Contains whereas clauses.
Section 1.
Directs the Administrative Office of the Courts (AOC), in coordination with the Department of Health and Human Services (DHHS), Division of Mental Health, Developmental Disabilities, and Substance Use Services (Division), to develop and disseminate enhanced guidance materials, and develop optional continuing educational modules, for judges, magistrates, clerks, and other court personnel regarding the identification of behavioral health risk indicators among court-involved individuals by January 1, 2027. Specifies that the guidance materials must cover five matters: risk patterns associated with untreated serious mental illness, substance use disorders, or co-occurring conditions; indicators associated with impaired reality testing, loss of impulse control, or acute psychiatric decompression; appropriate referral pathways for rehabilitative disposition, crisis response, or involuntary commitment where authorized by law; best practices for balancing public safety, civil liberties, and clinical appropriateness; and evidence-informed indicators of escalating behavioral health crises. Clarifies that the guidance materials should not be construed to alter the evidentiary standards required for involuntary commitment, detention, or criminal adjudication.
Instructs AOC and the Division to jointly develop a statewide framework to strengthen rehabilitative disposition pathways between district courts, superior courts, and community-based behavioral health providers as described, by January 1, 2027.
Makes the following modifications to the term dangerous to self or others in GS 122C-3 (definitions under the Mental Health, Developmental Disabilities, and Substance Abuse Act of 1985). In the dangerous to others prong, authorizes a court to consider evidence of a pattern of behavior established by competent evidence demonstrating recurring loss of volitional control, as specified, when such behavior, viewed in context, reasonably indicates escalating instability that materially increases the risk of serious bodily harm to another. Clarifies that nothing in the prong lowers the burden of proof required under GS Chapter 122C, to authorize a finding of dangerousness based solely on verbal statements absent corroborating evidence, or to diminish any procedural protections otherwise required by law. Effective December 1, 2026, and applies to determinations of dangerousness made on or after that date.
Appropriates $5 million from the General Fund to AOC for 2026-27 and $1 million in recurring funds beginning in 2026-27 to implement the above including development and dissemination of guidance and training materials, IT upgrades, establishment of regional coordination between courts and behavioral health providers, and administrative costs.
Instructs AOC to submit an annual report in coordination with the Division to the specified NCGA committees and division on the status of the appropriations above, as described, starting on December 1, 2027, and annually thereafter. Further requires AOC and the Division to submit a report on the status of the framework discussed above, including the matters described, to the specified NCGA committees.
Except July 1, 2026, except as otherwise provided.
Section 2.
Starting in 2026-27, appropriates $224 million in recurring funds from the General Fund to the Division to create, expand, or otherwise support, in coordination with AOC, behavioral health treatment capacity and related court-support initiatives intended to (1) increase timely access to appropriate behavioral health evaluation, stabilization, and treatment services, (2) reduce delays in case processing associated with unmet behavioral health needs, and (3) improve public safety outcomes, including the four described.
Section 3.
Starting in 2026-27, appropriates $320.4 million in recurring funds from the General Fund to the Division to be used for hiring or contracting staff to facilitate the operation of State psychiatric hospitals.
Appropriates $118 million from the General Fund to the Office of State Budget and Management (OBSM) for 2026-27 to be allocated to the Division to build increased capacity in the State psychiatric hospitals. Prevents OBSM from transferring the funds to the Division until it certifies that bed capacity in the State psychiatric hospitals has been filled or is expected to be filled within 90 days. Directs that the funds appropriated do not revert, but remain available until expended.
Starting in 2026-27, appropriates $35.6 million in recurring funds from the General Fund to the Division to be used for hiring or contracting staff to facilitate the operation of increased capacity of State psychiatric hospitals built as a result of the funds, appropriated above. Directs that if at the end of each fiscal year, if OSBM has not transferred the funds as directed above, the funds revert.
Authorizes the funds appropriated to the Division to be used for initiatives that improve workforce stability and retention, including the matters described, so long as those funds are not used for bonuses except as part of a retention plan approved by DHHS.
Section 4.
Increases the limit on the number of county prisoners incarcerated in the State prison system under GS 162-39 under safekeeping orders or for medical or mental health treatment from 200 to 500. Appropriates $90 million from the General Fund to the Department of Adult Correction (DAC) for 2026-27 to be used or any nonrecurring costs incurred from implementing the increase of county prisoners incarcerated in the State prison. Starting in 2026-27, appropriates $16 million in recurring funds from the General Fund to DAC to be used for any operational costs or other recurring costs incurred from implementing the increase of county prisoners incarcerated in the State prison.
Section 5.
Requires the Division, in coordination with AOC, to provide an initial report to the specified NCGA committees and division on the status of the appropriations under Section 2 and 3 of the act, including the matters described by no later than July 1, 2027. Requires an updated report to be submitted by no later than December 1, 2027, and annually thereafter.

Statutes affected:
Filed: 122C-3, 162-39