House amendment makes the following changes to the 1st edition.

Amends proposed GS 143-214.15(e) to require the state to accept a proposal to purchase any of the inventory of land suitable for wildlife habitat if (1) the proposal provides for the maintenance in perpetuity of management measures listed in the original mitigation instrument or otherwise needed on an ongoing or periodic basis to maintain the functions of the mitigation site and (2) where the functions of the mitigation site include provision of recreation or hunting opportunities to members of the general public, the proposal includes measures needed to continue that level of access. Requires the instrument conveying a property interest in a mitigation site to be executed as required under Article 16 of GS Chapter 146 and requires that it include these new requirements. 

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

Makes technical and clarifying changes to proposed GS 90-21.15A(c). 

Adds language which provides that the NC Board of Pharmacy can adopt temporary and permanent rules addressing the authorization for authorized entities to obtain a prescription for epinephrine for emergency health circumstances. 

Part I.

States the General Assembly's intent and refers to the act as the Gun Rights and Privacy Act.

Enact new GS 14-409.41 to make it illegal, except when complying with a court order, for a State or local official, agent, or employee to knowingly and willfully order another state or local official, agent, or employee to enforce any executive order, agency order, law, rule or regulation of the US government as provided in subsection (b) of this section upon a personal firearm, a firearm accessory, or ammunition. Subsection (b) prohibits a federal executive order, agency order, law, statute, rule or regulation issued, enacted, or promulgated on or after December 1, 2015, from being knowingly and willfully ordered to be enforced by any state or local official, agent, or employee if it is contrary to the provisions of Section 30 of Article I of the NC Constitution. Makes a violation punishable by a civil penalty not to exceed $1,000 and makes a second or subsequent violation a Class 2 misdemeanor.

Part II.

Repeals GS 14-269 (Carrying concealed weapons), GS 14-269.3 (Carrying weapons into assemblies and establishments where alcoholic beverages are sold and consumed), GS 14-269.4 (Weapons on certain State property and in courthouses), and GS 14-277.2 (Weapons at parades, etc., prohibited).

Enacts new Article 54C, Carrying Concealed Weapons, in GS Chapter 14. 

Allows a US citizen who is at least 21 years old to carry a concealed weapon in North Carolina. Makes it unlawful for 11 classes of individuals to carry a concealed weapon, including a person who is ineligible to own, possess, or receive a firearm under the provisions of state or federal law; is an unlawful user of, or addicted to, marijuana, alcohol, or any depressant, stimulant, or narcotic drug, or any other controlled substance; or is currently, or has been previously adjudicated to be, lacking mental capacity or mentally ill. A violation by these individuals is a Class 2 misdemeanor for first offenses and a Class H felony for second or subsequent offenses.

Makes it a Class 1 misdemeanor to carry a concealed weapon into: (1) an assembly where a admission fee has been charged if notice is given that carrying a concealed weapon on the premises is prohibited or (2) any establishment where alcoholic beverages are sold and consumed if notice is given. Sets outs exemptions to this prohibition for 14 classes of individuals, including the owner or lessee of the premises or business establishment; a person participating in the event, if the person is carrying a gun, rifle, or pistol with the permission of the owner, lessee, or person or organization sponsoring the event; any person who is a qualified retired law enforcement officer; and specified court officials. 

Makes it illegal to possess or carry a deadly weapon in the State Capitol Building, the Executive Mansion, the Western Residence of the Governor, or on the grounds of any of these buildings. Violations are a Class 1 misdemeanor. Sets out exemptions for seven classes of individuals, including personnel of the US Armed Forces when in discharge of their official duties as such and acting under orders requiring them to carry arms and weapons, civil and law enforcement officers, and state probation or parole‑certified officers when off duty. 

Makes it illegal to possess or carry a deadly weapon in courthouses. A violation is a Class 1 misdemeanor.  Sets out exemptions for 15 classes of individuals, including specified court officials, a qualified retired law enforcement officer, clerk of court or register of deeds (with specified limitations), and a person who has a firearm in a closed compartment or container within the person's locked vehicle or in a locked container securely affixed to the person's vehicle. 

Makes it illegal for parade or funeral procession participants or spectators to carry a concealed weapon on any premises if the person in control of the premises has posted a notice prohibiting the carrying of a concealed weapon on the premises. A violation is a Class 1 misdemeanor.  Sets out exemptions for 13 classes of individuals.

Makes it illegal to carry a concealed weapon: (1) in an area prohibited by rule adopted under GS 120‑32.1, (2) in any area prohibited by 18 USC § 922 or any other federal law, (3) in a law enforcement or correctional facility, or (4) on any private premises where notice that carrying a concealed handgun is prohibited by the posting of a conspicuous notice or statement by the person in legal possession or control of the premises. A violation is a Class 1 misdemeanor.  Sets out exemptions for 11 classes of individuals.

Expands upon the individuals who are exempt from (1) the prohibition on carrying weapons on campus or other educational property and (2) the prohibition on manufacturing, assembling, possessing, storing, transporting, selling, offering to sell, purchasing, offering to purchase, deliver or give to another, or acquire any weapon of mass death and destruction.

Makes conforming changes. 

Part III. 

Enacts new GS 14-415.10A requiring the state to continue to make a concealed handgun permit available and states the purpose for doing so.

Amends GS 14-415.11 (Permit to carry concealed handgun; scope of permit) to delete the provision concerning a military permittee whose permit has expired during deployment. Makes additional conforming changes.

Makes conforming changes to GS 14-415.12, GS 15A-1343, GS 74E-6, GS 14-415.35, and GS 113-136, reflecting the repeals of statutes and new Article 54C.

Repeals GS 14-415.22 (concerning the construction of Article 54B, Concealed Handgun Permit).

Part IV.

Enacts new Article 11, Preserving Firearms Privacy for Patients, in GS Chapter 90. States the General Assembly's findings and intent. Sets out and defines terms for use in the Article. Prohibits a health care provider from asking a patient or the patient's parent, guardian, or custodian to complete a written form about the patient's lawful ownership, possession, handling, storage, maintenance of, or other conduct involving firearms and ammunition unless the patient has been adjudicated incompetent due to mental illness. Also prohibits a health care provider from disclosing to any government official or agency the response of a patient, or the patient's parent, guardian, or custodian, to verbal inquiries about the patient's lawful ownership, possession, handling, storage, maintenance of, or other conduct involving firearms and ammunition, unless the patient has been adjudicated incompetent due to mental illness. Allows the health care provider's licensing board to impose a fine for violations of the provisions not to exceed $250 for nonwillful violations and $500 for willful violations. Also makes violations grounds for disciplinary action. Effective December 1, 2015, and applies to violations occurring on or after that date.

Part V.

Include a severability clause.

Part VI.

Unless otherwise provided, effective December 1, 2015, and applies to offenses committed on or after that date. Provides that prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.

Amends GS 15A-260 to add definitions for (1) electronic device, (2) investigative or law enforcement officer, and (3) location information.

Enacts new GS 15A-265, prohibiting in subsection (a)an investigative or law enforcement officer or any person from obtaining location information (information concerning the location of an electronic device generated or derived in whole or part from the operation of that device) without first obtaining a search warrant as provided for in Article 11 of GS Chapter 15A.

Provides in subsection (b)that the requirement for a search warrant prior to obtaining location information does not apply under the following exceptions: (1) in response to a missing person's report, (2) with the consent of the user of the service, (3) in response to a report from a parent or a legal guardian of a minor that the minor is missing, (4) in the active pursuit of a fleeing fugitive, and (5) in response to the user's call for emergency services or a notification from a third party that a user may be at risk of suicide or the user's call for emergency services if the investigative or law enforcement officer believes that there is an emergency situation with danger of death orserious physical injury to any person and the request for location information is narrowly tailored to address the emergency and subject to specified limitations.

Makes a willful and knowing violation of subsection (a) of this section a Class 1 misdemeanor. Deems any evidence obtained in violation of this section to be inadmissible in any criminal, civil, administrative, or other proceeding, except as proof of a violation of this section.

Prohibits receiving into evidence or otherwise disclosing in a trial or hearingor any procedure in federal or state court any location information or evidence derived from location information unless each party has been furnished, not less than 10 days before the court proceeding,with a copy of the order and application under which the information was obtained. Permitsthe judge to waive the 10-day period if the judge finds that meeting that deadline was not possible and that the party receiving the information less than 10 days before the proceeding will not be prejudiced by the delay in receiving the information.

Prohibits the disclosure of incidentally collected data that is not the subject of the warrant that is collected as part of the effort to obtain the location information or stored or transmitted data of the electronic device that is the subject of the warrant or search. Provides that the incidentally collected data must be destroyed in a manner that makes the data unrecoverable no later than 24 hours after the data is collected. Makes an exception that allows an investigative or law enforcement agency to use, copy, or disclose the transmitted data of an electronic device that is used to communicate with the electronic device that is the subject of the warrant if the investigative or law enforcement agency believes that the transmitted data is necessary to achieve the objective of the warrant.

Requires any judge issuing or denying any application for a search warrant for location information during the preceding year to report on those warrants by January 31 ofeach calendar year to the Administrative Office of the Courts (AOC). Specifies what information the report is to contain.

Directs the AOC to provide the General Assembly, by April 1 of each year beginning with 2016, with a complete report concerning the number of applicants for orders authorizing or requiring the disclosure of location information under this section, the number of times access to the location information was obtained, and the number of orders granted or denied. Specifies data to be included in the report. Authorizes the AOC to issue binding regulations dealing with the content and form of the report required to be filed by judges. Provides that a non-classified summary of the report is to be made publicly available on the website for the General Assembly and the AOC in April of each year, beginning with 2016.

Effective December 1, 2015, and applies to offenses occurring on or after that date, andthe requirements applyto persons seeking location information on or after that date. Provides that prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable except for this act remain applicable to those prosecutions.

Enacts new GS 7A-223(b1) providing that the plaintiff can request that a claim for summary ejectment be severed from the claim for monetary damages in regards to a small claim action demanding summary ejectment and monetary damages where service of process was achieved solely by first-class mail and affixing the summons and complaint to the premise pursuant to GS 42-29. Requires the magistrate to sever the claim for monetary damages and proceed with the claim for summary ejectment after finding that personal service was not achieved for one or more defendants. Provides that if severed by the magistrate, the plaintiff can extend the action in accordance with GS 1A-1, Rule 4(d). Provides that the judgment of a magistrate in the severed claim for summary ejectment does not prejudice any claims or defenses of any party in the severed claim for monetary damages.

Amends GS 1A-1, Rule 4(h1), regarding the return of a summons or other process unexecuted, to delete provision that this subsection does not apply to summary ejectment actions under Article 3 of GS Chapter 42.

Enacts new subsection (b) in GS 42-28 (Summons issued by clerk) to provide that in counties with a population of 100,000 or more as of the most recent 10-year federal census, after the summons is issued by the clerk pursuant to a claim by the landlord-plaintiff (plaintiff) under GS 42-26 or 42-27, the plaintiff may choose to either have the clerk return the summons to the plaintiff or forward it to the sheriff for service. Provides that if the magistrate severs the claim for monetary damages as provided under GS 7A-223(b1), the plaintiff may choose to extend the action under GS 1A-1, Rule 4(d).

Under current law, GS 42-29 provides that an officer receiving a copy of the summons must mail the summons and a copy of the complaint to the defendant no later than the end of the next business day or as soon as practicable to the defendant's last known address. Enacts new subsection (b) to GS 42-29 (Service of summons) toprovide that in counties with a population of 100,000 or more as of the most recent 10-year federal census, andonly with respect to service for summary ejectment proceedings, officermeans either (1) any person over the age of 21 who is not a party to the action and who is hired by the plaintiff or the plaintiff's agent or attorney to serve the summons and complaint for summary ejectment or (2) the sheriff of the county where the property is situated.

Effective October 1, 2015.

Declares that this act is to be known as the Second Amendment Preservation Act.

States the General Assembly's findings and declarations, which include a firm resolve to support and defend the US Constitution against foreign or domestic aggression and the assertion that the Tenth Amendment to the US Constitution affirms the limitation of the power of the federal government and reserves all power that is not delegated to the federal government in the US government to the states or the people. Sets forth additional conclusions and beliefs regarding the authority granted to or restricted from the federal government in the US Constitution.

Adds a new Article 53, Protection of Right to Keep and Bear Arms, to GS Chapter 1.

Defines the following terms as they apply in this article: (1)government agency, (2)law-abiding citizen, and (3)right to keep and bear arms.

New GS 1-641 declares that a federal law,including a statute, an executive, administrative, or a court order, or rulethat infringes on a law-abiding citizen's right to keep and bear arms under the Second Amendment of the US Constitution or Section 30 of Article 1 of the NC Constitution is invalid and not enforceable in this state. Declares that a federal law that does any of the following infringes on a law-abiding citizen's right keep and bear arms: (1) imposes a tax, fee, or stamp on a firearm, firearm accessory, or firearm ammunition that is not imposed on all other goods and services and may be reasonably expected to create a chilling effect on the purchase or ownership of such items by a law-abiding citizen; (2) requires the registration or tracking of a firearm, firearmaccessory, or firearm ammunition or the owners of those items thatmay be reasonably expected to create a chilling effect on the purchase or ownership of such items by a law-abiding citizen; (3) prohibits the possession, ownership, use, or transfer of a firearm, firearm accessory, or firearm ammunition by a law-abidingcitizen; or (4)ordersthe confiscation of afirearm, firearm accessory, or firearm ammunition from a law-abiding citizen.

New GS 1-642(a) declares that it is the duty of each court and law enforcement agency of this state to protect a law-abiding citizen's right to keep and bear arms. Subsection (b) provides that a government agency, or an employee or official of a government agency, may not enforce a federal law described by new GS 1-641.

Subsection (a) of new GS 1-643 makesa government agency, or an employee or official of a government agency, who knowingly violates the provisions of GS 1-642(b) liable to the law-abiding citizen whose right to keep and bear arms was infringed. Provides that a law-abiding citizen whose rights are violated under GS 1-643(a) may obtain any of the following remedies: declaratory relief, injunctive relief, compensatory damages, and reasonable attorneys' fees, court costs, and other reasonable expenses.

New GS 1-644 requires that a claimant under this article must give notice to the person who violated GS 1-642(b) that the person has infringed on the claimant's right to keep and bear arms. Specifies the form of delivery for the notice and the time requirement for delivery of the notice. Also specifies criteria to be met that will allow a claimant to bring an action for declaratory or injunctive relief and associated costs, including attorneys' fees and court costs. Allows a person receiving a notice to cure the infringement. Prohibits a claimant from bringing an action under GS 1-643 after the infringement has been cured.

Requires a claimant to bring an action for damages under Article 53 no later than one year after the date theclaimantknew or should have known of the infringement onthe claimant's right to keep and bear arms. Provides that mailing notice under GS 1-644 tolls the limitations period under this section until the 75th day after the date on which the notice was mailed.

Waives and abolishes sovereign and governmental immunity to suit but only to the extent of the liability created by GS 1-643 as enacted in this act. Provides that regardless of the provisions of this section, Article 53 of GS Chapter 1 does not waive orabolishsovereignimmunity to suit and from liability under the Eleventh Amendment to the US Constitution.

Declares that the affirmative defense of official immunity is not available to an employee or official sued under GS 1-643.

Provides that this act only applies to an infringement of the right to keep and bear arms that occurs on or after the effective date of this act.

Makes this act effective October 1, 2015.

Amends GS 143B-437.01 to allow the Industrial Development Fund Utility Account to provide funds to local governments in the most economically distressed areas (was, distressed counties) in the state. Amends the definition of economically distressed area (was, distressed county) to also include an urban progress zone or an agrarian growth zone.

Enacts new GS 146-70.1, Use of State land for equestrian activities; creation of trails by volunteers, providing that equestrian groups can enter into agreements with state officials for the authorization to use specific state lands for equestrian purposes. Sets out six specific requirements and limitations for such usage agreements, including clarifying that no property right is conferred through such usage.

Provides that state officials can exclude or remove state lands from such usage agreements for specified reasons, including when it is determined that such use would cause verifiable harm to the state lands or the environment or would result in expenses to the state.

Provides process for the denial of an application or for the removal of lands from a usage agreement, requiring state officials to contact the North Carolina Horse Council and the related equestrian group regarding such decisions, giving them the opportunity to show cause why the proposed decision should not be taken.

Directs the Secretary of Administration to publish and maintain a repository of such usage agreements on its website. Requires officials entering into such contracts to forward an electronic copy of the usage agreement and related documents to the Secretary of Administration within seven days of entering, amending, or canceling the agreement.

Sets out definitions for use in this section, including appropriate state official and usage agreement.

 

Eancts GS Chapter 1, Article 43F, Immunity for Forcible Entry into Vehicle to Remove a Minor, providing an exception from civil liability for damage resulting from forcible entry of a vehicle to remove a minor.  Sets out six conditions that must be met for the immunity to be applicable, including contacting 911, local law enforcement, or the fire department prior to the forcible entry and that the person has a good faith belief that entry is necessary due because the minor is in imminent danger.

Provides that the immunity to civil liability does not extend to any aid that is in addition to what is authorized by this section.

Effective October 1, 2015, applying to causes of action arising on or after that date.

Enacts new GS 143B-435.2, Educational outreach, providing that the Department of Commerce must require businesses that receive economic development incentives pursuant to this Article to engage in educational outreach efforts, with an annual report on efforts required by March 1 each year.  Sets out, for the purposes of this Article, the type of activities educational outreach efforts include, such as financially supporting local educational employment opportunity offices and funding scholarships to institutions of higher education in degree programs applicable to employment opportunities.

Directs the Department of Commerce, by April 1 of each year, to report to various legislative commissions and committees on all educational outreach efforts made by recipient businesses. Sets out what the report must include.

Effective when the act becomes law, applying to economic development incentives awarded on or after that date.

Under current law, GS 105-153.5(b) provides that in calculating North Carolina taxable income, a taxpayer may make other deductions from the taxpayer's adjusted gross income (AGI) as indicated in this subsection. Amends the subsection to include a new subdivision (10) to provide that a taxpayer in the business of farming and who meets additional requirements as specified in this subdivision may deduct up to $25,000 from the taxpayer's AGI.

Effective for taxable years beginning on or after January 1, 2015, and expires for taxable years beginning on or after January 1, 2019.

Enacts a new Article 43A, County Sales and Use Tax, in GS Chapter 105. Allows the county to choose to use this source of revenue to finance local public transportation systems or for general purposes. Allows a board of county commissioners to levy a local sales and use tax of 0.25% by resolution if (1) if a majority of those voting in a special election approve the levy of the local sales and use tax and the county has given not less than 10 days' public notice or(2)if no election has been held within five years in which the tax has been defeated and the county has given not less than 10 days' public notice of and held a public hearing. Provides for the administration of the tax. Requires a tax levied by a county under this Article to reduce, by the amount levied, the tax authorized to be levied by the county under Article 43 (Local Government Sales and Use Taxes for Public Transportation).

Amends GS 105-506 to make conforming changes. Allows Article 43 (Local Government Sales and Use Taxes for Public Transportation) to be used by counties and transportation authorities to finance local public transportation or for general purposes.

Amends Article 46 (One-Quarter Cent (1/4΢) County Sales and Use Tax Act)to allow a board of commissioners to levy a local sale and use tax of 0.25% by resolution if: (1)the majority of those voting in a referendum held pursuant to this Articleapprove the levy of the local sales and use tax and the county has given not less than 10 days' public notice or (2)if no election has been held within five years under the provisions of this section in which the tax has been defeated and the county has given not less than 10 days' public notice of and held a public hearing.

Enacts new Article 47 (One-Quarter Cent (1/4΢) City Sales and Use Tax) in Subchapter VIII of GS Chapter 105. Defines the following terms as they are used in Article 47: (1) city, (2) council, and (3) net proceeds. Allows a city council, by resolution, to levy a city sales and use tax at the rate of 0.25%, in addition to any other state or local sales and use tax. Provides that a city may use the net proceeds of a tax levied under this Article for any public purpose.

Abolishes the North Carolina Cemetery Commission and expands the North Carolina Board of Funeral Service to include representatives from the cemetery profession and grants the board new powers to oversee licensure of cemeteries. Renames the Board as the North Carolina Funeral Service and Cemetery Board.

Establishes new Article 13G in GS Chapter 90 entitled Funeral and Cemetery Services.  Repeals or recodifies existing statutes related to the Cemetery Commission found in Article 9 of GS Chapter 65 and the Practice of Funeral Service in Article 13A of GS Chapter 90. Divides new Article 13G into four parts.

Part 1 is entitled General Provisions. New GS 90-210.140 includes definitions of 28 terms related to both funeral services and cemeteries. New GS 90-210.141 requires licensure for both funeral service and cemetery operation. Under current law, licenses are already required in both areas. New GS 90-210.142 describes the application of new Article 13G. The starting point is a recodified version of GS 65-47 from the law governing cemeteries and additional language is added to include funeral services. Cemeteries owned and operated by governmental agencies and churches remain exempt to the licensure requirements.

Part 2 is entitled Funeral Service and Cemetery Board. The starting point for much of this part are recodified versions of several provisions in current law governing the Board of Funeral Service. Additional language is added to reflect the inclusion of cemeteries. Board composition is modified to increase the total size from nine to twelve, adding a total of four related to the cemetery profession, decreasing the number of appointees recommended by the North Carolina Funeral Directors Association from four to two, and increasing the number of appointees who are unaffiliated with funeral service or cemetery operation from one to two. Adds members appointed by the Governor from nominations made by the NC Cemetery Association and increases the number of members appointed by the General Assembly. New GS 90-210.147 provides that seven rather than five members constitute a quorum. New GS 90-210.148 specifies the powers and duties of the boards, integrating the powers of the Cemetery Commission into the existing powers of the Board of Funeral Service. Under existing law, the Board of Funeral Service is authorized to appoint inspectors, but new GS 90-210.149 requires the new combined board to appoint inspectors. The section is also amended to authorize inspectors to inspect records and enter property of licensed cemetery operations.

Part 3 is entitled Funeral Service License and consists primarily of recodified provisions from current law found in GS Chapter 90, Article 13A.

Part 4 is entitled Cemetery License and consists primarily of recodified provisions of current law found in GS Chapter 65, Article 9. New GS 90-210.170 amends the language that was included in GS 65-54 related to fees by deleting the requirement that the Cemetery Commission (now Funeral Service and Cemetery Board) be supported by fees.

Terms of board members serving as of July 1, 2015, expire on December 31, 2015. Sets the expiration date of specified terms and sets terms of appointment to create staggered terms.

Makes technical and conforming changes to other statutes and directs the revisor of statutes to make other necessary changes.

Effective December 31, 2015.

Includes various whereas clauses concerning the military in North Carolina.

Makes multiple appropriations form the General Fund for the maintenance and support of military installations and programs in North Carolina, including $10 million for fiscal year 2015-16 to the Department of Agriculture and Consumer Services to complete acquisition of the Headwaters Tract in Transylvania County. Appropriates $200,000 for fiscal year 2015-16 and again for fiscal year 2016-17 to the Department of Public Safety for the Tuition Assistance Program of the NC National Guard.

Appropriates $618,000 to the Department of Public Safety for the 2015-16 fiscal year and $5,087,501 for the 2016-17 fiscal year for the expansion and rehabilitation of NC National Guard Armories in Elizabeth City, Jacksonville, Louisburg, and Reidsville. Provides that such appropriations are the matching portions for an estimated $6.9 million in federal funds. Requires the NC National Guard to report, no later than April 30, 2016,  and annually thereafter, to the Joint Legislative Oversight Committee on Justice and Public Safety regarding the progress of these projects.

Appropriates $498,875 for fiscal year 2015-16 and again for fiscal year 2016-17 to the Department of Public Safety to operate the Stanly County campus of the Tarheel Challenge Academy, with matching federal funds.

Recognizes the NC Adjutant General as an ambassador of North Carolina, and appropriates $3,500 for fiscal year 2015-16 and 2016-17 to the Department of Public Safety to provide meals, refreshments, and gifts at official receptions involving diplomats of the United States or other international partners.

Appropriates $250,000 for fiscal year 2015-16 to the Department of Agriculture and Consumer Services to plan a NC National Guard facility as specified.

Effective July 1, 2015.

Amends GS 18B-1001 to allow a mixed beverages permit holder to be issued an antique spirituous liquor permit, defined as spirituous liquor that has been bottled for at least 20 years, and is in the original, unopened bottle; intended for beverage use; and no longer in production. Allows the antique spirituous permit holder to sell antique spirituous liquor for use in mixed beverages for consumption on premises. Requires the permit holder to submit and maintain an inventory of the antique spirituous liquor in the permit holder's possession. Requires the acquisitions of antique spirituous liquor on or after August 1, 2015, to be in accordance with the process established for special orders of spirituous liquor that is not on the approved list.

Amends GS 18B-902 to set the permit fee at $100.

Amends GS 18B-804 to require the price of antique spirituous liquor to include the price paid by the Alcoholic Beverage Control Commission to purchase the liquor. 

Amends GS 105-113.80 to set out how the price of antique spirituous liquor is to calculated for purposes of determining the tax.

Makes conforming statutory changes.Allows a person who has a permit and has paid the excise tax to sell any antique spirituous liquor  in his or her possession before or on the effective date of this act, or acquired by bequest or inheritance after the effective date of this act. 

Requires the ABC Commission to establish and adopt temporary rules to implement the provisions of this act by August 1, 2015. The act's statutory changes become effective upon the adoption of these rules. 

Under current law, GS 105-53.5(b) provides that in calculating North Carolina's taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the items included in the other deductions in this subsection. Amends GS 105-53.5(b) to add other deductions for use in calculating North Carolina's taxable income. Provides in new subdivision (10) that a taxpayer may deduct from the taxpayer's adjusted gross income (AGI) the amount added to federal taxable income under Section 108(8)(1) of the Code. Provides in new subdivision (11) that the amount claimed under section 67(b)(9) of the Code, related to when a taxpayer restores a substantial amount held under a claim of right, minus the limitation under section 67(a) of the Code, minus all other items deductible under section 67(b) of the code not to exceed the limitation provided under section 67(a) of the Code may be deducted. Effective for taxable years beginning on or after January 1, 2014.

Adds a new subdivision (6) to GS 105-153.5(c), which provides that in calculating North Carolina taxable income, a taxpayer must add to the the taxpayer's adjusted gross income any of the indicated items that are not included in the taxpayer's AGI. Subdivision (6) provides that the amount of net operating loss carried to and deducted on the federal return but not absorbed in that year and carried forward to a subsequent year must be added to the taxpayer's adjusted gross income. Effective for taxable years beginning on or after January 1, 2015.

Amends the definitions in GS 105-163.1 to define individual as it is defined in GS 105-153.3 and to provide that "wages" do not include a reimbursement amount that an employer pays an employee for necessary expenses (was, also did not include certain severance wages paid to an employee).

Amends GS 105-130.4(s), concerning the apportionable income of an air transportation corporation or a water transportation corporation, to add that a qualified air freight forwarder must use the revenue ton mile fraction of its affiliated airline. Defines air transportation corporation and qualified air freight forwarder. Effective for taxable years beginning on or after January 1, 2015. 

Amends the definition for storage in GS 105-164.3(44), deleting the provisions as to what the term does not include.

Amends GS 105-242.2(e) to provide that the period of limitations for assessing a responsible person for unpaid taxes under this section expires one year after the period of limitations for assessing the business entity expires or one year after a tax becomes collectible under GS 105-241.22(4), (5), or (6), whichever comes later.

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

Adds new Article 39A, Personal Education Savings Scholarship Program, to GS Chapter 115C.

Provides definitions for terms as they apply in this Article. Definitions include the following: (1) Authority means the North Carolina State Education Assistance Authority, (2) child with a disability is as defined in GS 115C-106.3(1), (3) disability is as defined in GS 115C-106.3(2), and (4) scholarship means funds awarded by the Authority to eligible students to be used to pay for special education on a daily basis for an eligible student who is attending either a nonpublic school or a North Carolina public school for which tuition is required.

Defines an eligible student as a child under the age of age 22 who meets all of the specified criteria: (1) has a disability, (2) is eligible to attend a North Carolina public school, (3) has not been placed in a nonpublic school or facility by a public agency at public expense, (5) has not been enrolled in a post-secondary institution as a full-time student taking 12 credit hours, and (6) has not received a high school diploma.

Enacts GS 115C-567.6 to focus on the specifics of the Scholarship Funds administered by the Authority. Directs the Authority to make the scholarship applications available annually to eligible students. Includes criteria for scheduling the disbursement of scholarship funds and reimbursement of costs.

Requires the Authority to make an annual report, no later than October 1, to the Joint Legislative Education Oversight Committee on the Personal Education Savings Scholarship Program and specifies what must be contained or addressed in the report.

Provides that all of the preceding provisions apply to the award of scholarships beginning with the 2017-18 school year.

Also addresses criteria for making contributions to the Parental Savings Trust Funds, verification of a student's eligibility, Authority reporting requirements, and the duties of state agencies.

Appropriates $450,000 for the 2016-17 fiscal year from the General Fund to the UNC Board of Governors to be allocated to the Authority to be used to administer this program in accordance with this act.

Declares it is the intent of the General Assembly to appropriate from the General Fund to the UNC Board of Governors $5 million for the 2017-18 fiscal year in recurring funds to allocate to the Authority for the following purposes: (1) to award scholarship grants to eligible students; provides that unexpended funds do not revert at the end of each fiscal year but remain available to award scholarship grants to eligible students and (2) to transfer funds to the Department of Public Instruction to use for re-evaluations of eligible students.

Makes this act effective July 1, 2016.

Directs the State Board of Education (SBE) to issue a request for proposals from constituent institutions of the University of North Carolina for a pilot redesign of the teacher education program. Requires proposals to provide a detailed plan on how to ensure that graduates are prepared to be highly effective teachers. Sets out information the proposal should include, such as detailed plans for vigorous recruitment strategies and stringent admissions criteria.

Requires institutions that submit a proposal to commit to implementation of the pilot redesign of the teacher education program beginning in the 2016-17 instructional year and to report outcomes of graduates from the redesigned program to the SBE and the Joint Legislative Education Oversight Committee for five years, beginning October 1 following the graduation of the first cohort. Establishes what the graduate outcomes should include. Requires the institution that receives funding to report to the SBE and the Joint Legislative Education Oversight Committee on the redesign and implementation of the revised program by December 31, 2017.

Proposals are to be submitted no later than October 15, 2015, with funding being awarded to one institution no later than December 15, 2015.

Appropriates from the General Fund to the Department of Public Instruction $300,000 for the 2015-16 fiscal year and $300,000 for the 2016-17 fiscal year to be awarded to the institution that is selected by the SBE.

Effective July 1, 2015.

Part I.

Requires $20 million of the funds appropriated to the Department of Commerce for 2014-15 be transferred to the Site Infrastructure Development Fund for uses consistent with GS 143B-437.02. Requires the unencumbered balance of the Job Catalyst Fund be transferred to the Site Infrastructure Development Fund.

Part II. 

Adds new Article 3L, NC New Markets Jobs Act of 2015, to GS Chapter 105 to provide that an entity that makes a qualified equity investment earns a below-the-line tax reduction that may be applied to the entity’s state premium tax liability on future premium tax reports filed under Article 8B of GS Chapter 105.

Enacts new GS 105-129.101 (Definitions). Defines qualified equity investment as an equity investment in, or long-term debt security issued by, a qualified community development entity that meets each of the following requirements: (1) is acquired after the act's effective date at its original issuance solely in exchange for cash, (2) has at least 85 percent of its cash purchase price used by the qualified community development entity to make qualified low-income community investments in qualified active low-income community businesses located in this state by the first anniversary of the initial reduction allowance date, and (3) is designated as a qualified equity investment under this subdivision and certified by the Department of Commerce (Department) as not exceeding the limitation in proposed GS 105-129.102(d)(5). Additionally defines qualified active low-income community business, qualified community development entity, and additional terms as they apply in this act.

Provides details on the tax reduction and directs the Department to certify $208,333,333  in qualified equity investment authority in accordance with two allocations, one for the Rural Reserve and one for the Statewide Reserve, as described in GS 105-129.109(a). Sets out the procedure for a qualified community development entity to apply to the Department, which is to begin accepting applications on July 1, 2015, for an equity investment or long-term debt security to be designated as a qualified equity investment. Allows for disallowing a reduction claimed or to be claimed by a taxpayer under new Article 3L under specified circumstances. Requires that notice of a disallowed tax reduction must be sent in writing to the taxpayer and the Department of Revenue. Prohibits enforcement of the disallowance under this Article until the qualified community development entity has been provided with notice of the noncompliance and allowed six months to cure the noncompliance. Provides that a recaptured reduction and the related qualified equity investment authority revert to the Department and are to be issued pro rata to other applicants whose allocations were reduced under the provisions of this section and in accordance with the application process. Requires that applicants pay a refundable performance deposit for each application submitted. Sets out conditions under which the deposit is forfeited.

Requires the Secretary of Commerce (Secretary) to issue binding letter rulings in response to applicants requesting an interpretation of the law to a specific set of facts. Sets out requirements for the rulings.

Provides that an entity claiming a reduction for qualified equity investment is not required to pay any additional retaliatory tax as a result of claiming the reduction.

Prohibits a certified qualified equity investment from being decertified unless the requirements of GS 105-129.107 have been met. Sets out conditions for decertification.

Provides that no qualified community development entity is entitled to pay any affiliate of such entity any fees in connection with any activity under this Article prior to decertification of all qualified equity investment issued by the entity. Does not prohibit a qualified community development entity from allocating or distributing income earned by it to the affiliates or paying reasonable interest on amounts lent to the entity by such affiliates.

Allows qualified community development entities to apply for both the Rural Reserve (consisting of $156,250,000) and the Statewide Reserve (consisting of $52,083,333). Sets out requirements for investments made under the Rural Reserve and the Statewide Reserve.

Directs a qualified community development entity issuing qualified equity investments to submit a report to the Department within the first five business days after the first anniversary of the initial reduction allowance that documents the investment of 85 percent of the purchase price in qualified low-income community investments in qualified active low-income community businesses in North Carolina. Specifies the required content of the report. Requires a qualified community development entity to continue to submit annual reports to the Department on or before April 1 of the calendar year during the compliance period.

Provides that this Part II, proposed Article 3L, applies to qualified equity investments made on or after July 1, 2015.

Part III.

Enacts new GS Chapter 105, Article 3L, Historic Rehabilitation Tax Credits Investment Program, providing for tax credits for a taxpayer allowed a federal income tax credit for making qualified rehabilitation expenditures for a certified income-producing historic structure in the amount of 15 percent for rehabilitation expenditures that range from $0 to $10 million, and 10 percent for expenditures that range form $10 million to $20 million. Further provides for development tier bonuses and targeted investment bonuses. Includes provisions in regards to pass-through entities that qualify for a tax credit and how the credit can be allocated. Includes definitions for the new article, including certified historic structure, eligibility certification, pass-through entity, and targeted investment. Establishes a tax credit ceiling, providing that no tax credit for an income-producing certified historic structure can exceed $4.5 million. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.

Establishes a tax credit for a taxpayer not allowed a federal income tax credit for making qualified rehabilitation expenditures for a certified non-income-producing historic structure that has rehabilitation expenses of at least $10,000, providing that the credit is equal to 15 percent of the rehabilitation expenses. Provides a tax credit ceiling of $22,500 per discrete property parcel. Provides certain limitations and allowances for the credit. Provides definitions for use in the section, including discrete property parcel, placed in service, and rehabilitation expenses. Authorizes the NC Historical Commission (Commission), in consultation with the State Historic Preservation Officer, to adopt rules necessary to administer the certification process of Article 3L and allows the adoption of a fee schedule for providing such certifications, with specified limitations. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.

Enacts provisions that outline how and against what tax liability the credits can be claimed as well as specified caps and forfeiture provisions. Enacts language which requires substantiation of certain information in order to claim a credit, including copies of certifications, a copy of an eligibility certification, and other specified records that can be required by the Secretary of Revenue. Provides that if a credit is issued pursuant to Article 3L, no other tax credit can be claimed from Articles 3D or 3H under GS Chapter 105 for the same activity. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.

Provides reporting and tracking requirements, directing the Department of Revenue to include specified information in the economic incentives report, including the number of taxpayers that took the credits allowed, total cost to the General Fund of the credits taken, and the total amount of tax credits carried forward, by type of tax. Provides that new Article 3L expires for rehabilitation expenditures and rehabilitation expenses on January 1, 2021. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date. 

Amends GS 105-129.75, the sunset provision for mill rehabilitation tax credits, providing that the eligibility certifications under GS Chapter 105, Article 3H, expire on January 1, 2023.

Part IV.  

Amends GS 143B-437.02A to amend the requirements for grants from the Film and Entertainment Grant Fund (Fund) to require a production company have qualifying expenses of at least $100,000 for academic linked material and at least $250,000 for any other production (was, $5 million for a feature length film and $250,000 per episode of a video or television series). Limits grant amounts to 15% plus any percentages given for return-on-investment inventive bonuses, or an amount more than $20 million for a feature length film. No longer prohibits using funds for a production that is harmful to minors. Amends the conditions under which a return on investment incentive bonus may be awarded and sets the bonus amount at 2%. Adds and defines the term academic linked material, deletes the term employee, and amends the term production to add academic linked material and to also include video or tv series or a commercial for theater or tv viewing which includes access through cable tv, broadcast tv, dvd, and online sources. Also provides that for video and tv series, a production is each episode (was, all of the episodes) of the series produced for a single season. Adds a deadline and other requirements for response to a grant application. Provides that funds may be disbursed from the Fund only in accordance to an agreement between the state and the production company. Sets the maximum amount of total annual grant liability at $60 million. Adds a clawback provision for when a production company awarded a grant fails to meet or comply with any condition or requirement in the agreement. Requires the Commerce Department to conduct a study to determine the minimum funding needed to successfully implement the Fund. Requires a report to the specified legislative finance and appropriations committees and the Fiscal Research Division by April 1 of each year.

Applies to awards from the Fund made on or after the date the Part becomes law.

Part V. 

Reenacts Article 3E, Low-Income Housing Tax Credits, of Subchapter I of GS Chapter 105 as it existed immediately before its repeal (the Article expired for developments to which federal credits were allocated on or after January 1, 2015) and extends the date of the repeal of the statute to January 1, 2020. Amends GS 105-129.42 to give the credit to a taxpayer who is allocated a federal low-income housing tax credit to construct or substantially rehabilitate a qualified North Carolina low-income housing development that is located in a development tier one or two area, an urban progress zone, or an agrarian growth zone. 

Part VI. 

Amends GS 105-130.45, which provides a tax credit for manufacturing cigarettes for exportation, to add a subsection (g) to repeal this section effective for cigarettes exported on or after January 1, 2020.

Amends GS 105-130.46, which provides a tax credit for manufacturing cigarettes for exportation while increasing employment and utilizing state ports, to add a subsection (l) to repeal this section effective for cigarettes exported on or after January 1, 2020.

Part VII. 

Reenacts GS 105-130.41 (credit for North Carolina State Ports Authority wharfage, handling, and throughput charges) as it existed immediately before it was repealed (the statute was repealed January 1, 2014). Extends the date of the repeal of the statute to January 1, 2020. Effective for taxable years beginning on or after January 1, 2015.

Part VIII. 

Reenacts Part 5 of Article 4 of Subchapter I of GS Chapter 105 (Tax Credits for Qualified Business Investments) as it existed immediately before its repeal (the Article expired for investments on or after January 1, 2014). Extends the sunset date of the Part to January 1, 2020. Provides that this Part is effective for taxable years beginning on or after January 1, 2015. 

Part IX.

Amends Section 15.19(a1) of SL 2013-360, concerning the Job Development Investment Grant Program (Program). Provides that regardless of the provisions of subsection (c) of GS 143B-437.52, for July 1, 2013, through December 31, 2015, the maximum total amount for grants awarded under the Program, including the amounts transferred to the Utility Account under GS 143B-437.61, is $45 million.

Changes the title of Part 2G of Article 10 of GS Chapter 143B to Job Growth Reimbursement Opportunities-People Program (was, Job Development Investment Grant Program). Directs the Revisor of Statutes to make the necessary conforming changes to reflect the renaming of the Program as provided in this section.

Amends GS 143B-437.52(a) to add to the conditions that must be met before entering into agreements with businesses to provide grants under JDIG that for projects in development tier three areas, the affected local governments must have participated in recruitment and offered incentives in a manner that is appropriate to the project.

Repeals GS 143B-437.52(b), which gave priority in selecting between applicants for grants under the Program to a project located in an Eco-Industrial Park (Park) certified under GS 143B-437.08 over a comparable project not located in a certified Park.

Amends GS 143B-437.53 to increase the required number of eligible positions when applying for a grant from 20 to 50 for projects in development tier three areas. Amends GS 143B-437.53 (c) to provide that for the purposes of this subsection (Health Insurance), a business provides health insurance for employees if it pays at least 50% of the premiums for health care coverage for its employees.

Amends GS 143B-437.56 to require that 70% (was, 75%) of the annual grant be payable to the business when an eligible position is located in a development tier three area.

Amends GS 143B-437.57(a) to require that each community economic development agreement must include a requirement that the business maintain employment levels in North Carolina at whichever is greater: (1) the level of employment on the date of the application or (2) the level of employment on the date of the award, and that the agreement include a provision requiring the recapture of an appropriate portion of the grant (was, allowed recapture of all or part of the grant) if the business does not remain at the site for the required term. 

Amends GS 143B-437.62 to provide that the authority of the Committee to award new grants expires January 1, 2020 (was, January 1, 2016).

Requires the Department of Commerce to study the factors that have contributed to the termination of grants awarded pursuant to Part 2G of Article 10 of GS Chapter 143B. Requires a report to the House of Representatives Finance Committee, the Senate Finance Committee, the House Committee on Agriculture and Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division by March 1, 2016.

Part X. 

Amends GS 78-17 to add a new exemption to the list of transactions that are exempt from the registration and filing requirements to include the offer or sale of securities conducted in accordance with proposed GS 78A-17.1, the Invest NC exemption. Effective when the bill becomes law and expires 12 months after the effective date.

Enacts new GS 78A-17.1, Invest NC Exemption, to Article 3 of GS Chapter 78A. Provides that an offer or sale of a security by an issuer is exempt from registration requirements under GS 78-24 and filing requirements under GS 78A-49(d) if the offer or sale is conducted in accordance with the 13 specified requirements. Provides that the caps set for cash and other consideration for all sales of the security in reliance upon the exemption in GS 78A-17.1 must be cumulatively adjusted every fifth year by the Secretary of State (Administrator) to reflect the change in the Consumer Price Index for all Urban Consumers published by the Bureau of Labor Statistics. Requires an issuer of security for which the offer of sale is exempt under this section to submit a free-of-charge quarterly report to the issuer's shareholders until there are no outstanding securities issued under this section. Specifies how an issuer can satisfy the reporting requirement via an Internet website if made available in accordance with specified requirements. Requires that an issuer must file each quarterly report with the Administrator. Specifies content required to be in the report. Provides criteria for offers and sales to controlling persons, defined as an officer, director, partner, trustee, or individuals having similar status or performing similar functions as the issuer, or a person owning 10% or more of the outstanding shares of any class or classes of securities of the issuer. Provides for disqualification for the exemption if an issuer or person affiliated with the issuer or offering is subject to any qualifications contained in 18 NCAC 06A. 1207(a)(1) through (a)(6) or contained in Rule 262 as promulgated under the Securities Act of 1933 (17 CFR 230.262).  Authorizes the Administrator to adopt rules to protect investors who purchase securities under this section. Directs the Administrator to charge a nonrefundable filing fee of $150 for filing the exemption notice. Becomes effective 12 months after the effective date of this act and expires on July 1, 2017.

Directs the Secretary of State (Secretary) to adopt rules to implement this act within 12 months of the effective date of this act. Provides for a 15-day notice and comment period and requires the Secretary to hold at least one public hearing on the rules. Provides that the rules become effective on the first day of the month following the date the rules are adopted and sent to the Codifier of Rules for entry into the North Carolina Administrative Code. Becomes effective when this act becomes law and expires July 1, 2017.

Part XI.

Amends GS 105-164.14A, which allows specified taxpayers an annual economic incentive refund of the sales and use tax paid under Article 5 of GS Chapter 105. Repeals the economic incentive refund for purchases made on or after January 1, 2020 (was, January 1, 2016) for the following taxpayers: (1) passenger air carrier, (2) motorsports team or sanctioning body, and (3) professional motorsports team. Also repeals the economic incentive refund for purchases made on or after January 1, 2020 (was, January 1, 2014) for taxpayers engaged in an analytical services business.

This Part is effective when it becomes law. Provides that for purposes of an analytical services business, this Part applies to purchases made on or after the effective date.

Part XII.

Reenacts Article 3F, Research and Development, of Subchapter I of GS Chapter 105 as it existed immediately before its repeal.

Amends GS 105-129.51 to provide that Article 3F is repealed for taxable years beginning on or after January 1, 2020 (was, January 1, 2016).

Amends GS 105-129.56, regarding the tax credit for interactive digital media development tax, to repeal this section effective for taxable years beginning on or after January 1, 2020.

Makes this part effective for taxable years beginning on or after January 1, 2015. Provides that the credit in GS 105-129.56, as reenacted by this Part, applies to expenses occurring on or after January 1, 2015.

Part XIII. 

Requires the employees of the Department of Commerce in each Collaboration for Prosperity Zone to examine each annual update of the plan and collate all information relevant to the zone, county, region, and other unit of local government in the zone and provide a copy of the collated information to each unit of local government within the zone, including any additional regional assets not contained in the annual update. Requires the employees to work with each unit of local government in the zone to educate and assist each unit of local government in maximizing its economic potential and coordinating recruitment of industry to increase utilization of assets for economic development opportunities.

Part XIV.

Amends GS 105-164.13 to provide that the sales of electricity for use at a qualifying datacenter and datacenter support equipment that is to be located and used at the qualifying datacenter are exempt from the tax imposed by GS Chapter 105, Article 5, Sales and Use Tax. Specifies what types of capitalized property is considered to be "datacenter-support equipment" for tax purposes.

Amends GS 105-164.3, the definitions section for the the sales and use tax article, adding language to define qualifying datacenter as a datacenter that (1) meets the wage standard and health insurance requirements of GS 143B-437.08A and (2) has been certified by the Secretary of Commerce, by way of written determination, that at least $75 million in private funds has or will be invested in the datacenter by the owners, users, or tenants within five years of the date the same make the first real or tangible property investment in the datacenter  on or after January 1, 2012. Makes conforming technical changes to the statute. 

Sets out in GS 105-164.13(55a) when the tax exemption can be forfeited, including: the level of investment specified above is not timely, investment is timely but specific datacenter support equipment is not located or used at the qualifying datacenter, or portions of the electricity are not used at the datacenter. Specifies that a taxpayer that forfeits such an exemption is liable for all past taxes avoided as a result of the exemption, computed from the date the taxes would have been due if the exemption was not allowed, plus interest established pursuant to GS 105-241.21. Sets out formula for calculating the interest due depending on the way in which the forfeiture was triggered. 

Effective July 1, 2015, applying to sales made on or after that date. 

Part XVI.

Unless otherwise indicated, effective when the act becomes law.

Repeals GS 14-306.4 (prohibiting electronic machines and devices for sweepstakes), effective January 1, 2016. Also effective January 1, 2016, enacts new Part 23, Electronic Sweepstakes in Article 10 of GS Chapter 143B, providing as follows.

Requires a license to operate an electronic sweepstakes establishment and limits the operation of electronic sweepstakes devices to within a licensed establishment. Defines an electronic sweepstakes device as an energy driven device that is connected to a server through a local network that is capable of displaying sweepstakes results on a screen or other mechanism by a sweepstakes entrant. Defines sweepstakes as any game, advertising scheme or plan, or other promotion that, with or without the purchase of any good or service and without separate consideration, a person may enter to win or become eligible to receive any prize, the determination of which is based upon chance and in which there is a finite pool of entries.

Sets out requirements for licensure including a $250 application fee. Licensure is to be administered and enforced by the Department of Commerce (Department). Sets out requirements for applicants, including the necessary relationship to the state and doing business in the state. Requires the Department to conduct a background investigation of the applicant before issuing a license. Allows the Department to refuse a license if (1) the applicant has submitted false or misleading application information, (2) the applicant has had a license revoked and not restored, (3) the applicant has been convicted of a violation of federal or state level gambling laws within five years of the application, or (4) the applicant’s background investigation evidenced a pattern of failure to exhibit good character and good standing in the community. Requires licensing applications to include a certificate report from an authorized independent testing laboratory on each electronic sweepstakes device listed in the application to be placed into operation at the establishment. Prohibits transferring a license, requires the license to be displayed in the establishment, and allows the license to be amended to add additional devices.

Requires potential electronic sweepstakes device operators to cooperate with the Department’s investigation. Requires the Department to adopt rules that provide for disclosure of information required to be disclosed under the act. Specifies information that must be disclosed. Makes documents compiled by the Department in conducting its investigation confidential.

Requires the Department to publish a list of authorized independent testing laboratories and to adopt rules to establish a process for becoming an authorized independent testing laboratory. Requires the authorized labs to issue a certification report with respect to the electronic sweepstakes devices and related systems. Specifies information that must be included in the report.

Requires a license to supply sweepstakes software to a sweepstakes gaming device operator. Specifies the information to be included in the application.

Specifies that the Article authorizes only the operation of server-based electronic sweepstakes devices that associate a prize with an entry or entries from a predetermined finite pool of winning and losing entries at the time the sweepstakes is entered. Prohibits specified activities including willfully failing to award prizes offered other than for failure by the entrant to comply with the rules of the sweepstakes or award or advertise prizes other than those that have been properly announced; knowingly requiring the participant to pay more than fair market value for the item, product, or service that entitles a participant to enter a sweepstakes; and operating a sweepstakes game which does not have a finite number of entries.  Requires licensee to comply with specified interior and exterior signage, and advertising requirements. Prohibits an operator from (1) being issued an ABC permit authorizing the sale of alcoholic beverages for consumption on the sweepstakes location premises; (2) allowing an individual under 18 to enter or be employed at a sweepstakes facility; (3) offering or paying out anyone a single prize with a value of more than $10,000; and (4) causing the sweepstakes results to be located other than on a server that is at the location where the sweepstakes takes place. Requires operators to provide the Department of Revenue with information on individuals winning prizes with a value of more than $600.

Sets out reasons for which the Department may revoke or suspend a license, after holding a hearing.

Provides for enforcement of the Article. Unless a greater penalty is otherwise provided, makes it a Class 2 misdemeanor, subject to a fine between $25,000 and $100,000 and bar from obtaining a license, for operating an electronic sweepstakes without a license. Willful violations of other provisions of the Article are punishable by fines of $500 to $10,000.

Enacts new Article 2E, Electronic Sweepstakes, in GS Chapter 105.  Levies an excise tax on each establishment as follows: (1) a rate of $2,000 per electronic sweepstakes establishment, (2) a rate of $1,000 per electronic sweepstakes device, and (3) a rate of 4% on gross receipts. Allows a city or county to, by resolution or ordinance, impose an excise tax on each establishment located in that city or county of $1,000 on each establishment and $500 on each device. Provides that the excise tax may be levied by the county or city, but not by both. Requires at least 3% of the net revenue collected from the local tax to be distributed to the county sheriff’s department or municipal police department, with the remainder to be used for any public purpose. Requires the Secretary to remit the net tax proceeds collected under this Article to the General Fund to be used for Medicaid and mental health purposes (allows the Department of Revenue to retain 6% for administrative expenses). Provides that if a county or city imposes an excise tax under GS 105‑113.122, the amount that would be distributed to the county sheriff's department or the municipal police department of the taxing jurisdiction is waived and that amount reverts to the General Fund and may be used for any public purpose. Provides that the Article is applicable to any electronic sweepstakes device without regard to how the device is activated, how the device is programmed for operation, or how the device determines and associates the prize with an entry or entries at the time the sweepstakes is entered.

Makes conforming changes.

Enacts new GS 143B-947 allowing the Department of Public Safety to give the Department the criminal history of any prospective electronic sweepstakes licensee. Sets out fingerprinting requirements.

Applies to an electronic sweepstakes establishment and devices operated on or after January 1, 2014.

Provides for temporary licensure for those submitting an application for licensure before September 1, 2015.

Unless otherwise indicated, effective when the act becomes law.

Amends GS 20-16.3(d) to clarify that a numeric result on an alcohol screening test or a driver's refusal to submit to the test may be used by a law enforcement officer, is admissible in court, or may be used by an administrative agency in determining if there are reasonable grounds or probable cause to believe either of the following: (1) the driver has committed an implied-consent offense under GS 20-16.2 or (2) the driver had consumed alcohol or had an alcohol concentration above 0.0. Effective December 1, 2015.

Amends GS 20-139.1(b5) to require that a person charged with a violation of GS 20-141.4 must be requested to provide a blood sample in addition to or instead of a chemical analysis of the breath at any relevant time after the person charged with a violation was driving. Effective December 1, 2015.

Amends GS 20-129(g) to prohibit anyone from selling or operating on the state's highways any motor vehicle manufactured after December 31, 1970 (was December 31, 1955) unless the motor vehicle is equipped with stop lamps, one on each side of the vehicle's rear. Prohibits a person from selling or operating on the state's highways any motor vehicle, moped, or motor-driven vehicle manufactured after December 31, 1970, unless it is equipped with a stop lamp on the rear. Includes specifications as to the display and visibility of the stop lamps, and references "stop lamps" in plural as opposed to previous references to a singular "stop lamp."

Amends GS 20-129.1 to require additional lighting equipment on certain vehicles. Requires additional lighting on every bus or truck, regardless of its size, and on every bus or truck 80 inches or more in overall width. Also expands the stop lamp requirements for every trailer or semi-trailer with a gross weight of 4,000 pounds or more. Substitutes "stop lamps" and/or brake reflectors for brake lights. Provides that stop lamps on the rear of vehicles should be displayed as red but makes an exception to permit vehicles that were originally manufactured with amber stop lamps to display an amber light.

Amends GS 20-130.1, which prohibits the use of red or blue lights in vehicles with a few exceptions. Clarifies that to be prohibited, the red or blue light does not have to be facing forward.

Amends GS 143-166.14 to clarify that the term "salary" means the total base pay of a person as reflected on the person's salary statement.

Amends GS 143-166.15 to provide that regardless of the provisions of GS 143-166.14, the persons entitled to benefits are subject to the provisions of GS 97-27 during the two-year period of payment of total base pay. Provides that all salary payments are to be made at the same time and in the same manner as other payments made to other persons in the same department.

Appropriates an amount from the General Fund for the 2015-16 fiscal year that is sufficient to fund salary increases under GS 20-187.3 for members of the State Highway Patrol. Effective July 1, 2015.

Except as otherwise indicated, the remainder of this act becomes effective when it becomes law.

Includes whereas clauses.

Appropriates $208,390,767 for 2015-16 and $212,265,373 from 2016-17 from the General Fund to the Department of Public Instruction as title indicates.

Effective July 1, 2015.

Amends Section 23 of Article II of the NC Constitution as title indicates for all laws creating new taxes or increasing existing taxes. Excludes from the supermajority requirement laws repealing or restricting specific tax preferences and laws permitting local taxing units to levy specific taxes. Requires the proposed amendment to be submitted to the voters in the November 2016 election.

Amends GS 105-129.16A to add subsection (a1) providing for a carryforward redemption for the tax credit for constructing, purchasing, or leasing renewable energy property as specified in this section. Provides that a credit must be carried forward due to specified limitations, then the taxpayer can make a binding election to redeem the carryforward in a taxable year so long as the credit allowed does not exceed the tax against which the credit is claimed for the taxable year. Provides that the carryforward redemption amount is equal to 90% of the amount of the carryforward. Also enacts subsection (d1) providing for a special allocation which allows a taxpayer to allocate the credit received pursuant to this section to another business entity in accordance with the provisions of any agreement between the taxpayer and the business entity.

Amends GS 105-129.17(b) concerning a tax credit cap, clarifying that the section also applies to carryforwards not redeemed pursuant to GS 105-129.16A(a1).

Includes various whereas clauses about the success of Triangle Residential Options for Substance Abusers Inc. (TROSA).

Appropriates from the General Fund to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, $1,150,000 for the 2015-16 fiscal year and $1,150,000 for the 2016-17 fiscal year. Funds are to be allocated to TROSA to support the expansion of TROSA's substance abuse recovery services. 

Requires TROSA to report, by June 30 of 2016 and 2017, to the General Assembly on the breakdown of how the funds allocated to TROSA were used for expansion. Reports must include total number of individuals served by TROSA during the fiscal year in which the report is submitted. 

Effective July 1, 2015.

Amends GS 105-153.5 to allow a deduction from the corporate income tax of up to $25,000 of net business income the taxpayer receives during the taxable year if the taxpayer has annual receipts, combined with the annual receipts of all related persons, of $800,000 or less. Provides that in the case of a married couple filing a joint return where both spouses receive or incur net business income, the maximum dollar amounts apply separately to each spouse's net business income, not to exceed a total of $50,000.

Effective for taxable years beginning on or after January 1, 2015.

Amends GS 105-164.13 to provide that the sales of electricity for use at a qualifying datacenter and datacenter support equipment that is to be located and used at the qualifying datacenter are exempt from the tax imposed by GS Chapter 105, Article 5, Sales and Use Tax. Specifies what types of capitalized property is considered to be "datacenter-support equipment" for tax purposes. 

Amends GS 105-164.3, the definitions section for the the sales and use tax article, adding language to define qualifying datacenter as a datacenter that (1) meets the wage standard and health insurance requirements of GS 143B-437.08A and (2) has been certified by the Secretary of Commerce, by way of written determination, that at least $75 million in private funds has or will be invested in the datacenter by the owners, users, or tenants within five years of the date the same make the first real or tangible property investment in the datacenter  on or after January 1, 2012. Makes conforming technical changes to the statute.  

Sets out in GS 105-164.13(55a) when the tax exemption can be forfeited including: the level of investment specified above is not timely, investment is timely but specific datacenter support equipment is not located or used at the qualifying datacenter, or portions of the electricity are not used at the datacenter. Specifies that a taxpayer that forfeits such an exemption is liable for all past taxes avoided as a result of the exemption, computed from the date the taxes would have been due if the exemption was not allowed, plus interest established pursuant to GS 105-241.21. Sets out formula for calculating the interest due depending on the way in which the forfeiture was triggered.  

Effective July 1, 2015, applying to sales made on or after that date. 

Adds new Part 3 to Article 23 of GS Chapter 116. Establishes the 11-member North Carolina STEM Scholars Advisory Commission (Commission) to administer the North Carolina STEM Scholars Program (Program). Sets out provisions governing the functioning of the Commission. Establishes the Commission's powers and duties, including reviewing applications and making recommendations to the State Education Assistance Authority (Authority) for the award of loans. Creates the Program to provide a four-year forgivable scholarship loan in the amount of $6,500 per year to high school seniors committed to working as teachers of science, technology, engineering, and math (STEM). Establishes the North Carolina STEM Scholars Fund (Fund) to be administered by the Authority. Limits Fund use to (1) loans made under the act's provisions, (2) the Authority's administrative costs, and (3) costs incurred by the Board of Governors in providing extracurricular activities to loan recipients. Sets out provisions concerning eligibility for the loans and establishes the loan terms and conditions, including forgiving the loan if the recipient teaches in a STEM subject area for three consecutive years (within seven years after graduation) at a state public school that is low-performing, or after four years of STEM teaching at a state public school or school operated by the US government in the state. Requires the UNC Board of Governors to administer extracurricular activities for participating students. Requires the Authority to report, by December 1, 2016, and annually thereafter, to the Joint Legislative Education Oversight Committee on the Fund and loans awarded from the Fund. 

Appropriates $754,000 for 2015-16 from the General Fund to the UNC Board of Governors and $1,404,000 for 2016-17 to implement the act. Requires specified amounts of those funds to be used to provide loans, administer the Program, and for extracurricular activities. 

Enacts new GS Chapter 18D, Gaming. Establishes the nine-member North Carolina State Gaming Commission (Commission) to establish and oversee the operation of gaming in the state. Locates the Commission in the Department of Commerce for budgetary purposes, but makes the Commission an independent, self-supporting, and revenue-raising agency. Sets out requirements for Commission membership and sets terms at five years. Sets out further provisions concerning the operation of the Commission, including setting member compensation at $125,000. Sets out the Commission's powers and duties and makes the Commission's records open and available to the public. Requires the Commission to make quarterly and annual reports to the Governor, State Treasurer, and General Assembly.

Provides that the only information concerning a lottery winner that is public record is the individual's name, city and state of residence, the game played, the amount won, and the date won. 

Reserves Article 2, Lottery.

Enacts Article 3, Regulation of Electronic Sweepstakes, as follows, effective January 1, 2016.

Requires a license from the Commission to operate an electronic sweepstakes establishment and limits the operation of electronic sweepstakes devices to within a licensed establishment. Defines an electronic sweepstakes device as an energy-driven device that is connected to a server through a local network that is capable of displaying sweepstakes results on a screen or other mechanism by a sweepstakes entrant. Defines sweepstakes as any game, advertising scheme or plan, or other promotion that, with or without the purchase of any good or service and without separate consideration, a person may enter to win or become eligible to receive any prize, the determination of which is based upon chance and in which there is a finite pool of entries.

Sets out requirements for licensure including a $250 application fee. Licensure is to be administered and enforced by the Commission. Sets out requirements for applicants, including the necessary relationship to the state and doing business in the state. Requires the Commission to conduct a background investigation of the applicant before issuing a license. Allows the Commission to refuse a license if the (1) applicant has submitted false or misleading application information, (2) applicant has had a license revoked and not restored, (3) applicant has been convicted of a violation of federal or state level gambling laws within five years of the application; or (4)applicant’s background investigation evidences a pattern of failure to exhibit good character and good standing in the community. Requires licensing applications to include a certificate report from an authorized independent testing laboratory on each electronic sweepstakes device listed in the application to be placed into operation at the establishment. Prohibits transferring a license, requires the license to be displayed in the establishment, and allows the license to be amended to add additional devices.

Requires potential electronic sweepstakes device operators to cooperate with the Commission's investigation. Requires the Commission to adopt rules that provide for disclosure of information required to be disclosed under the act. Specifies information that must be disclosed. Makes documents compiled in conducting the investigation confidential.

Requires the Commission to publish a list of authorized independent testing laboratories and to adopt rules to establish a process for becoming an authorized independent testing laboratory. Requires the authorized labs to issue a certification report with respect to the electronic sweepstakes devices and related systems. Specifies information that must be included in the report.

Requires a license to supply sweepstakes software to a sweepstakes gaming device operator. Specifies the information to be included in the application.

Specifies that the Article authorizes only the operation of server-based electronic sweepstakes devices that associate a prize with an entry or entries from a predetermined finite pool of winning and losing entries at the time the sweepstakes is entered. Prohibits specified activities including willfully failing to award prizes offered other than for failure by the entrant to comply with the rules of the sweepstakes or award or advertise prizes other than those that have been properly announced; knowingly requiring the participant to pay more than fair market value for the item, product, or service that entitles a participant to enter a sweepstakes; and operating a sweepstakes game which does not have a finite number of entries.  Requires licensee to comply with specified interior and exterior signage and advertising requirements. Prohibits an operator from (1) being issued an ABC permit authorizing the sale of alcoholic beverages for consumption on the sweepstakes location premises; (2) allowing an individual under 18 to enter or be employed at a sweepstakes facility; (3) offering or paying out anyone a single prize with a value of more than $10,000; and (4) causing the sweepstakes results to be located other than on a server that is at the location where the sweepstakes takes place. Requires operators to provide the Department of Revenue with information on individuals winning prizes with a value of more than $600.

Sets out reasons for which the Commission may revoke or suspend a license, after holding a hearing.

Provides for enforcement of the Article. Unless a greater penalty is otherwise provided, makes it a Class 2 misdemeanor, subject to a fine between $25,000 and $100,000 and bar from obtaining a license, for operating an electronic sweepstakes without a license. Willful violations of other provisions of the Article are punishable by fines of $500 to $10,000.

Reserves Article 4, Bingo and Raffles, and Article 5, Regulation of Boxing.

Enacts new Article 2E, Electronic Sweepstakes, in GS Chapter 105.  Levies an excise tax on each establishment as follows: (1) a rate of $2,000 per electronic sweepstakes establishment, (2) a rate of $1,000 per electronic sweepstakes device, and (3) a rate of 4% on gross receipts. Allows a city or county to, by resolution or ordinance, impose an excise tax on each establishment located in that city or county of $1,000 on each establishment and $500 on each device. Provides that the excise tax may be levied by the county or city, but not by both. Requires at least 3% of the net revenue collected from the local tax to be distributed to the county sheriff’s department or municipal police department, with the remainder to be used for any public purpose. Requires the Secretary to distribute 9% of the net tax proceeds collected under this Article to be distributed to various law enforcement agencies, with the amounts and recipients specified in the act (allows the Department of Revenue to retain 6% for administrative expenses), with the remaining proceeds to be used for any public purpose. Provides that if a county or city imposes an excise tax under GS 105‑113.122, the amount that would be distributed to the county sheriff's department or the municipal police department of the taxing jurisdiction is waived and that amount reverts to the General Fund and may be used for any public purpose. Provides that the Article is applicable to any electronic sweepstakes device without regard to how the device is activated, how the device is programmed for operation, or how the device determines and associates the prize with an entry or entries at the time the sweepstakes is entered.

Makes conforming changes.

Recodifies various Articles of GS Chapter 18C, and Part 2 of Article 37 of GS Chapter 14 under GS Chapter 18D. Repeals Article 2 (North Carolina State Lottery Commission) of GS Chapter 18C. 

Repeals GS 14-306.4 (prohibiting electronic machines and devices for sweepstakes), effective January 1, 2016.

Makes conforming changes. 

Sets out provisions for the initial appointments to the Commission.

Requires the Commission to adopt temporary rules and procedures to implement the licensing processes by September 1, 2015.

Unless otherwise indicated, effective when the act becomes law.

Due to the fact that Governor McCrory's proposed budget was released on March 5, 2015, and has been available to the public well in advance of the filing of H 940, we will not be including a summary of the bill version of his budget. For the content of the bill, please follow the link to the bill on the General Assembly's site above. Further information on the Governor's proposed budget can also be found on the Office of State Budget and Management's website at http://osbm.nc.gov/thebudget.