HB 506 — 2025 State Investment Modernization Act.
Last action — Signed by Gov. 6/13/2025
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced March 24, 2025. Enacted.
Signed by Governor Josh Stein (Democratic) on June 13, 2025.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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7 sponsors
3 primary, 4 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (7 R).
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Cleared a recorded vote
Passed 2 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
825 added · 800 removedPlain-language change summary
The latest version of House Bill 506 includes some changes in the organization of certain statutes, with several sections being recodified or repealed. Specifically, G.S. 147-66 has been removed, and several other statutes have been given new numbering to make the legal references clearer. These changes help streamline the legal framework, which is important for ensuring that laws are easier to navigate and understand. By simplifying the numbering system, it may also reduce confusion for those trying to locate or reference these laws.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 21 HOUSE BILL 506 Committee Substitute Favorable 4/16/25 Short Title:
Representatives B.
Jones, K.
Hall, Ross, and Tyson (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Pensions and Retirement, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House March 26, 2025 A BILL TO BE ENTITLED AN ACT TO ENACT THE 2025 STATE INVESTMENT MODERNIZATION ACT, AS RECOMMENDED BY THE STATE TREASURER.
*H506-v-1* General Assembly Of North Carolina Session 2025 PART II.
CREATION OF THE NORTH CAROLINA INVESTMENT AUTHORITY *H506-v-2* General Assembly Of North Carolina Session 2025 SECTION 2.1.
Page 2 House Bill 506-Second506-First Edition General Assembly Of North Carolina Session 2025 (c) Fiduciary Funds.
(a) Property owned or acquired by the AuthorityisAuthority is exempt from all taxes imposed by the State or any political subdivision of the State.
House Bill 506-Second506-First Edition Page 3 General Assembly Of North Carolina Session 2025 (c) The Investment Authority mayextend a conditional offer of employment pending the results of a criminal history record check authorized by this section.
Page 4 House Bill 506-Second506-First Edition General Assembly Of North Carolina Session 2025 (e) Vacancies.
House Bill 506-Second506-First Edition Page 5 General Assembly Of North Carolina Session 2025 (1) The Board of Directors has the authority to approve all of the following:
Page 6 House Bill 506-Second506-First Edition General Assembly Of North Carolina Session 2025 (c) Authority to Contract for Services.
House Bill 506-Second506-First Edition Page 7 General Assembly Of North Carolina Session 2025 Any delegation of authority by the Board of Directors shall require Board of Directors approval and shall reserve certain strategic decisions and extraordinary investment decisions to the Board of Directors.
Page 8 House Bill 506-Second506-First Edition General Assembly Of North Carolina Session 2025 (b) This section applies to funds held by deposited with the State Treasurer to the credit of:of all of the following:
House Bill 506-Second506-First Edition Page 9 General Assembly Of North Carolina Session 2025 3.
Page 10 House Bill 506-Second506-First Edition General Assembly Of North Carolina Session 2025 (1) The Teachers' and State Employees' Retirement System of North Carolina.
(17) TrustfundsofTheUniversityofNorthCarolinaanditsconstituentinstitutionsTrustfundsofTheUniversityofNorthCarolinaandits constituentinstitutions deposited with the State Treasurer pursuant to G.S.
The State Treasurer Investment Authority may House Bill 506-Second506-First Edition Page 11 General Assembly Of North Carolina Session 2025 invest the funds as provided in this subsection in the manner authorized by subsection (e) of this section.
(7) Retirement Systems' assets referred to in subdivision (8) of this subsection may be invested in strategies managed primarily for the purpose of owning Page 12 House Bill 506-Second506-First Edition General Assembly Of North Carolina Session 2025 real estate or related debt financing, excluding asset-backed financing and timberlands, located within or outside the United States.
… (10a) With respect to Retirement Systems' assets, as defined in subdivision (8) of this subsection, the market value of any of subdivision (6c) or (7), House Bill 506-Second506-First Edition Page 13 General Assembly Of North Carolina Session 2025 sub-subdivision b.
of subdivision (8), and subdivisions (9) and (9a) (6c), (7), (8), (9), and (9a) of this subsection shall not exceed thirty-five percent (35%) eighty percent (80%) of the market value of all invested assets of the Retirement Systems.Systems.Systems, including any digital assets invested pursuant to G.S.
147-69.2E(c).
The State Treasurer shall also appoint a Secretary of the Investment Advisory CommitteewhoneedCommitteewho need not beamemberofthe committee.committee.Members ofthe committeeshall receive for their services the same per diem and allowances granted to members of the State boards and commissions generally.
Members ofthe committeeshall receive for their services the same per diem and allowances granted to members of the State boards and commissions generally.
Funds deposited pursuant to Page 14 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 this subsection by a hospital shall remain the funds of that hospital, and interest or other investment income earned thereon shall be prorated and credited to the contributing hospital on Page 14 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 the basis of the amounts thereof contributed, figured according to sound accounting principles.
For investments from the Funds made under subdivisions (b)(6c) and (b)(8) of this section, the State Treasurer Investment Authority may require a minimum deposit of up to House Bill 506-First Edition Page 15 General Assembly Of North Carolina Session 2025 one hundred thousand dollars ($100,000) and may assess reasonable fees of up to 15 basis points House Bill 506-Second Edition Page 15 General Assembly Of North Carolina Session 2025 per annum as a condition of making the investment.
147-70.6, including financial, operational, and investment expertise and resources, alignment of interests Page 16 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 andinvestorprotections,transparencyandrepeatabilityofinvestmentprocess, risk controls, and cost-effectiveness.
Page 16 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 (3) For any third-party investment management arrangements, the investment manager must have total assets under management of at least one hundred million dollars ($100,000,000) at the inception of the investment management arrangement with the State Treasurer.
House Bill 506-First Edition Page 17 General Assembly Of North Carolina Session 2025 The State Treasurer and the Governor shall jointly The Investment Authority shall develop and adopt an investment policy statement for the Venture Capital Multiplier Fund.
House Bill 506-Second Edition Page 17 General Assembly Of North Carolina Session 2025 The State Treasurer and Governor shall jointly adopt a common policy to prevent conflicts of interests such that (i) the designees of the State Treasurer and Governor who selected the third-partyinvestment management firm, (ii) the staff of the State Treasurer overseeingthe Fund, and (iii) the third-party investment management firm's employees selecting or overseeing Fund investments do not provideservices forcompensation (as an employee,consultant, orotherwise), within two years after the end of their service to the Fund, to any entity in which an investment from the Fund was made.
"§ 147-69.2E.
Investments in digital assets.
(a) The following definitions apply in this section:
(1) Designated funds.
– Any of the funds described in G.S.
147-69.1(b) and G.S.
147-69.2(a).
(2) Digital asset.
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– A virtual currency, cryptocurrency, native electronic asset, stablecoin, nonfungible token, or any other asset that is only digital and that confers economic, proprietary, or access rights or powers.
Page 18 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 (3) Private key.
– A unique element of cryptographic data used for signing transactions on a blockchain that is known to the owner of the unique element.
(4) Secure custody solution.
– A technological product or a blended product and service that employs advanced security measures to safeguard private keys and prevent unauthorized access.
(b) The Investment Authoritymayinvest the cash of the designated funds in digital assets only after approval by the Board of Directors.
The approval shall be based on an independent assessment by a third-party consultant that all of the following requirements for proposed investments have been met:
(1) The digital assets are maintained with a secure custody solution.
(2) The risk and reward profile, including under adverse scenarios, is appropriate for the designated fund's circumstances from a total portfolio perspective.
(3) The control environment meets institutional investment industryrequirements for independent risk and compliance oversight, operational robustness, and regulatory compliance.
(c) An investment in digital assets from any of the designated funds shall not exceed, in the aggregate, five percent (5%) of the balance of the designated fund for an initial period of time that is set bythe Board of Directors.
The Board of Directors shall annually review the percentage limit on digital assets investments and may raise or lower the limit after the initial period.
Funds of each of the Retirement Systems and other funds held by the State Treasurer Investment Authority may be Page 18 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 invested collectively or separately in the State Treasurer's Investment Authority's discretion consistent with the fiduciary duties stated in G.S.
House Bill 506-First Edition Page 19 General Assembly Of North Carolina Session 2025 (e) The State Treasurer Investment Authority has full powers as a fiduciary to hold, purchase, sell, assign, transfer, lend and dispose of any of the securities or investments in which any of the investment programs created pursuant to this section have been invested, and may reinvest the proceeds from the sale of those securities or investments and any other investable assets of the program.
House Bill 506-Second Edition Page 19 General Assembly Of North Carolina Session 2025 c.
Page 20 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 … "§ 147-69.4A.
The Page 20 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 Fund shall consist of the proceeds of any payments made by the United States in settlement of the 1943 agreement between Swain County and the United States Department of Interior, such other contributions as Swain County or other entities may choose to make to the Fund, and the interest and other investment income earned by the Fund.
House Bill 506-First Edition Page 21 General Assembly Of North Carolina Session 2025 (a) In addition to all other audits and reports required by the law, the State Treasurer Treasurer, with the active assistance of the Investment Authority, shall prepare and issue, at the end of each fiscal year beginning with the 2015-2016 fiscal year, year, a set of consolidated stand-alone financial statements regarding investments authorized in G.S.
The House Bill 506-Second Edition Page 21 General Assembly Of North Carolina Session 2025 report of the independent expert firm shall be provided to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Committee, the Senate Appropriations/Base Budget Committee, and the Fiscal Research Division within 30 days of receipt.
Page 22 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 (2) A specific listing of all investments made with certified green managers and companies and funds that support sustainable practices, including the names of the companies, managers, and funds, the amount invested, and the State's return on investment.
Page 22 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 e.
House Bill 506-First Edition Page 23 General Assembly Of North Carolina Session 2025 (1) The beginning and ending market value of each investment program and deposits or withdrawals.
House Bill 506-Second Edition Page 23 General Assembly Of North Carolina Session 2025 (2) Either a statement that the investment is managed internally bythe staff of the State Treasurer Investment Authority or the names of the external investment manager and the investment vehicle for that investment.
Page 24 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 (c) The Treasurer shall report to the Governor annually the exact balance in the treasury to the credit of the State, with a summary of the receipts and payments of the treasury during the preceding fiscal year, and so far as practicable an account of the same down to the termination of the current calendar year.
Page 24 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 (4) Impartially, taking into account any differing interests of participants and beneficiaries.
(2) Shall diversify Diversify the investments of the fund fund, unless the State Treasurer Investment Authority reasonably determines that, because of House Bill 506-First Edition Page 25 General Assembly Of North Carolina Session 2025 special circumstances, including applicable investment restrictions, it is clearly prudent not to do so.
House Bill 506-Second Edition Page 25 General Assembly Of North Carolina Session 2025 (d) The State Treasurer's Investment Authority's investment and management decisions must be evaluated not in isolation but in the context of the portfolio of the fund as a whole and as part of an overall investment strategy having risk and return objectives reasonably suited to the fund.
Page 26 House Bill 506-First Edition General Assembly Of North Carolina Session 2025 a.
In addition to the salary set by the General Assembly in Page 26 House Bill 506-Second Edition General Assembly Of North Carolina Session 2025 the Current Operations Appropriations Act, longevity pay shall be paid on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.
… House Bill 506-First Edition Page 27 General Assembly Of North Carolina Session 2025 (23) The Executive Administrator of the State Health Plan for Teachers and State Employees.
The secretary of the Board of Trustees shall furnish said Board a surety bond in a company authorized to do business House Bill 506-Second Edition Page 27 General Assembly Of North Carolina Session 2025 in North Carolina in such amount as shall be required by the Board, the premium to be paid from the expense fund." SECTION 4.2.(b) G.S.
Page 28 House Bill 506-Second506-First Edition
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Amendments
1 amendmentClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Signed by Gov. 6/13/2025
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Ch. SL 2025-6
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Pres. To Gov. 6/5/2025
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Ratified
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Concurred In S Com Sub
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Ordered Enrolled
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Withdrawn From Com
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Placed On Cal For 06/03/2025
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Ref To Com On Rules, Calendar, and Operations of the House
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Regular Message Sent To House
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Regular Message Received For Concurrence in S Com Sub
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Amend Adopted A1
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Passed 2nd Reading
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Passed 3rd Reading
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Engrossed
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Reptd Fav
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Reptd Fav Com Substitute
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Com Substitute Adopted
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Re-ref Com On Rules and Operations of the Senate
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Withdrawn From Com
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Re-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate
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Regular Message Sent To Senate
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Regular Message Received From House
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Passed 2nd Reading
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Passed 3rd Reading
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Reptd Fav
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Cal Pursuant Rule 36(b)
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Placed On Cal For 04/29/2025
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Reptd Fav Com Substitute
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Re-ref Com On Rules, Calendar, and Operations of the House
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Serial Referral To Finance Stricken
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Passed 1st Reading
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Ref to the Com on Pensions and Retirement, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
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Filed
Sponsors
- Ray Pickett · Cosponsor
- Jeffrey C. McNeely · Cosponsor
- Steve Tyson · Cosponsor
- Stephen M. Ross · Primary
- Kyle Hall · Primary
- Brenden H. Jones · Primary
- Jake Johnson · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →3 sponsors · 4 co-sponsors · 172 not signed on
Sponsors (3)
- Stephen M. Ross Republican
- Kyle Hall Republican
- Brenden H. Jones Republican
Co-sponsors (4)
- Ray Pickett Republican
- Jeffrey C. McNeely Republican
- Steve Tyson Republican
- Jake Johnson Republican
Not signed on (172)
172 members have not signed on to this bill.
Show all 172 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 15 | 0 | 0 | 5 |
| Republican | 25 | 0 | 0 | 5 |
| Total | 40 | 0 | 0 | 10 |
| % of votes cast | 80% | 0% | 0% | 20% |
How each member voted (50)
| Member | Party | Vote |
|---|---|---|
| Caleb Theodros | Democratic | Yea |
| Dan Blue | Democratic | Yea |
| DeAndrea Salvador | Democratic | Not Voting |
| Gale Adcock | Democratic | Yea |
| Gladys A. Robinson | Democratic | Yea |
| Graig Meyer | Democratic | Not Voting |
| Jay J. Chaudhuri | Democratic | Not Voting |
| Joyce Waddell | Democratic | Yea |
| Julie Mayfield | Democratic | Yea |
| Kandie D. Smith | Democratic | Not Voting |
| Lisa Grafstein | Democratic | Yea |
| Michael Garrett | Democratic | Not Voting |
| Mujtaba A. Mohammed | Democratic | Yea |
| Natalie S. Murdock | Democratic | Yea |
| Paul A. Lowe, Jr. | Democratic | Yea |
| Sophia Chitlik | Democratic | Yea |
| Sydney Batch | Democratic | Yea |
| Terence Everitt | Democratic | Yea |
| Val Applewhite | Democratic | Yea |
| Woodson Bradley | Democratic | Yea |
| Amy S. Galey | Republican | Yea |
| Benton G. Sawrey | Republican | Yea |
| Bill Rabon | Republican | Not Voting |
| Bob Brinson | Republican | Yea |
| Bobby Hanig | Republican | Yea |
| Brad Overcash | Republican | Yea |
| Brent Jackson | Republican | Yea |
| Carl Ford | Republican | Yea |
| Chris Measmer | Republican | Yea |
| Dana Jones | Republican | Not Voting |
| Danny Earl Britt, Jr. | Republican | Not Voting |
| David W. Craven, Jr. | Republican | Yea |
| Eddie D. Settle | Republican | Yea |
| Jim Burgin | Republican | Yea |
| Kevin Corbin | Republican | Yea |
| Lisa S. Barnes | Republican | Not Voting |
| Mark Hollo | Republican | Yea |
| Michael A. Lazzara | Republican | Yea |
| Michael V. Lee | Republican | Yea |
| Norman W. Sanderson | Republican | Yea |
| Paul Newton | Republican | Yea |
| Phil Berger | Republican | Yea |
| Ralph Hise | Republican | Yea |
| Steve Jarvis | Republican | Yea |
| Timothy D. Moffitt | Republican | Not Voting |
| Todd Johnson | Republican | Yea |
| Tom McInnis | Republican | Yea |
| Vickie Sawyer | Republican | Yea |
| W. Ted Alexander | Republican | Yea |
| Warren Daniel | Republican | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 33 | 0 | 0 | 1 |
| Republican | 57 | 0 | 0 | 0 |
| Unaffiliated | 26 | 0 | 0 | 1 |
| U | 2 | 0 | 0 | 0 |
| Total | 118 | 0 | 0 | 2 |
| % of votes cast | 98% | 0% | 0% | 2% |
How each member voted (120)
| Member | Party | Vote |
|---|---|---|
| Autry | — | Yea |
| Clemmons | — | Yea |
| Gill | — | Yea |
| Harris | — | Yea |
| Rudow | — | Yea |
| CharlesSmith | — | Yea |
| Staton-Williams | — | Yea |
| vonHaefen | — | Yea |
| Wray | — | Yea |
| Bradford | — | Yea |
| Cleveland | — | Yea |
| Crutchfield | — | Yea |
| Elmore | — | Yea |
| Faircloth | — | Yea |
| Fontenot | — | Yea |
| Hardister | — | Yea |
| Lowery | — | Yea |
| Mills | — | Yea |
| Moore | — | Yea |
| Reeder | — | Yea |
| Saine | — | Yea |
| Sasser | — | Yea |
| CarsonSmith | — | Yea |
| Sossamon | — | Yea |
| Lucas | — | Not Voting |
| F. Jackson | — | Yea |
| K. Baker | — | Yea |
| Abe Jones | Democratic | Yea |
| Allen Buansi | Democratic | Yea |
| Allison A. Dahle | Democratic | Yea |
| Amber M. Baker | Democratic | Yea |
| Amos L. Quick, III | Democratic | Yea |
| B. Ray Jeffers | Democratic | Yea |
| Becky Carney | Democratic | Yea |
| Brandon Lofton | Democratic | Yea |
| Carolyn G. Logan | Democratic | Yea |
| Cecil Brockman | Democratic | Yea |
| Cynthia Ball | Democratic | Yea |
| Deb Butler | Democratic | Yea |
| Eric Ager | Democratic | Yea |
| Garland E. Pierce | Democratic | Yea |
| Gloristine Brown | Democratic | Yea |
| James Roberson | Democratic | Yea |
| Joe John | Democratic | Yea |
| Kanika Brown | Democratic | Yea |
| Laura Budd | Democratic | Yea |
| Lindsey Prather | Democratic | Yea |
| Marcia Morey | Democratic | Yea |
| Maria Cervania | Democratic | Yea |
| Mary Belk | Democratic | Yea |
| Pricey Harrison | Democratic | Yea |
| Renée A. Price | Democratic | Yea |
| Robert T. Reives, II | Democratic | Yea |
| Sarah Crawford | Democratic | Yea |
| Shelly Willingham | Democratic | Yea |
| Terence Everitt | Democratic | Yea |
| Terry M. Brown Jr. | Democratic | Yea |
| Tim Longest | Democratic | Yea |
| Vernetta Alston | Democratic | Yea |
| Ya Liu | Democratic | Yea |
| Zack Hawkins | Democratic | Not Voting |
| A. Reece Pyrtle, Jr. | Republican | Yea |
| Allen Chesser | Republican | Yea |
| Ben T. Moss, Jr. | Republican | Yea |
| Bill Ward | Republican | Yea |
| Brenden H. Jones | Republican | Yea |
| Brian Biggs | Republican | Yea |
| Celeste C. Cairns | Republican | Yea |
| Charles W. Miller | Republican | Yea |
| Chris Humphrey | Republican | Yea |
| David Willis | Republican | Yea |
| Dean Arp | Republican | Yea |
| Dennis Riddell | Republican | Yea |
| Destin Hall | Republican | Yea |
| Diane Wheatley | Republican | Yea |
| Donna McDowell White | Republican | Yea |
| Donnie Loftis | Republican | Yea |
| Donny Lambeth | Republican | Yea |
| Dudley Greene | Republican | Yea |
| Edward C. Goodwin | Republican | Yea |
| Erin Paré | Republican | Yea |
| Frank Iler | Republican | Yea |
| Harry Warren | Republican | Yea |
| Howard Penny, Jr. | Republican | Yea |
| Hugh Blackwell | Republican | Yea |
| Jake Johnson | Republican | Yea |
| Jay Adams | Republican | Yea |
| Jeff Zenger | Republican | Yea |
| Jeffrey C. McNeely | Republican | Yea |
| Jennifer Balkcom | Republican | Yea |
| Jimmy Dixon | Republican | Yea |
| John A. Torbett | Republican | Yea |
| John R. Bell, IV | Republican | Yea |
| John Sauls | Republican | Yea |
| Joseph Pike | Republican | Yea |
| Julia C. Howard | Republican | Yea |
| Karl E. Gillespie | Republican | Yea |
| Keith Kidwell | Republican | Yea |
| Kelly E. Hastings | Republican | Yea |
| Kyle Hall | Republican | Yea |
| Larry C. Strickland | Republican | Yea |
| Larry W. Potts | Republican | Yea |
| Mark Brody | Republican | Yea |
| Mark Pless | Republican | Yea |
| Matthew Winslow | Republican | Yea |
| Mike Clampitt | Republican | Yea |
| Mitchell S. Setzer | Republican | Yea |
| Neal Jackson | Republican | Yea |
| Phil Shepard | Republican | Yea |
| Ray Pickett | Republican | Yea |
| Sam Watford | Republican | Yea |
| Sarah Stevens | Republican | Yea |
| Stephen M. Ross | Republican | Yea |
| Steve Tyson | Republican | Yea |
| Ted Davis, Jr. | Republican | Yea |
| Tricia Ann Cotham | Republican | Yea |
| W. Ted Alexander | Republican | Yea |
| William D. Brisson | Republican | Yea |
| Carla D. Cunningham | U | Yea |
| Nasif Majeed | U | Yea |
Subjects
Frequently asked questions
- Who sponsors HB 506?
- HB 506 is sponsored by Ray Pickett (Republican), Jeffrey C. McNeely (Republican), Steve Tyson (Republican), Stephen M. Ross (Republican), Kyle Hall (Republican), Brenden H. Jones (Republican), and Jake Johnson (Republican).
- What is the current status of HB 506?
- This bill has been enacted into law. Introduced March 24, 2025. Enacted.
- Where can I track HB 506?
- Track HB 506 free on One Click Politics — get push/email alerts when it moves.
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