North Carolina HB 696: Various Changes to Nonprofit Corporations Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-1
HOUSE BILL 696

*H696-v-5*
AN ACT MAKING VARIOUS CHANGES TO THE MEDICAID PROGRAM AND OTHER
CHANGES RELATED TO HEALTH AND HUMAN SERVICES, IMPLEMENTING
VARIOUS BUDGETARY ADJUSTMENTS, AND MAKING OTHER CHANGES IN THE
BUDGET OPERATIONS OF THE STATE.

The General Assembly of North Carolina enacts:

PART I. GENERAL PROVISIONS

EXTENSION OF CERTAIN DIRECTED GRANT REVERSIONS
SECTION 1.1.(a) Section 5.3 of S.L. 2023-134, as amended by Section 1.3(a) of
S.L. 2024-1, reads as rewritten:
"...
"SECTION 5.3.(b) Requirements. – Nonrecurring funds appropriated in this act as directed
grants are subject to all of the following requirements:
...
(4) Notwithstanding any provision of G.S. 143C-1-2(b) to the contrary,
nonrecurring funds appropriated in this act for the 2023-2024 fiscal year and
the 2024-2025 fiscal year as directed grants shall not revert until June 30,
2026.2027.
(5) Directed grants to nonprofit organizations are for nonsectarian, nonreligious
purposes only.
"SECTION 5.3.(c) This section expires on June 30, 2026.2027."
SECTION 1.1.(b) Section 1.1(b) of S.L. 2025-4 reads as rewritten:
"SECTION 1.1.(b) Any funds described in subsection (a) of this section that remain
unexpended as of December 31, 2024, shall revert to the appropriate fund at the end of the
2025-2026 2026-2027 fiscal year."
SECTION 1.1.(c) This section is effective June 30, 2026.

PART II. EDUCATION

NORTH CAROLINA BLUE RIBBON COMMISSION ON PUBLIC EDUCATION
SECTION 2.1.(a) There is established the North Carolina Blue Ribbon Commission
on Public Education (Commission).
SECTION 2.1.(b) Membership. – The Commission consists of the following 29
members:
(1) Nineteen voting members appointed jointly by the President Pro Tempore of
the Senate, the Speaker of the House of Representatives, and the Governor.
(2) Five nonvoting members of the Senate appointed jointly by the President Pro
Tempore of the Senate, the Speaker of the House of Representatives, and the
Governor.

Page 2 Session Law 2026-1 House Bill 696
(3) Five nonvoting members of the House of Representatives jointly appointed by
the President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Governor.
SECTION 2.1.(c) Terms; Chairs; Vacancies; Quorum. – Members serve at the
pleasure of the appointing officers. The President Pro Tempore of the Senate, the Speaker of the
House of Representatives, and the Governor shall jointly designate cochairs. The Commission
shall meet upon the call of the cochairs at any date prior to the Commission's termination. The
appointing authorities shall fill any vacancy on the Commission. A quorum for action by the
Commission is a majority of its voting members.
SECTION 2.1.(d) Duties. – The Commission shall study the structure and
implementation of public education in the State. The Commission may examine any of the
following:
(1) Teacher training and student advancement.
(2) Administrative operations.
(3) Educational leadership in the State.
(4) Accountability.
SECTION 2.1.(e) Administration. – The Friday Institute for Educational Innovation
at North Carolina State University (Friday Institute) shall provide professional, clerical, and
consultant services to the Commission. The Legislative Services Officer shall assign professional
and clerical staff to provide technical assistance to the Commission and the Friday Institute upon
request of the President Pro Tempore of the Senate and the Speaker of the House of
Representatives.
SECTION 2.1.(f) Compensation. – Members of the Commission shall receive per
diem, subsistence, and travel allowance as provided in G.S. 120-3.1, 138-5, and 138-6, as
appropriate.
SECTION 2.1.(g) Report; Termination. – The Commission may submit interim
reports and a final report on the results of its work, including any proposed recommendations, to
the General Assembly and the Governor. The Commission shall submit reports to the General
Assembly in accordance with G.S. 120-29.5. The Commission terminates March 1, 2027.
SECTION 2.1.(h) There is appropriated from the General Fund to the Board of
Governors of The University of North Carolina the sum of three hundred thousand dollars
($300,000) in nonrecurring funds for the 2025-2026 fiscal year to be allocated to the Friday
Institute for the administration of the Commission in accordance with this section. Funds
appropriated pursuant to this section shall not revert at the end of the 2025-2026 fiscal year but
shall remain available until June 30, 2027.

CONFORM ELIGIBLE EXPENSES FOR NORTH CAROLINA 529 PLANS TO
FEDERAL LAW
SECTION 2.2. G.S. 116-209.25(b) reads as rewritten:
"(b) Parental Savings Trust Fund. – There is established a parental savings trust fund to be
administered by the State Education Assistance Authority to enable qualified parents and other
interested parties to save funds to meet the costs of education expenses of eligible students in
accordance with section 529 of the Code. For pur