Senate committee substitute to the 2nd edition makes the following changes. Deletes the provisions of the previous edition and replaces it with the following.

Part I.

Appropriates, effective July 1, 2019, $12.4 million for 2019-20 and $24.8 million for 2020-21 from the General Fund to the North Carolina Community College System to provide legislative mandated salary increases for State-funded employees. Appropriates, effective July 1, 2019, $15 million in recurring funds for 2019-20 and $30 million in recurring funds for 2020-21 from the General Fund to the UNC Board of Governors to provide legislatively mandated salary increases for State employees. Appropriates, effective July 1, 2019, $6 million in recurring funds for 2019-20 and $11,433,413 for 2020-21 from the General Fund to the UNC Board of Governors to provide funds for faculty retention in the UNC system.

Part II.

Allows the community college boards of trustees to provide personnel a salary increase, for the 2019-2021 biennium, according to the policies adopted by the State Board of Community Colleges (State Board). Allows compensation increase funds to be used for merit pay, across-the-board increases, recruitment bonuses, retention increases, and any other compensation increase pursuant to policies adopted by the State Board. Requires the State Board to report to the NCGA and specified division on the use of these funds by March 1, 2020, and March 1, 2021. Effective July 1, 2019, sets the minimum salaries for nine-month, full-time curriculum community college faculty for 2019-2021 at the specified amounts, which vary according to education level. Requires the pro rata hourly rate of the minimum salary for each education level to be used to determine the minimum salary for part-time faculty members.

Part III.

Allows the UNC Board of Governors (BOG) to provide employees with salary increases, for the 2019-2021 biennium, according to policies adopted by the BOG. Allows compensation increase funds to be used for merit pay, across-the-board increases, recruitment bonuses, retention increases, and any other compensation increase according to those policies. Requires the BOG to report to the NCGA and specified division on the compensation increases by March 1, 2020, and March 1, 2021.

Part IV.

Awards a one-time additional five days of annual leave, credited on July 1, 2019, to any person who is (1) a full-time permanent employee of UNC or a community college institution on July 1, 2019, and (2) eligible to earn annual leave. Provides for the accounting of the leave and requires that it remain available during the length of the employee's employment. Provides for prorating the amount given to part-time permanent employees. Specifies that this additional leave has no cash value and cannot be cashed in. Requires that any vacation leave remaining on December 31 of each year in excess of 30 days be reduced by the number of days awarded in this section that were actually used by the employee during the year, such that the calculation of vacation leave days that would convert to sick leave reflects a deduction of those days of special annual leave awarded in this section that were used by the employee during the year. Provides that the number of days awarded that carry forward equals the number of days awarded in this section remaining on December 31 of each year plus the number of days awarded in this section that were deducted from vacation leave in excess of 30 days for the calculation of sick leave.

Part V. 

Provides that if H 966, 2019 Appropriations Act, becomes law, then Section 38.23 (providing one-time cost of living supplements for retirees of the Teachers' and State Employees' Retirement System, the Consolidated Judicial Retirement System, and the Legislative Retirement System) is repealed.

Amends GS 135-5 (concerning the Teachers' and State Employees' Retirement System), GS 135-65 (concerning the Consolidated Judicial Retirement System), and GS 120-4.22A (concerning the Legislative Retirement System), as follows. Adds that on or before December 31, 2019, a one-time cost-of-living supplement payment of 0.50% of the beneficiary's annual retirement allowance payable as of November 1, 2019, must be made to or on account of beneficiaries who are living as of November 1, 2019, and whose retirement commenced on or before November 1, 2019. Also provides that after September 1, 2020, but on or before October 31, 2020, a one-time cost-of-living supplement payment of 0.50% of the beneficiary's annual retirement allowance payable as of September 1, 2020, must be made to or on account of beneficiaries who are living as of September 1, 2020, and whose retirement commenced on or before September 1, 2020. Allows the Retirement System Division of the Department of State Treasurer to increase receipts from the retirement assets of the corresponding retirement system or pay costs associated with the administration of the payment directly from the retirement assets, in order to administer the cost-of-living supplement. 

Appropriates $17,363,306 for 2019-20 and for 2020-21 from the General Fund to the Office of State Budget and Management to be held in reserve to implement the one-time cost-of-living supplements.

Repeals Section 3.15(b) and (c) of SL 2019-209, which set the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2019-2020 and 2020-21 fiscal years for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS). Provides that if H 966, 2019 Appropriations Act, becomes law, then Section 38.22 (concerning salary-related contributions) is repealed. Instead, sets out provisions effective July 1, 2019, and July 1, 2020, which set the State's employer contribution rates budgeted for retirement and related benefits (disability, death, retiree health, and NC 401(k)) as a percentage of covered salaries for the 2019-2020 and 2020-21 fiscal years for teachers and State employees, State law enforcement officers (LEOs), the 32 University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated 33 Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) at the specified rates.

Part VI.

Specifies that the salary increases provided by this act do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to June 30, 2019, for the 2019-20 fiscal year or June 30, 2020, for the 2020-21 fiscal year. Requires that for the 2019-21 biennium, payroll checks issued to employees after July 1, 2019, and July 1, 2020, that represent payment of services provided prior to July 1 of each year are not eligible for salary increases provided for in this act.

Provides that if any provision of this act and GS 143C-5-4 are in conflict, the provisions of this act shall prevail. If House Bill 966 becomes law, then Parts I, II, III, and IV and Sections 5.2 and 6.1 of this act are repealed.

Effective July 1, 2019.

Makes conforming changes to the act's titles.