Stein vetoes homelessness bill, signs other laws including new ban on China buying NC land

North Carolina Gov. Josh Stein on Wednesday vetoed a bill that would’ve allowed North Carolina municipalities to regulate homeless camps by moving them to designated spaces — saying the bill is “poorly constructed” and would make it harder for homeless people to get back on their feet. 

He also signed a dozen other bills into law tackling issues ranging from cryptocurrency scams to Chinese land ownership in North Carolina and efficiency at the Department of Motor Vehicles.

Stein vetoed House Bill 437, which would ban what it calls “unauthorized sleeping” in public spaces. Instead, local governments could direct homeless people to a designated space — so long as it’s not located near residential areas, commercial properties or schools. Local governments would be required to provide security, toilets and water. 

“We all want people experiencing homelessness to get back on their feet and live in safe, affordable housing,” Stein said in a statement. “Yet, this poorly constructed bill makes that goal harder and creates another significant unfunded mandate for local governments.”

A spokesperson for House Speaker Destin Hall said that chamber plans to override Stein’s veto and provided a statement from Rep. Brian Biggs, R-Randolph, one of the bill’s co-sponsors.

“If Gov. Stein was serious about helping homeless people, he would have signed this legislation into law,” Biggs wrote. “His veto puts North Carolina at risk of missing out on critical federal funding that would help move people out of unsafe encampments and into stable housing and supportive services.”

The bill would ramp up criminal charges for dealing drugs near homeless aid centers. It would also charge the people who work at those centers with a crime, if anyone is caught selling or possessing large amounts of drugs in or near the church, shelter or other locale they operate out of.

Supporters said that was meant to incentivize homeless aid organizations to shoo away drug dealers targeting the people they serve. Critics said it’ll likely just force those charities to shut down entirely and quit helping people altogether, less they face felony charges for a crime someone else commits.

Stein agreed with the critics.

“The bill also fundamentally misunderstands how people suffering from addiction get healthy,” he said. “If government threatens criminal liability against those who seek treatment and against the people, organizations, and churches trying to help them, government stands in the way of services that promote health and safety, and people’s problems are actually made worse.”

Stein encouraged the legislature to try again at passing different measures to combat homelessness.

“I have long called for funding to crack down on drug trafficking, invest in behavioral health, and expand affordable housing options – because homelessness and substance misuse are real problems that deserve real solutions, not this bill,” he said.

In addition to vetoing the homelessness bill, Stein also signed 12 other bills into law.

They run the gamut, taking aim at issues including cracking down on cryptocurrency scams, improving DMV efficiency, making it easier for people to run small businesses out of their homes without running afoul of local zoning rules, and to enact some personnel changes sought by law enforcement officers and prison workers.

• House Bill 133 bans people or companies affiliated with hostile foreign governments from buying any land in the state within 50 miles of a military installation, and from buying any farmland anywhere in the state. According to current U.S. foreign policy the ban would apply to people or companies affiliated with multiple governments including China, Russia, Iran and Cuba. WRAL reported in 2023, when the issue was first proposed in the legislature, that lawmakers were mainly aiming their ire toward China but also weren’t aware of any Chinese-owned companies buying up any land within North Carolina that the bill would stop. The 2026 version of the bill Stein signed into law is similar but not identical to the 2023 proposal. Stein offered no statement on the bill, which passed the legislature with near-unanimous support.
• House Bill 1094 includes a number of provisions requested by the state Department of Transportation. It’ll allow people to renew their driver’s licenses early prior to expiration, make it easier to get copies of crash reports, repeal a law requiring people to replace their license plates every seven years, and make other changes Stein said the bill “makes the DMV more efficient and gives drivers a smoother experience.”
• House Bill 372 bans local governments from telling people they can’t operate certain businesses out of their homes, focusing on work that doesn’t bring many clients to someone’s home or require storing supplies outside. “This bill protects entrepreneurs working out of their homes, like real estate agents and CPAs, from unfair fines or overregulation,” Stein said.
• House Bill 747 allows elk hunting permits to be issued in North Carolina in 2027 and makes other changes to wildlife rules, such as creating a new “conservationist” license plate available for sale to drivers in the state.
• House Bill 920 creates new protections against cryptocurrency scams, which often revolve around crypto ATMs or kiosks that can be found at some stores. Rep. Neal Jackson, R-Moore, said the scams frequently target older people who need the additional layers of protection included in this law. Some critics said the bill wasn’t strict enough on the crypto ATM industry to ensure it’s stopping fraud, but crypto industry lobbyists successfully opposed making the bill stricter. In the end it passed the legislature unanimously. Stein said North Carolinians lost $12 million in crypto scams last year alone. “This bill protects people from fraud when they use virtual currency kiosks, requiring the machines to be licensed and regulated under state law, placing limits on daily transactions, and providing scam alert signs, live customer service, receipts for transactions, and the ability to cancel a transaction that’s still in progress,” he said.
• Senate Bill 648 makes it harder for people injured in skiing or snowboarding accidents to sue the business that operated the slopes. It also makes it a crime for people to share their ski passes, or to use one that’s not theirs, and it allows ski companies to also sue people who do that.
• Senate Bill 474 tweaks already-approved changes aimed at stopping local property tax bills from rising. Stein said it contained some good provisions, but that lawmakers should’ve also exempted Buncombe County — which some Republicans said they supported, but GOP leadership did not — so as to not handcuff the county during Hurricane Helene rebuilding. 
• House Bill 206 is a grab-bag bill that increases what the state pays to victims of crimes or their families, allows the state to donate emergency response supplies to local governments, increases flexibility for tribal law enforcement to respond to natural disasters. Stein said he supports most of it, except a provision that also allows the legislature to shoot down the governor’s choice to lead the North Carolina National Guard in the future. “The bill requires more appointments to be confirmed by the General Assembly when it has not demonstrated its ability to confirm appointments made many months ago,” he said. “These delays mean a slower and less efficient state government.”
• Senate Bill 355 contains various requests from the state prison system. “It also facilitates reentry, increasing people’s chances of success when they return to their communities by giving the Department of Adult Corrections the option to offer courses required for drivers license restoration,” Stein said.
• House Bill 1126 contains changes requested by the Office of State Treasurer.
• Senate Bill 857 makes licensing and regulatory changes for funeral businesses.
• House Bill 517 makes regulatory changes for charities.