawing, graph, chart, photograph, phonocord, magnetic 32
700-tape, computer printout, other data compilation from which information can 33
701-be obtained or from which information can be translated into useable form, or 34
702-other tangible item. 35
703-(6) "Enterprise" means any Enterprise. – A person, sole proprietorship, 36
704-partnership, corporation, business trust, union chartered under the laws of this 37
705-State, or other legal entity; or any an unchartered union, association, or group 38
706-of individuals associated in fact although not a legal entity; and it entity. The 39
707-term includes illicit as well as licit enterprises and governmental as well as 40
708-other entities. 41
709-(7) "Pattern of racketeering activity" means engaging Pattern of racketeering 42
710-activity. – Engaging in at least two incidents of racketeering activity that have 43
711-the same or similar purposes, results, accomplices, victims, or methods of 44
712-commission or otherwise are interrelated by distinguishing characteristics and 45
713-are not isolated and unrelated incidents, provided incidents so long as at least 46
714-one of such these incidents occurred after October 1, 1986, and that at least 47
715-one other of such these incidents occurred within a four-year period of time 48
716-of the other, excluding any periods of imprisonment, after the commission of 49
717-a prior incident of racketeering activity. 50 General Assembly Of North Carolina Session 2025
718-House Bill 481-Second Edition Page 15
719-(8) a. "Racketeering activity" means to Racketeering activity. – To commit, to 1
720-attempt to commit, or to solicit, coerce, or intimidate another person to commit 2
721-an act or acts which that would be chargeable by indictment if such the act or 3
722-acts were was accompanied by the necessary mens rea or criminal intent under 4
723-the following laws of this State: 5
724-1.a. Article 5 of Chapter 90 of the General Statutes of North Carolina 6
725-relating to controlled substances and counterfeit controlled 7
726-substances;substances. 8
727-2.b. Chapter 14 of the General Statutes of North Carolina except Articles 9
728-9, 22A, 38, 40, 43, 46, 47, 59 thereof; and further excepting G.S. 10
729-Sections 14-78.1, and 59 of that Chapter and G.S. 14-82, 14-86, 11
730-14-145, 14-146, 14-147, 14-177, 14-178, 14-179, 14-183, 14-184, 12
731-14-186, 14-190.9, 14-195, 14-197, 14-201, 14-202, 14-247, 14-248, 13
732-14-313 thereof.and 14-313. 14
733-3. Any conduct involved in a "money laundering" activity, including 15
734-activity covered by G.S. 14-118.8; and 16
735-b. "Racketeering activity" The term also includes the description in Title 18, 17
736-United States Code, Section 1961(1)."racketeering activity," as defined in 18 18
737-U.S.C. § 1961(1), and any conduct involved in a money laundering activity, 19
738-including activity covered by G.S. 14-118.8. 20
739-(9) "Real property" means any Real property. – Any real property situated in this 21
740-State or any an interest in such the real property, including, but not limited to, 22
741-any a lease of or mortgage upon such the real property. 23
742-(10) "RICO lien notice" means the RICO lien notice. – The notice described in 24
743-G.S. 75D-13. 25
744-(11) a. "Trustee" means either Trustee. – Either of the following: 26
745-1.a. Any A person who that holds legal or record title to real property for 27
746-in which any other another person has a beneficial interest; orinterest. 28
747-2.b. Any A successor trustee or trustees to any of the foregoing persons.to 29
748-a person described in sub-subdivision a. of this subdivision. 30
749-b. "Trustee" The term does not include the following:either 31
750-1. Any (i) a person appointed or acting as a personal 32
751-representative under Chapter 35A of the General Statutes 33
752-relating to guardian and ward, or under Chapter 28A of the 34
753-General Statutes relating to the administration of estates; or 35
754-estates or 36
755-2. Any (ii) a person appointed or acting as a trustee of any a 37
756-testamentary trust or as trustee of any an indenture of trust 38
757-under which any bonds are to be issued." 39
758-SECTION 7.(c) G.S. 75D-5 reads as rewritten: 40
759-"§ 75D-5. RICO civil forfeiture proceedings. 41
760-(a) All property of every kind used or intended for use in the course of, derived from, or 42
761-realized through a racketeering activity or pattern of racketeering activity is subject to forfeiture 43
762-to the State. Forfeiture shall be had by a civil procedure known as a RICO forfeiture proceeding. 44
763-(b) A RICO forfeiture proceeding shall be is governed by Chapter 1A of the General 45
764-Statutes of North Carolina except to the extent that special rules of procedure are stated in this 46
765-Chapter. 47
766-(c) A RICO forfeiture proceeding shall be is an in rem proceeding against the property. 48
767-(d) A RICO forfeiture proceeding shall be instituted by complaint and prosecuted only 49
768-by the Attorney General of North Carolina or his designated representative. General. The 50
769-proceeding may be commenced and a final judgment rendered thereon before or after seizure of 51 General Assembly Of North Carolina Session 2025
770-Page 16 House Bill 481-Second Edition
771-the property and before or after any a criminal conviction of any person for violation of those 1
772-laws any law set forth in G.S. 75D-3(c).G.S. 75D-3(8). 2
773-(e) If the complaint is filed before seizure, it shall state what property is sought to be 3
774-forfeited, that the property is within the jurisdiction of the court, the grounds for forfeiture, and 4
775-the names of all persons known to have or claim an interest in the property. The court shall 5
776-determine ex parte whether there is reasonable ground to believe that the property is subject to 6
777-forfeiture and, if the State so alleges, whether notice to those persons having or claiming an 7
778-interest in the property prior to seizure would cause the loss or destruction of the property. If the 8
779-court finds:The court shall take action as follows: 9
780-(1) That If the court finds that reasonable ground does not exist to believe that the 10
781-property is subject to forfeiture, it shall dismiss the complaint; orcomplaint. 11
782-(2) That If the court finds that reasonable ground does exist to believe the property 12
783-is subject to forfeiture but there is not reasonable ground to believe that prior 13
784-notice would result in loss or destruction, it shall order service on all persons 14
785-known to have or claim an interest in the property prior to a further hearing 15
786-on whether a writ of seizure should issue; orissue. 16
787-(3) That If the court finds that there is reasonable ground to believe that the 17
788-property is subject to forfeiture and to believe that prior notice would cause 18
789-loss or destruction, it shall shall, without any further hearing or notice, issue a 19
790-writ of seizure directing the sheriff of or any other law enforcement officer in 20
791-the county where the property is found to seize it. 21
792-(f) Seizure may be effected by a law enforcement officer authorized to enforce the penal 22
793-laws of this State prior to the filing of the complaint and without a writ of seizure if the seizure 23
794-is incident to a lawful arrest, search, or inspection and the officer has probable cause to believe 24
795-the property is subject to forfeiture and will be lost or destroyed if not seized. Within 24 hours of 25
796-the time of seizure, the seizure shall be reported by the officer to the district attorney of the 26
797-prosecutorial district as defined in G.S. 7A-60 in which the seizure is effected who shall 27
798-immediately report such the seizure to the Attorney General. The Attorney General shall, within 28
799-30 days after receiving notice of seizure, examine the evidence surrounding such the seizure, and 29
800-if he the Attorney General believes reasonable ground exists for forfeiture under this Chapter, 30
801-the Attorney General shall file a complaint for forfeiture. The complaint shall state, in addition 31
802-to the information required in subsection (e) of this section, the date and place of seizure. 32
803-(g) After the complaint is filed or the seizure effected, whichever is later, every person 33
804-known to have or claim an interest in the property, or in the property or enterprise of which the 34
805-subject property is a part or represents any interest, shall be served, if not previously served, with 35
806-a copy of the complaint and a notice of seizure in the manner provided by Chapter 1A of the 36
807-General Statutes of North Carolina. Statutes. Service by publication may be ordered upon any 37
808-party whose whereabouts cannot be determined with reasonable diligence within 30 days of the 38
809-filing of the complaint. 39
810-(h) (1) Any A person claiming an interest in the property, property may become a 40
811-party to the action at any time prior to judgment whether named in the 41
812-complaint or not. Any A party claiming a substantial interest in the property, 42
813-upon motion motion, may be allowed by the court to take possession of the 43
814-property upon posting bond with good and sufficient security in double the 44
815-amount of the property's value conditioned to pay the value of any interest in 45
816-the property found to be subject to forfeiture or the value of any interest of 46
817-another not subject to forfeiture. 47
818-(2) The court, upon such any terms and conditions as it may prescribe, that it 48
819-prescribes, may order that the property be sold by an innocent party who that 49
820-holds a lien on or security interest in the property at anytime any time during 50
821-the proceedings. Any proceeds from such the sale over and above the amount 51 General Assembly Of North Carolina Session 2025
822-House Bill 481-Second Edition Page 17
823-necessary to satisfy the lien or security interest shall be paid into court pending 1
824-final judgment in the forfeiture proceeding. No such sale shall be ordered, 2
825-however, unless the obligation upon which the lien or security interest is based 3
826-is in default. 4
827-(3) Pending final judgment in the forfeiture proceeding, the court may make any 5
828-other disposition of the property necessary to protect it or in the interest of 6
829-substantial justice, justice and which that adequately protects the interests of 7
830-innocent parties. 8
831-(i) The interest of an innocent party in the property shall not be is not subject to forfeiture. 9
832-An innocent party is one who that did not have actual or constructive knowledge that the property 10
833-was subject to forfeiture. An attorney who is paid a fee for representing any a person subject to 11
834-this act, shall be Chapter is rebuttably presumed to be an innocent party as to that fee transaction. 12
835-(j) Subject to the requirement of protecting the interest of all innocent parties, the court 13
836-may, after judgment of forfeiture, make any of the following orders for disposition of the 14
837-property: 15
838-(1) Destruction of the property or contraband, the possession of, or use of, which 16
839-is illegal;illegal. 17
840-(2) Retention for official use by a law enforcement agency, the State State, or any 18
841-political subdivision thereof. When such the agency or political subdivision 19
842-no longer has use for such the property, it shall be disposed of by judicial sale 20
843-as provided in Article 29A of Chapter 1 of the General Statutes of North 21
844-Carolina, Statutes, and the proceeds shall be paid to the State 22
845-Treasurer;Treasurer. 23
846-(3) Transfer to the Department of Natural and Cultural Resources of property 24
847-useful for historical or instructional purposes;purposes. 25
848-(4) Retention of the property by any an innocent party having an interest therein, 26
849-in it, including the right to restrict sale of an interest to outsiders, such as a 27
850-right of first refusal, upon payment or approval of a plan for payment into 28
851-court of the value of any forfeited interest in the property. The plan may 29
852-include, in the case of an innocent party who that holds an interest in the 30
853-property through an estate a tenancy by the entirety, or an undivided interest 31
854-in the property, interest, or a lien on or security interest in the property, 32
855-interest, the sale of the property by the innocent party under such any terms 33
856-and conditions as may be prescribed by the court and the payment into court 34
857-of any proceeds from such the sale over and above the amount necessary to 35
858-satisfy the divided ownership value of the innocent party's interest or the lien 36
859-or security interest. interest. Proceeds paid into the court must shall then be 37
860-paid to the State Treasurer;Treasurer. 38
861-(5) Judicial sale of the property as provided in Article 29A of Chapter 1 of the 39
862-General Statutes of North Carolina, Statutes, with the proceeds being paid to 40
863-the State Treasurer;Treasurer. 41
864-(6) Transfer of the property to any an innocent party having an interest therein in 42
865-it equal to or greater than the value of the property; orproperty. 43
866-(7) Any other disposition of the property which that is in the interest of substantial 44
867-justice and adequately protects innocent parties, with any proceeds being paid 45
868-to the State Treasurer. 46
869-(k) In addition to the provisions of an in rem action under subsections (c) through (g) 47
870-relating to in rem actions, of this section, the State may bring an in personam action for the 48
871-forfeiture of any property subject to forfeiture under subsection (a) of this section. 49
872-(l) Upon the entry of a final civil judgment of forfeiture in favor of the State:State, the 50
873-following provisions apply: 51 General Assembly Of North Carolina Session 2025
874-Page 18 House Bill 481-Second Edition
875-(1) The title of the State to the forfeited property shall:relates back as follows: 1
876-a. In the case of real property or a beneficial interest, relate the title 2
877-relates back to the date of the filing of the RICO lien notice in the 3
878-official record of the county where the real property or beneficial 4
879-interest is located and, if located. If no RICO lien notice is filed, then 5
880-the title relates back to the date of the filing of any notice of lis pendens 6
881-in the official records of the county where the real property or 7
882-beneficial interest is located and, if located. If no RICO lien notice or 8
883-notice of lis pendens is so filed, then the title relates back to the date 9
884-of the recording of the final judgment of forfeiture in the official 10
885-records of the county where the real property or beneficial interest is 11
886-located; andlocated. 12
887-b. In the case of personal property, relate the title relates back to the date 13
888-the personal property was seized pursuant to the provisions of this 14
889-Chapter. 15
890-(2) If property subject to forfeiture is conveyed, alienated, disposed of, or 16
891-otherwise rendered unavailable for forfeiture after the filing of a RICO lien 17
892-notice or after the filing of a RICO civil proceeding proceeding, whichever is 18
893-earlier, the Attorney General may, on behalf of the State, institute an action in 19
894-an appropriate court against the person named in the RICO lien notice or the 20
895-defendant in the civil proceeding and the court shall enter final judgment 21
896-against the person named in the RICO lien notice or the defendant in the civil 22
897-proceeding in an amount equal to the fair market value of the property, 23
898-together with investigative costs and attorney's attorneys' fees incurred by the 24
899-Attorney General in the action." 25
900-SECTION 7.(d) G.S. 75D-8 reads as rewritten: 26
901-"§ 75D-8. Available RICO civil remedies. 27
902-(a) As part of a final judgment of forfeiture, any judge of the superior court may, after 28
903-giving reasonable notice to potential innocent claimants, enjoin violations of G.S. 75D-4, by 29
904-issuing appropriate one or more of the following orders and judgments: 30
905-(1) Ordering any a defendant to divest himself oneself of any an interest in any 31
906-enterprise, real property, or personal property including property held by a 32
907-tenancy by the entirety. Where If property is held by a tenancy by the entirety 33
908-and one of the spouses is an innocent person as defined in G.S. 75D-5(i), upon 34
909-entry of a final judgment of forfeiture of entirety property, the judgment 35
910-operates, operates to convert the tenancy by the entirety to a tenancy in 36
911-common, and only the one-half undivided interest of the offending spouse 37
912-shall be forfeited according to the provisions of this Chapter;this Chapter. 38
913-(2) Imposing reasonable restrictions upon the future activities or investments of 39
914-any a defendant in the same or similar type of endeavor as the enterprise in 40
915-which he the defendant was engaged in violation of G.S. 75D-4;G.S. 75D-4. 41
916-(3) Ordering the dissolution or reorganization of any enterprise;an enterprise. 42
917-(4) Ordering the suspension or revocation of any a license, permit, or prior 43
918-approval granted to any an enterprise by any agency of the State;a State 44
919-agency. 45
920-(5) Ordering the forfeiture of the charter of a corporation organized under the laws 46
921-of this State or the revocation of a certificate authorizing a foreign corporation 47
922-to conduct business within in this State upon a finding that the board of 48
923-directors or a managerial agent acting on behalf of the corporation, in 49
924-conducting affairs of the corporation, has authorized or engaged in conduct in 50
925-violation of G.S. 75D-4, G.S. 75D-4 and that, for the prevention of future 51 General Assembly Of North Carolina Session 2025
926-House Bill 481-Second Edition Page 19
927-unlawful activity, the public interest requires that the charter of the 1
928-corporation be dissolved or the certificate be revoked;revoked. 2
929-(6) Appointment of a receiver pursuant to the provisions of Article 38 of Chapter 3
930-1 of the General Statutes of North Carolina, to collect, conserve conserve, and 4
931-dispose of all the proceeds, money, profits profits, and property, both real and 5
932-personal, subject to the provisions of this Chapter in accordance with the 6
933-provisions hereof this Chapter, as directed by the final judgment of the 7
934-superior court having jurisdiction over the parties or subject matter of the 8
935-action; oraction. 9
936-(7) Any other equitable remedy appropriate to effect complete forfeiture of 10
937-property subject to forfeiture, or to prevent future violations of this Chapter. 11
938-(b) The State through the Attorney General may institute a proceeding under G.S. 75D-5. 12
939-In such the proceeding, relief shall be granted in conformity with the principles that govern the 13
940-granting of injunctive relief from threatened loss or damage in other civil cases, provided that no 14
941-showing of special or irreparable damage to the person shall have to be made and provided further 15
942-that the State shall not be cases. However, the State is not required to show special or irreparable 16
943-damage, nor is the State required to execute any bond before or after obtaining temporary 17
944-restraining orders or preliminary injunctions. 18
945-(c) Any An innocent person who that is injured or damaged in his business or property 19
946-by reason of any violation of G.S. 75D-4 involving a pattern of racketeering activity shall have 20
947-has a cause of action for three times the actual damages sustained and reasonable attorneys 21
948-attorneys' fees. For purposes of this subsection, "pattern of racketeering activity" shall require 22
949-requires that at least one act of racketeering activity be an act of racketeering activity other than 23
950-(i) an act indictable under 18 U.S.C. § 1341 or U.S.C. § 1343, 18 U.S.C. § 1343 or (ii) an act 24
951-which that is an offense involving fraud in the sale of securities. Any A person filing a private 25
952-action under this subsection must shall concurrently notify the Attorney General in writing of the 26
953-commencement of the action. Thereafter, the Attorney General may file a motion for a protective 27
954-order in the court where the private action is pending and shall be granted a stay of the private 28
955-action for a reasonable time if the court finds either:either of the following: 29
956-(1) The bringing of a private action is likely to materially interfere with or impair 30
957-a public forfeiture action; oraction. 31
958-(2) The public interest is so great as to require the Attorney General to investigate 32
959-and bring a forfeiture action. 33
960-(d) Any An injured innocent person shall have has a right or claim to forfeited property 34
961-property, or to the proceeds derived therefrom from it, that is superior to any right or claim the 35
962-State has in the same property or proceeds. To enforce such a claim the claim, the injured innocent 36
963-person must shall intervene in the forfeiture proceeding prior to its final disposition. 37
964-(e) A final conviction in any a criminal proceeding for a violation of those laws set forth 38
965-in G.S. 75D-3(c), shall estop estops the defendant in any subsequent civil action or proceeding 39
966-under this Chapter as to all matters proved in the criminal proceeding. 40
967-(f) A defendant in an action commenced by the State pursuant to this Chapter whose 41
968-convictions of two or more criminal offenses of those criminal statutes as set forth in G.S. 42
969-75D-3(c) have become final, which offenses have occurred within a four-year period of each 43
970-other as set forth in G.S. 75D-3(b) shall be who has two or more final convictions for violating 44
971-any law set forth in G.S. 75D-3(8) and whose violations occurred within a four-year period as 45
972-set forth in G.S. 75D-3(7) is deemed to have, have per se violated the provisions of 46
973-G.S. 75D-4(a)(1) or (2) as of the date of the second conviction. 47
974-(g) Any party is entitled to a jury trial in any action brought under this Chapter." 48
975-SECTION 7.(e) This section is effective when it becomes law and applies to actions 49
976-or proceedings commenced on or after that date. 50 General Assembly Of North Carolina Session 2025
977-Page 20 House Bill 481-Second Edition
978-SECTION 8.(a) The definitions in G.S. 85B-1 are reordered so that they appear in 1
979-alphabetical order. 2
980-SECTION 8.(b) G.S. 85B-1, as amended by subsection (a) of this section, reads as 3
981-rewritten: 4
982-"§ 85B-1. Definitions. 5
983-For the purposes of this Chapter Chapter, the following definitions shall apply: 6
984-(1) "Absolute Auction" means the Absolute auction. – The sale of real or personal 7
985-property at auction in which the item offered for auction is sold to the highest 8
986-bidder without reserve, without the requirement of any a minimum bid, and 9
987-without competing bids of any type by the owner, or agent of the owner, of 10
988-the property. 11
989-(2) "Auction" means the Auction. – The sale of goods or real estate by means of 12
990-exchanges between an auctioneer and members of an audience, the exchanges 13
991-consisting of a series of invitations for offers made by the auctioneer, offers 14
992-by members of the audience, and the acceptance by the auctioneer of the 15
993-highest or most favorable offer. 16
994-(3) "Auction Firm" means a Auction firm. – A sole proprietorship of which the 17
995-owner is not a licensed auctioneer, or any a partnership, association, or 18
996-corporation, not otherwise exempt from this Chapter, that does any of the 19
997-following: 20
998-a. sells Sells, either directly or through agents, real or personal property 21
999-at auction, or that auction. 22
1000-b. arranges, Arranges, sponsors, manages, conducts conducts, or 23
1001-advertises auctions, or that auctions. 24
1002-c. in In the regular course of business business, uses or allows the use of 25
1003-its facilities for auctions. 26
1004-This definition This term applies whether or not an owner or officer of the 27
1005-business acts as an auctioneer. 28
1006-(4) "Auctioneer" means any Auctioneer. – A person who conducts or offers to 29
1007-conduct auctions and auctions. This term includes apprentice auctioneers 30
1008-except as when stricter standards are specified by this Chapter for apprentice 31
1009-auctioneers. 32
1010-(5) "Auctioneering", "conduct of auction", or "conduct of business" means, in 33
1011-Auctioneering, conduct of auction, or conduct of business. – In addition to the 34
1012-actual calling of bids, any of the following: 35
1013-a. Contracting for auction. 36
1014-b. Accepting consignments of items for sale at auction. 37
1015-c. Advertising an auction. 38
1016-d. Offering items for sale at auction. 39
1017-e. Accepting payment or disbursing monies for items sold at auction. 40
1018-f. Otherwise soliciting, arranging, sponsoring, or managing an auction 41
1019-or holding oneself out as an auctioneer or auction firm. 42
1020-(6) "Consignment" means, unless Consignment. – Unless otherwise modified by 43
1021-written agreement, the act of delivering or transferring goods or real estate in 44
1022-fact or constructively to an auctioneer or the auctioneer's agent in trust for the 45
1023-purpose of resale at auction whereby by which title does not pass to the buyer 46
1024-until there is an action indicating a sale. For purposes of this section, 47
1025-consignment may also mean This term includes a bailment for sale. 48
1026-(7) "Designated person" means any Designated person. – A person approved by 49
1027-the Board to have the authority to transact business for a licensed auction firm. 50 General Assembly Of North Carolina Session 2025
1028-House Bill 481-Second Edition Page 21
1029-(8) "Estate Sale" means the Estate sale. – The liquidation by sale at auction of real 1
1030-or personal property of a specified person. 2
1031-(9) "Fund" means Fund. – Auctioneer Recovery Fund. 3
1032-(10) "Owner" means the Owner. – The bona fide owner of the property being 4
1033-offered for sale;sale. The following provisions apply: 5
1034-a. in In the case of partnerships, "owner" this term means a general 6
1035-partner in a partnership that owns the property being offered for sale, 7
1036-provided that sale so long as, in the case of a limited partnership it 8
1037-partnership, the partnership has filed a certificate of limited 9
1038-partnership as required by Chapter 59 of the General Statutes; Statutes. 10
1039-b. in In the case of corporations, "owner" this term means an officer or 11
1040-director or employee or someone acting on behalf of the employee of 12
1041-officer, director, employee, or agent of a corporation that owns the 13
1042-property being offered for sale provided that so long as the corporation 14
1043-is registered to do business in the this State." 15
1044-SECTION 9. G.S. 128-26A is redesignated as G.S. 128-26.1. 16
1045-SECTION 10.(a) G.S. 131A-3 reads as rewritten: 17
1046-"§ 131A-3. Definitions. 18
1047-As used or referred to in this Article, the following words and terms shall have the following 19
1048-meanings, unless the context clearly indicates otherwise: 20
1049-(1) "Bonds" or "notes" means the revenue bonds or bond anticipation notes, 21
1050-respectively, authorized to be issued by the Commission under this Article; 22
1051-(2) "Commission" means the North Carolina Medical Care Commission, created 23
1052-by Part 10 of Article 3 of Chapter 143B of the General Statutes, or, should 24
1053-said Commission be abolished or otherwise divested of its functions under this 25
1054-Article, the public body succeeding it in its principal functions, or upon which 26
1055-are conferred by law the rights, powers and duties given by this Article to the 27
1056-Commission; 28
1057-(3) "Cost" as applied to any health care facilities means the cost of construction 29
1058-or acquisition; the cost of acquisition of property, including rights in land and 30
1059-other property, both real and personal and improved and unimproved; the cost 31
1060-of demolishing, removing or relocating any buildings or structures on land so 32
1061-acquired, including the cost of acquiring any land to which such buildings or 33
1062-structures may be moved or relocated; the cost of all machinery, fixed and 34
1063-movable equipment and furnishings; financing charges, interest prior to and 35
1064-during construction and, if deemed advisable by the Commission, for a period 36
1065-not exceeding two years after the estimated date of completion of 37
1066-construction, the cost of engineering and architectural surveys, plans and 38
1067-specifications; the cost of consulting and legal services and other expenses 39
1068-necessary or incident to determining the feasibility or practicability of 40
1069-constructing or acquiring such health care facilities; the cost of administrative 41
1070-and other expenses necessary or incident to the construction or acquisition of 42
1071-such health care facilities, and the financing of the construction or acquisition 43
1072-thereof, including reasonable provision for working capital and a reserve for 44
1073-debt service; the cost of reimbursing any public or nonprofit agency for any 45
1074-payments made for any cost described above or the refinancing of any cost 46
1075-described above, provided that no payment shall be reimbursed or any cost be 47
1076-refinanced if such payment was made or such cost was incurred earlier than 48
1077-two years prior to the effective date of this Article; provided further, that it is 49
1078-the intent that any costs described above shall be payable solely from the 50
1079-revenues of the health care facilities; 51 General Assembly Of North Carolina Session 2025
1080-Page 22 House Bill 481-Second Edition
1081-(4) "Health care facilities" means any one or more buildings, structures, additions, 1
1082-extensions, improvements or other facilities, whether or not located on the 2
1083-same site or sites, machinery, equipment, furnishings or other real or personal 3
1084-property suitable for health care or medical care; and includes, without 4
1085-limitation: general hospitals, chronic diseases, maternity, mental, tuberculosis 5
1086-and other specialized hospitals; facilities for intensive care and self-care; 6
1087-nursing homes, including skilled nursing facilities and intermediate care 7
1088-facilities; facilities for continuing care of the elderly and infirm; clinics and 8
1089-outpatient facilities; clinical, pathological and other laboratories; health care 9
1090-research facilities; laundries; training facilities for nurses, interns, physicians 10
1091-and other staff members; food preparation and food service facilities; 11
1092-administration buildings, central service and other administrative facilities; 12
1093-communication, computer; and other electronic facilities, fire-fighting 13
1094-facilities, pharmaceutical facilities and recreational facilities; storage space, 14
1095-X-ray, laser, radiotherapy and other apparatus and equipment; dispensaries; 15
1096-utilities; vehicular parking lots and garages; office facilities for health care 16
1097-facilities staff members and physicians; and such other health care facilities 17
1098-customarily under the jurisdiction of or provided by hospitals, or any 18
1099-combination of the foregoing, with all necessary, convenient or related 19
1100-interests in land, machinery, apparatus, appliances, equipment, furnishings, 20
1101-appurtenances, site preparation, landscaping and physical amenities; 21
1102-(5) "Non-profit agency" means any nonprofit corporation existing or hereafter 22
1103-created and empowered to acquire, by lease or otherwise, operate or maintain 23
1104-health care facilities; 24
1105-(6) "Public agency" means any county, city, town, hospital district or other 25
1106-political subdivision of the State existing or hereafter created pursuant to the 26
1107-laws of the State authorized to acquire, by lease or otherwise, operate or 27
1108-maintain health care facilities; 28
1109-(7) "State" means the State of North Carolina; 29
1110-(8) "Federally guaranteed security" means any security, investment or evidence 30
1111-of indebtedness issued pursuant to any provision of federal law for the purpose 31
1112-of financing or refinancing the cost of any health care facilities which is 32
1113-insured or guaranteed, directly or indirectly, in whole or in part as to the 33
1114-repayment of principal or interest by the United States of America or any 34
1115-instrumentality thereof; 35
1116-(9) "Federally insured mortgage note" means any loan secured by a mortgage or 36
1117-deed of trust on any health care facilities owned or leased by any public or 37
1118-nonprofit agency which is insured or guaranteed, directly or indirectly, in 38
1119-whole or in part as to the repayment of principal and interest by the United 39
1120-States of America or any instrumentality thereof, or any commitment by the 40
1121-United States of America or any instrumentality thereof to so insure or 41
1122-guarantee such a loan secured by a mortgage or a deed of trust. 42
1123-(10) "Continuing care" means the furnishing, pursuant to a continuing care 43
1124-agreement, of shelter, food, and nursing care to an individual not related by 44
1125-consanguinity or affinity to the provider furnishing such care. Other personal 45
1126-services provided shall be designated in the continuing care agreement. 46
1127-Continuing care shall include only life care, care for life, or care for a term of 47
1128-years; 48
1129-(11) "Life care" or "care for life" means a life lease, life membership, life estate, or 49
1130-similar agreement between an individual and a provider by which the 50 General Assembly Of North Carolina Session 2025
1131-House Bill 481-Second Edition Page 23
1132-individual pays a fee for the right to occupy a space in the continuing care 1
1133-facility and to receive continuing care for life; and 2
1134-(12) "Care for a term of years" means an agreement between an individual and a 3
1135-provider whereby the individual pays a fee for the right to occupy space in a 4
1136-continuing care facility, and to receive continuing care, for at least one year, 5
1137-but for less than the life of the member. 6
1138-The following definitions apply in this Article: 7
1139-(1) Bonds or notes. – The revenue bonds or bond anticipation notes, respectively, 8
1140-authorized to be issued by the Commission under this Article. 9
1141-(2) Care for a term of years. – An agreement between an individual and a provider 10
1142-by which the individual pays a fee for the right to occupy space in a continuing 11
1143-care facility and to receive continuing care for at least one year but for less 12
1144-than the life of the member. 13
1145-(3) Commission. – The North Carolina Medical Care Commission, created by 14
1146-Part 10 of Article 3 of Chapter 143B of the General Statutes, or a successor 15
1147-body. 16
1148-(4) Continuing care. – The furnishing, pursuant to a continuing care agreement, 17
1149-of shelter, food, and nursing care to an individual not related by consanguinity 18
1150-or affinity to the provider furnishing the care. Other personal services 19
1151-provided shall be designated in the continuing care agreement. This term 20
1152-includes only life care, care for life, or care for a term of years. 21
1153-(5) Cost. – As applied to any health care facilities, any of the following: 22
1154-a. The cost of construction or acquisition. 23
1155-b. The cost of acquisition of property, including property rights, both real 24
1156-and personal and improved and unimproved. 25
1157-c. The cost of demolishing, removing, or relocating any buildings or 26
1158-structures on land acquired, including the cost of acquiring any land to 27
1159-which the buildings or structures may be moved or relocated. 28
1160-d. The cost of all machinery, fixed and movable equipment, and 29
1161-furnishings. 30
1162-e. Financing charges, interest prior to and during construction, and, if 31
1163-deemed advisable by the Commission, for a period not exceeding two 32
1164-years after the estimated date of completion of construction, the cost 33
1165-of engineering and architectural surveys, plans, and specifications. 34
1166-f. The cost of consulting and legal services and other expenses necessary 35
1167-or incident to determining the feasibility or practicability of 36
1168-constructing or acquiring the health care facilities. 37
1169-g. The cost of administrative and other expenses necessary or incident to 38
1170-the construction or acquisition of the health care facilities and the 39
1171-financing of the construction or acquisition, including reasonable 40
1172-provision for working capital and a reserve for debt service. 41
1173-h. The cost of reimbursing a public or nonprofit agency for any payments 42
1174-made for any cost described in this subdivision or the refinancing of 43
1175-any cost described in this subdivision. This term, however, does not 44
1176-include any reimbursement or refinancing costs that are not payable 45
1177-solely from the revenues of the health care facilities. 46
1178-(6) Federally guaranteed security. – A security, investment, or evidence of 47
1179-indebtedness issued pursuant to federal law for the purpose of financing or 48
1180-refinancing the cost of a health care facility and that is insured or guaranteed, 49
1181-directly or indirectly, in whole or in part as to the repayment of principal or 50
1182-interest by the United States of America or any instrumentality thereof. 51 General Assembly Of North Carolina Session 2025
1183-Page 24 House Bill 481-Second Edition
1184-(7) Federally insured mortgage note. – A loan secured by a mortgage or deed of 1
1185-trust on a health care facility owned or leased by a public or nonprofit agency 2
1186-and that is insured or guaranteed, directly or indirectly, in whole or in part as 3
1187-to the repayment of principal and interest by the United States of America or 4
1188-any instrumentality thereof, or by a commitment of the United States of 5
1189-America or any instrumentality thereof. 6
1190-(8) Health care facilities. – Any one or more buildings, structures, additions, 7
1191-extensions, improvements, or other facilities, whether or not located on the 8
1192-same site, machinery, equipment, furnishings, or other real or personal 9
1193-property suitable for health care or medical care. The term includes, without 10
1194-limitation, any of the following facilities related to health care: 11
1195-a. General hospitals or specialized hospitals, such as hospitals for chronic 12
1196-diseases, maternity, or mental health. 13
1197-b. Facilities for intensive care and self-care. 14
1198-c. Nursing homes, including skilled nursing facilities and intermediate 15
1199-care facilities. 16
1200-d. Facilities for the continuing care of the elderly and infirm. 17
1201-e. Clinics and outpatient facilities. 18
1202-f. Clinical, pathological, and other laboratories. 19
1203-g. Health care research facilities. 20
1204-h. Laundries. 21
1205-i. Training facilities for nurses, interns, physicians, and other staff 22
1206-members. 23
1207-j. Food preparation and food service facilities. 24
1208-k. Administration buildings, central service facilities, and other 25
1209-administrative facilities. 26
1210-l. Communication, computer, and other electronic facilities, firefighting 27
1211-facilities, pharmaceutical facilities, and recreational facilities. 28
1212-m. Storage space. 29
1213-n. X-ray, laser, radiotherapy, and other apparatus and equipment. 30
1214-o. Dispensaries. 31
1215-p. Utilities. 32
1216-q. Vehicular parking lots and garages. 33
1217-r. Office facilities for staff members and physicians of a health care 34
1218-facility. 35
1219-s. Other facilities customarily under the jurisdiction of or provided by 36
1220-hospitals, or any combination of the facilities listed in this subdivision, 37
1221-with all related interests in land, machinery, apparatus, appliances, 38
1222-equipment, furnishings, appurtenances, site preparation, landscaping, 39
1223-and physical amenities. 40
1224-(9) Life care or care for life. – A life lease, life membership, life estate, or similar 41
1225-agreement between an individual and a provider by which the individual pays 42
1226-a fee for the right to occupy a space in the continuing care facility and to 43
1227-receive continuing care for life. 44
1228-(10) Nonprofit agency. – A nonprofit corporation authorized to acquire, by lease 45
1229-or otherwise, operate, or maintain health care facilities. 46
1230-(11) Public agency. – A county, city, town, hospital district, or other political 47
1231-subdivision of the State authorized to acquire, by lease or otherwise, operate, 48
1232-or maintain health care facilities. 49
1233-(12) State. – State of North Carolina." 50
1234-SECTION 10.(b) G.S. 143B-181.16 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
1235-House Bill 481-Second Edition Page 25
1236-"§ 143B-181.16. Long-Term Care Ombudsman Program/Office; definition.Definitions. 1
1237-Unless the content clearly requires otherwise, as used in this Article: 2
1238-(1) "Long-term care facility" means any skilled nursing facility and intermediate 3
1239-care facility as defined in G.S. 131A-3(4) or any adult care home as defined 4
1240-in G.S. 131D-20(2). 5
1241-(1a) Reserved for future codification purposes. 6
1242-(1b) "Programmatic supervision" means the monitoring of the performance of the 7
1243-duties of the Regional Ombudsman and ensuring that the Area Agency on 8
1244-Aging has personnel policies and procedures consistent with the laws and 9
1245-policies governing the Ombudsman Program as performed by the State 10
1246-Ombudsman. 11
1247-(1c) "Regional Ombudsman" means a person employed by an Area Agency on 12
1248-Aging who is certified and designated by the State Ombudsman to carry out 13
1249-the functions of the Regional Ombudsman Office established by this Article, 14
1250-42 U.S.C. § 3001, et seq. and regulations promulgated thereunder. 15
1251-(2) "Resident" means any person who is receiving treatment or care in any 16
1252-long-term care facility. 17
1253-(3) "State Ombudsman" means the State Ombudsman as defined by the Older 18
1254-Americans Act of 1965, as amended, 42 U.S.C. § 3001 et seq., and regulations 19
1255-promulgated thereunder, who carries out the duties and functions established 20
1256-by this Article and 42 U.S.C. § 3001, et seq. and regulations promulgated 21
1257-thereunder. 22
1258-(4) "Willful interference" means actions or inactions taken by an individual in an 23
1259-attempt to intentionally prevent, interfere with, or attempt to impede the 24
1260-Ombudsman or a representative of the Office from performing any of the 25
1261-functions, responsibilities, or duties set forth in 42 U.S.C. § 3001 et seq., and 26
1262-regulations promulgated thereunder. 27
1263-The following definitions apply in this Article: 28
1264-(1) Long-term care facility. – A skilled nursing facility, intermediate care facility, 29
1265-or adult care home as defined in G.S. 131D-20. 30
1266-(2) Programmatic supervision. – The monitoring of the performance of the duties 31
1267-of the Regional Ombudsman and ensuring that the Area Agency on Aging has 32
1268-personnel policies and procedures consistent with the laws and policies 33
1269-governing the Ombudsman Program as performed by the State Ombudsman. 34
1270-(3) Regional Ombudsman. – A person employed by an Area Agency on Aging 35
1271-who is certified and designated by the State Ombudsman to carry out the 36
1272-functions of the Regional Ombudsman Office established by this Article, the 37
1273-Older Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations 38
1274-promulgated under that act. 39
1275-(4) Resident. – A person who is receiving treatment or care in a long-term care 40
1276-facility. 41
1277-(5) State Ombudsman. – The State Ombudsman, as defined by the Older 42
1278-Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations 43
1279-promulgated under it, who carries out the duties and functions established by 44
1280-those laws and this Article. 45
1281-(6) Willful or unnecessary obstruction. – Actions or inactions taken by an 46
1282-individual in an attempt to intentionally prevent, interfere with, or attempt to 47
1283-impede the State Ombudsman or Regional Ombudsman from performing any 48
1284-of the functions, responsibilities, or duties set forth in the Older Americans 49
1285-Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations promulgated under 50
1286-it." 51 General Assembly Of North Carolina Session 2025
1287-Page 26 House Bill 481-Second Edition
1288-SECTION 11.1.(a) G.S. 131E-176(5a) is recodified as G.S. 131E-176(5c). 1
1289-SECTION 11.1.(b) G.S. 131E-176(10) is recodified as G.S. 131E-176(7e). 2
1290-SECTION 11.1.(c) G.S. 131E-176(13) is recodified as G.S. 131E-176(13d). The 3
1291-Revisor of Statutes shall substitute "G.S. 131E-176" for "G.S. 131E-176(13)" wherever it 4
1292-appears in G.S. 90-414.4. 5
1293-SECTION 11.2.(a) G.S. 131E-176, as amended by Section 11.1 of this act, reads as 6
1294-rewritten: 7
1295-"§ 131E-176. Definitions. 8
1296-The following definitions apply in this Article: 9
1297-(1) Adult care home. – A facility with seven or more beds licensed under Part 1 10
1298-of Article 1 of Chapter 131D of the General Statutes or under this Chapter that 11
1299-provides residential care for aged individuals or individuals with disabilities 12
1300-whose principal need is a home which that provides the supervision and 13
1301-personal care appropriate to their age and disability and for whom medical 14
1302-care is only occasional or incidental. 15
1303-… 16
1304-(1b) Ambulatory surgical facility. – A facility designed for the provision of a 17
1305-specialty ambulatory surgical program or a multispecialty ambulatory surgical 18
1306-program. An ambulatory surgical facility serves patients who require local, 19
1307-regional, or general anesthesia and a period of post-operative observation. An 20
1308-ambulatory surgical facility may only admit patients for a period of less than 21
1309-24 hours and must shall provide at least one designated operating room or 22
1310-gastrointestinal endoscopy room and at least one designated recovery room, 23
1311-have available the necessary equipment and trained personnel to handle 24
1312-emergencies, provide adequate quality assurance and assessment by an 25
1313-evaluation and review committee, and maintain adequate medical records for 26
1314-each patient. An ambulatory surgical facility may be operated as a part of a 27
1315-physician physician's or dentist's office, provided office so long as the facility 28
1316-is licensed under Part 4 of Article 6 of this Chapter, but the performance of 29
1317-incidental, limited ambulatory surgical procedures which that do not 30
1318-constitute an ambulatory surgical program and which that are performed in a 31
1319-physician's or dentist's office does not make that office an ambulatory surgical 32
1320-facility. 33
1321-(1c) Ambulatory surgical program. – A formal program for providing on a 34
1322-same-day basis those surgical procedures which that require local, regional, 35
1323-or general anesthesia and a period of post-operative observation to patients 36
1324-whose admission for more than 24 hours is determined, prior to surgery or 37
1325-gastrointestinal endoscopy, to be medically unnecessary. 38
1326-(2) Bed capacity. – Space used exclusively for inpatient care, including space 39
1327-designed or remodeled for licensed inpatient beds even though temporarily 40
1328-not used for such these purposes. The number of beds to be counted in any a 41
1329-patient room shall be the maximum number for which adequate square footage 42
1330-is provided as established by rules of the Department except that single beds 43
1331-in single rooms are counted even if the room contains inadequate square 44
1332-footage. The term "bed capacity" This term also refers to the number of 45
1333-dialysis stations in kidney disease treatment centers, including freestanding 46
1334-dialysis units. 47
1335-… 48
1336-(2d) Capital expenditure. – An expenditure for a project, including but not limited 49
1337-to to, the cost of construction, engineering, and equipment which that, under 50
1338-generally accepted accounting principles principles, is not properly 51 General Assembly Of North Carolina Session 2025
1339-House Bill 481-Second Edition Page 27
1340-chargeable as an expense of operation and maintenance. Capital expenditure 1
1341-includes, in addition, the fair market value of an acquisition made by donation, 2
1342-lease, or comparable arrangement by which a person obtains equipment, the 3
1343-expenditure for which would have been considered a capital expenditure 4
1344-under this Article if the person had acquired it by purchase. 5
1345-… 6
1346-(3) Certificate of need. – A written order which that affords the person so 7
1347-designated as the legal proponent of the proposed project the opportunity to 8
1348-proceed with the development of the project. 9
1349-… 10
1350-(5) Change in bed capacity. – Any of the following: 11
1351-a. Any A relocation of health service facility beds, beds or dialysis 12
1352-stations from one licensed facility or campus to another. 13
1353-b. Any A redistribution of health service facility bed capacity among the 14
1354-categories of health service facility bed. 15
1355-c. Any An increase in the number of health service facility beds, beds or 16
1356-dialysis stations in kidney disease treatment centers, including 17
1357-freestanding dialysis units. 18
1358-… 19
1359-(5c) Chemical dependency treatment facility. – A public or private facility, or unit 20
1360-in a facility, which that is engaged in providing 24-hour a day 24-hour-a-day 21
1361-treatment for chemical dependency or a substance use disorder. This treatment 22
1362-may include detoxification, administration of a therapeutic regimen for the 23
1363-treatment of individuals with chemical dependence or substance use disorders, 24
1364-and related services. The facility or unit may be any of the following: 25
1365-… 26
1366-(7) Develop. – When used in connection with health services, means to undertake 27
1367-those activities which that will result in the offering of institutional health 28
1368-service or the incurring of a financial obligation in relation to the offering of 29
1369-such a the service. 30
1370-(7a) (Effective until November 21, 2026 – see note) Diagnostic center. – A 31
1371-freestanding facility, program, or provider, including but not limited to, 32
1372-physicians' offices, clinical laboratories, radiology centers, and mobile 33
1373-diagnostic programs, in which the total cost of all the medical diagnostic 34
1374-equipment utilized by the facility which cost that costs ten thousand dollars 35
1375-($10,000) or more exceeds three million dollars ($3,000,000). In determining 36
1376-whether the medical diagnostic equipment in a diagnostic center costs more 37
1377-than three million dollars ($3,000,000), the costs of the equipment, studies, 38
1378-surveys, designs, plans, working drawings, specifications, construction, 39
1379-installation, and other activities essential to acquiring and making operational 40
1380-the equipment shall be included. The capital expenditure for the equipment 41
1381-shall be is deemed to be the fair market value of the equipment or the cost of 42
1382-the equipment, whichever is greater. Beginning September 30, 2022, and on 43
1383-On September 30 of each year thereafter, year, the cost threshold amount in 44
1384-this subdivision shall be adjusted using the Medical Care Index component of 45
1385-the Consumer Price Index published by the U.S. Department of Labor for the 46
1386-12-month period preceding the previous September 1. 47
1387-… 48
1388-(7c) Gamma knife. – Equipment which that emits photon beams from a stationary 49
1389-radioactive cobalt source to treat lesions deep within the brain and is one type 50
1390-of stereotactic radiosurgery. 51 General Assembly Of North Carolina Session 2025
1391-Page 28 House Bill 481-Second Edition
1392-… 1
1393-(7e) Health maintenance organization (HMO). – A public or private organization 2
1394-which that has received its certificate of authority under Article 67 of Chapter 3
1395-58 of the General Statutes and which that either is a qualified health 4
1396-maintenance organization under Section 1310(d) of the Public Health Service 5
1397-Act 42 U.S.C. § 300e-9, or satisfies all of the following: 6
1398-… 7
1399-b. Is compensated, except for copayments, for the provision of the basic 8
1400-health care services listed in sub-subdivision a. of this subdivision to 9
1401-enrolled participants by a payment which that is paid on a periodic 10
1402-basis without regard to the date the health care services are provided 11
1403-and which that is fixed without regard to the frequency, extent, or kind 12
1404-of health service actually provided. 13
1405-c. Provides physicians' services primarily (i) directly through physicians 14
1406-who are either employees or partners of such organizations, these 15
1407-organizations or (ii) through arrangements with individual physicians 16
1408-or one or more groups of physicians organized on a group practice or 17
1409-individual practice basis. 18
1410-… 19
1411-(9a) Health service. – An organized, interrelated activity that is medical, 20
1412-diagnostic, therapeutic, rehabilitative, or a combination thereof of those and 21
1413-that is integral to the prevention of disease or the clinical management of an 22
1414-individual who is sick or injured or who has a disability. "Health service" The 23
1415-term does not include administrative and other activities that are not integral 24
1416-to clinical management. 25
1417-(9b) (Effective until November 21, 2025 – see note) Health service facility. – A 26
1418-hospital; long-term care hospital; rehabilitation facility; nursing home facility; 27
1419-adult care home; kidney disease treatment center, including freestanding 28
1420-hemodialysis units; intermediate care facility for individuals with intellectual 29
1421-disabilities; home health agency office; diagnostic center; hospice office, 30
1422-hospice inpatient facility, or hospice residential care facility; and or 31
1423-ambulatory surgical facility. 32
1424-… 33
1425-(9c) Health service facility bed. – A bed licensed for use in a health service facility 34
1426-in the categories of (i) acute care beds; (iii) (ii) rehabilitation beds; (iv) (iii) 35
1427-nursing home beds; (v) (iv) intermediate care beds for individuals with 36
1428-intellectual disabilities; (vii) (v) hospice inpatient facility beds; (viii) (vi) 37
1429-hospice residential care facility beds; (ix) (vii) adult care home beds; and (x) 38
1430-(viii) long-term care hospital beds. 39
1431-… 40
1432-(12) Home health agency. – A private organization or public agency, whether 41
1433-owned or operated by one or more persons or legal entities, which that 42
1434-furnishes or offers to furnish home health services. 43
1435-(12a) Home health services. – Items and services furnished to an individual by a 44
1436-home health agency, or by others under arrangements with such others made 45
1437-by the agency, on a visiting basis, and except for sub-subdivision e. of this 46
1438-subdivision, in a place of temporary or permanent residence used as the 47
1439-individual's home as follows: 48
1440-… 49
1441-d. Medical supplies, other than drugs and biologicals biologicals, and the 50
1442-use of medical appliances. 51 General Assembly Of North Carolina Session 2025
1443-House Bill 481-Second Edition Page 29
1444-e. Any of the items and services listed in this subdivision which that are 1
1445-provided on an outpatient basis under arrangements made by the home 2
1446-health agency at a hospital or nursing home facility hospital, nursing 3
1447-home facility, or rehabilitation center facility and the furnishing of 4
1448-which involves the use of equipment of such a nature that the items 5
1449-and services cannot readily be made available to the individual at 6
1450-home, or which that are furnished at the facility while the individual is 7
1451-there to receive any such the item or service, but not including 8
1452-transportation of the individual in connection with any such the item 9
1453-or service. 10
1454-… 11
1455-(13a) Hospice. – Any coordinated program of home care with provision for inpatient 12
1456-care for terminally ill patients and their families. This care is provided by a 13
1457-medically directed interdisciplinary team, directly or through an agreement 14
1458-under the direction of an identifiable hospice administration. A hospice 15
1459-program of care provides palliative and supportive medical and other health 16
1460-services to meet the physical, psychological, social, spiritual, and special 17
1461-needs of patients and their families, which families that are experienced during 18
1462-the final stages of terminal illness and during dying and bereavement. 19
1463-(13b) Hospice inpatient facility. – A freestanding licensed hospice facility or a 20
1464-designated inpatient unit in an existing health service facility which that 21
1465-provides palliative and supportive medical and other health services to meet 22
1466-the physical, psychological, social, spiritual, and special needs of terminally 23
1467-ill patients and their families in an inpatient setting. For purposes of this 24
1468-Article only, a hospital which that has a contractual agreement with a licensed 25
1469-hospice to provide inpatient services to a hospice patient as defined in 26
1470-G.S. 131E-201(4) G.S. 131E-201 and provides those services in a licensed 27
1471-acute care bed is not a hospice inpatient facility and is not subject to the 28
1472-requirements in sub-subdivision (5)b. of this section for hospice inpatient 29
1473-beds.the services provided in this manner are not a redistribution of health 30
1474-service facility bed capacity among the categories of health service facility 31
1475-bed. 32
1476-(13c) Hospice residential care facility. – A freestanding licensed hospice facility 33
1477-which that provides palliative and supportive medical and other health 34
1478-services to meet the physical, psychological, social, spiritual, and special 35
1479-needs of terminally ill patients and their families in a group residential setting. 36
1480-(13d) Hospital. – A public or private institution which that is primarily engaged in 37
1481-providing to inpatients, by or under supervision of physicians, diagnostic 38
1482-services and therapeutic services for medical diagnosis, treatment, and care of 39
1483-injured, disabled, or sick persons, or rehabilitation services for the 40
1484-rehabilitation of injured, disabled, or sick persons. The term includes all 41
1485-facilities licensed pursuant to G.S. 131E-77, except long-term care hospitals. 42
1486-… 43
1487-(14a) Intermediate care facility for individuals with intellectual disabilities. – 44
1488-Facilities licensed pursuant to Article 2 of Chapter 122C of the General 45
1489-Statutes for the purpose of providing health and habilitative services based on 46
1490-the developmental model and principles of normalization for individuals with 47
1491-intellectual disabilities, autism, cerebral palsy, epilepsy epilepsy, or related 48
1492-conditions. 49
1493-… 50 General Assembly Of North Carolina Session 2025
1494-Page 30 House Bill 481-Second Edition
1495-(14e) Kidney disease treatment center. – A facility that is certified as an end-stage 1
1496-renal disease facility by the Centers for Medicare and Medicaid Services, 2
1497-Services of the United States Department of Health and Human Services, 3
1498-Services pursuant to 42 C.F.R. § 405. 4
1499-(14f) "Legacy Medical Care Facility" means a Legacy Medical Care Facility. – A 5
1500-facility that meets all of the following requirements: 6
1501-a. Is not presently operating. 7
1502-b. Has not continuously operated for at least the past six months. 8
1503-c. Within the last 24 months:months, both of the following: 9
1504-1. Was operated by a person holding a license under 10
1505-G.S. 131E-77; andG.S. 131E-77. 11
1506-… 12
1507-(14k) Long-term care hospital. – A hospital that has been classified and designated 13
1508-as a long-term care hospital by the Centers for Medicare and Medicaid 14
1509-Services, Services of the United States Department of Health and Human 15
1510-Services, Services pursuant to 42 C.F.R. § 412. 16
1511-… 17
1512-(14n) Main campus. – All Both of the following for the purposes of 18
1513-G.S. 131E-184(f) and (g) only: 19
1514-… 20
1515-(14o) (Effective until November 21, 2026 – see note) Major medical equipment. – 21
1516-A single unit or single system of components with related functions which that 22
1517-is used to provide medical and other health services and which that costs more 23
1518-than two million dollars ($2,000,000). In determining whether the major 24
1519-medical equipment costs more than two million dollars ($2,000,000), the costs 25
1520-of the equipment, studies, surveys, designs, plans, working drawings, 26
1521-specifications, construction, installation, and other activities essential to 27
1522-acquiring and making operational the major medical equipment shall be is 28
1523-included. The capital expenditure for the equipment shall be is deemed to be 29
1524-the fair market value of the equipment or the cost of the equipment, whichever 30
1525-is greater. Major medical equipment This term does not include replacement 31
1526-equipment as defined in this section. Beginning September 30, 2022, and on 32
1527-equipment. On September 30 of each year thereafter, year, the cost threshold 33
1528-amount in this subdivision shall be adjusted using the Medical Care Index 34
1529-component of the Consumer Price Index published by the U.S. Department of 35
1530-Labor for the 12-month period preceding the previous September 1. 36
1531-… 37
1532-(15b) Neonatal intensive care services. – Those services provided by a health service 38
1533-facility to high-risk newborn infants who require constant nursing care, 39
1534-including but not limited to to, continuous cardiopulmonary and other 40
1535-supportive care. 41
1536-(16) New institutional health services. – Any of the following: 42
1537-… 43
1538-b. (Effective until November 21, 2025 – see note) Except as otherwise 44
1539-provided in G.S. 131E-184(e), the obligation by any a person of a 45
1540-capital expenditure exceeding four million dollars ($4,000,000) to 46
1541-develop or expand a health service or a health service facility, or which 47
1542-that relates to the provision of a health service. The cost of any studies, 48
1543-surveys, designs, plans, working drawings, specifications, and other 49
1544-activities, including staff effort and consulting and staff effort, 50
1545-consulting, and other services, essential to the acquisition, 51 General Assembly Of North Carolina Session 2025
1546-House Bill 481-Second Edition Page 31
1547-improvement, expansion, or replacement of any a plant or equipment 1
1548-with respect to which an expenditure is made shall be is included in 2
1549-determining if the expenditure exceeds four million dollars 3
1550-($4,000,000). Beginning September 30, 2022, and on On September 4
1551-30 of each year thereafter, year, the amount in this sub-subdivision 5
1552-shall be adjusted using the Medical Care Index component of the 6
1553-Consumer Price Index published by the U.S. Department of Labor for 7
1554-the 12-month period preceding the previous September 1. 8
1555-… 9
1556-c. Any A change in bed capacity. 10
1557-… 11
1558-e. A change in a project that was subject to certificate of need review and 12
1559-for which a certificate of need was issued, if the change is proposed 13
1560-during the development of the project or within one year after the 14
1561-project was completed. For purposes of this subdivision, a change in a 15
1562-project is a change of more than fifteen percent (15%) of the approved 16
1563-capital expenditure amount or the addition of a health service that is to 17
1564-be located in the facility, or portion thereof, of the facility, that was 18
1565-constructed or developed in the project. 19
1566-f. The development or offering of a health service as listed in this 20
1567-subdivision any of the following health services by or on behalf of any 21
1568-a person: 22
1569-… 23
1570-f1. The acquisition by purchase, donation, lease, transfer, or comparable 24
1571-arrangement of any of the following equipment by or on behalf of any 25
1572-a person: 26
1573-… 27
1574-l. The purchase, lease, or acquisition of any a health service facility, or 28
1575-portion thereof, of a health service facility, or a controlling interest in 29
1576-the health service facility or portion thereof, of the health service 30
1577-facility, if the health service facility was developed under a certificate 31
1578-of need issued pursuant to G.S. 131E-180. 32
1579-m. Any A conversion of nonhealth service facility beds to health service 33
1580-facility beds. 34
1581-n. The construction, development development, or other establishment of 35
1582-a hospice, hospice inpatient facility, or hospice residential care 36
1583-facility;facility. 37
1584-o. The opening of an additional office by an existing home health agency 38
1585-or hospice within its service area as defined by rules adopted by the 39
1586-Department; or the opening of any an office by an existing home health 40
1587-agency or hospice outside its service area as defined by rules adopted 41
1588-by the Department. 42
1589-p. The acquisition by purchase, donation, lease, transfer, or comparable 43
1590-arrangement by any a person of major medical equipment. 44
1591-… 45
1592-s. The furnishing of mobile medical equipment to any a person to provide 46
1593-health services in North Carolina, which Carolina that was not in use 47
1594-in North Carolina prior to the adoption of this provision, March 18, 48
1595-1993, if the equipment would otherwise be subject to review in 49
1596-accordance with sub-subdivision f1. of this subdivision or 50 General Assembly Of North Carolina Session 2025
1597-Page 32 House Bill 481-Second Edition
1598-sub-subdivision p. of this subdivision if it had been acquired in North 1
1599-Carolina. 2
1600-t. Repealed by Session Laws 2001-242, s. 4, effective June 23, 2001. 3
1601-u. The construction, development, establishment, increase in the number, 4
1602-or relocation of an operating room or gastrointestinal endoscopy room 5
1603-in a licensed health service facility, other than the relocation of an 6
1604-operating room or gastrointestinal endoscopy room within the same 7
1605-building or on the same grounds or to grounds not separated by more 8
1606-than a public right-of-way adjacent to the grounds where the operating 9
1607-room or gastrointestinal endoscopy room is currently located. 10
1608-… 11
1609-(17a) Nursing care. – Any of the following: 12
1610-… 13
1611-c. Health-related care and services provided on a regular basis to 14
1612-individuals who who, because of their mental or physical condition 15
1613-condition, require care and services above the level of room and board, 16
1614-which board that can be made available to them only through 17
1615-institutional facilities. 18
1616-These are services which that are not primarily for the care and treatment 19
1617-of mental diseases. 20
1618-… 21
1619-(20) Project or capital expenditure project. – A proposal to undertake a capital 22
1620-expenditure that results in the offering of a new institutional health service. A 23
1621-project, or capital expenditure project, or proposed project may refer to the 24
1622-project from its earliest planning stages up through the point at which the 25
1623-specified new institutional health service may be offered. In the case of facility 26
1624-construction, the point at which the new institutional health service may be 27
1625-offered must shall take place after the facility is capable of being fully licensed 28
1626-and operated for its intended use, and at that time it shall be considered a health 29
1627-service facility. 30
1628-(21) Psychiatric facility. – A public or private facility licensed pursuant to Article 31
1629-2 of Chapter 122C of the General Statutes and which that is primarily engaged 32
1630-in providing to inpatients, by or under the supervision of a physician, 33
1631-psychiatric services for the diagnosis and treatment of individuals with mental 34
1632-illnesses. 35
1633-… 36
1634-(22) Rehabilitation facility. – A public or private inpatient facility which that is 37
1635-operated for the primary purpose of assisting in the rehabilitation of 38
1636-individuals with disabilities through an integrated program of medical and 39
1637-other services which are provided under competent, professional supervision. 40
1638-(22a) Replacement equipment. – Equipment that costs less than three million dollars 41
1639-($3,000,000) and is purchased for the sole purpose of replacing comparable 42
1640-medical equipment currently in use which that will be sold or otherwise 43
1641-disposed of when replaced. In determining whether the replacement 44
1642-equipment costs less than three million dollars ($3,000,000) ($3,000,000), the 45
1643-costs of equipment, studies, surveys, designs, plans, working drawings, 46
1644-specifications, construction, installation, and other activities essential to 47
1645-acquiring and making operational the replacement equipment shall be is 48
1646-included. The capital expenditure for the equipment shall be is deemed to be 49
1647-the fair market value of the equipment or the cost of the equipment, whichever 50
1648-is greater. Beginning September 30, 2023, and on On September 30 of each 51 General Assembly Of North Carolina Session 2025
1649-House Bill 481-Second Edition Page 33
1650-year thereafter, year, the cost threshold amount in this subdivision shall be 1
1651-adjusted using the Medical Care Index component of the Consumer Price 2
1652-Index published by the U.S. Department of Labor for the 12-month period 3
1653-preceding the previous September 1. 4
1654-… 5
1655-(24a) Service area. – The area of the State, as defined in the State Medical Facilities 6
1656-Plan or in rules adopted by the Department, which that receives services from 7
1657-a health service facility. 8
1658-… 9
1659-(25) State Medical Facilities Plan. – The plan prepared in accordance with 10
1660-G.S. 131E-176.2 by the Department of Health and Human Services and the 11
1661-North Carolina State Health Coordinating Council, Council and approved by 12
1662-the Governor. In preparing the Plan, the Department and the State Health 13
1663-Coordinating Council shall maintain a mailing list of persons who have 14
1664-requested notice of public hearings regarding the Plan. Not less than 15 days 15
1665-prior to a scheduled public hearing, the Department shall notify persons on its 16
1666-mailing list of the date, time, and location of the hearing. The Department 17
1667-shall hold at least one public hearing prior to the adoption of the proposed Plan 18
1668-and at least six public hearings after the adoption of the proposed Plan by the 19
1669-State Health Coordinating Council. The Council shall accept oral and written 20
1670-comments from the public concerning the Plan. 21
1671-…." 22
1672-SECTION 11.2.(b) Article 9 of Chapter 131E of the General Statutes is amended by 23
1673-adding a new section to read: 24
1674-"§ 131E-176.2. State Medical Facilities Plan. 25
1675-The Department of Health and Human Services and the North Carolina State Health 26
1676-Coordinating Council shall prepare and present to the Governor for approval the State Medical 27
1677-Facilities Plan. In preparing the Plan, the Department and the State Health Coordinating Council 28
1678-shall maintain a mailing list of persons that have requested notice of public hearings regarding 29
1679-the Plan. Not less than 15 days prior to a scheduled public hearing, the Department shall notify 30
1680-persons on its mailing list of the date, time, and location of the hearing. The Department shall 31
1681-hold at least one public hearing prior to the adoption of the proposed Plan and at least six public 32
1682-hearings after the adoption of the proposed Plan by the State Health Coordinating Council. The 33
1683-Council shall accept oral and written comments from the public concerning the Plan." 34
1684-SECTION 11.2.(c) G.S. 131E-177 reads as rewritten: 35
1685-"§ 131E-177. Department of Health and Human Services is designated State Health 36
1686-Planning and Development Agency; powers and duties. 37
1687-The Department of Health and Human Services is designated as the State Health Planning 38
1688-and Development Agency for the State of North Carolina, Carolina and is empowered to exercise 39
1689-has all of the following powers and duties: 40
1690-(1) To establish Establish standards and criteria or plans required to carry out the 41
1691-provisions and purposes of this Article and to adopt rules pursuant to Chapter 42
1692-150B of the General Statutes, Statutes to carry out the purposes and provisions 43
1693-of this Article;Article. 44
1694-(2) Adopt, amend, and repeal such rules and regulations, consistent with the laws 45
1695-of this State, rules, as may be required by the federal government for 46
1696-grants-in-aid for health service facilities and health planning which that may 47
1697-be made available by the federal government. This section shall be liberally 48
1698-construed in order that the State and its citizens may benefit from such 49
1699-grants-in-aid;these grants-in-aid. 50 General Assembly Of North Carolina Session 2025
1700-Page 34 House Bill 481-Second Edition
1701-(3) Define, by rule, procedures for submission of periodic reports by persons or 1
1702-health service facilities subject to agency review under this Article;Article. 2
1703-(4) Develop policy, criteria, and standards for health service facilities planning; 3
1704-shall planning. The Department shall conduct statewide registration and 4
1705-inventories of and make determinations of need for health service facilities, 5
1706-health services as specified in G.S. 131E-176(16)f., and equipment as 6
1707-specified in G.S. 131E-176(16)f1., which shall include including 7
1708-consideration of adequate geographic location of equipment and services; and 8
1709-develop a State Medical Facilities Plan;Plan. 9
1710-(5) Implement, by rule, criteria for project review;review. 10
1711-(6) Have the power to grant, Grant, deny, or withdraw a certificate of need and to 11
1712-impose such sanctions as are provided for by this Article;Article. 12
1713-(7) Solicit, accept, hold hold, and administer on behalf of the State any grants or 13
1714-devises of money, securities securities, or property to the Department for use 14
1715-by the Department in the administration of this Article; andArticle. 15
1716-(8) Repealed by Session Laws 1987, c. 511, s. 1. 16
1717-(9) Collect fees for submitting applications for certificates of need. 17
1718-(10) The authority to review Review all records in any recording medium of any 18
1719-person or health service facility subject to agency review under this Article 19
1720-which that pertain to construction and acquisition activities, staffing staffing, 20
1721-or costs and charges for patient care, including but not limited to, construction 21
1722-contracts, architectural contracts, consultant contracts, purchase orders, 22
1723-cancelled checks, accounting and financial records, debt instruments, loan and 23
1724-security agreements, staffing records, utilization statistics statistics, and any 24
1725-other records the Department deems to be reasonably necessary to determine 25
1726-compliance with this Article. 26
1727-The Secretary of Health and Human Services shall have has final decision-making authority 27
1728-with regard to all functions described in this section." 28
1729-SECTION 11.3.(a) G.S. 131E-176(7a), as amended by Section 11.2 of this act, reads 29
1730-as rewritten: 30
1731-"(7a) (Effective November 21, 2026 – see note) Diagnostic center. – A 31
1732-freestanding facility, program, or provider, including but not limited to, 32
1733-physicians' offices, clinical laboratories, radiology centers, and mobile 33
1734-diagnostic programs, in which the total cost of all the medical diagnostic 34
1735-equipment utilized by the facility that costs ten thousand dollars ($10,000) or 35
1736-more exceeds three million dollars ($3,000,000). No facility, program, or 36
1737-provider, including, including but not limited to, physicians' offices, clinical 37
1738-laboratories, radiology centers, or mobile diagnostic programs, shall be 38
1739-deemed a diagnostic center solely by virtue of having a magnetic resonance 39
1740-imaging scanner in a county with a population of greater than 125,000 40
1741-according to the 2020 federal decennial census or any subsequent federal 41
1742-decennial census. In determining whether the medical diagnostic equipment 42
1743-in a diagnostic center costs more than three million dollars ($3,000,000), the 43
1744-costs of the equipment, studies, surveys, designs, plans, working drawings, 44
1745-specifications, construction, installation, and other activities essential to 45
1746-acquiring and making operational the equipment shall be included. The capital 46
1747-expenditure for the equipment is deemed to be the fair market value of the 47
1748-equipment or the cost of the equipment, whichever is greater. On September 48
1749-30 of each year, the cost threshold amount in this subdivision shall be adjusted 49
1750-using the Medical Care Index component of the Consumer Price Index 50 General Assembly Of North Carolina Session 2025
1751-House Bill 481-Second Edition Page 35
1752-published by the U.S. Department of Labor for the 12–month period preceding 1
1753-the previous September 1." 2
1754-SECTION 11.3.(b) G.S. 131E-176(14o), as amended by Section 11.2 of this act, 3
1755-reads as rewritten: 4
1756-"(14o) (Effective November 21, 2026 – see note) Major medical equipment. – A 5
1757-single unit or single system of components with related functions that is used 6
1758-to provide medical and other health services and that costs more than two 7
1759-million dollars ($2,000,000). In determining whether the major medical 8
1760-equipment costs more than two million dollars ($2,000,000), the costs of the 9
1761-equipment, studies, surveys, designs, plans, working drawings, specifications, 10
1762-construction, installation, and other activities essential to acquiring and 11
1763-making operational the major medical equipment is included. The capital 12
1764-expenditure for the equipment is deemed to be the fair market value of the 13
1765-equipment or the cost of the equipment, whichever is greater. This term does 14
1766-not include replacement equipment. equipment or magnetic resonance 15
1767-imaging scanners in counties with a population greater than 125,000 according 16
1768-to the 2020 federal decennial census or any subsequent federal decennial 17
1769-census. On September 30 of each year, the cost threshold amount in this 18
1770-subdivision shall be adjusted using the Medical Care Index component of the 19
1771-Consumer Price Index published by the U.S. Department of Labor for the 20
1772-12-month period preceding the previous September 1." 21
1773-SECTION 11.3.(c) G.S. 131E-176(16)f1.7., as amended by Section 11.2 of this act, 22
1774-reads as rewritten: 23
1775-"7. (Effective November 21, 2026 – see note) Magnetic 24
1776-resonance imaging scanner. This sub-sub-subdivision applies 25
1777-only to counties with a population of 125,000 or less fewer 26
1778-according to the 2020 federal decennial census or any 27
1779-subsequent federal decennial census." 28
1780-SECTION 11.3.(d) This section becomes effective November 21, 2026. 29
1781-SECTION 11.4.(a) G.S. 131E-176(9b), as amended by Section 11.2 of this act, reads 30
1782-as rewritten: 31
1783-"(9b) (Effective November 21, 2025 – see note) Health service facility. – A 32
1784-hospital; long-term care hospital; rehabilitation facility; nursing home facility; 33
1785-adult care home; kidney disease treatment center, including freestanding 34
1786-hemodialysis units; intermediate care facility for individuals with intellectual 35
1787-disabilities; home health agency office; diagnostic center; hospice office, 36
1788-hospice inpatient facility, or hospice residential care facility; or ambulatory 37
1789-surgical facility. The term "health service facility" This term does not include 38
1790-a qualified urban ambulatory surgical facility." 39
1791-SECTION 11.4.(b) This section becomes effective November 21, 2025. 40
1792-SECTION 12. G.S. 150B-1 reads as rewritten: 41
1793-"§ 150B-1. Policy and scope. 42
1794-(a) Purpose. – This Chapter establishes a uniform system of administrative rule making 43
1795-rulemaking and adjudicatory procedures for agencies. The procedures ensure that the functions 44
1796-of rule making, rulemaking, investigation, advocacy, and adjudication are not all performed by 45
1797-the same person in the administrative process. 46
1798-(b) Rights. – This Chapter confers procedural rights. 47
1799-(c) Full Exemptions. – This Chapter applies to every agency except:except the following: 48
1800-… 49
1801-(d) Exemptions from Rule Making. – Rulemaking. – Article 2A of this Chapter does not 50
1802-apply to the following: 51 General Assembly Of North Carolina Session 2025
1803-Page 36 House Bill 481-Second Edition
1804-(1) The Commission. 1
1805-(2) Repealed by Session Laws 2000-189, s. 14, effective July 1, 2000. 2
1806-(3) Repealed by Session Laws 2001-474, s. 34, effective November 29, 2001. 3
1807-(4) The Department of Revenue, with respect to the notice and hearing 4
1808-requirements contained in Part 2 of Article 2A. 2A of this Chapter. With 5
1809-respect to the Secretary of Revenue's authority to redetermine the State net 6
1810-taxable income of a corporation under G.S. 105-130.5A, the Department is 7
1811-subject to the rule-making rulemaking requirements of G.S. 105-262.1. 8
1812-(5) The North Carolina Global TransPark Authority with respect to the 9
1813-acquisition, construction, operation, or use, including fees or charges, of any 10
1814-portion of a cargo airport complex. 11
1815-(6) The Department of Public Safety, Adult Correction, with respect to matters 12
1816-relating to executions under Article 19 of Chapter 15 of the General Statutes 13
1817-and matters relating solely to persons in its custody or under its supervision, 14
1818-including prisoners, probationers, and parolees. 15
1819-… 16
1820-(26) The Board of Agriculture in the Department of Agriculture and Consumer 17
1821-Services with respect to the following: 18
1822-a. Annual admission fees for the State Fair. 19
1823-b. Operating hours, admission fees, or related activity fees at State 20
1824-forests. 21
1825-The Board shall annually post the admission fee and operating hours schedule 22
1826-on its Web site website and provide notice of the schedule, along with a 23
1827-citation to this section, to all persons named on the mailing list maintained 24
1828-pursuant to G.S. 150B-21.2(d). 25
1829-c. Fee schedules for the preparation of forest management plans 26
1830-developed pursuant to G.S. 106-1004. 27
1831-d. Fees for State phytosanitary certificates. 28
1832-(27) The Department of Natural and Cultural Resources with respect to operating 29
1833-hours, admission fees, or related activity fees at:at the following: 30
1834-a. The North Carolina Zoological Park pursuant to G.S. 143B-135.205. 31
1835-b. State parks pursuant to G.S. 143B-135.16. 32
1836-c. The North Carolina Aquariums pursuant to G.S. 143B-135.188. 33
1837-d. The North Carolina Museum of Natural Sciences. 34
1838-The exclusion from rule making rulemaking for the setting of operating hours 35
1839-set forth in this subdivision (i) shall does not apply to a decision to eliminate 36
1840-all public operating hours for the sites and facilities listed and (ii) does not 37
1841-authorize any of the sites and facilities listed in this subdivision that do not 38
1842-currently charge an admission fee to charge an admission fee until authorized 39
1843-by an act of the General Assembly. 40
1844-… 41
1845-(e) Exemptions From Contested Case Provisions. – The contested case provisions of this 42
1846-Chapter apply to all agencies and all proceedings not expressly exempted from the Chapter. The 43
1847-contested case provisions of this Chapter do not apply to the following: 44
1848-… 45
1849-(5) Hearings required pursuant to the Rehabilitation Act of 1973, (Public Law 46
1850-93-122), as amended and federal regulations promulgated thereunder. adopted 47
1851-under it. G.S. 150B-51(a) is considered a contested case hearing provision that 48
1852-does not apply to these hearings. 49
1853-… 50 General Assembly Of North Carolina Session 2025
1854-House Bill 481-Second Edition Page 37
1855-(22) The Department of Public Safety, with respect to matters relating to 1
1856-executions under Article 19 of Chapter 15 of the General Statutes. 2
1857-…." 3
1858-SECTION 13.(a) Section 4C.11(c) of S.L. 2024-53 reads as rewritten: 4
1859-"SECTION 4C.11.(c) No later than November 15, 2024, the Department of Environmental 5
1860-Quality shall prepare and submit to the United States National Oceanic and Atmospheric 6
1861-Administration for approval by that agency the proposed change made to G.S. 113A-118, as 7
1862-enacted by subsection (b) of this section. The Department of Environmental Quality shall report 8
1863-to the Environmental Review Commission on the status of their activities pursuant to this section 9
1864-quarterly, beginning January 1, 2025, until such time as the General Assembly repeals this 10
1865-reporting requirement." 11
1866-SECTION 13.(b) Section 4C.12(c) of S.L. 2024-53 reads as rewritten: 12
1867-"SECTION 4C.12.(c) No later than November 15, 2024, the Department of Environmental 13
1868-Quality shall prepare and submit to the United States National Oceanic and Atmospheric 14
1869-Administration for approval by that agency the proposed change made to G.S. 113A-115.1, as 15
1870-enacted by subsection (b) of this section. The Department of Environmental Quality shall report 16
1871-to the Environmental Review Commission on the status of their activities pursuant to this section 17
1872-quarterly, beginning January 1, 2025, until such time as the General Assembly repeals this 18
1873-reporting requirement." 19
1874-SECTION 13.(c) This section is retroactively effective October 25, 2024. 20
1875-SECTION 14. Section 4 of Chapter 601 of the 1983 Session Laws reads as rewritten: 21
1876-"Sec. 4. This act shall become effective July 1, 1983, and shall be reconsidered on or before 22
1877-July 1, 1989, and every six years thereafter, by the Joint Legislative Commission on 23
1878-Governmental Operations.1983." 24
1879-SECTION 15. Except as otherwise provided, this act is effective when it becomes 25
1880-law. 26
1863+(22) The Department of Public Safety, with respect to matters relating to 13
1864+executions under Article 19 of Chapter 15 of the General Statutes. 14
1865+…." 15
1866+SECTION 13.(a) Section 4C.11(c) of S.L. 2024-53 reads as rewritten: 16
1867+"SECTION 4C.11.(c) No later than November 15, 2024, the Department of Environmental 17
1868+Quality shall prepare and submit to the United States National Oceanic and Atmospheric 18
1869+Administration for approval by that agency the proposed change made to G.S. 113A-118, as 19
1870+enacted by subsection (b) of this section. The Department of Environmental Quality shall report 20
1871+to the Environmental Review Commission on the status of their activities pursuant to this section 21
1872+quarterly, beginning January 1, 2025, until such time as the General Assembly repeals this 22
1873+reporting requirement." 23
1874+SECTION 13.(b) Section 4C.12(c) of S.L. 2024-53 reads as rewritten: 24
1875+"SECTION 4C.12.(c) No later than November 15, 2024, the Department of Environmental 25
1876+Quality shall prepare and submit to the United States National Oceanic and Atmospheric 26
1877+Administration for approval by that agency the proposed change made to G.S. 113A-115.1, as 27
1878+enacted by subsection (b) of this section. The Department of Environmental Quality shall report 28
1879+to the Environmental Review Commission on the status of their activities pursuant to this section 29
1880+quarterly, beginning January 1, 2025, until such time as the General Assembly repeals this 30
1881+reporting requirement." 31
1882+SECTION 13.(c) This section is retroactively effective October 25, 2024. 32
1883+SECTION 14. Section 4 of Chapter 601 of the 1983 Session Laws reads as rewritten: 33
1884+"Sec. 4. This act shall become effective July 1, 1983, and shall be reconsidered on or before 34
1885+July 1, 1989, and every six years thereafter, by the Joint Legislative Commission on 35
1886+Governmental Operations.1983." 36
1887+SECTION 15. Except as otherwise provided, this act is effective when it becomes 37
1888+law. 38