Conference report makes the following changes to the 4th edition. Deletes all content of the previous edition and replaces it with the following. Makes conforming changes to the act's titles.

Part I.

Section 1.1

Amends GS 18C-164 to require net revenues credited to the Education Lottery Fund to be appropriated in an amount equal to that appropriated from the Education Lottery Fund (was, from the Education Lottery Fund in the Current Operations and Capital Improvements Appropriations Act of 2017).

Part II.

Section 2.1

Amends GS 115C-47 to no longer require local boards of education to report all approved schedules of fees, charges and solicitations to the Superintendent of Public Instruction. Requires instead that the local board of education publish a schedule of approved fees, charges and solicitations on the local school administrative unit’s website by October 15 of each school year and within 30 days of any revision to the schedule. Applies beginning with the 2020-21 school year.

Section 2.2

Amends GS 115C-64.15 to now require the NC Education and Workforce Innovation Commission (Commission) to collaborate with the NC Career and Technical Education Foundation Inc. (Foundation) in developing and administering the Education and Workforce Innovation Program and the Career and Technical Education Grade Expansion Program (Programs). Directs the Foundation to serve as a grant administrator by providing assistance and support to grantees for initiating, expanding, improving, and promoting career and technical education initiatives. Also requires the Commission to consult with the Foundation in publishing the annual report on the Programs. Makes conforming changes to GS 115C-64.17 to require the Commission to consult with the Foundation in selecting diverse grant recipients of the Career and Technical Education Grade Expansion Program.

Section 2.3

Amends GS 115C-218.45 by expanding upon the categories of individuals who may be given enrollment priority by a charter school to also include siblings who apply for admission beginning in the same school year, such as when a sibling was not initially admitted due to grade level capacity. Also allows enrollment priority limited to no more than 15% of the schools enrollment, unless a waiver is granted, to be given to: (1) children of persons employed full time by the charter or children of persons working full time in the daily operation of the charter school, which includes children of those employed by an education management organization or charter management organization for the charter school (was, limited to children of the school’s full-time employees); and (2) children of the charter school’s board of directors. Applies beginning with the 2020-21 school year.

Section 2.4

Amends Section 7.25(a) of SL 2018-5 by increasing the number of school participating in the Schools That Lead Pilot Program from 60 to 75.

Section 2.5

Directs the State Board of Education (Board) to modify the State graduation requirements to include one required credit in arts education, to be completed any time in grades 6 through 12. Implementation begins with students entering the sixth grade in 2022. Requires the Board to include an exemption from the arts education requirement for students who transfer to a North Carolina public school beginning in the ninth grade or later if adhering to the requirement would result in a student being unable to graduate with the graduation class to which the student was assigned when transferring to North Carolina's public school system. Further directs the State Board of Education to (1) establish procedures and a timeline for a phased-in implementation of the new arts requirement; (2) establish the minimum criteria to meet the arts requirement; and (3) report to the Joint Legislative Education Oversight Committee, by December 15, 2022, on the statewide implementation of the three interdependent components of comprehensive arts education (arts education, arts integration, and arts exposure) and this new graduation requirement.

Section 2.6

Effective June 30, 2021, repeals the following laws related to the pilot program established to develop advanced teaching roles and organizational models that link teacher performance and professional growth to salary increases in selected local school administrative units for classroom teachers: Section 8.7 of SL 2016-94; Section 7.11(a) of SL 2017-57; Section 7.15(a) and (b) of SL 2017-57; Section 7.9 of SL 2018-5, and Section 2.6 of SL 2018-97.

Instead enacts GS 115C-311 with substantively similar provisions to the laws repealed. Directs the State Board of Education (State Board) to develop advanced teaching roles and organizational models that link teacher performance and professional growth to salary increases for classroom teachers in selected local school administrative units. Defines classroom teacher as a teacher who works in the classroom providing instruction at least 70% of the instructional day and who is not instructional support personnel. Details four purposes of the program, borrowing the identical language of Section 8.7 of SL 2016-94, as repealed. Requires the State Board, by September 15, 2020, and annually thereafter, to issue a request for proposal (RFP) for the program, and requires local boards to submit their proposals by October 15. Details information the RFP must require of proposals, borrowing much of the substantive requirements from Section 8.7 of SL 2016-94, as repealed, including descriptions of the program structure, descriptions of the advanced teaching roles and minimum qualifications, specified job responsibilities, notification requirements for local administrative units to inform employees and the public, the process for voluntary relinquishment of an advanced teaching role, salary supplement information, the implementation plan, plans for long-term financial sustainability, and a description of possible partnerships with local programs and institutions.

Requires the State Board to review the proposals and select local school units to participate in the program by December 15, 2020, and annually thereafter. Details criteria for the State Board's review and selection, to include the prioritization of available funds to a specified number of units with an average daily membership (ADM) from the previous year of 4,000 or fewer students; 4,001 and 20,000 students; and more than 20,001 students. Requires approval of a proposal of any unit which is participating in an approved advanced teaching roles program pursuant to Section 8.7 of SL 2016-84 in the 2020-21 school year and whose application is not inconsistent with the statute. Requires all selected units to meet minimum criteria established by the State Board consistent with the statute. Designates selected units as Advanced Teaching Roles units, and grants class size flexibility pursuant to subsection (i) of the statute to such units. Allows selected units to exceed the maximum class size requirements for grades K-3 subject to approval of the State Board.

Authorizes material revisions to a plan submitted by an Advanced Teaching Roles unit to the State Board only upon approval of the State Board.

Requires initially selected units to implement their approved plans beginning with the 2021-22 school year. Requires the State Board to review the unit for compliance every five years after the unit begins implementation. Grants the State Board authority to renew or terminate the plan and the unit's designation after its review and in its discretion. Requires the unit to provide any information or access requested by the State Board or a State Board-selected independent research organization throughout the program.

Provides that funds awarded to units are subject to availability and awarded for a term of up to three years at the discretion of the State Board. Limits eligibility to receipt of funding to one term. Details the restricted use of the funds, including use for the development of advanced teaching role plans, the development of specified professional development courses for teachers, transition costs associated with designing and implementing advanced teaching role models, and the development of the design and implementation of specified compensation plans.

Provides for the State Board to evaluate the program against six specified goals, at a minimum, through a contracted independent research organization during the first two years of the program and report on October 15, 2021, and October 15, 2022. Thereafter, requires the State Board to complete the program evaluation and provide the report annually, beginning October 15, 2023. Specifies NCGA offices and committees to which the State Board must provide the reports. 

Allows the State Board to authorize local boards participating in the program to use any available State funds to provide salary supplements to classroom teachers in an advanced teaching role so long as the unit complies with specified policies.

Makes conforming changes to GS 115C-105.25.

Part III.

Section 3.1

Amends GS 116-11 by requiring the UNC Board of Governors (BOG) to report annually by February 1 to the specified NCGA committees and division on the actions and adjustments necessary to its budgetary policies, regulations and standards resulting from the Current Operations Appropriations Act for the administration and operation of the University of North Carolina and the distribution of State and federal funds to constituent institutions. Sets out 10 items that must be included in the report for each constituent institution.

Section 3.2

Requires the UNC System Office, in collaboration with the North Carolina Community College System through the Military Credit Advisory Council, to create a searchable database of military credit equivalencies.

Part III-A.

Section 3A.1

Amends GS 116-281, expanding the eligibility requirements for need-based scholarships for students attending private institutions of higher education to now include students meeting the existing qualifications that are: (1) dependent relatives of a veteran who is abiding in the State while sharing an abode with the veteran and provide the eligible postsecondary institution a letter of intent of the dependent relative to establish North Carolina residency or (2) dependent relatives of an active duty member of the Armed Forces who is abiding in the State incident to active military duty while sharing an abode with the active duty member. Applies beginning with the award of scholarships for the 2021-22 academic year. 

Part IV.

Part IV-A.

Section 4A.1

Authorizes the Secretary of Health and Human Services to waive the 15% cap on the number of Special Assistance in-home payments. Waiver authorization expires June 30, 2021.

Part IV-B.

Section 4B.1

Eliminates certain reporting requirements by the Department of Health and Human Services.

Section 4B.2

Amends Section 3.33 of SL 2002-4, if H1023 becomes law, to allow the money allocated as a grant to the NC MedAssist to also be used for other costs allowed pursuant to federal guidelines.

Part IV-C.

Section 4C.1

Amends GS 143B-168.12(d) amending the NCGA recipients of the report from the North Carolina Partnership for Children, Inc.

Part IV-D.

Section 4D.1

Amends Article 2 of GS Chapter 108A by enacting a new GS 108A-54.3A establishing Medicaid coverage annual income levels for families; children; pregnant women; individuals who are aged, blind, disabled, or medically needy; children in foster care or adopted; and other specified categories of individuals and certain eligible services for specified categories of individuals. Annual income levels and limitations on certain categories of covered services specified in the act.

Section 4D.2

Directs the Department of Health and Human Services to issue Medicaid identification cards to recipients on an annual basis. Requires the Department to adopt rules to implement the requirements of the act. Requires Department to report by February 1, 2021 to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice confirming adoption of rules.

Section 4D.3

Authorizes the Department of Health and Human Services, Division of Health Benefits to implement volume purchase plans, single source procurement, or other contracting processes to improve cost containment for services, medical equipment, supplies, and appliances.

Section 4D.4

Effective until coverage under tailored plans described under GS 108D-60 begins, requires the Department of Health and Human Services to ensure that local management entities/managed care organizations (LME/MCOs) utilize out-of-network agreements between a single provider of behavioral health or intellectual and developmental disability (IDD) services and the LME/MCO to ensure access to care. Requires these agreements to contain standardized elements developed in consultation with all LME/MCOs, reduce administrative burden on providers of behavioral health and IDD services, and comply with all requirements of State and federal laws. Sets criteria for when LME/MCOs must use out-of-network agreements in lieu of comprehensive provider contracts. 

Prohibits an LME/MCO from restricting its number of out-of-network agreements to provide inpatient hospitalization services unless the services could be provided by a provider in the LME/MCO's closed provider network and the out-of-network provider is unwilling to enter into a network agreement.

Prohibits an LME/MCO from restricting its number of out-of-network agreements for other behavioral health and IDD services to foster children and "independent foster care adolescents," ages 18, 19, and 20, if the person is already receiving such services from such provider, though the services could be provided by a provider in the LME/MCO's closed provider network.

Considers any provider enrolled in the North Carolina Medicaid program that is providing services under an out-of-network agreement as a network provider for purposes of GS Chapter 108D so far as it relates to enrollee grievances and appeals for those services.

Section 4D.5

Requires LME/MCOs to transfer $18,028,217 to the Department of Health and Human Services, Division of Health Benefits in the 2020-2021 fiscal year. Specifies the amount of funding to be transferred by each LME/MCO. Authorizes the Division to reallocate transfer amounts if a county disengages from LME/MCOs. Requires the Division to reduce the transfer amount on a pro rata basis if additional capitation payments are not made to LME/MCOs.

Part IV-E.

Section 4E.1

Requires the Department of Health and Human Services to report by December 1, 2020 and 2021 to the Joint Legislative Oversight Committee on Health and Human Service and the Fiscal Research Division on utilization of local inpatient psychiatric beds and initiatives to reduce State psychiatric hospital use. Specifies information to be reported.

Section 4E.2

Requires the Department of Health and Human Services Division of Mental Health, Development Disabilities, and Substance Abuse Services to report annually until 2026 on utilization of inpatient alcohol and substance abuse treatment services. Specifies information to be reported.

Part IV-F.

Section 4F.1

Amends GS 7B-1402 to add the Director of the Juvenile Justice Section of the Division of Adult Correction and Juvenile Justice to the membership of the North Carolina Child Fatality Task Force. Requires appointing authorities to use best efforts to select Task Force members with sufficient knowledge and experience to effectively contribute to the work of the Task Force and reflect geographical, political, gender, and racial diversity of the State. Makes technical changes. This section effective August 1, 2020.

Part IV-G.

Section 4G.1

Amends GS 131D-10.9B(a)(3) modifying the definition of Permanency Training Services to include services for children in the legal custody of county departments of social services and training for caregivers and family members supporting such children.

Section 4G.2

Requires the Foster Care Transitional Living Initiative Fund to continue to fund transitional living services for foster care youth, including the Youth Villages Transitional Living Model demonstration project. Directs the Fund to support other strategies including transitional living services, public-private partnerships, impact measurement and evaluation, and evidence-based processes. 

Part V.

Section 5.1

Amends GS 19A-62 by changing the NCGA committee that is to receive the report on revenues and expenditures of the Spay/Neuter Account.

Amends GS 19A-69 Amends GS 19A-62 by changing the NCGA committee that is to receive the report on revenues and expenditures of the Animal Shelter Support Fund.

Amends GS 106-744 by changing the NCGA recipients of the report on the activities of the Agricultural Development and Farmland Preservation Trust Fund Advisory Committee. Make an additional clarifying change.

Amends GS 106-747 by changing the NCGA recipients of the report on the North Carolina Sentinel Landscape Committee’s activities.

Amends GS 106-755.1 by changing the NCGA recipients of the report on the activities of the North Carolina Wine and Grape Growers Council.

Amends GS 106-887 by changing the NCGA recipients of the report on management activities at DuPont State Recreational Forest.

Amends GS 106-911 by changing the NCGA recipients of the report on wildfires.

Amends GS 106-1029 by changing the NCGA recipients of the reports from the Commission of Agriculture on the estimated total assessment that will be collectible in the next budget period and on the number of acres reforested, type of owners assisted, geographic distribution of funds, the amount of funds encumbered and other matters.

Codifies Section 11.1 of SL 2012-142 as GS 106-915 and amends GS 106-915 by changing the name of the Division to the Division of Adult Correction and Juvenile Justice. Requires that priority be given to the B.R.I.D.G.E. Youthful Offenders Program (Program) when assigning youthful offenders from the Foothills Correctional Institution (was, the Western Youth Institution) to work programs. Changes the NCGA recipients of the Program’s annual report.

Codifies Section 13.7(b) of SL 2013-360 as GS 106-590 and amends GS 106-590 by making clarifying changes and changing the NCGA recipient of the NC Agricultural Foundation, Inc.’s report on prior State fiscal year program activities, objectives, and accomplishment and prior fiscal year expenditures and fund sources.

Section 5.2

States the NCGA’s intent to consolidate all fund balances related to the Agricultural Development and Farmland Preservation Trust Fund within the Land Preservation and Trust Investment Fund for 2021-22 and to: (1) direct the Office of State Budget and Management to close the Farmland Preservation Special Fund and (2) redirect the current transfer from the Agriculture General Fund from the Farmland Preservation Special Fund to the Land Preservation and Trust Investment Fund.

Part VI.

Section 6.1

Amends GS 143B-434.01 by amending the NCGA recipients of annual updates and the Comprehensive Strategic Economic Development Plan.

Section 6.2

Adds new Article 74A, Golden LEAF Foundation to GS Chapter 143, consisting of specified sections from SL 1999-2, as amended. Repeals Section 4 of SL 1999-2 (specifying that the nonprofit corporation's right to receive funds under the act was contingent upon the filing of articles of incorporation that complied with the act). Amends the provisions of the new Article to more specifically refer to the Golden LEAF Foundation instead of to an unnamed nonprofit corporation to receive and distribute a portion of funding received from the 1998 Master Settlement Agreement with cigarette manufacturers. Amends the requirements of Golden LEAF’s report on its program and activities to: (1) change the NCGA report recipients, (2) change the due date of the report from March 1 to September 15, and (2) expand upon items that must be included in the report. Changes the NCGA recipients of Golden LEAF’s itemized report of its administrative expenses, which is now due by September 15, and requires that a copy of its annual audited financial statement be provided within 30 days of having received an audit report and that a copy of its annual federal income tax returns be reported within 30 days of filing. Changes the NCGA recipients of NC LEAF’s expenditures or distributions in furtherance of the Foundation’s public charitable purposes. Makes additional clarifying and technical changes and makes language gender neutral.

Section 6.3

Requires the North Carolina Biotechnology Center, High Point Market Authority, and RTI International to do the following for each year that State funds are expended: (1) report annually by September 1, and more frequently as requested, to the specified NCGA committees and division on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources; and (2) provide to the specified NCGA committees and division a copy of the entity's annual audited financial statement within 30 days of issuance.

Part VII.

Section 7.1

Amends GS 130A-291.1 to make a septage management program permit application and annual fee due by December 15 (was, January 1). Requires a notice of the annual fee to be mailed prior to October 1 (was, November 1). Makes conforming and clarifying changes.

Section 7.2

Changes the annual reporting deadline for the Department of Environmental Quality (DEQ) to report on the status of solid waste management efforts, as set out in GS 130A-309.06, from January 15 to April 15. Adds to the report's required content the use of funds for Superfund cleanups and inactive hazardous site cleanups. Changes the date by which DEQ must annually report to legislators on solid waste management pursuant to GS 130A-310.10 from October 1 to April 15. Makes conforming changes to specified GS Chapter 130A statutes and Section 15.6 of SL 1999-237. 

Section 7.3

Adds the Riparian Buffer Restoration Fund to the special funds enumerated in GS 147-69.2(a) of which the State Treasurer is required to make investments with any cash in excess of the amount to meet the current needs and demands of the funds. Further amends GS 147-69.2, adding that investments made by the Treasurer from funds of the Ecosystem Restoration Fund and the Riparian Buffer Restoration Fund remain the funds of the Ecosystem Restoration Fund and the Riparian Buffer Restoration Fund, respectively, with interest or other investment income earned on the deposited funds prorated and credited to each respective fund as applicable. Makes conforming changes.

Section 7.4

Recodifies GS 113A-235(a) as GS 113A-235(a1) and GS 113A-232(c) as GS 113A-235(a).

Amends GS 113A-232 as follows. Expands upon the purpose of the Conservation Grant Fund (Fund) to also include stewarding properties held by deed or conservation easement by the State. Refers to funds instead of monies received by the Fund. Specifies that conservation properties, as described in GS 113A-235, are eligible to receive grants. Expands upon the purposes for which revenue in the Fund may be used, and also allows investment income generated by the Fund to be used for those same purposes, to now include expenses related to grants, contracts and agreements, including 10 specified purposes some of which were included in GS 113A-233. Make a conforming repeal of GS 113A-233. Prohibits the principal of an endowment account from being used to purchase real property or an interest in real property.

Amends GS 113A-234 by making a clarifying change.

Amends GS 113A-235 by amending the conditions that must be met in order for real property or an interest in real property to be the subject of eligible for a grant as a conservation property as follows. Expands upon the second condition to also include property that is previously restored, or a high-quality preservation. Expands upon the third condition to also include property that is useful for watershed improvement. Expands upon the final condition to also include land that is purchased on behalf of, or assigned in perpetuity to and accepted by the State, local government, or a body that is organized to receive and administer lands for conservation purposes and qualified to receive charitable contributions. Adds that the Department of Environmental Quality may acquire conservation properties and easements by purchase, gift, or assignment. Makes additional clarifying changes.

Part VIII.

Section 8.1

Amends GS 143B-50.1, as amended, to designate the Director of the Division of Parks and Recreation as the State Liaison officer with respect to funding through the federal Land and Water Conservation fund or any successor fund (was, the Director had the authority and responsibility to accept and administer funding through the Fund or any successor fund).

Section 8.2

Enacts new GS 143B-53.10 to require the Department of Natural and Cultural Resources to report annually by October 15 to the specified NCGA committee on fees charged in the previous fiscal year at all historical sites, museums, aquariums, and State parks and at the NC Zoo and U.S.S. North Carolina Battleship. Specifies items that must be include on the report. Makes conforming deletions in GS 121-7.3 and GS 143B-71 by removing similar reporting requirements. Makes additional technical changes to GS 143B-71.

Section 8.3

Amends GS 143B-135.272 to require that fees collected under the statute (fees for responding to inquiries requiring customized environmental review services or the costs associated with developing, improving, or maintaining technology that supports an online interface for external users to access Natural Heritage Program data, and fees for any activity authorized under GS 143B-135.234(10), including an inventory of natural areas conducted under the Natural Heritage Program, conservation and protection planning, and informational programs for owners of natural areas) be deposited in the special fund (was, in the Clean Water Management Trust Fund) to support the Natural Heritage Program.

Enacts new GS 143B-135.273 transferring to the Department of Natural and Cultural Resources the duties and responsibilities related to stewardship and oversight of properties and interests for which tax credits were granted under the Conservation Tax Credit program for tax years beginning before January 1, 2014, from the Department of Environmental Quality or its predecessors. Requires these duties and responsibilities to be exercised through the Natural Heritage Program.

Section 8.4

Recodifies GS 113A-240(a) and (b) as GS 143B-135.230(a) and (c). Amends GS 143B-135.230 (a) to state the NCGA’s intent to also support and accelerate the State’s programs of farmland and open space preservation and coordination.

Repeals Article 17 of GS Chapter 113A, Conservation, Farmland, And Open Space Protection And Coordination.

Section 8.5

Requires the Department of Natural and Cultural Resources to study and report on the marketing of the NC Zoo, NC Aquariums, and the NC State Museum of Natural Sciences. Specifies assessments that must be made and information that must be provided for the 2018-19 and 2019-20 fiscal years. Requires a report to the specified NCGA committee and division by October 15, 2020.

Part IX.

Section 9.1

Amends GS 126-5 to exclude employees of the Outdoor Heritage Advisory Council from GS Chapter 126, NC Human Resource Act (except Articles 6, Equal Employment and Compensation Opportunity; Assisting in Obtaining State Employment, and Article 7, The Privacy of State Employee Personnel Records).

Section 9.2

Amends GS 143-250 by changing the NCGA recipient of the report on the expenditures from the Wildlife Resources Fund. Makes additional clarifying changes.

Section 9.3

Requires the Wildlife Resources Commission and the North Carolina Forest Service to coordinate with the US Forest Service on a plan to optimize habitats to reverse declines in wildlife populations on State lands managed by the NC Forest Service and federal lands in the State managed by the US Forest Service. Requires a report on the plan to the specified NCGA committee by July 1, 2021.

Part X.

Section 10.1

Repeals Section 4(c) of SL 2019-158, which amended GS 15A-151.5 to include expunction records of certain offenses committed by human trafficking victims among the confidential files that the AOC must make electronically available to prosecutors if expunged after July 1, 2018, effective December 1, 2019, and applicable to petitions filed on or after that date. Instead, amends GS 15A-151.5 to enact an identical provision, effective retroactively to December 1, 2019.

Section 10.2

Requires consent of the Conference of District Attorneys (CDA) for any transfer of funds from the identified District Attorney fund code for the 2020-21 fiscal year.

Directs the UNC School of Government (SOG) to study the feasibility and cost of creating an Office of Prosecutorial Services (Office). Requires consultation with the CDA, AOC, the Office of Indigent Defense Services, and other relevant stakeholders. Requires a comparison of the State's judicial branch structure to that of other states concerning the organizational placement of prosecutorial services and to also determine the resources and costs of making the Office a viable independent agency. Requires SOG to report to the specified NCGA committees by April 1, 2021.

Part XI.

Section 11.1

Amends GS 17C-20(5) adding to the definition of an eligible county a county designated as a development tier one area pursuant to GS 143B-437. This section is effective when the act becomes law and applies to program recipients selected on or after that date.

Part XII.

Section 12.1

Amends Article 3 of Chapter 148 by enacting a new GS 148-32.2 authorizing the State Construction Office to utilize inmates for repair and renovation of State-owned facilities through the Inmate Construction Program. Prioritizes Department of Public Safety construction projects. Requires state agencies utilizing the Inmate Construction Program to reimburse the Division of Adult Correction for the cost of transportation, custody, and wages for inmate crews.

Section 12.2

Prohibits the Office of State Budget and Management from transferring positions, personnel, or funds from the Department of Public Safety to any other state agency during the 2020-2021 fiscal year unless the transfer was included in the base budget. Exempts consolidation of information technology positions pursuant to GS 143B-1325.

Section 12.3

Amends Section 3.3(54) of SL 2020-4, if H1023 becomes law, to allocate the funds for Caitlyn's Courage to the Department of Public Safety instead of the Administrative Office of the Courts. Makes conforming changes.

Section 12.4

Amends GS 143B-1406 to allow a PSAP (public safety answering point) to use a distribution it receives from the 911 Fund to also be used for cost incurred by the city or county operating a PSAP to comply with the terms of an intergovernmental support agreement, if: (1) the city, county, or both, have an intergovernmental support agreement with a major military installation that operates a PSAP; (2) the agreement allows the parties to serve as a back-up PSAP for each other's 911 system; and (3) the costs aid the PSAP operated by the city or county in establishing and maintaining the maximum amount of next generation 911 system compatibility with the PSAP operated by the major military installation. Adds that if a PSAP is a party to an intergovernmental support agreement which includes a PSAP operated by a major military installation, the 911 Board must treat the installation's population as part of the PSAP's population and treat the agreement as an interlocal agreement the specified provision of the statute for purposes of funding any city or county that is a party to the intergovernmental support agreement under the statute's funding formula. Applies to distributions for the 2020-21 and subsequent fiscal years.

Section 12.5

Amends Section 5.7(a) of SL 2018-136 to by removing the limit on the number of new three-year time-limited positions that can be created in the Office of Recovery and Resiliency (was, capped at 30).

Part XIII.

Section 13.1

Amends GS 143-52.1(e) by modifying the State Procurement Officer’s monthly report of contract awards to apply to contracts greater than the benchmark for delegated authority for state agencies established by the Division of Purchase and Contract pursuant to GS 143-53.1 (was, all contracts over $25,000). Amends GS 143-53(a) to make identical change for Division of Purchase and Contract review of bid protests and requests for waiver of competition approval. Amends GS 143-53.1(a) limiting the delegated procurement benchmark to no greater than $100,000 and exempts UNC institutions and community colleges from this limit. Amends GS 143-57 to make conforming change to reporting requirement for emergency purchases. This section is effective when the act becomes law and applies to contracts entered into on or after that date.

Section 13.2

Requires the Department of Information to report by October 1, 2020 to the Joint Legislative Oversight Committees on General Government and Information Technology on updates to the State’s E-Procurement System and specifies information to be reported.

Part XIV.

Section 14.1

Requires the Office of State Budget and Management to report by January 15, 2021 to the Joint Legislative Oversight Committees on General Government and Health and Human Services and the Fiscal Research Division a plan to conduct a cost-benefit analysis of all Department of Health and Human Services programs funded with state funds as part of the Results First project.

Part XV.

Section 15

Requires receipts generated by overpayments to vendors due to pricing errors, neglected rebates, miscalculated freight charges, unclaimed refunds, taxes paid in error, and related payment errors be deposited in a Special Reserve Account pursuant to GS 147-86.22(c). Authorizes the Office of State Controller to use $250,000 in the Account for data processing, debt collection, or e-commerce costs. Requires the State Controller to report on funds deposited into and disbursed from the Account.

Part XVI.

Section 16.1

Amends GS 143-293 authorizing the Industrial Commission to send decisions and orders by electronic mail. Makes technical and conforming changes. This section is effective July 1, 2020 and applies to all decisions and orders sent on or after that date.

Part XVII.

Section 17.1

Amends GS 143B-1217 by allowing funds appropriated to the Military Presence Stabilization Fund (Fund) to be used for the eight specified purposes, including administrative expenses and reimbursement for members of the North Carolina Military Affairs Commission, federal advocacy and lobbying support, and funding a position at the NC Economic Development Center. Requires the Military Affairs Commission to report to the specified NCGA committee annually by February 15 on expenditures from the Fund.

Requires the Department of Military and Veterans Affairs to pay expenses authorized by this section and approved by the North Carolina Military Affairs Commission within 30 days of receiving a request. Requires payment on a contract or grant awarded by the Commission to be made no later than the date payment is due according to the terms of the contract or grant, and does not require the Commission to request that the Department make the contract or grant payment. Allows the chair to authorize a member of the Commission's Executive Steering Group or another representative to make a request for payment. Sets out requirements for acknowledging a request for payment and for providing proof of payment.

Section 17.2

Amends GS 143B-1220 by removing the Veterans’ Affairs Commission’s duty to promulgate rules on the awarding of the NC Services Medal and deletes related provisions.

Section 17.3

Amends GS 143B-1225 by removing outdated language.

Section 17.4

Establishes the North Carolina Veterans Cemeteries Trust Fund (Fund), within the Department of Military and Veterans Affairs, consisting of (1) all interest and investment earnings received on monies in the Fund; and (2) any other funds, as directed by the General Assembly. Allows the funds in the Fund to accumulate until they have generated sufficient interest earnings to maintain the State's veterans' cemeteries once they have reached full capacity. Prohibits the principal from being spent and prohibits the interest earnings in the Fund from being used to open new veterans' cemeteries.

Part XVIII.

Section 18.1

Amends GS 147-64.6 by adding to the Auditor’s duties examining and making findings of act as to whether state agencies are adhering to statutory requirements that include conditions precedent, classifications, and similar eligibility or qualifying standards to assure that statutory intent is carried out while the requirements are in effect. Makes the Auditor responsible for verification audits for compliance with statutory requirements, with or without advance notice to the organization or State agency being audited, which may be initiated at the discretion of the Auditor or as requested by the Governor or NCGA. Adds that the Auditor may examine the accounts and records of any organization or State agency relating to a verification audit for compliance with a statutory condition precedent, classification, or other similar eligibility or qualifying standard.

Part XIX.

Section 19.1

Amends GS 66-58.12 to require the fee charged by an agency to cover its costs of permitting a person to complete a transaction through the world wide web or other means of electronic access be approved by the State Chief Information Office (was, by the Office of State Budget and Management, in consultation with the State Chief Information Officer and the Joint Legislative Commission on Governmental Operations). No longer requires consulting with the Joint Legislative Oversight Committee on Information Technology when expending the funds from those fees. Adds the requirement that the State Chief Information Officer report any fees imposed under the statute and expenditures for e-commerce initiatives and projects to the specified NCGA committees.

Amends GS 147-86.22 to no longer require a state agency to consult with the Joint Legislative Commission on Governmental Operations before implementing any program to accept payment under the policies allowing accounts receivable to be payable by electronic payment and before authorizing fees associated with electronic payment to be paid out of the General Fund and Highway Fund.

Section 19.2

Amends GS 143B-1350 by adding that the requirements of competitive bidding do not apply in the procurement of cybersecurity and infrastructure security products, consistent with Best Value procurement principles.

Section 19.3

Amends Section 6A.4 of SL 2011-145, as amended, to transfer the specified administration and reporting duties of the Office of the State Controller concerning the Criminal Justice Law Enforcement Automated Data Services (CJLEADS) to the State Chief Information Office (State CIO). Makes conforming changes.

Part XX.

Section 20.1

Requires, until otherwise provided by the NCGA, that the Office of State Budget and Management (OSBM) in conjunction with State agencies, report on the use of lapsed salary funds at the end of each fiscal year. Requires state agencies to report to the OSBM on the use of lapsed salary, including specified information. Requires OSBM  to report annually by October 1 on the use of lapsed salary funds to the specified NCGA committees and division.

Part XXI.

Section 21.1

Requires the North Carolina Forest Service to rename the Visitor and Interpretive Center at Mountain Island Educational State Forest as, "The Laura Shidal Visitor and Interpretive Center at Mountain Island Educational State Forest."

Part XXII.

Section 22.1

Provides that except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium.

Section 22.2

Provides for the effect of the headings.

Section 22.3

Includes a severability clause.

Section 22.4

Effective July 1, 2020, except as otherwise provided. 

House committee substitute to the 3rd edition makes the following changes.

Part I.

Amends new Article 2, Rural Health Care Stabilization Program, to GS Chapter 131A, changing the maturity for loans awarded under the Program to not exceed 20 years (was, not to exceed ten years, with a one-time option to extend the loan for another ten years).

Part II.

Restricts the levy of the additional 0.25% sales and use tax allowed under the provisions of Part II until on or after October 1, 2020, if the levy results in a 2.5% county sales and use tax rate.

 

Senate committee substitute to the 1st edition makes the following changes.

Amends new Article 2, Rural Health Care Stabilization Program, to GS Chapter 131A as follows. Eliminates eligible applicant from the Article's defined terms and makes changes throughout the Article to no longer reference the term. Also eliminates nonprofit agency from the defined terms. Now includes in the defined terms loan, an obligation to pay interest in accordance with the loan agreement. Makes further clarifying and conforming changes to the defined terms. Concerning the administration of the Rural Health Care Stabilization Program (Program), no longer requires UNC Health Care to collaborate with the Local Government Commission (Commission). Makes technical and organizational changes to UNC Health Care's administrative duties and responsibilities, and adds the duty to establish an application period and a process for submitting an application for a loan under the Program and any other duties and responsibilities necessary for the implementation of the Program and enforcement of the loan agreements under the Program. Adds a new provision to exclude UNC Health Care from applying for a loan or being a partner in a partnership that applies for a loan under the Program. Adds that the Commission cannot approve a loan application if the issuance of the loan would result in a material, direct benefit to UNC Health Care at the time the application and Plan are submitted for approval. Removes the Commission's rulemaking authority, now limiting the rulemaking authority concerning Program implementation to UNC Health Care alone.

Regarding applications for a loan under the Program, allows a public agency, an owner of a health care facility, or a partnership of one or more of those entities, to apply for a loan under the Program to benefit an eligible hospital, as defined, and requires applicants to develop and submit a hospital stabilization plan to UNC Health Care during the application period (substantively similar to the previous application requirements for eligible applicants). Now entitles an applicant disapproved by UNC Health Care to engage a disinterested and qualified third party approved by the Commission to evaluate the applicant's Plan to determine if the applicant demonstrates a financially sustainable health care service model for the community in which the eligible hospital is located, and to subsequently seek Commission approval of the loan based on the written evaluation of its Plan by the third party (previously, provided for an applicant to request the Commission to review UNC Health Care's disapproval recommendation).

Concerning the award and terms of loans under the Program, requires the Commission to approve all loans under the Program prior to UNC Health Care's awarding the loan. Explicitly states that if the Commission enters an order denying the loan, the proceedings under new Article 2 are at an end. Makes technical and clarifying changes to the conflict of interest provisions. Requires the Commission to review UNC Health Care's recommendations, an applicant's Plan and any other relevant information, as well as the third party evaluation, if applicable. Sets forth additional information the Commission can require the applicant and eligible hospital (if different) to provide for consideration (previously, limited to current and historical financial information). Establishes the following four findings that must be satisfied for the Commission to approve a loan application: (1) that the loan is necessary or expedient; (2) that the amount proposed is adequate and not excessive for the proposed purpose of the loan; (3) that the Plan demonstrates a financially sustainable health care service model for the community in which the eligible hospital is located; and (4) that the applicant's debt management procedures and policies are good, or that reasonable assurances have been given that the debt will be repaid. Regarding the award of loans, requires UNC Health Care to execute the terms of the loan agreement upon approval of the loan by the Commission. Authorizes UNC Health Care, rather than the Commission, to require changes to the governance structure of the eligible hospital. Eliminates the procedure for reconsideration of a loan's modified agreement for approval. Makes further technical, clarifying, and organizational changes.