North Carolina Rep. Jones 2025 state investment modernization act passes House and Senate

Passed bill sponsored by State Rep. Jones aims to reorganize investment management by establishing the North Carolina Investment Authority to oversee state fund investments with a focus on fiduciary duty, according to the North Carolina State House.

In the House, 41 Democrats and 69 Republicans voted in favor of the bill, while three Democrats opposed it.

Meanwhile, in the Senate, 15 Democrats and 25 Republicans voted in favor of the bill.

Jones filed the bill in the North Carolina House on March 24 during the 2025 regular session.

The legislation, known as HB 506, was passed on May 22 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text was formally listed with the short title: “2025 State Investment Modernization Act.-AB”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, known as the 2025 State Investment Modernization Act, aims to reorganize and update investment management within North Carolina by creating the North Carolina Investment Authority (NCIA). The NCIA will operate independently of the Department of State Treasurer and have powers such as acquiring real and personal property, suing, entering into contracts, and making investments specifically authorized under state law. The bill outlines the structure and responsibilities of the NCIA Board of Directors, which will oversee investment strategies, policies, and performance of funds like Retirement Systems, General Fund, and Escheats Fund, among others. The bill also mandates a focus on fiduciary duty and financial prudence in integrating environmental or social considerations only as they present material financial impacts. Effective July 1, 2025, certain sections, including those related to employee management and reporting requirements, will take effect, with the NCIA set to manage investments beginning Jan. 1, 2026.

A related bill, SB 709, was also filed in the North Carolina Senate, introduced by Sen. Ralph Hise (and two others) on March 25, 2025.

The bill was sponsored by Rep. Kyle Hall (Republican-91st District), Rep. Brenden H. Jones (Republican-46th District), and Rep. Steve Tyson (Republican-3rd District), along with one other sponsor.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Jones, a Republican, was elected to the North Carolina State House in 2017 to represent the state’s 46th House district, replacing previous state representative Ken Waddell.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.