Senate committee approves amended House Bill 926, Regulatory Reform Act of 2025, and forwards substitute to rules

A North Carolina Senate committee advanced House Bill 926, the Regulatory Reform Act of 2025, after adopting three amendments and voting to roll the bill into a new committee substitute and refer it to the Senate Rules Committee.

The bill, described on the committee floor as a package of previously passed or agreed-upon measures, would make technical and substantive changes across state regulation. Sponsors said the bill includes provisions to streamline permitting, adjust notice periods for the Department of Environmental Quality (DEQ), clarify local pavement and sidewalk standards, and update professional licensing and consumer-disclosure rules for audiologists and hearing-aid sales.

Committee members debated and adopted three amendments offered by Senator Moffitt. The first amendment (H926-ABE-41 v7) clarifies an ATR (Alternative Teacher Receivership) provision by adding language to authorize ATR schools within the ATR unit. The second amendment (H926-ARI-87 v1) removes stormwater permitting language from a section that the sponsor said was not yet ready for inclusion with the sewer permitting changes; Senate staff described that removal as eliminating the original section 20. The third amendment (H926-ARI-88 v3) adjusts DEQ notice periods—changing one 60-day notice period to 45 days, another from 30 to 45 days—and inserts a cross-reference in the bill text. All three amendments were adopted by voice vote.

Senator Moffitt, who explained the amendments, summarized the bill's principal sections for the committee. She said Section 1 authorizes certain on-site wastewater evaluators to issue denials to speed alternate septic-system approvals (language previously in House Bill 376). Section 2 clarifies surveyors' rights of entry (previously in House Bill 435). Section 3 addresses inspection cancellation fees by prohibiting a fee if the inspecting agency receives notice at least one day before the scheduled inspection. Section 4 limits municipal pavement design requests to the standards required by the Department of Transportation. Section 5 requires coordination with the NCDOT on pedestrian improvements and clarifies how sidewalks in extra-territorial jurisdiction (ETJ) areas are handled. Section 6 creates a fire-flow exemption allowing model homes to be built before utilities are complete, with use of the home prohibited until fire flow is available. Section 7 temporarily extends class-size flexibility for ATR districts and requires the Department of Public Instruction to track related data. Sections 8 and 9 amend audiology licensure and hearing-aid disclosure and record-keeping requirements; sponsors said the changes end dual licensure and require three-year records for ‘‘locked’’ hearing-aid sales. Section 10 concerns buyer-agent compensation contracts in real estate; Sections 11–14 and later sections contain various clarifications on local development application wait times, flag display protections, workplace food-service exceptions, and Office of Administrative Hearings notice requirements. Section 18 exempts certain UNC and State Construction Office projects in Buncombe, Watauga and Wake counties from local zoning rules, and Section 22 streamlines mining permits. The bill’s effective date is listed in Section 23.

Committee members asked targeted questions during debate. Senator Chikla asked whether DEQ had been consulted on the notice-period changes; Senator Moffitt said the changes were driven by DEQ. Senator Abbott raised concerns about preemption of local control. When asked how often second reviews were requested for stormwater permits after initial review, the sponsor responded, "Almost every permit." A member of the public, Adam Mellenbacher, representing the North Carolina Audiology Association and speaking as an audiologist, praised the audiology provisions, saying, "Before this, there was needless over regulation for audiologists requiring us to be underneath 2 different licensing boards. Now we're only under 1. It removes a barrier to entry to the field, and it helps us comply with an interstate compact, which will help other audiologists come into the state of North Carolina to help address some of the shortages of hearing health care in the state."

After debate and the amendments’ adoption, Senator Craven moved that the PCS (Proposed Committee Substitute) as amended be rolled into a new committee substitute, that the committee give the substitute a favorable report to the Senate Rules Committee, and that staff be authorized to make technical and conforming changes. The committee approved the motion by voice vote; the clerk recorded the action as "motion carried." The committee did not record a roll-call tally in the transcript.

The committee’s action puts the amended committee substitute on track for consideration by the full Senate subject to scheduling by the Rules Committee. The transcript indicates stakeholders and agencies—including DEQ, NCDOT and the Department of Health and Human Services—were involved in drafting or agreeing to portions of the bill, according to sponsors, but specific implementation steps for many provisions (for example, DEQ rule changes or local government coordination) were not detailed during the session.

Votes at a glance

- Adoption of amendment H926-ABE-41 v7 (clarifying ATR authorization): adopted by voice vote; mover: Senator Moffitt; outcome: approved (voice vote; tally not specified). - Adoption of amendment H926-ARI-87 v1 (removing stormwater from a permitting-review provision and eliminating original section 20): adopted by voice vote; mover: Senator Moffitt; outcome: approved (voice vote; tally not specified). - Adoption of amendment H926-ARI-88 v3 (DEQ notice-period and cross-reference adjustments): adopted by voice vote; mover: Senator Moffitt; outcome: approved (voice vote; tally not specified). - Motion to roll the PCS into a new committee substitute, give the substitute a favorable report to Senate Rules, and authorize technical/conforming edits (mover: Senator Craven): approved (voice vote; "motion carried").

Clarifying details and limits of local authority recorded in the committee discussion include: a reported change to DEQ notice periods (60 days → 45 days; 30 days → 45 days) and the removal of one stormwater review provision (original section 20 removed). Sponsors stated that many sections replicate language previously passed in House or Senate bills and that stakeholders had reached agreement on the updated language. Where the transcript or sponsors did not provide specific numbers, the committee did not record numerical vote tallies or complete implementation timelines.

What to watch next: the bill, in its committee-substitute form, is referred to the Senate Rules Committee for scheduling to the Senate floor. Agencies noted during the hearing (DEQ, NCDOT, DHHS) may need to update rules or implementation guidance if the substitute becomes law.