AN ACT TO APPROPRIATE FUNDS FOR TRAINING AND TECHNOLOGY UPGRADES TO PREVENT AND DETER DEED AND TITLE FRAUD.

The General Assembly of North Carolina enacts:

SECTION 1.  Notwithstanding G.S. 143C‑5‑2, there is appropriated from the General Fund to the Department of the Secretary of State the sum of one million eight hundred thousand dollars ($1,800,000) in nonrecurring funds for the 2025‑2026 fiscal year to be used in collaboration with the North Carolina Association of Registers of Deeds to provide antifraud training for employees of county register of deeds offices. The Department of the Secretary of State, in conjunction with the North Carolina Association of Registers of Deeds, may use an amount not exceeding ten percent (10%) of the funds appropriated in this section for administrative costs.

SECTION 2.  Notwithstanding G.S. 143C‑5‑2, there is appropriated from the General Fund to the Department of Justice the sum of five hundred thousand dollars ($500,000) in nonrecurring funds for the 2025‑2026 fiscal year to be used to create and launch a statewide public awareness campaign on fraud relating to real property.

SECTION 3.  Notwithstanding G.S. 143C‑5‑2, there is appropriated from the General Fund to the Department of Information Technology the sum of thirty million dollars ($30,000,000) in nonrecurring funds for the 2025‑2026 fiscal year to be used to provide need‑based grants to the county register of deeds offices, said grants to be used in accordance with this section. The Department of Information Technology may award grants to the county register of deeds offices for a total amount not exceeding forty percent (40%) of the funds appropriated in this section to be used by the county register of deeds offices to purchase scanning equipment and provide for the digitization and storing of records kept by that office, including, but not limited to, identification cards, passports, and other forms of identification. The Department of Information Technology may award grants to the county register of deeds offices for a total amount not exceeding fifteen percent (15%) of the funds appropriated in this section to be used by the county register of deeds offices for the purchase of software upgrades. The Department of Information Technology may award grants to the county register of deeds offices for a total amount not exceeding ten percent (10%) of the funds appropriated in this section to be used by the county register of deeds offices to procure cloud storage and backup. The Department of Information Technology may award grants to the county register of deeds offices for a total amount not exceeding ten percent (10%) of the funds appropriated in this section to be used by the county register of deeds offices for the purpose of enhancing the digital security of those offices. The Department of Information Technology may award grants to the county register of deeds offices for a total amount not exceeding eight percent (8%) of the funds appropriated in this section to be used by the county register of deeds offices for the purpose of training staff. The Department of Information Technology may award grants to the county register of deeds offices for a total amount not exceeding fifteen percent (15%) of the funds appropriated in this section to be used by the county register of deeds offices for network and hardware improvements, including network improvements that would allow for better communication or integration with the networks and systems maintained by the Secretary of State's Office and municipal tax offices. The Department of Information Technology may use an amount not exceeding two percent (2%) of the funds appropriated in this section for administrative costs. The Department of Information Technology shall develop criteria and an application process for the grants funded by this section.

SECTION 4.  Notwithstanding G.S. 143C‑5‑2, there is appropriated from the General Fund to the Department of Information Technology the sum of one million dollars ($1,000,000) in nonrecurring funds for the 2025‑2026 fiscal year to be used to provide need‑based grants to county register of deeds offices that do not have a fraud detection alert system in place as of the effective date of this section. The Department of Information Technology shall develop a process by which county register of deeds offices may apply for the grants funded by this section.

SECTION 5.  This act becomes effective July 1, 2025.