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Read. Follow. Verify.North Carolina restricts critical infrastructure contracts with adversarial foreign companies and mandates worker criminal checks
Last action · June 24, 2025: Re-ref Com On Rules, Calendar, and Operations of the House (House action)Sponsors: Donnie Loftis and 7 others
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What This Bill Would Do
North Carolina bans state and local government entities from entering into contracts or agreements that grant direct or remote access to companies owned or controlled by citizens or governments of China, Iran, North Korea, Russia, or designated threat countries. The act voids contrary agreements and mandates criminal history record checks for individuals granted access to sensitive systems including communication networks, cybersecurity, the electric grid, hazardous waste facilities, and water treatment plants.
State and local government contractors, utilities, educational institutions, and judicial agencies must alter vendor agreements and institute mandatory fingerprint-based background checks for personnel accessing .
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Governmental entities
State agencies, local governments, and public bodies are prohibited from contracting with specified foreign-owned companies for critical infrastructure access.
Water treatment facility operators
Initial certification applicants must submit to fingerprint-based criminal history record checks and pay associated fees.
Public utilities
Must comply with commission rules requiring criminal history record checks for individuals granted access to the electric grid or communication systems.
The University of North Carolina
The Board of Governors must adopt policies requiring criminal history checks for individuals accessing campus communication or cybersecurity systems.
Key Facts
- Governmental entities are prohibited from entering into agreements granting direct or remote critical infrastructure access to companies owned or controlled by citizens or governments of China, Iran, North Korea, Russia, or designated threat countries, or companies headquartered in those nations.
- Contracts violating foreign ownership restrictions are declared against public policy and void ab initio.
- The Council of State is authorized to designate additional countries as threats to critical infrastructure.
- The Judicial Department must require criminal history record checks for individuals granted access to communication or cybersecurity systems under its authority, effective October 1, 2025.
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- Public utilities commission rules must require criminal history checks for individuals granted access to the electric power grid or communication infrastructure systems, with rules taking effect no later than October 1, 2026.
- Applicants for initial water treatment facility operator certification must consent to a criminal history record check and pay associated fees, effective October 1, 2025.
- The certificate issuance or renewal fee for water treatment operators is capped at $50.00, with an additional late penalty not exceeding $30.00.
- The Board of Governors of The University of North Carolina must adopt a policy requiring criminal history checks for individuals granted access to its communication or cybersecurity systems by October 1, 2026.
- Hazardous waste facility permit applicants must require criminal history record checks for individuals granted access to hazardous waste treatment systems under their control, effective October 1, 2025.
- The State Chief Information Officer must require background investigations and criminal history record checks for contractors granted access to communication or cybersecurity systems under their authority.
Frequently Asked Questions
Which foreign countries are explicitly named in the foreign-ownership contract ban?
Who pays for the criminal history record checks required for water treatment facility operators?
What systems are classified as critical infrastructure under the act?
Are product warranty and support services exempt from the foreign company contract ban?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
7 actions- Jun 24, 2025HouseRe-ref Com On Rules, Calendar, and Operations of the House
- Jun 24, 2025HouseReptd Fav
- Jun 10, 2025HouseRe-ref Com On Finance
- Jun 10, 2025HouseReptd Fav
- Apr 8, 2025HouseRef to the Com on State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
- Apr 8, 2025HousePassed 1st Reading
Show 1 earlier action
- Apr 7, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Comprehensive Cross-Sector Security Mandates
The bill coordinates a multi-agency security upgrade by simultaneously imposing criminal history check requirements across the Judicial Department, Utilities Commission, Water Treatment Board, University system, hazardous waste permitting, and IT management.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy65Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz40Current news / social attention level
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