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

Makes a technical correction.

Adds the town of Enfield to the list of towns that GS 20-171.24 (motorized all terrain vehicle use by employees of listed municipalities and counties on certain highways) applies to. 

Part I.

Amends GS Chapter 58 by creating new Part 10 (Property Insurance Rate Clarity). Provides that each insurer authorized to conduct property insurance business in North Carolina, the NC Insurance Underwriting Association, and the NC Joint Underwriting Association 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, including policies written or serviced under GS Chapter 58, Articles 45 and 46. This information will be reported by rate territory and by type of property insurance policy. Provides that for this Part, property insurance also includes condo insurance, dwelling fire policies, renter's or tenant's insurance, and mobile home and manufactured housing property insurance.

Also requires each insurer authorized to conduct homeowners insurance in North Carolina 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 North Carolina to provide information required pursuant to GS 58-10-705(a) for calendar years 2009 through 2014.  Based on this information, the Department will compile aggregate totals and post such totals to the Department website no later than December 1, 2015.

Allows the Commissioner of Insurance (Commissioner) to waive, modify, or extend for an additional time period for good cause the reporting requirements imposed by this act when the waiver is requested in writing. 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, with any any current year requirements applying to the 2015 and subsequent calendar years.

Part II.

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).

Part III. 

Amends GS Chapter 58 to enact a new Article 45A (Recovery Finance Authority). Provides legislative findings establishing reasons for the Recovery Finance Authority, including the likelihood that one or more hurricanes or catastrophic events could surpass the financial abilities of the NC Insurance Underwriting Association (Association). Provides eight definitions for use in this Article, including assessment, bonds, and catastrophe recovery charge. 

Creates the North Carolina Recovery Finance Authority (Authority), constituted as a public agency, located in the Department, with specified powers related to the financing of deficits of the Association due to catastrophic events. Provides for a nine-member board with two members each appointed by the Speaker of the House and the Senate President Pro Tempore, two members appointed by the Governor, two members appointed by the Association, and one is the Commissioner of Insurance, with the Chair of the Authority to be appointed by the Board. Provides for staggered terms of the initial members and the members thereafter. Provides further requirements for the Authority regarding removal of board members, conflicts of interest and ethics, and compensation. Requires the Authority to create bylaws concerning organizational and administrative matters of the board. 

Specifies 18 powers of the Authority, including to invest the proceeds of bonds of the Authority that are pending disbursement or other idle funds and to apply for, accept, and administer loans and grants of money or real or personal property from the United States or any federal agency, the state, or other public or private sources.

Exempts property owned by the Authority from taxation.

Authorizes the issuance of bonds by the Authority as if the Authority was a municipality, with all the powers and protections afforded to municipalities under the State and Local Government Revenue Bond Act. Specifies investment vehicles authorized for use, through contract, by the Authority, including interest rate swap agreements and contracts to exchange cash flows. Specifies provisions for and limitations of entering into such investment contracts. Provides certain obligations of the Authority if the Association requests the issuance of bonds. Provides provisions for and limitations on issued bonds, including that the bonds are not secured by the full faith and credit of the state, that bonds are considered securities in which varied individuals and institutions can invest, and that they are exempt from all state, county, and municipal taxation or assessment. 

Amends GS 58-45-47 concerning deficit events, providing that when the Association expects to incur losses and expenses exceeding available surplus or other sources, taking into consideration account sources committed with respect to losses and expenses expected from prior events (previously, did not include clarifying language regarding losses and expenses from prior events), the Association is authorized to issue a nonrecouple assessment on its members. When it is expected that losses incurred will exceed sources of funding, including permissible member assessments, the Association must also immediately give notice to the Authority that a deficit event has incurred.  Provides that upon such notice the Association must provide evidence in regards to its estimates of total losses and expenses expected to be incurred within the calendar year and funding amounts available to it. Such evidence and material is required to be available to the Commissioner for review. Provides that upon certification of the deficit event, the Association can determine the appropriate means of financing the deficit, which can include financing from the Authority. Provides and amends permissible actions if it is determined that losses and expenses incurred have risen to the level necessary for the imposition of a catastrophe recovery charge, including the new action that the Association can inform the Authority and the Commission that it will assign specified obligations to pay claims to the Authority and act as agent for the Authority to collect catastrophe recovery charges and direct such amounts to the Authority. Adds new language concerning the Catastrophe Recovery Charge providing that when charged pursuant to this section, it be will a uniform percentage of written premiums as prescribed by the Commissioner, not to exceed an aggregate amount of 10% of the annual policy premium on any one policy of insurance, imposed on policyholders from the Association and the FAIR Plan. Provides for periodic revision of the Catastrophe Recovery Charge as well as provisions concerning the cessation, repayment, and limitations of the Catastrophe Recovery Charge. Makes various technical, organizational, and conforming changes. 

Amends GS 120-123 to provide that no member of the General Assembly can serve on the Authority board. 

Amends GS 159-81(3) to provide that the financing of deficits by the Authority can be considered a revenue bond project for the purposes pursuant to the section.

Amends GS 159-83 concerning powers associated with revenue bonds, providing that the Authority has the power to contract for the charging of catastrophe recovery charges, including covenanting to make such charged as necessary for the payment of revenue bonds as well as having the power to pledge and assign its rights to the making, revising, receiving, and enforcing such changes for its revenue bonds. 

Amends GS 159-89, making conforming changes concerning special covenants of issuers of revenue bonds, providing the Association can enter into agreements to assign obligations to pay claims of amounts in excess of its losses and expenses that exceed available funding to the Authority as well as act as its agent in the recovery of such imposed charges. 

Amends GS 159-90(a)(1) concerning the maturity dates of bonds, providing that maturity dates for bonds issued by the Authority will be related to the structuring of the repayment of proceeds rather than the facilities paid for, with an overall limit of 40 years. 

Amends GS 159-93, updating the agreement of the state to not limit or alter the rights vested in the state or any municipality, at the time of issuance of bonds or notes, to include the collection of catastrophe recovery charges.

Amends GS 159-95 concerning the approval of state agencies for certain revenue bond projects, providing that bonds issued by the Authority do not require the approval of the Department of Insurance except to the extent catastrophe recovery charges require action pursuant to GS 58-45-47. 

Amends GS 159-96 concerning geographical limitations for enterprises financed by revenue bonds, providing that no such geographical or territorial limitation exists on the use of proceeds of bonds issued by the Authority other than for payment of a deficit related to a catastrophic event affecting property covered under insurance policies issued by the NC Insurance Guaranty Association. 

Part IV.

Amends GS 58-36-30 concerning deviations in certain rates established by the Rate Bureau (Bureau), providing that the provisions of subsection (b) only apply to insurance against theft for physical damage to nonfleet private passenger motor vehicles and for loss costs and residual market rate filings for workers' compensation and employers' liability insurance written in connection with those loss costs and rate filings. Enacts new subsection (b1), which applies only to insurance against loss to residential real property with not more than four housing units and provides that a rate in excess of that established by the Bureau can be charged by an insurer on any specific risk if the higher rate is charged pursuant to rules adopted by the Commissioner and is based on sound actuarial principles as well as is charged with the knowledge and written consent of the insured. Includes other provisions concerning this permissible higher rate. 

Part V. 

Amends GS 58-36-10, concerning the method of rate making and the factors considered, providing that if the Bureau presents any modeled losses with a property insurance rate filing, then it must also present data from more than one catastrophe model. Additionally, the models must be based on maximum load designs as contained in the NC State Building Codes.

Part VI.

Creates the Joint Legislative Study Committee on Property Insurance Rate Making (Committee), consisting of 10 members appointed as specified. Provides three areas that the Committee must study, including the structure, function, and operations of the Rate Bureau and the prevalence and geographic distribution of property insurance policies. Includes provisions concerning the appointment of cochairs and filing of vacancies on the Committee and details the Committee's powers and the staffing for the Committee. Requires the Committee to submit an interim report to the 2015 General Assembly when it reconvenes in 2016, with a final report being submitted to the 2017 General Assembly. After submitting the report the Committee is terminated. 

Amends GS 58-45-5(2c), making technical deletions and clarifying changes.

Includes a severability clause. 

Unless otherwise noted above, effective July 1, 2015. 

Amends GS 121-7 (Historical museums) to allow the proceeds of an artifact sale to also be used for the maintenance or conservation of other artifacts in addition to the purchase of artifacts. Requires Department of Cultural Resources (DCR) to maintain and administer historic sites and museums (was, attractions). Allows DCR to place artifacts on loan (was, permanent loan) with approval of the North Carolina Historical Commission.

Deletes GS 121-7(c) and (d), concerning title of an artifact whose owner is unknown or cannot be found and filing a claim of title.

Creates new Article 5 (Museum and Archives Repository Property) in GS Chapter 121. Enacts new GS 121-50 (Legislative findings and declaration), declaring that the constant management of loaned and titled property is a hindrance to the operation of museums and archives. States that the purpose of new Article 5 is to terminate stale claims and fairly and reasonably allocate the determination of title and financial responsibility.

Creates new GS 121-51 (Definitions), providing the terms and definitionsto beused in this article, including address, archives repository,loan,museum,property, andvalid claim.

Creates new GS 121-52 (Acquisition of title to loaned property), providing that loaned property where the term has expired and at least seven years have passed without written or other contact or the term of the loan did not have an expiration date but at least seven years have passed without contact, the museum or archive may acquire title.

Provides the notice requirements and the process by which the museum or archive may acquire title under this sectionafter seven years of no contact between the lender and the museum or archives repository since the loan was made.

Creates new GS 121-53 (Disputed ownership), which provides that in cases where disputed ownership of loaned property arises, a museum or archive may retain possession of the loaned property and not be held liablefor refusing to surrender the loaned property except in reliance on a court order or judgment to release the property. Provides for appeals by a claimant. Prohibits construing that the provisions in this Article convert a loan into a bailment. Provides that all equitable and legal defenses are available to museums and archives repositories in the event of a dispute over ownership.

Enacts new GS 121-54 (Responsibilities of owners of loaned property; representation of ownership) providing that it is the responsibility of the owner of loaned property to notify, in writing, the museum or archives of the owner's identity and current address. Also requires all claimed owners to present evidence of ownership to the museum or archives after all changes in ownership, whether by sale, gift, devise, operation of law, or any other means. Provides additional requirements regarding the responsibilities of owners to provide notice of name and address to a museum or archive repository holding loaned property. Declares that a museum or archives repository is not liable for actions taken in reasonable reliance on the representation of the person who first transfers an item to the museum or archives that he or she is the true owner.

Creates new GS 121-55(Museum or archives repository's lien for expenses), providing that when the lender of loaned property is known, a museum or archive may charge expenses relating to the reasonable care of the loaned property. If the lender of loaned property is not known, a lien against the value of the property can be placed for reasonable expenses to protect the property.

Creates new GS 121-56 (Acquisition of undocumented property), providing that when a museum or archive is in possession of property and it does not know who the owner is and no one has claimed it within seven years, after the museum or archive follows the notification policy in GS 121-52, it is free and clear from all claims. However, if a museum or archive wishes to do this they still must provide public notice in the manner described in GS 121-52. Provides that the requirements of GS 121-52 and GS 121-53 apply to valid and disputed claims of ownership to undocumented property.

Enacts new GS 121-57 to provide that the provisions of this Article exclusively control the procedure and disposition of any property to which they apply.

Enacts new GS 132-11 to set a time limitation on the confidentiality of records. Provides that regardless of any other provision of law, all restrictions on access to public records expire 100 years after the creation of the record. However, also directs that nothing in this section is to be construed to authorize or require the opening of any record (1) ordered sealed by a state or federal court, except as provided by that court; (2) prohibited from being disclosed under deferral law; or (3) containing detailed plans and drawings of public buildings and infrastructure facilities.

Requires the Environmental Review Commission (ERC), with assistance from the Department of Environment and Natural Resources' (DENR) assistance, to study the aggregate uses of groundwater and surface water in or affecting the Cape Fear River Basin by all users, including, but not limited to, public water systems, industrial facilities, and agricultural operations. Requires the study to include: (1) a summary of the current and 50-year projected water use demands and the available water supplies for those portions of 25 specified counties within the Cape Fear River Basin; (2) an evaluation of the adequacy of currently available supplies to meet the expected long-range needs for all water demands; (3) the identification of potential conflicts among the various users and recommendations for developing and enhancing coordination among users to avoid or minimize those conflicts; and (4) an enhanced review of the portions of the Cape Fear River Basin within Brunswick, New Hanover, and Pender counties addressing the increased demands on groundwater and limited surface water options in that area. Requires the study findings to be included within DENR's Cape Fear River Basin Plan and requires all of the information and any analytical tools used in conducting the study to be made available electronically for public review and use from the Division of Water Resources website. Allows ERC to submit an interim report to the 2016 Regular Session of the 2015 General Assembly and requires a final report of its findings and recommendations to the 2017 General Assembly.

Amends GS 135-48.42 to allow retirees and surviving spouses to disenroll themselves or their dependents from the State Health Plan (Plan) during the Plan year without a qualifying event. 

Amends GS 135-48.44 to provide that coverage under the Plan ceases on the earliest of one of the specified eight events. Amends one of those eight events to be the last day of the month, or as soon thereafter as administratively feasible, in which the Plan approves cancellation of coverage for an employee or retired employee (was, the last day of the month in which an employee or retired employee requested cancellation of coverage).

Amends GS 135-48.40 by amending the list of persons eligible for coverage under the Plan on a partially contributory basis to include employees formerly covered by the statute, other than retired employees eligible for coverage on a contributory basis (was, other than retired employees) who have been employed for 12 or more months by an employing unit or who have completed a contract term of employment of 10 or 11 months and whose employing unit is a local school administrative unit and whose jobs are eliminated because of a reduction in the funds used to support the job or its responsibilities, provided the employees were covered by the Plan at the time of separation from service resulting from a job elimination.

Amends GS 135-48.40 by amending the list of persons eligible for coverage on a fully contributory basis to include Disability Income Plan beneficiaries if the death of the former Plan member occurred after September 30, 1986, and the surviving spouse was covered under the Plan at the time of death.

Amends GS 135-48.41 to remove the waiting period for preexisting conditions for eligible surviving spouses and eligible surviving dependent children who are eligible for group benefits and are electing coverage later than 90 days after the death of the former Plan member. 

Effective July 1, 2015. 

Enacts new GS 7A-304.1 for purposes as the title indicates. Lists in subsection (b) of new GS 7A-304.1 the 15 offenses for which voluntary dismissals may be obtained in exchange for the payment of compliance court costs. Such offenses include: no operator's license, an expired license, unsafe tires, inspection violations, child restraint violations, moped and motorcycle helmet violations, and registration violations. Requires the district attorney to provide written notice to any person choosing compliance and payment of court costs that compliance in response to some offenses may constitute a statutory defense to the charge and result in the dismissal of the charge without the payment of any court costs. Effective October 1, 2015, and applies to dismissals granted on or after that date.

Amends subsection (a) of new GS 7A-304.1, effective July 1, 2016, to provide that a person charged for any of the offenses indicated in subsection (b) may choose to provide proof of compliance to the district attorney before or on the scheduled court appearance date, and the district attorney may agree to a voluntary dismissal of the case in exchange for the person's signed waiver of appearance and payment of court costs in the amount of $50 if paid in person to the clerk of court or $10 if paid through the electronic payment system established by the Administrative Office of the Courts (AOC) (was, a flat $50 fee no matter how it was paid.

Directs the AOC, in consultation with specified entities, to develop a procedure for the acceptance of compliance court costs, study the structure for the costs, and establish uniform guidelines as to what constitutes compliance. Specifies additional tasks for the AOC and requires the AOC to report on the development of an electronic payment system to the chairs of the Senate and the House Appropriations committees on Justice and Public Safety, and the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety by May 1, 2016.

Effective October 1, 2015, unless otherwise indicated.

Identical to S 197, filed 3/5/15.

Amends GS 90-85.27, the definitions section for use in GS 90-85.28 through GS 90-85.31, adding biological product and interchangeable biological product. Makes technical and organizational changes. 

Amends GS 90-85.28 to authorize pharmacists dispensing a prescription for a drug product prescribed by its brand name to select any equivalent or interchangeable biological product which meets specified standards (previously, did not allow the substitution of a brand name drug with an interchangeable biological product). Amends the catchline of GS 90-85.28 to "Selection by pharmacists permissible; prescriber may permit or prohibit selection; price limit on selected drugs; communication of dispensed biological products under specified circumstances." Makes technical and conforming changes. Requires a pharmacist substituting an interchangeable biological product to communicate to the prescriber, within a reasonable time following the dispensing, the manufacturer of the specific biological product prescriber. Sets out authorized means of communication between the pharmacist and the prescriber as well as instances when such communication is not needed. Provides that the interchangeable biological product can only be selected if it is lower in price than the prescribed drug.

Amends GS 90-85.31, providing that no greater liability is extended to pharmacists for selecting an interchangeable biological product as would be for selecting the prescribed drug. Makes conforming changes.

Makes technical changes to GS 58-3-178(c)(4). 

Effective October 1, 2015.

Amends GS 131E-176(9b) to delete the following from the definition of health service facility: a psychiatric facility, a diagnostic center, and an ambulatory surgical facility. Also amends GS 131E-176(16) to provide that "new institutional health services" no longer includes the conversion of special ambulatory surgical programs to a multi-specialty ambulatory surgical program; the construction, development, establishment, or increase in the number of operating rooms or gastrointestinal endoscopy rooms; or changes in the designations for use and type of rooms.

Amends GS 131E-177 to clarify the powers and duties of the Department of Health and Human Services (DHHS) as the State Health Planning and Development Agency for North Carolina. Authorizes DHHS to develop a State Medical Facilities Plan (Plan), providing that the Plan does not include policies or need determinations that limit the number of operating rooms or gastrointestinal endoscopy rooms. Makes technical changes.

Amends GS 131E-183 to no longer require the proposed project applying for a certificate of need to be consistent with policies and need determinations in the State Medical Facilities Plan constituting a limitation on operating rooms.

Amends GS 131-184(a) to exempt diagnostic centers, ambulatory surgical facilities, gastrointestinal endoscopy rooms, and psychiatric hospitals from certificate of need review if a certificate of need approval was obtained before the act becomes effective.

Adds a new subsection (f) to GS 131E-147 to specify the required content for an application for a license or renewal of a license to operate an ambulatory surgical facility developed, acquired, or replaced on or after this act becomes effective.

Repeals GS 131E-175(11) and (12). Makes conforming changes to GS 131E-178(a) and GS 131E-184(a).

Subject to approval by voters at the statewide election on November 8, 2016, amends Section 4 to Article IX of the North Carolina Constitution to make the Superintendent of Public Instruction a member of the State Board of Education (Board) instead of the Board's secretary. Retains the provision naming the Superintendent of Public Instruction as the chief administrative officer of the Board. Decreases the number of Board members to be appointed by the Governor from 11 to 10 and reduces the number of those members that must be appointed from the state at large from 3 to 2. If approved, effective April 1, 2017.

The following changes are effective only if the constitutional amendment is approved.

Amends GS 115C-10 to make conforming changes by adding the Superintendent of Public Instruction (Superintendent) as a member of the Board, reducing the number of appointments that are to be made by the Governor and the number of appointments that are members at large. Effective April 1, 2017.

Amends GS 104-12, GS 104-19, and GS 143A-44.3 to remove the reference to the Superintendent as the Secretary of the Board and instead refer to the role of chief administrative officer. Amends GS 115C-11 to require the Board to elect a secretary from its membership and specifies the secretary's duties. Makes language gender-neutral. Makes conforming changes to GS 115C-19 and GS 115C-21. Modifies the membership of various entities in GS 7B-1402, GS 115C-64.15, GS 115C-296.6, GS 116C-1, and GS 143B-426.9 to allow service by the vice-chair if the Superintendent is the chair of the Board. Amends GS 115C-102.5 to require the Commission on School Technology (was, the Chair of the State Board of Education) to select the member serving as chair of the Commission. Effective April 1, 2017.

Amends GS Chapter 115C to make language gender-neutral. Amends the General Statues by replacing the word "chairman" with "chair" when it refers to the chairman of the State Board of Education. Effective April 1, 2017.

Provides that to make the reduction in the number of appointments made by the Governor to the Board, when the term of an at-large member appointed by the Governor expires on March 31, 2017, the vacancy must not be filled. Effective January 1, 2017.