State revenue projections released late last Friday indicate $2.6B more than estimated will be collected this fiscal year, a strong indication of the healthy condition of North Carolina’s economy and positive news for the state House and Senate budget writers currently working to produce a draft taxation and spending proposal for consideration by the General Assembly the week of June 15th. 

While the legislature is taking a ‘spring break’ next week, with no committee meetings or votes scheduled, it does appear the behind-closed-door budget negotiations between the House and Senate are continuing to make progress. 

Legislation of Interest this Week 

As reported previously, IIANC legislative items, including further refinement to the certificate of insurance law and stronger sanctions on lenders violating the prohibition on requiring a replacement cost estimator as a condition of issuing a loan, will be contained in a proposed committee substitute (called a PCS, which is when language in an existing bill is removed and replaced with language on a different topic). 

The PCS was scheduled to be heard in committee on Thursday, but the meeting was postponed, and will now be heard when the legislature returns after next week’s break. 

Thanks to IIANC member and Senate Commerce and Insurance Committee chair Senator Todd Johnson (R – Union) for his work to advance these issues.

Also likely to be heard in committee after next week is SB 857, legislation recommended by the NC Department of Insurance that includes language to update and modernize the statutory language relative to the licensing of funeral directors, bail bondsmen, and insurance agents.  

The bill also contains language to clarify that an insurance agent license is not subject to a law enacted last year to allow those holding a professional license (such as plumbers and HVAC technicians) in a state that borders NC to do business in this state. There are already in place reciprocity agreements among states that guide the regulation of insurance agent licenses.

Healthcare Issues 

Two bills of interest: 

HB 565 (also a PCS) was heard in the Senate Health Care Committee this week (discussed, but no vote taken), which seeks to limit the use of AI systems by hospitals and healthcare providers to review patient clinical records searching for ways to generate additional charges (called ‘upcoding’).  

A spokesperson for the association representing hospitals in North Carolina testified that the use of AI is more to find where medical procedures conducted had not been billed. 

We continue to monitor legislation that proposes to reduce from 12 to 5 the minimum number of individuals who can be covered by a level-funded health plan. 

Identical bills were filed in the House and Senate, HB 156 and SB 218 (the House version passed in that chamber in 2025), but there is no consensus among the health insurance carriers on this proposal, making it far less likely to be taken up before the General Assembly adjourns for the year. 

And, check out the iHEAL Minute in this week’s Raleigh Report video, when Senator Gale Adcock (D – Wake), a licensed family nurse practitioner, talks about the healthcare and health insurance priorities she hopes are taken up during the 2026 Session.

Final Note

The GOP legislative leadership is looking to place some proposed amendments to the state constitution on the November ballot, passing legislation this week mostly along partisan lines to have voters consider capping the state personal income tax at 3.5%, and permitting the General Assembly to limit the property tax imposed by city and county governments.  

Already on the ballot will be an amendment to require photo ID for mail-in ballots; other pending proposals include an amendment to protect the right of individuals to farm and forestry as well as the right to work without having to be a union member, and to make the positions on the State Board of Education elected.