House committee substitute makes the following changes to 3rd edition.
Clarifies that the State Health Plan for Teachers and State Employees (Plan) may charge up to the specified monthly premium rates for partially contributory coverage; adds rates for Medicare Primary status, distinguished from Non-Medicare Eligible/Medicare Secondary. Changes the monthly premium for Medicare eligible retirees under the Standard plan from $17.59 to $17.40. Clarifies that premium rates for contributory coverage may be increased by up to 5.2% for 2011-12 and up to an additional 5.2% for 2012-13.
Amends GS 135-45.2(d), adding that a dependent child is not eligible for Plan coverage if the dependent child is eligible for employer-based health care outside of the Plan.
Adds a section to amend GS 135-45.3 (enrollment), adding that eligible dependents younger than age 19 may enroll in the Plan at any time and will not be subject to any waiting period for a preexisting condition. Makes conforming changes, and makes conforming changes to GS 135-45.4 (concerning effective dates of coverage).
Adds a new section, effective July 1, 2010, to amend GS 135-44.4(18), permitting the Executive Administrator and Board of Trustees to authorize coverage or payment of claims denied as a result of administrative errors or system issues. Makes clarifying changes to GS 135-45.1(15) (definition for health benefits representative).
Amends the title of newly created Article 3B in GS Chapter 135 to read State Health Plan for Teachers and State Employees. Amends GS 135-48.1 (general definitions), defining subscriber as a Plan member who is not a dependent (was, a person who qualifies for coverage under the Plan as the primary insured). Deletes the term and definition for surviving spouse. Makes a clarifying change to GS 135-48.10(a) (confidentiality of information and medical records; provider contracts). Amends GS 135-48.27 (reports to the General Assembly; General Assembly access to information) to allow attendance by Legislative Services Commission employees at all Board of Trustees meetings. Also makes GS 120-32.01(a) (requiring information be supplied to specified General Assembly divisions) applicable to the Claims Processor, the Treasurer, the Board of Trustees, the Executive Administrator, and the Plan. Amends GS 135-48.30, removing the State Treasurer’s two powers related to long-term care benefits. Makes a clarifying change to GS 135-48.38 (concerning Medicare eligible members).
Adds new section to make a conforming change to GS 150B-1(d)(7) (exempting Article 3B from rule-making provisions of the Administrative Procedure Act). Effective January 1, 2012 (the date the Plan transfers to the State Treasurer), repeals Sections 1.2 (setting premium rate increases) and 1.3(a) (setting deductible, coinsurance, and co-payment increases) of the act.
Makes other clarifying and conforming changes.

Senate committee substitute makes the following changes to 1st edition.
Deletes all provisions of 1st edition and replaces with AN ACT TO PERMIT COURSES FOR STUDENTS ENROLLED IN THE GATEWAY TO COLLEGE PROGRAM TO GENERATE BUDGET FTE AND TO DEVELOP AN APPROVAL PROCESS FOR DROPOUT RECOVERY PROGRAM PARTNERSHIPS BETWEEN LOCAL COMMUNITY COLLEGES AND LOCAL SCHOOL ADMINISTRATIVE UNITS.
Amends GS 115D-20(4), authorizing local administrative boards and local school boards to establish dropout recovery programs in the boards’ respective areas, subject to State Board of Community Colleges (Board) approval.
Amends Section 7.24(h) of SL 2010-13 to add that specified courses provided to students in the Gateway to College programs at the Durham Technical Community College or the College of the Albemarle will generate state funding through budget FTE.
Directs the Board, with the State Board of Education, to develop a process to approve high school dropout recovery program partnerships between local community colleges and local school administrative units, to examine specified programs for best practices, and to report to the Joint Legislative Education Oversight Committee before March 1, 2012, with any recommended legislation.
Effective July 1, 2011.

Senate committee substitute makes the following changes to 1st edition. Amends the definition of bona fide cooking school to require that the school primarily provide courses or instruction on food preparation techniques that participants can replicate at home (was, provide courses or instruction in the preparation of food).

Senate committee substitute makes the following changes to 1st edition.
Expands the definition for covered entity to include any other facility or practitioner licensed by the state to provide health care services. Adds a definition for qualified organization meaning an entity designated by the NC health information exchange (HIE) to contract with covered entities on behalf of the NC HIE in order to facilitate the participation of those covered entities in the HIE Network.
Modifies the requirement that the NC HIE develop and enter into written participation agreements with covered entities that utilize the HIE Network to provide that instead of entering directly into participation agreements with covered entities, the NC HIE may enter into participation agreements with qualified organizations, which in turn, enter into participation agreements with covered entities. Also modifies the requirement that the NC HIE enter directly into a business associate contract with each of the covered entities participating in the HIE Network, providing instead that the NC HIE may enter into business associates contracts with qualified organizations, which in turn, enter into business associates contracts with covered entities.
Requires each covered entity electing to participate in the HIE Network to enter into a business associate contract and a written participation agreement with the NC HIE or qualified organization before disclosing or accessing any protected health information through the HIE Network.
Makes a conforming change.

Makes numerous amendments to GS 115C-325, relating to the system of employment for public school teachers and procedures for dismissal or demotion, including: (1) provides that failure to notify a career employee of deficiency in performance is conclusive evidence of satisfactory performance; (2) defines “inadequate performance” by a teacher to include (a) failure to perform at a proficient level on any standard of the evaluation instrument or (b) otherwise performing in a below standard manner, but giving superintendents some flexibility with regard to probationary teachers; (3) changes the designation case manager to hearing officer, requires that hearing officers be members of the N.C. State Bar, and modifies procedures for maintaining a master list of hearing officers and selection of a hearing officer; (4) increases from 10 days to 90 days the time within which a hearing officer must submit a report following a hearing, requires that any supplemental report be made within 30 days of request, and provides for compensation reduction for failing to meet either deadline without good cause; (5) limits role of hearing officer to making findings of fact and prohibits making recommendations about conclusions of law or disposition of the case; (6) increases from two days to five work days the time after receiving a hearing officer’s report within which a superintendent must decide whether to make a written recommendation to the local board for particular action or to drop the charges, and makes comparable time limit changes in relation to action by a local board; and (7) limits hearings to three work days unless extended for extraordinary cause, and limits each party to a maximum of eight hours to present its case in chief. Makes conforming changes replacing occurrences of the term case manager with hearing officer.
Rewrites GS 115C-333, relating to evaluation of licensed (formerly, certified) teachers, to require annual evaluation of all licensed employees at all low-performing schools (was, at low performing schools that had not been assigned an assistance team). Requires all teachers in low-performing schools who have not attained career status (was, all teachers who have not achieved career status) to be observed at least three times annually by the principal or the principal’s designee and at least once annually by a teacher, and at least once annually by a principal. Replaces action plans with mandatory improvement plans, which are defined as instruments to improve the performance of a teacher or any certified/licensed employee in a low-performing school by providing the individual with notice of specific performance areas where there are deficiencies and a set of strategies to address those deficiencies. Provides that if a licensed employee in a low-performing school receives a rating on any standard on an evaluation that is below proficient, unsatisfactory, or below standard, the individual or team conducting the evaluation is to recommend to the superintendent (1) that the employee receive a mandatory improvement plan or (2) that the employee be dismissed or demoted. Provides that if the evaluation person or team elects not to make either recommendation then the decision to mandate an improve plan or recommend a dismissal proceeding lies with the superintendent. Provides additional guidelines regarding implementing a mandatory improvement plan. Makes conforming changes by deleting references to action plans.
Provides for the reassessment of an employee in a low-performing school after the time period for the completion of the mandatory improvement plan has expired. Directs the superintendent to recommend that the employee be dismissed or demoted under GS 115C-325 if the employee has failed to become proficient in any of the performance standards noted in the mandatory improvement plan.
Requires a local board that dismisses an employee of a low-performing school for any reason except a reduction in force under GS 115C-325(e)(1)1. to notify the State Board of Education (SBE) of the dismissal. Directs the SBE to provide annually the names of those dismissed individuals to all local boards of education. Provides process of evaluation to be followed if a local board hires one of the individuals previously dismissed.
Enacts new GS 115C-333.1 requiring teachers assigned to schools that are not designated as low-performing and who do not have career status to be observed at least three times annually by the principal or the principal’s designee, at least once annually by a teacher, and at least once annually by a principal. Requires all teachers with career status and who are assigned to schools that are not designated as low-performing to be evaluated annually unless a local board adopts rules that allow career status teachers to be evaluated more or less frequently. Authorizes local boards to also adopt rules requiring the annual evaluation of nonlicensed employees. Provides guidelines regarding the performance standards and criteria to be used for the evaluation.
Delineates provisions for implementing mandatory improvement plans for teachers assigned to schools that are not designated as low-performing. Provides that any teacher placed on a mandatory improvement plan, other than a teacher assigned to a school designated as low-performing, has a right to be observed by a qualified observer in the area or areas of concern identified in the mandatory improvement plan. Defines the term qualified observer as used in this statute and directs local boards of education to create a list of qualified observers who are employed by the local board and available to observe employees on mandatory improvement plans. Provides for the reassessment of a teacher upon completion of a mandatory improvement plan. Provides for review and consideration by the principal of the report from the qualified observer and directs the principal to assess the teacher’s performance a second time. Provides that if after the second assessment and consideration of the qualified observer’s report, the superintendent or the superintendent’s designee determines that the teacher has failed to become proficient in the performance standards identified as deficient, the superintendent may recommend that the teacher be dismissed or demoted under GS 115C-325. Provides that the results of the second assessment constitute substantial evidence of the teacher’s inadequate performance.
Provides that the absence of a mandatory improvement plan does not prohibit a superintendent from dismissing a career employee under the provisions of GS 115C-325; however, the superintendent cannot use the substantial evidence standard if there was no mandatory improvement plan prior to the dismissal. Requires a local board that dismisses an employee of a low-performing school for any reason except a reduction in force under GS 115C-325(e)(1)1. to notify the State Board of Education (SBE) of the dismissal. Directs the SBE to provide annually the names of those dismissed individuals to all local boards of education. Provides process of evaluation to be followed if a local board hires one of the individuals previously dismissed.
Provides that there is no liability for negligence on the part of the SBE, a local board of education, or their employees arising from any act taken or omission in carrying out the provisions of this statute. Does not extend the immunity conferred by this statute to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. Provides criteria regarding when the immunity established in this statute is deemed to have been waived.
Makes conforming changes to GS 115C-288, 115C-334, and 115C-355.

Adds a new Article 10 (GS 7A-80 to 7A-86), the Prosecution Services Act, in GS Chapter 7A. Creates an Office of Prosecution Services (Office) and a Commission on Prosecution Services (Commission) in the Judicial Department, to act independently of the director of the Administrative Office of the Courts (AOC), in a structure similar to that of the existing Office of Indigent Defense Services. Requires the AOC director to provide general administrative support and to assist (but not control) in preparation of the Office’s budget. Specifies responsibilities of the Office, including (1) management and oversight of budget for district attorneys and disbursement of funds; (2) taking steps to increase efficiencies and effectiveness in prosecution and provide information on the impact of changes in criminal laws; (3) providing local offices with training, technical assistance, related services, and necessary technology and information; and (4) providing special prosecutors in extraordinary circumstances.
Specifies the qualifications and method of appointment of members of the 11-member Commission, to serve four-year staggered terms, and requires that the first meeting be held by September 15, 2011. States that the primary purpose of the Commission is development and improvement of programs by which the Office provides oversight of criminal prosecution and related services. Requires the Commission to appoint a Director of Prosecution Services (director) and to assist elected district attorneys in developing guidelines for various aspects of the provision of prosecution services. Authorizes the Commission to establish policies, procedures, and rules for the Commission and the Office. Specifies responsibilities of the director and provides for him or her to receive longevity pay as specified in lieu of merit and other raises paid to regular state employees.
Repeals Article 32 of GS Chapter 7A, which establishes the Conference of District Attorneys. Makes numerous conforming amendments. Requires the Commission to report by May 1, 2012, to chairs of the Senate and House Appropriations Committees and Appropriations Subcommittees on Justice and Public Safety regarding a plan for transfer of the budget and related authority from the AOC to the Commission, effective July 1, 2012; rules, standards, and regulations developed by the Commission for delivery of prosecution services; and other matters for implementing the act.
Effective July 1, 2011.

Amends GS 20-140.4, as title indicates, with respect to the operation of a motorcycle or moped on a highway or public vehicular area.

Amends GS 150B-23(a) to delete the restriction on when the State Personnel Commission may make final decisions in cases involving local government employees, applicants, or former employees subject to the State Personnel Act. Amends GS 150B-34 to provide that in each contested case the administrative law judge must make a final decision or order containing findings of fact and conclusions of law, and to delete provisions for agencies to make final decisions. Adds new GS 150B-34(e), authorizing an administrative law judge to grant judgment on the pleadings or a motion for summary judgment that disposes of all issues in the contested case, and providing that such an order must contain findings of fact and conclusions of law only to the extent the administrative law judge determines is required or allowed by Rule 12(c) or Rule 56 of the Rules of Civil Procedure. Amends GS 150B-51(c) to provide that a court, in reviewing a final decision in a contested case, must determine whether the decision is supported by substantial admissible evidence in view of the entire record. If the court determines that the decision is not supported by substantial evidence in the record, the court may reverse the decision or remand the case to the administrative law judge if the case was heard under Article 3 of Chapter 150B or to the agency if the case was heard under Article 3A, for entry of a decision in accordance with the evidence in the official records. Makes numerous conforming amendments repeals GS 150B-36 (concerning agency final decisions). Effective January 1, 2012, and applies to contested cases commenced on or after that date.

Identical to H 465, filed 3/24/11.

Amends Section 4 of SL 2010-195 as the title indicates.

Amends GS 105-362(b)(2) to provide as title indicates. Effective for taxes imposed for taxable years beginning on or after July 1, 2011.

Enacts new GS 42-14.4 requiring a landlord with knowledge that a tenant is or may have been an attorney to notify the NC State Bar (State Bar) at least 30 days before the destruction or sale of any potentially confidential materials remaining in the premises after the landlord obtains possession. Defines potentially confidential materials as client files, trust or operating account records, or other materials relating to client matters. Directs the landlord to provide the State Bar with the attorney’s name, the location of the relevant materials, and the landlord’s contact information. Requires the landlord to exercise reasonable care in removing, storing, and maintaining the materials. Permits the State Bar to take possession of the materials within the 30-day period without a court order. Details circumstances allowing the tenant to take possession, and exempts the landlord from liability for cooperation with the State Bar. Allows the landlord, after the 30-day period, to destroy or discard the materials in a manner to protect confidential information.
Enacts new subsection (h) to GS 44A-2 (concerning liens on personal property), requiring any landlord of residential or nonresidential property containing potentially confidential materials to notify the State Bar as required. Specifies that the materials are not the subject of a lien and must be destroyed or safely discarded if the State Bar does not take possession.

Current law provides that the North Carolina Rate Bureau (Rate Bureau) was created under GS 58-36-1 to assume the functions formerly performed by the North Carolina Fire Insurance Rating Bureau, the North Carolina Automobile Rate Administrative Office, and the Compensation Rating and Inspection Bureau of North Carolina. Amends GS 58-36-1 to remove the functions of the North Carolina Automobile Rate Administrative Office from among those assumed by the Rate Bureau. Deletes GS 58-36-3(a)(6) which took away the Bureau’s authority over insurance against theft or physical damage to motorcycles. Makes conforming changes to provisions in GS Chapter 58 dealing with the administration by the Rate Bureau of insurance coverage for nonfleet private passenger motor vehicles and motorcycles. Repeals GS 58-36-41, GS 58-36-65 through 58-36-85, and GS 58-36-95.
Enacts new GS 58-40-17 to provide that despite the definition of nonfleet in GS 58-40-10(2), an insurer may adopt rules, subject to the approval of the Commissioner of Insurance, that specify the circumstances under which more than four private passenger motor vehicles may be covered under a nonfleet private passenger motor vehicle policy that is subject to Article 40, Regulation of Insurance Rates, of GS Chapter 58.
Enacts new GS 58-40-145 to prohibit insurers from using credit scoring as the sole basis for (1) terminating an existing policy, (2) terminating coverage in an existing policy, or (3) subjecting a policy to a “consent rate” as specified in GS 58-40-30(c) without consideration of any other risk factors; however, does permit insurers to use credit scoring as the sole basis for discounting rates. Provides that for the purposes of subsection (b) of proposed GS 58-40-145 only, the term existing policy means a policy in effect for more than 60 days. Requires that an insurer provide the applicant or policyholder with written notice if a credit report was used in conjunction with other criteria to take an adverse action. Provides criteria regarding the content of the notice. Provides for re-underwriting or re-rating the insured as a result of disputed credit report information and a determination that the credit information was incorrect or incomplete under the dispute resolution process set forth in 611(a) of the federal Fair Credit Reporting Act, USC Section 1681i(a). Also provides criteria for refunds to the insured if premiums have been overpaid. Provides criteria for indemnification responsibilities of the insurer and filing requirements for the insurer. Enacts new GS 58-40-150 setting forth disclosure requirements regarding the use of non-original crash repair parts. Amends GS 58-40-155 providing remedies for an insurer when the applicant for the issuance or renewal of a nonfleet private passenger motor vehicle insurance policy knowingly makes a material misrepresentation on the application for a motor vehicle insurance policy.
Amends GS 58-40-10 deleting a motorized scooter or other similar motorized vehicle not used for commercial purposes from the definition for a private passenger motor vehicle. Adds proposed Articles 37A and 41 of GS Chapter 58 to those Articles to which the definitions in this statute apply.
Enacts new Article 37A, Motor Vehicle Insurance Flex-Rating, in GS Chapter 58 with provisions that apply only to nonfleet private passenger motor vehicle insurance written in North Carolina by any insurer licensed by the Commissioner of Insurance to write nonfleet private passenger motor vehicle insurance. Defines terms as they apply in this Article. Provides criteria for flex-rating, allowing an overall statewide increase or decrease of no more than 15% in a nonfleet private passenger motor vehicle insurance rate to take effect on or after the date it is filed. Provides restrictions on the frequency and timing of a rate filing and additional criteria regarding rate filings that provide for an increase greater than 15% when aggregated for all policy holders. Also specifies role of Commissioner in evaluating rate filings.
Makes conforming changes to GS 58-37-35 regarding rates for clean risks reinsured in the NC Reinsurance Facility (Facility) effective October 1, 2012. Amends GS 58-37-40(f) to provide that the charges set out in the plan of operation and determined on the basis of the surcharge are to be set out as a separate charge on any statement of applicable premium charges provided to the policyholder (was, combined and displayed as a part of the applicable premium charge).
Enacts new GS 58-37-80 directing the Facility to file, subject to review, modification, and promulgation by the Commissioner, rate classifications, schedules, or rules as deemed desirable and equitable by the Commissioner to classify drivers of nonfleet private passenger motor vehicles for purposes of reinsurance under Article 37 of GS Chapter 58. Requires the Facility to file a Safe Driver Incentive Plan (Plan) that distinguishes among various classes of drivers assigned to the Facility and provides premium differentials among those classes of drivers creating subclassification of drivers. Provides that the classifications and Plan filed by the Facility is subject to the filing, hearing, modification, approval, disapproval, review, and appeal procedures provided by law. Provides additional details regarding responsibilities and authority of the Facility in developing the Plan.
Enacts new GS 58-37-85 to provide that the subclassification presented under proposed GS 58-37-80 may provide for separate surcharges for major, intermediate, and minor accidents. Defines what constitutes a major, intermediate, and minor accident. Provides criteria regarding point value and surcharges assigned to at-fault accidents and certain moving violations and specifications based on the subclassification plan. Also provides exceptions to the Safe Driver Incentive Plan surcharges.
Requires the Executive Director and the Chair of the Board of Governors of the Facility to report to the Joint Legislative Commission on Government Operations on or before October 1, 2016, and again on or before October 1, 2018, on the size and market share of the Facility, and the analysis of the effective of the flex-rating authorized by Article 37A of GS Chapter 58 in reducing the size of the Facility. Effective October 1, 2012.
Except as otherwise indicated, effective October 1, 2014.

Enacts new GS 143-350.1, setting out seven principles that constitute the state’s water resources policy, which shall govern administrative and judicial determinations regarding water use in the state and any political subdivision. These relate to the protection of water resources; the use of both regulatory and voluntary programs; the encouragement of conservation and efficiency, increased storage capacity, and reuse; recognition of the roles of landowners; and preservation of landowner water rights. Amends GS 143-215.22 to prohibit the state or a political subdivision from limiting a landowner’s withdrawal and use of water, except as provided in Articles 21 and 38 of GS Chapter 143, when the water is from (1) a natural body of water on or abutting the landowner’s property; (2) an impoundment constructed by or owned by the landowner; (3) wells constructed on the landowner’s property; or (4) other natural sources of water on the landowner’s property, such as captured stormwater, springs, and artesian wells. Amends GS 143-355.3, which deals with water shortage emergency powers, to provide that nothing in the section shall limit a landowner from withdrawing water from the sources listed above for use in agricultural activities (as defined in GS 106-581.1). Amends GS 143-215.25A, to exempt from the Dam Safety Law any dam constructed to provide water for agricultural use, when a person who is licensed as a professional engineer under GS Chapter 89C designed or approved plans for the dam and supervised its construction.

Amends GS 105-449.106 to allow a refund of the motor fuel excise tax for a private nonprofit providing volunteer radio communications, traffic control, or logistical support during emergencies in cooperation with authorities and other volunteer organizations, if the organization owns the vehicles using the fuel and the organization is under contract with a city or county to provide its services.

Adds a new GS Chapter 108C, Medicaid and Health Choice Provider Requirements. Requires the Department of Health and Human Services (department) to conduct screening of Medicaid and Health Choice providers and applicants in accordance with the federal Affordable Care Act, related regulations, and the act. Designates types of providers as being in Limited, Moderate, or High Risk Provider Categories, and sets out screening requirements for Limited, Moderate, and High Screening Levels. If a provider could fit in more than one category, the highest must be used. If the provider is also enrolled in Medicare, the department may rely on screening performed by Medicare contractors, and for out-of-state providers, may rely on screening performed by comparable agencies of other states. Enrollment must be revalidated at least every five years. Enrolled providers must permit unannounced on-site inspections of all provider locations. Sets out criminal history record check requirements for certain providers. Authorizes the Division of Medical Assistance, in consultation with stakeholder groups and the state Department of Justice, to study the status of criminal history record and employment background checks among all providers and health care licensing boards and make recommendations to the General Assembly when it reconvenes in 2012 concerning the use of background checks in connection with participation in the Medicaid and Health Choice programs.

Completely rewrites GS 115C-391(a)(5) to permit corporal punishment to be administered only on a student whose parent or guardian has stated in writing that corporal punishment may be administered on the student, and to require that parents and guardians be given a form to make an election about corporal punishment at the beginning of the school year or when the student first enters school during the school year. Applies beginning with the 2011-12 school year.