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Old North State Report
June 20, 2025
Old North State Report – June 20, 2025
UPCOMING EVENTS
June 30, 2025
Thinkers Lunch: Political Reporters Roundtable
July 16-July 18, 2025
North Carolina Healthcare Association Summer Meeting
July 20-22, 2025
Association of Executives of North Carolina (AENC) Annual Meeting
October 9-10, 2025
Association of Executives of North Carolina (AENC) Fall Conference
November 13, 2025
LEGISLATIVE NEWS
THE POWER REDUCTION ACT PASSES HOUSE
On Tuesday, the North Carolina House approved the Power Reduction Act, a bill to remove the state's goal of reducing carbon emissions by 70% by 2030. Proponents argue that this change could save residents up to $15 billion in utility costs and better address rising energy demands. Senate Bill 266 passed the House with a vote of 75-36, with some bipartisan support.
The bill targets the emissions requirements set in the 2021 energy law, House Bill 951, which mandated a significant cut in emissions from utilities like Duke Energy, transitioning towards net-zero emissions by 2050. Instead of rigid deadlines, the new legislation focuses on energy reliability, affordability, and cost-effective planning.
Supporters claim that the previous carbon mandate, implemented during the Cooper administration, could lead to higher energy prices for families and businesses. Repealing this mandate would allow for a more diverse energy mix, including natural gas, nuclear, and renewable sources, not confined by strict deadlines. Estimates suggest this bill may lower compliance costs by approximately $15 billion over the next 25 years.
However, opposition arises from environmentalists and renewable industry representatives, who argue it undermines climate change efforts and may slow the transition to clean energy. Concerns also center around a mechanism called Construction Work in Progress (CWIP), which lets utilities charge ratepayers for construction costs before power generation begins. Senate Bill 266 introduces new limits on CWIP, requiring the North Carolina Utilities Commission to verify overall cost savings for long-term utility projects.
The bill’s supporters assert that it is not about halting investments in new energy generation but rather about finding a balance between affordability and infrastructure needs. They argue the measure is part of a broader goal to adjust energy policy away from strict carbon reduction targets toward what they call a "least-cost" approach to energy.
Senate Bill 266 will return to the Senate for final approval and, if passed, will be presented to Governor Josh Stein, who has not yet made a public commitment regarding the bill.
Read more by The Carolina Journal
BILL OVERHAULING CHILD WELFARE SYSTEM WINS COMMITTEE APPROVAL
On June 5, the Senate Health Committee approved a bill aimed at reforming the child welfare system to provide more stability for children in foster care. House Bill 612 will increase the oversight of local child welfare decisions by the state Department of Health and Human Services and establish specific timeframes for court hearings regarding foster care placements. It will allow courts to authorize post-adoption contact agreements between biological and adoptive parents.
Legislators have been discussing changes to child welfare laws for years. Supporter Representative Allen Chesser (R-Nash) described the bill as a long-overdue, bipartisan effort. However, some members raised concerns that the bill could discourage infant adoptions.
The bill allows an unmarried biological father up to three months after a child’s birth to establish paternity and pursue a relationship before losing his parental rights. If a father learns that a mother concealed her pregnancy or the birth, he has 30 days to claim paternity. Adoptive parent Natalie Carscadden expressed fear that this provision could create anxiety for adoptive families, as it allows potential fathers to claim custody after birth, increasing legal risks. Chesser mentioned that the measure aims to clarify what constitutes a "timely manner" in legal proceedings.
The Senate also combined this bill with three others that have passed the House:
- House Bill 795, which extends financial aid for guardians of children not available for adoption;
- House Bill 162, which mandates background checks for child-related workers; and
- House Bill 182, which enables judges to issue permanent no-contact orders for violent offenders.
HOUSE BILL 737 – DOI OMNIBUS BILL ADVANCES
On Tuesday, June 10, the Senate Commerce and Insurance Committee passed a proposed committee substitute for House Bill 737 (License Course Removal/Insurance Producers) and transformed the original bill to a Department of Insurance omnibus bill. The contents of the revised bill retain the provisions of the original bill regarding removal of pre-licensing training requirements, but add 11 new sections to the bill, which makes several changes to the laws governing the business of insurance. Those proposed changes are:
- Remove training course requirements to be licensed as an insurance producer.
- Clarify the cap on fees paid for referring insurance business to insurance producers.
- Enhance oversight of insurance company holding systems as required to maintain NAIC accreditation.
- Amend the North Carolina Professional Employer Organization Act.
- Amend the North Carolina Insurance Guaranty Association Act.
- Clarify permitted trade practices with respect to insurance rebates.
- Amend laws governing the exchange of business between insurance producers.
- Require motor vehicle operators who are subject to the inexperienced operators premium surcharge under the Safe Drivers Incentive Plan (SDIP) to maintain or benefit from continuous liability coverage.
- Regulate peer-to-peer vehicle sharing programs.
- Restrict residential leases that require renters’ insurance.
- Amend applicability of legislation lengthening the SDIP clean driving experience period.
- Authorize brokers to register with multiple dealers under common ownership or control.
The bill was referred to Senate Rules and will likely be voted on by the full Senate and sent back to the House for concurrence in the changes made to the original bill by the Senate.
Read more from North Carolina General Assembly - Bill Analysis
REINS ACT CONTINUES TO ADVANCE
On Tuesday, the North Carolina Senate passed House Bill 402, known as the “REINS Act,” with a 26-17 vote. This legislation seeks to introduce new checks on regulatory bodies and reduce the economic burden of government rules. It requires that any rule costing $20 million or more over five years must get approval from the General Assembly, while rules costing over $10 million need unanimous approval from the rulemaking board. For rules exceeding $1 million, a two-thirds supermajority vote is required. The bill also changes the definition of “substantial economic impact” from $1 million over one year to $1 million over five years.
Supporters of the bill believe it will promote transparency and accountability, allowing the General Assembly to review costly rules made by unelected officials. They argue that this approach will protect residents and businesses from overregulation. Conversely, critics caution that the REINS Act may slow down necessary regulations in areas like public health and environmental protection due to increased legislative hurdles. The bill now awaits consideration by the North Carolina House for amendments before going to Governor Josh Stein for approval.
Read more by The Carolina Journal
HOUSE BILL 489 WOULD PROTECT AGAINST EXCESSIVE AMBULANCE BILLS
In May, the North Carolina House of Representatives passed House Bill 489 with a unanimous vote of 111-0. This bill aims to protect residents from high ambulance bills by requiring insurance companies to accept rates set by local governments. The measure is now pending in the state Senate.
Under the bill, counties' rates for emergency medical services (EMS) must be recognized by insurers. It establishes a minimum reimbursement at 100% of the local government-approved rate, or if none exists, at either 400% of the Medicare rate or the provider’s billed charges. Representative Donnie Loftis, who sponsored the bill, stated that citizens should not bear the burden of increased costs since they pay taxes for EMS services. The bill addresses surprise billing during emergencies when patients have no options.
Most EMS agencies are currently out-of-network for private insurers, leading to hefty ambulance bills, even for those with good insurance. An analysis found that around 60% of emergency ground ambulance rides are out of network nationally. The bill would require insurers to treat ground ambulance rides as in-network and limit patient costs to no more than $100 per ride.
Business groups express concern that the bill might increase health insurance costs by guaranteeing high payments to ambulance providers. However, supporters argue that fair reimbursement rates are essential for the survival of many EMS agencies, which face rising operational costs and low reimbursement rates from insurers.
Read more by The Carolina Journal
LAWMAKERS TO STUDY USE OF PSYCHEDELIC DRUGS FOR MENTAL HEALTH
Psychedelic drugs, often seen as illegal recreational substances, are being researched for their medical benefits by scientists and physicians in the United States. At UNC Chapel Hill, studies are underway, and North Carolina lawmakers are discussing the potential use of psychedelics for mental health treatment.
In March, a bipartisan bill was introduced to create a task force that will evaluate the feasibility of these treatments in the state. Senate Bill 568, sponsored by Senator Sophia Chitlik (D-Durham), did not pass before crossover week, but bipartisan action may still occur. Advocates are expected to go to Raleigh in June to encourage lawmakers to consider a bill this session. Army combat veteran Sally Roberts and others visited Raleigh this week to urge lawmakers to increase access to psychedelic therapy for PTSD.
An estimated 182 veterans in North Carolina commit suicide each year, which Senator Chitlik believes is a preventable tragedy. With the highest number of veterans per capita, North Carolina should lead research on new treatments as they get FDA approval, allowing veterans to receive care closer to home.
The task force intends to examine the integration of these treatments into North Carolina's mental health system, rather than creating a recreational market. However, psychedelic therapies can be expensive and are usually not covered by insurance, an issue the task force hopes to address.
WHAT WE’RE LISTENING TO
- Under the Dome Podcast
- Do Politics Better Podcast
- WUNC Politics Podcast
- Carolina Newsmakers Podcast
- NC Capitol Wrap Podcast
WHAT WE’RE READING
GET IN TOUCH
These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel.