GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2023

SESSION LAW 2024-28

HOUSE BILL 228

AN ACT to make various technical, clarifying, and administrative changes to the revenue laws, to make technical changes to the medicaid hospital assessment statutes, and to update the definition of a threshold EXCLUSION, AND TO INCREASE THE BOND DEBT LIMIT FOR THE HOUSING FINANCE AGENCY.

The General Assembly of North Carolina enacts:

part i. individual income tax changes

SECTION 1.1.(a)  G.S. 105‑160.4(f) and (g) are repealed.

SECTION 1.1.(b)  This section is effective for taxable years beginning on or after January 1, 2023.

SECTION 1.2.(a)  G.S. 105‑153.3 reads as rewritten:

§ 105‑153.3.  Definitions.

The following definitions apply in this Part:

…

(7a)      Income attributable to the State. – Either of the following:

a.         With respect to a partnership, all items of income, loss, deduction, or credit of the partnership apportioned and allocated to this State pursuant to G.S. 105‑130.4.

b.         With respect to an S Corporation, as defined in G.S. 105‑131(b)(4).

(7b)      Income not attributable to the State. – Either of the following:

a.         With respect to a partnership, all items of income, loss, deduction, or credit of the partnership other than income attributable to the State.

b.         With respect to an S Corporation, as defined in G.S. 105‑131(b)(5).

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SECTION 1.2.(b)  This section is effective for taxable years beginning on or after January 1, 2023.

SECTION 1.3.  G.S. 105‑153.8 reads as rewritten:

§ 105‑153.8.  Income tax returns.

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(e)        Joint Returns. – A husband and wife Two lawfully married individuals who are required to file an income tax return pursuant to subsection (a) of this section and whose adjusted gross income is determined on a joint federal return must file a single with the Secretary a joint income tax return jointly if each spouse either is a resident of this State or has North Carolina taxable income and may file a single income tax return jointly if one spouse is not a resident and has no North Carolina taxable income. return. If two lawfully married individuals file a joint federal return but only one individual is required to file an income tax return pursuant to subsection (a) of this section, that individual must file the income tax return pursuant to subsection (f) of this section. Except as otherwise provided in this Part, the following provisions apply to the individuals filing a joint income tax return:

(1)        a wife and husband filing jointly The individuals are treated as one taxpayer for the purpose of determining the tax imposed by this Part.

(2)        A husband and wife filing jointly are Each individual is jointly and severally liable for the tax imposed by this Part reduced by the sum of all credits allowable including tax payments made by or on behalf of the husband and wife. each individual. However, if a spouse one of the individuals qualifies for relief of liability for federal tax pursuant to section 6015 of the Code, that spouse individual is not liable for the corresponding tax imposed by this Part.

(3)        A wife and husband filing jointly have Each individual has expressly agreed that if the amount of the payments made by them with respect to the taxes for which they are liable, including withheld and estimated taxes, exceeds the total of the taxes due, refund of the excess may be made payable to both spouses individuals jointly or, if either is deceased, to the survivor alone.

(f)        Exception. – If two lawfully married individuals file a joint federal return but only one individual is required to file an income tax return pursuant to subsection (a) of this section, that individual must file the income tax return as either of the following:

(1)        Jointly under the provisions of subsection (e) of this section based on the filing status of married, filing jointly/surviving spouse.

(2)        Separately based on the filing status of married, filing separately.

SECTION 1.4.(a)  G.S. 105‑155(a) reads as rewritten:

(a)      Return. – An income tax return shall be filed at the place and in the form prescribed by the Secretary. The income tax return of every taxpayer reporting on a calendar year basis is due on or before the fifteenth day of April in each year. The income tax return of every taxpayer reporting on a fiscal year basis is due on or before the fifteenth day of the fourth month following the close of the fiscal year. These dates do not apply to a nonresident alien whose federal income tax return is due at a later date under section 6072(c) of the Code. The return of a nonresident alien affected by that Code section is due on or before the fifteenth day of the sixth month following the close of the taxable year. An information return shall be filed at the times prescribed by the Secretary. A taxpayer may ask the Secretary for receive an extension of time to file a return under G.S. 105‑263.

SECTION 1.4.(b)  G.S. 105‑160.6 reads as rewritten:

§ 105‑160.6.  Time and place of filing returns.

An income tax return of an estate or a trust shall be filed as prescribed by the Secretary at the place prescribed by the Secretary. The return of every fiduciary reporting on a calendar year basis shall be filed on or before the 15th day of April in each year, and the return of every fiduciary reporting on a fiscal year basis shall be filed on or before the 15th day of the fourth month following the close of the fiscal year. A fiduciary may ask the Secretary for receive an extension of time to file a return under G.S. 105‑263.

SECTION 1.4.(c)  G.S. 105‑130.17(d) reads as rewritten:

(d)      A taxpayer may ask the Secretary for receive an extension of time to file a return under G.S. 105‑263.

SECTION 1.4.(d)  G.S. 105‑129 reads as rewritten:

§ 105‑129.  Extension of time for filing returns.

A return required by this Article is due on or before the date set in this Article. A taxpayer may ask the Secretary for receive an extension of time to file a return under G.S. 105‑263.

SECTION 1.5.  Except as otherwise provided, this Part is effective when it becomes law.

part ii. sales tax changes

SECTION 2.1.(a)  G.S. 105‑164.8 reads as rewritten:

§ 105‑164.8.  Retailer's obligation to collect tax; remote sales subject to tax.

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(b)        Remote Sales. – A retailer who makes a remote sale is engaged in business in this State and is subject to the tax levied under this Article if at least one of the following conditions is met:

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(9)        The retailer makes gross sales in excess of one hundred thousand dollars ($100,000) from remote sales sourced to this State, including sales as a marketplace seller, for the previous or the current calendar year that meet either of the following:year.

a.         Gross sales in excess of one hundred thousand dollars ($100,000).

b.         Two hundred or more separate transactions.

(10)      The retailer is a marketplace facilitator that makes sales, gross sales in excess of one hundred thousand dollars ($100,000), including all marketplace‑facilitated sales for all marketplace sellers, from sales sourced to this State for the previous or the current calendar year that meet either of the following:year.

a.         Gross sales in excess of one hundred thousand dollars ($100,000).

b.         Two hundred or more separate transactions.

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SECTION 2.1.(b)  This section is effective July 1, 2024. A person who holds a certificate of registration with the Department as of June 30, 2024, and is solely engaged in business in the State because the person exceeds the transaction threshold established in G.S. 105‑164.8(b)(9)b. or G.S. 105‑164.8(b)(10)b. may close the person's certificate of registration in accordance with procedures established by the Secretary. The person must collect tax, file returns, and remit tax for periods ending prior to the later of (i) July 1, 2024, or (ii) the date the person cancels his or her certificate of registration.

SECTION 2.2.  G.S. 105‑164.3(259) reads as rewritten:

(259)  Streamlined Agreement. – The Streamlined Sales and Use Tax Agreement as amended as of December 22, 2022.November 7, 2023.

SECTION 2.3.(a)  G.S. 105‑241.8(b) reads as rewritten:

(b)      Exceptions. – The exceptions to the general statute of limitations for proposing an assessment are as follows:

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(5)        Sales and use tax customer refund. – If a purchaser receives a refund from a seller of sales and use tax paid to the seller, the period for proposing an assessment against the customer of any tax refunded is three years after the date of the refund.

SECTION 2.3.(b)  This section becomes effective July 1, 2024, and applies to assessments not barred by the statute of limitations prior to that date.

SECTION 2.4.  G.S. 105‑236 reads as rewritten:

§ 105‑236.  Penalties; situs of violations; penalty disposition.

(a)        Penalties. – The following civil penalties and criminal offenses apply:

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(5a)      Misuse of Exemption Certificate. Certificate or Affidavit of Capital Improvement. – For misuse of an exemption certificate or affidavit of capital improvement by a purchaser, the Secretary shall assess a penalty equal to two hundred fifty dollars ($250.00). An exemption certificate is a certificate issued by the Secretary that authorizes a retailer to sell tangible personal property an item to the holder of the certificate and either collect tax at a preferential rate or not collect tax on the sale. Examples of an exemption certificate include a certificate of exemption, a direct pay certificate, and a conditional exemption certificate. An affidavit of capital improvement substantiates that a contract, or a portion of work to be performed to fulfill a contract, is to be taxed for sales and use tax purposes as a real property contract.

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SECTION 2.5.  G.S. 105‑164.4H(a1) reads as rewritten:

(a1)    Substantiation. – Generally, services to real property are retail sales of or the gross receipts derived from repair, maintenance, and installation services and subject to tax in accordance with G.S. 105‑164.4(a)(16), unless a person substantiates that a transaction is subject to tax as a real property contract in accordance with subsection (a) of this section, subject to tax as a mixed transaction in accordance with subsection (d) of this section, or the transaction is not subject to tax. A person may substantiate that a transaction is a real property contract or a mixed transaction by records that establish the transaction is a real property contract or by receipt of an affidavit of capital improvement. The receipt of an affidavit of capital improvement, absent fraud or other egregious activities, establishes that the subcontractor or other person receiving the affidavit should treat the transaction as a capital improvement, and the transaction is subject to tax in accordance with subsection (a) of this section. A person that issues an affidavit of capital improvement is liable for any additional tax due on the transaction, in excess of tax paid on related purchases under subsection (a) of this section, if it is determined that the transaction is not a capital improvement but rather the transaction is subject to tax as a retail sale. A person who receives an affidavit of capital improvement from another person, person within 90 days of the sale or within 120 days of a substantiation request by the Secretary, absent fraud or other egregious activities, is not liable for any additional tax on the gross receipts from the transaction if it is determined that the transaction is not a capital improvement.

The Secretary may establish guidelines for transactions where an affidavit of capital improvement is not required, but rather a person may establish by records that such transactions are subject to tax in accordance with subsection (a) of this section.

SECTION 2.6.  Except as otherwise provided, this Part is effective when it becomes law.

part iii. excise tax changes

SECTION 3.1.  G.S. 105‑113.83 reads as rewritten:

§ 105‑113.83.  Payment and reporting of excise taxes.

(a)        Filing Periods. – The excise tax imposed by this Article is payable when a report is due. A report is due annually or monthly, as specified in this section, and must be filed regardless of whether alcoholic beverages were sold or otherwise disposed of in this State. A report covers liabilities that accrue in the reporting period. Liabilities accrue in the reporting period in which the alcoholic beverage is first sold or otherwise disposed of in this State. A return must be in the form prescribed by, and contain information required by, the Secretary.

(a1)      Liquor. – The excise tax on liquor levied under G.S. 105‑113.80(c) is payable monthly by the local ABC board and by a distillery permittee to the Secretary. The tax shall be paid distillery. The local ABC board and distillery must file a monthly report, and the report is due on or before the 15th day of the month following the month in which the tax was collected.covered by the report.

(b)        Malt Beverage and Wine. – The excise taxes on malt beverages and wine levied under G.S. 105‑113.80(a) and (b), respectively, are payable to the Secretary by the resident wholesaler or importer who first handles the beverages in this State. The taxes on malt beverages and wine are payable only once on the same beverages. Unless otherwise provided, the tax is The wholesaler or importer must file a monthly report, and the report is due on or before the 15th day of the month following the month in which the beverage is first sold or otherwise disposed of in this State by the wholesaler or importer. When excise taxes are paid on wine or malt beverages, the wholesaler or importer must submit to the Secretary verified reports on forms provided by the Secretary detailing covered by the report. The report must include the sales records for the month for which the taxes are paid. The report must paid, indicate the amount of excise tax due, contain the information required by the Secretary, and indicate separately any transactions to which the excise tax does not apply.

(b1)      Brewery and Winery Option. – A brewery or winery may be relieved of paying the tax levied under G.S. 105‑113.80(a) and (b) if all of the following apply:

(1)        The brewery or winery holds a permit issued under G.S. 18B‑1101, 18B‑1102, or 18B‑1104.

(2)        The brewery or winery transfers malt beverages or wine to a wholesaler permitted under G.S. 18B‑1107 or G.S. 18B‑1109.

(3)        The wholesaler agrees in writing to be responsible for the tax due on the transferred malt beverages or wine.wine and provides the Secretary a copy of the agreement upon request.

(4)        The brewery or winery files a monthly report when the tax would otherwise be due reporting the transfer of malt beverages or wine to the wholesaler.

(b2)      Backup Tax Liability. – If a brewery or winery is relieved of paying the excise tax as provided under subsection (b1) of this section, the wholesaler receiving the malt beverages or wine is liable for any tax due under this section.

(b3)      Wine Shipper Permittee. – A wine shipper permittee must pay the excise tax levied under G.S. 105‑113.80(b) on wine shipped directly to consumers in this State pursuant to G.S. 18B‑1001.1. A wine shipper permittee must submit verified file reports once a year on forms provided by the Secretary detailing sales records for the year taxes are paid. The verified report is due on or before the fifteenth day of the first month of the following calendar year.

(c)        Railroad Sales. – Each person operating a railroad train in this State on which alcoholic beverages are sold must submit file monthly reports of the amount of alcoholic beverages sold in this State and must remit the applicable excise tax due on the sale of these beverages when the report is submitted. State. The report is due on or before the 15th fifteenth day of the month following the month in which the beverages are sold. The report must be made on a form prescribed by the Secretary.covered by the report.

SECTION 3.2.  G.S. 105‑449.45(a) reads as rewritten:

(a)      Return. – A motor carrier must report its operations to the Secretary on a quarterly basis unless subsection (b) of this section exempts the motor carrier from this requirement. A licensed motor carrier required to report its operations must file a return even if the person did not operate or cause to operate a qualified motor vehicle during the reporting period. A quarterly return covers a calendar quarter and is due by the last day of the month following the quarter. A return must be filed in the form required by the Secretary.

SECTION 3.3.  This Part is effective when it becomes law.

part Iv. tax administration changes

SECTION 4.1.  Section 5.6(e) of S.L. 2022‑13 reads as rewritten:

SECTION 5.6.(e)  Subsection (a) of this section becomes effective June 30, 2022. Subsection (b) of this section becomes effective January 1, 2023, and applies to tax assessed on or after that date. Subsection (c) of this section becomes law July 1, 2024, July 1, 2027, and applies to tax assessed on or after that date. The remainder of this section is effective when this act becomes law.

SECTION 4.2.  This Part is effective when it becomes law.

Part v. MEDICAID HOSPITAL ASSESSMENTS TECHNICAL CORRECTIONS

SECTION 5.1.(a)  G.S. 108A‑145.3(4a) reads as rewritten:

(4a)    Consumer Price Index: All Urban Consumers. – The most recent Consumer Price Index for All Urban Consumers for the South Region published by the Bureau of Labor Statistics of the United States Department of Labor available on March 1 of the previous State fiscal year.Labor.

SECTION 5.1.(b)  G.S. 108A‑145.3(4b) reads as rewritten:

(4b)    Consumer Price Index: Medical Care. – The most recent Consumer Price Index for All Urban Consumers for Medical Care, U.S. city average, seasonally adjusted, published by the Bureau of Labor Statistics of the United States Department of Labor.

SECTION 5.1.(c)  G.S. 108A‑145.3(12a) reads as rewritten:

(12a)  Medicare Economic Index. – The index published by the Medicare Economic Index Technical Advisory Panel established by the Secretary of the United States Department of Health and Human Services, under the authority in 42 U.S.C. § 217a, percent change in the Medicare Economic Index established in rule by CMS and in effect on March 1 of the previous State fiscal year.

SECTION 5.1.(d)  G.S. 108A‑147.7 reads as rewritten:

§ 108A‑147.7.  Administration component.

(a)        The administration component is an amount of money that is calculated by adding the State administration subcomponent calculated under subsection (b) of this section and the county administration subcomponent calculated under subsection (c) of this section.

(b)        For each quarter of the 2023‑2024 State fiscal year, the State administration subcomponent is the product of one million three hundred fifty thousand dollars ($1,350,000) multiplied by the number of months in that State fiscal quarter in which G.S. 108A‑54.3A(24) is effective during any part of the month. For each quarter of the 2024‑2025 State fiscal year, the State administration subcomponent is four million fifty thousand dollars ($4,050,000) increased by the Consumer Price Index: All Urban Consumers. four million one hundred eighty‑seven thousand seven hundred dollars ($4,187,700). For each subsequent State fiscal year, the State administration subcomponent shall be increased over the prior year's quarterly amount by a percentage that is the sum of each monthly percentage change in the Consumer Price Index: All Urban Consumers.Consumers for the most recent 12 months available on March 1 of the previous State fiscal year.

(c)        For each quarter of the 2022‑2023 State fiscal year and the 2023‑2024 State fiscal year, the county administration subcomponent is the product of one million six hundred sixty‑seven thousand dollars ($1,667,000) multiplied by the number of months in that State fiscal quarter in which G.S. 108A‑54.3A(24) is effective during any part of the month. The county administration subcomponent is seven million four hundred thousand dollars ($7,400,000) for each quarter of the 2024‑2025 State fiscal year and seven million eight hundred thousand dollars ($7,800,000) for each quarter of the 2025‑2026 State fiscal year. For each State fiscal year after the 2025‑2026 State fiscal year, the county administration subcomponent shall be increased over the prior year's quarterly amount by a percentage that is the sum of each monthly percentage change in the Consumer Price Index: All Urban Consumers.Consumers for the most recent 12 months available on March 1 of the previous State fiscal year.

SECTION 5.2.(a)  G.S. 108A‑145.3(19) reads as rewritten:

(19)    Private hospital historical assessment share. – Eighty and two‑tenths seventeen hundredths percent (80.2%), (80.17%), expressed as a decimal.

SECTION 5.2.(b)  G.S. 108A‑145.3(21) reads as rewritten:

(21)    Public hospital historical assessment share. – Nineteen and eight‑tenths eighty‑three hundredths percent (19.8%), (19.83%), expressed as a decimal.

SECTION 5.3.(a)  G.S. 108A‑145.3 is amended by adding a new subdivision to read:

(22a)  Rural emergency hospital. – As defined in 42 C.F.R. § 485.502.

SECTION 5.3.(b)  G.S. 108A‑145.3(18) reads as rewritten:

(18)    Private acute care hospital. – An acute care hospital that (i) is not qualified to certify public expenditures as described in 42 C.F.R. § 433.51(b), (ii) is not a critical access hospital, (iii) is not a rural emergency hospital, and (iii) (iv) is not part of the UNC Health Care System.

SECTION 5.3.(c)  G.S. 108A‑145.3(20) reads as rewritten:

(20)    Public acute care hospital. – An acute care hospital that (i) is qualified to certify public expenditures as described in 42 C.F.R. § 433.51(b), (ii) is not a critical access hospital, (iii) is not a rural emergency hospital, (iv) is not part of the UNC Health Care System, and (iv) (v) is not the primary affiliated teaching hospital for the East Carolina University Brody School of Medicine.

SECTION 5.3.(d)  G.S. 108A‑146.9(c) reads as rewritten:

(c)      The subcomponent pertaining to claims for which there is third‑party coverage is the product of the total fee‑for‑service payments for claims not attributable to newly eligible individuals for which there is third‑party coverage made for inpatient hospital services and outpatient hospital services to (i) public acute care hospitals, (ii) private acute care hospitals, and (iii) critical access hospitals hospitals, and (iv) rural emergency hospitals multiplied by the nonfederal share for not newly eligible individuals.

SECTION 5.3.(e)  G.S. 108A‑147.9(b)(1) reads as rewritten:

(1)      Sixty percent (60%) of the public hospital share of the sum of the presumptive service cost component calculated under G.S. 108A‑147.5 for the current quarter, the administration component calculated under G.S. 108A‑147.7 for the current quarter, and the State retention component under G.S. 108A‑147.8 for the current quarter. The public hospital share is the total hospital costs for all public acute care hospitals divided by the total hospital costs for all acute care hospitals except for critical access hospitals and rural emergency hospitals for the current quarter.

SECTION 5.3.(f)  G.S. 108A‑147.9(c)(1) reads as rewritten:

(1)      The UNC Health Care System share of the presumptive service cost component calculated under G.S. 108A‑147.5 for the current quarter and the administration component calculated under G.S. 108A‑147.7 for the current quarter. The UNC Health Care System share is the total hospital costs for the UNC Health Care System hospitals divided by the total hospital costs for all acute care hospitals except for critical access hospitals and rural emergency hospitals for the current quarter.

SECTION 5.3.(g)  G.S. 108A‑147.9(d)(1) reads as rewritten:

(1)      The East Carolina University share of the presumptive service cost component calculated under G.S. 108A‑147.5 for the current quarter and the administration component calculated under G.S. 108A‑147.7 for the current quarter. The East Carolina University share is the total hospital costs for the primary affiliated teaching hospital for the East Carolina University Brody School of Medicine divided by the total hospital costs for all acute care hospitals except for critical access hospitals and rural emergency hospitals for the current quarter.

SECTION 5.3.(h)  G.S. 108A‑147.11(c) reads as rewritten:

(c)      The share of public hospital costs is calculated by adding total hospital costs for the UNC Health Care System, total hospital costs for the primary affiliated teaching hospital for the East Carolina University Brody School of Medicine, and sixty percent (60%) of the total hospital costs for all public acute care hospitals and dividing that sum by the total hospital costs for all acute care hospitals except for critical access hospitals and rural emergency hospitals.

SECTION 5.3A.  G.S. 108A‑145.3(26) reads as rewritten:

(26)    University of North Carolina Health Care System (UNC Health Care System). – As established in G.S. 116‑37 G.S. 116‑350.5 and including the following hospitals:

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SECTION 5.4.  This Part is effective on the first day of the next assessment quarter after the date this act becomes law and applies to assessments imposed on or after that date.

part vi. update the definition of threshold exclusion for purposes of high‑cost home loans

SECTION 6.(a)  G.S. 24‑1.1E reads as rewritten:

§ 24‑1.1E.  Restrictions and limitations on high‑cost home loans.

(a)        Definitions. – The following definitions apply for the purposes of this section:

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(6)        Thresholds means:

a.         Without regard to whether the loan transaction is or may be a residential mortgage transaction (as the term residential mortgage transaction is defined in section 226.2(a)(24) of Title 12 of the Code of Federal Regulations, as amended from time to time), the annual percentage rate of the loan at the time the loan is consummated is such that the loan is considered a mortgage under section 152 of the Home Ownership and Equity Protection Act of 1994 (Pub. Law 103‑25, [15 U.S.C. § 1602(aa)]), as the same may be amended from time to time, and regulations adopted pursuant thereto by the Federal Reserve Board, including section 226.32 of Title 12 of the Code of Federal Regulations, as the same may be amended from time to time;

b.         The total points and fees, as defined in G.S. 24‑1.1E(a)(5), exceed five percent (5%) of the total loan amount if the total loan amount is twenty thousand dollars ($20,000) or more, or (ii) the lesser of eight percent (8%) of the total loan amount or one thousand dollars ($1,000), if the total loan amount is less than twenty thousand dollars ($20,000); provided, the following discount points and prepayment fees and penalties shall be excluded from the calculation of the total points and fees payable by the borrower:

1.         Up to and including two bona fide loan discount points payable by the borrower in connection with the loan transaction, but only if the interest rate from which the loan's interest rate will be discounted does not exceed by more than one percentage point (1%) the required net yield for a 90‑day standard mandatory delivery commitment for a reasonably comparable loan from either Fannie Mae or the Federal Home Loan Mortgage Corporation, whichever is greater;the average prime offer rate as defined in 12 C.F.R. § 1026.35 that applies to a comparable transaction, as published by the United States Consumer Financial Protection Bureau as of the last date the discounted interest rate for the transaction is set before consummation;

2.         Up to and including one bona fide loan discount point payable by the borrower in connection with the loan transaction, but only if the interest rate from which the loan's interest rate will be discounted does not exceed by more than two percentage points (2%) the required net yield for a 90‑day standard mandatory delivery commitment for a reasonably comparable loan from either Fannie Mae or the Federal Home Loan Mortgage Corporation, whichever is greater;the average prime offer rate as defined in 12 C.F.R. § 1026.35 that applies to a comparable transaction, as published by the United States Consumer Financial Protection Bureau as of the last date the discounted interest rate for the transaction is set before consummation;

3.         For a closed‑end loan, prepayment fees and penalties which may be charged or collected under the terms of the loan documents which do not exceed one percent (1%) of the amount prepaid, provided the loan documents do not permit the lender to charge or collect any prepayment fees or penalties more than 30 months after the loan closing;

4.         For an open‑end credit plan, prepayment fees and penalties which may be charged or collected under the terms of the loan documents which do not exceed one percent (1%) of the amount prepaid, provided the loan documents do not permit the lender to charge or collect any prepayment fees or penalties more than (i) 30 months after the loan closing if the borrower has no right or option under the loan documents to repay all or any portion of the outstanding balance of the open‑end credit plan at a fixed interest rate over a specified period of time or, (ii) if the borrower has a right or option under the loan documents to repay all or any portion of the outstanding balance of the open‑end credit plan at a fixed interest rate over a specified period of time, 30 months after the date the borrower voluntarily exercises that right or option; or

c.         If the loan is a closed‑end loan, the loan documents permit the lender to charge or collect prepayment fees or penalties more than 30 months after the loan closing or which exceed, in the aggregate, more than two percent (2%) of the amount prepaid. If the loan is an open‑end credit plan, the loan documents permit the lender to charge or collect prepayment fees or penalties (i) more than 30 months after the loan closing if the borrower has no right or option under the loan documents to repay all or any portion of the outstanding balance of the open‑end credit plan at a fixed interest rate over a specified period of time or, (ii) if the borrower has a right or option under the loan documents to repay all or any portion of the outstanding balance of the open‑end credit plan at a fixed interest rate over a specified period of time, more than 30 months after the date the borrower voluntarily exercises that right or option, or (iii) which exceed, in the aggregate, more than two percent (2%) of the amount prepaid.

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SECTION 6.(b)  This Part becomes effective June 1, 2024.

Part vii. increase fee for NC tennis foundation special plate

SECTION 7.(a)  G.S. 20‑79.7 reads as rewritten:

§ 20‑79.7. Fees for special registration plates and distribution of the fees.

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(a1)      Fees. – All other special registration plates are subject to the regular motor vehicle registration fee in G.S. 20‑87 or G.S. 20‑88 plus an additional fee in the following amount:

Special Plate                                                                     Additional Fee Amount

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NC Tennis Foundation                                                     $20.00$30.00

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(b)        Distribution of Fees. – The Special Registration Plate Account and the Collegiate and Cultural Attraction Plate Account are established within the Highway Fund. The Division must credit the additional fee imposed for the special registration plates listed in subsection (a1) of this section among the Special Registration Plate Account (SRPA), the Collegiate and Cultural Attraction Plate Account (CCAPA), the North Carolina Land and Water Fund (NCLWF) which is established under G.S. 143B‑135.234, and the Parks and Recreation Trust Fund, which is established under G.S. 143B‑135.56, as follows:

Special Plate                                 SRPA         CCAPA            NCLWF             PRTF

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NC Tennis Foundation                  $10               $10$20              0                            0

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All other Special Plates                 $10               0                        0                            0.

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SECTION 7.(b)  This section becomes effective July 1, 2024.

part viii. Increase housing finance aGENCY Bond Debt Limit

SECTION 8.  G.S. 122A‑8 reads as rewritten:

§ 122A‑8.  Bonds and notes.

The Agency is hereby authorized to provide for the issuance, at one time or from time to time, of bonds and notes of the Agency to carry out and effectuate its corporate purposes. The Agency also is hereby authorized to provide for the issuance, at one time or from time to time of (i) bond anticipation notes in anticipation of the issuance of such bonds and (ii) construction loan notes to finance the making or purchase of mortgage loans to sponsors of residential housing for the construction, rehabilitation or improvement of residential housing. The total amount of bonds, bond anticipation notes, and construction loan notes outstanding at any one time shall not exceed three billion dollars ($3,000,000,000) twelve billion dollars ($12,000,000,000) excluding therefrom any bond anticipation notes for the payment of which bonds have been issued. The principal of and the interest on such bonds or notes shall be payable solely from the funds herein provided for such payment. Any such notes may be made payable from the proceeds of bonds or renewal notes or, in the event bond or renewal note proceeds are not available, such notes may be paid from any available revenues or assets of the Agency. The bonds or notes of each issue shall be dated and may be made redeemable before maturity at the option of the Agency at such price or prices and under such terms and conditions as may be determined by the Agency. Any such bonds or notes shall bear interest at such rate or rates as may be determined by the Local Government Commission of North Carolina with the approval of the Agency. Notes shall mature at such time or times not exceeding 10 years from their date or dates and bonds shall mature at such time or times not exceeding 43 years from their date or dates, as may be determined by the Agency. The Agency shall determine the form and manner of execution of the bonds or notes, including any interest coupons to be attached thereto, and shall fix the denomination or denominations and the place or places of payment of principal and interest, which may be any bank or trust company within or without the State. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or notes or coupons attached thereto shall cease to be such officer before the delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The Agency may also provide for the authentication of the bonds or notes by a trustee or fiscal agent. The bonds or notes may be issued in coupon or in registered form, or both, as the Agency may determine, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes. Upon the filing with the Local Government Commission of North Carolina of a resolution of the Agency requesting that its bonds and notes be sold, such bonds or notes may be sold in such manner, either at public or private sale, and for such price as the Commission shall determine to be for the best interest of the Agency and best effectuate the purposes of this Chapter, as long as the sale is approved by the Agency.

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part IX. EFFECTIVE DATE

SECTION 9.  Except as otherwise provided, this act is effective when it becomes law.

In the General Assembly read three times and ratified this the 28th day of June, 2024.

                                                                    s/  Phil Berger

                                                                         President Pro Tempore of the Senate

                                                                    s/  Tim Moore

                                                                         Speaker of the House of Representatives

                                                                    s/  Roy Cooper

                                                                         Governor

Approved 12:03 p.m. this 1st day of July, 2024