Senate committee substitute makes the following changes to 1st edition.
Amends proposed GS 58-21-3 to add that the Commissioner of Insurance (Commissioner) is also authorized to enter into a cooperative agreement or interstate agreement or compact to facilitate the collection, allocation, and disbursement of premium taxes attributable to nonadmitted insurance, provide for uniform methods of allocation and reporting among nonadmitted insurance risk classifications, and share information relating to nonadmitted insurance premium taxes among states. Also authorizes the Commissioner to enter the NAIC Nonadmitted Insurance and Multi-State Agreement or other interstate agreement to carry out the Nonadmitted and Reinsurance Reform Act of 2010. Makes organizational changes.
Deletes sections amending GS 58-21-85, which required licensed persons to collect and pay the Commissioner 5% of the gross premiums charged for surplus lines insurance, and GS 58-28-5(b), which concerned multistate risks and premium taxes. Adds a section to amend the definition of risk retention group in GS 58-22-10(10) as follows: the term means any corporation or other limited liability association that, among other things, (1) is only owned by persons comprising the membership of the risk retention group and who receive insurance from the group or (2) is solely owned by an organization whose (a) only members comprise the risk retention group and (b) whose only owners comprise the risk retention group and receive insurance by the group (clarifies current language). Makes other clarifying changes.
Makes a conforming change to the bill title to reflect bill content.

Senate committee substitute makes the following changes to 1st edition.
Amends GS 115C-325 (system of employment for public school teachers) to replace references to “certificate” and “certified” with the terms “license” or “licensed” teachers in several definitions, where applicable. Clarifies the explanation of “Inadequate Performance” to provide that a performance rating below proficient may or may not be deemed adequate for a probationary teacher (was, for a probationary teacher without a Professional Standards II license) by a superintendent. Adds that a performance rating below proficient will be inadequate performance unless the principal documents that the teacher is making adequate progress toward proficiency under the circumstances. Clarifies that the Superintendent must submit a list of approved hearing officers within five days (was, five work days) of the hearing request notification, and makes a conforming change to remove “work” from various timelines in the statute. Clarifies that the State Board of Education (SBOE) must, except for good cause shown, remove a hearing officer from the list if the officer failed to conduct a hearing or prepare a report as specified. Also clarifies that a hearing officer will, except for good cause shown, be removed from the list for failure to meet SBOE terms and conditions of engagement. Makes conforming changes to replace references to “case manager” with “hearing officer” in the statute, and deletes, from GS 115C-325(j2), the requirement that the case manager deliver a recommendation on whether the grounds for dismissal or demotion are substantiated to the board. Makes other technical and clarifying changes.
Amends GS 115C-333, which concerns evaluation of licensed employees in low-performing schools, mandatory improvement plans, and board notification after employee dismissal, to clarify that all teachers in low-performing schools without career status will be observed as detailed. Also clarifies that a local board must use performance standards and criteria adopted by the SBOE to evaluate licensed employees in low-performing schools and may adopt additional criteria and standards (currently allows the local board to develop an alternative evaluation). Deletes all provisions in original GS 115C-333(b) and reorganizes amendments proposed in the previous edition to enact new subdivisions (1a), (2a), (3), and (4). Retains description of a mandatory improvement plan as an instrument to improve the performance of a teacher or any licensed employee in a low-performing school, and deletes provision using the plan only if the superintendent determines that a growth plan will not address the deficiencies. Retains procedure followed if a licensed employee in a low-performing school receives a below proficient rating or otherwise shows unsatisfactory or below standard performance in a specified area. Retains provision requiring mandatory improvement plans be developed by the person or assistance team that evaluated the licensed employee or supervisor. Adds a provision allowing the principal to immediately institute a mandatory improvement plan if a licensed employee engages in inappropriate conduct or performs inadequately and causes substantial harm to the educational environment, but dismissal or demotion is not appropriate. Makes other clarifying changes.
Amends proposed GS 115C-333.1, which provides for teacher evaluation in schools not identified as low-performing, to add that a mandatory improvement plan will be used only if the superintendent determines that a growth plan will not address the deficiencies. Makes other clarifying changes. Makes conforming changes to GS 115C-276(s), and makes conforming and clarifying changes to GS 115C-296.
Makes additional clarifying changes. Changes the act’s effective date to apply to persons recommended for dismissal or demotion on or after July 1, 2011.

Enacts new GS Chapter 136A for purposes indicated in title. Permits eligible local governments to constitute a joint agency for the financing, construction, and operation of regional transportation projects pursuant to a Regional Transportation Funding Agreement (RTFA) and defines permissible projects. Permits counties that are parties to an RTFA to levy a ½ percent sales and use tax and a tax of 5 cents per gallon on the retail sale of gasoline and diesel fuel. Requires that any such tax be levied by all counties who are members of the RTFA. Enacts new Article 47 of Chapter 105, Regional Transportation Funding Agreement Sales Tax, governing levy, collection, and distribution of the ½ percent sales and use tax. Recodifies in GS Chapter 136A various provisions of Articles 25, 26, and 27 of Chapter 160A.

Amends GS 143-442(a), as title indicates.

Enacts new GS 20-79.4(b)(45a) as title indicates. Provides that DMV may not issue the plate unless it receives at least 300 applications. Effective July 1, 2011.

Amends GS 90-85.36, which concerns the availability of pharmacy records under the Pharmacy Practice Act, to clarify that the statute includes written or electronic prescription orders. Adds an HIPAA-covered entity or health care provider, as specified, to the list of persons to whom prescription orders may be disclosed. Amends GS 122C-55, which provides for disclosure of confidential information in certain circumstances, to clarify that any facility (currently, any area or state facility or the psychiatric service of the UNC Hospitals at Chapel Hill) may share confidential information regarding any client of that facility with any other facility (currently, with any area or state facility or the psychiatric service of the UNC Hospitals) to coordinate appropriate and effective care, treatment, or habilitation of the client. Amends GS 122C-55(a6) to permit the Community Care of North Carolina program (CCNC) of the Department of Health and Human Services or other primary care case management program (currently, a DHHS primary care case manager) to disclose specified confidential information to a health care provider or other entity when a written agreement with CCNC or other program exists, to participate in the care management support network and systems. Authorizes providers and entities receiving confidential information to use and disclose the information to conduct quality assessment and improvement activities or to coordinate appropriate and effective care, treatment, or habilitation. Enacts new subsection (a7) to permit a facility to share confidential information with one or more health care providers that are covered entities as indicated, provided the facility first informs the client of the disclosure and allows the client to object in writing. Provides definitions for covered entity and health care provider, and specifies allowable use of the confidential information. Makes a conforming change.
Amends GS 130A-12, which provides for confidentiality of records, clarifying that information in specified records may be disclosed for treatment, payment, research, or health care operation purposes to the extent permitted under federal law. Makes a conforming change. Amends GS 130A-143, which concerns confidentiality of records containing information on communicable diseases, clarifying that release of such records is allowed for treatment, payment, research, or health care operation purposes to the extent permitted under federal law. Amends GS 131D-21, which sets forth adult care home residents’ rights, clarifying that a resident has the right to have his or her personal and medical records kept confidential, except as permitted or required by state or federal law. Amends GS 131E-144.3, which sets forth home care clients’ rights, clarifying that each client has the right to have his or her personal and medical records kept confidential, except as permitted or required by state or federal law.
Effective January 1, 2012.

Enacts new GS 58-3-231, requiring an insurer that provides a health benefit plan to establish and maintain a process to allow a patient’s regular physician to submit a claim and, if accepted, receive payment for covered visits provided by a locum tenens physician, provided six requirements are met. Defines locum tenens physician as a physician who is not an employee of the regular physician, but substitutes for the physician on a temporary basis. Includes definitions for additional terms used in the statute. Permits a medical group or hospital to submit claims for a locum tenens physician substituting for a regular physician who is a member of the medical group or an employee of the hospital, provided the six requirements are met. Specifies that per diem or similar fee-for-time compensation paid for the locum tenens physician is considered paid by the regular physician. Sets forth additional criteria for billing, substituting for a regular physician, and locum tenens agencies. Directs insurers to establish the claim and payment process within 180 days after the act becomes effective. Effective October 1, 2011.

Enacts new Article 5H, Propane Gas Tax, to GS Chapter 105, imposing an excise tax, in lieu of sales and use tax, on propane gas received by an end user for NC consumption, at a rate of 14¢ per gallon. Exempts five specified circumstances from the tax. References definitions applicable to Article 5H. States that the tax is payable to the distributor in monthly payments, as detailed. Allows prepayment of the tax, as indicated, and requires a return quarterly. Directs the Department of Agriculture to give the Secretary a list of registered propane gas dealers and other requested information. Permits the Secretary to require that distributors report the amount of propane gas delivered, the persons receiving the gas, and the volume received. Includes recording and audit provisions. Makes conforming changes to GS 105-164.13, exempting propane gas taxed under Article 5H from retail sales and use tax.
Changes the tax rate to $.108 per gallon of propane gas, effective January 1, 2013; $.076 per gallon, effective January 1, 2014; and $.043, effective January 1, 2015.
Effective January 1, 2012, unless otherwise indicated.

Amends GS 113-130(4)e. as title indicates. Effective July 1, 2011.

Amends GS 113-378 to increase bond for oil and gas drilling to $10,000 (was $5,000). Directs DENR to study oil and gas exploration and to report findings and recommendations to the Environmental Review Commission no later than October 1, 2011.

Authorizes study as the title indicates. Allows the Legislative Research Commission (Commission) to investigate opportunities for local education agencies to receive grants to assist with implementation and requires the Commission to solicit input from interested parties. Allows an interim report to the 2012 session of the General Assembly and requires a final report to the 2013 General Assembly.

Enacts new GS 55A-16-24 for purposes indicated in title. Sets forth information required for inclusion in annual report, due dates for report, and mechanism for amending report. Effective October 1, 2011.

Enacts new GS 18B-1010 for purposes indicated in title. Requires that ABC permittee apply to register gaming event at least 10 days in advance of the event date and pay application fee of $100. Requires ABC Commission to notify ALE Division within 24 hours of the issuance of any registration for a gaming event. Permits a natural person who is at least 21 years old or a firm or an organization to serve as the sponsor of a gaming event. Prohibits an ABC permittee from serving as the sponsor. Requires that sponsor provide chips or markers to be used by patrons at the event and prohibits the sponsor from requiring or accepting money or any other thing of value from the patron or the ABC permittee for the chips or markers. All patrons must receive the same number of chips or markers. Requires sponsor to provide one or more prizes that may be obtained by patrons only by exchanging chips or markers. Limits individual prizes to no more than $2,500 and total prizes to $10,000 per event. Requires sponsor and permittee to ensure that only invited event patrons for the event are allowed to access the gaming area or to participate in the event. Requires that gaming area be limited to a private room or other area of the facility to which the general public is not permitted. Provides that violation of GS 18B-1010 by permittee or sponsor is a Class 1 misdemeanor. Requires ABC Commission to make a report regarding the act to the 2012 Regular Session of the 2011 General Assembly. Effective October 1, 2011. Provides that prosecutions for offenses committed on or before the effective date of the act are not abated or affected.

Enacts new GS 143-214.18 to provide that unless required by federal law or an imminent threat to public health or safety, temporary rules adopted on four specified dates and the permanent rule adopted on August 1, 2000, concerning protection and maintenance of riparian buffers in the Neuse and Tar-Pamlico River Basins, do not apply to a tract of land that (1) is private property; (2) was private property before August 1, 2000, and was platted and recorded in the register of deeds in the county where the property is located; and (3) the use of the property complies with the rules and other laws (except for the specified rule adopted on August 1, 2000) applicable to that property before August 1, 2000.

Enacts new GS 143B-279.18 providing that no environmental rule may be adopted unless, in addition to meeting other requirements, (1) “the best available scientific data” indicates the rule is needed to protect the environment, (2) the Department of Environment and Natural Resources (DENR) develops a specific plan for conducting a future environmental audit (a term defined in this provision), and (3) DENR prepares an economic impact statement for each affected county. Requires that environmental audit consider scientific developments occurring after the rule was adopted or the most recent environmental audit. Requires that DENR seek to amend the rule when indicated. Requires that at least 80% of the members of any stakeholder committee created to consider a proposed environmental rule be employed in the private sector, reside in the affected city or county, have experience with the subject of the rule, and understand the rule’s impact. Requires that remaining committee members be DENR staff or qualified scientists. Requires DENR to assist stakeholder committee during the rule-making process and afterward to determine whether the rule is being followed and its effectiveness. Effective September 1, 2011.

Makes the same or similar changes to various provisions in Part 2 (Annexation by Cities of Less than 5,000) and Part 3 (Annexation by Cities of More than 5,000) of Article 4A in GS Chapter 160A. Amends GS 160A-35 and 160A-47 (prerequisites to annexation; ability to serve; report and plans) to require that the municipality prepare an annexation plan that provides, among other things, for the extension of water mains, waterlines, and sewage lines prior to annexation. Clarifies that in areas where installation of sewer is not fiscally (rather than economically) feasible or would be environmentally damaging due to unique topography or environmental qualities of the area, the municipality may agree to provide septic system maintenance and repair service until sewer service is provided to similarly situated properties. Adds that the plans must call for construction to be completed within two years of the annexation’s effective date. Amends GS 160A-36 and 160A-48 (character of area to be annexed) to prohibit any municipality from annexing any territory in a county other than the municipality’s primary county without approval by the board of commissioners in the county where annexation is proposed. Requires approval to be granted after a public hearing conducted at least 25 days following advertisement. Does not authorize any annexation prohibited by local act. Defines primary county. Amends 160A-36(c)(1) to clarify that an area developed for urban purposes uses at least 65% (rather than 60%) of the total number of lots and tracts for residential, commercial, industrial, institutional, or governmental purposes and is subdivided as specified. Amends GS 160A-48(c), clarifying that an area developed for urban purposes must meet any of the following standards: (1) the area has a total resident population equal to at least three persons (rather than two and three tenths persons) for each acre of land included in the area’s boundaries, (2) the area has a total resident population equal to at least one person per acre of land included in the area’s boundaries and is subdivided into lots and tracts with 60% consisting of lots and tracts two (rather than three) acres or less in size and 70% (rather than 65%) of the lots and tracts are one acre or less, (3) the area is developed so at least 65% (rather than 60%) of the total number of lots and tracts are used for residential, commercial, industrial, institutional, or governmental purposes, or the area meets another standard under existing law.
Amends GS 160A-37 and 160A-49 (procedure for annexation) to require any municipal governing board to first pass a resolution identifying the proposed area as under consideration for annexation. States that the resolution may have a metes and bounds description or a map, remains effective for two years after adoption, and must be filed with the city clerk. Requires publication of the notice of adoption of the resolution of consideration once a week for two successive weeks, as specified. Allows the municipal governing body to adopt a resolution of intent to proceed with annexation of some or all of the area described in the resolution, at least one year after adoption of the resolution of consideration. Requires the resolution of intent to describe the boundaries of the areas considered for annexation. Requires that notice of public information meeting and public hearing be combined and include, among other items, information on becoming a customer and paying for water or sewer service, and a clear description of the distinction between the informational meeting and the hearing. Requires publication for the informational meeting once a week for at least two successive weeks prior to the meeting, with publication on the same day each week, as specified. Requires notice of the meeting to be mailed by certified mail (rather than first class mail) to certain property owners. Requires that a summary of the annexation and time lines, a summary of available statutory remedies, and the form for requesting extension of water and sewer lines by distributed at the public hearing. Requires the annexation ordinance to set the effective date for annexation on June 30 next following adoption of the ordinance (rather than current timelines). Prohibits any annexation ordinance from taking effect until a vote of the registered voters in the area to be annexed approves the annexation. Makes conforming changes by deleting provisions concerning resolutions of intent. Makes other conforming and clarifying changes. Amends GS 160A-37(f) to delete the provision subjecting property in the newly annexed territory to municipal taxes, as described. Makes clarifying changes to GS 160A-49(e). Amends GS 160A-49(f2), adding that taxation of real and personal property is subject to GS 160A-58.10 (tax of newly annexed territory) upon the effective date of annexation. Amends GS 160A-49(k) to direct the city to report to the Local Government Commission (Commission) on whether the extension of water and sewer lines was completed within the specified two year time period. Amends GS 160A-49(l), directing the city to report to the Commission on whether police protection, fire protection, solid waste, or street maintenance services were provided, as specified. Also authorizes a property owner to petition the Commission for abatement of certain city taxes, if the petition is filed no more than 120 days (rather than 90 days) after the 60-day period allowed for service extension. Makes additional conforming and technical changes.
Amends GS 160A-38(a) and GS 160A-50(a) (concerning appeals) to allow any person owning property in the annexed territory who believes the person will suffer material injury, as specified, to file a petition in the appropriate superior court within 90 days (rather than 60 days) following the passage of the annexation ordinance.
Enacts new subsection (k) to GS 160A-360, exempting a bona fide farm, as defined, from a municipality’s extraterritorial jurisdiction under Article 19 of GS Chapter 160A. Makes a clarifying change to GS 153A-340(b)(2). Enacts new GS 160A-58.29, prohibiting annexation of land being used for bona fide farm purposes, as defined, without written consent of the property owner.
Enacts new GS 160A-58.12, directing the Commission to oversee annexation occurring under Parts 2 and 3 of Article 4A in GS Chapter 160A, and to perform three listed functions. Directs a municipality to submit an approved annexation report to the Commission for review. Directs the Commission to determine the fiscal feasibility of the proposed annexation and to report findings within 60 days of receipt of the report. Details provisions for Commission delegation and fees. Directs the Commission to report to the regular session of the General Assembly every two years on seven pieces of information.
Requires any municipality annexing property on or after July 1, 2012, to hold the county harmless from a reduction in sales tax distribution under Subchapter VIII of GS Chapter 105 (Local Government sales and use tax). Specifies that revenues initially allocated from the sales and use tax to a municipality that annexes property on or after July 1, 2012 must be redistributed to the county where the municipality is located. Further specifies that the amount that must be redistributed is the amount of revenue received less the amount the municipality would have received based on the municipality’s boundaries as of June 30, 2012.
Enacts new Part 8, City-County Utility Service Plans, to Article 4A in GS Chapter 160A to authorize counties and cities to enter into binding agreements to provide utility services. Includes applicable definitions. Requires a city to enter into a utility services agreement with a county to be approved by ordinance by each government board, if the city wishes to annex any territory in which the county is providing county-owned utility services. Requires the agreement to be reviewed and updated at least every five years. Requires the agreement to contain at least five pieces of information. Requires a public hearing be held, as specified, before the boards adopt ordinances approving the agreement. Allows subsequent agreements, as detailed. Prohibits a municipality from annexing an area in which the county is providing county owned utility services unless the county waives its authority to negotiate a utility services agreement with one or more cities, or the utility services agreement has been adopted by the parties and has not been repealed. Specifies that participants in the agreement are limited to establishing utility services only in the described area.
Effective July 1, 2012.