- Update: Gov. Josh Stein announced on Tuesday, Sept. 30 that he will allow HB 926 to become law without his signature.
The North Carolina House approved the Regulatory Reform Act of 2025 by a vote of 72-37. Among other policy, the bill includes provisions that curb local limits on displaying official government flags on private property, require occupational licensing boards to verify Social Security numbers, and create zoning exemptions for state-managed construction projects in three counties. The bill passed the NC Senate on Monday.
Section 12 of House Bill 926 would bar cities and counties from prohibiting or restricting a property owner from flying official governmental flags on private property. Local governments could regulate only when necessary for public health and safety — but to enforce against a specific property, they would have to produce written findings of fact documenting the concern. If a city claims a traffic hazard, the bill requires a site study by the NC Department of Transportation showing traffic problems would in fact arise before limiting a flag display.
In the Senate floor debate, Democratic Sen. Kandie Smith, D-Pitt, objected to the section of the bill that abates pending citations or suits that conflict with the new rules.
“We’re prohibiting local government regulation to regulate those flags on private property, so I just want to be clear; this is not about patriotism. It’s about power and who gets to decide the rules in our communities,” said Smith on the floor Monday. “What this bill does it takes authority away from municipalities.”
The change follows high-profile local disputes, including Greenville’s lawsuit against Camping World over a 3,200-square-foot American flag and a 130-foot pole alleged to exceed city code. In March, the Greenville City Council voted 4–2 to deny an ordinance change that would have allowed the large flag to remain. The city later authorized litigation.
Another measure within the Regulatory Reform Act requires every occupational licensing board not only to collect but to verify the authenticity of an applicant’s Social Security number, and it authorizes sharing the number with the Social Security Administration.
“Section 27 would require occupational licensing boards to verify the authenticity of an applicant’s provided Social Security number and would authorize the boards to share the number with the Social Security Administration for that purpose,” explained Rep. Dennis Riddell, R-Alamance. “We have heard concerns about boards receiving but not necessarily verifying Social Security number information. This is simply clarifying existing law.”
zoning exemptions
The measure also broadens exemptions from local zoning for state projects in Buncombe, Orange, Watauga, and Wake counties. If a project is managed by the State Construction Office, authorized or managed by UNC or a UNC campus, or managed by the Legislative Services Commission, local zoning and development rules generally would not apply. However, the state must consult the locality on water and sewer service, stormwater, traffic and parking, buffering and landscaping.
“I think is going down a very dangerous path and stripping the power from these counties,” said Rep. Turner, D-Buncombe. “It undermines confidence in the market, and it will also damage the relationship between universities and the communities that support and embrace them.”
What else is in HB 926?
In addition to these provisions, the bill reduces the frequency of onsite visits for certain public water treatment facilities that are monitored remotely, something that some Democrats in both chambers opposed. It reigns in what critics call overreach by local governments, restricting certain local development standards, such as minimum house sizes, parking-space dimensions larger than 9 feet by 20 feet, and pavement requirements stricter than those set by NCDOT.
It also allows code officials to reduce fire-flow requirements for isolated model homes while full service is pending. The measure also establishes a limited surveyor right-of-entry, with no authority to damage property and a fee-shifting mechanism for related disputes. Finally, the bill expands culinary ABC rules to permit cooking with spirits and fortified wine, including transport for catering.
“If this bill gets signed by the governor, rum cakes baked in shops will now be legal. And I promise, I’ll bring some rum cakes the next time we’re gathered,” said Rep. Pricey Harrison, D-Guilford.