The Governor vetoed the act on July 5, 2023. The Governor's objections and veto message are available here: https://webservices.ncleg.gov/ViewBillDocument/2023/6810/0/H574-BD-NBC-11124.

House committee substitute to the 1st edition makes the following changes.

Amends proposed GS 115C-12(23) as follows. Deletes the requirement that sports designated for women not have members of the male sex, so that the provision only requires that athletic teams designated for women not have members of the male sex. Deletes the requirement that sports designated for men not have members of the female sex, so that the provision only requires that athletic teams designated for men not have members of the female sex, unless (1) there is no comparable female team for a particular sport and (2) the sport is not wrestling (previously required that the sport not be a contact sport). Makes technical and clarifying changes.

Amends the retaliation provisions to delete athletic association and instead refer to administering organization (i.e., a nonprofit organization that has entered into and is in compliance with a memorandum of understanding with the State Board of Education to administer and enforce the adopted rules and requirements of Article 29e of GS Chapter 115C) for interscholastic athletic activities at the high school level. Changes causes of action for which there are specified statutory remedies from a cause of action pursuant to sub-subdivisions e. through h. to a cause of action pursuant to sub-subdivisions f. through h.

Enacts GS 115C-548.1 (private church or religious schools) to require these schools that are members of an organization that administers interscholastic athletic activities pursuant to Article 29E, and any other of these schools that organize athletic teams at the middle and high school level that plays a team from any school required to comply with GS 115C-12(23), to comply with GS 115C-12(23), as amended.

Makes changes to proposed amendments to provisions related to nonpublic schools to change the statute to GS 115C-556.1 (was, GS 115C-567) and to clarify that it applies to qualified nonpublic schools (was, just nonpublic schools). Makes technical and organizational changes.

Organizes the previous provisions, as amended, into Part I. and adds the following new content, organized as Part II.

Enacts Article 38 to GS Chapter 116, establishing the following requirements for all intramural athletic teams and teams that are part of an intercollegiate athletic program, as those terms are defined, at UNC constituent institutions, community colleges, or any private college or university in the State. Requires teams to be expressly designated by the biological sex of the team participants as either males/men/boys; female/women/girls; or coed/mixed. Requires athletic teams designated for women not have members of the male sex, and requires athletic teams designated for men to not have members of the female sex unless (1) there is no comparable female team for a particular sport and (2) the sport is not boxing or wrestling. Specifies that sex is recognized based solely on a person's reproductive biology and genetics at birth for purposes of these requirements. Establishes a private cause of action for the following, subject to a two-year statute of limitations: (1) a student who is deprived of an athletic opportunity or suffers or is likely to suffer from any direct or indirect harm as a result of a violation of the above requirements; (2) a student who is subjected to retaliation or other adverse action by an institution of higher education, athletic association, or other organization as a result of reporting a violation of the above requirements to an employee or representative at the institution of higher education; athletic association; or any local, State, or federal agency with oversight of the institution of higher education; and (3) any institution of higher education or its representatives or employees who suffer any direct or indirect harm for complying with the above requirements. Provides for remedies including injunctive relief, protective order, writ of mandamus or prohibition, or declaratory relief, as well as actual damages, including for psychological, emotional, or physical harm; reasonable attorneys' fees; and costs. Requires the UNC Board of Governors to monitor constituent institutions for compliance, and requires reporting schools in violation to the Joint Legislative Oversight Committee. 

Organizes the act's effective date into new Part III. Includes a severability clause.