VOLUME 9 ISSUE 15 | THURSDAY, JUNE 6, 2024
NSJONLINE.COM
inside
Nowell’s Clothing, which dressed politicians, businesspeople and families for more than century in North Carolina, closed its doors earlier this year. The Nowells look back on the business’ history, impact and memories. See more on B3.
the
Trio of AI bills filed at NCGA
BRIEF this week
The legislation follows a high-profile indictment in New Hampshire and a deepfake video in an N.C. congressional race
N.C. Zoo welcomes 30 millionth guest Asheboro The North Carolina Zoo celebrated a historic milestone last week, welcoming its 30 millionth all-time guest since the park opened in 1974. Maria Ines Perez stepped through the North America gates with her family and was greeted with enthusiastic cheers and warm welcomes from zoo staff for being the milestone guest as the park approaches its 50th anniversary. Perez and her family received a special gift basket containing a gift shop voucher and lifetime family membership courtesy of the North Carolina Zoo Society, a private animal encounter and complimentary Zoofari experience, meal vouchers and assorted memorabilia.
Hunter Biden’s federal firearms case opens Wilmington, Del. Lawyers made their opening statements Tuesday in the federal gun case against President Joe Biden’s son Hunter. Hunter Biden has been charged with three felonies stemming from a 2018 firearm purchase when he was, according to his memoir, in the throes of a crack addiction. He has been accused of lying to a federally licensed gun dealer, making a false claim on the application by saying he was not a drug user and illegally having the gun for 11 days. Hunter Biden has pleaded not guilty and has argued he’s being unfairly targeted by the Justice Department after Republicans decried the now-defunct plea deal as special treatment for the Democratic president’s son.
Fauci questioned in House hearing Washington, D.C. Dr. Anthony Fauci was back before Congress on Monday, calling Republican allegations that he’d tried to cover up COVID-19’s origins “simply preposterous.” The top U.S. infectious disease expert until 2022, Fauci was grilled by the House panel behind closed doors in January. On Monday, they questioned him again, in public and on camera. The Republicanled subcommittee has spent more than a year probing the nation’s response to the pandemic and whether U.S.funded research in China may have played any role in how it started. Democrats said the investigation has found no evidence that Fauci did anything wrong.
By A.P. Dillon North State Journal
Audit alleges nearly $700K in improper spending at Fayetteville State One employee was identified as the now-former House Democratic Caucus communications director By A.P. Dillon North State Journal RALEIGH — A recent investigative audit by the office of North Carolina State Auditor Jessica Holmes revealed the misuse of nearly $700,000 at Fayetteville State University. The audit found that from January 2022 to August 2023, the Fayetteville State University’s (FSU) Office of Strategic Communication (OSC) made $692,239 in purchasing card (P-card) and travel card (T-card) purchases that were unallowable under university policies and/or lacked sufficient documentation to justify the expenses. P-card and T-card transactions totaling $322,743 lacked receipts or documented busi-
ness purposes, leaving nearly half of the OSC’s purchases during that period inadequately supported. The OSC employees making the unallowable purchases included the former associate vice chancellor, the former director of digital strategy, and the current assistant vice chancellor for marketing and creative services. The individuals in those three positions spent $575,123 on 208 prohibited P-card purchases, including $464,627 paid directly to individuals, consultants or employees, $91,340 for paying invoices, and $13,650 on unallowable items like IT equipment and gifts. FSU’s response to the P-card portion of the audit says the school has referred that spending to the State Bureau of Investigation to “determine if there is sufficient evidence to pursue criminal charges.” See AUDIT, page A3
RALEIGH — A trio of bills dealing with artificial intelligence and deepfakes have been filed at the North Carolina General Assembly. Two of the bills filed near the end of May deal with AI and deepfakes in political campaigns and advertising. The other deals with protecting children from AI exploitation. House Bill 1072, “Require Disclaimer/Use of AI in Political Ads,” establishes disclosure obligations for the use of AI technologies in creating political advertising materials, with criminal penalties for noncompliance, in an effort to promote transparency. The bill defines “artificial intelligence” as computer systems or algorithms capable of imitating intelligent human behavior, including generative AI. The bill requires that an AI disclaimer legend be present and states: “This advertisement was created using artificial intelligence.” The disclaimer also has specific requirements for placement and duration in social media ads and in automated calling ads using AI. There would be criminal penalties for disclaimer noncompliance. It would also be a Class 1 misdemeanor for candidates, campaigns, political parties/ committees or ad sponsors to fail to include the required AI disclaimer. Senate Bill 880, “No Deepfakes in Election Communication,” is aimed at regulating the use of AI-generated synthetic See AI, page A2
University R&D accelerator group issues grants for 8 projects NCInnovation used a multiphased review process and ties funding tranches to milestones By A.P. Dillon North State Journal RALEIGH — NCInnovation, the nonprofit focused on speeding up commercialization of research and development of university projects in the state, recently announced $5.2 million in funding for eight research projects at seven North Carolina public universities in its first round of pilot program grants. NCInnovation (NCI) is a 501(c)(3) nonprofit that received $500 million in nonrecurring funds over the next two years as part of the 2022-23
media (deepfakes) in elections to prevent voter deception and protect candidates from harmful disinformation. The bill defines “deceptive and fraudulent deepfake” as synthetic media depicting a candidate or political party with intent to injure their reputation or deceive voters, where it appears to show something that did not actually occur or creates a fundamentally different impression than reality. The bill would prohibit the distribution of deceptive and fraudulent deepfakes of candidates or political parties on the ballot within 90 days of an election unless properly disclosed as being AI-manipulated. Candidates depicted in deceptive deepfakes would be able to seek injunctive relief prohibiting the publication of such images, and the bill contains civil penalties for violations, with higher fines included for repeat violations or intent to cause violence. Additionally, there would be a carve-out for news media broadcasting deepfakes that have disclaimers, are satire/ parody, and for entities making good-faith efforts to verify authenticity. A third bill, Senate Bill 828, titled the “Child Protection and Deepfake Prohibition Act,” aims to prohibit the creation, possession and dissemination of visual representations that give the appearance that a minor is engaged in sexual activity. Senate Bill 828 would amend existing laws on sexual exploitation of minors to include visual representations created, adapted or modified by any means to display a minor engaged in a sex act. The bill would also expand the definitions of first-, sec-
of-concept, show commercial promise, and have the potential to drive job creation and economic growth across the state.” At least six UNC System chancellors have issued formal statements in support of the grants. Twenty-eight projects were initially received from 10 state university leaders. That number was reduced to 19 after initial reviews and the additional review processes filtered the project list down to the eight approved. The projects greenlit for grants include: lithium refining (UNC Greensboro); melanoma treatment (East Carolina University); drinking water See GRANTS, page A8
MICHAEL PROBST / AP PHOTO
Among the eight grants approved by NCInnovation was beehive monitoring research at Appalachian State University. budget. Of that funding, NCI can use $140 million of the endowment as investment income
over the next two fiscal years. NCI said the eight projects selected have “achieved proof-
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