Senate committee substitute makes the following changes to the 1st edition.

Provides that the State Treasurer and the Lieutenant Governor may fill their seats on the 11-member Charter Board with their designees.

Permits the removal of any appointed member of the Charter Board by a vote of at least two-thirds of the board members.Deletes the exception for the Lieutenant Governor and the Superintendent of Public Instruction.

Makes a clarifying change to GS 115C-238.29E to provide that a charter school operates under the written charter signed by the Charter Board and the applicant (was, operates undera written charter signed by the charter school and the entity to which the charter school is accountable).

Amends GS 115C-238.29F to reinstate provision that the State Board of Education (SBE) provides funds to charter schools.

Provides in GS 115C-238.29H(d) that the court is to award reasonable attorneys' fees and costs to the prevailing party in an action to enforce the provisions that require the local administrative unit (LEA) in which the child resides to transfer to the charter school that the child attends an amount equal to the per pupil share of the local current expense fund of that LEA. Deletes provision that directs that the above provision applies to any final judgment entered from and after the effective date of the above provision. Makes organizational changes, re-labeling the subsections. Provides that GS 115C-238.29H(d) applies to proceedings begun on or after the effective date of this act.

Makes conforming changes to GS GS 135-5.3(b) and GS 135-48.45(b) to incorporate reference to the Charter Schools Board established in this act.

Provides that initial appointments to the Charter Board are to be made by the Governor and General Assembly no later than August 1, 2013 (was, April 1, 2013).

Senate committee substitute to the 1st edition makes the following changes. Amends GS 106-610 to also allow the Commissioner the power of refusal, suspension, or revocation of a license when the dealer has hired a person who has been convicted of a crime involving fraud, deceit, or misrepresentation in any capacity involving the buying or selling of grain, or the handling of payments for grain. Make clarifying changes. Deletes the amendment to GS 106-611 which prohibited a person whose actions led to suspension or revocation of a grain dealer's license from working from a dealer in a specified capacity. Makes a conforming change to the act's long title. Changes the act's effective date to October 1, 2013.

Enacts new GS 15A-145.6 as the title indicates. Provides definitions of terms as they apply in this section. Specifies information that must be contained in the petition for expunction and the additional documents that must be filed with the petition. Provides guidelines regarding service of the petition on the the district attorney of the court where the subsequent crime was dismissed or a finding of not guilty was entered. Allows the district attorney 30 days to file any objection, and provides that on a showing of good cause, the court may allow an additional 30 days to file an objection to the petition. Directs the district attorney to make the district attorney's best efforts to contact the victim, if any,before the hearing, and notify the victim of the request for expunction.

Provides that if the court makes the specified findings after the hearing, then the court may, at its discretion, grant the additional expunction and must order that the petitioner be restored, in contemplation of the law, to the status that the petitioner held before the arrest or indictment, or information. Directs the court to include in an order denying the petition a finding as to the reason the petition was denied.

Provides that a person whose record is expunged under this section cannot be found under any provision of law to be guilty of perjury or otherwise giving a false statement for failing to recite or acknowledge the arrest, indictment, or information. Declares that any person required by law to obtain a criminal history record check on a prospective employee is not deemed to have knowledge of any charges expunged under this section. Directs the court to also order that the charges be expunged from the records of the court and therecords of all law enforcement agencies who have that information.

Requires any other state agencies to remove any information regarding the expunged record and to reverse any administrative decisions taken against a person whose record is expunged under this section, as a result of the expunged charges. Also requires local governments to expunge their records. Specifies that these provisions do not apply to the Department of Justice for DNA records and samples stored in the state DNA Database and the state DNA Databank, nor to fingerprint records.

Requires a filing fee of $175 to file a petition for expunction of a criminal record to be paid to the clerk of superior court at the time that the petition is filed. Does not apply to petitions that are filed by a person who is indigent. Directs that the fees collected be deposited in the General Fund.

Effective December 1, 2013.

Amends GS 14-151 to provide that it is unlawful to willfully, with the intent to injure or defraud, commit any of the acts listed in subdivisions (1) through (10) of subsection (a) of GS 14-151. Amends this section to include "bypass" and "tamper with" as unlawful activities under this section. Provides that the prohibitions against any person, other than an employee of the company owning or supplying a gas, water, or electric meter, whoobstructs, alters, bypasses, tampers with, or in any way interferes with the operation of a meter or other measuring instrument apply to water as well as natural gas, illuminating fuel, or electricity. Also clarifies that it is unlawful to connect or reconnect water pipes as well as gas mains, service pipes, or wires that furnish natural or artificial gas, water, or electricity to consumers. Adds that it is unlawful to reconnect or otherwise turn back on one or more of electric, gas, or water utilities after they have been lawfully disconnected or turned off by the utility provider. Provides that it is unlawful to alter, bypass, interfere with, or cut off any load management device installed by the electricity supplier for the purpose of limiting the use of electricity during the peak load period.

Defines gas for the purposes of this section to mean all types and forms of gas, including, but not limited to, natural gas. Provides that any violation of subdivisions (1) through (8) of subsection (a) is a Class F felony. Makes a violation of subdivisions (9) or (10) of subsection (a) of GS 14-151 (1) a Class 1 misdemeanor for a first offense, (2) a Class H felony for a second offense,(3) a Class G felony for a third offense, (4) a Class Ffelony for an offense resulting in significant property damage or public endangerment, and (5) a Class D felony for an offense that results in the death of another unless the conduct is covered under some other provision of law.

Provides that a violator of any provision of this section is liable for triple the amount of losses and damages sustained by the electric, gas, or water supplier or $5,000 (was, $500), whichever is greater.

Repeals GS 14-151.1 (regarding interfering with gas, electric, and water meters).

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

As title indicates.

Amends GS 90-270.18(b) by increasing various fees associated with the practice of psychology.

Enacts new Article 4, Short-Time Compensation Program, in GS Chapter 96. Allows an employer wishing to participate in the Short-Time Compensation Program (Program) to submit a short-time compensation plan to the Division of Employment Security(Division). Specifies items to be included in the application. Requires the Division to approve or disapprove the plan in writing within 30 days of receiving the plan. Allows the employer to submit another plan for approval no earlier than 90 days from the date of the initial plan's disapproval. Provides for the effective date and expiration of the plan (the earlier of the date at the end of the 12th full calendar month after its effective date or an earlier mutually agreed upon time). Allows the Division to revoke a plan upon good cause and to periodically review the operation of each employer's plan to assure that no good cause exists for revocation. Provides for modification of an approved plan. Provides that an individual is eligible to receive short-time compensation with respect to any week only if the individual is monetarily eligible for unemployment compensation, not otherwise disqualified for such, and: (1) during the week, the individual is employed as a member of an affected unit under an approved short-time compensation plan, which was approved prior to that week, and the plan is in effect with respect to the week for which the compensation is claimed; (2) the individual is available for the usual hours of work with the employer; and (3) an individual covered by a plan is deemed unemployed in any week during the duration of the plan if the individual's remuneration as an employee in an affected unit is reduced based on a reduction of the individual's usual weekly hours of work under an approved short-time compensation plan. Provides that the short-time compensation weekly benefit amount is to  be the product of the regular weekly unemployment compensation amount for a week of total unemployment multiplied by the percentage of reduction in the individual's usual weekly hours of work. An individual may be eligible for short-time compensation or unemployment compensation, except that no individual is: (1) eligible for combined benefits in any benefit year in an amount more than the maximum entitlement established for regular unemployment compensation and (2) paid short-time compensation benefits for more than 52 weeks under a plan. Requires the short-time compensation paid to an individual to be deducted from the maximum entitlement amount of regular unemployment compensation established for the individual's benefit year. Specifies provisions that apply to individuals who work for both a short-time compensation employer and another employer during covered weeks. Provides for individuals not provided work during a week. Includes provisions concerning changing short-time compensation benefits and extended benefits.

Enacts new section GS 14-105.1 (Employment fraud), making it illegal to make false statements or representations or fail to disclose requested information as part of an employment application  that the person knows to be false or incomplete, so that the person can gain access to the employer's facilities in order to (1) create or produce a record that reproduces an image or sound occurring in the employer's facility (i.e., photo, video, or audio medium record) or (2) capture or remove data, paper, records, or other documents through duplication, downloading, image capture, electronic mail, or other means. Committing such an offense will result in a Class 1 misdemeanor for the first conviction and a Class I felony for a second or subsequent conviction. Also requires any recording or information obtained to be turned over to local law enforcement within 24 hours of recording or procurement. Failure to do so will result in a Class 1 misdemeanor for the first conviction and a Class I felony for a second or subsequent conviction. Effective December 1, 2013.

Amends GS Chapter 75 by creating a new Article 8, Predatory Third Party Financing of Litigation Act. Creates GS 75-140 (Definitions), which provides the terms and definitions to be used in the Article, including consumer, lawsuit loan, lawsuit loan company, lawsuit loan contract, legal action, and proceeds. Creates GS 75-142, (Lawsuit loan contracts prohibited), to prohibit lawsuit loan companies from entering into a lawsuit loan with a consumer regarding a legal action in which the consumer is a party. Renders all lawsuit loan contracts void and unenforceable. Creates GS 75-144 (Penalty), to provide that a violation of GS 75-142 is an unfair trade practice, pursuant to GS 75-1.1.  Effective October 1, 2013.

Amends GS Chapter 114 by creating a new Article 2A, Transparency in Third-Party Contracting by Attorney General (AG). Creates GS 114-9.3 (Definitions), providing the terms and definitions to be used in this Article, including government attorney, private attorney, and State. Creates GS 114-9.4 (Procurement), providing that the AG may not enter into a contingency fee contract with a private attorney unless the AG makes a prior written determination that such an arrangement is both cost effective and in the public's best interest. Provides that the written determination must include four factors, including, but not limited to, the geographic areas where the attorney services are to be provided and whether there are sufficient and appropriate legal and financial resources in the AG's office to handle the matter. If such a determination is made, the AG will request proposals from private attorneys to represent the State on a contingency fee basis. Creates GS 114-9.5 (Contingency Fees), establishing the fee schedule caps for the private contract attorneys. In no event will an aggregate contingency fee exceed $50 million, exclusive of reasonable costs and expenses and regardless of the number of lawsuits filed or number of private attorneys retained. Additionally, no contingency fee will be based on penalties or civil fines awarded or any amounts attributable to penalties or civil fines. Creates GS 114-9.6 (Control), establishing that the AG will not enter into a contract for contingency fee attorney services unless certain specified requirements are met throughout the contract period or extensions of the contract period, including, but not limited to, a government attorney retaining complete control over the course and conduct of the case and a government attorney with supervisory authority is personally involved in overseeing the litigation. Creates GS 114-9.7 (Oversight), providing for copies of the contracts and the contingency fees paid to be publicly available on the AG website for the duration of the contract, with the amount of fees paid to be available within 15 days of payment and to remain posted on the website for at least 365 days. Requires private attorneys under contract to retain and maintain detailed current records of the financial transactions of the contract for at least four years after the contract expires. Such records will also be available for inspection and copying in accordance with GS 132-6. Requires that the AG submit a report by February 1 of each year to the President Pro Tempore of the Senate and the Speaker of the House of Representatives, describing the use of contingency fee contracts. Requires the report to include, at a minimum, seven different items of information, including the names of the parties to each legal matter, and the amount of any contingency fee paid. Creates GS 114-9.8 (No expansion of authority), providing that this Article cannot be construed to expand the authority of any state agency or officer or employee of North Carolina to enter into contracts for legal representation where no authority previously existed. Effective October 1, 2013.

Amends GS 114-2.3 (Use of private counsel limited), providing that Article 2A of this Chapter applies to any contract to retain private counsel authorized by the AG under this section. Effective October 1, 2013.

Amends GS 108A-29.1 as the title indicates. Requires the Department of Health and Human Services (DHHS) to develop a program toscreen each applicant or recipient who is otherwise eligible for Work First Program assistance under Article 2 of GS Chapter 108A for illegal use of controlled substances. Requires DHHS to test individuals whom DHHS has reasonable cause, based on the screening, to believe is engaging in the the illegal use of controlled substances, using a urine dipstick five-panel test.

Provides that any applicant or recipient (1) who tests positive for a controlled substance not prescribed to that individual by a licensed health care provideror (2) who refuses to be tested is declared, after an administrative hearing conducted by DHHS under GS Chapter 150A, to be ineligible for Work First Program assistancefor a three-year period dating from the administrative hearing. Provides for a restoration of eligibility for an applicant or recipient who successfully completes a substance abuse treatment program and does not test positive for illegal use of a controlled substance in the six-month period beginning on the date of entry into the rehabilitation or treatment program. Allows the applicant or recipient to continue to receive benefits while participating in the treatment program. Authorizes DHHS, at its discretion,to randomly or at set intervals test the applicant or recipient for illegal drug use.

Provides that an applicant or recipient testing positive for use of illegal drugs for a second time is to be declared ineligible for Work First Program assistance for a three-year period from the date of the administrative hearing decision. Directs DHHS to refer an applicant or recipient testing positive for the use of a controlled substance to an appropriate substance abuse treatment program approved by DHHS.

Requires case workers of applicants or recipients to report or cause to be reported suspectedchild abuse to child protective services if the case worker has knowledge that an applicant or recipient (1) has tested positive for the illegal use of a controlled substance or (2) has refused to be tested for the illegal use of a controlledsubstance.

Provides for continuation of Work First Program assistance benefitsto other members of a household, including a person who has been declared ineligible for Work First benefits, if otherwise eligible,but requires the benefits to be paid to a protective payee under GS 108A-38.

Requires the Social Services Commission to adopt rules pertaining to the screening and testing of applicants and recipients under this section. Deletes provisions that make area mental health authorities responsible for administering the provisions of this section and permitting the requirements of this section to be modified to the degree necessary to comply with Medicaid eligibility provisions. Also deletes provision requiring an applicant or recipient of Work First Program assistance benefits identified as having a substance abuse problem to receive substance abuse treatment as a condition of receiving benefits.

Adds to list of business and energy tax credits in GS Chapter 105, Article 3B, tax credit for development of smart electric grid technology. Provides detailed definition of this technology, including (1) integrated communications; (2) advanced components, including storage devices such as plug-in hybrid electric vehicles and advanced batteries, and appliances that delay operation in response to price signals; (3) advanced control and monitoring methods permitting rapid diagnosis and response to events; (4) sensing and measuring devices, such as those providing real-time information about capacity and consumption; and (5) devices and software permitting better decision-making at all levels of the grid. Amount of credit is percentage (either 15% or 20%) of qualifying expenses exceeding $50,000. Qualifying expenses are of two types: (1) compensation, wages, and other benefits paid to a full-time employee and (2) payment for services made to a community college or research university in the state. Prohibits taxpayer from double benefit by additionally claiming credit under certain other statutory provisions for same expenses. Effective for taxes imposed for taxable years beginning on or after January 1, 2013.

Amends GS 90-91 as the title indicates. Repeals Article 5D (Control of Methamphetamine Precursors) of GS Chapter 90. Effective December 1, 2013.

Requires the North Carolina State Crime Laboratory to conduct tests, or contract for the tests, on any available commercial product containing pseudoephedrine that has been approved by the FDA and that is (1) exempt from regulation as a pseudoephedrine product by any state or political subdivision of a state that otherwise regulates pseudoephedrine as a controlled substance or (2) claimed by the manufacturer to be resistant to use as an ingredient in the manufacture of a controlled substance. Requires that the test result be submitted to the Director of the North Carolina State Crime Laboratory and legislative entities. Requires the Department of Justice to use funds available for 2012-13 and 2013-14 for the testing.

Amends GS 20-17.8 (Restoration of a license after certain driving while impaired convictions; ignition interlock), providing that the Commissioner of the DMV (Commissioner) will not issue a license to a person subject to this section until proof is presented of the installation of an ignition interlock system in all registered vehicles owned by the person. Provides that a person subject to this can, in order to avoid an undue financial hardship, seek a waiver from the DMV for any vehicle registered to that person, not in the person's possession, and relied upon by another member of that person's family.  Such waivers will be decided on a case-by-case basis. Provides that the Commissioner will cancel the driver's license of any person subject to this section for having a registered motor vehicle without an installed ignition interlock system or removing the system, except when changing system providers or for the sale of the vehicle.

Deletes language providing an exemption regarding being charged with driving while license revoked by violating the requirement of having an ignition interlock system installed if the vehicle was not in the person's possession and is relied upon by a family member. Amends GS 20-17.8(l) (Medical Exception to Requirement), making this section and the medical exception to the ignition interlock system only applicable and available to the persons set forth in GS 20-17.8(a)(1) who have had their licensed revoked for having an alcohol concentration of 0.15 or more. Adds clarifying language.

Amends GS 20-179(h), providing that if a defendant is subject to Level Two punishment based on (a) the application of grossly aggravating factors found in GS 20-179(c)(1) or (2), (b) the conviction for a prior offense involving impaired driving occurred within five years before the date of the offense for which the defendant is being sentenced, and (c) the judge suspends all active terms of imprisonment and imposes abstention from alcohol as verified by a continuous alcohol monitory system, then the judge must also impose, as an additional condition of special probation, that the defendant complete 240 hours of community service.

Amends GS 15A-1371(h) (Community Service Parole), providing that, notwithstanding the provisions of any other subsection, prisoners serving sentences for impaired driving will be eligible for community service parole after serving the minimum sentence required by GS 20-179 (Sentencing hearing after conviction for impaired driving; determination of grossly aggravating and aggravating and mitigating factors; punishments) in the discretion of the Post-Release Supervision and Parole Commission. Provides that community service parole eligibility will be available to a prisoner that has served one-half of his minimum sentence, at least ten days if sentenced to Level One punishment or at least seven days if sentenced to Level Two punishment, whichever is longer. Provides that good time and gain time credit will be earned pursuant to GS 148-13 (Regulations as to custody grades, privileges, gain time credit, etc.), but only after a person has served at least ten days if sentenced to Level One punishment or at least seven days if sentenced to Level Two punishment.

Amends GS 20-138.7(a3), establishing that motor vehicle means, for this section, any vehicle driven or drawn by mechanical power and manufactured primarily for use on public highways and includes mopeds (was, only those types of motor vehicles which North Carolina law requires to be registered, whether the motor vehicle is registered in North Carolina or another jurisdiction).

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