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

Amends Section 3 of SL 2013-362 regarding the transfer of real property that has been undervalued as a result of errors, which has resulted in an underpayment of taxes on the real property. Provides that if the property has changed owners in a tax year that requires reappraisal under SL 2013-362 resulting in underpayment, the taxes for each tax year before the fiscal year in which the transfer occurred and inclusive of the fiscal year in which the transfer occurred are to be collected against the owner of record as of January 1 of each tax year for which unpaid taxes exist. Permits the prior owner to enter into an agreement for a payment plan that is not more than 60 months in duration. Provides that if the unpaid taxes remain unpaid at the end of the 60 months, the collection method would be by levy, as provided in GS 105-367, or attachment and garnishment, as provided in GS 105-368.

Provides that if the current owner or a previous owner paid the underpaid taxes, the current owner may assert a valid defense for a refund of a tax imposed through clerical error under GS 105-381. Provides that the underpaid taxes are to be treated as taxes on discovered (was, undiscovered) property under GS 105-312, except that discovery penalties do not apply. Makes additional technical corrections.

Multiple provisions amended in this act are amended more than once with differing effective dates for the changes that are made.

Under current law, Articles 40 and 42 authorize North Carolina counties, which meet the provisions of Articles 40 and 42, to levy and collect sales and use tax in addition to any other state and local sales and use taxes levied under state law. Repeals Articles 40 (First One-Half Cent Local Government Sales and Use Tax) and 42 (Second One-Half Cent Local Government Sales and Use Tax) of GS Chapter 105 (Taxation). Effective January 1, 2016.

Repeals GS 105-164.13B, which provided that food was exempt from the sales and use tax in Article 5 of GS Chapter 105, except for the following food items: (1) dietary supplements; (2) food sold in a vending machine; (3) prepared food, other than bakery items sold without utensils by an artisan bakery; (4) candy; and (5) soft drinks. Amends GS 105-164.4(a), which imposes a privilege tax on a retailer doing business in North Carolina, to increase the general rate of tax from 4.75% to 5.75%, effective January 1, 2016. Again amends GS 105-164.4(a), as amended in this act, to increase the general tax from 5.75% to 6.25%, effective January 1, 2017. Amends GS 105-164.4(a), as amended by this act, to increase the general rate of tax to 6.75% (was, 6.25%), effective January 1, 2018. Adds new subdivision (15) to GS 105-164.4(a), effective January 1, 2016, to provide that the percentage rate of tax on food is 2% with the exception of the food items previously listed in GS 105-164.13B (repealed in this act) as not exempt from the sales and use tax. Deletes soft drinks from the list of food items that are not exempt from the sales and use tax rate in Article 5, GS Chapter 105.

Amends Part 8 of Article 5 of GS Chapter 105, adding a new GS 105-164.44M, Distribution of part of sales tax revenue to counties and cities, effective January 1, 2016. Provides for an annual appropriation from the General Fund to the counties and cities in the amounts necessary to make the distribution under this statute.Declares that the General Assembly finds that the revenue distributed under this section is local revenue and not a state expenditure for the purposes of Section 5(3) of Article II of the North Carolina Constitution. Prohibits the Governor from reducing or withholding the distribution. Sets out the provisions regarding the monthly distribution by the Secretary of part of the taxes imposed by GS 105-164.4 to the counties and cities, including calculating the amount to be distributed and the deduction, for local government services. Provides the amount of taxes imposed by GS 105-164.4 that the Secretary must distribute monthly to the counties and cities is an amount equal to 17.39% of the net proceeds of the sales and use tax imposed at the general rate of tax. Requires the Secretary to allocate the distribution to the counties on a per capita basis and provides criteria regarding the phase-out adjustment factor, including a table specifying counties and the applicable adjustment factor. Also requires the Secretary allocate the revenue from the sales tax on food. Directs the Secretary to determine a per capita figure for use in making distributions among a county and its cities. Requires a county to use 22.5% of the revenue it receives via the distribution of part of the sales tax revenue for public school capital outlay. Allows a county to use part or all of the revenue for any lawful purpose with authorization from the local Government Commission. Provides that an ineligible city is disregarded for all purposes under this section and defines criteria that makes a city ineligible.

Effective January 1, 2017, amends GS 105-164.44M, as enacted in this act, to change the amount of taxes imposed by GS 105-164.4 that the Secretary must distribute monthly to the counties and cities to an amount equal to 24% (was, 17.39%) of the net proceeds of the sales and use tax imposed at the general rate of tax. Also amends the adjustment factor for the indicated counties.

Effective January 1, 2018, amends GS 105-164.44M, as enacted in this act, to change the amount of taxes imposed by GS 105-164.4 that the Secretary must distribute monthly to the counties and cities to an amount equal to 29.63% (was, 24%) of the net proceeds of the sales and use tax imposed at the general rate of tax. Makes additional changes to the county allocation and the distribution between counties and cities.

Repeals GS 105-164.44M(d1), concerning the phaseout of the adjustment factor and (d2), concerning the allocation of sales tax on food effective January 1, 2018.

Makes a conforming change to GS 105-536 (Limitations), deleting references to Articles 40 and 42, repealed in this act. Amends GS 105-537(a) to provide criteria under which the board of county commissioners may exercise its authority to levy a local sales and use tax at the rate of 0.25%. Effective January 1, 2016.

Amends GS 105-536, as amended by this act, to provide that Article 5 of GS Chapter 105 applies only to counties that levy a one-half percent (was, the first one-cent) sales and use tax under Article 39 of GS Chapter 105 or SL 1967-1096. Effective January 1, 2017.

Effective January 1, 2020, amends GS 105-537(a), as amended in this act, to provide that if a majority of voters in a special election approve the levy of the local sales and use tax, the board of county commissioners may, by resolution, after 10 days of public notice, levy a local sales and use tax at a rate of 0.25%.

Amends Article 39 of GS Chapter 105, adding new GS 105-464A, Reduction in Tax Rate, to provide that the tax rate authorized under Article 39 is one-half percent for sales occurring on or after January 1, 2017, and a county's resolution to levy a 1% local sales and use tax, enacted before January 1, 2017, is considered to be a resolution authorizing the levy of a one-half percent local sales and use tax under Article 39. Requires a board of elections that holds a special election on the question of repealing a local sales and use tax authorized under Article 39 to modify the form of the ballot question in accordance with the changes made by GS 105-464A. Also adds a new section to Chapter 1096 of the 1967 Session Laws, as amended, to specifically apply the provisions of new GS 105-464A to Mecklenburg County. Effective January 1, 2017.

Repeals Article 39 (first one cent local government sales and use tax) of GS Chapter 105 and SL 1967-1096 as amended by this act, effective January 1, 2018.

Effective January 1, 2018, amends Article 46, One-Quarter Cent County Sales and Use Tax, of GS Chapter 105. Makes a conforming change to reflect the repeal by this act of Article 39 of GS Chapter 105 and SL 1967-1096. Adds new subsections to GS 105-537, which provide for setting the effective date for the levy of a local sales and use tax by a county board of commissioners, the required process for the county board of commissioners to provide notification upon adopting a resolution levying the tax, and provisions regarding the collection and administration of the tax in GS 105-538. Provides details as to building materials that are exempt from the provisions of Article 46.

Enacts new GS 105-539 to provide information as to the scope of the sales and use tax, including sourcing and credit for tax paid. Also enacts new GS 105-540 regarding exemptions and refunds, and new GS 105-541 regarding the Secretary's responsibilities in the distribution of revenue from the sales and use tax collected. Enacts new GS 105-542 to provide the requirements for the repeal of a 0.25% sales and use tax, including the ballot question requirements. Makes additional conforming changes. Effective January 1, 2018, and applies to sales occurring on or after that date.

Provides that this act does not affect the rights or liabilities of a taxing county, a taxpayer, or another person that arise under a statute repealed by this act before the effective date of its repeal and does not affect the right to any refund or credit of a tax that accrued under the repealed statute before the effective date of its repeal.

Except as otherwise indicated, this act is effective when it becomes law.

Repeals Article 2E, Transportation Corridor Official Map Act, of GS Chapter 136. Makes a conforming change to GS 47-30(l), deleting a reference to Article 2E, repealed in this act. 

Makes an additional conforming change, repealing GS 160A-458.4 and subsection (c) of GS 161-14.

Directs the Department of Transportation (DOT) to study developing a process for acquiring land for future highway construction that is in accordance with the holding in Kirby v. North Carolina Department of Transportation, No. COA14-184 (NC Ct. App. 2015). Requires the DOT to report its findings, recommendations, and any legislative proposals to the Joint Legislative Transportation Oversight Committee no later than six months after this act becomes law.

Except as otherwise indicated, this act is effective when it becomes law and applies to maps filed on or after that date.

Enact new GS 145-48 adopting the osprey as the state's official raptor.

Appropriates $50,000 for 2015‑16 from the General Fund to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services for the purchase of opioid antagonists. Requires that (1) $25,000 of the funds be used to purchase opioid antagonists to be distributed for free to an incorporated, nonprofit organization in this state that provides services to individuals at risk of experiencing an opioid‑related drug overdose or to the friends and family members of an at‑risk individual and (2) $25,000 of the funds be used to purchase opioid antagonists to be distributed for free to North Carolina law enforcement agencies. Effective July 1, 2015.

Enacts new Article 13, Cemeteries on State Property, in GS Chapter 65. Requires the head of each state agency to (1) identify and inventory all known cemeteries within the property boundaries of state-owned land that is allocated to the agency and (2) give a copy of the inventory to the State Property Office and the Department of Cultural Resources. Requires the Department of Cultural Resources to (1) map, mark, and delineate all cemeteries on state property and (2) ensure that all cemetery boundaries on state property are clearly laid out, defined, and marked and to preserve them from encroachment. Provides that state agencies are not required to provide funds or resources to maintain cemeteries on state property, except when required or necessary to correct a safety hazard. Allows state agencies to allow a family member or other interested person to maintain cemeteries and erect specified structures within the cemetery if doing so does not constitute a safety hazard.

Appropriates $210,000 for 2015-16 to the Department of Health and Human Services (DHHS), Office of the Secretary, to implement a community paramedicine pilot project, with a focus on expanding the role of paramedics to allow for community‑based initiatives resulting in care that avoids nonemergency use of emergency rooms and 911 services and avoids unnecessary admissions into health care facilities.

Requires the North Carolina Office of Emergency Medical Services (NCOEMS) to set the requirements necessary to qualify as a community paramedic eligible to participate in the pilot program and requires DHHS to consult with the NCOEMS to define the objectives, set standards, and establish the required outcomes for the project.

Requires DHHS to establish up to three pilot program sites to implement the pilot project. Allows each program site to be awarded up to $70,000 for 2015-16 and allows preference to be given to counties who already have an established community paramedic program.

Requires DHHS to report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division by June 1, 2016, on the progress of the project, including an evaluation plan based on the US Department of Health and Human Services, Health Resources and Services Administration Office of Rural Health Policy's Community Paramedicine Evaluation Tool. Requires DHHS to submit a final report that includes specified items to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division by November 1, 2016.

Effective July 1, 2015. 

Establishes the teacher salary schedule for 2015-16, applicable to teachers with years of experience from 0 to 36+ years; the schedule includes 13 salary steps. Appropriates $20,049,275 for 2015‑16 and $20,049,275 for 2016‑17 from the General Fund to the Department of Public Instruction to implement the provisions of this act. Effective July 1, 2015.

Amends the uniform fees statute for registers of deeds found in GS 161-10 to provide a fee structure for services related to financing statements or other records, including $38 for filing and indexing financial statements or records with two or fewer pages; for filing and indexing financial statements or records with more than two pages, $45 for the first 10 pages plus $2 for each additional page; and a $38 fee for responding to an information request and other specified communications. Sets out actions and activities to which the above provisions do not apply. 

Amends GS 25-9-525 making technical, clarifying, and conforming changes.

Effective October 1, 2015, applying to instruments registered on or after that date. 

Amends GS 115C-174.11 to require the State Board of Education (State Board) to approve three diagnostic reading assessment instruments that meet specified requirements for selection by local school administrative units. Requires each local school administrative unit to select one of the three reading assessments. Applies beginning with the 2015-16 school year.

Identical to H 306, filed 3/18/15.

Enacts new GS 58-3-282, concerning coverage for certain anticancer drugs, applicable to every health benefit plan offered by an insurer that provides coverage for prescribed, orally administered anticancer drugs that are used to kill or slow the growth of cancerous cells and that provides coverage for intravenously administered or injected anticancer drugs, requiring that such plans must provide coverage for prescribed, orally administered anticancer drugs on a basis no less favorable than the coverage provided for the intravenously administered or injected anticancer drug.

Prohibits coverage for orally administered anticancer drugs from being subject to prior authorization, dollar limit, co-payment, coinsurance, deductible provision, or any other out-of-pocket expense that does not apply to intravenously administered or injected anticancer drugs.

Prohibits achieving compliance by reclassifying drugs or increasing cost-sharing expenses imposed on anticancer drugs. Provides that if out-of-pocket expenses are increased for anticancer drugs then the same must also be applied to the majority of comparable medical or pharmaceutical benefits of the policy, contract, or plan.

Applies to insurance contracts issued, renewed, or amended on or after January 1, 2016. However, provides that it does not become effective if the act is determined by the federal government to create a state-required benefit that is in excess of the essential health benefits pursuant to 45 CFR 155.170(a)(3).

Amends GS 20-158 to allow a driver to make a left turn after stopping at a red light if the vehicle is: (1) exiting an interstate and entering a diverging diamond interchange with traffic traveling from right to left or (2) entering an interstate and exiting a diverging diamond interchange with traffic traveling from right to left. Applies to offenses committed on or after October 1, 2015.

Amends GS 14-409.40, Statewide uniformity of local regulation adding a new subsection (a2) which provides further intent behind the statute as deterring and preventing the violation of this statute and the rights protected under the Constitution and laws of the State related to firearms and ammunition by laws passed under the color of local or state authority.  Adds language further prohibiting counties or municipalities from regulating in any manner the taxation, manufacture, or transportation of firearms, ammunition, components, dealers in firearms or handgun components (currently prohibits regulations of only the possession, ownership, storage, transfer, sale, purchase, licensing, and registration of above firearm(s) or related). 

Enacts new GS 14-409.40(h), which provides penalties and liability for counties and municipalities that violate the General Assembly's exclusive authority to regulate firearms and ammunition, including providing for a court to declare such ordinance or regulation invalid and issue a permanent injunction against the local government as well as civil fines of up to $5,000 against the elected official or head of any other governmental entity for a knowing and willful violation of the above prohibition on regulation.

Effective December 1, 2015, applying to violations occurring on or after that date. 

As the title indicates. Amends GS 136-202 to limit each Metropolitan Planning Organization (MPO) and amends GS 136-212 to limit each Rural Transportation Planning Organization (RPO) to only conducting studies for projects which the MPO has sufficient funding available to begin work on or complete, regardless of any state law to the contrary.Effective when this act becomes law and applies to studies conducted on or after that date.

Identical to H 321, filed 3/19/15.

Applies to Congress for the calling of a convention of the states limited to proposing amendments to the Constitution of the United States that (1) impose fiscal restraints on the federal government, (2) limit the power and jurisdiction of the federal government, and (3) limit the terms of office for its officials and for members of Congress. Specifies that this application is a continuing application until the legislatures of at least two‑thirds of the states have made identical or substantially similar applications. The application expires September 30, 2015, if the legislatures of at least two‑thirds of the several states have not made identical or substantially similar applications. Requires the Secretary of State to transmit copies of this act to specified entities. 

Amends GS 115C-47, GS 115C-218.75, and GS 115C-238.66 to encourage local boards of education, charter schools, and regional schools to facilitate access for students to participate in the Boy Scouts and Girl Scouts. Prohibits student participation in activities offered by these organizations from interfering with instructional time during the school day.

Amends the definition for commercial real estate found in GS 44A-24.2, concerning definitions for the Commercial Real Estate Broker Lien Act, providing that the term describes real property or interest therein that at the time it is made the subject of an agreement for broker services is lawfully used for sales, office, research, institutional, warehouse, manufacturing, industrial, or mining purposes or for multifamily and/or residential purposes involving five or more dwelling units (was, or for multifamily residential purposes involving five or more dwelling units).

Amends GS 7A-304(a) concerning costs in criminal actions, providing that out of criminal case in the superior or district court, where the defendant is convicted or enters a plea of guilty or nolo contendere or when costs are assessed against the prosecuting witness, there will be a cost assessed for the supplemental pension benefits of sheriffs in the amount of $2.50 (was, $1.25).

Effective July 1, 2015, and applies to court costs imposed or collected on or after that date, but creates an exception for misdemeanor cases disposed of on or after that date by written appearance, waiver of trial or hearing, or plea of guilty or admission of responsibility in specified circumstances. 

Repeals GS 94-12, as the title indicate. Effective July 1, 2015.

Under current law, GS 14-269.2 provides a prohibition against carrying a concealed weapon on campus or other educational property but also identifies exemptions from the prohibition against concealed firearms on campuses and other educational property in subsection (g).

Enacts a new subdivision (8) under GS 14-269.2(g) to provide that a person registered under GS Chapter 74C as an armed security guard is exempt from the concealed firearm prohibition when that person is acting in the discharge of the guard's duties and with the permission of the college, university, or superintendent of the local school administrative unit. Requires the college, university, or superintendent to provide a list of the armed security guards employed by the college, university, or public school upon request from any law enforcement agency, and to update the list as necessary. Provides that a person whose name is not included on the list provided to a local law enforcement agency is not guilty of a criminal violation of this section because the person's name is omitted from the list, as long as the person satisfies the criteria of this subdivision.

Effective December 1, 2015.

Appropriates $8 million for 2015-16 and $8 million for 2016-17 from the General Fund to the UNC Board of Governors to be allocated to the Brody School of Medicine at East Carolina University. Effective July 1, 2015.

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 other than parties to the confidentiality agreement 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.

Effective October 1, 2015, and applies to court orders and private agreements entered into on or after that date.

 

To be summarized.

Amends GS 50-6 to allow a spouse to seek a divorce without meeting the one year separation requirement if that spouse is a victim of the other spouse's Class A, B1, B2, C, D, E, or F felony, or attempt or conspiracy thereof. 

Amends GS 14-27.7A as the title indicates. Applies to offenses committed on or after December 1, 2015.

Enacts new Article 2E, Accountability for Taxpayer Investment Act, to GS Chapter 143 to require uniform, program-level accountability information in state government. Article 2E applies to any state agency in the executive branch and to any non-state entity that receives state funds. Defines non-state entity as any of the following non-state agencies discretely presented as a component unit in the State Comprehensive Annual Financial Report by the Governmental Accounting Standards Board: an individual, firm, partnership, association, corporation, or any other organization or group acting as a unit. Includes additional definitions applicable to Article 2E.

Effective July 1, 2015, creates the Taxpayer Investment Accountability Board (Board), with four specified members. Details meeting requirements, administration criteria, and Board responsibilities including the publication of an annual report.

Directs each state agency, and each non-state entity receiving state funds, to establish, implement, and maintain a system to provide uniform, program-level accountability information that accurately conveys the mission, responsibilities, and activities of the state agency or entity and any other information required by the Board. Requires the system to comply with Board guidelines, be updated on a timely basis, and be accessible to NC citizens. Lists items to be included in the information system, including performance measures for each program, revenues by source and expenditures by purchasing category, and a listing of all employees.

Requires each agency or non-state entity to file annual certificates of compliance, with the first certificate due June 30, 2017. Requires internal auditors in applicable state agencies to conduct annual compliance audits and submit audit reports to the State Auditor and State Controller by April 1, 2017, and annually thereafter. Authorizes the State Auditor to verify compliance on an annual basis.

Permits any person to institute a suit in superior court requesting a judgment that the state agency or non-state entity failed to comply with Article 2E, and grants specific performance. Sets forth additional provisions related to actions for noncompliance. Directs the Office of State Human Resources to adopt rules for the organization charts and manager-to-employee ratios and to provide templates and technical assistance. Also directs the Office of State Budget and Management and the Office of Information Technology to provide technical assistance and software as required.

Makes a conforming change to GS 150B-1(c), exempting the Board from the Administrative Procedure Act.

Directs each state agency or non-state entity subject to proposed Article 2E to bring its current information system into compliance and to use existing resources to do so.

Effective July 1, 2016, unless otherwise provided.