Bill Summary for S 559 (2023-2024)

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Summary date: 

Jun 27 2024

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 559 (Public) Filed Tuesday, April 4, 2023
AN ACT TO ENABLE THE BOARD OF DIRECTORS OF CERTAIN CHARTER SCHOOLS TO ELECT TO PARTICIPATE IN THE NORTH CAROLINA STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES; TO CREATE ADDITIONAL FLEXIBILITY FOR CHARTER SCHOOLS TO BECOME A PARTICIPATING EMPLOYING UNIT IN THE STATE HEALTH PLAN; TO MAKE CONFORMING AND EFFECTIVE DATE CHANGES TO PENDING LEGISLATION FOR THE NORTH CAROLINA FIREFIGHTERS' AND RESCUE SQUAD WORKERS' PENSION FUND; TO ADDRESS PARENTAL LEAVE FOR CHARTER SCHOOL EMPLOYEES; AND TO CLARIFY THE DEFINITION OF A HISTORICALLY UNDERUTILIZED BUSINESS AS IT RELATES TO AN EMPLOYEE STOCK OWNERSHIP PLAN.
Intro. by Krawiec, Ford.

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Bill summary

Conference report to the 2nd edition makes the following changes.

Adds the following new content and makes conforming changes to the act’s titles.

Amends GS 135-48.54, which requires a charter school’s board of directions to elect whether to become a participating employer in the State Health Plan (Plan), no later than two years after signing the written charter. Amends this provision to now set out different procedures under which the school may elect to participate in the Plan, depending on whether the election is made no later than two years from the signing of the written charter or at a time after two years from the date of the signing of the written charter. Provides that when the election is made no later than two years from the signing, then the charter school becomes a participating employing unit. Sets out a process under which the board of directors of the school gives written notice of the election and the resulting status of the school as a participating unit to the Plan, Charter Schools Review Board, and State Board of Education. For those elections made after two years from the signing, requires the school’s board of directors to file an application with the Plan’s Board of Trustees for participation in the Plan; sets out the conditions and procedure for application approval. Makes technical, clarifying, and conforming changes. Makes conforming changes to GS 135-1. Effective 30 days after the act becomes law.

Provides that if S319 (Insurance Rev/Online Auctions/Firefighters) becomes law, then the following changes are made, effective January 1, 2025. Amends GS 58-86-45 to increase the amount of the lump sum payments by firefighters or rescue squad workers for retroactive membership in the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund from $10 to $15 per month. Makes technical changes. Amends GS 58-86-55 to provide that a retired firefighter receiving a pension will receive $175 per month, effective January 1, 2025 (was, July 1, 2024).

Also makes the following changes if S 319 becomes law. Specifies that Sections 11.1, 11.2, 11.3 (as amended) of that act, and Section 3(a) of this act apply: (1) to membership contributions due to the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund (Pension Fund) on or after January 1, 2025 and that any membership contribution payments made to the Fund on or before March 31, 2025, for service in the 2024 calendar year shall will be in the amount of $10/month of service; (2) to pension benefit amounts payable from the Pension Fund due to a member or beneficiary on or after January 1, 2025; specifies that if a member or beneficiary becomes eligible to receive a pension benefit from the Pension Fund on or before December 31, 2024, but the pension benefit amount is paid from the Pension Fund on or after January 1, 2025, then the pension amount benefit due to the member or beneficiary shall be the amount applicable to the pension benefit amount that was effective for each respective month to which the benefit applies. Makes Section 11.1 through 11.3 of the act effective January 1, 2025, instead of July 1, 2024.

Amends GS 115C-218.90 to allow a charter school to require as a condition of a contract with an education management organization or charter management organization to employ and provide teachers, that paid parental leave be provided to those teachers. Makes conforming changes. Applies beginning with the 2024-25 school year.

Amends GS 143-128.4 by amending the definition of historically underutilized business to include an Employee Stock Ownership Plan (ESOP) company in which at least 51% of the plan participants (was, stock is owned by one or more persons who) are members of at least one of the specified groups. Adds that an ESOP company applying for certification as a historically underutilized business must provide an attestation that it meets the requirements along with documentation supporting the attestation. Effective July 1, 2024.