North Carolina HB 506: 2025 State Investment Modernization Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-6
HOUSE BILL 506

*H506-v-6*
AN ACT TO ENACT THE 2025 STATE INVESTMENT MODERNIZATION ACT, AS
RECOMMENDED BY THE STATE TREASURER.

The General Assembly of North Carolina enacts:

PART I. TECHNICAL REORGANIZATION OF ARTICLE 6 OF CHAPTER 147 OF
THE GENERAL STATUTES
SECTION 1.1. Article 6 of Chapter 147 of the General Statutes is amended to add
the following new Parts:
(1) Part 1, to be entitled "General" and consisting of G.S. 147-65 through
G.S. 147-69.
(2) Part 2, to be entitled "Investments and Funds" and consisting of G.S. 147-69.1
through G.S. 147-69.7.
(3) Part 3, to be entitled "Reports and Audits" and consisting of G.S. 147-69.8
through G.S. 147-69.70.
(4) Part 4, to be entitled "North Carolina Investment Authority" and consisting of
G.S. 147-70.1 through G.S. 147-73.2.
(5) Part 5, to be entitled "Department Bookkeeping and Deposits" and consisting
of G.S. 147-74 through G.S. 147-86.2.
SECTION 1.2.(a) G.S. 147-65 is recodified as G.S. 147-65.2.
SECTION 1.2.(a1) G.S. 147-66 is repealed.
SECTION 1.2.(b) G.S. 147-69.3A is recodified as G.S. 147-67.1.
SECTION 1.2.(c) G.S. 147-69.11 is recodified as G.S. 147-73.2.
SECTION 1.2.(d) G.S. 147-69.7 is recodified as G.S. 147-70.6.
SECTION 1.2.(e) G.S. 147-70 is recodified as G.S. 147-68.3.
SECTION 1.2.(f) G.S. 147-71 is recodified as G.S. 147-68.4.
SECTION 1.2.(g) G.S. 147-72 is repealed.
SECTION 1.2.(h) G.S. 147-73 is repealed.
SECTION 1.2.(i) G.S. 147-75 is recodified as G.S. 147-66.2.
SECTION 1.2.(j) G.S. 147-75.1 is recodified as G.S. 147-68.5.
SECTION 1.2.(k) G.S. 147-86.2 is recodified as G.S. 147-68.6.
SECTION 1.3. Subsection (i2) of G.S. 147-69.3 is recodified as subsection (b) of
G.S. 147-65.2, as created by Section 1.2(a) of this Part.
SECTION 1.4. This Part is effective when it becomes law.

PART II. CREATION OF THE NORTH CAROLINA INVESTMENT AUTHORITY
SECTION 2.1. Part 1 of Article 6 of Chapter 147 of the General Statutes, as created
and amended by Part I of this act, is amended by adding a new section to read:
"§ 147-65.1. Definitions.
The following definitions apply in this Article:
(1) Board of Directors. – The Board of Directors of the North Carolina Investment
Authority.

Page 2 Session Law 2025-6 House Bill 506
(2) Chief Investment Officer or CIO. – The Chief Investment Officer of the
Investment Authority.
(3) Department. – The Department of State Treasurer.
(4) Escheats Fund. – The Escheats Fund established under Article 1A of Chapter
116B of the General Statutes.
(5) Investment Authority. – The North Carolina Investment Authority,
established under Part 4 of this Article.
(6) Reserved for future codification purposes.
(7) Retirement Systems. – This term includes all of the following retirement
systems:
a. The Teachers' and State Employees' Retirement System, established
under Article 1 of Chapter 135 of the General Statutes.
b. The Consolidated Judicial Retirement System, established under
Article 4 of Chapter 135 of the General Statutes.
c. The North Carolina Firefighters' and Rescue Squad Workers' Pension
Fund, established under Article 86 of Chapter 58 of the General
Statutes.
d. The Local Governmental Employees' Retirement System, established
under Article 3 of Chapter 128 of the General Statutes.
e. The Legislative Retirement System of North Carolina, established
under Article 1A of Chapter 120 of the General Statutes.
f. The North Carolina National Guard Pension Fund, established under
Article 3 of Chapter 127A of the General Statutes.
g. The Registers of Deeds' Supplemental Pension Fund, established
under Article 3 of Chapter 161 of the General Statutes.
h. The Retiree Health Benefit Fund, established under G.S. 135-7(f).
i. The North Carolina Teachers' and State Employees' Benefit Trust,
established under G.S. 135-7(g).
(8) Treasurer. – The State Treasurer."
SECTION 2.2. Part 4 of Article 6 of Chapter 147 of the General Statutes, as created
and amended by Part I of this act, reads as rewritten:
"Part 4. North Carolina Investment Authority.
"§ 147-70.1. Creation of Investment Authority.
(a) Creation. – The North Carolina Investment Authority is created as a body corporate
and politic having the powers and jurisdiction as provided under this Article or any other law.
The Investment Authority is a State agency for the performance of essential governmental and
public functions. The Investment Authority is located within, but independent from the control
of, the Department of State Treasurer. The Investment Authority shall have perpetual succession.
(b) Independence. – The Investment Authority, in carrying out its statutory
responsibilities, shall be independent of any fiscal control exercised by the Director of the
Budget, the Department of Administration, and the Department of State Treasurer, including for
organizational, staffing, procurement, and budgetary purposes. Except as provided under
subsection (c) of this section and unless otherwise explicitly provided by law, th