North Carolina SB 558: Treasurer's Investments.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-21
SENATE BILL 558

*S558-v-4*
AN ACT TO DEMONSTRATE THE GENERAL ASSEMBLY'S INTENT THAT STUDENTS,
PROFESSORS, ADMINISTRATORS, AND OTHER EMPLOYEES OF PUBLIC
INSTITUTIONS OF HIGHER EDUCATION RECOGNIZE THE EQUALITY AND
RIGHTS OF ALL PERSONS AND TO PROHIBIT PUBLIC INSTITUTIONS OF HIGHER
EDUCATION FROM PROMOTING CERTAIN CONCEPTS THAT ARE CONTRARY
TO THAT INTENT.

Whereas, President Trump issued an executive order on January 21, 2025, to ensure
that higher education recipients of federal funds comply with all applicable laws prohibiting
illegal discrimination and comply with the decision of the United States Supreme Court in
Students for Fair Admissions v. Harvard, 600 U.S. 181 (2023); and
Whereas, in the last fiscal year, North Carolina received $2.4 billion in federal funding
for public higher education, demonstrating the importance of ensuring that public institutions of
higher education remain in compliance with federal regulations to protect education funding; and
Whereas, the General Assembly is committed to ensuring all North Carolina students
enrolled in public institutions of higher education receive a meaningful education based on
academic excellence, critical thinking, and the free exchange of ideas; and
Whereas, it is the State's role to protect the practice of higher education for students
and professors; and
Whereas, so-called "DEI" programs promote a worldview that demands people,
especially young students, judge others based on their race, sex, or other factors and attack true
diversity of thought, stifle opportunity, and stoke division; Now, therefore,

The General Assembly of North Carolina enacts:

SECTION 1.(a) G.S. 116-11 is amended by adding a new subdivision to read:
"(9c) The Board of Governors shall adopt a policy on diversity, equity, and
inclusion at constituent institutions of The University of North Carolina that
complies with Article 39 of Chapter 116 of the General Statutes."
SECTION 1.(b) G.S. 115D-5 is amended by adding the following new subsections
to read:
"(aa) The State Board shall adopt a policy on diversity, equity, and inclusion at community
colleges that complies with Article 39 of Chapter 116 of the General Statutes.
(bb) The State Board shall adopt a policy prohibiting community colleges from
establishing, maintaining, or otherwise implementing a process for reporting or investigating
offensive or unwanted speech that is protected by the First Amendment, including satire or
speech labeled as microaggression."
SECTION 2. Chapter 116 of the General Statutes is amended by adding a new
Article to read:
"Article 39.
"Diversity, Equity, and Inclusion.
"§ 116-415. Intent.

Page 2 Session Law 2026-21 Senate Bill 558
The General Assembly finds that Section 1 of Article I of the Constitution of this State
recognizes the equality and rights of all persons. Therefore, it is the intent of the General
Assembly that students, professors, administrators, and other employees of public institutions of
higher education respect the dignity of others, acknowledge the right of others to express
differing opinions, and foster and defend intellectual honesty, freedom of inquiry and instruction,
and freedom of speech and association and that the public institutions of higher education of this
State employ teaching methods and procedures to further that intent.
"§ 116-416. Definitions.
For the purposes of this Article, the following definitions apply:
(1) Applicable governing board. – As follows:
a. For a constituent institution of The University of North Carolina, the
Board of Governors of The University of North Carolina.
b. For a community college, the State Board of Community Colleges.
(2) Chancellor. – The chancellor, president, or chief administrative officer of a
public institution of higher education.
(3) Discriminatory practice. – Any of the following based on an individual's
protected classification under federal law:
a. Treating an individual differently solely to advantage or disadvantage
that individual as compared to other individuals or groups.
b. Excluding an individual from employment, except as allowed under
federal law.
c. Excluding an individual from participation in an educational program
or activity, except as allowed under federal law.
(4) Divisive concept. – Any of the following concepts:
a. One race or sex is inherently superior to another race or sex.
b. An individual, solely by virtue of his or her race or sex, is inherently
racist, sexist, or oppressive.
c. An individual should be discriminated against or receive adverse
treatment solely or partly because of his or her race or sex.
d. An individual's moral character is necessarily determined by his or her
race or sex.
e. An individual, solely by virtue of his or her race or sex, bears
responsibility for actions committed in the past by other members of
the same race or sex.
f. Any individual, solely by virtue of his or her race or sex, should feel
discom