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

Adds that resolutions confirming three Gubernatorial appointments, one to the North Carolina Industrial Commission and two Special Superior Court Judges, may be introduced and considered in the House during the Fourth Extra Session.

Senate committee substitute to the 3rd edition engrosses the committee amendment from the Appropriations Committee, which is summarized in the previous digest.

Part I. Business Regulation

Section 1.1

Enacts new GS 95-25.24A concerning the Wage and Hour Act, providing that a franchisor is not the employer of a franchisee or the franchisee's employees for any purpose but specifically for employment law claims under state statute. Provides that franchisee and franchisor are understood to have the same definition as in federal law set out in 16 CFR 436.1.

Section 1.2

Amends the North Carolina State Building Code (Building Code) in GS 143-138 by enacting a new subsection (b16) to direct the Building Code Council to provide for an exemption from any requirements in the energy efficiency standards pursuant to Chapter 13 of the 2012 Building Code and the 2012 Energy Conservation Code, and subsequent amendments to the Building Code and the Energy Conservation Code, for the specified use and occupancy classifications under Chapter 3 of the 2012 Building Code. Specifies the following: Section 306, Factory Group F; Section 311, Storage Group S; and Section 312, Utility and Miscellaneous Group U.

Section 1.3

Amends GS 45-91, concerning the assessment of fees, processing of payments, and publication of statements in mortgage debt collection and servicing, providing that the servicer is not required to send the specified statement for  a fee and that the statement mailing requirements and borrower notification requirements of the statute are deemed satisfied by compliance with the disclosure requirements contained in Regulation Z, 12 CFR 1026.41, which is a federal regulation titled Truth In Lending, and statutory provisions for periodic statements for residential mortgage loans.

Part II. State And Local Government Regulation

Section 2.1

Amends GS 143-254.5 (Wildlife Resources Commission) and GS 143B-289.52 (Marine Fisheries Commission) to require the respective Commissions to treat email addresses and Commission-issued customer identification numbers as “identifying information” and to be treated as provided in GS 132-1.10, which specifies regulations for the keeping of personal identifying information.

Enacts new GS 132-1.14 concerning personally identifiable information of public utility customers obtained by the Utilities Commission from customers seeking assistance from the Public Staff for rate or service disputes, providing that such information is not considered public record under GS 132-1. Sets out permissible disclosure of such information. Further provides that personally identifiable information means a customer's name, physical address, email address, telephone number, and public utility account number. Effective July 1, 2017.

Section 2.2

Amends GS 42-42.1 and GS 62-110(g) concerning charging tenants for water and sewer services, deleting language which previously only allowed such billing to tenants located in the same contiguous premises, now providing that all tenants of leased single-family rental units can be charged for sewer and water services even if premises are not contiguous. Deletes language that previously required the Utilities Commission to adopt rules to define contiguous premises. Further amends the provisions authorizing the Utilities Commission to charge for water and sewer services to tenants, enacting new subdivisions GS 62-110(g)(4a), requiring the Utilities Commission to develop an application that lessors are required to submit to receive authority to charge tenants for water and sewer service in such situations. Provides that the application gives authority to charge for such services for multiple homes in North Carolina. Sets out required aspects of the form, including a description of the proposed billing method and billing statements as well as the proposed administrative fee to be charged by the applicant.  Makes conforming and clarifying changes.

Section 2.3

Amends GS 115C-47(41), which sets out the duty of local boards of education to encourage recycling in public schools, by clarifying that the local boards of education must comply with GS 160A-327 (displacement of private solid waste collection services by public enterprises). 

Section 2.4

Amends GS 153A-341, concerning the purposes in view of zoning regulations of counties, by moving, and amending, the existing language into five subsections, (a) through (e).

Requires that, prior to adopting or rejecting any zoning amendment, the governing board must adopt a statement describing whether the action is consistent with an adopted comprehensive plan and any other officially adopted plan, including any unified development ordinance (previously, does not require the statement to include whether the action is consistent with any other officially adopted plan including any unified development ordinance), and explaining why the board considered the action taken to be reasonable and in the public interest. Makes conforming changes to the provisions relating to the planning board's advisement and comment on proposed amendments.

Directs that, if the governing body adopts a zoning amendment that is inconsistent with the comprehensive plan or any other officially adopted plan, including any unified development ordinance, the governing board must deem the affirmative vote adopting that zoning amendment as a simultaneous amendment to the comprehensive plan and any other officially adopted plan, including any unified development ordinance, for the property identified in the zoning amendment only.

Amends GS 160A-383, concerning  the purposes in view of zoning regulations of cities and towns, by moving, and amending, the existing language into five subsections, (a) through (e), to make the language identical to that of GS 153A-341, as amended by the act and described above.

Section effective July 1, 2017. 

Section 2.5

Amends GS 153A-335 (Counties) and GS 160A-376 (Municipalities), concerning the subdivision of land within respective jurisdictions, exempting the subdivision of tracts of land as provided for in a will or intestate succession from subdivision regulations or from even being considered subdivision as that term is defined.

Adds new subsection (c) to both  GS 153A-335 (Counties) and GS 160A-376 (Municipalities), establishing that the county or a city may require only a plat for recordation for the division of a tract or parcel of land in single ownership if five criteria are met: (1) the tract or parcel to be divided is not exempted under subdivision (a)(2) of the statute; (2) no part of the tract or parcel to be divided has been divided under subsection (c) in the 10 years prior to the division; (3) the entire area of the tract or parcel to be divided is greater than five acres; (4) after division, no more than three lots result; and (5) after division, all resultant lots comply with any lot dimension size requirements of applicable land use regulations (if any), the use of the lots is in conformity with the applicable zoning requirements (if any), and a permanent means of ingress and egress is recorded for each lot.

Section effective July 1, 2017.

Section 2.6

Enacts new subsection (21) of GS 1-52, which establishes a three-year statute of limitation for an action against the owner of an interest in real property by a unit of local government for a violation of a land use statute, ordinance, or permit or any other official action concerning land use carrying the effect of law. Establishes that the claim for relief accrues upon the occurrence of the earlier of any of the following: (1) the facts constituting the violation are known to the governing body, an agent, or an employee of the unit of local government or (2) the violation can be determined from the public record of the unit of local government. 

Amends GS 1-50(a) to add a new subdivision (8) to establish a six-year statute of limitation for an action against the owner of an interest in real property by a unit of local government for a violation of a land use statute, ordinance, or permit or any other official action concerning land use carrying the effect of law. Provides that subdivision (8) does not limit the remedy of injunction for conditions that are actually injurious or dangerous to the public health or safety, but does prescribe an outside limitation of six years from the earlier of the occurrence of any of the following: (1) the violation is apparent from a public right-of-way or (2) the violation is in plain view from a place to which the public is invited.

Section effective July 1, 2017, applying to actions commenced on or after that date.

Section 2.7

Authorizes the Joint Legislative Program Evaluation Oversight Committee to amend the 2016-17 Program Evaluation Division (Division) work plan to direct the Division to study State law and internal agency policies and procedures for the delivery of public services through State grants and contracts to non-profits. Sets out procedures for collecting and requesting data for the study. Provides that if the study is conducted, the Division must submit a report detailing the results of the study as specified to the Joint Legislative Program Evaluation Oversight Committee and the Joint Legislative Commission on Governmental Operations no later than February  1, 2017.

Effective February 1, 2018.

Section 2.8

Amends SL 2016-94 (2016 Appropriations Act), adding a new section, Section 14.20A.(c), concerning regional water and sewer authority funding, providing that if prior to June 30, 2017, if participating counties and one or more participating municipalities in those counties enter into an interlocal agreement under Article 20 of GS Chapter 160A, then the Division of Environmental Quality must deem the requirement of establishing a regional water and sewer authority to be met pursuant to Article 1 of GS Chapter 162A.

Section  2.9

Amends Article 5 of GS Chapter 87 as follows. Renames the Article as Commercial Refrigeration Contracts. Renames the State Board of Refrigeration Examiners as the State Board of Commercial Refrigeration Examiners (Board) and modifies the Board's membership. 

Defines the terms commercial refrigeration contractor, industrial refrigeration contractor, and transport refrigeration contractor. Requires the Board to issue the following licenses: (1) a Class I license for any person engaged in the business of commercial refrigeration contracting; (2) a Class II license for any person engaged in the business of industrial refrigeration contracting; (3) a Class III license for any person engaged in the business of repair, maintenance, and servicing of commercial equipment; and (4) a Class IV license for any person engaged in the business of transport refrigeration contracting. Requires issuance of a license to any licensee whose business activities required a Class I or II license if that licensee had an established place of business and was licensed before January 1, 2017.

Increases the caps on the application, renewal, and reinstatement fees.

Makes clarifying and organizational changes. 

Applies to applications submitted and Board membership appointments on or after January 1, 2018.

Section 2.10

Amends GS 105-330.9 concerning the definition of the term antique automobile for the purposes of tax assessment, expanding the ownership requirements of the definition to provide that an antique automobile can be owned by an individual, either directly or indirectly, through one or more pass through entities (previously, current law required an antique automobile to be owned by an individual).

Section 2.11

Amends GS 132-6.2 concerning the provision of public records required by public agencies under GS 132-9, enacting new subsection (a1), which establishes that public agencies can satisfy public record access requirements by making its public records and computer databases available online in a format that allows a person to download a copy of the records and databases. Provides that if such access is provided, then the public agency does not have to provide copies through any other method or medium. Such copies can be voluntarily provided by another method or medium and a reasonable charge for such a service can be negotiated. Also enacts new subsection (f) to define computer database and media or medium.

Requires the State Chief Information Officer, working with specified entities, to report on the development and use of computer databases by State and local agencies and the need for public access to these public records by July 1, 2017. 

Section effective February 1, 2017.

Section 2.12

Amends GS 143A-5 to specify that the Lieutenant Governor's office is in the Hawkins-Hartness House located at 310 North Blount Street (previous law only specified it was located in Raleigh). 

Section 2.14

Enacts GS 136-28.6B providing that construction conducted by a private party pursuant to specified statutes is deemed to have been conducted by the Department of Transportation, thus making any stormwater rules and laws applicable to the Department of Transportation also applicable to the private party.

Section 2.16

Requires the DOT, for each type of permit issued by the Highway Divisions under GS Chapter 136, to make uniform all processes and procedures followed by the Highway Divisions when issuing that type of permit. Requires DOT to report no later than February 1, 2017, on the implementation of this subsection, including information concerning the processes and procedures as specified. Requires the report to be submitted to different committees depending on whether the General Assembly is in session at the time of the report: if in session, report goes to the House of Representatives Committee on Transportation Appropriations and the Senate Appropriations Committee on Department of Transportation; if not in session, the report goes to the Joint Legislative Transportation Oversight Committee.

Enacts new GS 136-93.01 to allow an application submitted for a permit issued by DOT or its agents under GS Chapter 136 (Transportation) to be submitted electronically.  Effective June 30, 2017. 

Amends GS 136-19.5 to now require DOT to also reimburse the utility owner for the cost of moving cable service when DOT requires the relocation of the cable and it is located in a right of way for which the utility owner contributed to the cost of acquisition.

Allows DOT to adopt temporary rules to implement the provisions of this section.

Section 2.17

Amends the process for becoming a licensed general contractor as found in GS 87-10, requiring first that an applicant submit an application before being entitled to an examination. Further requires any applicant to (1) be at least 18 years old, (2) possess good moral character, (3) provide evidence of financial responsibility, and (4) submit the appropriate application fee (previously, applicant only had to file an application for the examination on the correct form, at least 30 days before any regular or special meeting of the Board).  Also provides that the State Licensing Board for General Contractors (Board) must require an applicant to pay an examination fee not to exceed $100 (previously, the Board was permitted to charge the fee but not required). Makes organizational changes and deletes provisions concerning proof of good character. Further provides that an applicant must identify an individual that has successfully passed an examination approved by the Board; provides that for the purposes of this section this individual is known as the qualifier or qualifying party.  Set outs requirements for the examination if a qualifier or qualifying party wants to take an examination. Provides that if the qualifier or qualifying party passes the examination, and after review of the application and all relevant information, then the Board must issue a license to the applicant to engage in general contracting in North Carolina, which can be limited as specified (previously, the Board would conduct an examination, either oral or written, of all applicants for license for the classification of license for which an applicant has applied).  Further amends the process for taking the examination, making conforming and organizational changes, creating a new subsection (c1) concerning the disconnection of a qualifier or qualifying party from the licensee, providing that the license will remain in full force and effect for 90 days. After 90 days the license is invalidated, but the licensee is entitled to a return to active status pursuant to all relevant statutes and rules from the Board. Provides that during the 90-day period, no licensee can bid on or undertake contracts from the time the qualifier or qualifying party ceased to be connected to the licensee until the license is reinstated (previously, in times where the examined person was disconnected from the applicant, the license was in effect for 90 days but then was canceled, with the applicant being entitled to a reexamination). Deletes provision which provided for reexamination for those failing to pass. Enacts new subsection (d1) providing that the Board can require a new application if a qualifier or qualifying party requests to take an examination a third or subsequent time.  Amends provisions concerning the validity and expiration of a license, providing that licenses expire the first day of January following their issuance or renewal (was, a certificate of license expired on the 31st day of December following its issuance or renewal).  Deletes provision providing that renewals could be effected any time during the month of January without reexamination by payment of a fee to the Board. Adds language requiring all renewal applications to be submitted with a fee as specified.  Deletes language requiring the Board to mail written notice of the amount of the renewal fees for the upcoming year by November 30.  Adds language assessing a late fee for late renewal of applications received on or after January 1st (previously, late fee was assessed if received after January). Requires a licensee to fulfill all requirements of a new applicant as provided if desiring to be relicensed subsequent to the archival of license. Provides that archived license numbers are not reissued. Deletes language that provided that no renewal of a license can be effected after a lapse of four years.  

Effective July  1, 2017, applying to applications for licensure submitted on or after that date.

Section 2.18

Directs the Secretary of the Department of Health and Human Services and the Medical Care Commission (Commission) to repeal the Hospital Facilities Rules (Rules) on or before July 1, 2017. Defines Hospital Facilities Rules to mean 29 separate rules found in 10A NCAC 13B of the NC Administrative code, as specified in Section 2.18(a) of the bill.

Requires the Commission to adopt temporary rules to replace the Rules before the effective date of the repeal of the Rules required in Section 3.1(b). Requires the Commission to incorporate by reference all applicable rules, standards, and requirements of the most current edition of the Guidelines. Defines Guidelines to mean the American Society for Healthcare Engineering's Facility Guidelines Institute's "Guidelines for Design and Construction of Hospitals and Outpatient Facilities."

Provides that if temporary rules are not adopted before the repeal of the Rules, the Commission must use the 2014 Edition of the Guidelines until the temporary rules are adopted. 

Directs the Commission to adopt rules to replace the Hospital Facilities Rules. Requires the rules adopted pursuant to Section 2.18(d) to conform to the provisions of Section 2.18(c) of the act, notwithstanding GS 150B-19(4), and that are not subject to Part 3 of Article 2A of GS Chapter 150B (Adoption of Rules under the APA).

Provides that rules adopted pursuant to Section 2.18(d) are effective as provided in GS 150B-21.3(b1) (effective dates of rules) as though 10 or more written objections had been received as provided in GS 150B-21.3(b2) (objection of rules), similar to new GS 150B-19.4(c) concerning legislative review of rules with substantial financial costs, as enacted by this act.

Exempts rules adopted pursuant to Section 2.18(d) from the provisions of GS Chapter 150B that require the preparation of fiscal notes for any rule proposed to incorporate the Guidelines by reference.

Exempts the Hospital Facilities Rules from periodic review pursuant to GS 150B-21.3A until the Rules are repealed pursuant to Section 2.18(b) of the act.

Part III. Agriculture, Energy, Environment, and Natural Resources Regulation.

Section 3.1

Makes technical, clarifying, and conforming changes to provisions in SL 2015-286, Section 4.9(a); SL 2015-286, (b), (c); and SL 2015-241, Section 14.20(e).

Effective retroactively to July 1, 2015.

Section 3.2

Amends SL 2015-241, Section 14.20(f), as amended by SL 2015-286, Section 4.9(d), and provides that GS 130A-294(b1)(2), which requires a person to franchise the operation of the sanitary landfill from each local government that has jurisdiction prior to applying for a permit for a sanitary landfill, as amended, applies to franchise agreements that (1) are executed on or after October 1, 2015, and (2) are executed on or before October 1, 2015, if all parties to a valid and operative franchise agreement consent to modify the agreement for the purpose of extending the agreement’s duration to the life-of-site of the landfill for which the agreement was executed. Amends GS 130A-294(b1)(2) to limit the franchise granted to a sanitary landfill for the life-of-site of the landfill to a period of 60 years.  Makes conforming changes.  Applies to franchise agreements executed on or after October 1, 2015, and executed on or before October 1, 2015, if all parties to a valid and operative agreement consent to modify the agreement for the purpose of extending the agreement’s duration of the life-of-site of the landfill for which the agreement was executed.

Amends GS 160A-319 to clarify that the prohibition against a franchise being granted for a period of more than 60 years includes a franchise granted to a sanitary landfill for the life-of-site of the landfill under GS 130A-294(b1), provided that a franchise for solid waste collection or disposal systems and facilities, other than sanitary landfills (was, a franchise for solid waste collection or disposal systems and facilities), cannot be granted for a period of more than 30 years.

Amends GS 153A-136(a)(3) to provide that a county may regulate the storage, collection, use, disposal, and other disposition of solid waste by an ordinance that grants a franchise the exclusive right to commercially collect or dispose of solid waste within a defined portion or all of the county and set terms of any franchise, provided no franchise is granted for a period of more than 30 years unless a franchise granted to a sanitary landfill for the life-of-site of the landfill under GS 130A-294(b1) cannot exceed 60 years (was, may set the terms of any franchise, except no franchise may be granted for a period of 30 years).

Effective retroactively to July 1, 2015.

Section 3.3

Directs the Division of Waste Management  of the DEQ to examine the efficiency and cost-effectiveness of solid waste management activities in North Carolina as specified. Requires the DEQ to submit a report including the specified information to the Environmental Review Commission no later than November 1, 2017. 

Section 3.4

Amends GS 130A-294 to require the Department of Environmental Quality to approve aersolization of leachate and wastewater collected from a sanitary landfill as an acceptable method of disposal. Specifies that aerosolization that results in zero liquid discharge does not require a permit pursuant to GS 143, Article 21 or 21B.

Section 3.7

Amends GS 143-215.107A(c), which specifies the counties covered by the motor vehicle emissions testing and maintenance program, by removing Brunswick, Burke, Caldwell, Carteret, Catawba, Chatham, Cleveland, Craven, Edgecombe, Granville, Harnett, Henderson, Lenoir, Moore, Nash, Orange, Pitt, Robeson,  Rutherford, Stanly,  Stokes,  Surry, Wayne, Wilkes and Wilson counties from the counties covered by the statute. Amends a requirement in GS 20-183.2(b) concerning vehicles that are subject to an emissions inspection, providing that if it is a vehicle with a model year within 20 years of the current year and older than the three most recent model years or (ii)it is a vehicle with a model year within 20 years of the current year and has 70,000 or more miles than, and meets the two other requirements specified in the statute, then it is subject to an emissions inspection (previously, requirement was if it was a 1996 or later model and older than the three most recent model years or a 1996 or later model with 70,000 miles or more).  Effective on the later of the following dates and applies to motor vehicles inspected, or due to be inspected, on or after the effective date of the act: (1) July 1, 2018 or (2) the first day of a month that is 60 days after the DEQ certifies to the Revisor of Statutes that the EPA has approved an amendment to the SIP submitted as required.  Requires the DEQ to provide notice along with the effective date of the act on its website and by written or electronic notice to emissions inspection mechanic license holders, emissions inspection station licensees, and self-inspector licensees in the counties where motor vehicle emissions inspection requirements are removed by the act.

Requires the (DEQ) to prepare and submit to the United States Environmental Protection Agency (EPA) for approval by that agency a proposed North Carolina State Implementation Plan (SIP) amendment based on the change to the motor vehicle emissions testing program provided above, no later than March 30, 2017. 

Section 3.8

Amends GS 90-187.10, concerning licenses for certain veterinary practices, providing that a license is not needed for a  farrier or any person engaged in the activity or profession of shoeing hooved animals, provided that the person's actions are limited to shoeing hooved animals or trimming, clipping, or maintaining hooves.

Section 3.9

Adds the requirement that the Department of Environmental Quality (DEQ) study under what circumstances local governments should be allowed to exceed riparian buffer requirements mandated by the State and federal government. Require DEQ to also consider measures to ensure that local governments do not exceed their statutory authority for establishing riparian buffer requirements. Requires DEQ to consult with property owners and others entities impacted by riparian buffer requirements as well as local governments. Requires that for any recommendations made pursuant to this study or the DEQ study on whether to adjust the size of riparian buffers and activities allowed within the buffers to be submitted in a report to the Environmental Review Commission no later than July 1, 2017. DEQ must also include specific draft language for any rule or statutory changes necessary to implement the recommendations.

Amends GS 143-214.12 to allow a recipient of funds from the Ecosystem Restoration Fund who acquires a conservation easement or interest in real property appurtenant to a restoration project delivered to the Division of  Mitigation Services to, upon approval from DEQ, directly transfer the easement or property interest to another governmental agency or a DEQ approved third party. Removes the provision requiring a grant recipient to grant a conservation easement in the real property or interest in real property acquired with the funds to DEQ in a form acceptable to DEQ.

Section 3.11

Repeals GS 113A-109, titled “County letter of intent; timetable for preparation of land-use plan”, which required counties in a coastal area to report on their intent to adopt a land use plan under the Coastal Area Management Act in 1974.

Section 3.12

Repeals Section 4(c) of SL 2001-355, concerning a pasture point system by the Soil and Water Conservation Commission.

Section 3.13

Repeals GS 106-261 which required a report concerning milk purchased or sold.

Section 3.14

Directs the Commission for Public Health to repeal 10A NCAC 41A. 0301 (Definitions) and 10A NCAC 41A .0302 (Sale of Turtles Restricted) on or before July 1 2017. Prohibits the Department of Health and Human Services, the Department of Environmental Quality, or any other political subdivision of the State from implementing or enforcing those regulations until the effective date of the repeal.

Section 3.15

Prohibits the Director of the Division of Water Resources from requiring the use of on-site stormwater control measures to protect downstream water quality standards, except as required by state or federal law. Requires the Environmental Management Commission to adopt rules to amend 15A NCAC 02H .0506 (Review of Applications) consistent with this prohibition. Provides that the rules adopted under this provision are not subject to Part 3 (Rules Review Commission Review) of Article 2A of GS Chapter 150B and become effective as though 10 or more written objections had been received. Provides that the prohibition for the Director of the Division of Water Resources expires on the date that rules are adopted by the Environmental Management Commission.

Section 3.16

Amends GS 143-214.7 to exclude from the definition for built-upon area for purposes of implementing stormwater programs landscaping material, including, but not limited to, gravel, mulch, sand, and vegetation placed on areas that receive pedestrian or bicycle traffic or on portions of driveways and parking areas that will not receive the full weight of vehicular traffic. Also provides that an owner or developer of a property can opt out of any of the exemptions from built-upon areas.

Section 3.17

Amends the provisions governing fast-track permitting for stormwater management found in GS 143-214.7B, directing the Environmental Management Commission (EMC) to revise its rules by January 1, 2018, to include the specified licensed professionals as qualified to prepare a stormwater management system permit without a technical review, so long as the application complies with the Minimum Design Criteria. These professionals are landscape architects, engineers, geologists, soil scientists, and other licensed professions that the EMC deems appropriate.

Section 3.18

Directs the EMC to amends its rules so that mitigation is not required for losses of 300 linear feet or less of stream bed and providing that for losses of 300 linear feet or more of stream bed, mitigation is not required for 300 linear feet of those losses. Provides that the EMC must adopt temporary rules as soon as practicable to implement these new provisions.

Directs the DEQ to submit written comments to the United States Army Corps of Engineers in support of the Wilmington District of the Army Corps of Engineers adopting Regional Conditions that will increase the threshold for the requirement of mitigation for loss of stream bed of perennial or intermittent streams from 150 to 300 linear feet. Specifies that written comments must include a history of the current NC threshold of 150 linear feet and an outline of thresholds in other jurisdictions. 

Section 3.19

Repeals Section 14.6(p) and 14.6(q) of SL 2015-241 (2015 Appropriations Act), which required the Coastal Resources Commission (CRC) to amends its rules to allow the use of temporary erosion control structures as specified. Directs the CRC to adopt temporary rules for the use of temporary erosion control structures consistent with amendments made to the temporary erosion control structure rules adopted by the CRC on May 11, 2016. Directs the CRC to also adopt permanent rules to implement the above provisions.

Section 3.20

Directs the CRC to amend the Sediment Criteria Rule to exempt sediment from the cape shoals system used as a borrow site and portions of oceanfront beach that receive such sediment from the permitting requirements of the Sediment Criteria Rule. Further directs the CRC to adopt permanent rules substantively similar to these provisions.

Section 3.21

Directs the Division of Coastal Management (Division) in the DEQ, in consultation with the CRC, to study any change in erosion rates directly adjacent to existing and new terminal groins, with the ends of determining if long-term erosion rates should be adjusted to reflect any mitigation of shoreline erosion. Requires the Division to report the results of the study to the Environmental Review Commission (ERC) on or before July 1, 2017.

Section 3.22

Amends GS 14-419 concerning the investigation of possession of reptiles by the NC Museum of Natural Sciences (Museum) or the NC Zoological Park (Zoo), providing that if either entity finds that a seized illegally owned reptile is a venomous reptile, large constricting snake, or a regulated crocodilian, the Museum or the Zoo must determine the interim disposition of the seized reptile until a final disposition is determined by a court (previously, an interim disposition was not provided for). Provides that the Museum or Zoo are not liable to the owner of the reptile if it is determined that euthanasia is the appropriate interim disposition, or if the seized reptile dies of natural or unintended causes. Adds new subsection (b1) providing that if convicted of any violation of GS Chapter 14, Article 55 (Regulation of Venomous Reptiles), the court must issue a final disposition of the confiscated reptiles, which could include transfer of title to the State of North Carolina and reimbursement for the cost of seizure, delivery, and storage of the reptiles. Further provides that a law enforcement officer or animal control officer can kill a dangerous reptile if the officer determine there is an immediate threat public safety. Allows a large constricting snake or crocodilian to be given to the Zoo or to a Zoo representative.

Further directs the Department of Natural and Cultural Resources (DNCR) and the WRC to jointly study and develop a list of potential designated representatives for the storage and safekeeping of venomous reptiles, large constricting snakes, or crocodilians. Also directs them to study and develop potential procedural and policy changes to improve the regulation of dangerous reptiles, with a report to be submitted to the ERC no later than July 1, 2017.

Section 3.23

Exempts public water supply systems from the Daily Flow Requirements if flow rates and yields less than those required by the rule (1) are achieved through an engineering design that utilizes low-flow fixtures and low-flow reduction technologies and the design is prepared, sealed, and signed by a professional engineer licensed pursuant to GS Chapter 89C, and (2) provide for a flow that is sufficient to sustain the water usage required in the engineering design. Directs the Commission for Public Health to adopt rules substantively identical to the above provisions and requires them to become effective as though 10 or more written objections had been received.

Section 3.26

Establishes the North Carolina Sentinel Landscape Committee (Committee). Sets out the General Assembly's findings and sets out the purpose of the Committee. Requires the Committee to develop and implement programs and strategies that (1) protect working lands in the vicinity of and where testing and training occurs on major military installations, (2) address restrictions that inhibit military testing and training, and (3) forestall incompatible development in the vicinity of and where testing and training occurs on military installations. Sets out the Committee's powers and duties. Provides that the Committee consists of at least the following individuals or the individuals' designee: (1) Commissioner of Agriculture, (2) Secretary of the Department of Military and Veterans Affairs, (3) Secretary of Natural and Cultural Resources, and (4) the Dean of the College of Natural Resources at N.C. State University. Requires the Committee to meet at lease quarterly. Requires the Commission to report to the North Carolina Military Affairs Commission and the Agriculture and Forestry Awareness Study Commission annually, beginning September 1, 2017.

Part IV. Eliminate, Consolidate, and Amend Environmental Reports

Section 4.1 

Repeals GS 74-54.1(c), which required the Department of Environmental Quality to report annually to the Environmental Review Commission, the Fiscal Research Division, and the North Carolina Mining Commission on the cost of implementing the Mining Act of 1971 (Article 7 of GS Chapter 74).

Section 4.2

Repeals GS 143-135.39(f) and (g), which required the Department of Administration to annually report on the implementation of the Sustainable Energy Efficient Buildings Program to the General Government Appropriations Subcommittees of both the Senate and the House of Representatives, the Environmental Review Commission, and the Joint Legislative Commission on Governmental Operations.

Repeals GS 143-135.40(b), which required the Department of Administration to report the results of its monitoring of construction standards and sustainable building standards under the statute.

Section 4.3

Amends GS 143-215.9B to eliminate the requirement of the Environmental Management Commission to report on its progress in developing and implementing the collection system permit program required by the statute as part of its quarterly report to the Environmental Review Commission pursuant to GS 143B-282(b).

Section 4.4

Repeals GS  143-215.107C(d) and (e), which both required annual reports from the Department of Transportation (DOT) detailing plans to reduce miles driven by public and private sector employees.

Amends GS 143-341(8)(i).2b to eliminate an annual report by the Department of Administration concerning the number of new cars bought plus savings or costs for the purchases of those cars and fuel, as far as its duties concerning the operation of a central motor pool.

Section 4.6

Repeals GS 143B-279.5, which established and required a Biennial State of the Environment Report.

Section 4.7

Amends Section 11.1 of SL 1999-329, deleting a reporting requirement that the Environmental Management Commission must report on progress concerning the development of engineering standards for municipal and domestic wastewater collection systems to allow interconnection.

Section 4.8

Amends Section 13.9(d) of SL 2000-67, deleting a requirement that the Department of Environment and Natural Resources revise the beach management and restoration plan every two years.

 Section 4.9

Repeals Section 29(j) and 29(k) of SL 2014-120 concerning annual reporting requirements by regulatory authorities concerning the informal review process for reviewing engineering work as specified. Effective July 1, 2017.

Section 4.10

Amends GS 143B-279.8(e) to require a report from the commissions specified regarding the progress of the Coastal Habitat Protection Plans only when significant revisions have been made to those plans (previously required each Commission to report annually regarding the plan). Also repeals GS 143B-279.8(f). which required an additional report from the Secretary of Environmental Quality concerning the Coastal Habitat Protection Plan upon making substantial revisions.

Section 4.11

Amends GS 143-215.3A(c) concerning required reporting from the Department of Environmental Quality (DEQ) to the Environmental Review Commission (ERC) and the Fiscal Research Division about environmental permitting programs, reducing the reporting to only on or before January 1 of each even-numbered year (was, November of each year).  Also adds language that requires this report to be submitted with the report required in GS 143B-279.17, concerning permit processing times. 

Amends GS 143B-279.17, concerning reporting on permit processing times for the One-Stop for Certain Environmental Permits Program and the Express Permit and Certification Reviews, reducing the reporting requirement to only on or before January 1 of each even-numbered year (was, by March of each year). Adds conforming language reflecting the above requirement that this report be submitted with that required in GS 143-215.3A(c). 

Provides that the first joint report is to be submitted no later than January 1, 2018.

Section 4.12

Amends GS 143B-282(b) and GS 143-215.1(h), both concerning reporting requirements of the Environmental Management Commission (EMC) (specifically concerning the operation and activities of the EMC as well as information on the modification of existing permits as specified), now providing that the specified reports shall be submitted on an annual basis, by January 1 of each year (was, on quarterly basis). Further provides that the required reports are to be submitted jointly, with the first combined report to be submitted to the ERC no later than January 1, 2018.

Section 4.13

Amends the following statutes concerning reporting requirements: GS 130A-309.140(a)(concerning recycling of discarded computers and televisions), GS 130A-310.40 (concerning evaluation of the Brownfields Property Reuse Act), GS 130A-310.10(a) (concerning the Inactive Hazardous Waste Response Act), GS 143-215.104U(a) (concerning the Dry-Cleaning Solvent Cleanup Act); and GS 130A-294(i) (concerning the implementation and cost of the hazardous waste management program),  deleting the reporting requirements and replacing them with language that requires the same information and reports to be included and submitted with the annual solid waste management report required to be submitted by the DEQ on or before May 1 of each year, pursuant to GS 130A-309.06(c). Amends GS 130A-309.06(c) to add and include all of the above reports and information into the annual report on the status of solid waste management submitted by the DEQ to the ERC and the Fiscal Research Division. Provides that the first combined report as provided above will be submitted to the ERC and the Fiscal Research Division no later than May 1, 2017. Makes clarifying and technical changes.

Section 4.14

Amends both GS 113A-67 (concerning reporting of the implementation of the Sedimentation Pollution Control Act of 1973) and GS 143-214.7(e) (concerning  reporting on stormwater control programs) to require the specified reports to be submitted together to the ERC. Also provides that the report in GS 143-214.7(e) is to be submitted by the DEQ (previously, the NC Environmental Management Commission). Requires the first combined report to be submitted to the ERC no later than October 1, 2017.

Section 4.15

Repeals GS 143-355(n) and GS 143-355(o)(9), which respectively included requirements to report on the development of a State water supply plan and a basinwide hydrologic model.  These requirements are now found in newly enacted GS 143-355(p), which directs the DEQ to report to the ERC, no later than November 1 of each year, concerning the development of a State water supply plan and a basinwide hydrologic model. Further directs the DEQ to submit this report with the report on basinwide water quality management plans required pursuant to GS 143-215.8B(d) as a single report.  Amends GS 143-215.8B(d), making conforming changes reflecting  the joint reporting requirements above.  Requires the first combined report to be submitted to the ERC no later than November 1, 2017.

Section 4.16

Amends GS 159G-26(a) (reporting requirements  concerning the Water Infrastructure Fund) and GS 159G-72 (reporting of State Water Infrastructure Authority findings ) to combine the required reports into one report to be submitted by November 1 of each year. The report is to be submitted to the ERC, the Joint Legislative Oversight Committee on Agricultural and Natural and Economic Resources, and the Fiscal Research Division. Previously required the State Water Infrastructure Authority to submit the report to the Senate Appropriations Committee on Natural and Economic Resources and the House of Representatives Appropriations Subcommittee on Natural and Economic Resources; these requirements have now been deleted. Requires the first combined report to be submitted no later than November 1, 2017. Makes clarifying and technical changes.

Section 4.17

Amends GS 106-850(e) and GS 106-860(e) (both concerning reporting requirements of the Soil and Water Conservation Commission, either for the Agriculture Cost Share Program or the Community Conservation Assistance Program) to require that the reports be submitted together as one report, no later than January 31 of each year. Also amends GS 139-60(d) (concerning the Agricultural Water Resources Assistance Program) to conform all of its reporting requirements to those of GS 106-850(e) (previously, was not required to submit report to the Fiscal Research Division).  Further requires that the first combined report to the ERC and the Fiscal Research Division is to be made no later than January 31, 2018. Makes technical changes.

Section 4.18

Amends GS 113A-115.1(i) concerning  required reports of the Coastal Resources Commission in regards to the terminal groins pilot project, providing that a report on the implementation of the project must be submitted to the ERC by September 1, 2017, and then every five years after that (previously required submittal of the report every year).

Section 4.19

Amends GS 143B-135.48(d) concerning required reports of the Department of Natural and Cultural Resources regarding the Parks System Plan, providing that the report must be submitted to the ERC, the Joint Legislative Oversight Committee on Agricultural and Natural and Economic Resources, and the Fiscal Research Division no later than October 1, 2017, and then every five years after that that (previously required submission of the report every year).  Also deletes requirement that the report also be submitted to the Senate and House of Representatives appropriations committees that have jurisdiction over natural and cultural resources.  Makes conforming changes.

Section 4.20 to 4.22

Amends reporting requirements found in Section 15.6 of SL 1999-237 (concerning funds used from the Superfund),  GS 87-98(e) (concerning expenditures from the Bernard Allen Emergency Drinking Water Fund), and GS 143B-135.56(f) (concerning  allocations from the Recreation Trust Fund), deleting various reporting requirements and now providing that the required reports in Section 15.6 of SL 1999-237 be submitted only to the Joint Legislative Oversight Committee on Agricultural and Natural and Economic Resources; those in GS 87-98(e) be submitted to the Joint Legislative Oversight Committee on Agricultural and Natural and Economic Resources and the Fiscal Research Division; and those in GS 143B-135.56(f) to the Joint Legislative Oversight Committee on Agricultural and Natural and Economic Resources, the Fiscal Research Division, and the ERC.

Part V.

Section 5.1

Includes a severability clause

Section 5.2

Unless otherwise indicated, effective when the act becomes law.

Amends the exemption for the city of Wilson or a joint agency providing communication services to Wilson, from the provisions regarding requirements for a city providing communications service as of January 1, 2010, in GS 160A-340.1, 160A-340.3, 160A-340.4, 160A-340.5, and 160A-340.6. Exempts the city of Wilson from the requirements in the stated provisions, provided the city or joint agency limits the provision of communications service to (1) the county limits of Wilson County, including the incorporated areas within the county; (2) the municipality of Pinetops; and (3) any service connection located within specified boundaries, as provided by the act (previously, the service area included the county limits of Wilson County).

Requires the Division of Purchase and Contract in the Department of Administration, in consultation with the Fiscal Research Division and others determined to have special training or knowledge of the bidding and awarding of public contracts, to study the validity of the Comprehensive Agreement for the I-77 HOT Lanes project. Requires the Division to report its findings to the General Assembly by April 1, 2017.

Enacts new GS 14-362.4 requiring a person who owns, has custody of, or maintains 10 or more female dogs over six months of age that are capable of reproduction and kept primarily for purposes of breeding and selling the offspring as pets to meet 12 specified standards of care including daily exercise, appropriate veterinary care, primary enclosures that meet specified requirements, and protection from adverse or extreme weather. Requires that the facilities and primary enclosures be kept clean and free from debris and odor. Makes violations a Class 3 misdemeanor punishable by a fine of no less than $25 per animal and no more than $1,000 unless the person has previously pled guilty or nolo contendere to, or been found guilty of, a violation of the statute, in which case the violation is a Class 1 misdemeanor. Exempts kennels or boarding facilities where the majority of the dogs are (1) bred or trained primarily for hunting, sporting, field trials, or show; (2) being maintained for hunting, sporting, field trials, or show; or (3) kept primarily for purposes other than the sale of offspring as pets. Specifies issues that the statute does not address.

Includes a severability clause.

Applies to offenses committed on or after December 1, 2017.

Prohibits the Department of Transportation (DOT) from completing the reductions through reorganization and reductions in force required under SL 2016-94, Section 35.22(a)(2) and (a)(3) until DOT reports by March 1, 2017, to the chairs of the House of Representatives Committee on Transportation Appropriations and the Senate Appropriations Committee on Department of Transportation, on the amount of cost savings that may be achieved from the reductions through reorganization and reductions in force.

Amends GS 115C-301(c) to prohibit the average class size for kindergarten through third grade from exceeding the funded allotment ratio of teachers to students in kindergarten through third grade by no more than three students (was, must not exceed the funded allotment ratio). Prohibits the size of an individual class in kindergarten through third grade, at the end of the second school month and for the remainder of the school year, from exceeding the allotment ratio by more than six (was, three) students. 

Applies beginning with the 2017-18 school year.

Enacts new GS 103-15, as the title indicates.

Part I makes the following changes to the powers and duties of the Superintendent, the Department of Public Instruction, and the State Board of Education. Effective January 1, 2017, amends GS 115C-11 to authorize the Superintendent of Public Instruction (Superintendent) to appoint two high school students enrolled in public schools as advisors to the State Board of Education (Board); previously, authorized the Governor). Clarifies language for staggered appointments of the student advisors. Authorizes the Superintendent (previously, the Governor) to appoint a superintendent of a local school administrative unit as an advisor to the Board. Provides that current student advisors and local superintendent advisor members of the Board are to serve the remainder of their terms as of the effective date of the act, and as terms expire or vacancies occur, the Superintendent is to appoint advisor members under the statute as amended by the act. Adds a new subsection to require the Superintendent to provide technical and administrative assistance to the Board through the Department of Public Instruction (DPI). Amends GS 115C-12 to require the Board to establish all needed rules and regulations for the system of free public schools. Makes conforming changes. Requires the Superintendent to administer all needed rules and regulations adopted by the Board through the DPI. Amends GS 115C-19 to establish the Superintendent as an elected officer and Council of State member and require the Superintendent to carry out the duties of GS 115C-21 as the administrative head of DPI. Eliminates language subjecting the Superintendent to the direction, control, and approval of the Board. Makes conforming changes to GS 143-745(a)(1), GS 143A-44.1, GS 143A-44.2, and GS 143A-44.3.

Effective January 1, 2017, amends GS 115C-21, which sets out the powers and duties of the Superintendent, by eliminating language subjecting the Superintendent to the direction, control, and approval of the Board throughout the statute. Adds to the Superintendent's powers the authority to administer funds appropriated for the operation of DPI and enter contracts for the operations of DPI. Places all appointments of administrative and supervisory personnel to the staff of DPI, including staff serving the Board, under the control and management of the Superintendent, who may terminate these appointments as provided under GS Chapter 126, the North Carolina Human Resources Act (previously, appointments were subject to the approval of the Board). Places all matters relating to the direct supervision and administration of the public school system under the Superintendent's direction and control (previously, matters as the Board delegates to the Superintendent). Provides that the Superintendent is to create and administer special funds within DPI to manage funds received as grants from nongovernmental sources in support of public education (previously, the fund was transferred to the Board and administered by the Board). Adds to the powers and duties of the Superintendent the duty to administer all needed rules and regulations established by the Board, through DPI, and the authority to direct and control all matters relating to the provision of staff services and support to the Board, including implementation of federal programs on behalf of the Board. Makes conforming changes. Adds the duty to administer funds appropriated for the operations of the Board and for aid to local school administrative units. 

Effective January 1, 2017, amends GS 115C-408(a) to direct the Superintendent to administer any available educational funds through DPI in accordance with all needed rules and regulations adopted by the Board. Amends GS 115C-410 to authorize the Board to adopt all needed rules and regulations related to the creation and administration of special funds within DPI to manage funds received as grants from nongovernmental sources. Authorizes DPI to create and administer those special funds and accept, receive, use, or reallocate, as specified. 

Effective when the act becomes law, amends GS 126-5(d), which exempts certain Cabinet Department positions from the North Carolina Human Resources Act, by reducing the number of positions the Governor may designate as exempt positions from the specified departments and offices from 1,500 to 300. Removes the Office of State Budget and Management and the Office of State Human Resources from the specified departments and offices from which the Governor may designate as exempted positions. Increases the number of exempt policymaking positions in each department headed by an elected department head, as specified, from the current limit of 20, to 25 exempt positions, or from 1% to 2% of the total number of full-time positions in the department, whichever is greater. Makes conforming changes to exempt managerial positions. Exempts DPI from the above limitations, and instead provides that the number of exempt policymaking positions designated by the Board is limited to 70 exempt policymaking positions or 2% of the total number of full-time positions in the department, whichever is greater. Makes conforming changes to exempt managerial positions designated by DPI. Adds new subsubsection to deem an employee occupying a position that is designated exempt and later made subject to the Human Resources Act a career State employee under GS 126-1.1(a) upon the effective date of the change in designation if the employee held the permanent position for the immediate 12 preceding months.

Effective January 1, 2017, again amends GS 126-5(d) to add the Superintendent to the specified heads of departments who may designate exempt positions in Council of State Departments and Offices. Removes the Board's authority to designate exempt positions and makes conforming changes. Repeals GS 14-234(d6), which exempts employment contracts between the Board and its chief executive office from the statute (Public officers or employees benefiting from public contracts; exceptions). Amends GS 115C-75.5(4) to provide that the superintendent of the Achievement School District (ASD) is appointed by the Superintendent (previously, by the Board). Amends GS 115C-75.6 to place the ASD under the administration of the Board and the Superintendent (previously, only under the Board). Makes conforming changes. Requires the Superintendent to report to the Joint Legislative Education Oversight Committee on ASD operations by January 15 annually. Amends GS 115C-150.11 to place the administration of the Governor Morehead School for the Blind, the Eastern North Carolina School for the Deaf, and the North Carolina School for the Deaf with the Superintendent. Changes the membership of the North Carolina Charter School Advisory Board by transferring three members appointed by the Governor to instead be appointed by the General Assembly and the State Board of Education. Provides that the Advisory Board is to elect a chair annually (previously, Governor appointed). Directs that the executive director of the Office of Charter Schools is to be appointed by the Superintendent (previously, the Board). Makes conforming changes. Provides that current members serving the Advisory Board are to serve the remainder of their terms, and as terms expire and vacancies occur, the Superintendent is to appoint members pursuant to the statute as amended by the act. Provides that if a vacancy occurs in a Governor-appointed seat, the Board is to fill the vacancy, and upon the expiration of that term, the member is to be appointed pursuant to the statute, as amended.

Adds the Superintendent to the following immunity statutes, and expands the immunity to members of the Board, individually and collectively: GS 115C-218.20(b), GS 115C-238.73(g), GS 115C-332(g), GS 115C-333(e), GS 115C-333.1(g), GS 115C-390.3(c), GS 116-239.12(g), and GS 143B-146.16(g). Places the approval of the erection of school buildings with the School Planning Division of DPI (previously, the Board). Makes conforming changes in GS 115C-521. Amends GS 115C-535 to place the authority to establish a division to manage and operate an insurance system for public school property with the Superintendent (previously, the Board). Amends Section 8.37 of SL 2015-241 (2015 Appropriations Act), as amended, regarding budget reductions in DPI to direct the Superintendent, rather than the Board, to implement the budget reductions, as specified. Requires the Board to revise, as necessary, any of its rules and regulations to comply with Part I of the act by May 15, 2017. Directs DPI to review all state laws and rules and regulations governing the public school system to ensure compliance with the intent of act to restore authority to the Superintendent. Requires DPI to report to the 2017 General Assembly on the results of its review by April 15, 2017. Effective January 1, 2017.

Part II modifies appointments to the Boards of Trustees of constituent institutions of the University of North Carolina by amending GS 116-31 to repeal the Governor’s authority to appoint four members of the Boards of Trustees of each institution and establishing four appointments by the General Assembly (two upon recommendation of the Speaker and two upon recommendation of the President Pro Tempore) to the Boards of Trustees of each institution.  GS 116-233 is amended in similar fashion for appointments to the Board of Trustees of the North Carolina School of Science and Mathematics by repealing the Governor’s authority to appoint two members of the Board and increasing the members appointed by the General Assembly by two, bringing the total members appointed by the General Assembly to six (three upon the recommendation of the Speaker and three upon the recommendation of the President Pro Tempore).

Part III amends GS 143B-9 by establishing a new requirement that the Governor’s appointees as heads of principal state departments (cabinet secretaries) be confirmed by the Senate. The Governor is required to submit the names of the nominees to the President of the Senate, and the appointment is subject to confirmation by the Senate unless confirmation is waived by act of the General Assembly or a vacancy in office occurs when the General Assembly is not in regular session.  If an individual is appointed to fill a vacancy while the General Assembly is not in regular session, the individual may serve for no longer that the earlier of (1) the date on which the Senate adopts a resolution disapproving the nomination, or (2) the date on which General Assembly adjourns for a period of longer than 30 days without the Senate approving the nomination.

Part IV amends Section 36.19A(a) of S.L. 2016-94 (the Appropriations Act of 2016) to require the Office of State Human Resources to begin implementation of the Statewide Compensation System Project by December 31, 2016 (previously, the Office was directed to begin implementation after February 1, 2017).

 Part V contains a severability clause.

States General Assembly findings about smart grid and smart meter technologies.

Enacts new GS 62-351 establishing the Electronic Usage Data Freedom Act to establish standards governing access to and use of electricity usage data by electric utilities, customers, and third parties. Sets out terms and definitions for use in the statute. Requires an electric utility and any third party that receives electric usage data to keep customer information confidential. Requires an electric utility to, upon request, provide a customer, or a designated third party, with: (1)  electronic access to the customer's current standard electric usage data and to historical standard electric usage data for a period of not less than 24 months, provided for free or (2) the customer's nonstandard electric usage data that is available to that electric utility; allows a fee to be charged to a third party for this information. Sets out requirements that must be met in providing aggregate electric usage data to third parties.