North Carolina HB 433: Land Use Surrounding Military Installations.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2026-3
HOUSE BILL 433

*H433-v-7*
AN ACT DIRECTING THE OFFICE OF STATE BUDGET AND MANAGEMENT TO
RECLASSIFY UNEXPENDED STATE FISCAL RECOVERY FUND BALANCES AND
OTHER FUNDING, AUTHORIZING THE NORTH CAROLINA PANDEMIC
RECOVERY OFFICE TO REALLOCATE STATE FISCAL RECOVERY FUNDS,
DIRECTING THE OFFICE OF STATE BUDGET AND MANAGEMENT TO USE
INTEREST EARNED ON VARIOUS FUNDS FOR OPERATIONS PERTAINING TO
PANDEMIC RELIEF, AND EXTENDING THE DATE ON WHICH THE NORTH
CAROLINA PANDEMIC RECOVERY OFFICE WILL CEASE TO OPERATE.

The General Assembly of North Carolina enacts:

STATE FISCAL RECOVERY FUND AND OTHER ADJUSTMENTS
SECTION 1.(a) Section 6.9 of S.L. 2025-97 reads as rewritten:
"...
"SECTION 6.9.(b) The Office of State Budget and Management (OSBM), in consultation
with NCPRO, shall identify all State Fiscal Recovery Fund (SFRF)-funded projects with
remaining unexpended balances that were categorized as revenue loss and used for government
services. The Director of the Budget may reclassify such unexpended SFRF balances to support
other eligible government services (i) only to the extent permitted under federal law and federal
guidance; (ii) only from funds that were properly obligated on or before December 31, 2024; and
(iii) with expenditures made consistent with 31 C.F.R. Part 35 and related United States
Department of the Treasury guidance. A reclassification under this subsection may occur during
the 2025-2026 fiscal year and, to the extent necessary to comply with federal requirements,
within the applicable federal period of performance, if all of the following conditions are
satisfied:
(1) The governmental service to receive SFRF support was previously supported
by SFRF appropriations.
(2) The governmental service receives a net General Fund appropriation in the
2025-2026 fiscal year.
(3) The governmental service is an eligible use of SFRF under 31 C.F.R. Part 35
and related United States Department of the Treasury guidance during the
period of performance.
"SECTION 6.9.(c) To implement subsection (b) of this section, the Director of the Budget
shall make nonrecurring, budget-neutral adjustments as follows:
(1) Reduce, on a nonrecurring basis, the 2025-2026 or 2026-2027 fiscal year net
General Fund appropriation for each agency receiving SFRF pursuant to this
section by an amount equal to the SFRF reclassified to that agency.
(2) Increase, on a nonrecurring basis, the net General Fund appropriation for each
agency from which SFRF were reclassified under this section by an amount
equal to the SFRF removed from that agency.
(3) Notwithstanding G.S. 143C-1-2(b), the net General Fund appropriations made
under subdivision (2) of this subsection shall be used only for the projects for

Page 2 Session Law 2026-3 House Bill 433
which SFRF were reduced under this section and shall not revert but shall
remain available until the earlier of project completion or June 30, 2027.
(4) In no event shall a project from which SFRF are reclassified receive net
General Fund appropriations in excess of the project's unexpended SFRF
balance as of the date of reclassification.
...
"SECTION 6.9.(e) No later than April 15, 2026, OSBM and NCPRO shall jointly report to
the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division
on all actions taken under this section, including:
(1) For each agency and project meeting the revenue-loss criteria in subsection
(a) of this section, the project name and the amount of remaining unexpended
SFRF as of December 31, 2025. The report shall also identify which projects
are complete and have excess SFRF funds and which SFRF projects need
additional funds for completion.
(2) For each agency and project from which unexpended SFRF were reclassified,
the project name and the amount of the corresponding nonrecurring net
General Fund appropriation provided in lieu of SFRF.
(3) For each agency and project receiving SFRF pursuant to the reclassification,
the project name and the amount of SFRF provided.
The report shall also certify that all SFRF were obligated on or before December 31, 2024, and
that expenditures are being made consistent with 31 C.F.R. Part 35 and related United States
Department of the Treasury guidance.
"SECTION 6.9.(f) The Director of the Budget shall ensure that implementation of this
section results in no change to the net General Fund appropriations in either the 2025-2026 or
2026-2027 fiscal year.years."
SECTION 1.(b) No later than January 15, 2027, OSBM and NCPRO shall jointly
update the report required by Section 6.9(e) of S.L. 2025-97, as amended by subsection (a) of
this section, to reflect agency and project status through December 31, 2026.
SECTION 1.1. Subdivision (5) of Section 6.2 of S.L. 2026-1 reads as rewritten:
"(5) Funds allocated to the Office of State Budget and Management by Section
12.2(f)(2) of S.L. 2023-134 to provide a grant to the Burke Partnership for
Economic Development, In