House amendment to the 2nd edition makes the following changes to new GS 143B-3001.B (limited liability for licensed nongovernmental contractors with agencies). Instructs that the statutory damage caps that apply to public service agencies do not apply to claims against a nongovernmental caretaker contracting with a public agency for the provision of services to minors who takes any action that would qualify as abuse under GS 7B-101(1) (definitions pertaining to abuse and neglect of a juvenile). Makes conforming changes.
Bill Summaries: H547 (2025-2026 Session)
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Bill H 547 (2025-2026)Summary date: May 7 2025 - View summary
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Bill H 547 (2025-2026)Summary date: Apr 30 2025 - View summary
House committee substitute to the 1st edition removes the content of the 1st edition and replaces it with the following. Makes conforming changes to the act’s long title.
Enacts GS 143-300.1, which now addresses limited liability for certain licensed contractors with agencies. Defines nongovernmental contractor (a corporation, organization, or association, incorporated or otherwise, that is organized or operating in the State, or an individual operating a facility licensed under Article 2 of GS Chapter 122C-licensure of facilities for individuals with mental health disorders, developmental disabilities, and substance abuse disorders or Article 1A of GS Chapter 131D-concerning child placing and child care) and public agency (the Department of Health and Human Services [DHHS] and any county or local agency administering programs of public assistance). Authorizes claims for negligence to be brought against any nongovernmental contractor (NC) that contracts with the public agency for the provision of services to minors for injury or damage caused by the negligence of the nongovernmental contractor. Specifies that the government contractor cannot be held liable for injury or damage caused by the negligence of the public agency, including any officer, employee, volunteer, or agent of the public agency acting within the scope of their employment. Directs the NC and the public agency to each bear their own costs of defense. Instructs, that except as provided above, if a tort claim against the NC arises from or related to the performance of the contracted services to minors, the statutory damage caps that apply to public service agencies apply to those claims. Requires any claim against the NC arising from its provision of contracted services to minors to be filed in a court of competent jurisdiction, not the Industrial Commission.
Effective October 1, 2025, and applies to claims arising from acts or omissions occurring on or after that date and contracts entered into or renewed on or after that date.
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Bill H 547 (2025-2026)Summary date: Mar 26 2025 - View summary
Creates new GS 143-300.1B, which holds nongovernmental organizations (NGOs) that contract with the Department of Health and Human Services (DHHS) (including any affiliated county or local agency) to provide health and welfare services liable for injury or damage caused by the negligence of the NGOs, but makes the NGOs not liable for any injury or damage caused by DHHS, including employees, volunteers, and agents of DHHS acting within the scope of their employment or authority. Makes the NGO and DHHS each responsible for bearing their own costs for defending any litigation related to their own acts or omissions. Specifies that this section may not be waived by contract provisions or suspended by any court, and makes any provisions imposing liability on an NGO for DHHS’s negligence unenforceable and void. Clarifies that this statute does not affect the immunity available to either party under state or federal law.
Adds new GS 143-300.1C, which outlines the liability in tort for nongovernmental independent contractors providing health and welfare services to DHHS under contract. Makes such independent contractors the functional equivalent of DHHS while performing health and welfare services in the scope of a contract, and makes the contractor subject to the same monetary limits provided in GS 143-299.2. Requires any action against the contractor to be filed with a court of competent jurisdiction and not the Industrial Commission. Provides that the state will indemnify the contractor for any action alleging death or injury as a result of the contractor’s act or omission while performing services within the scope of the contract above the monetary limits in GS 143-299.2. Sets up a claim procedure with the Industrial Commission for indemnification compensation.
Effective and applicable to claims arising and contracts entered into or renewed on or after October 1, 2025.