Bill Summary for H 243 (2021-2022)

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Summary date: 

Mar 9 2021

Bill Information:

View NCGA Bill Details2021
House Bill 243 (Public) Filed Tuesday, March 9, 2021
Intro. by Hardister, Hurley, Pickett, Terry.

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Bill summary

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).