REEGAN'S RULE/ENFORCE PHARM. BEN. MGMT. (NEW)

View NCGA Bill Details2015-2016 Session
Senate Bill 694 (Public) Filed Thursday, March 26, 2015
AN ACT TO ENCOURAGE PARENT EDUCATION DURING WELL‑CHILD VISITS AT SPECIFIC AGE INTERVALS REGARDING TYPE I DIABETES AND TO AMEND THE LAW PERTAINING TO PHARMACY BENEFIT MANAGERS.
Intro. by Newton, Lee, Daniel.

Status: Ch. SL 2015-273 (Senate Action) (Oct 20 2015)

SOG comments (1):

Long title change

House committee substitute to the 3rd edition changed the long title. Original long title was AN ACT TO ENACT THE EMPLOYEE FAIR CLASSIFICATION ACT.

S 694/S.L. 2015-273

Bill Summaries:

  • Summary date: Oct 26 2015 - More information

    AN ACT TO ENCOURAGE PARENT EDUCATION DURING WELL‑CHILD VISITS AT SPECIFIC AGE INTERVALS REGARDING TYPE I DIABETES AND TO AMEND THE LAW PERTAINING TO PHARMACY BENEFIT MANAGERS. Enacted October 19, 2015. Section 1 is effective December 1, 2015. Section 2 is effective July 1, 2016. The remainder is effective October 19, 2015.


  • Summary date: Sep 29 2015 - More information

    House amendment makes the following changes to the 4th edition. 

    Inserts a word to proposed GS 58-56A-10 to allow courts to order a pharmacy benefits manager to make restitution to the Department of Insurance for administrative expenses that are extraordinary

    Makes clarifying changes to proposed GS 58-56A-10.  


  • Summary date: Sep 29 2015 - More information

    House committee substitute makes the following changes to the 3rd edition.

    Deletes all content of the previous edition and replaces it with the following.

    Enacts new GS 130A-221.5 encouraging physicians, physician assistants, or certified nurse practitioners who provide well-child care to educate and discuss the warning signs and symptoms of Type I diabetes with parents at least once at six specified age intervals, starting at birth and ending at sixty months of age. Effective December 1, 2015.

    Enacts new GS 58-56A-10, Civil penalties for violations; administrative procedure, to Article 56A of Chapter 58, which specifically concerns the management of pharmacy benefits, subjecting pharmacy benefits managers to civil penalties for specified violations, if such violations are deemed to be a general business practice. More specifically, provides for the Commissioner of Insurance to assess monetary penalties or petition the Wake County Superior Court for an order of restitution. Specifies that monetary penalties can range from $100 to $1,000 per day per prescription drug for each prescription found to be improperly reimbursed. Allows the Commissioner of Insurance to petition for restitution to the victim or for the reimbursement of Department costs related to the investigation and hearing. Also allows the Commissioner of Insurance to contract with consultants and other professionals for the purposes of such investigations and hearings. Effective July 1, 2016.

    Changes the act's titles.


  • Summary date: Apr 29 2015 - More information

    Senate amendments make the following changes to the 2nd edition.

    Amendment #1 amends the powers and duties of the Employee Classification Division (established in this act, within the Office of State Budget and Management) to provide that it is a duty of the Division to refer contested penalty assessments to the Industrial Commission (was, to the Office of Administrative Hearings) for an in-person hearing.

    Amendment #2 makes the following changes.

    Amends GS 87-23 to condition the State Board of Examiners of Plumbing, Housing, and Fire Sprinkler Contractors' authority to revoke or suspend the license of, or order the reprimand or probation of, any plumbing, heating, or fire sprinkler contractor on whether a penalty was imposed pursuant to GS 143-765(b), as enacted in this act, that has been upheld on final adjudication. Also adds a new subsection (d) to GS 87-23 to provide that the Board may conduct audits of pay and project records of licensee firms in furtherance of Article 2 of GS Chapter 87 or the Employee Fair Classification Act, Article 81 of GS Chapter 143.

    Amends GS 87-42 to provide that the State Board of Examiners of Electrical Contractors (Electrical Board) may conduct audits of pay and project records of licensee firms in furtherance of Article 4 of GS Chapter 87 of the Employee Fair Classification Act, Article 81 of GS Chapter 143.

    Amends GS 87-47(a1) to add as an activity prohibited by the enforcement authority of the Electrical Board engaging in employee misclassification in violation of GS 143-765(b), as enacted in this act.


  • Summary date: Apr 28 2015 - More information

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

    Amends proposed GS Chapter 143, Article 81, the Employee Fair Classification Act, making technical and clarifying changes to the definitions section for the Article. Amends the name of the newly established division to the Employee Classification Division (was, Employee Misclassification Division). Makes conforming changes.  Amends the factors that are considered when determining if an individual is an independent contractor. Adds language that provides that factors consistent with the holding of Hayes v. Board of Trustees of Elon College can be considered in making an independent contractor determination. Provides that there is a right to a hearing by the Industrial Commission in regards to any penalties assessed (was, a right to a hearing by the Office of Administrative Hearings). Provides that the State Licensing Board for General Contractors has the power to refuse to issue or renew as well as revoke, suspend, or restrict licenses and assess other disciplinary action concerning general contractors if a penalty has been imposed pursuant to GS 143-765(b) and upheld on final adjudication (previously, had such authority when general contractors were found to have engaged in employee misclassification in violation of GS Chapter 143, Article 81). Amends GS 143-59.2(a) to provide that vendors cannot enter into contracts for goods and services with any state government entity if, within five years prior to the date of bid solicitation, the vendor has been assessed a civil penalty pursuant to GS 143-765(b) (was, cannot enter into contracts if assessed a civil penalty for violating employee misclassification regulations) within the five years prior to any bid solicitation. Amends proposed language for GS 153A-134, 160A-194, 153A-360, and 160A-420, making clarifying changes. Amends GS 96-1(b)(12) concerning the definition of employment for the purposes of the Employment Security Law, making clarifying changes and adding that service, as specified, involving delivery or distribution of newspapers or shopping news or the sale of newspapers or magazines is considered employment. 


  • Summary date: Apr 1 2015 - More information

    Enacts new Article 81 in GS Chapter 143, Employee Fair Classification Act, clarifying the distinction between employees and independent contractors. Sets out definitions for use in the Article, including employee misclassification and OSBM (Office of State Budget and Management). Establishes the Employee Misclassification Division (Division) in the OSBM and sets out 10 powers and duties of the Division, including assessing administrative civil penalties for instances of employee misclassification and developing methods and strategies for information sharing between state agencies in order to identify misclassification. Provides for an informal advisory council to advise the director of the Division. Sets out minimum membership of the council including several state officers. Requires the Division to submit an annual report, no later than October 1 of each year, regarding the administration of this Article, to the Office of the Governor and the Joint Legislative Commission on Governmental Operations. Sets out minimum information requirements for the report. 

    Specifies the factors that are to be considered in the determination of status as an independent contractor, including whether the individual has the freedom to use and independently control his or her own assistants. Prohibits an employer from improperly classifying an individual. Establishes a civil penalty for instances of misclassification, including an assessment of no more than $1,000 per misclassified employee. Provides regulations and factors to be considered in assessing the penalty. Provides a process by which a penalty can be appealed. 

    Requires the Division to establish a temporary amnesty program to encourage the voluntary self-reporting by employers engaging in employee misclassification. Requires the Division to establish procedures for participation in the temporary amnesty program and sets out minimum requirements of the procedures.

    Requires every state occupational licensing board or commission to require its licensees or permittees to certify that they have read and understood the employee misclassification notice in GS 143-763(a)(7). Failure to certify will result in a denial of a license or permit by the board or commission.  Provides that any records of the Division that are not civil penalty assessments or final orders are not public records but are subject to inspection by state and federal agencies as specified. 

    Repeals GS 97-5.1, Presumption that taxicab drivers are independent contractors.

    Amends GS 95-25.15(c) to require that an employee misclassification notice be added to NC Department of Labor posters and sets out the information that must be contained, including that any employee that believes they have been misclassified can report the suspected misclassification to the Division.

    Amends GS 87-11 concerning the State Licensing Board for General Contractors providing that it has the authority to refuse or revoke a license or issue a reprimand if it is found that employee misclassification in violation of GS Chapter 143, Article 81, has occurred. Requires the State Licensing Board for General Contractors to include references to the prohibition of employee misclassification in its guidelines governing the suspension and revocation of licenses.

    Amends GS 143-59.2(a), providing that vendors cannot enter into contracts for goods and services with any state government entity if they have been assessed a civil penalty for violating employee misclassification regulations within the five years prior to any bid solicitation. 

    Amends GS 153A-134 and GS 160A-194, concerning permitted regulation and licensing for various occupations, businesses, trades, and entertainment by cities and counties, providing that any applicants subject to regulation and licensure by a city or county under these sections must certify that they have read and understand the employee misclassiification notice in GS 143-763(a)(7).

    Amends GS 153A-360 and 160A-420 concerning construction and development inspections, providing that owners not subject to licensure requirements for building construction and alteration must certify to the city and county that they have read and understand the employee misclassiification notice in GS 143-763(a)(7).

    Amends GS 97-2 the definitions section of the Workers' Compensation Act, deleting language in the definition for the term employee which established a rebuttable presumption that the term employee did not include anyone performing services in the sale of newspapers  or magazines to the ultimate customer as specified. 

    Includes a severability clause. 

    Effective July 1, 2015. 


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