House committee substitute deletes all provisions of the 1st edition and replaces it with the following changes.

Part I.

Notwithstanding the Joint Conference Committee Report on the Current Operations Appropriations Act of 2023 (JCCR), changes the receipts budgeted from the State Emergency Response and Disaster Relief Fund in two ways. First, requires a directed grant for Johnston Community College to instead be used for a directed grant to the Southeastern Drainage Office, Inc. for a drainage project and related capital and equipment. Second, changes a directed grant for Madison County to a directed grant to Haywood County for the same purpose. 

Repeals new GS 130A-290(a)(35)(h), as enacted by SL 2023-134 (modification of defined term solid waste to include certain auxiliary containers). Amends the scope of a local government’s authority to restrict, tax, charge a fee, prohibit, or otherwise regulate auxiliary containers under new GS 153A-145.11 (limitation on regulation of auxiliary containers; shopping carts by counties) and new GS 160A-205.6 (same-cities) as enacted by SL 2023-132, to only prohibit these local government entities from restricting the use or sale of an auxiliary container (currently, use, disposition, or sale).

Makes clarifying changes to the definition of grant project in GS 159-13.2. Makes technical changes.  

Part II.

Notwithstanding any provision of law or the JCCR to the 2021 Operations Appropriations Act (SL 2021-180), reallocates $300,000 of the $350,000 allocated to the Marine Corps Scholarship Foundation, Inc. for the NC Patriot Star Family Scholarship Program (Program) under Section 8.3 of SL 2021-180 to the Patriot Foundation, a nonprofit corporation, to administer the program beginning in the 2023-2024 fiscal year. Amends Section 8.3(d) of SL 2021-180 to allow the UNC Board of Governors to reallocate Program funds between the two foundations in each fiscal year funds are made available to the Program as long as each foundation agrees to the reallocation in that year.

Amends Section 8A.6(s) of SL 2023-134 to extend the deadline for the State Board of Education’s (BOE) adoption of an emergency rule for early graduation requirements from November 1, 2023, to February 15, 2024.

Amends Section 7.80 of SL 2023-134 to add effective dates, as follows, for new GS 115C-550.5 (remote instruction-private church school or religious charter); GS 115C-558.5 (remote instruction-qualified nonpublic school); GS 115C-562.5(a)(7) (requiring covered entities to maintain a school facility within the State where in-person instruction is provided). Specifies that new GS 115C-562(a)(7) applies beginning with scholarship funds accepted by the nonpublic schools for the 2024-2025 school year. Sets general effective date of July 1, 2023.

Amends the definition of qualifying teacher for loan forgiveness in the North Carolina Teaching Fellows Program under GS 116-209.60(5b), as enacted by Section 8A.4(a) of SL 2023-134, to require the teacher to also serve as a teacher in a qualifying licensure area. Effective July 1, 2023, and applies to applications for the award of funds beginning in the 2024-2025 academic year.

Corrects statutory citations in GS 115C-562.4(a) (identification of nonpublic schools and distribution of scholarship grant information); GS 115C-562.5 (obligations of nonpublic schools accepting eligible students receiving scholarship grants); and GS 115C-596 (identification of nonpublic schools and distribution of personal education student account information), as amended by Section 8A.16 of SL 2023-134.

Expands the authority of the Chancellor of East Carolina University to adopt policies and procedures pertaining to the design construction, and renovation of buildings and infrastructure under GS 116-360.35(b), as enacted by Section 4.10(b) SL 2023-134, to also include the Medical Faculty Practice Plan, and ECU Dental School Clinical Operations in addition to the School of Medicine. Makes conforming changes.

Makes technical change to Section 4.10(aa)(4) of SL 2023-134 (appropriations to NC Care).

Amends Section 7.96(a) of SL 2023-134 to change the application timeline for the Plasma Games Grant Program as follows. Requires the Department of Public Instruction (DPI) to make an application available to public school units by November 1, 2023 (was, November 15, 2023) and June 1 (was, August 1) of each year thereafter funds are made available. Changes the application deadline from January 15, 2024, to March 1, 2024, for the first year and December 1 each year after (was, October 1).  Requires DPI  to now make determinations within 30 days of the close of the application period (was, by March 15, 2024, for the initial application and December 1 each year thereafter).

Part III.

Adds  new subsection 9M.1(s1) to SL 2023-134 exempting from the matching rates for participating set forth in the administrative requirements of the Social Services Block Grant (10A NCAC 71R .0201(3)) certain appropriated amounts in the Social Services Block Grant for each fiscal year of the 2023-2025 fiscal biennium to the Department of Health and Human Services, Division of Social Services or Division of Mental Health, Developmental Disabilities, and Substance Use Services, for the nonprofit organizations described therein.  

Makes technical corrections to GS 131E-76(3), as amended by Section 9F.11 of SL 2023-134.

Amends GS 130A-336.1 (alternative process for wastewater approval), as amended by Section 3 of SL 2023-90, as follows. Clarifies that an owner of a wastewater system must submitted the required materials to the local health department prior to receiving  certificate of occupancy. Sets forth process by which health department must notify the appropriate inspections department upon receiving the materials by the owner of a wastewater system.  Now specifies that a wastewater system authorized under GS 130A-336.1 is not affected by a change in ownership of the site of the wastewater system (was, system was transferrable to new owner upon consent of the professional engineer with new contract required).  Amends GS 130A-336.2, concerning alternative wastewater system approvals for nonengineered systems, by requiring the listed items to be submitted prior to receiving a Certificate of Occupancy from the appropriate inspection department; no longer requires inclusion of the specified fee. Requires within two business days of receiving this required documentation that the local health department notify the appropriate inspections department; if it fails to do so, the owner of the wastewater system may submit the Authorization to Operate to the appropriate inspections department and receive a Certificate of Occupancy. Amends GS 130A-336.2(o) (alternative wastewater system approvals for nonengineered systems), as amended by Section 4 of SL 2023-90, to now specify that that a wastewater system authorized under the law is not affected by a change in ownership of the site of the wastewater system (was, system was transferrable to new owner upon consent of the Authorized On Site Wastewater Evaluator with new contract required). Effective retroactive to July 10, 2023.

Part IV.

Authorizes the funds allocated to the Town of Middlesex in line with Section 12.13(d) of SL 2021-180 to be used to install a new elevated water tank, new groundwater well, associated piping or appurtenances, and all necessary land purchases for installation. Amends Section 12.13(f) (water and wastewater infrastructure projects) to extend the deadline for Henderson County to receive a permit for the improvement of wastewater treatment in the Edneyville area, from December 31, 2023 to June 30, 2025.

Amends Section 12.2(k) of SL 2023-134 to reduce the amount of administrative costs the Department of Environmental Quality may use from the allocated funds from 3% to 1.5%.  Amends Section 12.2(e)(28) of SL 2023-134 to delete the $6 million allocation for the design and construction of the Muddy Creek Wastewater Treatment Plan Expansion project from the $69.6 million appropriated to the Cabarrus County Water and Sewer Authority. Instead, allocates $11 million (was, $5 million) to be used for the extension of wastewater lines to and in the Town of Midland.

Specifies that of the funds allocated to the City of Raeford by Section 12.2(e)(145) of SL 2023-134, $3 million must be used for the extension of sewer lines to the Cameron Heights community.

Removes requirement that of the $14 million appropriated to the Town of Troutman by Section 12.2(e)(186) of SL 2023-134 that $4 million be used for the connection of the Duck Creek sewer outfall line to the City of Statesville’s Third Creek Wastewater Treatment Plant.

Amends Section 12.17 of SL 2023-134 as follows. Amends the requirements for the Permit Bonus Pilot Program (Program) for qualifying employees who process applications for Title V Air Permits as follows. Specifies that the bonus is received after a Title V Air Permit is reviewed and a final action occurs (was, reviewed and completed). Amends the section and GS 143-213 by making a clarifying change in the definition of the term administratively complete. Amends the maximum amount each qualifying employee who is a meteorologist is eligible to receive for major modification permits from N/A to 300-750, depending on the number of federal programs. Amends the schedule for the bonus structure for the first six-month period so that it applies to administratively complete Title V Air Permit applications received on or after January 1, 2024, and before July (was, June) 1, 2024; makes conforming changes to the applicable dates for the bonus structure for the second six-month period. Also amends the bonus structure for the second six-month period by decreasing the applicable number of processing days and days for deduction for major modification permits and increasing the number of days for new Title V Air permits. Instead of requiring, allows the Environmental Management Commission to adopt temporary rules to implement the section.

Amends GS 113A-61(b1), as amended by Section 12.10 of SL 2023-134 and Section 2(d) of SL 2023-142 so that a local government cannot deny a draft erosion and sedimentation control plan based solely on the applicant’s need to obtain most other environmental permits, authorizations, or certifications for the project, in addition to need to obtain other development approvals for the project. Makes organizational changes and technical changes. Effective July 1, 2024.

Amends Section 11.19 of SL 2021-180 as follows. If the Economic Investment Committee awards a Job Development Investment Grant for a qualifying project in Randolph County while the county is classified as a development tier one area, also appropriates $30 million in nonrecurring funds from the Economic Development Project Reserve to the Department of Transportation for right of way acquisition and associated roadwork needed at the project site in Randolph County Makes conforming, organizational, and clarifying changes.  Prevents the Department of Commerce from requiring repayment or reimbursement for any other funds appropriated under Section 11.19.

Amends the Fund Codes used for specified certifications in Section 43.2 of SL 2023-134.

Amends G 143-215.73F(b) (Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund) to amend the use of fund for aquatic weed control projects in waters of the State so that funds can be used to (1) address designated noxious aquatic weed, or (2) cyanobacteria causing harmful algal blooms or producing cyanotoxins such as cylindrospermopsin and saxitoxins, or (3) address  other aquatic vegetation not so designated, if the vegetation obstructs public water access or access by watercraft to public watercraft launching or docking  areas. Makes technical and organizational changes.

Part VI. General Government

Adds that the provisions in Section 35.1 (concerning lobbying fee increases) of SL 2023-134 become effective January 1, 2025.

Adds a new Part to SL 2023-134, which amends grants and funds allocated to the Office of State Budget and Management – Special Appropriations as follows: (1) changes the $4 million directed grant to Burke County for 2023-24 for capital improvements or equipment for fire departments, so that it is now provided for Emergency Medical Services; (2) changes the recipient of the $1.5 million directed grant for the 2023-24 fiscal year for physician awareness and training related to treating PANS/PANDAS from the North Carolina Medical Society to Neuroimmune North Carolina; (3) changes the recipient of the $4 million directed grant for 2023-24 for capital projects, including aviation and economic development, from Bladen County to Bladen's Bloomin Agri-Industrial, Inc.; (4) changes the recipient of the $100,000 directed grant for 2023-24 for capital needs and security upgrades from Wilson Pregnancy Center, Inc. to Wilson County School: Her Pride Afterschool Mentoring Program; (5) changes the location for the use of the $50,000 directed grant to Wilson for 2023-24 for capital improvements or equipment from the Herring-Ellis Cemetery to the Vick Cemetery; (6) specifies that the $250,000 directed grant to The Salvation Army for the Center of Hope for 2023-24 for related capital improvements or equipment is for the Guilford County location; (7) now requires that the $100,000 directed grant to Equity Before Birth for 2023-24 to support of MAAME, Inc., must be equally divided to support both Equity Before Birth and MAAME, Inc.; (8) requires that the $2,950,000 directed grant to Lumbee Land Development, Inc., for the 2023-24 fiscal year for the Strike At The Wind outdoor drama be used instead for cultural and economic development; (9) changes the recipient of the $200,000 directed grant for 2023-24 fiscal year for operations or equipment for youth programs from Richmond County to the City of Rockingham; (10) reduces the amount of the $800,000 directed grant to Denver Area Business Association, Inc., by $100,000, which must be allocated instead to North 321 VFD, Inc.; (11) reduces the amount of the $2 million directed grant to Lincoln County Schools for athletic facility upgrades by $1 million, which must instead be provided to North 321 VFD, Inc.; (12) changes the recipient of the $125,000 directed grant for 2023-24 from the Banner American Legion Auxiliary Unit #109, Inc., to Banner Post 109, Incorporated; (13) changes the recipient of the $300,000 directed grant for 2023-24 to purchase a new fire truck and related equipment from the Town of Macclesfield  to the Town of Pinetops; and (14) changes the recipient of budget receipts from the ARPA Temporary Savings Fund from the Museum of the Cape Fear Historical Complex Foundation, Inc., for capital improvements or equipment for the NC Civil War Emancipation and Reconstruction History Center to the NC History Center on the Civil War, Emancipation and Reconstruction Foundation.

Amends SL 2023-134 by adding the following new section. Requires that $15 million of the funds appropriated to the League of Municipalities for the creation of an audit software grant program be provided instead to the Piedmont Triad Regional Council for the management and implementation of the SimplySolv centralized state auditing system. Allows the funds to be used: for development, operation, and support of technology specifically for North Carolina; to recoup development costs already expended associated with technology built specifically for North Carolina; and to fund support and operations required to service North Carolina. Specifies ways in which the funds may not be used.

Amends GS 126-6.3, as amended by SL 2023-134, to require the Office of State Human Resources (OSHR) to prohibit from acquiring new temporary employees any agency or division, based on individual budget code, owing an invoice to OSHR that is over 90 days overdue, no longer also including a total overdue invoice amount exceeding $200,000 for any number of days. Also allows the Director of the OSHR to create exceptions to this requirement if the specified requirements are met. Amends the requirements that must be met in order for the Director to allow an exception to this requirement or to the prohibition on employing temporary employees for more than 11 consecutive months, to now include: (1) the exception is in the best interests of the State because removing the employee from the job assignment will cause severe harm to the agency's ability to provide vital services to the public and (2) the exception will not result in extending the 11-month maximum length of temporary employment beyond 22 months from the employee's initial hire date, unless that employee is providing medical care (previously did not reference the exception for providing medical care).

Part VII. Salaries and Benefits

Amends Section 7A.6 of SL 2023-134 as follows. Requires that for determining the average daily membership of a principal's school, between January 1, 2024 (was, 2023), and June 30, 2024 (was, 2023), the average daily membership for the school for the 2023-24 school year must be used. Requires that for purposes of determining the school growth scores for each school the principal supervised in one or more prior school years, between January 1, 2024 (was, 2023), and June 30, 2024 (was, 2023), the school growth scores from the 2021-22 and 2022-23 school years must be used.

Section 39.1(b)(8) of SL 2023-134 is amended to also include employees of schools operated by the Department of Adult Correction among those who are not eligible to receive the legislative salary increases.

Amends the salary schedule for Correctional Officers of the Department of Adult Correction under Section 39.15(b) of SL 2023-134 by changing the salary for Correctional Officers having two years of experience (CO II) to: (1) $42,832 in 2023-24, effective July 1, 2023, and (2) $44,117 in 2024-25, effective July 1, 2024.

Amends Section 39.6 of SL 2023-134 by increasing the salary of the Director of Indigent Defense Services from $157,751 to $164,454 for 2023-24 and to $168,565 for 2024-25.

Part VIII. Capital

Adds a new section to SL 2023-134, which provides as follows. Amends the following grants and funds allocated from the State Capital and Infrastructure Fund: (1) allows the funding allocated to the University of North Carolina at Pembroke for project code UNC/PEM23-1 in the sum of $6.1 million for 2024-25 to be used for renovation or replacement of the Givens Performing Arts Center and (2) requires the funding allocated to Tree House Recovery, Inc. in the sum of $6 million for 2023-24 to be provided to Tree House Recovery, Inc., located in Wilmington, NC, for construction of a substance abuse services facility.

Adds a new section to SL 2023-134, which allows the Office of State Budget and Management to use up to $1 million in nonrecurring funds for the 2023-25 fiscal biennium from the State Capital and Infrastructure Fund to fund up to five temporary positions to assist in the administration of grants and other funding allocations from the Funds and appropriates the funds for that purpose. Specifies that these temporary positions are time-limited to the duration of the 2023-25 fiscal biennium.

Part IX. Transportation

Amends GS 20-4.05, enacted by SL 2023-134, which allows the DMV to charge a transaction fee of up to 2% on electronic payments for any cost, fee, fine, or penalty imposed under GS Chapter 20, by adding that this applies to transactions completed in-person, through the World Wide Web, or through any other means of electronic access. Effective July 1, 2024.

Adds a new section to SL 2023-134 which replaces: (1) Fund Code 1332, referenced for funds appropriated to the Department of Transportation for State Retirement Contributions, with Fund Code 0871; (2) Fund Code 7031, referenced for funds appropriated to the Department of Transportation for Safety and Risk Management Equipment, with Fund Code 7185; and (3) Fund Code 7070, referenced for Multi-State Highway Planning Funds, with Fund Code 7844.

Part X.

Effective July 1, 2023.

Makes conforming changes to act’s long and short titles.