UNC LEGISLATIVE PRIORITIES/COVID-19 IMPACTS.

View NCGA Bill Details2021
House Bill 243 (Public) Filed Tuesday, March 9, 2021
AN ACT TO PROVIDE EFFICIENCY AND FLEXIBILITY TO THE UNIVERSITY OF NORTH CAROLINA TO ADDRESS BUDGETARY AND OTHER IMPACTS OF COVID-19 THROUGH TEMPORARY SALARY REDUCTIONS, EARLY RETIREMENT INCENTIVES, REDUCTION IN FORCE APPROVAL AUTHORITY, AND AUTHORITY TO PROVIDE STATE HEALTH PLAN PREMIUM PAYMENTS FOR CERTAIN EMPLOYEES PLACED ON EMERGENCY TEMPORARY FURLOUGHS.
Intro. by Hardister, Hurley, Pickett, Terry.

Status: Conf Com Appointed (House action) (Apr 21 2021)

SOG comments (2):

Long title change

House committee substitute to the 1st edition changed the long title. Original long title was AN ACT TO PROVIDE EFFICIENCY AND FLEXIBILITY TO THE UNIVERSITY OF NORTH CAROLINA TO ADDRESS BUDGETARY AND OTHER IMPACTS OF COVID-19 THROUGH TEMPORARY SALARY REDUCTIONS, EARLY RETIREMENT INCENTIVES, REDUCTION IN FORCE APPROVAL AUTHORITY, COVID-19 LEAVE FLEXIBILITY, AND TO PROVIDE STATE HEALTH PLAN PREMIUM PAYMENTS FOR CERTAIN EMPLOYEES PLACED ON EMERGENCY TEMPORARY FURLOUGHS, EXPAND CARRYFORWARD AUTHORITY, AND TO MODIFY APPLICATION OF STUDENT INTEREST CHARGES ON PAST DUE ACCOUNTS.

Long title change

House committee substitute to the 2nd edition changed the long title. Original title was AN ACT TO PROVIDE EFFICIENCY AND FLEXIBILITY TO THE UNIVERSITY OF NORTH CAROLINA TO ADDRESS BUDGETARY AND OTHER IMPACTS OF COVID-19 THROUGH TEMPORARY SALARY REDUCTIONS, EARLY RETIREMENT INCENTIVES, REDUCTION IN FORCE APPROVAL AUTHORITY, AUTHORITY TO PROVIDE STATE HEALTH PLAN PREMIUM PAYMENTS FOR CERTAIN EMPLOYEES PLACED ON EMERGENCY TEMPORARY FURLOUGHS, 8 AND EXPANDED CARRYFORWARD AUTHORITY.

Bill History:

H 243

Bill Summaries:

  • Summary date: Apr 19 2021 - More information

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

    Part I.

    Amends Section 1 of the act to change the sunset of the authority granted to the UNC President or, if delegated, a chancellor to temporarily reduce UNC System employee salaries from December 31, 2022, to December 31, 2021. 


  • Summary date: Apr 14 2021 - More information

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

    Part I.

    Revises the requirements for implementation of the temporary salary reduction for employees of the UNC System by the President or, if delegated, the chancellor of a constituent institution, as authorized by the act. Now prohibits a salary reduction from resulting in an annual salary for any employee of less than $65,000 (was, $45,000). Also prohibits a salary reduction from being greater than 10% (was, 20%) of an employee's annual base salary within any 12-month period. 


  • Summary date: Mar 23 2021 - More information

    House committee substitute makes the following changes to the 2nd edition.

    Eliminates Part V of the act, which amended GS 116-30.3 to allow authorized budget codes that can carry forward a General Fund current operations appropriations credit balance remaining at the end of each fiscal year to use funds carried forward for one-time expenditures (was, limited to using up to 2.5% of the amount carried forward for projects eligible to receive funds under GS 143C-8-13(a), with one half of amounts over 2.5% required to be distributed to the UNC System Office to be disbursed to constituent institutions at BOG discretion, with the remaining amount retained in the budget code). Amends the act's long title.


  • Summary date: Mar 18 2021 - More information

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

    Eliminates the following Parts of the previous edition: Part IV, which allowed UNC employees subject to the Human Resources Act to use accrued leave for any COVID-19 related absences until December 31, 2021; and Part VII, which extended the waiver of interest accrued and charged to past-due student accounts at UNC constituent institutions held between March 13, 2020, and December 31, 2021, rather than September 15, 2020, set out in Section 2.28 of SL 2020-3 (COVID-19 Recovery Act). Makes conforming organizational changes. Makes conforming changes to the act's long title. 


  • Summary date: Mar 9 2021 - More information

    Part I

    Authorizes the UNC President to implement a temporary salary reduction for UNC employees to offset budget and revenue reductions at a constituent institution, defined to not be a reduction in connection with reassignment, demotion, or other disciplinary action of an employee. Allows for delegation to chancellors of constituent institutions. Requires the reductions to be implemented across-the-board to affect an entire constituent institution or its major subdivisions. Details four parameters for reductions, including that salary reductions cannot results in an annual salary of less than $45,000 or amount to more than 20% of an employee's annual base salary. Prohibits offsetting a reduction with paid leave when regularly scheduled hours are also reduced. Allows for chancellors to grant flexible leave to affected employees, as specified. 

    Requires the UNC President to quarterly report to the specified State officials and entities, and the specified NCGA division, on salary reductions. Specifies require content of the reports. 

    Sunsets the authorities granted on December 31, 2022.

    Part II

    Allows the UNC Board of Governors (BOG) to authorize the adoption of an early retirement incentive program to provide long-term cost-savings to UNC and improved operational efficiencies for UNC to remain in effect until December 31, 2022. Directs the UNC System Office to develop policies and regulations for the program, including four requirements provided, such as program eligibility criteria based on retirement plan and severance payment parameters. Requires the UNC System Office to report to the specified State department and NCGA division on implementation of the program, as specified, by October 1, 2021, and December 1, 2022, as applicable. Sunsets the provisions on December 31, 2022.

    Part III

    Enacts GS 116-14(b3) to authorize the UNC President to approve a reduction in force for positions subject to the Human Resources Act (HRA), including reorganization and payment of severance with non-State funds, without further approval by any other State agency, so long as reduction is in accordance with the policies of the Office of State Human Resources. Allows for delegation of the authority granted to chancellors of constituent institutions. Requires annual reporting to the Office of State Human Resources. Requires preapproval of severance payments with State funds by the Office of State Budget and Management. 

    Part IV

    Allows UNC employees subject to the HRA to use accrued leave for any COVID-19 related absences. Excludes leave options related to terminal leave payouts, terminal use of leave prior to retirement, and unpaid time due to placement on a temporary emergency furlough. Sunsets December 31, 2021.

    Part V

    Authorizes the BOG to allocate non-State funds to pay for the employee portions of monthly premiums in the State Health Plan for Teachers and State Employees (SHP) that would have been paid if the participating employee is currently on an emergency furlough which places the employee below half-time employment for a calendar month. Caps BOG payment at 12 months for the period between June 1, 2020, and December 31, 2021. Bars requiring employees to reimburse UNC for any premiums paid under the section.

    Part VI

    Amends GS 116-30.3 to allow authorized budget codes that can carry forward a General Fund current operations appropriations credit balance remaining at the end of each fiscal year to use funds carried forward for one-time expenditures (was, limited to using up to 2.5% of the amount carried forward for projects eligible to receive funds under GS 143C-8-13(a), with one half of amounts over 2.5% required to be distributed to the UNC System Office to be disbursed to constituent institutions at BOG discretion, with the remaining amount retained in the budget code). Maintains other existing limitations and requirements for carryforward authority under the statute, including that expenditures cannot impose additional financial obligations on the State or be used to support positions. 

    Part VII

    Amends Section 2.28 of SL 2020-3 (COVID-19 Recovery Act) to extend the waiver of interest accrued and charged to past-due student accounts at UNC constituent institutions held between March 13, 2020, and December 31, 2021 (was, September 15, 2020). 


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