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Bill

HB 808

NC Infrastructure Protection Act.

2025-2026 Session Introduced by Neal Jackson and 6 co-sponsors

Prohibits state contracts giving critical infrastructure access to foreign-owned or HQed firms from designated countries and requires criminal-history checks for those with access.

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Bill Summary · HB 808

HB 808 — NC Infrastructure Protection Act (Summary)

Status: Reported Favorably (Reptd Fav)
Introduced: (documented) Nov 12, 2024 — legislative activity in early–mid 2025
Primary sponsors: Representatives Loftis, McNeely, Johnson

Purpose

The bill is designed to protect North Carolina’s critical infrastructure from adversarial foreign influence and to strengthen personnel vetting for individuals who are granted access to critical infrastructure systems. It aims to prevent certain foreign-controlled companies from obtaining direct or remote access to systems that are essential to public health, safety, and security, and to require criminal-history checks for people given operational access.

Key definitions

  • Company — any profit-making entity (including subsidiaries, affiliates).
  • Critical infrastructure — specifically includes: communication infrastructure systems, cybersecurity systems, the electric grid, hazardous waste treatment systems, and water treatment facilities.
  • Designated country — any country the Council of State identifies as a threat to critical infrastructure.
  • Governmental entity — any State agency, institution, board, commission, or political subdivision (includes counties, municipalities, local public bodies).

Major provisions

  1. Prohibition on contracts that grant access:

    • A governmental entity may not enter into a contract or agreement that would give a company direct or remote access to or control of critical infrastructure if:
      • the company’s majority ownership is held or controlled by citizens of China, Iran, North Korea, Russia, or a Council‑designated country; or
      • the company is headquartered in China, Iran, North Korea, Russia, or a Council‑designated country.
    • Excludes limited access strictly for product warranty/support purposes.
    • The prohibition applies irrespective of public trading status.
    • Contracts by private business entities that meet these criteria (as if they were government contracts) are declared against public policy and void ab initio.

  2. Criminal-history checks:

    • Judicial Department: must require criminal-history checks for individuals granted access to communication infrastructure systems or cybersecurity systems under its authority (amendment to G.S. 7A‑349). Effective Oct 1, 2025.
    • Utilities/Regulatory authority: North Carolina Utilities Commission must adopt rules requiring criminal-history checks for individuals with access to the electric power grid or communication infrastructure under its regulatory authority. Rules to be adopted as soon as practicable, no later than Oct 1, 2026.
    • Water operators: applicants for initial certification as water treatment facility operators must consent to criminal-history checks; refusal may be grounds for denial. The bill provides for fingerprinting and SBI checks.

  3. Council of State authority: the Council may designate additional countries as threats for purposes of the statute.

Who is affected

  • State and local governmental procurement authorities and agencies.
  • Vendors, contractors, and suppliers for communications, cybersecurity, electric utilities, water/waste treatment, and related sectors — especially those with foreign ownership or headquarters.
  • Individuals seeking employment, certification, or contract access roles that involve critical infrastructure (subject to background checks).
  • Private entities whose contracts would fall within the statutory prohibitions may see contracts declared void.

Implementation & timeline

  • The restrictions on government contracting take effect when the bill becomes law and apply to contracts entered into, modified, or renewed on or after that date.
  • Judicial Department criminal‑history check requirement: effective Oct 1, 2025.
  • Utilities Commission rulemaking deadline: no later than Oct 1, 2026.
  • Council of State may act to add designated countries after enactment.

Potential impacts and considerations

  • National‑security aim: reduces risk of foreign adversaries gaining operational control of essential systems.
  • Procurement and compliance burden: state and local agencies will need procedures to identify ownership/headquarters and to screen vendors; vendors may be required to disclose ownership information.
  • Legal risk: some contracts could be voided if found to violate the statute.
  • Operational impacts: background-check requirements could increase hiring/certification time and administrative costs; may limit candidate pools for certain positions.
  • Enforcement and interpretation: agencies will need guidance on assessing control/ownership, handling subsidiaries/affiliates, and coordinating with the Council of State for country designations.

This summary highlights the bill’s intent, principal definitions, core prohibitions and vetting requirements, who will be affected, and key timing points.

Compiled from official sources — confirm details with the bill’s official record.

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