AN ACT to allow for the award of compensation to persons who the court finds were unlawfully detained by the state or a local political subdivision of the state.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 7A of the General Statutes is amended by adding a new Article to read:

Article 64.

Compensation to Persons Erroneously Detained.

§ 7A‑810.  Provision for compensation.

(a)        Notwithstanding any provision of law to the contrary, any person who, having been civilly or criminally detained by the State or a local political subdivision of the State, and who was thereafter found by a court to have been unlawfully detained, may as hereinafter provided present by petition a claim against the State or the local political subdivision of the State for the pecuniary loss sustained by the person through his or her erroneous detention, provided the petition is presented within five years of the court's finding.

(b)        This Article does not apply to any person petitioning for compensation under G.S. 148‑82.

§ 7A‑811.  Form, requisites and contents of petition; nature of hearing.

Such petition shall be addressed to the Industrial Commission and must include a full statement of the facts upon which the claim is based, verified in the manner provided for verifying complaints in civil actions, and it may be supported by affidavits substantiating such claim. Upon its presentation, the Industrial Commission shall fix a time and a place for a hearing, shall mail notice to the claimant, and shall notify the Attorney General or the attorney representing the local political subdivision of the State, at least 15 days before the time fixed therefor.

§ 7A‑812.  Evidence; action by Industrial Commission; payment and amount of compensation.

(a)        At the hearing, the claimant may introduce evidence in the form of affidavits or testimony to support the claim, and the Attorney General or the attorney representing the local political subdivision of the State may introduce counter affidavits or testimony in refutation. If the Industrial Commission finds from the evidence that the claimant was unlawfully detained and suffered harm as a result of the unlawful detention, the Industrial Commission shall award to the claimant an amount equal to fifty thousand dollars ($50,000) for each year or the pro rata amount for the portion of each year of the detention, including any time spent awaiting trial. However, (i) in no event shall the compensation, including the compensation provided in subsection (b) of this section, exceed a total amount of seven hundred fifty thousand dollars ($750,000) and (ii) a claimant is not entitled to compensation for any portion of a detention during which the claimant was also concurrently detained for a lawful purpose.

The Director of the Budget shall pay the amount of the award to the claimant out of the Contingency and Emergency Fund or out of any other available State funds. The Industrial Commission shall give written notice of its decision to all parties concerned. The determination of the Industrial Commission shall be subject to judicial review upon appeal of the claimant or the State according to the provisions and procedures set forth in Article 31 of Chapter 143 of the General Statutes.

(b)        In addition to the compensation provided under subsection (a) of this section, the Industrial Commission shall determine the extent to which the detention has deprived a claimant of educational or training opportunities and, based upon those findings, may award any or all of the following compensation for loss of life opportunities:

(1)        Job skills training for at least one year through an appropriate State program.

(2)        Expenses for tuition and fees at any public North Carolina community college or constituent institution of The University of North Carolina for any degree or program of the claimant's choice that is available from one or more of the applicable institutions. Claimants are also entitled to assistance in meeting any admission standards or criteria required at any of those institutions, including assistance in satisfying requirements for a certificate of equivalency of completion of secondary education. A claimant may apply for aid under this subdivision within 10 years of the claimant's release from detention, and aid shall continue for up to a total of five years when initiated within the 10‑year period, provided the claimant makes satisfactory progress in the courses or degree program in which the claimant is enrolled.

(3)        Any lost wages or other lost benefits that were proximately caused by the detention.

SECTION 2.  There is appropriated from the General Fund to the Contingency and Emergency Fund established in G.S. 143C‑4‑4 the sum of one million dollars ($1,000,000) in nonrecurring funds to be used for any compensation awarded under Article 64 of Chapter 7A of the General Statutes, as enacted by Section 1 of this act.

SECTION 3.  Section 2 of this act becomes effective July 1, 2026. The remainder of this act is effective retroactive to October 1, 2021, and applies to detentions occurring on or after that date.