House amendments make the following changes to 1st edition. Amendment #1 provides that the act applies beginning with the 2011-12 school year. Amendment #2 requires the State Board of Education, in conjunction with the Department of Public Instruction (DPI), to consider alternative assessment strategies for measuring student academic performance and evaluating teachers. Requires DPI to report its proposals to the House Education Committee and the Senate Education/Higher Education Committee by June 1, 2011. Makes conforming technical changes.

Amends GS 20-154 to make it a Class 2 misdemeanor, requiring a fine of at least $200, for a violation of subsection (a) of the statute (requiring a driver to make sure that a movement can be made safely before starting, stopping, or turning from a direct line and requiring a signal visible to the driver of the other vehicle alerting them to the intention of the movement whenever the operation of any other vehicle may be affected by such movement) when the violation causes a motorcycle operator to change lanes or leave a portion of any street or highway designated as travel lanes. Provides further that if the violation results in a crash that causes property damage or personal injury to a motorcycle operator or passenger, the violation is a Class 1 misdemeanor requiring payment of at least $500. Effective for offenses committed on or after December 1, 2011.

Enacts new Part 8 in Article 50 of GS Chapter 58, titled the North Carolina Health Benefit Exchange Act, to establish the nonprofit entity of the North Carolina Health Benefit Exchange (Exchange) and provide for its membership, authority, and requirements.
Definitions. Provides definitions applicable to new Part 8. Defines qualified health plan as a health benefit plan that meets certification criteria described in section 1311(c) of the federal Patient Protection and Affordable Care Act, as amended and criteria in GS 58-50-340 (health benefit plan certification requirements in proposed Part 8). A qualified employer is a small employer that elects to make (1) its full-time employees eligible for one or more qualified health plans offered through the SHOP exchange and (2) at the employer's option, some or all of its employees eligible. The SHOP Exchange is the Small Business Health Options Program established in Part 8. Defines qualified individual as an individual, including a minor, who (1) is seeking to enroll in a qualified health plan offered to individuals through the Exchange; (2) resides in NC; (3) is not incarcerated at the time of enrollment, other than incarceration pending disposition of charges; and (4) is, and is reasonably expected to be, for the entire period for which enrollment is sought, a citizen or national of the U.S. or an alien lawfully present in the U.S.
Exchange. Provides that the Exchange, established under Part 8, is not an instrumentality of North Carolina and will operate under the Exchange Board of Directors. Requires the Exchange to make only qualified health plans available to qualified individuals and qualified employers beginning with effective dates on January 1, 2014. Permits the Exchange to allow a health carrier to offer limited dental benefits, as indicated, if the plan also provides pediatric dental benefits, as specified. Prohibits the Exchange and any health carrier from charging a fee or penalty for termination of coverage in specified circumstances. Creates a Board of Directors (Board) of the Exchange, consisting of the Commissioner of Insurance (Commissioner) and 11 appointed members, as listed. Details appointment, term, and meeting guidelines. Includes an indemnification provision for the Board and employees of the Exchange and classifies members of the Board as public servants under GS Chapter 138A. Enumerates the general powers and authority of the Exchange, including the power to enter into contracts to carry out the provisions of Part 8. Lists the duties and operational requirements of the Exchange, including the directive to establish a SHOP Exchange (1) through which qualified employers may access coverage for their employees and (2) which will enable any qualified employer to specify a level of coverage so any employee may enroll in any qualified health plan offered through the SHOP Exchange at the specified level of coverage.
Sets forth duties, including reporting requirements, for the Executive Director of the Exchange. Requires the Board to submit a Plan of Operation for the Exchange to the Commissioner containing specified information.
Health Benefit Plan Certification. Directs the Exchange to certify a health benefit plan as a qualified health plan if the plan meets all of the detailed requirements. Prohibits the Exchange from excluding a health benefit plan by imposing premium price controls. Further prohibits the Exchange from excluding a plan solely because the plan is a fee-for-service plan or because the plan provides treatments necessary to prevent patients' deaths in circumstances the Exchange deems inappropriate or too costly. Provides additional requirements applicable to the certification of qualified health plans and includes criteria related to qualified dental plans.
Additional Provisions. Reserves GS 58-50-341 through GS 58-50-349 for future codification purposes. Diverts the funding stream currently supporting the North Carolina Health Insurance Risk Pool to support the Exchange, beginning in 2014. Requires the Exchange to publish on the internet the average costs of licensing and regulatory fees, administrative costs, monies lost to fraud and waste, and any other payments. States that nothing in the act will be construed to conflict with, preempt, or supersede the Commissioner's authority to regulate the business of insurance. Requires all health carriers offering qualified health plans to comply fully with all applicable laws, unless specifically excepted. Includes a severability clause.

Enacts new GS 160A-323.1 to require any municipality that owns or operates a municipal electric system to use the revenue derived from rates for electric service to pay the costs of operating the electric system and make debt service payments. Requires that remaining revenue be used to lower electric service rates in the areas served by the system, make additional debt service payments, or reduce the municipality’s commitment under contractual obligations to a joint municipal power agency. Prohibits a municipality from transferring revenue from an electricity utility fund to any other municipal fund for any purpose unless it is explicitly authorized by law. Effective July 1, 2011.

Enacts new GS 116-209.45 to establish the Forgivable Education Loans for Service Program and Fund. The proposed statute is effective July 1, 2011. Provides that the State Education Assistance Authority (Authority) will administer the Forgivable Education Loans for Service Program (Program) and the Forgivable Education Loans for Service Fund (Fund). States that the purpose of the Program is to facilitate and promote the making, insuring, and collection of loans from the Fund. Directs the Program to initially target future teachers, nurses, and allied health professionals to provide loans. The Fund’s purpose is to provide financial assistance to qualified students to enable them to obtain requisite education beyond the high school level to work in North Carolina in high-need professions and to respond to critical employment shortages.
Defines the following terms applicable to the statute: eligible institution, fund, loan, and program. Directs the Authority to establish criteria and standards for initial and continuing eligibility in the Program and requires all loan recipients to be residents of NC and to attend an eligible institution. Lists terms and conditions applicable to each loan made by the Program. Instructs the Authority to appoint an advisory group composed of specified representatives to make recommendations on loan apportionment and distribution. Directs all funds appropriated to or otherwise received by the Authority to provide loans through the Program, all funds received as repayment of loans, and all interest earned on the funds, to be placed in the Fund. Allows the Authority to adopt rules necessary to implement, administer, and enforce the statute. Directs the Authority to report before December 1, 2013, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the Fund and awarded loans.
Repeals the following statutes, which govern several education loan funds: GS 90-171.100, 90-171.101 (Graduate Nurse Scholarship Program for Faculty Production); GS 90-171.60, 90-171.61, 90-171.62 (North Carolina Nursing Scholars Commission and Nursing Scholars Program); GS 90-171.65 (need-based scholarship loan fund for nursing students); GS 116-40.10 (Board of Governors’ Dental Scholarship Loan Fund); GS 116-40.9 (Board of Governors’ Medical Scholarship Loan Fund); GS 116-209.33, 116-209.34 (Prospective Teachers Scholarship Loan Fund); GS 116-209.35 (Teacher Assistant Scholarship Fund); GS 116-209.30 (Social Workers’ Education Loan Fund). Transfers all assets and liabilities from these now-defunct education loan and scholarship funds to the Forgivable Education Loans for Service Fund. Provides that all financial obligations to any student awarded a scholarship by the applicable fund before July 1, 2012, will be fulfilled by the Forgivable Education Loans for Service Fund. Requires the student to remain eligible under the requirements of this now-defunct fund. Also states that all contractual agreements between the Authority and a student awarded a scholarship loan from the former fund before July 1, 2012, remain enforceable and any provisions otherwise applicable under the former fund but for the proposed transfer, remain applicable to any scholarship loan awarded before July 1, 2012.
Also transfers all assets and liabilities from the Student Loan Program for Health, Science and Mathematics Fund, the Future Teachers of North Carolina Fund, the Physical Education Scholarship Loan Fund, and the Optometry Scholarship Loan Fund to the Forgivable Education Loans for Service Fund. The retained financial obligations and contractual agreements also apply to loans awarded from the Student Loan Program for Health, Science and Mathematics Fund before July 1, 2012.
Effective July 1, 2012, unless otherwise indicated.

Repeals GS 105-120.2(f) (regarding determining total tax payable by any holding company) and GS 105-130.4(t2) (regarding alternative apportionment method for certain corporations meeting investment requirements).
Definitions. Amends GS 105-129.50 to add the definition of development tier area one as defined in GS 143B-437.08. Makes technical change to GS 105-164.4C(h)(5), defining postpaid calling service to replace the term prepaid wireline telephone with prepaid telephone. Amends GS 105-164.14B(a) (regarding certain industrial facilities refunds) to add definitions for paper-from-pulp manufacturing and turbine manufacturing. Defines owner to include a lessee in a lease-to-purchase contract. Amends GS 105-228.90(b) to add a definition for NAICS: North American Industry Classification System (NAICS), adopted by the U.S. Office of Management and Budget. Makes conforming changes to GS 105-129.81(13) and (18). Amends GS 105-333(14) to clarify that the definition of public service company in the property tax statutes does not include mobile telecommunication service.
Retail sales and use tax. Amends GS 105-164.13(12) to clarify that the sales tax exemption applies to prosthetic devices for human use. Amends GS 105-164-13D(a) to remove geothermal heat pumps from the list of items entitled to the Energy Star sales tax exemption.
Economic Incentive Refunds. Rewrites GS 105-164.14A to set the sunset date for sales tax refunds for fuel sold to passenger air carriers and motorsports teams as January 1, 2013 (was, January 1, 2011). Amends GS 105-164.14B(b)(1) to identify facilities primarily engaged in paper-from-pulp manufacturing and turbine manufacturing as industrial facilities that meet the business, minimum investment, and industry specific requirements of the section and are therefore allowed an annual refund of sales and use tax paid on specified materials.
Refund of Overpayment of Tax. Amends GS 105-228.37 to clarify the refund process for a taxpayer who makes an overpayment under GS Chapter 105, Article 8E, Excise Tax on Conveyances. Eliminates the requirement that a board of county commissioners must conduct the refund request hearing in accordance with the procedures that apply to a hearing held by a board of equalization and review on an appeal regarding the listing or appraisal of property. Establishes the timeline for filing a refund request, setting a hearing date, and providing notice to the taxpayer. Provides process if the refund is granted and if the refund is denied. Provides that when the board of commissioners determines that no refund is due, the board must inform the taxpayer through its written decision of the taxpayer’s right to request a Departmental review (was, judicial review) of the denial of the refund in accordance with GS 105-241.11. Amends GS 105-228.30(b) to require each county finance officer to credit one-half of the tax proceeds to the county’s general fund and to remit the remaining one-half of the proceeds, minus the taxes refunded and the county’s allowance for administrative expenses, to the Department of Revenue of a monthly basis.
Penalties. Amends GS 105-236(a)(2) to provide that the Secretary of Revenue (Secretary) may assess a penalty of $1,000 for failure to obtain a license prior to engaging in a business, trade, or profession in which a license is required only if the taxpayer fails to obtain a license after receiving written notification of the need to do so from the Department of Revenue.
Publications and Disclosure. Amends GS 105-256(a)(9) to delete the requirement that the Secretary redact identifying information for a taxpayer in a contested tax case from the final decision prior to publication of that decision. Reconciles GS 105-259(a)(9) with the publication provisions under GS 150B-31.1. Makes a conforming change to GS 105-259, replacing the term report with publication. Repeals GS 150B-21.17(a)(5) (required the publication of orders of the Tax Review Board in the North Carolina Register).
Sales Tax. Under current law, the sales tax imposed under the First One-Cent (1¢) Local Sales and Use Tax Act (GS Chapter 105, Article 39) limits application of the tax only to state taxable sales under GS 105-164.4 that are specifically included in subsection (a) of GS 105-467. Amends GS 105-467(a) to provide that the subsection applies to all taxable sales and gross receipts subject to the general rate of sales tax imposed by the state under GS 105-164.4.
Time Limit. Amends GS 105-241.9(b) to clarify that a waiver by a taxpayer of a statute of limitations for a proposed assessment must be executed before the statute of limitations expires.
Miscellaneous. Amends Section 24.18(g) of SL 2006-66 regarding various oyster tax shell credits to extend the sunset date on those provisions to January 1, 2013 (was, January 1, 2011).
Amends Section 31.7(e) of SL 2010-31 to change the effective date for GS 105-37.1(a)(1) as amended (provides for the exclusion of amenities from general admission receipts for determination of the privilege tax) to February 1, 2009 (was, August 1, 2010).
Amends Section 8 of SL 2006-209 to remove the sunset date (was, July 1, 2011) from the provision that authorizes the Codifier of Statutes to renumber the subdivisions in GS 20-79.4(b) (the special license plates statute) in sequential and alphabetical order and to eliminate mixed number-letter subdivision designations.
Provides that a facilitator (entities that enter into a contract with providers of accommodations to market and collect payment for accommodation rentals) is not liable for an over-collection or under-collection of sales tax or local occupancy tax during the period from January 1, 2011, through April 1, 2011, as the result of the change under Section 31.6 of SL 2010-31 regarding a facilitator’s collection and remittance obligations under GS 105-164.4(a)(3), 153A-155(c), and 160A-215(c).
Amends GS 105-164.16(d) to clarify the items on which the use tax is payable.