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

Part I.

Prohibit Certain Headlights/Airbags

Retains the provisions from the 2nd edition concerning headlights but makes the provisions effective December 1, 2014 (was, 2013).

Adds a section amending GS 20-4.01, adding and defining the terms counterfeit airbag and nonfunctional airbag. Amends GS 20-71.4 to make it unlawful to transfer a motor vehicle when the transferor is a motor vehicle dealer who has knowledge that a counterfeit or nonfunctional airbag has been installed. Applies to offenses committed on or after December 1, 2014.

Unclaimed Life Insurance Benefits (new)

Adds a new Part 7 to Article 58 of GS Chapter 58, creating the Unclaimed Life Insurance Benefits Act. Requires an insurer to perform a comparison of in-force policies, annuities, and account owners that are available electronically against a death master file (DMF) on a semiannual basis. If the records are not available electronically, the insurer must perform a comparison of the policies, annuities, and account owners against a DMF on a semiannual basis using the records most easily accessible by the insurer. The Commissioner of Insurance is allowed to exempt an insurer from the DMF comparisons if the insurer demonstrates that compliance would result in hardship. These requirements do not apply to policies or annuities for which the insurer has received premiums from outside the policy value or by check, bank draft, payroll deduction, or any other similar method of active payment within the 18 months immediately preceding the death master file comparison. Specifies four actions that must be taken when the insurer learns of the possible death of a person, including determining whether benefits may be due and providing the beneficiary with the appropriate forms or instructions to make a claim and notifying the beneficiary of the actions needed to submit a valid claim. The actions must be taken within 90 days and documented. If an insurer is unable to confirm the death following a DMF match, the insurer may determine that no further good faith efforts are required.Prohibits charging any beneficiary, or others entitled to benefits, any fees or costs associated with a DMF search or verification. Requires that benefits, accrued interest, and interest payable under GS 58-58-110 be first paid to the beneficiaries or account owners; if those individuals cannot be found, the benefits and associated interest escheat to the state as unclaimed property. Enacts new GS 58-58-400 to provide that a pattern of failures to meet the Part requirements may constitute an unfair claims settlement practice. 

Bail Bond Shield Amendment (new)

Amends GS 58-71-40(d1) to modify the requirements for the bail bond shield carried by licensed bail bondsmen and runners, to allow the design to be altered by stamping, inlaying, embossing, or engraving to accommodate the license number.

Repeal Unnecessary Utilities Provision (new)

Repeals GS 62-36.1 and GS 62-36A (both concerning natural gas planning).

Merchant Exemption from Locksmith Licensing (new)

Amends GS 7F-16 to exempt from the Locksmith Licensing Act a merchant, or retail or hardware store, when the merchant or store does not purport to be a locksmith and lawfully duplicates a key, including duplicating a transponder type key that requires programming (was, excluded duplicating a transponder type key from the exemption). 

Clarify Professional Engineer Exemption (new)

Amends GS 89C-25 to provide that GS Chapter 89C (engineering and land surveying) does not prevent (in addition to those items listed in the statute): (1) the practice of architecture, as defined in GS Chapter 83A, landscape architecture as defined in GS Chapter 89A, or contracting as defined in Articles 1, 2, 4, and 5 of GS Chapter 87; (2) engaging in engineering or land surveying as an employee or assistant under the responsible charge of a professional (deletes employees or assistants of a nonresident professional provided that the work may not include responsible charge of design or supervision; and (3) the engineering or surveying activities of a person as defined in GS 89C-3(5) who is engaged in manufacturing, processing, producing, or transmitting and delivering a product, and which activities are reasonably necessary and connected with the primary services performed by individuals regularly employed in the ordinary course of business by the person, provided that the activity is not a holding out or an offer of engineering or surveying services (deletes current language concerning the internal engineering or surveying activities of a person, firm, or corporation engaged in manufacturing, processing, or producing a product, including activities of public service corporations, public utility companies, authorities, state agencies, railroads, or membership cooperatives, or the installation and servicing of the product in the field, etc.). Specifies what is included in activities reasonably necessary and connected with the primary service and requires activities performed under this third category to be under the responsible charge of a licensed professional engineer or licensed professional surveyor when the safety of the public is directly involved. 

Amends GS 89C-19 to prohibit the state or its political subdivisions from engaging in engineering or land surveying involving public or private property where the safety of the public is directly involved without the project being under the direct supervision of a professional engineer or land surveyor.

Amends GS 143-64.31 to add that no work product or design may be solicited, submitted, or considered as part of the selection process under the Article; and no costs or fees, other than unit price information, may be solicited, submitted, or considered as part of the selection process under the Article. Allows examples of prior completed work to be solicited, submitted, and considered when determining demonstrated competence and qualification, and encourages discussion of concepts or approaches to the project.

Adjust the Utility Regulatory Fee (new)

Amends GS 62-302, Regulatory Fee, to reduce the fee imposed on retail revenues of local exchange companies that have elected to participate in the alternative forms of regulation found in GS 62-133.5(h) or GS 62-133.5(m).

Sets out definitions to be used in GS 62-302, including noncompetitive jurisdictional revenues, subsection (h) competitive jurisdictional revenues, and subsection (m) competitive jurisdictional revenues.

Provides that noncompetitive jurisdictional revenues are subject to a utility fee that is the greater of (i) a percentage rate of each public utility's noncompetitive jurisdictional revenues for each quarter or (ii) $6.25 each quarter.

Provides that competitive jurisdictional revenues, either subsection (h) or subsection (m) competitive jurisdictional revenues, will have a public utility regulatory fee that is a percentage rate established by the General Assembly for each fiscal year for revenues for each quarter.

Establishes that the percentage rate to be used to calculate the public utility fee for subsection (h) revenues will be set at 0.06 percent of revenues earned during each quarter beginning on July 1, 2015, and on July 1, 2016, it will change to 0.04 percent.

Establishes that the percentage rate to be used to calculate the public utility fee for subsection (m) revenues will be set at 0.05 percent of revenues earned during each quarter beginning on July 1, 2015, and on July 1, 2016, it will change to 0.02 percent.

Further provides that, for the 2015-16 and 2016-17 fiscal years, the percentage rate used for the public utility regulatory fee for noncompetitive jurisdictional revenues will be adjusted to reflect the decrease in fees collected by the above rates in order to ensure that the cost of operations of the Utilities Commission and staff are defrayed. Effective July 1, 2015.

Summary Ejectment Service of Process (new)

Amends GS 42-28 to add that after issuance of the summons in an eviction proceeding, the clerk must either return the summons to the plaintiff or forward the summons to the sheriff, depending on what the plaintiff chooses. Amends GS 42-29 to add that the term officer means either (1) a person over the age of 21 who is not a party to the action and is employed by the plaintiff to serve the summons and the complaint in summary ejectment or (2) the sheriff of the county where the premises is located.

Effective October 1, 2014.

Clarify effective date of definition of discharge of waste (new)

Amends Section 17 of SL 2012-187 to provide that Section 11 of the act (which amended the term discharge to provide that it does not include an emission which is a release into the outdoor atmosphere of air contaminants) is effective when the act became law and applies to contested cases filed or pending on or after the date that the act became law.

Clarify membership under insurance guaranty association act (new)

Amends GS 58-48-20 to add that the term covered claim includes all claims incurred against a workers' compensation group self-insurer that merged with a member insurer on or after January 1, 1997.

Amends GS 97-131 to add that the membership in the NC Self-Insurance Security Association of an individual self-insurer or group self-insurer must terminate for purposes of another members' insolvency or any other purpose upon the merger of the individual self-insurer or group self-insurer to a mutual insurance company or a stock insurance company on or after January 1, 1997.

Part II. (new)

Notify property owners of right-of-way transfers (new)

Amends GS 136-66.10 (dedication of right-of-way under local ordinances) to require local governments that require or accept right-of-way dedications in exchange for transferred density credits to notify the applicant and the property owner when the local government begins review of or negotiations for a right-of-way dedication and associated density credit transfer, whichever occurs first. Provides details for sending the notification and providing notification when the property owner is not the applicant. Applies to dedications occurring on or after October 1, 2014. 

DOT Condemnation/corridor map changes (new)

Amends GS 136-113 to provide that interest on the damages awarded a DOT condemnation is calculated from the date of the taking to the date the judgment is paid (was, to the date of the judgment). Applies to condemnation actions filed on or after July 1, 2014.

Amends GS 136-119 to require the court to award the owner of the condemned property costs, disbursements, and expenses, including attorneys' fees, if the final judgment exceeds the amount of the initial deposit by 25 percent or more. Limits attorneys' fees to one-third of the difference between the judgment award, plus interest, and the initial deposit. Applies to condemnation actions filed on or after July 1, 2014.

Amends GS 136-44.51 to prohibit an application for a building permit issuance or subdivision plat approval for a tract subject to a valid transportation corridor official map from being delayed for more than one year (was, three years) from the date of its original submittal. Effective July 1, 2014.

Notice to chronic violators (new)

Repeals GS 160A-200 (city annual notice to chronic violators of overgrown vegetation ordinance).

Amends GS 160A-200.1 (annual notice to chronic violators or public nuisance ordinance) to add that cities may also give notice to a chronic violator of the municipality's overgrown vegetation ordinance in accordance with this statute.

Allow for differential treatment of fraternities and sororities in zoning (new)

Amends GS 153A-340 (applying to counties) and GS 160A-381 (applying to cities) to allow a zoning or unified development ordinance to differentiate, with respect to fraternities and sororities, in terms of the regulations applicable to fraternities or sororities between those that are approved or recognized by a college or university and those that are not, as follows: (1) the ordinance must allow a fraternity or sorority suspended or not recognized at least two years to reestablish approval or recognition, (2) the ordinance must allow a fraternity or sorority seeking approval or recognition at least three years to establish approval or recognition, and (3) the ordinance must require that a property may not be occupied successively by a fraternity or sorority seeking to reestablish approval or recognition and one seeking approval or recognition, and vice versa, unless the property is occupied by a fraternity or sorority approved or recognized for at least 12 successive months between the two.

Repeal protest petitions (new)

Repeals GS 160A-385(a) (stating the General Assembly's finding that it is necessary and desirable to provide for the establishment of certain vested rights in order to ensure reasonable certainty, stability, and fairness in the land use planning process, secure the reasonable expectations of landowners, and foster cooperation between the public and private sectors in the area of land use planning).

Repeals GS 160A-386 (protest petition; form; requirements; time for filing).

Makes conforming changes to GS 122C-403.

Provides that the section also repeals any local act authority for submission, review, or action by any city upon any zoning protest petition, whether or not enacted as a provision in a municipal charter.

Repeal obsolete Department of Insurance statutes (new)

Repeals GS 58-2-170 (Annual statements by professional liability insurers; medical malpractice claim reports), GS 58-3-191 (Managed care reporting and disclosure requirements), GS 58-36-3(c) (requiring the Department of Insurance to report annually to the President Pro Tempore of the Senate and the Speaker of the House of Representatives on the effectiveness of SL 2001-389 in assuring the provision of insurance coverage to motorcyclists at fair and economical rates), GS 58-40-130(e) (concerning a report that was to be made by July 1, 1988), and GS 58-50-95 (The Commissioner shall report annually to the Joint Legislative Oversight Committee on Health and Human Services regarding the nature and appropriateness of reviews conducted under this Part). Makes conforming changes.

Post-Arrest photographic images not public (new)

Amends GS 15A-502 to add that a photo of a person charged with a misdemeanor or felony that is taken by a law enforcement officer or agency under the statue is confidential and exempt from disclosure as a public record. Allows the photo to be to be disclosed to the public if (1) the person is charged with a felony or (2) the officer or agency determines that release of the photo is reasonably necessary to secure the public's safety. 

Effective when the act becomes law and applies as to persons charged with a misdmeanor or felony on or after that date.

Improve administrative program monitoring at DPI (new)

Specifies three actions that must be taken by the Department of Public Instruction (DPI) to increase the efficiency of school transportation services.

Amends GS 115C-522 to require DPI, in consultation with the Department of Administration (DOA), to establish term contracts for those school bus replacement parts with statewide annual sales exceeding $100,000. Requires local boards of education to purchase replacement parts form these contracts unless the purchase price from noncertified sources is less than the costs under the state term contract and the replacement parts are the same or substantially similar. Effective January 1, 2015, and applies to purchases made on or after that date. 

Requires DPI to revise the state inspection process for county school bus maintenance operations by incorporating school bus inspection, maintenance, and utilization information from the school bus fleet management system to identify noncompliant county school bus maintenance facilities and improve its oversight of local school bus operations. Requires DPI to report the revised inspection process and implementation schedule to the Joint Legislative Education Oversight Committee by December 31, 2014.

Requires DPI to reduce the operational requirements of the Textbook Services program by eliminating specified positions. Effective June 30, 2014.

Requires DPI and DOA to develop a plan to reallocate unneeded textbook warehouse space to other state agencies. Requires the plan to be submitted to the Joint Legislative Education Oversight Committee and to the Fiscal Research Division by December 31, 2014.

Requires DPI to develop and implement a process for monitoring time and resources required for the services provided by these sections and collect and compile information during fiscal year 2014-15 from local school boards to measure the benefits the local boards receive from the services provided. Requires DPI to report its findings to the Joint Legislative Education Oversight Committee and to the Fiscal Research Division by September 1, 2015.

Requires DPI to develop model loss prevention and return-to-work programs to be adopted by the State Board of Education to be used by local school boards. Effective January 1, 2015, makes conforming changes to GS 115C-47 by giving local boards of education the duty of implementing loss prevention and return-to-work programs based on those models. Amends GS 115-12 to add to the Board of Education’s duties creating a performance management system. Amends GS 115C-21 to require the Superintendent of Public Instruction to report to the Joint Legislative Education Oversight Committee by December 31, 2014, and annually thereafter on the performance of each administrative support program in the performance management system. Enacts new GS 115C-23 requiring DPI to report to the Joint Legislative Education Oversight Committee by December 31, 2014, and annually thereafter on the performance of each strategic objective identified by the State Board of Education. Specifies items to be included in the report. Requires DPI to develop a performance management system for administrative support programs to include processes for identifying and monitoring 3 specified items. 

Compliance with building code inspection requirements (new)

Amends GS 153A-360 (county inspections of work in progress) to provide that the statute's provisions are subject to GS 153A-235(a) (which provides that a county may not adopt a local ordinance or resolution or any other policy that requires regular, routine inspections of buildings or structures constructed in compliance with the North Carolina Residential Code for One- and Two-Family Dwellings in addition to the specific inspections required by the North Carolina Building Code without first obtaining approval from the North Carolina Building Code Council).

Amends GS 160A-420 (city inspections of work in progress) to provide that the statute's provisions are subject to GS 160A-412(b) (a city may not adopt a local ordinance or resolution or any other policy that requires regular, routine inspections of buildings or structures constructed in compliance with the North Carolina Residential Code for One- and Two-Family Dwellings in addition to the specific inspections required by the North Carolina Building Code without first obtaining approval from the North Carolina Building Code Council). 

Ethics requirements for certain city officials (new)

Enacts new GS 160A-88 requiring all members of governing boards of cities and consolidated city-counties to complete a statement of economic interest as if those members were public servants. Prohibits all members of governing boards of cities and consolidated city-counties from mentioning or allowing another person to mention the member's public position in nongovernmental advertising that advances the private interest of the member or others. Prohibits a member from using or allowing the use of public funds for any advertisement or public service announcement in a newspaper, on the radio, on television, in magazines, or on billboards that contains that member's name, picture, or voice, except in the case of emergency, and only if the announcement is reasonably necessary to the member's official function; does not apply to fund-raising on behalf of and aired on public radio or public television. Prohibits a member from using or disclosing nonpublic information gained in the course of, or by reason of, the member's official responsibilities in a way that would affect a personal financial interest of the member or any other person. Applies only to cities and city-counties with a population of more than 75,000 according to the last federal decennial census. Effective October 1, 2014. The statement of interest must be filed on or before January 1, 2015.

Building code survey (new)

Requires the NC Building Code Council to study the authority given to local building inspectors in those counties and cities where building plans are reviewed and approved before the issuance of a building permit pursuant to specified statutes. Requires a report to the 2015 General Assembly.

Animal euthanasia requirements (new)

Amends GS 19A-24 to add that a certified euthanasia technician must correctly calculate chemical agent dosage based on the animal species, age, weight, and condition and record specified identifying information as well as the dosages for drugs administered and the amounts for drugs wasted. Specifies how an animal must be weighed when a certified euthanasia technician uses any chemical agent having instructions directing that the dosage be determined based on weight. If the dose must be adjusted from the recommended amount, requires recording the amount administered and the reasons for administering a different amount. Effective July 1, 2015.

BRAC related discussion and documents (new)

Amends GS 132-1.2 to add that nothing in the Chapter requires or authorizes a public agency or its subdivision to disclose information that reveals documents related to the federal process to determine closure or realignment of military installations until a final decision has been made.

Amends GS 143-318.11(a)(4) to provide that a public body may hold a closed session and exclude the public only when a closed session is required to discuss matters relating to military installation closure or realignment.

Applies to meetings held on or after October 1, 2014.

Part III. (new)

Autism health insurance coverage (new)

Enacts new GS 58-3-192 requiring health benefit plans to provide coverage for autism spectrum disorders for individuals 23 years of age and younger that may be subject to the same deductibles, co-payments, and coinsurance terms that apply to substantially all other covered medical services under the health benefit plan. Prohibits insurers from terminating coverage or refusing coverage to an individual solely because the individual is diagnosed with one of the autism spectrum disorders or has received treatment for autism spectrum disorders. Requires diagnosis of autism spectrum disorder before age 8 to qualify for the required coverage. Provides that there will be no limits on the number of visits an individual may make for treatment. Prohibits denying coverage because the treatments are habilitative or educational in nature. Directs that coverage under these provisions must not be construed as limiting benefits that are otherwise available to an individual under a health benefit plan. Allows for a maximum annual benefit of $36,000 for behavioral health treatment. Provides that if an individual is receiving treatment for an autism spectrum disorder, with the exception of inpatient services, a health benefit plan has the right to request a review of the treatment no more than once annually unless the insurer and the individual's licensed medical doctor or licensed psychologist agrees that a more frequent review is needed. Requires the insurer to pay any costs for the review. Includes applicable definitions in proposed GS 58-3-192. Provides that the statute does not apply to a non-grandfathered health plan in the individual and small group markets that are subject to the requirements to cover essential health benefits package. Provides that the statute is not to be construed as affecting any obligation to provide services to an individual under an individualized family service plan, an individualized education program, or an individualized service plan. Applies to insurance contracts issued, renewed, or amended on or after October 1, 2014.

Enacts new GS 58-3-305 requiring each health insurer that issues, sells, offers, or renews a health benefit plan in the state to submit a biennial report to the Commissioner of Insurance (Commissioner) on or before May 1 of each odd-numbered year. Specifies items to be included in the report Requires the Commissioner to consolidate the information in the reports and report specified information to the General Assembly no later than October 1 of each odd-numbered year. Requires the Commission to adopt rules implementing these requirements and allows adopting temporary rules to ensure that he reports are received by May 1, 2015.

Behavior analyst licensure (new)

Enacts new Article 43 of GS Chapter 90 to require the licensure of behavior analysts and assistant behavior analysts. Creates a seven-member NC Behavior Analysis Board (Board) with authority to determine licensure qualifications and fees; issue, deny, or suspend any license; conduct background checks; and discipline licensees. Requires the initial Board members to be selected on or before August 1, 2014. Establishes minimum qualifications for licensure and maximum licensure fees.  Provides for license renewal, temporary licensure, and reciprocity.

Enacts new GS 90-726.14 making it a Class 2 misdemeanor to practice behavior analysis without a license; each violation is a separate offense. Specifies nine conditions that must be met in order for a person to be exempt from the Article. Effective January 1, 2015.

Amends GS 90-270.4 to add that nothing in the Article is to be construed to prevent a behavior analyst or an assistant licensed under Article 43 from offering services within the scope of practice authorized by the Board. Effective January 1, 2015.

Pharmacy benefits management regulation (new)

Enacts new Article 56A, Pharmacy Benefits Management in GS Chapter 58. Prohibits a pharmacy benefits manger from setting a maximum allowable cost price if the prescription drug does not have three or more nationally available therapeutically equivalent drug substitutes. Requires a pharmacy benefits manager to remove a maximum allowable cost price for a prescription drug, or modify a maximum allowable cost price, as necessary for a cost of a prescription drug to remain consistent with changes in the national marketplace. Requires a review of the maximum allowable cost prices for removal or modification to be completed by the pharmacy benefits manager at least once every seven business days and any removal or modification to occur within seven business days. Specifies information that a pharmacy benefits manager must disclose to pharmacies with which it contracts. Requires a pharmacy benefits manager to provide an appeals procedure to reasonably allow a pharmacy to contest maximum allowable cost prices and sets out requirements for the appeals procedure. Sets out guidelines and restrictions on the disclosure of information. Prohibits a pharmacy benefit manager from taking actions that would restrict a covered individual's choice of pharmacy from which to receive prescription medications. Prohibits providing any incentive to a covered individual to use a particular pharmacy.

Effective January 1, 2015, and applies to contracts entered into, renewed, or amended on or after that date.

Limited food services at lodging facilities (new)

Amends GS 130A-247 to add that limited food service establishments includes lodging facilities serving only reheated food that has been pre-cooked. Amends GS 130A-148 to add lodging facilities that serve only reheated food that has been pre-cooked to those establishments that may be issued a limited food service establishment permit. Requires the Commission for Public Health to adopt rules to conform to these provisions.

Youth skin cancer prevention (new)

Amends GS 104E-9.1 to prohibit allowing a person under age 18 (was, 13 without a written prescription) from using tanning equipment. Effective July 1, 2014. 

Nursing home administrator act revision (new)

Amends GS 90-280 to remove the requirement that the exam for applicants for an administrator in training program and reciprocity endorsement be conducted by the  State Board of Examiners for Nursing Home Administrators.

ADA requirements for private pools (new)

Requires swimming pools to be accessible only to the extent required by the Americans with Disabilities Act and federal rules and regulations adopted under the act. Requires the Building Code Council to adopt a rule to amend Section 1109.14 of the 2013 NC State Building Code that is consistent with this requirement.

Report on SEEK (new)

Requires the Division of Child Development and Early Education to report to the Joint Legislative Oversight Committee on Health and Human Services and the 2015 General Assembly before the state implementation of the Subsidized Early Education for Kids System by March 15, 2015. Specifies items to be included in the report.

Exception to hospital authority conflict of interest (new)

Amends GS 131E-21 by adding that a commissioner or employee who is not involved in making or administering the contract may have an interest in the contract for materials or services for a hospital facility. Provides examples of what is or is not considered involvement in administering or making the contract.

Report on multiplicative auditing and monitoring of certain service providers (new)

Requires the Deputy Secretary of Behavioral Health and Developmental Disabilities Services to the Department of Health and Human Services to report, by December 1, 2014, to the Joint Legislative Oversight Committee on Health and Human Services on the status of multiplicative auditing and monitoring of all provider agencies under the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services who have been nationally accredited. Specifies items to be included in the report.

End sunset for facilities that use alternative electronic monitoring systems (new)

Amends Section 4 of SL 2009-490, as the title indicates.

State Medicaid recredentialing period (new)

Codifies Section 12H.7 of SL 2013-360 as GS 108C-9(e). Amends the provision to require that the fee be charged to all providers at recredentialing every five (was, three) years, effective July 1, 2017, and applying to all recredentialings due on or after that date.

Part IV. (new)

Adds a severability clause.

Unless otherwise provided, the act is effective when it becomes law.

Makes conforming title changes.