The Daily Bulletin: 2015-03-30

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The Daily Bulletin: 2015-03-30

PUBLIC/HOUSE BILLS
H 390 (2015-2016) BEAUFORT CO. CC/WASHINGTON CO. Filed Mar 30 2015, A BILL TO BE ENTITLED AN ACT TO AUTHORIZE THE EXPANSION OF THE BOARD OF TRUSTEES OF BEAUFORT COUNTY COMMUNITY COLLEGE; TO PROVIDE THAT BEAUFORT COUNTY COMMUNITY COLLEGE SHALL SERVE ALL OF WASHINGTON COUNTY; AND TO DIRECT THE STATE BOARD OF COMMUNITY COLLEGES TO REVIEW SERVICE AREAS THAT INCLUDE MULTIPLE COMMUNITY COLLEGES FOR ONE COUNTY.

As title indicates. Makes the requirement that the State Board of Community Colleges designate all of Washington County as within the Beaufort County Community College service area effective July 1, 2015.

Intro. by Tine.Beaufort, Washington
H 391 (2015-2016) REDUCE ABC FEES PAID BY VFW POST. Filed Mar 30 2015, AN ACT TO REDUCE THE AMOUNT OF CERTAIN FEES ASSESSED BY THE ABC COMMISSION TO A VETERANS OF FOREIGN WARS POST.

Amends GS 18B-903 to reduce the ABC permit renewal application fee for any permit issued to a Veterans of Foreign Wars post by 90%. Sets the annual registration and inspection fee for each malt beverage, fortified wine, or unfortified wine permit held by a Veterans of Foreign Wars post at $40 instead of $400. Applies to renewals and registrations on or after July 1, 2015.

Intro. by Bumgardner.GS 18B
H 395 (2015-2016) BODY AND DASHBOARD CAMERAS/LAW ENFORCEMENT. Filed Mar 30 2015, AN ACT TO REQUIRE MOST LAW ENFORCEMENT OFFICERS TO WEAR AND ACTIVATE BODY-WORN CAMERAS DURING CERTAIN INTERACTIONS WITH THE PUBLIC, TO ESTABLISH A USE POLICY FOR BODY-WORN CAMERAS AND DASHBOARD CAMERAS, AND TO ESTABLISH AN ACCESS POLICY FOR RECORDINGS CAPTURED BY BODY-WORN CAMERAS AND DASHBOARD CAMERAS.

Adds new Article 7, Body-Worn Cameras and Dashboard Cameras in GS Chapter 15A. Requires a law enforcement officer to wear and activate a body‑worn camera during any recordable interaction and inform the person the law enforcement officer is interacting with that the interaction is being recorded. Prohibits deactivating a body‑worn camera until (1) the conclusion of the recordable interaction; (2) the law enforcement officer has left the scene; (3) a supervisor, while being recorded, authorizes the law enforcement officer to deactivate the body‑worn camera; or (4) an exception listed in the statute authorizes deactivation. Specifies actions that must be taken before deactivating a body‑worn camera. Specifies seven exceptions to the requirement to activate a body‑worn camera. Requires a law enforcement officer to sign a waiver consenting to be recorded by a body‑worn camera and an acknowledgment of the requirements of the statute. Allows a recording captured by a body‑worn camera to be used as evidence in any relevant administrative, civil, or criminal proceeding. Allows a law enforcement agency to disclose or provide a copy of any recording captured by a body‑worn camera to any person requesting the information in writing. Allows any person who is denied access to a recording to apply to the appropriate division of the General Court of Justice for an order compelling disclosure or copying. Requires a law enforcement agency to keep an original, unredacted recording captured by a body‑worn camera for the later of (1) 60 days from the date of the recording; (2) the period specified in a court order; or (3) 10 days from the date an administrative, civil, or criminal proceeding in which the recording was used as evidence concludes.

Provides that if a law enforcement vehicle is equipped with a dashboard camera, it must be activated during a traffic stop, vehicle pursuit, vehicle search, or other interaction with the public that is within the range of the camera. Requires a law enforcement officer to inform the person the law enforcement officer is interacting with that the interaction is being recorded. Prohibits deactivating a dashboard camera until (1) the conclusion of the traffic stop, vehicle pursuit, vehicle search, or other interaction with the public; (2) the law enforcement officer has left the scene; (3) a supervisor, while being recorded, authorizes the law enforcement officer to deactivate the dashboard camera; or (4) an exception listed in subsection (b) of this section authorizes deactivation. Sets out exceptions to the requirement to activate a dashboard camera. 

The above provisions are effective January 1, 2016, for members and officers of the State Highway Patrol and county law enforcement officers and effective January 1, 2017, for the remaining law enforcement officers subject to this act.

Appropriates from the General Fund to the Governor's Crime Commission within the Department of Public Safety $5,000,000 in nonrecurring funds for the 2015‑16 fiscal year and $5,000,000 in nonrecurring funds for the 2016‑17 fiscal year to provide grants to law enforcement agencies for the purposes of purchasing and maintaining body‑worn cameras. Requires grants to be matched on the basis of $1 in grant funds for every $5 in nongrant funds. Limits individual grant amounts to $100,000. Requires the Governor's Crime Commission to develop guidelines and procedures for the administration and distribution of grants. Effective July 1, 2015.

Intro. by Alexander, Floyd, Hanes.APPROP, GS 15A
H 396 (2015-2016) CC INNOVATIVE PILOT PROGRAM. Filed Mar 30 2015, AN ACT TO ESTABLISH A COMMUNITY COLLEGE INNOVATIVE PILOT PROGRAM.

Requires the State Board of Community Colleges (Board) to establish the Community College Innovative Pilot Program for participating community colleges to establish new, innovative workforce development programs in development tier one and tier two counties. Specifies the purpose of the pilot. Requires implementation to begin with the 2016‑17 academic year and continue for of three academic years, ending with the 2018‑19 academic year. Requires the Board, in collaboration with the Department of Commerce, to develop criteria for approval of an application submitted by a community college serving a development tier one or tier two county to participate in the pilot program. Requires the Board to report to the Joint Legislative Education Oversight Committee by September 1, 2019, on the implementation and administration of the pilot program. 

Appropriates from the General Fund to the Community Colleges System Office $5 million for 2015‑16 and $5 million for 2016‑17 to provide funds to implement the requirements of this act. Allows the Community Colleges System Office to use up to $100,000 of these funds each fiscal year for administration and evaluation of the pilot program. Provides that these funds appropriated for 2015‑16 do not revert at the end of the fiscal year, but shall remain available for expenditure for the purposes set forth in this act until June 30, 2017. Effective July 1, 2015. 

Intro. by Tine, Bryan, Horn, Waddell.APPROP, STUDY
H 397 (2015-2016) CLARIFY PROTECTIONS/EXPLOITATION OF ELDERS. Filed Mar 30 2015, AN ACT TO CLARIFY THAT UPON CONVICTION FOR EXPLOITATION OF AN OLDER ADULT OR DISABLED ADULT, ANY SEIZED ASSETS SHALL BE USED TO SATISFY THE DEFENDANT'S RESTITUTION OBLIGATION AS ORDERED BY THE COURT.

Amends GS 14-112.3, as the title indicates. 

Intro. by Glazier.GS 14
H 398 (2015-2016) INCREASE ERRONEOUS CONVICTION COMPENSATION. Filed Mar 30 2015, AN ACT TO INCREASE THE COMPENSATION FOR PERSONS ERRONEOUSLY CONVICTED OF A CAPITAL FELONY AND SENTENCED TO DEATH.

Amends GS 148-84 as follows. Requires the Industrial Commission to award a  claimant who was imprisoned erroneously for a capital felony and sentenced to death $100,000 for each year or the pro rata amount for the portion of each year of the imprisonment actually served, including any time spent awaiting trial. Requires that a claimant who was imprisoned erroneously for a capital felony and sentenced to life imprisonment or who was imprisoned erroneously for a noncapital felony to be awarded $50,000 for each year or the pro rata amount for the portion of each year of the imprisonment actually served, including any time spent awaiting trial. Prohibits compensation from exceeding $1.5 million for a claimant  who was imprisoned erroneously for a capital felony and sentenced to death and $750,000 for a claimant who was imprisoned erroneously for a capital felony and sentenced to life imprisonment or who was imprisoned erroneously for a noncapital felony.

Effective when the act becomes law and applies to any person granted a pardon of innocence on or after that date.

Intro. by Glazier, Michaux, Harrison.GS 148
H 399 (2015-2016) YOUNG OFFENDERS REHABILITATION ACT. Filed Mar 30 2015, AN ACT TO ESTABLISH THE JUVENILE JURISDICTION ADVISORY COMMITTEE, TO CREATE A PILOT CIVIL CITATION PROCESS FOR JUVENILES, AND TO RAISE THE AGE OF JUVENILE JURISDICTION TO INCLUDE SIXTEEN- AND SEVENTEEN-YEAR-OLDS WHO HAVE COMMITTED MISDEMEANOR OFFENSES.

To be summarized.

Intro. by Avila, Farmer-Butterfield, Jordan, D. Hall.

The Daily Bulletin: 2015-03-30

PUBLIC/SENATE BILLS
S 453 (2015-2016) REGULATORY REFORM ACT OF 2015. Filed Mar 25 2015, AN ACT TO PROVIDE FURTHER REGULATORY RELIEF TO THE CITIZENS OF NORTH CAROLINA BY PROVIDING FOR VARIOUS ADMINISTRATIVE REFORMS, BY ELIMINATING CERTAIN UNNECESSARY OR OUTDATED STATUTES AND REGULATIONS AND MODERNIZING OR SIMPLIFYING CUMBERSOME OR OUTDATED REGULATIONS, AND BY MAKING VARIOUS OTHER STATUTORY CHANGES.

Part I. Administrative Reforms

Section 1.1

Repeals GS 14‑197 (Using profane or indecent language on public highways; counties exempt) and GS 14‑401.8 (Refusing to relinquish party telephone line in emergency; false statement of emergency).

Section 1.2

Enacts new GS 150B-25.1 to provide that the petitioner in a contested case has the burden of proving the facts by a preponderance of the evidence. Places the burden on the state agency when the contested case involves the imposition of civil fines or penalties to show, by a preponderance of the evidence, that the person actually committed the act for which the fine or penalty was imposed. Places the burden of showing by a preponderance of the evidence that a career state employee subject to GS Chapter 126 was discharged, suspended, or demoted for just cause on the agency.

Requires the Joint Legislative Administrative Procedure Oversight Committee to study whether there are other categories of contested cases where the burned of proof should be placed with the agency. 

Applies to contested cases commenced on or after the date the section becomes effective.

Section 1.3

Amends GS 120-121 by adding two new subsections, (e) and (f), regarding legislative appointments. Under subsection (e), when the Speaker of the House of Representatives (Speaker) or the President Pro Tempore of the Senate (President Pro Tem) is directed by law to make a recommendation for an appointment by the General Assembly and the legislator is also directed to make the recommendation in consultation or upon the recommendation of a third party, the following applies: (1) the recommendation or consultation is discretionary and not binding upon the legislator, (2) the third party must make the recommendation or consultation at least 60 days before the expiration of the term or within 10 business days from the occurrence of a vacancy, and (3) failure by the third party to submit the recommendation or consultation to the legislature within the required time periods are to be viewed as a waiver by the third party of the opportunity. Provides that subsection (f) applies when the Speaker or the President Pro Tem is directed by law to make a recommendation for an appointment by the General Assembly and the legislator is also directed to make the recommendation from nominees provided by a third party. Under subsection (f), the third party must submit the nominees at least 60 days before the expiration of the term or within 10 business days from when the vacancy occurs; if the third party fails to submit the nomination to the legislator within the time periods required under this subsection, the failure to submit the nomination is deemed a waiver on the part of the third party.

Enacts new GS 120-124, Appointments made by legislators, to provide that in any case where a legislator is called upon by law to appoint a member to a board or commission on the recommendation or in consultation with a third party, the recommendation or consultation is discretionary and is not binding on the legislator. Requires the third party to submit the recommendation or consultation at least 60 days before the expiration of the term or within 10 business days from the occurrence of a vacancy. Provides that in any case where a legislator is called upon by law to appoint a member to a board or commission from nominees provided by a third party, the third party must submit the recommendation or consultation at least 60 days before the expiration of the term or within 10 business days from the occurrence of a vacancy. Provides that this subsection does not apply to nominations made under GS 120-99(a) (creation and composition of the Legislative Ethics Committee) nor under GS 120-100(b) (filling a vacancy on the Legislative Ethics Committee). Failure to submit the recommendation, consultation, or nomination within the time periods required under this section shall be deemed a waiver of the opportunity by the third party.

Makes this section effective when it becomes law and applies to recommendations, consultations, and nominations made on or after that date.

Part II. Business Regulation

Section 2.1

Amends GS 93A-2(c)(1), concerning license requirements of real estate brokers, providing that owners of an exempt closely held business as well as officers, managers, and employees of a closely held business entity owned by a person meeting the specified qualifications are not subject to licensure or other requirements found in GS 93A-1 or GS 93A-2. Makes organizational and clarifying changes to the statute. No longer requires managers of an exempt limited liability company to be engaged in acts or services for which the entity would be exempt in order be eligible for the exemption. Also extends the exemption to employees of an exempt limited liability company or an exempt partnership.

Part III. State and Local Government Regulations

Section 3.1

Amends Subsection 6A.14(a) of SL 2011-145 to require that agencies report annually, instead of quarterly, on issues related to agency mobile phones.

Section 3.2

Amends GS 20-27.6 to allow, instead of require, a sign designating a handicapped parking space to state the maximum penalty for parking in the space in violation of the law. Adds that a sign designating the handicapped parking space must not state the incorrect maximum penalty. Also increases the minimum fine for parking in a handicapped space without the required placard from $100 to $250 and increases the maximum from $250 to $500. Applies to offenses committed on or after December 1, 2015. 

Section 3.3

Amends GS 14-56 to add that it is not illegal for any person to break or enter any railroad car, motor vehicle, trailer, aircraft, boat, or other watercraft if: (1) the person acts in good faith to access a person inside the railroad car, motor vehicle, trailer, aircraft, boat, or watercraft to provide first aid or emergency health care treatment or because the person inside is in imminent danger; (2) it is reasonably apparent that the circumstances require prompt decisions and actions in medical, other health care, or other assistance; or (3) the necessity of immediate health care treatment or removal of the person is so reasonably apparent that any delay in the rendering of treatment or removal would seriously worsen the physical condition or endanger the life of the person. Applies to offenses committed on or after July 1, 2015.

Section 3.4

Enacts new Article 43F, Immunity for Damage to Vehicle, in GS Chapter 1 to provide immunity from civil liability for damage done to a railroad car, motor, vehicle, trailer, aircraft, boat, or other watercraft if one of the same three circumstances described in Section 3.3 above exist. Applies to causes of action arising on or after July 1, 2015.

Section 3.5

Amends various provisions of GS Chapter 15A to provide that a petition for expunction can not be denied solely based on a boating violation.

Section 3.6

Amends GS 20-84 to allow the Division of Motor Vehicles (DMV) to issue a permanent license plate for a trailer used as an attachment to the rear of a motorcycle. Effective July 1, 2015.

Section 3.7

Amends GS 20-137.1 to increase the penalty for having an unsecured child in a motor vehicle from $25 to $100. Provides that the failure to restrain an occupant who appears to be a child less than eight years old and less than 80 pounds is justification for stopping a vehicle. Deletes the provision prohibiting convicting a driver charged for failure to have a child under age eight properly secured in a restraint system if the driver produces proof at the trial that the driver has subsequently acquired an approved restrain system for the vehicle in which the child is normally transported. Applies to offenses committed on or after December 1, 2015.

Section 3.8

Amends GS 122C-81 to allow exempting an MH/DD/SA provider that is accredited under the statute and in good standing with the national accrediting agency from routine monitoring that is duplicative of the national oversight. 

Section 3.9

Amends GS 130A-248 to provide that the issuance of a new permit or a transitional permit voids any previously issued permit for an establishment in that location.

Section 3.10

Amends SL 2011-145, Section 10.7(b), to require the Childcare Commission to recommend comprehensive (was, review and approve) evidence-based early childhood curricula with a reading component. Deletes the requirement that the curricula be included in More at Four. Makes conforming changes. Requires the North Carolina Foundations for Early Learning and Development report (Foundations) produced by the North Carolina Foundations Task Force standards to be used by four‑ and five‑star daycare facilities for selecting any curriculum and formative assessments that are used by the facilities in each classroom where four‑year‑old children are enrolled. Specifies administrator teacher  training requirements, as well as requirements for training other instructional staff. 

Part IV. Environmental and Natural Resources Regulation

Section 4.1

Enacts new Part 7D in GS Chapter 8, Environmental Audit Privilege and Limited Immunity, to create an environmental audit privilege to protect the confidentiality of communications relating to voluntary internal environmental audits. Defines environmental audit. Applies to activities regulated under environmental laws including (1) Article 7 of GS Chapter 74; (2) GS Chapter 104E; (3) Article 25 of GS Chapter 113; (4) Articles 1, 4, and 7 of GS Chapter 113A; (5) Article 9 of GS Chapter 130A; (6) Articles 21, 21A, and 21B of GS Chapter 143; and (7) Part 1 of Article 7 of GS Chapter 143B. Makes an environmental audit report privileged and immune from discovery and provides that it is not admissible as evidence in civil or administrative proceedings instituted by an enforcement agency. Lists seven documents that are exempt from the privilege. Provides that the privilege does not apply to criminal investigations or proceedings.

Provides that the privilege does not apply to the extent that it is expressly waived in writing. Specifies persons to whom the audit report and information generated from the audit may be disclosed without waiving privilege. Specifies instances in which disclosure of the audit does not constitute a waiver.

Requires an owner or operator, in order to assert the privilege, to notify the enforcement agency of the existence of the audit no later than 10 working days after an agency completes an inspection.

Allows an enforcement agency to seek by motion a declaratory ruling on the issue of whether an environmental audit report is privileged in a civil or administrative proceeding. Sets forth the circumstances under which the privilege can be revoked.

Provides that a party asserting the privilege has the burden of providing that (1) the materials claimed as privileged constitute an environmental audit report and (2) compliance has been achieved or will be within a reasonable period of time. A party seeking disclosure has the burden of providing the condition for disclosure.

Provides that the owner or operator of a facility is immune from imposition of civil and administrative penalties and fines for a violation of environmental laws voluntarily disclosed. The waiver of penalties and fines is not granted until the agency has certified that the violation was corrected within a reasonable period of time. Specifies conditions that must be met in order for a disclosure to be considered voluntary. Specifies factors that make a disclosure nonvoluntary. A voluntary disclosure is subject to disclosure under the Public Records Act.

Prohibits local laws, rules, ordinances, or permit conditions that circumvent or limit the privilege or the exercise of the privileges or the presumption and immunity established.

Provides that an owner or operator of a facility who makes a voluntary disclosure of a violation of environmental laws discovered through performance of an environmental audit is only entitled to exercise the privilege or immunity once in a two-year period, no more than twice in a five-year period, and no more than three times in a ten-year period.

Effective July 1, 2015, and applies to environmental audits conducted on or after that date.

Section 4.2

Amends GS 143-64.12 to no longer require energy audits to be conducted.

Section 4.3

Repeals GS 74-54.1(c), no longer requiring reporting on the costs of The Mining Act of 1971.

Repeals GS 113-175.6, no longer requiring the annual report on the Marine Resources Fund and the Endowment Fund.

Amends GS 113-182.1 to no longer require a report on the development and implementation of fishery management plans.

Repeals GS 143B-279.15 to no longer require reporting on the One-Stop for Certain Environmental Permits Program.

Repeals GS 143B-289.44(d) to no longer require the report on the North Carolina Aquariums Fund.

Repeals GS 159I-29 to no longer require reports on loans made from the Solid Waste Management Loan Fund.

Repeals Section 2.3 of SL 2007-485 to no longer require the report on waterfront access.

Section 4.4

Requires the Coastal Resources Commission (Commission) to amend its rules for the use of temporary erosion control structures: (1) to allow the placement of temporary erosion control structures on a property experiencing coastal erosion even if there are no imminently threatened structures on the property if the property is adjacent to a property where temporary erosion control structures have been placed; (2) to allow the placement of contiguous temporary erosion control structures from one shoreline boundary of a property to the other shoreline boundary, regardless of proximity to an imminently threatened structure; and (3) requires the termination date of all permits for contiguous temporary erosion control structures on the same property to be the same and be the latest termination date for any of the permits. Also requires the Commission to adopt temporary rules to implement this section no later than December 31, 2015, and requires adopting permanent rules to implement this section.

Section 4.5

Repeals Part 8, Sedimentation Control Commission (Commission), of Article 7 of GS Chapter 143B. Amends various statutes in GS Chapters 113A, 143B, and 150B to make the Environmental Management Commission (EMC)  responsible for duties previously delegated to the Commission. Makes conforming changes to GS 143B-282. Requires the EMC to review rules adopted by the Commission and amend or repeal any rules that the EMC determines are outdated, unnecessary, duplicative, or confusing. Requires the EMC to report on any action taken to the Environmental Review Commission by January 1, 2016. Effective June 30, 2015.

Section 4.6

Repeals GS 130A-309.134(h) to no longer require reporting on the weight of discarded equipment recycled and associated compliance activities. 

Section 4.7

Repeals GS 130A-309.135(g) to no longer require reporting on recycled televisions.

Section 4.8

Repeals GS 130A-309.140, no longer requiring reporting on recycling of discarded computer equipment and televisions.

Section 4.9

Requires DENR to study ways to optimize the state's recycling requirements for discarded computer equipment and televisions. Specifies items that must be included in the study. Requires DENR to report to the Environmental Review Commission on or before December 1, 2015.

Section 4.12

Amends GS 130A-310.31 to provide that prospective developer has the same meaning as bona fide prospective purchaser under the Small Business Liability Relief and Brownfields Revitalization Act. Applies to notices of Intent to Redevelop a Brownfields Property filed on or after July 1, 2015.

Section 4.13

Repeals GS 105-102.6, concerning incentives for the recycling of newsprint and magazines and for the use of newsprint that contains recycled content.

Repeals GS 130A-309.17(d) and (i), concerning fees for the registration of persons transporting, collecting, or recycling used oil.

Part V.

Includes a severability clause.

Intro. by Wade, Brock, B. Jackson.GS 1, GS 8, GS 14, GS 15A, GS 20, GS 74, GS 93A, GS 105, GS 113, GS 113A, GS 120, GS 122C, GS 130A, GS 143, GS 143B, GS 150B
S 526 (2015-2016) JOB CREATION AND TAX RELIEF ACT OF 2015. Filed Mar 26 2015, AN ACT TO REDUCE PERSONAL INCOME TAXES; TO MODERNIZE, SIMPLIFY, AND REDUCE BUSINESS TAXES; AND TO ENCOURAGE ECONOMIC DEVELOPMENT THROUGH PHASING IN A SINGLE SALES TAX FACTOR APPORTIONMENT FORMULA AND TARGETING THE DISCRETIONARY INCENTIVE PROGRAMS TO RURAL COUNTIES AND TRANSFORMATIVE INDUSTRIES.

Part I. Individual Income Tax

Amends GS 105-153.5 by removing the standard deduction for individual income taxes. Makes clarifying and conforming changes to the deductions allowed for charitable contributions and home mortgage and real property taxes, the sum of which determine the amount of the itemized deduction. 

Amends GS 105-153.7, effective for taxable years beginning on or after January 1, 2016, to reduce the individual income tax rate from 5.75% to 5.625% and sets the rate at 0% for married individuals who file jointly and make up to $17,500; heads of household making up to $14,000; and unmarried individuals, or married individuals filing separately, making up to $8,750. Further amends GS 105-153.7, effective for taxable years beginning on or after January 1, 2017, to reduce the individual income tax rate to 5.5% and sets the rate at 0% for married individuals who file jointly and make up to $20,000; heads of household making up to $16,000; and unmarried individuals, or married individuals filing separately, making up to $10,000.

Part II. Franchise Tax

Amends GS 105-120.2 to require corporations to pay the greater of the following: (1) a franchise or privilege tax at the rate of $1.35 (was, $1.50) per $1,000 of the amount determined under the statute, and increases the cap on the tax from $75,000 to $150,00 and increases the minimum amount of the tax from $35 to $200 or (2) if the tax calculated under this provision exceeds the tax under (1), then the tax is levied at the rate of $1.35 per $1,000 on the greater of 55% of the appraised value of all the real and tangible personal property in this state of each such corporation plus the total appraised value of intangible property returned for taxation of intangible personal property or the total actual investment in tangible property in this state of such corporation. 

Amends GS 105-122 to require a corporation taxed under the statute to define its net worth, which is the corporation's total assets less its total liability. Adjusts net worth by allowing a deduction for the accumulated depreciation and amortization, requires an addition for indebtedness the corporation owes to a parent, subsidiary, or an affiliate (allowing specified adjustments to the amount), and allows a deduction of the cost of treasure stock. Requires corporations doing business in the state and in one or more other states to apportion its net worth (was, its capital stock, surplus, and undivided profits) to this state. Makes conforming changes. Deletes (d1), concerning allowable credits.

Effective for taxable years beginning on or after January 1, 2016.

Part III. Corporate Income Tax

Amends GS 105-130.3 to reduce the corporate income tax rate for C Corporations from 5% to 4.5%. Effective for taxable years beginning on or after January 1, 2016.

Repeals GS 105-130.3C, concerning the rate reduction trigger.

Further amends GS 105-130.3 to again reduce the corporate income tax rate for C Corporations to 4%. Effective for taxable years beginning on or after January 1, 2017. 

Amends GS 105-130.5 to require that royalty payments and interest expenses be added when determining state net income. Removes nine of the allowable deductions. Amends GS 105-130.7A to provide that royalty payments received for the use of intangible property in this state and interest expenses received from a related member are income derived from doing business in this state. Provides that the use of the royalty and interest expense reporting options does not prevent a corporation from otherwise having a filing requirement under other provisions of GS Chapter 105. Defines interest expense. Effective for taxable years beginning on or after January 1, 2016.

Part IV. Phase in Single Sales Factor Apportionment and Use Market-Based Sourcing

Amends GS 105-130.4(i) to require that all apportionable income of corporations other than public utilities, excluded corporations, and qualified capital intensive corporations be apportioned to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus four times (was, plus twice) the sales factor, and the denominator of which is six (was, four). Provides that if the sales factor does not exist, the denominator of the fraction is the number of existing factors and if the sales factor exists but the payroll factor or the property factor does not exist, the denominator of the fraction is the number of existing factors plus three (was one). Effective for taxable years beginning on or after January 1, 2016.

Further amends GS 105-130.4(i) to provide that apportionable income of corporations must be apportioned to this state by the sales factor as determined under subsection (l) of the statute. Effective for taxable years beginning on or after January 1, 2017.

Effective for taxable years beginning on or after January 1, 2017, repeals GS 105‑130.4(a)(4) (defining excluded corporation), (j) (concerning the property factor in determining apportionable income), (k) (concerning the payroll factor in determining apportionable income), and (s1) (concerning apportionable income of a qualified capital intensive corporation), and GS 105‑130.4(r1) as enacted by Section 4.2 of this act.

Amends GS 105-130.4 to add the following to the items that are not included in the gross receipts of the corporation when determining sales: (1) the portion of receipts from financial swaps and other similar financial derivatives that represents the notional principal amount that generates the cash flow traded in the swap agreement and (2) receipts in the nature of dividends subtracted under GS 105‑130.5(b)(3a), (3b), and dividends excluded for federal tax purposes. Adds that other sales are in this state if the taxpayer's market for the sales is in this State. Clarifies that the taxpayers' market for sales is in this state if one or more of the three specified conditions apply, and provides within those conditions the circumstances under which intangbile property is used in the state. Provides that sales of tangible personal property are sourced as provided elsewhere in the statute; other sales are sourced to this state as follows: (1) the receipts are from real or tangible personal property located in this state, (2) the receipts are from intangible property and are received from sources within this state, and (3) the receipts are from services and the income‑producing activities are in this State. Specifies how apportionable income of an excluded corporation is apportioned. Effective for taxable years beginning on or after January 1, 2016.

Part V. JDIG Modifications

Amends GS 143B-437.51, adding definitions for (1) high-yield project and (2) major market community to those that apply to the Job Development Investment Grant Program (JDIG).

Amends GS 143B-437.52, which established the JDIG Program, to specify limitations that apply to grant amounts awarded via the JDIG Program. Sets out factors determining the maximum amount for total annual liability for grants awarded in a single calendar year, the quarterly commitment limitations, and the maximum percentage of the amount authorized for grants awarded in a major market community.

Amends GS 143B-437.53 regarding determining the eligibility of grant applicants. Adds the requirement that wage standards be met and increases the minimum number of eligible positions. Also amends GS 143B-437.56, providing that the grant amount awarded will be a percentage of the withholding of eligible positions for a period of years and sets out further guidelines for determining the maximum percentage. Amends the criteria for determining the duration of the grant.

Provides that the authority of the Economic Investment Committee to award new grants expires January 1, 2018 (was, January 1, 2016).

Effective when the section becomes law and applies to awards made under Part 2G of Article 10 of GS Chapter 143B on or after that date.

Part VI.

Except as otherwise provided, the act is effective when it becomes law.

Intro. by Rucho, Rabon, Tillman.GS 105, GS 143B
S 541 (2015-2016) REGULATE TRANSPORTATION NETWORK COMPANIES. Filed Mar 26 2015, AN ACT TO REGULATE TRANSPORTATION NETWORK COMPANIES.

Enacts new GS Chapter 20, Article 10A, concerning the regulation of transportation network companies (TNC), setting out definitions for use in this section, including prearranged transportation services, transportation network company (TNC), TNC driver (driver), and TNC service (service). Provides that TNCs must hold a valid permit and continuously meet the the requirements of this Article to operate in North Carolina. Sets out four regulations for charging fees for use of the service, including that the TNC discloses the fee calculation method via its online application (app) prior to a ride request, the app provides an estimated fee before a ride request is completed, that the TNC sends an electronic receipt to the customer containing the specified information, and the fee must be paid electronically. Authorizes a driver to provide the service for compensation in North Carolina as well as to provide other services if the requirements are met to operate as a for-hire passenger vehicle.

Sets out provisions for obtaining the required permit to operate as a TNC in North Carolina, including paying a $5,000 nonrefundable application fee to the Department of Motor Vehicles (DMV). Requires the permit to be renewed annually for $5,000. Sets out the information that is required to apply for the above permit, including proof of the specified insurance requirements, resident agent for service of process, and proof of registration with the Secretary of State to do business in the State.

Provides financial responsibility provisions, requiring TNCs to provide liability insurance for bodily injury or death of others and for injury or destruction of property while a car is used in the service in the amount equal to or greater than $1.5 million. Requires the TNC to provide liability insurance for each vehicle utilized by the driver while the driver is available on the  TNC's app subject to specific limits.

Requires the TNC to disclose in writing to its drivers specified insurance information, including the insurance coverage limits of liability that the TNC provides, and also state that the driver's personal automobile insurance may not provide required or optional coverage when the driver uses a vehicle in connection with a company's online application or platform.

Specifies safety requirements for TNCs and drivers, including a requirement that TNCs require their drivers to have their vehicles inspected annually. Also requires the TNC app to provide specified information after a ride request has been accepted by a driver, including license plate number of the driver's vehicle, a description of the driver's vehicle, and approximate location of the driver's vehicle displayed on a map. Requires a TNC to maintain  records of each TNC service provided for one year from the date of the service and the record of each driver for one year from the date the driver terminated their relationship with the TNC.

Requires TNCs, before permitting an individual to act as a driver, to submit an application, including, at a minimum, the address, age, driver's license number, driving history, vehicle registration, and liability insurance information. Also requires a TNC to (1) conduct, or have a third party conduct, a local and national criminal history records check for each applicant, using specified databases and (2) obtain and review a driving record check for each applicant.

Provides seven conditions where if applicable to an applicant or his or her record, then a TNC is prohibited from approving that individual's application to be a driver, including that the applicant does not possess a valid driver's license, is a match in the National Sex Offender Registry, or is not at least 19 years old. Conditions also include various moving violations and criminal offenses.

Authorizes the DMV to issue regulations to implement GS Chapter 20, Article 10A.

Includes a rebuttable presumption that drivers are independent contractors.

Prohibits the regulation of TNCs or services by any other law, regulation, or authority in North Carolina.

Amends GS 20-4.01(27), the definition for passenger vehicles, making technical changes and adding language that provides that vehicles operated in a TNC service under GS Chapter 20, Article 10A, are considered as for-hire passenger vehicles.

Amends GS 20-87 making conforming and clarifying changes.

Amends GS 153A-134 and GS 160A-194, updating language by deleting "digital dispatching services for prearranged transportation services for hire" and replacing it with "A TNC service regulated under Article 10A of Chapter 20 of the General Statutes."

Amends GS 160A-304, Regulation of taxis, making technical changes reflecting the new provisions regulating TNCs and TNC services.

Effective July 1, 2015.

Intro. by Rabon.GS 20, GS 153A, GS 160A
S 560 (2015-2016) 2015 CONTINUING BUDGET AUTHORITY (NEW). Filed Mar 26 2015, AN ACT AUTHORIZING THE DIRECTOR OF THE BUDGET TO CONTINUE EXPENDITURES FOR THE OPERATION OF GOVERNMENT AT THE LEVEL IN EFFECT ON JUNE 30, 2015, UNTIL AUGUST 31, 2015.

Recodifies GS 143B-426.38A as GS 147-33.77A. Deletes all provisions in subsection (a) of previous GS 143B-426.38A, regarding state data sharing requirements, and replaces it with a new subsection (a) in new GS 147-33.77A, with definitions for the following terms as they apply in this section, on the provisions of the Government Data Analytics Center (GDAC): (1) business intelligence, (2) data analytics, and (3) enterprise-level data analytics.

Amends GS 147-33.77A(b) to clarify that the GDAC is established in the Office of Technology Information Services [was, established in the Office of the State Chief Information Officer (State CIO)]. Identifies that the purpose of the GDAC is to utilize public-private partnerships as part of a statewide data integration and data-sharing initiative to generate greater efficiency and improved service delivery by state agencies, departments, and institutions.

Clarifies that the GDAC is to advise and assist the State CIO in managing this initiative. Identifies the powers and duties of the State CIO that are to be carried out via the GDAC. Expands those powers and duties to include (1) utilizing a common approach to establish standards for business intelligence initiatives for all state agencies and to prevent developing projects that do not meet established standards and (2) the creation of efficiencies in state government by ensuring that state agencies use the GDAC for agency business intelligence requirements.

Provides that the statewide data integration and data-sharing initiative is to include all state agencies, departments, and institutions, including the University of North Carolina, as specified in this act, which includes the designation of advisees to this initiative by the Chief Justice of the North Carolina Supreme Court and the Legislative Services Commission.

Directs the State CIO, with assistance from the Office of State Budget and Management (OSBM), to identify potential funding sources for expansion or development of projects. Sets parameters that prohibit initiating, expanding, or extending any GDAC project without the specific approval of the General Assembly or prior consultation with the Joint Legislative Commission on Governmental Operations and a report to the Joint Legislative Oversight Committee on Information Technology, unless the project can be implemented within the funds appropriated for GDAC projects. Deletes all of the requirements regarding the phases of the initiative from the prior statute, GS 143B-426.38A, recodified in this act as GS 147-33.77A.

Delineates the general duties of all state agencies regarding data sharing and includes specific requirements regarding the state agencies with specified responsibilities relating to workers' compensation claims for the purpose of preventing and detecting fraud.

Includes provisions on privacy and confidentiality of information with respect to access to certain types of information under the initiative and specifies limitations that apply to the release of information compiled and collected under the initiative.

Directs the Office of Information Technology Services (was, the Office of the State CIO), with support of the OSBM, to identify and make all efforts to secure any matching funds or other resources to assist in funding the GDAC (was, this initiative). Makes conforming changes to the reporting requirements to reflect the organizational changes in deleting the implementation of the initiative in phases. Directs the State CIO to report to the Joint Legislative Oversight Committee on Information Technology on projects that are failing to achieve projected savings. Requires the report to include a proposed corrective action plan for the project.

Makes additional organizational changes, deleting subsections (f), (g), and (h) of GS 143B-426.38A, which is recodified in this act as GS 147-33.77A, and incorporating the subject areas of those subsections into GS 147-33.77A.

Makes conforming changes to GS 20-7(b2)(6), GS 20-43(a), and GS 105-259(b)(45). Directs the Revisor of Statutes to substitute statute number GS 147-33.77A for statute number GS 143B-426.38A wherever it appears in the General Statutes.

Intro. by Hise.GS 20, GS 105, GS 143B, GS 147
S 568 (2015-2016) NORTH CAROLINA HEALTH CARE MODERNIZATION. Filed Mar 26 2015, AN ACT TO MODERNIZE AND TRANSFORM HEALTH CARE PURCHASING IN NORTH CAROLINA AND TO CONSOLIDATE THE LME/MCO REGIONS.

States the General Assembly's intent to transform the state's health care purchasing methods from a traditional fee‑for‑service system into a value‑based system that provides budget predictability while ensuring quality care. Requires the new purchasing program to be designed to: (1) provide budget predictability and stability, (2) achieve cost savings through improved population health, (3) appropriately value primary care as the foundational level of health care required by all North Carolinians, (4) jointly incentivize patients and providers in pursuit of better health, and (5) improve access and choice for beneficiaries in a market‑driven environment. Provides that once reform is fully implemented, the state's budget variability must be limited to the variations in enrollment numbers and patient mix for the capitated populations. Sets out requirements for the 11 principal building blocks of purchasing reform including provisions for Patient Population, Primary Care Medical Homes, At‑Risk Provider‑Led Organizations (ARPLOs), Plan Administrators, Licensed Commercial Health Insurers, and Cooperation between ARPLOs and LME/MCOs. Sets out definitions as used in the act. 

Requires the Department of Health and Human Services (DHHS) to develop, with stakeholder input, a detailed plan for purchasing reform that meets the goals listed above and includes the building blocks listed in the act. Requires that the plan provide for strategic changes to the Patient Population and include 15 specified elements. 

Requires DHHS, by April 15, 2015, to report to the General Assembly on its strategic plan for the Medicaid reforms. Specifies actions that must be taken if a detailed plan cannot reasonably be completed by April 15, 2015. 

Requires beginning September 1, 2015, and every six months thereafter until a final report on September 1, 2020, the DHHS and other administrators to report to the General Assembly on the state's progress toward completing transformation in the Patient Population. Specifies that reports are due to the Joint Legislative Oversight Committee on Medical Benefits.

Requires DHHS to work with the Centers for Medicare & Medicaid Services (CMS) to attempt to preserve existing levels of funding generated from Medicaid‑specific funding streams, such as assessments, to the extent that the levels of funding may be preserved. Requires that if Medicaid‑specific funding cannot be maintained as currently implemented, then DHHS must advise the General Assembly of the modifications necessary. 

Enacts new Article 23B in GS Chapter 120, establishing the 14-member Joint Legislative Oversight Committee on Primary Care and Medical Benefits (Committee). Requires the Committee to examine budgeting, financing, administrative, and operational issues related to: (1) the reform of purchasing primary care for Medicaid and the State Health Plan; (2) monitoring the effectiveness of engagement strategies and outcomes produced by authorized primary care medical homes, ACO, and Commercial Plans; (3) review of criteria for establishing minimum benefits to be provided by primary care medical homes and the value of periodic payments made to providers; and (4) review effectiveness and financial performance of the State Health Plan in conjunction with the Treasurer's office and the State Health Plan Board of Directors. Sets out provisions governing Committee membership and organization. Sets out the Committee's powers. Requires that when DHHS is required by law to report to the General Assembly or to any of its permanent, study, or oversight committees or subcommittees on matters affecting DHHS, then DHHS must give a copy of the report to the cochairs of the Committee. 

Repeals GS 120-208.1(a)(2)b, taking away the power of the Joint Legislative Oversight Committee on Health and Human Services to examine issues relating to services provided by the DHHS Division of Medical Assistance.

Makes conforming changes to GS 120-208.1. Effective September 1, 2015.

Requires any reports by DHHS or the Division of Medical Assistance on Medicaid due during the 2014-15 fiscal year to be made to the Joint Legislative Oversight Committee on Primary Care. Effective September 1, 2015.

Requires DHHS to manage the consolidation of LME/MCOs to no more than six, and no less than four, regional entities effective January 1, 2017. Requires DHHS to designate the surviving entity for each region by October 1, 2015. Specifies data that DHHS must take into consideration in making the determination of the surviving entity.

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

Intro. by Tarte.STUDY, GS 120
S 572 (2015-2016) AGRICULTURAL REGULATORY RELIEF. Filed Mar 26 2015, AN ACT TO PROVIDE REGULATORY RELIEF TO FARMERS BY REQUIRING THE DEPARTMENT OF TRANSPORTATION TO STUDY BRIDGE WEIGHT RESTRICTIONS IN AGRICULTURAL AREAS AND THE REGULATIONS GOVERNING TRANSPORT OF FUEL FOR AGRICULTURAL USE BY FARM VEHICLES AND BY REQUIRING THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO STUDY REGULATORY BARRIERS TO INCREASING DRAINAGE OF AGRICULTURAL LANDS.

Directs the Department of Transportation (DOT) to study: (1) the weight restrictions on bridges serving agricultural areas and (2) limits and regulatory barriers governing the transporting of fuel for agricultural use for farms and from one farm to another.

Requires the DOT to report its findings, recommendations, and any legislative proposals to the Joint Legislative Transportation Oversight Committee no later than February 1, 2016.

Directs the Department of Environment and Natural Resources (DENR) to study and report on the regulatory barriers that farmers face in counties regulated under Article 7 of GS Chapter 113A that are affected by diminished drainage of surface water from farmland due to a rising sea level. Requires the report to include DENR's recommendations for economically viable and environmentally sound methods for sufficient drainage of coastal agricultural lands that are impacted by rising sea levels.

Directs DENR to report its findings, recommendations, and any legislative proposals to the Environmental Review Commission no later than February 1, 2016.

Intro. by Cook.STUDY
S 573 (2015-2016) STRENGTHEN OYSTER INDUSTRY. Filed Mar 26 2015, AN ACT TO ENCOURAGE AND PROMOTE THE AQUACULTURE AND OYSTER CULTIVATION INDUSTRIES.

Part I.

Amends GS 143B-431.1 to require the nonprofit that the Department of Commerce (Commerce) contracts with to include on its board a member with expertise in shellfish or other aquaculture. Adds to the mandatory contract provisions that the nonprofit must create an entity within the corporation that is responsible for developing a strategic plan to further economic development of and otherwise providing continuing assistance to the state's shellfish and other aquaculture industries. Requires Commerce to take the steps necessary to ensure that the contract complies with these requirements.

Part II.

Amends GS 113-202 to no longer require that a shellfish cultivation lease application include a survey of the area approved for leasing. Also doubles the duration of the initial and renewal leases. Applies to shellfish lease applications received on or after July 1, 2015.

Part III.

Requires the Division of Marine Fisheries, in consultation with specified entities, to create a proposal to open certain areas of the Core Sound to shellfish cultivation leasing. Requires a report by May 1, 2016, to the Joint Legislative Commission on Governmental Operations.

Part IV. 

Amends GS 106-758 to include within the definition of aquaculture marine hatcheries and other deep water fish farming operations in the state's coastal and ocean waters. 

Amends GS 106-761 to require the Department of Agriculture and Consumers Services (DACS) to also regulate the production and sale of commercially raised saltwater fish and crustacean species. Requires the Board of Agriculture (Board) to designate the species of fish, crustaceans, and shellfish that may be produced and sold under a Marine Aquaculture Propagation and Production Facility License, as created in the act. Specifies issues that must be taken into account in making the designation. Allows the Board to authorize and license the operation of fish hatcheries and production facilities for species of fish listed above. Requires the Board to (1) consult with the Marine Fisheries Commission and the National Marine Fisheries Service regarding appropriate measures to protect wild stocks from disease or genetic contamination and (2) enter into memoranda of agreement with the US Army Corps of Engineers and any other appropriate state or federal regulatory agencies regarding appropriate standards and markings for marine aquaculture structures to avoid impairment of navigation. Provides that marine aquaculture facilities requiring the use of public bottom lands underlying waters of the state or the superjacent water column also require a lease from the Department of Environment and Natural Resources. Allows the Board to prescribe standards of operation, qualifications of operators, and the conditions under which fish may be commercially reared, transported, possessed, bought, and sold. Makes the Marine Aquaculture Propagation and Production Licenses valid for five years. Makes it illegal for anyone without a Marine Aquaculture Propagation and Production Facility License and associated lease to take or attempt to take marine species being produced under the license and associated lease from any privately leased, franchised, or deeded marine aquaculture operation without written authorization of the holder and with actual knowledge it is a marine aquaculture leased area. Violations are a Class A1 misdemeanor, which may include a fine of up to $5,000. 

Enacts new Article 16A, Leasing of Bottom Land and Waters of the State for Marine Aquaculture, in GS Chapter 113. Allows the Secretary of Environment and Natural Resources (Secretary) to grant marine aquaculture leases for the public bottom under the terms specified to state residents who have a Marine Aquaculture Propagation and Production Facility License when it is determined that the public interest will benefit from issuance of the lease. Specifies standards that must be met for suitable areas for marine aquaculture. Specifies additional duties of the Secretary concerning the leasing, sets out the procedure for applying for a lease, and requires the area of bottom applied for to be as compact as possible. Sets out steps to be taken in deciding whether to approve leases, including conducting a public hearing in the county where the proposed leasehold lies. Leases are for 10 years and can be renewed. Specifies seven conditions under which the leasehold must be terminated and sets out the procedure for the termination. Allows the Secretary to include in marine aquaculture leases provisions allowing the use of the water column superjacent to the leased bottom when the Secretary determines the public interest will benefit from inclusion of water column provisions. Specifies requirements for suitable areas for the authorization of water column use.

Amends GS 113-134.1 to provide for how to settle jurisdiction conflicts between the Marine Fisheries Commission and DACS.

Part V.

Amends Section 44 of SL 2014-120, establishing the Senator Jean Preston Marine Shellfish Sanctuary as follows. Changes the name of the program to the Senator Jean Preston Marine Oyster Sanctuary Program. Modifies and adds to the General Assembly's intent. Requires the Division to develop a plan to construct and manage additional oyster habitat and requires that the new sanctuaries along with existing oyster sanctuaries be included in the Senator Jean Preston Oyster Sanctuary Network (was, required the Division to designate an area within the Pamlico Sound as a recommendation to the Environmental Review Commission for establishment of the shellfish sanctuary and create a plan for managing sanctuary). Modifies the required components of the plan to now include provisions concerning the location and delineation of oyster sanctuaries, enhancement of oyster habitat restoration, waiver of application and yearly rental fees for new shellfish leases, outreach, monitoring, funding, and recommendations for changes. Deletes the reporting requirement. 

Intro. by Cook, Tillman, Sanderson.GS 106, GS 113, GS 143B
S 576 (2015-2016) FAIR COMPETITION & EMP. CLASSIFICATION ACT. Filed Mar 26 2015, AN ACT TO ENACT THE FAIR COMPETITION AND EMPLOYEE CLASSIFICATION ACT.

Enacts new Article 4 in GS Chapter 95, Fair Competition and Employee Classification Act, clarifying the distinction between employees and independent contractors. Requires specified notices concerning employee classification to be placed in conspicuous places on each job site.  Requires employers engaging the services of independent contractors to post notices of the right to be properly classified as an employee and the right to challenge the employer’s employment status classification in court. Prohibits retaliation against individuals who allege that their employment status was wrongly classified by their employers, as described. Prevents any provisions of the Article from being waived or contravened by private agreement.  Creates a presumption of employee status that must be rebutted by a party asserting that a hired individual is an independent contractor by a preponderance of the evidence. Specifies what cannot be used in the determination of status as an independent contractor. Details additional provisions related to the employee/independent contractor determination. Creates a civil cause of action for violation of employment status classification requirements. Requires the Commissioner of Labor (Commissioner) to enforce and administer all the provisions of this Article, including the authority to hold hearings and institute criminal and civil proceedings. Sets out civil penalty amounts and considerations in determining penalty amounts. Allows the Commissioner to enter into specified agreements for collection of claims and the maintenance of actions in court. Establishes provisions for the ordering and enforcement of a stop work order upon the receipt of information concerning the violation of the provisions of this Article. Requires, after the second or subsequent violations of the Article within five years of an earlier violation, the Department of Labor to add the employer to the list to be posted on the Department of Labor's website as well as notify the employer that they cannot be awarded a state or local government contract until four years have elapsed. Requires specified agencies to cooperate in regards to the sharing of information concerning suspected misclassification.

Amends GS 95-241(a)(1), making a conforming change, adding this Article to the list that prohibits retaliation by employers for related actions.

Applies to employment existing on or after the date the act becomes law.

Intro. by Tucker, Stein.GS 95
S 578 (2015-2016) TRANSITION CERTAIN ABUSE INVESTIGATIONS/DCDEE. Filed Mar 26 2015, AN ACT TO TRANSITION ABUSE AND NEGLECT INVESTIGATIONS IN CHILD CARE FACILITIES TO THE DIVISION OF CHILD DEVELOPMENT AND EARLY EDUCATION WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.

Enacts new GS 110-105.3, Child maltreatment, to Article 7 of GS Chapter 110 to assign the authority to investigate child abuse and neglect in child care facilities to the Department of Health and Human Services, Division of Child Development and Early Education.

Defines child maltreatmentas used in Article 7 to mean any act or series of acts of commission or omission by a caregiver that results in harm, potential for harm, or threat of harm to a child. Also includes definitions for caregiverand child care facilities.

Directs the Department of Health and Human Services (DHHS), local departments of social services, and local law enforcement personnel to cooperate with the medical community to ensure that reports of child maltreatment in child care facilities are properly investigated. Directs DHHS to contact local law enforcement officials to investigate the report when it alleges maltreatment meeting the definition of abuse or neglect as defined in GS 14-318.2 (child abuse as a misdemeanor) and GS 14-318.4 (child abuse as a felony).

Authorizes DHHS to issue a protection plan barring an alleged abuser of a child from being on the facility's premises while children are present, or to suspend activities at a facility that is under investigation. Also provides that DHHS may order immediate corrective action as required to protect the health, safety, or welfare of children in care. Provides additional details regarding the specific authority of DHHS to take actions during the course of an investigation in order to protect the health, safety, or welfare of the children in a child care facility that is regulated by DHHS.

Directs that until a DHHS investigation confirms that child maltreatment occurred in a child care facility, all matters pertaining to the investigation are to be held in strictest confidence by DHHS except permits DHHS to disclose confidential information to any local, state, or federal government entity in order to protect a juvenile from child maltreatment, abuse, or neglect. Provides other criteria regarding confidentiality and the release of confidential information. Also specifies criteria regarding consultations between or among DHHS and other private or public agencies and individuals. Directs the North Carolina Child Care Commission to adopt, amend, and repeal all rules that are necessary to implement the provisions of GS 110-105.3.

Enacts new GS 110-105.4, Duty to report child maltreatment, to require any person with cause to suspect that a child in a child care facility has been