Bill Summary for H 259 (2015-2016)

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Summary date: 

Sep 29 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 259 (Public) Filed Tuesday, March 17, 2015
Intro. by Cleveland.

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Bill summary

Senate committee amendments make the following changes to the 1st edition.

Amendment #1 deletes all provisions of the previous edition and replaces it with the following.

Section 1.1

Amends Section 2.2(f), providing that the effective date for the specified transfers to the State Controller is July 1, 2015 (was, June 30, 2015), the first day of the new fiscal year.

Section 1.2

Amends GS 143C-9-3(a), as amended by Section 6.24, deleting language which previously provided that the "Settlement Reserve Fund", a special fund, is located in the Office of State Budget and Management.

Section 1.3

Amends Section 6.20(b)(1)a, deleting the Shallow Draft Navigation Channel Dredging and Lake Maintenance Fund from the list of funds and fees under the Department of Environment and Natural Resources (DENR) which can be reviewed by the Senate Appropriations/Base Budget Committee and the House of Representatives Appropriations Committee for the purposes of determining if such funds, programs, etc should continue, have funding reduced, or be eliminated altogether. Makes conforming changes.

Section 2.1

Amends Section 7.3.(a), concerning the table which demonstrates the appropriations for the Information Technology Reserve Fund for the 2015-17 fiscal biennium, adjusting down the amount allocated to the IT Restructuring line item and adds a new line item for E-Forms/Digital Signatures with an associated allocation of $762,115 for each fiscal year.

Section 2.2

Amends GS 143B-1302(d),  concerning the applicability of the State ethics act to the personnel of the Department of Information Technology making a clarifying change.

Section 2.4

Transfers eight specified positions from the Information Technology Internal Service Fund to the Information Technology Reserve Fund.

Section 2.5

Provides that $762,115 allocated to the Information Technology Reserve Fund for each year of the fiscal biennium must be used to support development of enterprise electronic forms and digital signatures capability. 

Section 2.6

Provides that the requirement for "Process Management" in the Appropriations Act is moved from the  Information Technology Reserve Fund to the Information Technology Fund.

Section 2.8

Amends GS 143B-1305(c), adding the Department of Military and Veterans Affairs to the list of agencies that will participate in the transitioning and consolidation of information technology functions to the Department of Information Technology.

Section 2.9

Amends Section 7.9(d), changing a statutory reference, providing that the provisions concerning data center operations do not apply to agencies exempt under GS 143B-1300(b) (was, GS 147-33.80).

Section 2.12

Makes clarifying changes to GS 143B-1312(c), concerning the consolidation of participating agency information technology personnel.

Section 2.13

Amends GS 143B-1312(e), providing that non-exempt employees that are transferred into the Department of Information Technology from participating agencies do not become exempt to the NC Human Resources Act solely because of the transfer.

Section 2.14 

Amends GS 143B-1323(d), concerning the reporting of estimates and budgets for information technology good and services, making a clarifying change.

Section 2.16

Amends GS 143B-1338(a), providing that the State CIO will have approval authority over all agency website funding (previously, also had authority over all agency website content). 

Section 2.18

Provides that out of the funds appropriated to the Information Technology Reserve Fund for IT Restructuring, some of the funds must be used to fund a Business and Technology Applications Specialist position.

Section 2.20

Amends GS 143B-1323, concerning the procurement of information technology by adding a new subsection (k) that provides that contracts concerning such procurement must comply with the requirements of GS Chapter 64, Article 2, provisions concerning verification of work authorization. 

Section 3.1

Amends Section 8.27(c) concerning the Innovation Fund Grant, providing that community colleges cannot earn budget FTE for student enrollments pursuant to this grant, unless such enrollment is otherwise authorized as specified. 

Section 3.2

Amends Section 9.4 concerning the annual salary for permanent full-time and part-time noncertified public school employees, providing that if they are supported from the General Fund then they cannot be legislatively increased for the 2015-17 fiscal biennium, but can be increased otherwise under the law. 

Section 3.3

Adds a new subsection (c) to Section 9.5 which provides that subsection (a) of the same section cannot be construed to modify the compensation of persons initially employed as assistant principals prior to July 1, 2009, for work performed prior to July 1, 2015. 

Section 3.4 

Amends Section 10.11(b) concerning the federal Youth Career Connect Grant awarded to Anson County Schools for 2014-18, which requires students to enroll in community college classes, adding new language that provides that the South Piedmont Community College cannot earn budget FTE for such student enrollments under this grant, unless the student course enrollment is authorized in GS 115D-20(4)a, which authorizes specified course enrollment through certain programs.

Section 3.5

Adds new Section 11.24(a) to the bill, concerning funds for the Academic Summer Bridge Program, reducing the allocated amounts for the program by $119,300 in recurring funds each fiscal year of the 2015-17 fiscal biennium. Increases the management flexibility reduction for UNC by $119,300 for each year of the 2015-17 fiscal biennium, and requires that same amount to be used to decrease the reduction of funds for the Academic Summer Bridge Program.

Section 3.6

Provides that Appalachian State University must use appropriated funds to establish a pilot program to recruit and retain students as teachers for high need licensure areas. Specifies how funds can be used.

Section 3.7

Amends GS 115C-296.13(e), concerning annual state board of education reports, providing that the educator preparation program report cards must be submitted to the Joint Legislative Education Oversight Committee on an annual basis by December 15 (was, November 15).

Section 3.8

Adds new section to the bill concerning the Excellent Public Schools Act, prohibiting any funds appropriated to the Department of Public Instruction from being used for the Excellent Public Schools Act, sets out permissible uses of appropriated amounts.

Section 3.9

Amends GS 116-143.3A(a)(3) deleting language that defined a veteran as, among other things, as someone released from specified service under conditions other than dishonorable service for purposes of qualifying for tuition payment.

Section 4.1

Adds new Section 12A.18 which directs DHHS, Division of Central Management and Support, to reduce it contractual services as specified. 

Section 4.2 

Amends Section 12C.10(c) concerning appropriations to DHHS for information technology costs, correcting a reference to the Division of Social Services with Central Management and Support. 

Section 4.4 

Amends Section 12F.16(1) concerning the Medicaid lock-in program, providing that the report due to the Joint Legislative Program Evaluation Oversight Committee must be remitted by September 30, 2016 (was, September 30, 2015). 

Section 4.5

Amends Section 12F.16(m)(4) concerning participation on the Prescription Drug Abuse Advisory Committee changing a reference to the Rural Health Section of the Division of Public Health to the Office of Rural Health, DHHS.

Section 4.6 

Amends Section 12I.1(w) concerning the Substance Abuse Prevention and Treatment Block Grant replacing references to the Department of Administration, Division of Veterans Affairs, with the Department of Military and Veterans Affairs, created pursuant to Section 24.1 of the appropriations act. 

Section 4.7

Amends Section 12H.17 concerning reimbursement cost settlements, changing the effective date for the section to October 1, 2015 (was July 1, 2015).

Section 4.8

Amends Section 12F.2(b) concerning allocations for single stream funding of DMH/DD/SAS, adding language that clarifies that nothing in the included requirements can be construed to require LME/MCOS to maintain same level of services for individuals who were paid with through single stream funding. Sets out further limitations.

Section 5.1

Amends Section 13.4 adding an effective date of October 1, 2015.

Section 5.2

Amends the lead-in language for Section 13.5 and adds an effective date of October 1, 2015. 

Section 5.2A

Makes a technical correction to the title of Section 14.1.

Section 5.2B

Amends Section 14.10A(d) replacing a reference to the Environmental Management Commission with the Marine Fisheries Commission in regards to adopting rules to amend 15A NCAC 03O .0503(g) (Scientific or Educational Activity Permit). 

Section 5.2C

Amends Section 14.24, deleted the word "Wetlands" from the section title and the provisions.

Section 5.4

Makes technical and clarifying changes to Section 14.30(a)(5) and 14.30(d)

Amends GS 143B-135.186 to provide that the Director of the Division of North Carolina Aquariums will make nominations for local advisory committees for NC Aquariums (previously, nominations came form the Director of the Office of Marine Affairs). 

Amends GS 143B-135.188 concerning fees and funds for NC Aquariums, adding clarifying language that the NC Aquarium Fund is to be used for the specified purposes with respect to the aquariums and piers operated by the Division of NC Aquariums. Adds clarifying language concerning the use and purposes of funds. Amends GS 143B-135.225 concerning the Museum of Natural Sciences fees and funds, making technical corrections. Amends Section 14.30(aa), making a technical correction. Amends Section 14.30(nnn1) and (nnn3), allowing positions in the Department of Environmental Quality to be transferred or eliminated (was, eliminated only). 

Amends Section 14.30 by adding a new subsection titled "Conforming Rules Changes", and adding language  directing the Codifier of Rules to make conforming rule changes as necessary to reflect transfers, name changes, recodifications, etc.

Section 5.5

Amends Section 14.11(g), which prohibits charging school groups fess for visiting specified attractions to add that the prohibition does not apply to a separate admission charge for a special program.

Section 5.6

Amends GS 113-202.1 to extend the duration of amendment to shellfish cultivation leases to authorize use of the water column from five to ten years.

Section 5.7

Adds a new section as follows. Requires $500,000 in nonrecurring funds for Shale Gas be provided to Fund Code 1735 instead of 1749. Requires the nonrecurring funding and recurring cuts to the Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Fund be made in Fund Code 1910 instead of 1990. Requires the Petroleum Violation Escrow Cash Balance transfer be from Fund Code 64327 instead of 64347. Prohibits a reduction of $260,359 in fiscal year 2015-16 to the Solid Waste Permitting Fees operating fees budget because of the delayed effective date in the implementation of the new fee schedule.

Section 5.8

Adds a new section requiring one-fourth of the funding for the position of Deputy General Counsel be offset with receipts and sets the FTE reduction at -0.26.

Section 6.2

Adds a new part as follows. Provides that the relocation of the State Capitol Police as a Section within the Highway Patrol does not affect the subject matter or territorial jurisdiction of those offices and does not entitle them to statutory increases.

Section 6.3

Makes clarifying changes to the Commission on Indigent Defense Services’ powers concerning distribution of funds appropriated under the relevant Article.

Section 7.1

Amends GS 58-36-75(a) to adjust the cost thresholds that distinguish accidents in the Safe Driver Incentive Plan for Car Insurance. Under the proposed thresholds, a "major accident" is an at-fault accident resulting in property damage of $3,085 (was, $3,000) or more; an "intermediate accident" is one that results in damage between $1,850 (was, $1,800) and $3,085; a "minor accident" is one with damage of $1,850 or less. This section becomes effective March 1, 2016. 

Section 7.2

Adds a new section requiring the position transferred from the Department of Administration to the Department of Military and Veterans Affairs be a specified Program Assistant IV, not a specified Administrative Officer II.

Section 7.3

Changes the effective date of Section 24.1 of the act, concerning the creation of the Department of Military and Veterans Affairs, from January 1, 2016, to July 1, 2015.

Amends GS 143B-1293 to expand on the fund that make up the NC Veterans Home Trust Fund to also include funds received by the Department of Military and Veterans Affairs. Adds that the provisions concerning the trust fund to not prohibit the use of special agency accounts by the Department of Military and Veterans Affairs.

Section 7.4

Makes Section 25.1 of the act, concerning stopping fraud and abuse of taxpayer dollars, to add that the requirement to submit a report applies to audits conducted or undertaken on or after October 1, 2015. Adds that the State Auditor or an internal auditor is not prohibited from submitting a report detailing deceptive acts or practices founds during an audit conducted before the effective date of the section.

Section 7.5

Amends GS 147-86.42, which includes the definitions for use in Article 6D, Sudan Divestment Act, by amending the definition of indirect holdings to include securities held through index funds, commingled funds, limited partnerships, derivative instruments, or any other similar investment instrument.

Amends GS 147-86.44 to delete the provision stating that subsection (c) and (d) of the statute do not apply to indirect holdings in actively managed investment funds, instead those provisions do not apply to indirect holdings.

Amends GS 147-69.1 by expanding on the State Treasurer’s options in investing the cash of the General Fund, Highway Fund and Highway Trust Fund, to allow repurchase agreements with respect to securities eligible for investment by the statute executed by a registered broker-dealer that is subject to the rules and regulations of the US Securities and Exchange Commission and is a member in good standing of the Financial Industry Regulatory Authority.

This section is effective when it becomes law.

Section 7.6

Adds a new section requiring the two positions in the Intervention Task Force of the Local Government Commission to assist local government entities as being at risk of financial failure to be funded with receipts.

Section 7.7

Repeals Section 22A.1 of SL 2014-100, which discontinued the use of automatic scoring and screening of applications for state government employment.

Section 8.1

Amends Section 29.1 to correct a reference to the State Transportation Improvement Program.

Section 8.2

Amends GS 20-88.03 (late fees for motor vehicle registration) by adding that the 15 day grace period does not apply to late fees assessed under the statute. Also specifies that nothing in the statute requires the Division of Motor Vehicles to assess a late fee if, on or before the date the registration expires, the owner surrenders the plate. These changes are effective July 1, 2016.

Section 9.1

Amends the allowed capital projects to correct the name of the Fort Fisher Aquarium Salt Water Well.

Section 9.2

Amends Section 31.8 of the act to provide that $250,000 of the funds appropriated for armory and facility development projects in 2015-16 must be used to provide funds (was, to provide a State match to federal funds) for planning of construction of a NC National Guard facility. Changes the location of the facility to require that it be within 10 miles of the specified location.

Section 9.3

Amends GS 143C-3-3, concerning the requirement of advanced planning conduct with funds other than General Fund appropriations when UNC makes a capital fund request for construction of a new facility or rehab an existing facility, to add that funds other than General Fund appropriations includes funds carried forward from one fiscal year to another.

Section 10.1

Makes a technical change to GS 105-122(b)(1).

Makes a technical change to GS 105-129.103(h).

Corrects a statutory reference in Section 32.14 of the act.

Make clarifying changes to the effective date of Section 29.34A.

Amends GS 105-524 (concerning the distribution of additional sales tax revenue for economic development, public education, and community colleges) to clarify references to various Articles and adds in references to SL 1967-1096. Adds that if after apply the allocation percentages to each taxing county, the resulting total of the amounts allocated is greater or less than the net proceeds to be distributed, the amount allocated must be proportionally adjusted. Amends the allocation of the monthly amount to the taxing counties by specifying revenue and calculations that are not included. Amends GS 105-469, GS 105-522, GS 105-523 by add that the references in the relevant provisions do not include the adjustments made under GS 105-524.

Makes technical corrections to GS 105-130.3C and GS 105-164.3.

Makes the repeal of GS 105-102.3 (privilege tax on banks) effective June 30 (was, July 1), 2016.

Section 10.2

Deletes proposed Section 32.14A and replaces it with the following. Requires the Revenue Laws Study Committee to study the calculation of the sales factor under GS 105-130.4(l) using market based sourcing. Requires corporate taxpayers that meet three specified conditions with respect to taxable year beginning 2014 to file an informational report with the Department of Revenue (Department). Requires the Department to publish guidelines for computing the sales factor based on market-based sourcing. Sets out provisions that the guidelines are to be based on. Sets out requirements for the informational reports. Sets the due date of the informational report at April 15, 2016. Requires a $5,000 penalty for failure to timely file the report.

Section 11.1

Unless otherwise indicated, this act is effective July 1, 2015.

Amendment #2

Adds a new section allowing the funds appropriated to the Mountain Area Health Education Center for 2015-17 to be used for psychiatry residencies in the Center's service area.