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

Amends the act's short and long titles.

Deletes all of the provisions of the previous edition and replaces it with the following.

Enacts new GS 153A-248.1, Authority for county eugenics compensation ordinance, which authorizes counties in the State to adopt ordinances to provide compensation of qualified recipients that were asexualized or sterilized under county authority. Requires such ordinances to become effective on or before July 1, 2018. Specifies who meets the classification of a "qualified recipient." Provides that claims for compensation can only be made by an individual who is alive at the time the individual makes the claim. Provides that any and all claims for compensation under the ordinance must be made no later than December 31, 2019.

Sets out requirements for the authorized ordinances, requiring that they (1) state that the Industrial Commission will determine whether a claimant is eligible for compensation as a qualified recipient and requires the county to reimburse the Commission for expenses, or (2) provide other provisions to afford claimants due process and must also prescribe the manner in which claims will be handled by the county.

Further states that if a claimant dies during the pendency of a claim or after being determined to be a qualified recipient, the decedent’s estate will receive any compensation payment. Also provides that compensation can be deposited into an inter vivos trust established for the benefit of the qualified recipient.

Provides that compensation under these ordinances are not considered income or assets for the purposes of determining eligibility for public benefits or assistance. Further provides that due to the unique harm suffered, this compensation can only be used for the benefit of the victims and cannot be used to pay attorneys’ fees arising from the representation at the county determination level or on appeal.

Directs the Industrial Commission to adopt rules to carry out the duties described in this act. Also directs the Industrial Commission and all other state departments and agencies to collaborate with the county to provide for compensation to victims as soon as practicable. Provides that documents and inquiries concerning these payments are confidential and not public record. Limits the liability of counties arising from the eugenics program to the amount of compensation authorized under this act. Provides that these provisions do not extend any statute of limitations that might have expired prior to July 1, 2013. 

Provides that this act only applies to counties having a population over 350,000 according to the most recent federal decennial census.