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HB 378

Various Education Law/Tax Account/Name, Image, and Likeness Changes.

2025-2026 Session Introduced by Eric Ager and 14 co-sponsors

HB 378 requires schools to evaluate long-term device costs and repairability, report break/fix rates annually, protect education/ABLE funds, and keep NIL contracts confidential.

Signed by Gov. 7/1/2025
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Bill Summary · HB 378

Summary — HB 378: Various Education Law / Tax Account / Name, Image, and Likeness (NIL) Changes

Status: Enacted (Session Law 2025-46). Signed by the Governor: 7/1/2025. Effective: various provisions apply beginning with the 2025–2026 academic year (see timeline notes below).

Purpose

HB 378 makes a package of statutory changes affecting K–12 and higher education operations, student financial protections, and student-athlete name/image/likeness (NIL) contracting and records. The act is intended to (1) improve school technology purchasing decisions and transparency about device reliability, (2) strengthen legal protections for funds held in education savings/investment accounts and ABLE accounts, and (3) authorize and provide confidentiality for NIL agency contracts for student-athletes.

Key Provisions

  1. Technology cost evaluation (new G.S. 115C‑102.10 and related amendments)

    • Directs the State Board of Education to adopt rules requiring all public school units (including local school systems, charter schools, community colleges, and constituent institutions) to evaluate:
      • Long‑term cost of ownership (including repair costs);
      • Flexibility for innovation during the product lifecycle; and
      • Anticipated resale/salvage value as a percent of purchase price.
    • Requires school governing bodies and relevant boards (local boards, trustees, charters, community colleges, UNC constituent institutions) to adopt policies consistent with those rules.

  2. Break/fix rate reporting (new G.S. 115C‑102.11)

    • Establishes a standardized “break/fix rate” metric (percentage of devices that malfunction or need repair before expected lifecycle end).
    • Requires each public school unit to submit an annual report to the State Board by August 15 with:
      • Break/fix rate for the prior year;
      • Total devices in operation;
      • Number of devices repaired or taken out of service; and
      • Funds spent to repair/replace devices.
    • The State Board must compile and report statewide results and recommendations to the Joint Legislative Education Oversight Committee by November 15 annually.
    • First local reports due August 15, 2026 (covering 2025–26); first State report due November 15, 2026.

  3. Protections for education savings and ABLE accounts

    • Enhances statutory protections shielding funds held in certain education savings and investment accounts and ABLE accounts from creditors and judgments (text summarized in bill; intended to better protect beneficiaries’ funds).

  4. Name, Image, and Likeness (NIL) authorizations and confidentiality

    • Authorizes the use of NIL agency contracts for student-athletes.
    • Exempts NIL contracts from public‑records requirements (creates confidentiality for those contracts), restricting public disclosure under state public‑records laws.

Who is affected

  • Public school units, charter schools, community colleges, and UNC constituent institutions — new procurement evaluation and annual reporting duties.
  • State Board of Education — rulemaking and annual statewide reporting responsibilities.
  • District/local boards and trustees — policy adoption and data collection duties.
  • Vendors and technology purchasers — procurement decisions may shift to emphasize lifecycle/repair costs and resale.
  • Students and families — potentially improved device reliability and longer device lifecycles.
  • Holders/beneficiaries of education savings/investment and ABLE accounts — increased legal protection of account funds.
  • Student-athletes and NIL representatives — authorization to use agencies and increased confidentiality of NIL contracts.
  • Creditors and claimants — reduced access to some education/ABLE funds in enforcement actions.

Fiscal and operational impacts

  • Administrative burden for local units to collect and report break/fix metrics; State Board staff time to compile statewide reports.
  • Potential longer‑term procurement savings if lifecycle costs and repairability are prioritized.
  • Legal/administrative impact from expanded account protections and public‑records exemptions (may reduce litigation over account assets; increase confidentiality compliance tasks).

Timeline / Effective Dates

  • Many education reporting and evaluation provisions apply beginning with the 2025–2026 academic year.
  • First local break/fix reports due Aug 15, 2026 (data from 2025–26); State Board report due Nov 15, 2026.
  • Enacted as Session Law 2025‑46; signed by the Governor on 7/1/2025.

If you want, I can:
- Pull and summarize the specific statutory language for the account‑protection and NIL confidentiality provisions; or
- Draft an implementation checklist for school districts and the State Board (timelines, data fields, and suggested workflows).

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

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