Repeals GS Chapter 57C, the "NC Limited Liability Company Act" and enacts a new GS Chapter 57D, also to be known as the "North Carolina Limited Liability Company Act" (Act) to amend, restate, and make conforming changes to the Act as the title indicates.

Provides that new Chapter 57D and any other applicable state laws govern the internal affairs of every Limited Liability Corporation (LLC) and any liability that interest owners, managers, or other company officials may have for the liabilities of the LLC. Declares that North Carolina's superior courts have jurisdiction to enforce the provisions of this Chapter. Reserves the power to amend or repeal all or any part of this Chapter at any time to the General Assembly. Provides that the scope of any amendments to this Chapter applies to all LLCs, foreign LLCs, interest owners, managers, and other company officials and includes LLCs and foreign LLCs in existence, or persons having such interests and status, at the time any amendments are enacted. Makes each provision of this Chapter severable, so that if any provision or application of this Chapter is held to be invalid, its invalidity will not affect other provisions or applications of the Chapter that can be given effect without the invalid provision or application.

Sets out definitions of terms as they apply in this Chapter, including: (1) defines LLC as an entity formed under new Chapter 57D or former Chapter 57C that has not become another entity or form of entity by merger, conversion, or other means; (2) defines Limited liability company to mean an LLC or a foreign LLC; (3) defines person to mean an individual or an entity, and defines individual to mean a human being; and (4) provides that liabilities, debts, and obligations have the same meaning and are used interchangeably through this Chapter.

Specifies requirements for the filing of documents under this Chapter. Requires that a document filed by the Secretary of State of North Carolina (Secretary) must be filed as provided in GS Chapter 55D. Identifies persons who are authorized to file documents on behalf of an LLC under specified circumstances.

Authorizes the Secretary to make the use of certain application forms mandatory and provides that the Secretary may promulgate and furnish other forms for documents required or permitted to be filed under this Chapter, but their use is not mandatory.

Delineates fees to be collected by the Secretary (1) for filing documents with the Secretary, (2) for service of process on the Secretary (if the serving party prevails then the party may recover the process fee), and (3) for copying and certifying a copy of any filed document related to an LLC.

Provides that any person adversely affected by the failure or refusal of any person to execute and deliver any document to the Secretary that required to be filed under this Chapter may petition the superior court with appropriate jurisdiction as specified in this Chapter to direct the filing and execution of the document. If the court finds that it is proper for the document to be executed and delivered to the Secretary and the applicable company official has refused or failed to do so, then the court must order the Secretary to make the filing.

Permits anyone to apply to the Secretary for a certificate of existence for an LLC or a certificate of authorization for a foreign LLC. Specifies the information that the certificate or existence or authorization must contain. Provides that a certificate of existence or authorization issued by the Secretary may be relied upon as conclusive evidence as to the accuracy of its contents.

Declares that the Secretary has the power necessary to perform the duties required by this Chapter. Authorizes the Secretary to present written interrogatories to any LLC to enable the Secretary to determine if the LLC has complied with all applicable provisions of this Chapter. Indicates timelines (30 days from the request by the Secretary or within an additional time frame set by the Secretary) for a response from the LLC and requires that the answers to the Secretary's interrogatories must be full and complete, and made in writing and under oath. Makes it a Class 1 misdemeanor for a manager or other company official of an LLC to fail or refuse to respond within the prescribed time to answer truthfully and fully the interrogatories proposed by the Secretary. Provides that the interrogatories and the answers are not open to public inspection. Prohibits the Secretary from disclosing any facts or information gained from the interrogatories except to the extent applicable law requires the Secretary to disclose the information publicly, or the interrogatories or the answers are required as evidence in any proceedings by the state. Directs the Secretary to certify to the state Attorney General all interrogatories and answers that disclose a violation of any provisions under this Chapter which require or permit action by the Attorney General. Provides that the Secretary may impose penalties on an LLC for failing to answer interrogatories. Penalties include the suspension of an LLC's articles of organization or its certificate of authority to do business in this state. Requires the Secretary to immediately notify an LLC of its suspension by mail. Sets out criteria under which the Secretary is to reinstate a suspended LLC. Requires the LLC to fully comply with its obligations under new GS 57D-1-31, pay all state taxes, fees, and penalties that are due, and pay a $25.00 fee to the secretary to cover the cost of reinstatement. Directs the Secretary to immediately notify the LLC of the reinstatement by mail. Also provides criteria for disposing of the assets of an LLC when its articles of organization or certificate of authority have been suspended and the LLC has ceased to operate, but property remains in the name of the LLC or there remain future interests that may accrue to the LLC, its successor, or its interest owners.

Provides that an LLC is an entity distinct from its interest owners; has perpetual duration; and continues its existence after its dissolution subject to wind up under the provisions of new GS 57D-6-07. Provides that an LLC may engage in any lawful business but provides that an LLC engaging in a business subject to regulation under another North Carolina statute may be formed under this Chapter if not precluded by the provisions of the other statute. Provides guidelines regarding an LLC rendering professional services. Except as otherwise indicated in subsection (a) of new GS 57D-2-02, limits an LLC to rendering professional services only to the extent that it would be able to provide those services if it were a corporation, including complying as applicable with GS Chapter 55B and the statutes referenced in the definition of "professional service" in GS 55B-2(6). Provides rules of construction for applying the provisions of GS Chapter 55B and the statutes referenced in Chapter 55B to LLCs that render professional services, unless the context specifically requires a different construction. Asserts that nothing in new GS Chapter 57D alters or abolishes North Carolina's law applicable to the professional relationship and liabilities between a provider of professional services and the person receiving the professional services, the standards of professional conduct in rendering the professional service, or any responsibilities, obligations, or sanctions imposed by applicable licensing statutes. Provides criteria regarding the question of liability of a member or manager or other company official of a professional LLC.

Unless provided otherwise under this Chapter or limited under the operating agreement, an LLC has the same powers as an individual or a domestic corporation to do everything necessary to carry out its business.

Provides that one or more persons may form an LLC by delivering executed articles of organization to the Secretary for filing in accordance with this Chapter and Chapter 55D. Also provides for the formation of an LLC through the conversion of another eligible entity into an LLC under Part 2 of Article 9 of GS Chapter 57D. Declares that an LLC is formed at the time that the articles of organization filed by the Secretary become effective. Provides additional guidelines regarding the formation of an LLC.

Specifies the required content of the articles of organization, and indicates the process of amending the articles of organization. Permits an LLC to restate its articles of organization at any time. Requires that the restated articles of organization must be delivered to the Secretary for filing and indicates the required elements of the restatement to be filed with the Secretary.

Requires each LLC and each foreign LLC, except for professional LLCs governed by new GS 57D-2-02, to file annual reports with the Secretary on a form and in a manner as prescribed by the Secretary. Specifies information that must be included in each annual report. Directs the Secretary to notify LLCs of the annual report filing requirement. Provides schedule for submitting the annual report.

Provides for the scope, function, and limitations of the operating agreement that governs the internal affairs of an LLC, and the rights, duties, and obligations of (1) the interest owners, and the rights of any other persons to become interests owners, in relation to each other, the LLC, and their ownership interests or rights to acquire ownership interests, and (2) the company officials in relation to each other, the LLC, and the interest owners. Provides that the provisions of the operating agreement are severable and each provision will apply to the extent that it is valid and enforceable. Declares that the operating agreement may not supplant, vary, disclaim, or nullify specified provisions of this Chapter or the application of those provisions. Provides that except as otherwise provide in this Chapter or other applicable law, the laws of agency and contract govern the administration and enforcement of operating agreements.

Identifies persons deemed to be a party to the operating agreement and other persons subject to or having rights under the operating agreement. Provides that a person does not have to be an interest owner to be a party to the operating agreement. Provides that any person bound by the operating agreement is also bound by any adopted amendment to the operating agreement. Indicates that an operating agreement may contain specified remedies applicable to the breach of the operation agreement or the occurrence of a specified event. Provides that unless otherwise specified in the operating agreement, an interest owner or other person, who is a party or bound by the operating agreement, will not be liable to the LLC, an interest owner, or a party to the operating agreement for that person's reliance on the provisions of the operating agreement.

Requires each LLC to maintain a registered office and registered agent as required under Article 4 of GS Chapter 55D and provides that each LLC is subject to service on the Secretary under that Article.

Provides criteria for the admission of members to an LLC and for becoming an economic interest owner. Also provides criteria for ceasing to be a member of an LLC, including death and a declaration of incompetence.

Requires the approval of all members to (1) adopt or amend an operating agreement, (2) admit any person as a member, (3) transfer in one transaction or series of related transactions all or substantially all of the assets of the LLC prior to the dissolution of the LLC, other than in the ordinary course of business, (4) dissolve the LLC under circumstances other than those for which an LLC may be dissolved under Article 6 of this Chapter, (5) convert the LLC into a different eligible entity under Article 9 of this Chapter, or (6) merge the LLC with or into another eligible entity under Article 9 of this Chapter.

Specifies the rights of members to inspect and review information including the articles of organization, tax returns, and other information from which the status of the business and financial condition of the LLC may be ascertained. Permits the inspection rights and rights to copy LLC records to be exercised through a member's agent.

Provides standards of conduct for managers in the discharge of their duties in managing the LLC and conducting its business. Provides that the management of an LLC and its business is vested in the managers, and that all members are managers of the LLC, as well as any person or persons designated as a manager in the operating agreement. However, the operating agreement may provide that members are not managers by virtue of their status as members and may also designate that the LLC is to be managed by company officials who are not managers. Provides additional criteria regarding terms of service as a manager and the duties of company officials. Directs mangers to manage the LLC and conduct its business in accordance with the operating agreement and asserts that a manager acting in compliance with this section is not liable to the LLC for any act or omission as a manager.

Attaches no liability to a person who is an interest owner, manager, or other company official for the obligations of the LLC solely because of their position in the LLC. Provides criteria for when indemnification is required for an LLC member, manager, or other company official and criteria when the LLC must reimburse a person who is or was a member for any payment made by that person, in the authorized conduct of the LLC's business or preservation of the LLC's business or property.

Also provides criteria for contributions by an interest owner in any form including money or other property, or services rendered, for interim distribution to interest owners before the dissolution and winding up of an LLC, and restrictions on making distributions. Provides additional information on liability for contributions, liability for wrongful distributions distribution in kind, and the right to distribution.

Categorizes an ownership interest as personal property. States that an economic interest may be transferred in whole or part; however, the transfer, in whole or part, of an economic interest does not entitle the recipient of the transfer to become a member or exercise any rights of a member other than to receive the economic interest. Provides for the rights of a judgment creditor of an interest owner. Provides additional criteria regarding the transfer of ownership interests with respect to an LLC. Declares that there is no right for an interest owner to voluntarily withdraw capital or terminate obligations except as may be required by this Chapter or other applicable law.

Specifies occurrences which dissolve an LLC. Provides the grounds and procedure for a judicial dissolution of an LLC. Authorizes the court in a proceeding to dissolve an LLC, to create a receivership pending the court's decision on dissolution, and provides specifications regarding a decree of judicial dissolution and the court's authority to direct the winding up of the LLC. Also provides acts or omissions that serve as grounds to permit the Secretary to administratively dissolve an LLC. Allows an LLC dissolved under this section to apply to the Secretary for reinstatement.

Directs an LLC to wind up after its dissolution and provides that the winding up may include continuing the business of the LLC for a period of time.  Elaborates on the process of winding up an LLC after its dissolution, identifying the process for determining the person or persons charged with winding up the LLC. Provides that during the winding up of an LLC, the LLC's assets are to be applied first to creditors and the balance to the interest owners as distributions made in the manner provided in GS 57D-4-03.

Requires the LLC to deliver articles of dissolution to the Secretary for filing upon the dissolution of the LLC. Specifies that the articles of dissolution must contain (1) the name of the LLC, (2) the effective date of the dissolution, and (3) any other information the LLC elects to provide.

Permits a dissolved LLC with articles of dissolution, a certificate of dissolution, or an effective decree of dissolution filed by the Secretary, to dispose of known claims against it by providing claimants with a written notification of the dissolution with specified content. Also provides for the publication of notice of an LLC's dissolution to request that persons with claims against the LLC present those claims as prescribed in the notice. Provides for the content requirements of the notice.

Provides criteria for the enforcement of claims against a dissolved LLC under new GS 57D-6-10 or GS 57D-6-11, and provides that neither of the proposed statutes extends any applicable period of limitation. Describes the procedures for court proceedings for contingent claims against a dissolved LLC.

GS 57D-7-01, (Authority to transact business), establishes that a foreign LLC may only transact business in NC after obtaining a certificated of authority (certificate) from the Secretary. Provides a list of 12 activities, which when done are not considered to be the transaction of business by a foreign LLC, including selling property or services through independent contractors and owning real or personal property.

Enacts GS 57D-7-02, (Consequences of transacting business without authority), providing that no foreign LLC may maintain a proceeding in any court of NC without first obtaining a certificate of authority.  Such an issue must be raised by motion and determined by the trial judge before trial begins. Provides that a foreign LLC failing to obtain a certificate is liable to NC for any amount of fees and taxes that would have been imposed by law had the foreign LLC properly applied for and received permission to transact business in NC.  A civil penalty of $10 for each day that a foreign LLC transacts business will be assessed, not to exceed $1,000 per year. Such penalty funds are to be sent to the Civil Penalty and Forfeiture Fund.  Establishes that a failure of the LLC to obtain a certificate does not otherwise impair or invalidate its acts or prevent it from defending any proceeding in NC. Provides that the Secretary requires every foreign LLC transacting business in NC to comply with the provisions of this Chapter. Authorizes the Secretary to undertake investigations necessary to determine compliance of this Chapter.

GS 57D-7-03, (Application for certificate of authority), states that a foreign LLC may apply for a certificate by submitting an application to the Secretary.  Provides what information must be provided in the application, including, the name of the foreign LLC, the jurisdiction under whose law it is organized, and the names, titles, and business addresses of the principal company officials.  The foreign LLC will also submit with the application for certificate, a certificate of existence, or a similar document, authenticated by the secretary of state or other proper official who has custody of LLC records in the jurisdiction where the foreign LLC is organized.  When the Secretary deems the application as conforming to law and all applicable taxes and fees have been paid, the application and certificate of existence will be filed, and a certificate will be issued to transact business in NC and sent to the foreign LLC.

GS 57D-7-04, (Amended certificate of authority) provides that a foreign LLC must amend its certificate if its name or jurisdiction of organization changes. A foreign LLC can apply for an amended certificate by submitting an application to the Secretary that sets forth the name, organizing jurisdiction name, the date it was originally authorized to transact business in NC, and a statement of the change(s) being made.  Provides that the requirements of GS 57D-7-03 are applicable when applying for an amended certificate.

GS 57D-7-05, (Effect of certificate of authority), establishes that a certificate authorizes the foreign LLC to transact business in NC and to qualify as an executor, administrator, guardian, or trustee under the will of any person. If qualifying as a testamentary trustee or executor the foreign LLC must appoint a process agent and file that appointment with the court per GS 28A-4-2.  Provides that an LLC is held to the same duties, restrictions, penalties, and liabilities as LLCs of like character.

GS 57D-7-06, (Registered office and registered agent of foreign LLC), provides that each authorized foreign LLC must maintain a registered office and agent pursuant to GS 55D, Article 4.

GS 57D-7-20, (Withdrawal of foreign LLC), requires a foreign LLC to obtain a certificate of withdrawal from the Secretary before being able to withdraw from NC. In order to obtain a withdrawal certificate, the foreign LLC must submit an application to the Secretary stating, among other things, that the foreign LLC revokes its authority of its registered agent to accept service of process and that it is not transacting business in NC and it surrenders its authority to transact business in NC.   When the Secretary deems the application for withdrawal as conforming to law, the application and certificate of withdrawal will be filed and sent to the foreign LLC.  Provides for the service of process after the withdrawal of the foreign LLC is effective.

GS 57D-7-21, (Withdrawal of foreign LLC by reason of a merger, consolidation, or conversion; qualification of successor), provides that if a foreign LLC ceases to exist as a result of merger, consolidation, or other reorganization, the resulting entity must apply for a certificate of withdrawal for the foreign LLC. If the resulting entity is not authorized to transact business in NC, the application for withdrawal must state and otherwise modify the described information required pursuant to GS 57D-7-20(b).    When the Secretary deems the information submitted by the resulting entity conforms to law, the application and certificate of withdrawal will be filed and sent to the foreign LLC.  Provides for the service of process after the withdrawal of the foreign LLC is effective.

GS 57D-7-22, (Authority of Attorney General), establishes that the Attorney General (AG) can maintain an action to restrain a foreign LLC from transacting business in NC, in violation of this Article.

GS 57D-7-30, (Grounds for revocation), provides that the Secretary can commence a proceeding to revoke the certificate of a foreign LLC in certain situations, including, the foreign LLC is delinquent in delivering its annual report, or the foreign LLC is exceeding the authority conferred upon it by this Chapter.  Provides that the Revenue Act, relating to the suspension of the certificate, is not preempted by this  section.

GS 57D-7-31, (Procedures for and effect of revocation), provides that if the Secretary determines that one or more grounds exist for revocation under GS 57D-7-30, the Secretary will mail to the foreign LLC a written notice of that determination. If the grounds for revocation are not corrected to the satisfaction of the Secretary within 60 days after having received notice, the Secretary can revoke the foreign LLCs certificate, filing the revocation and sending a copy of it to the foreign LLC. After which, the authority of the foreign LLC to transact business in NC ceases. Such revocation results in the Secretary becoming the agent for service of process for the foreign LLC; however the authority of the registered agent of the foreign LLC is not terminated by the revocation.   A new certificate will not be granted until the grounds for revocation have been substantially corrected to the satisfaction of the Secretary.

GS 57D-7-32, (Appeal from revocation), enacts that a foreign LLC can appeal the Secretary's revocation of its certificate to the Superior Court of Wake County within 30 days after the revocation is mailed to the foreign LLC.  The foreign LLC must file a petition with the court and with the Secretary, requesting to set aside the revocation. Provides the further process and procedure of the appeal. States that any final decision by the court can be appealed as in other civil proceedings.

GS 57D-7-33 (Inapplicability of Administrative Procedure Act), states that the Administrative Procedure Act does not apply to proceedings or appeals provided for in GS 57D-7-30 through GS 57D-7-32.

GS 57D-8-01, (Member derivative actions), establishes the reasons and conditions by which a member may bring a derivative action. Defines, for the purpose of this article, the terms "derivative action" and "derivative proceeding".

GS 57D-8-02, (Stay of proceedings), provides that if the LLC commences an inquiry into the allegations in the derivative suit, the court can stay the derivative proceeding.

GS 57D-8-03, (Dismissal), provides the processes and procedures for the dismissal of a derivative proceeding, including, a court appointed panel composed of one or more independent persons tasked with determining whether the derivative proceeding is in the best interest of the LLC.  The plaintiff bears the burden of proving that the suit is in the interest of the LLC.

GS 57D-8-04, (Discontinuance or settlement), establishing that a derivative proceeding cannot be discontinued or settled without the court's approval.  On the court's determination that a proposed discontinuance or settlement will substantially affect the interest of the LLC's members, a notice will be given to the members who would be affected. The manner, form of the notice, and who will bear the cost of the notice, will be determined by the court.

GS 57D-8-05, (Payment of expenses), provides what the court may do on the termination of the derivative proceeding, including, but not limited to, ordering the LLC to pay the plaintiff's expenses, including attorney's fees.

GS 57D-06, (Applicability to foreign LLCs), provides that except for the matters governed by GS 57D-8-02, GS 57D-8-04, and GS 57D-8-05,  the matters of any derivative proceeding in the right of a foreign LLC will be governed by the law of the jurisdiction of the LLC.

GS 57D-8-7, (Privileged communications), provides that in any derivative proceeding, no member is entitled to access to any communication within the scope of the LLC's attorney-client privilege that is not otherwise accessible in a proceeding other than on behalf of the LLC.

GS 57D-9-01, (Definitions), provides the terms and definitions to be used in this article, including Articles of organization and conversion, converting entity, converting LLC, eligible entity, merging entity, merging LLC, and surviving entity.

GS 57D-9-20, (Conversion), provides the requirements by which an eligible entity, other than an LLC, may convert to an LLC.

GS 57D-9-21, (Plan of conversion), establishes that a converting entity must approve a written plan of conversion which includes specified information such as, but not limited to, the terms and conditions of the conversion and the name the entity will have after an effective conversion. Provides that certain provisions of the plan can be made on facts objectively ascertainable outside the plan of conversion. Plans of conversions must be approved in accordance with the law governing the organizations and internal affairs of the converting entity.  Provides when the plan of conversion can be amended or abandoned.

GS 57D-9-22, (Filing articles of organization and conversion by the converting entity), establishes that after the plan of conversion has been approved by the converting entity, the entity must deliver articles of organization and conversion to the Secretary for filing.  Specifies the information the articles must contain. Details what must happen if a plan of conversion is abandoned after delivery to the Secretary but before the conversion is effective. Requires certificates of conversion to be registered, pursuant to GS 47-18.1.

GS 57D-9-23, (Effective date; Effects of conversion), provides  when the conversion is final and takes effect as well as what occurs when the conversion is final, including, but not limited to, the converting entity ceases its prior form or organization and continues as the surviving entity and all liabilities  of the converting entity continue as liabilities of the surviving entity.

GS 57D-9-30, (Conversion), provides the requirements by which a LLC may convert to a different eligible entity.

GS 57D-9-31, (Plan of conversion), establishes that a converting LLC must approve a written plan of conversion which includes specified information such as, but not limited to, the terms and conditions of the conversion and the name the entity will have after an effective conversion. Provides that certain provisions of the plan can be made on facts objectively ascertainable outside the plan of conversion.  The converting LLC must provide a copy of the plan of conversion to each member of the converting LLC prior to its approval; all members must approve the plan of conversion.  Provides when the plan of conversion can be amended or abandoned.

GS 57D-9-32, (Articles of conversion), establishes that after the plan of conversion has been approved by the converting entity, the entity must deliver articles of organization and conversion to the Secretary for filing.  Specifies the information the articles must contain. Describes what must happen if a plan of conversion is abandoned after delivery to the Secretary but before the conversion is effective. Requires certificates of conversion to be registered, pursuant to GS 47-18.1.

GS 57D-9-33, (Effects of conversion), provides what occurs when the conversion is final, including, but not limited to, the converting entity ceases its prior form or organization and continues as the surviving entity, and the title to all real estate and other property owned by the converting LLC continues to be vested in the surviving entity without reversion or impairment. The surviving entity, if not a domestic corporation or a domestic limited partnership, is deemed to consent to being served with process in this State for enforcement of specified obligations and rights and as having appointed the Secretary as its agent for service of process in any such proceeding.

GS 57D-9-40, (Merger), establishes that an LLC may merge with one or more eligible entities if specified requirements are met.

Gs 57D-9-41, (Plan of merger), establishes that a merging entity must approve a written plan of merger which includes specified information such as, but not limited to, the terms and conditions of the merger and the name of the surviving entity. Provides that certain provisions of the plan can be made on facts objectively ascertainable outside the plan of merger. Plans of merger must be approved in accordance with the law governing the organizations and internal affairs of the converting entity.  The merging entity must provide a copy of the plan of merger to each member of the merging entity prior to its approval; all members must approve the plan of merger.  Provides when the plan of conversion can be amended or abandoned.

GS 57d-9-42, (Articles of merger), establishes that after the plan of merger has been approved by the merging entity, the entity must deliver articles of merger to the Secretary for filing.  Specifies the information the articles must contain. Details what must happen if a plan of merger is amended or abandoned after delivery to the Secretary but before the merger is effective.  Merger becomes effective when the articles of merger filed by the Secretary of State become effective.  Requires certificates of merger to be registered, pursuant to GS 47-18.1.

GS 57D-9-43, (Effects of merger),  provides what occurs when the merger is final, including, but not limited to, the merging entity ceases its prior form or organization and merges into the surviving entity and the title to all real estate and other property owned by the merging entity continues to be vested in the surviving entity without reversion or impairment. The surviving entity, if not a domestic eligible entity, is deemed to consent to being served with process in this State for enforcement of specified obligations and rights and as having appointed the Secretary as its agent for service of process in any such proceeding.

GS 57D-10-01, (Purpose; public policy), states that the purpose of this Chapter is to provide a flexible framework under which one or more person may organize and manage one or more businesses. Provides that the policy of this Chapter is to give maximum effect to the principle of freedom of contract and the enforceability of operating agreements.

GS 57D-10-02, (Rules of construction; coordination with other law), establishes that the rule of law and equity supplement this Chapter.  Statutes in derogation of the common law are not to be strictly construed, in regards to this Chapter. Provides that this Chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, with specified limitations.  Provides the limitations of this Chapter and issues of applicability.  Establishes the applicable rules of construction for the Chapter.

GS 57D-11-01, (Applicability of act), provides that this Chapter applies to every LLC, regardless of time of formation,  and the interest owners of every LLC, unless otherwise excepted by this Chapter.

GS 57D-11-02, (Application to qualified foreign LLCs), provides that a foreign LLC that was authorized to transact business in this State immediately before the repeal of GS Chapter 57C is subject to this Chapter but is not required to obtain a new certificate of authority.

GS 57D-11-03, (Saving provisions), provides that LLCs formed before January 1, 2014, will not be impaired by the repeal of GS Chapter 57C or the enactment of any part of this Chapter. Provides the procedures for dealing with proceedings commenced before January 1, 2014, as well as dissolutions of LLCs that occurred before that date. Provides that any references in articles of organizations or operating agreements of LLC made before January 1, 2014 concerning GS Chapter 57C are deemed, where possible, to be made to the corresponding provisions of GS Chapter 57D.

Amends GS 55-1-40 and GS 55A-1-40, making conforming changes.

Amends GS 55A-11-02(a), making technical and conforming changes.

Amends GS 55D-1, making clarifying and conforming changes.

Amends GS 55D-10, making conforming and clarifying changes.

Amends GS 55D-13(c), GS 55D-15, and GS 55D-17, making conforming changes.

Amends GS 55D-20, deleting the provision concerning and allowing "low-profit limited liability companies", as well as deleting the naming requirements for such companies. Provides an exception to the naming requirement that requires "limited liability company", "L.L.C.", "LLC", or other specified abbreviations to used in the name, allowing any limited liability company whose name contained the words "low-profit limited liability company" or the abbreviation "L3C" pursuant to subdivision (6) prior to its repeal on January 1, 2014, may continue to use that name unless the limited liability company amends its articles of organization to change its name. Makes conforming changes.

Amends GS 55D-21(d), GS 55D-22(b), and GS 55D-31(c), making conforming changes.

Amends GS 59-32 and GS 59-102, making clarifying and conforming changes.

Amends GS 66-260(11)(n), GS 66-352(a), GS 66-353, making conforming changes.

Amends GS 87-10.1, GS 87-22.2, GS 87-44.2 and GS 89C-18.1, making clarifying and technical changes.

Amends GS 89F-6, making a conforming change.

Amends GS 105-114.1(a)(4), providing that the governing law is defined as the law under which a LLC is organized (was, LLC's governing law is determined under GS 57C-6-05 or GS 57C-7-01, as applicable).

Amends GS 105-122.1, GS 105-130.2(11), and GS 105-134.1(7a), making conforming changes.

Amends GS 105-163.1(8), making a technical and clarifying change.

Amends GS 117-18.1(a)(4), making a conforming change.

Amends GS 25-9-406(i), (Inapplicability), providing that this section does not apply to an assignment of a health-care-insurance receivable or an interest in a partnership or LLC.

Amends GS 25-9-408(f), (Inapplicability), providing that this section does not apply to an assignment of an interest in a partnership or LLC.

Except as otherwise provided, this act becomes effective January 1, 2014.

Requires the Department of Labor (Department) to study the current standards for riveted or welded repairs or alternations to historical boilers and the establishment of licensure requirements for historical boiler operators. Requires that the Department report to the 2014 Regular Session of the 2013 General Assembly.

Appropriates $20,000 for 2013-14 from the General Fund to the Department for conducting the study.

Part 3 of GS Chapter 66, Article 45, applies to the Regulation of Sales and Purchases of Metals.

Amends GS 66-420 of Part 3 to modify the definition of "cash card system" to mean a payment system, which pays in cash or in a form other than cash, and when the payment is in cash, (1) takes a picture of the seller at the time the payment is received, and (2) uses an automated cash dispenser such as an Automated Teller Machine (was, a payment system that takes a photograph of the receipt regardless of whether payment was in cash or some other form).

Amends GS 66-424(a) to prohibit a secondary metals recycler from purchasing any central air conditioner condensers that are not attached to a unit. Provides an additional exception to the prohibited activities and transactions under this section to permit a secondary metals recycler to purchase central air conditioner evaporator coils or condensers not attached to a unit, or catalytic converters not attached to a vehicle, from a seller with a purchase receipt or other proof of ownership.Provides that"central airconditioner evaporator coils" as used in this subsection and in subdivision (11) of GS 66-421(b) does not include coils from a window air conditioning system if the coils are contained within the system itself or a coil from a vehicle condenser. Makes an additional conforming change to GS 66-421(b)(11).

Amends GS 20-28, establishing that any person who drives with their licensed revoked is guilty of a Class 1 misdemeanor.  Except that in cases where a person satisfies the criteria of GS 20-28(a1) or whose drivers license was revoked pursuant to GS 20-24.1 is only guilty of an infraction.  Other specified situations, including having a license revoked for an impaired driving license revocation as defined in GS 20-28.2(a), or pursuant to GS 20-16(a)(5), or the person was charged with violating any restriction of GS 20-179.3, as well as, any restriction relating to the installation or use of an ignition interlock, pursuant to GS 20-17.8, will result in the person's license being revoked for an additional period of one year for a first offense, two years for the second offense, and permanently for a third or subsequent offense (was, upon conviction of the Class 1 misdemeanor a license was revoked for an additional one year period for a first offense, two years for the second offense, and permanently for a third). Provides that a violation of driving while license revoked, that does not result in an additional period of license revocation, will not be considered a moving violation. Provides that when a license is revoked where the license was originally revoked for impaired driving, license revocation, as defined in GS 20-28.2(a), or charged with violating 20-28(a) based on a violation of GS 20-179.3, or in regards to any restriction relating to the installation or use of an ignition interlock pursuant to GS 20-17.8, the license may  be restored conditionally by the DMV pursuant to GS 20-28(c4).

Amends GS 20-28.1(a), setting out, for the purposes of this subsection, offenses which are not considered moving offenses, including a violation of GS 20-28(a1), a violation of GS 20-28(a) that does not require an additional period of license revocation, and a violation of GS 20-7 for operating a motor vehicle without an operator's license. Amends GS 20-20.1(b)(3), providing that a person is eligible for a limited driving privilege if certain specified conditions apply, including that the person's underlying offense is not an impaired driving license revocation under GS 20-28.2(a), a violation of a restriction of GS 20-179.3, or in regards to any restriction relating to the installation or use of an ignition interlock pursuant to GS 20-17.8. Makes clarifying changes.

Effective December 1, 2013, applying to offenses committed on or after that date.

 

 

 

Amends GS Chapter 116 by adding a new Article 35, (North Carolina Optometry Education Grant Program). Provides the terms and definitions to be used in this Article, including, academic year, approved institution, authority, optometry education program.

Establishes the North Carolina Optometry Education Grant Program, with the purpose of providing grants to qualified NC students pursuing doctorates of optometry degrees. Provides criteria by which a student can become eligible for the grant, including, but not limited to, qualifying as a NC resident for tuition purposes under GS 116-143.

Establishes the administration of the grants and provides that the amount of the grant will be $11,000 for each student per academic year. In cases of shortfalls in the program, students will receive a pro rata share of funds. Any remaining funds will revert to the General Fund. The number of eligible students enrolled in approved institutions and the State funds collected by those students will be documented and reported to the Senate and House of Representatives Appropriations Subcommittee on Education and the Joint Legislative Education Oversight Committee.

Appropriates from the Genreal Fund to the State Education Assistance Authority $825,000 for the 2013-14 fiscal year and $825,000 for the 2014-15 fiscal year to fund the grant program.

Effective July 1, 2013, applying to the 2013-14 academic year and each subsequent academic year.

Identical to H 452 filed on 3/27/13.

Section 1 of this act appropriates $10 million for the 2013-14 fiscal year and $10 million for the 2014-15 fiscal year from the General Fund to the Department of Public Instruction to provide grants to local school administrative units (LEAs) for school resource officers (SROs) in elementary and middle schools. Permits LEAs to use the funds to employ or train SROs or to do both. Provides that the appropriated funds will be matched on the basis of $2.00 in state funds for every $1.00 in local funds and must be used to supplement, not supplant, state, local, and federal funds for SROs. Requires the State Board of Education (SBE) to include need-based considerations in its criteria for awarding the grants to LEAs. Also directs the SBE to give lower priority to the LEAs that have received grants for additional school psychologists, guidance counselors, and social workers under Section 2 of this act.

Section 2 of this act appropriates $5 million for the 2013-14 fiscal year and $5 million for the 2014-15 fiscal year for grants to LEAs to fund additional school psychologists, guidance counselors, and social workers. Requires that these funds be matched on the basis of $1.00 in state funds for every $1.00 in local funds, and must be used to supplement, not supplant, state, local, and federal funds used for school psychologists, guidance counselors, and social workers. Requires the State Board of Education (SBE) to include need-based considerations in its criteria for awarding these grants to LEAs. Also directs the SBE to give lower priority to the LEAs that have received grants for additional SROs under Section 1 of this act.

Enacts new GS 115C-316.1. Subsection (a) requires that school counselors implement a comprehensive developmental school counseling program in their schools and spend at least 80% of their time providing direct services to their students. Specifies that coordination of standardized testing is not a direct service. Identifies activities, services, and interactions with students and parents that constitute direct services.

Subsection (b) directs counselors to spend the remainder of their work time on school counseling program support activities consisting of professional development, consultation, collaboration, training, and program management and operations. Declares that counseling support activities does not include the coordination of standardized testing. Does provide that school counselors may assist other staff with the coordination of standardized testing.

Directs each local board of education to develop a transition plan for implementing subsection (b) before the 2013-14 school year using existing resources and reassigning duties within its schools. Directs the SBE to distribute guidelines to all LEAs on the implementation of subsection (b) of this section.

Appropriates $2 million for the 2013-14 fiscal year and $2 million for the 2014-15 fiscal year to provide grants to LEAs for the costs of placing panic alarm systems in schools. Calls for these funds to be matched on the basis of $1.00 in state funds for every $1.00 in local funds, and requires that these funds be used to supplement and not to supplant state, local, and federal funds for panic alarm systems. Directs the SBE to include need-based considerations in its criteria for awarding these grants to LEAs. Requires every public school to have a panic alarm system that connects with the nearest local law enforcement agency in the school's emergency response plan, effective July 1, 2015.

All of the following provisions apply beginning with the 2013-14 school year.

Enacts new GS 115C-105.49, requiring that at least every two years, each LEA is to conduct a system-wide school safety and school lockdown exercise with the local law enforcement agencies that are apart of the LEAs safety plan. Enumerates the purposes of this exercise. Requires that each school hold a full, school-wide school safety and lockdown exercise with the local law enforcement agencies that are part of the school's safety plan.

Enacts new GS 115C-105.50 to require each LEA to prepare schematic diagrams of its school facilities and provide the diagrams and keys to the main entrance of each school to local law enforcement agencies before January 1, 2014. Requires the LEAs to supply local law enforcement agencies with updates when substantial modifications to their facilities are made. Directs the Department of Public Instruction (DPI) to develop, in consultation with the Department of Public Safety, standards and guidelines for the preparation and content of the schematic diagrams and any necessary updates. Declares that the schematic diagrams are not public records under GS Chapter 132.

Enacts new GS 115C-105.51 to require each LEA to develop and operate an anonymous tip line. Directs DPI to develop standards and guidelines for the development, operation, and staffing of tip lines in consultation with the Department of Public Safety. Directs DPI to provide information on grants available for this purpose.

Amends GS 115C-105.27. Provides that school improvement team meetings are open meetings under the open meeting requirements of Article 33C of GS Chapter 143; however, requires that the school safety components of the plan be in closed session in accordance with GS 143-318.11(a)(8) and directs the school principal to ensure this requirement is met.

Provides that although the school improvement plan is a public record subject to GS Chapter 132, the school safety components of the improvement plan are not a public record subject to GS Chapter 132. Requires that the school safety components of the school improvement plan be reviewed by the superintendent, and by the local board of education in closed session before there is a vote to accept the school's improvement plan under GS 115C-105.25(d). Prohibits including the local board's findings on the safety components of the plan or the safety components of the plan in the minutes of the board. Provides that any employee, parent, or other interested person or organization is encouraged to notify the superintendent of any concerns with compliance with this section. Provides that the superintendent will make a good faith effort to investigate the concern and provide a written response to the concern if so requested. Makes additional organizational and technical changes.

Makes a conforming change to GS 143-318.11(a)(8) to add the formulation and adoption of school safety components of a school improvement plan to those activities by a public body that may be conducted in a closed session.

Enacts new GS 115C-105.53 to direct DPI, in consultation with the Department of Public Safety through the NC Center for Safer Schools to adopt policies regarding the placement of school crisis kits in schools and on the content of those kits.  Specifies the minimal contents of the kits.  Requires the principal to coordinate with law enforcement agencies that are a part of the school's safety plan to determine appropriate placement of one or more crisis kits in the school.

Directs the Department of Public Safety, through the NC Center for Safer Schools, and in partnership with the Department of Justice and DPI, to develop school emergency training programs for school employees and provide them to schools as soon as practical.

This act becomes effective July 1, 2013.

 

Amends GS 90-96(a), providing that whenever a person who has not been previously convicted of a Class A1 misdemeanor under GS 14 (Criminal Law) or a substantially similar offense involving assaultive conduct under federal law or another states' laws, pleads guilty to or is found guilty of either (1) a misdemeanor under this Article involving the possession of a controlled substance included within Schedules I through VI or by possessing drug paraphernalia, as prohibited by GS 90-113.22, or (2) a felony under GS 90-95(a)(3) (possession of a controlled substance), the court will, without entering a judgment of guilt and with the consent of the person, defer further proceedings and place the person on probation with reasonable terms and conditions as may be required.

Effective December 1, 2013, and applies to persons pleading guilty to, or found guilty of, offenses committed on or after that date.

Enacts new GS 6-19.3 giving the presiding judge the discretion to award costs, reasonable attorneys' fees, or both, in any civil action. Requires that the determination to award either fees or costs be made in a written order including findings of fact detailing the basis for the award. Requires counsel of record in actions subject to the awarding of attorneys' fees to keep accurate, up to date records of the hours worked on the matter. Allows the court to decline to award fees to a prevailing defendant or to reduce the fee award, if the court finds that the defendant's costs are excessive, speculative, or not adequately document. Provides that the statute does not apply when a specific statute otherwise addresses an award of attorneys' fees, except GS 6-21.1 which applies concurrently. Makes conforming changes to GS 6-21.5 (attorney's fees in certain nonjusticable cases).

Applies to civil actions filed on or after October 1, 2013.

Amends GS 115C-84.2regarding the opening and closing dates for public schools. Sets the opening date for students to be no earlier than the first Tuesday following Labor Day and the closing date for students to be no later than the last Friday before Memorial Day. Provides that these opening and closing deadlines do not apply to year-round schools.

Requires that first semester coursework conclude and final exams for the first semester coursework be given before the students' winter break. Deletes provisions regarding waivers of calendar requirements to accommodate anticipated make-up days due to school closings. Deletes provisions regarding exemption from the required opening and closing dates for schools operating under a modified calendar.

Amends GS 115D-20 to require that the calendar devised by the trustees for each of the state's community colleges is to provide that all first semester coursework conclude and final exams be given before the students' winter break.

Effective when the act becomes law and applies beginning with the 2013-14 school year.

Amends SL 2011-259 to direct the State Board of Education (SBE) toimplement a Dropout Prevention and Recovery Pilot Program (pilot program)in New Hanover County Schools, Charlotte-Mecklenburg Schools, and two additional local school administrative units (LEAs) selected by the SBE(was, directed the SBEto implement a three-year Dropout Recovery Pilot Programin New Hanover County and three LEAs selected by the SBE). Directs the SBE to also select four charter schools, one of which is located in Mecklenburg County,at which to establish pilot programs. Makes conforming changes toreflect the addition of the charter schools to the pilot program.Requires the participating schools to be accredited by the Southern Association of Colleges and Schools as an indicator of quality instructional programming.

Adds to the minimal requirements for the pilot program that it must include (1) a focus on serving a defined population of at-risk students who have dropped out of school or are likely to dropout in the future; (2) support services including professionals trained to assist students in removing barriers to attending school and graduating; (3) instructional models that are self-paced and mastery-based; and (4) individualized graduation plans to guide students to high school graduation.

Amends the requirements for collecting student performance data to direct the SBE to develop and implement an alternative student performance accountability method to evaluate the performance effectiveness ofthe schools in thepilot program (was, collect data and student performance results from the pilot program and the participating LEA to use in evaluating the success of the pilot program as a whole). Directs the SBE to use the data and student results collected from the pilot program schools in developing an alternative accountability method to apply statewide and in evaluating the success of the pilot program as a whole. Specifies requirements to be included in thealternative accountability method developed by the SBEregarding the application of the method to eligible schools.

Directs theSBE to develop and implement the alternative method of accountability to assess the performance of pilot program schools to applybeginning with the 2014-15 school year.

Authorizes the SBE to provide, if available, an additional per pupil funding allotment to LEAsto transfer to schools participating in the pilot program which demonstrate that the average daily membership (ADM) is at minimum 30% higher than the ADM of the first month of the school year. Requires that any additional allotments made before the end of the first semester of the school year are to be based on December's ADM.

Provides thata pilot program may be operated through a charter school authorized by the SBE, as well as through the SBE or as a program of the contracting LEA. Clarifies that the pilot program may be an alternative school within the LEA.

Amends the effective date of SL 2011-259 toJuly 1, 2013 (was, July 1, 2011).

Adds reporting requirement directing the SBE to report to the Joint Legislative Education Oversight Committee on the implementation of the pilot program and the alternative student performance accountability method required by Section 5A(a) of SL 2011-259, as amended by this act, on orbefore March 15, 2014.

Provides that this act is effective when it becomes law and applies to schools selected by the SBE on or after July 1, 2013.

Amends GS 143-166.30(d), deleting the limit of how much a participant can contribute to the Supplemental Retirement Income Plan for State Law-Enforcement Officers (was, couldn't contribute more than 10% of compensation).

Amends GS 143-166.50(e), deleting the limit of how much a participant can contribute to the Supplemental Retirement Income Plan for Local Government Law-Enforcement Officers (was, couldn't contribute more than 10% of compensation).

Amends GS 128-26(a1), dealing with the credit allowed an individual who gave military service. Establishes that a member retiring on or after July 1, 1971, will be allowed credit for any period of qualifying serivce in the Armed Services, as defined for purposes of reemployment rights under federal law, provided that, the returning member is in service, with the employer by whom the member was employed when the member entered military services, for a period of not less than 10 years after the member is separated or released from that military service under other than dishonorable conditions or the following are met:

(1) The member did not, prior to leaving for military service, provide clear written notice of an intent not to return to work after military service.

(2) The member was discharged from uniformed service and returned from the leave of absence for uniformed service to membership service in this system within the time limit mandated by federal law for reporting back to work.

(3) The period of uniformed service, for which additional service credit is sought, has been verified by suitable documentation and is not eligible for receipt of benefits under any other retirement system or pension plan.

(4) All service credit forfeited by a refund pursuant to the provisions of GS 128-27(f) has been purchased.

Limits the uniformed service credit allowed under this subsection to a maximum of five years unless specifically exempted by federal law.The salary or compensation of such an employee during qualifying military service will be considered to be that salary or compensation the employee would have received but for the period of service had the employee remained continuously employed. If the salary is not reasonably certain, the determination will be considered as an average rate of compensation during the 12-month period immdeiately proceeding the period of service.

Amends GS 135-1(14), GS 128-21(14), GS 135-1, GS 128-21, and GS 135-53(16), making technical, conforming, and clarifying changes.

Amends GS 135-5.1(b), providing that the Optional Retirement Program will be permitted to file individual election forms with the Retirement System using electronic transmission.

Amends GS 135-106(d), clarifying that an early service retirement allowance is effective with the first day of the month following the end of the short-term period.

Amends GS Chapter 135 by adding a new section, GS 135-111.1 (Improper receipt of decedent's Disability Income Plan allowance). Provides that a person is guilty of  a Class 1 misdemeanor if the person, with intent to defraud, receives money by cashing, depositing, or receiving a direct deposit of a decedent's Disability Income Plan allowance and knows he or she is not entitled to those funds and receives the benefit of such funds two months after the date of the beneficiary's death and does not attempt to inform the System of the beneficary's death.

Amends GS 135-118.11, 128-38.5, 135-75.2, and 120-4.34, making technical and clarifying changes. Establishes that the provisions apply to the death of a retiree or death of a beneficiary.

Amends GS 143-166.2(d), making technical changes. Establishes that the North Carolina Association of Rescue and Emergency Medical Services must file a roster meeting the specified requirements with the State Treasurer before January 31 of each year. DHHS is also required to furnish a list of ambulance service members to the State Treasurer on or about January 31.

Effective July 1, 2013.

Amends GS 136-18 (Powers of Department of Transportation), providing in GS 136-18(39a) that the Department of Transportation (Department) can enter into partnership agreements with a private entity as provided under subdivision (39) of this section for one project, subject to the requirements of this subdivision (previously, the Department could only enter into an agreement for a pilot project that was a candidate for funding under the Mobility Fund and planned for construction through a public-private partnership).

Amends GS 20-63, as the title indicates. Effective July 1, 2013.

Appropriates $1,818,750 for 2013-14 and $1,818,750 for 2014-15 from the General Fund to the Department of Health and Human Services, Division of Medical Assistance, to be used to (1) provide clinical training and coaching to licensed Medicaid clinicians on an array of evidence based treatments and provide a statewide platform to assure accountability and outcomes; (2) maintain and manage a public roster of program graduates, linking high quality clinicians with children, families, and professionals; and (3) partner with state, LME/MCO, and private sector leadership to bring effective mental health treatment to children in juvenile justice and mental health facilities.

Appropriates $250,000 for 2013-14 and $250,000 for 2014-15 from the General Fund to the Division of Medical Assistance for costs incurred in developing a secure database for the NC CTP to track individual and aggregate level data with capability to work with existing state agency networks.

Effective July 1, 2013.

Amends GS 65-47, providing that a columbarium that is built on the grounds of a private gated or a self-contained retirement community, funded only by the residents of that community and reserved for the residents' use, will be exempt from the provisions of the NC Cemetery Act.

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.

Identical to H 110 filed on 2/14/13.

Enacts new GS 143-133.1, forbidding any governmental unit or entity awarding a government construction contract from requiring, prohibiting, or otherwise discriminating against a bidder or contractor for adhering to or not adhering to an agreement with a labor organization for the project. Forbids a governmental unit or entity from conditioning a grant, tax reduction, or credit on adherence or non-adherence to an agreement with a labor organization in a construction contact. Permits a governmental unit to exempt a particular project, contract, grant, tax reduction, or credit from such requirements if necessary to avert a public health or safety threat, as specified. Prohibits discrimination when awarding a contract, grant, reduction, or credit based on participation or non-participation with a labor organization. Provides that GS 143-133.1 does not (1) prohibit employers or others from engaging in activities protected by the National Labor Relations Act or (2) interfere with labor relations not regulated by the Act.

Abolishes the NC Advisory Commission on Military Affairs.

Amends GS Chapter 127 C to establish the NC Military Affairs Commission (Commission), to advise the General Assembly, State officials, and State agencies on specified matters concerning the military presence in the state, including supporting the long term goal of a viable and prosperous military presence in the state, and finding ways to coordinate the state's interest in future activities of the Department of Defense with the promotion of the state's economic interest in developing the state's natural resources. Specifies the naming of the Commission's 15 members and 17 ex officio members, with appointed members serving two year terms. Requires the initial Commission meeting to be within 30 days of the effective date the act.

Effective October 1, 2013.

Amends GS Chapter 58 by creating new Part 9 (Property Insurance Rate Clarity). Provides that each insurer authorized to conduct property insurance business in NC must annually submit to the Department of Insurance (Department) computations of the total amount of direct incurred losses, the number of policies in force, and the direct earned premiums for the prior calendar year.  This information will be reported by rate territory. Provides that for this Part, property insurance also includes condo insurance, dwelling fire policies, renters or tenants insurance, and mobile home and manufactured housing property insurance.

Also requires each insurer authorized to conduct homeowners insurance in NC to annually submit to the Department the total amount of direct incurred losses and the number of policies in force, by rate territory, for the prior calendar year for perils including fire, wind and hail, and all other perils. Requires each insurer authorized to transact property insurance in NC to provide information required pursuant to GS 58-10-340(a) for calendar years 2007 through 2012.  Based on this information the Department will compile aggregate totals and post such totals to the Department website no later than December 1, 2014. The Commissioner of Insurance (Commissioner) can waive, modify, or extend for an additional time period, for good cause, the reporting requirements imposed by this act. Describes what constitutes good cause and how to demonstrate it.  Failing to timely comply with the reporting requirements triggers a notice by the Department and any delay in complying past the 90th day after notice and hearing will require an insurer to pay a civil penalty of $2,500 per month to the Commissioner, until the date of compliance. Establishes that information reported to the Department pursuant to this act is considered a trade secret, as found in GS 66-152, and will be treated as confidential information.

The above changes are effective when the act becomes law and applies to the 2013 calendar year.

Amends GS 58-36-20, establishing that in the event the Commissioner finds that the proposed rates are excessive, the Commissioner will issue an order disapproving the filing and will specify the appropriate rate level that may be used (was, will specify the overall rates that may be used by the members of the Bureau instead of the rates proposed by the Bureau filing).

Amends GS 58-45-35 by adding a new subsection GS 58-45-35(f), providing that the North Carolina Insurance Underwriting Association (Association) will provide in its plan of operation that commission rates paid to agents/brokers for policies issued under this section will not exceed 10% of the written premium. Plans of operation must be amended to meet this statute by October 1, 2013.

Amends GS 58-45-47, raising the nonrecoupable assessment cap to $1.2 billion (was, $1 billion).

Amends GS 58-45-1, excluding gross premium taxes from the stated intent of the General Assembly to exempt fire and lightning taxes from State and federal taxation to the fullest extent permitted by law. Amends GS 58-45-80, (Premium taxes to be paid through the Association), changing the title to Exemption from premium taxes. Reorganizes section to exempt insurance written under this Article from the gross premium tax levied in GS Chapter 105, Article 8B. Amends GS 105-228.5, making technical changes and providing that this section does not apply to insurance policies written under GS Chapter 58 Article 45. Changes noted in this paragraph are effective for taxable years beginning on or after July 1, 2013.

Includes a severability clause.

Section 1 of this act is effective when it becomes law and applies to the 2013 calendar year. Part V of this act is effective for taxable years beginning on or after July 1, 2013. The remainder of this act becomes effective July 1, 2013.

 

GS 132-1 allows people to obtain copies of their public records and public information free or at minimal cost. Amends the definition of minimum cost to also include the personnel costs associated with the amount of time spent reproducing the record or information, computed based on the minimum wage.

Establishes the 18 member Legislative Study Commission on Water Quality Cost Share, with specified membership, including members appointed by the President Pro Tempore of the Senate and the Speaker of the House of Representatives, to study the costs and benefits of improving water quality in reservoirs, rivers, and other water resources shared by local governments. Sets out issues to be considered by the Commission. Allows an interim report to the 2013 Regular Session of the General Assembly when it convenes in 2014 and requires a final report before the convening of the 2014 session. Terminates the Commission upon the earlier of filing of the report or January 1, 2015.

Appropriates $50,000 for 2013-14 from the General Fund to the General Assembly, to be allocated to the Legislative Services Office for the study.

Effective July 1, 2013.

Amends GS Chapter 95 by creating a new section GS 95-28.1B, (Discrimination against persons based on credit history or credit rating prohibited), establishing that no person, firm, corporation, unincorporated association, State agency, unit of local government, or any public or private entity can deny or refuse employment to someone because of the person's credit history or credit rating. Provides that an employer can request a prospective employee to submit to a credit history background check, as part of the application process, if creditworthiness or credit standing is directly related to the ability to perform the essential functions of the position.

Effective October 1, 2013.

Enacts new Article 3D, Automatic License Plate Reader System, in GS Chapter 20 making it illegal to use an automatic license plate reader system, defined as a system of one or more mobile or fixed automated high-speed cameras used in combination with computer algorithms to covert images of license plates into computer readable data, excluding traffic control photographic systems. Sets out purposes for which an automatic license plate reader system may be used, including electronic toll collection. Prohibits data captured for the allowable purposes from begin used or shared for any other purpose and it cannot be preserved for more than 10 days except pursuant to specified requests or warrants. Allows an investigative or law enforcement officer to apply for a court order compelling disclosure of captured plate data and sets out steps to be taken by a person using the system to preserve data, once a disclosure order has been issued. Sets out additional provisions concerning and restrictions on individuals capturing data under one of the allowed uses, including reporting requirements.

Allows an aggrieved party to bring a civil action against a person violating the new Article. Specifies items that the court may award to the prevailing party. Makes a willful and knowing violation of GS 20-183.23(b) a Class 1 misdemeanor. Prohibits data or information captured in violation of the Article inadmissible as evidence in any criminal, civil, or administrative proceeding.

Applies to offenses committed on or after December 1, 2013.

Enacts new GS Chapter 7C, Concealment of Public Hazards. Provides that in actions alleging personal injury, wrongful death, or monetary or property damages caused by a public hazard, no confidentiality agreement may be entered into or enforced unless a final protective order regarding that information is entered. Defines public hazard as a release or threatened release of any substance that poses a threat to public health or safety by presenting a present or future danger of death, bodily injury, or physical or emotional disability to persons exposed to such substance. Requires the court to find that a confidentiality agreement is in the public interest before entering into a final protective order. Allows an interested party to appeal the grant or denial of a final protective order to the court of appeals. Provides that nothing in the act is deemed to limit a court's authority or discretion to prohibit the enforcement of a part or all of any confidentiality agreement, settlement agreement, stipulated agreement, or protective order in other cases. Also provides that the statute does not prohibit or compel the disclosure of the monetary amount of the settlement agreement or the entry of an enforcement order of that part of a confidentiality agreement, settlement agreement, or stipulated agreement between the parties which requires the nondisclosure of the amount of money paid in settling the claim.

Establishes the 10 member Joint Legislative Study Committee on Grandparent Visitation Rights and Child Custody (Committee) to study grandparent visitation rights and the use of health-related conditions as a factor in determining child custody. Specifies ten issues to be considered. Requires that five members of the Senate be appointed by the President Pro Tempore and five members of the House of Representatives be appointed by the Speaker to the Committee. Requires the Committee to make a final report to the 2014 Regular Session of the 2013 General Assembly before it convenes, at which time the Committee terminates.

Amends GS 96-14.9 to provide that an individual has satisfied the work search requirements for unemployment benefits for any given week if for that week the individual is participating in the NC Back-to-Work initiative.

Requires the Division of Employment Security to collaborate with the North Carolina State Board of Community Colleges to develop an outreach plan to disseminate information to unemployed individuals regarding participating in the NC Back-to-Work program.

Effective July 1, 2013.

 

Amends GS 20-79.4(b) as the title indicates. Plate issuance is contingent on the receipt of at least 300 plate applications. Establishes a special plate fee of $30 and requires that $20 of that amount be transferred quarterly to the Congressional Sportsman's Foundation to support its mission of protecting and advancing the rights of hunters, recreational anglers, shooters, and trappers in North Carolina.

Effective July 1, 2013.

Subject to approval at a statewide election on November 4, 2014, amends Section 2 of Article VI of the NC Constitution to prohibit a person adjudicated incompetent who has not been restored to competency, from voting.

To be summarized.

Amends GS 113A-235 to allow a soil and water conservation district to agree to terminate a conservation easement if the landowner requests in writing to terminate the easement and agrees to (1) reimburse the district for the costs associated with termination, (2) refund the purchase price, plus interest, (3) play liquidated damages if specified in the easement agreement, and (4) notify the county tax assessor of the termination.

Enacts new GS 106-421.1 to give the Board of Agriculture the sole authority to prohibit the planting, cultivation, harvesting, disposal, handling, or movement of plants; does not prevent designating plants as noxious aquatic weeds or adopting or enforcing ordinances regulating the appearance of property or the handling and collection of solid waste.

Identical to H 485 filed on 4/1/13.

Amends GS 20-81.12(b38), as the title indicates.

Identical to H 382 filed on 3/21/13.

Amends GS 14-410, GS 14-413, and GS 58-82A-2 as the title indicates.