The Daily Bulletin: 2017-03-31

The Daily Bulletin: 2017-03-31

PUBLIC/HOUSE BILLS
H 547 (2017-2018) CUMBERLAND 12C SUPERIOR COURT DISTRICTS. Filed Mar 30 2017, AN ACT TO REQUIRE CANDIDATES FOR DISTRICT 12C OF THE SUPERIOR COURT IN CUMBERLAND COUNTY TO DESIGNATE THE SEAT TO WHICH THAT CANDIDATE SEEKS ELECTION.

Amends GS 7A-41(b)(14), which delineates superior court district 12C in Cumberland County, by adding that each candidate must file a written statement designating the seat to which the candidate seeks election, with the State Board of Election, at the time of filing notice of candidacy. Specifies that votes cast for a candidate are effective only for election to the seat for which the candidate has given notice of candidacy. Effective January 1, 2019, and requires that elections in 2018 and thereafter be held accordingly.

Intro. by Szoka.Cumberland, GS 7A

The Daily Bulletin: 2017-03-31

PUBLIC/SENATE BILLS
S 546 (2017-2018) ACCURACY/MEDICAID ELIGIBILITY DETERMINATIONS. Filed Mar 30 2017, AN ACT TO SUPPORT IMPROVEMENT IN THE ACCURACY OF MEDICAID ELIGIBILITY DETERMINATIONS.

Amends GS 108A-25(b) to provide that the program of medical assistance established in that statute shall be administered by the Department of Health and Human Services (DHHS) (currently, by county departments of social services). Provides that Medicaid eligibility administration may be delegated to the county departments of social services.

Directs DHHS to report by November 1, 2017, to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice (Oversight Committee) on progress regarding the accuracy of county Medicaid eligibility determinations. Provides requirements for the report's contents.

Amends GS Chapter 108A, Article 2 (Programs of Public Assistance) to add new Part 11 (Medicaid Eligibility Determinations Accuracy and Quality Assurance). Provides that the part applies to federally recognized Native American tribes that have assumed responsibility for the Medicaid program as if they were county departments of social services.

Directs the DHHS Division of Central Management and Support to annually audit, beginning January 1, 2019, all county departments of social services for compliance with the Medicaid eligibility determination accuracy standards adopted under new GS 108A-70.47 and the quality assurance standards under new GS 108A-70.48.

Directs DHHS to adopt Medicaid eligibility determination accuracy standards and quality assurance minimum standards, by rule, in consultation with the State Auditor, and to require county departments of social services to comply with them.

Directs DHHS and any county department of social services that fails to meet the standards to enter into a joint corrective action plan to improve the accurate processing of applications. Provides requirements for the joint corrective action plan, including the length of the plan and performance requirements that constitute successful completion of the plan. Provides for DHHS to temporarily assume Medicaid eligibility administration for any county department of social services that fails to meet the performance requirements under the joint corrective action plan, upon 90 days' notice of DHHS's intent to do so. Provides for DHHS responsibilities regarding Medicaid eligibility in the county during temporary assumption of Medicaid eligibility administration, the county's continued financial obligations during that time, and for DHHS to work with the county department of social services to develop a plan for the county department to resume performing Medicaid eligibility administration more accurately. Provides for termination of DHHS's temporary assumption of Medicaid eligibility administration upon determining that the county department can perform the administration accurately and with proper quality assurance.

Directs DHHS to submit a report by March 1, 2020, and annually thereafter, to the Oversight Committee, the Fiscal Research Division, and the State Auditor. Provides six requirements for the report's contents, regarding county departments of social services and compliance with the accuracy and quality assurance standards.

Amends GS 150B-23(a5) to make a conforming change.

Directs DHHS to collaborate with the State Auditor to develop a plan of implementation for the annual audits required above. Provides six requirements for the plan, including an audit schedule and methodology. Directs DHHS to submit a copy of the plan to the Oversight Committee with any proposed recommendations, suggested legislation, or funding requests.

Authorizes DHHS to adopt and amend rules to implement new GS Chapter 108A, Article 2, Part 11, and accompanying directives.

Enacts new GS 108A-25.1A (Responsibility for errors). Provides that county departments of social services are financially responsible for the State and federal shares of erroneous issuance of Medicaid benefits and claim payments that result from the county's action requiring payment of Medicaid claims for ineligible individuals, dates, or amounts. Provides that the county is not financially responsible for errors attributable solely to the State. Applies to errors identified on or after the date the bill becomes law.

Directs DHHS to design and implement statewide a training and certification program for caseworkers using NC Families Accessing Services Through Technology (NC FAST), and to require all caseworkers inputting data or making determinations for eligibility for State programs through NC FAST to be certified within 18 months of the training's eligibility. Directs DHHS to include verification of certification compliance in the audits required under new GS 108A-70.46. Directs DHHS to submit a report on the training and certification program by March 1, 2018, to the Oversight Committee, the Joint Legislative Oversight Committee on Health and Human Services, and the fiscal Research Division. Provides requirements for the report.

Intro. by Hise, B. Jackson, Tucker.GS 108A, GS 150B
S 548 (2017-2018) STRENGTHEN HUMAN TRAFFICKING LAWS/STUDIES. Filed Mar 30 2017, AN ACT STRENGTHENING HUMAN TRAFFICKING LAWS, AUTHORIZING THE NORTH CAROLINA BOARD OF MASSAGE AND BODYWORK THERAPY TO REGULATE MASSAGE AND BODYWORK THERAPY ESTABLISHMENTS, REQUIRING MASSAGE AND BODYWORK THERAPISTS TO OBTAIN A STATEWIDE PRIVILEGE LICENSE, AND AUTHORIZING THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO STUDY WAYS TO IDENTIFY AND PROTECT VICTIMS OF HUMAN TRAFFICKING.

Amends GS 14-43.11 to increase the criminal punishment for a human trafficking offense where the victim of the offense is an adult to a Class C felony (currently Class F felony), and where the victim of the offense is a minor to a Class B1 felony (currently Class C felony).

Enacts GS 14-202.13, requiring an adult establishment, as defined in GS 14-202.10, to prominently display on the premises a public awareness sign created and provided by the North Carolina Trafficking Commission that contains the National Human Trafficking Resource hotline information. GS 14-202.10 defines adult establishment as an adult bookstore, adult motion picture theatre, adult mini motion picture theatre, adult live entertainment business, or massage business, as those terms are defined in the statute. Requires the sign to be in a place that is clearly conspicuous and visible to employees and the public.

Amends GS 18B-1003 to add a new subsection (c1) requiring all ABC permitees to prominently display on the premises a public awareness sign created and provided by the North Carolina Human Trafficking Commission that contains the National Human Trafficking Resource hotline information. Requires the sign to be in a place that is clearly conspicuous and visible to employees and the public.

Enacts GS 19-8.4, requiring the owner, operator, or agent in charge of a business described in GS 19-1.2 to prominently display on the premises a public awareness sign created and provided by the North Carolina Human Trafficking Commission that contains the National Human Trafficking Resource hotline information. GS 19-1.2 describes six places wherein obscene or lewd matter or other conduct prohibited by GS 19-1(a) is involved. Requires the sign to be in a place that is clearly conspicuous and visible to employees and the public.

Current GS 90-621 provides that the purpose of Article 36 in GS 90 is to ensure the protection of the health, safety, and welfare of NC citizens receiving massage and bodywork therapy services. Adds another way to achieve this purpose is by establishing standards for establishments that provide massage and bodywork therapy services. Provides that mandatory licensure of those who own or operate massage and bodywork therapy establishments assures the public that these establishments are legal, professional services and employ licensed massage and bodywork therapists who have satisfactorily met the standards of the profession and continue to meet both the ethical and competency goals of the profession.  Makes organizational and technical changes.

Amends GS 90-622, setting out the definitions for Article 36, to add the terms business name, owner, and sole practitioner. Adds the term massage and bodywork therapy establishment, and defines the term to mean any duly licensed site or premises in which massage and bodywork therapy is practiced. Provides that the term does not include: (1) on-site massage performed at the location of the customer; (2) stand-alone devices such as chairs that are operated by the customer; (3) establishments located within the confines of a hospital, nursing home, or other similar establishment or facility licensed or otherwise regulated by the Department of Health and Human Services (DHHS); (4) massage and bodywork therapy provided by a sole practitioner; or (5) a student clinic operated by a NC Board of Massage and Bodywork Therapy Board‑approved school or a massage and bodywork therapy program offered by community colleges in North Carolina that are accredited by the Southern Association of Colleges and Schools, or massage and bodywork therapy programs offered by a degree or diploma-granting college or university accredited by any accrediting agency that is recognized by the US Department of Education and licensed by the NC Community College System or the UNC Board of Governors. Makes organizational changes to the definitions statute.

Renames GS 90-623 to License to practice required (currently, License required).

Renames GS 90-624 to Activities not requiring a license to practice (currently, Exemptions). 

Makes organizational and clarifying changes to GS 90-626, which sets forth the powers and duties of the NC Board of Massage and Bodywork Therapy (Board). Requires the Board to adopt, amend, or repeal any rules necessary to carry out the duties and responsibilities of the Board, including rules related to massage and bodywork therapy establishments (previously, grouped with a provision for rules related to the approval of massage and bodywork therapy schools, continuing education providers, examinations for licensure, and the practice of advanced techniques that requires any rules adopted or amended to take into account the educational standards of national bodywork and massage therapy associations and professional organizations).

Amends GS 90-628(b) to clarify that the specified fees the Board is authorized to impose under the statute are for a license to practice massage and bodywork therapy. 

Amends GS 90-629, setting forth the requirements for licensure to practice massage and bodywork therapy, to add a new requirement that the applicant demonstrates satisfactory proof of proficiency in the English language. 

Amends GS 90-629.1 to require all applicants for licensure to practice massage therapy and bodywork therapy or to operate a massage and bodywork therapy establishment to consent to a criminal history record check as specified (previously did not require operator applicants to consent to a criminal history check). Makes conforming change to the statute's title.

Renames GS 90-630.1 to Licensure to practice by endorsement (currently, Licensure by endorsement).

Amends GS 90-360.5(a) to require the license to practice and the license to operate a massage and bodywork therapy establishment under Article 36 to be renewed every two years (currently does not include operators' license). Clarifies that the provisions concerning renewal set forth in existing subsection (b) and (c) apply to the renewal of an initial and subsequent renewals of a license to practice. Makes conforming changes to the statute's title.

Enacts GS 90-632.10 to direct the Board to license massage and bodywork therapy establishments in North Carolina. Expressly prohibits any individual, association, partnership, corporation, or other entity from opening, operating, or advertising a massage and bodywork establishment in North Carolina unless it has first been licensed by the Board. Directs the Board to maintain a list of licensed massage and bodywork therapy establishments operating pursuant to Article 36.

Enacts GS 90-632.11, detailing the requirements of a massage and bodywork therapy establishment licensure application that must be submitted to the Board in order to operate a message and bodywork therapy establishment in the State. The nine application requirements include: (1) proof of property damage and bodily injury liability insurance coverage in the name of the owner or, if operated under a business name, the name of the owner and the business; (2) prior licensure and disciplinary history; and (3) proof of good moral character as determined by the Board. Directs that the application is to be submitted in the name of the owner(s) of the establishment, or if the owner is a corporation, the name of the corporation and signed by a corporate representative. Directs any advertisement by the massage and bodywork therapy establishment under a name different than the owner to include the establishment's business name and comply with 21 NCAC 30 .0404. 

Directs the Board to establish rules for the licensure of massage and bodywork therapy establishments and details seven requirements those rules are to include. Includes (1) requirements for adequate, safe, and sanitary facilities; (2) requirements for the retention of client and ownership records; and (3) requirements for initial and periodic inspections of the establishments.

Delineates the fees the Board can impose for massage and bodywork therapy establishment licensure, including $20 for the application for a license, $150 for an initial license, and $100 for license renewal. Details the forms and method of payment for the fees.

Enacts GS 90-632.15, authorizing the Board to deny, suspend, revoke, discipline, or refuse to approve a massage and bodywork therapy establishment for any of the ten specified reasons, which include operating the establishment without a license or engaging in conduct that could result in harm or injury to the public. Establishes that a refusal to issue, refusal to renew, or suspension or revocation of an establishment's license must be made in accordance with GS Chapter 150B.

Enacts GS 90-632.16, prohibiting a massage and bodywork therapy establishment from employing or contracting with any person in the State to provide massage and bodywork therapy who is not currently licensed to practice in this State in accordance with Article 36. 

Enacts GS 90-632.17, prohibiting sexual activity by any person(s) in any massage and bodywork therapy establishment. Prohibits an owner from engaging in or permitting any person(s) to engage in sexual activity in the owner's establishment, or use the owner's establishment to make arrangements to engage in sexual activity in any other place.

Enacts GS 90-632.18, authorizing the Board to use the enforcement and injunctive relief under GS 90-634 and assess penalties and disciplinary costs as provided under GS 90-634.1 to address violations of GS 90-632.10 through GS 632.17, as enacted above, any rules pursuant to GS 90-632.13, or any other laws or rules applicable to the operation of a massage and bodywork therapy establishment. 

Amends GS 90-634 to add new subsections (b3) and (b4), establishing that it is a Class 1 misdemeanor for any person, individual, association, partnership, corporation, or other entity to: (1) employ, hire, engage, or otherwise contract with a person who is not licensed or exempted under Article 36 to provide massage and bodywork therapy services to the public; (2) aid and abet any person not licensed or exempted under Article 36 in the practice of massage and bodywork therapy; (3) advertise, represent, or hold out any person not licensed or exempted under Article 36 to others as a massage and bodywork therapist; and (4) describe the practice of any person not licensed or exempted under Article 36 or use any title descriptive of any branch of massage and bodywork therapy to reference any such person in violation of GS 90‑623.

Provides that all of the above amendments to statutes in and enactments of statutes to GS Chapter 90 are effective October 1, 2017.

Enacts GS 131E-84.1, requiring each hospital licensed under Article 5 of GS Chapter 131E to prominently display in its emergency room or emergency department a public awareness sign created and provided by the North Carolina Human Trafficking Commission that contains the National Human Trafficking Resource hotline information. Requires the sign to be in a place clearly conspicuous and visible to employees and the public.

Amends GS 143B-348 to direct the Secretary of Transportation to require every transportation station, rest area, and welcome center in the State to prominently display a public awareness sign created and provided by the North Carolina Human Trafficking Commission that contains the National Human Trafficking Resource hotline information. Requires the sign to be in a place that is clearly conspicuous and visible to employees and the public. Makes organizational changes to the statute.

Enacts GS 143B-431.3 to direct the Secretary of Commerce to require that every Joblink or other center under its authority that offers employment and training services to the public to prominently display a public awareness sign created and provided by the North Carolina Human Trafficking Commission that contains the National Human Trafficking Resource hotline information. Requires the sign to be in a place that is clearly conspicuous and visible to employees and the public. 

Directs DHHS, in consultation with the NC Human Trafficking Commission, to study the feasibility of training health care providers, emergency medical providers, and relevant first responders in human trafficking and identification and response and preventative tools and methods.  Directs DHHS to report its findings and recommendations to the Joint Legislative Oversight Committee on Health and Human Service, the Human Trafficking Commission, and the Governor by February 1, 2018.

Directs the State Board of Education, in consultation with the NC Human Trafficking Commission, to develop a policy requiring, at a minimum, that local education agencies and charter schools provide evidence‑based or evidence‑informed training at least once every three years to educators and support personnel about sexual abuse and sex trafficking of minors, including identification, response, and preventative tools and methods. Details the training requirements the policy must include, including training on mandatory reporting laws provided in GS Chapter 7B. Requires the training to be objective and based upon peer-reviewed scientific research accepted by professionals and credentialed experts in the field of sexual health education. Requires the materials used in training to be age-appropriate if intended for student use. Directs the State Board of Education to report to the Joint Legislative Education Oversight Committee on the policy developed no later than February 1, 2018.

Intro. by Randleman, Daniel, Brock.STUDY, GS 14, GS 18B, GS 19, GS 90, GS 131E, GS 143B
S 549 (2017-2018) JUVENILE REINVESTMENT ACT. Filed Mar 30 2017, AN ACT TO RAISE THE AGE OF JUVENILE JURISDICTION TO INCLUDE SIXTEEN- AND SEVENTEEN-YEAR-OLDS WHO HAVE COMMITTED MISDEMEANOR OFFENSES; TO PROVIDE A VICTIM THE OPPORTUNITY TO REQUEST REVIEW OF DECISION NOT TO FILE A PETITION; TO INCREASE THE INFORMATION AVAILABLE ON JUVENILES TO LAW ENFORCEMENT AND FOR COURT PROCEEDINGS; TO AUTHORIZE SCHOOL-JUSTICE PARTNERSHIPS STATEWIDE TO REDUCE SCHOOL-BASED REFERRALS TO THE JUVENILE COURT SYSTEM; TO REQUIRE REGULAR JUVENILE JUSTICE TRAINING FOR LAW ENFORCEMENT OFFICERS; AND TO ESTABLISH THE JUVENILE JURISDICTION ADVISORY COMMITTEE.

Part I.

Amends the definition of delinquent juvenile in GS 7B-1501(7) to add the term also includes any juvenile who, while less than 18 years of age but at least 16 years of age, commits a misdemeanor or infraction under State law or under an ordinance of local government, excluding violation of the motor vehicle laws, or who commits indirect contempt by a juvenile as defined in GS 5A-31. Currently, the term is defined as any juvenile who, while less than 16 years of age but at least 6 years of age, commits a crime or infraction under State law or under an ordinance of local government, including violation of the motor vehicle laws, or who commits indirect contempt by a juvenile as defined in GS 5A-31. Adds and defines the term victim to mean any individual or entity against whom a crime or infraction is alleged to have been committed by a juvenile based on reasonable grounds that the alleged facts are true. Specifies that for purposes of Article 17 of this Chapter, the term may also include a parent, guardian, or custodian of a victim under the age of 18 years.

Amends GS 7B-1601, which provides for jurisdiction of delinquent juveniles, to establish that when the district court obtains jurisdiction over a juvenile alleged to be delinquent for an offense committed while the juvenile was at least 16 years of age but less than 17 years of age, jurisdiction continues until terminated by an order of the court or until the juvenile reaches the age of 19 years. Further provides that if the offense was committed while the juvenile was at least 17 years of age, jurisdiction continues until terminated by order of the court or until the juvenile reaches the age of 20 years. Further provides that when delinquency proceedings for a juvenile alleged to be delinquent for an offense committed while the juvenile was at least 16 years of age but less than 17 years of age cannot be concluded before the juvenile reaches the age of 19 years, the court retains jurisdiction for the sole purpose of dismissing the petition. Provides that when a delinquency proceeding for a juvenile alleged to be delinquent for an offense committed while the juvenile was at least 17 years of age cannot be concluded before the juvenile reaches the age of 20 years, the court retains jurisdiction for the sole purpose of dismissing the petition. Makes clarifying changes to existing subsections (b) and (c) concerning jurisdiction over a juvenile and delinquency proceedings to clarify that those existing provisions pertain to a juvenile alleged to be delinquent for an offense committed prior to the juvenile reaching the age of 16 years. 

Provides that when the court has not obtained jurisdiction over a juvenile before the juvenile reaches the age of 18, for a felony and any related misdemeanors the juvenile allegedly committed on or after the juvenile's thirteenth birthday and prior to the juvenile's eighteenth birthday (was, sixteenth birthday), the court has jurisdiction for the sole purpose of conducting proceedings pursuant to Article 22 of GS Chapter 7B and either transferring the case to superior court for trial as an adult or dismissing the petition.

Amends GS 7B-1604(a) to establish that any juvenile, including a juvenile who is under the jurisdiction of the district court, who commits a criminal offense on or after the date the juvenile reaches the age of 18 years (currently, who commits a criminal offense on or after the juvenile's sixteenth birthday), is subject to prosecution as an adult.

Amends GS 7B-2200, concerning the transfer of jurisdiction of a juvenile to superior court, to limit the transfer of jurisdiction of a juvenile under this statute to when the juvenile was at least 13 years of age but less than 16 years of age (was, if the juvenile was 13 years of age or older) at the time the juvenile allegedly committed an offense that would be a felony if committed by an adult. 

Amends GS 7B-2506, which sets out alternatives the court exercising jurisdiction over a juvenile who has been adjudicated delinquent may use, to clarify that the options a judge can choose in subdivision (1) can be used in the case of any juvenile under the age of 18 years who needs more adequate care or supervision or who needs placement. Additionally, limits the alternative allowing a judge to excuse a juvenile from compliance with compulsory school attendance law when suitable alternative plans can be arranged to only allow the option if the juvenile is under the age of 16 years. 

Amends GS 7B-2507, concerning delinquency history levels, to establish and assign point levels for a juvenile's prior convictions that are to be added to the points assigned to each of the juvenile's prior adjudications or convictions and probation status to determine the delinquency history level of a delinquent juvenile. Assigns specified points for prior convictions based on the class of felony or misdemeanor, and includes points specifically for prior misdemeanor convictions for impaired driving, impaired driving in a commercial vehicle, and death by vehicle. Makes conforming changes. 

Amends GS 7B-2513, concerning commitment of a delinquent juvenile to the Division of Juvenile Justice (Division), to break down the existing language of subsection (a) into several subsections, and limit application of the existing term limits to a juvenile who committed the offense prior to reaching the age of 16 years. Additionally establishes that for an offense a juvenile committed while the juvenile was at least 16 years of age but less than 17 years of age, the term of commitment to the Division for placement in a youth development center cannot exceed the juvenile's nineteenth birthday. Provides that for an offense the juvenile committed while the juvenile was at least 17 years of age, the term of commitment cannot exceed the juvenile's twentieth birthday. 

Amends GS 7B-2515(a) to require the Division to notify the juvenile and the juvenile's parent, guardian, or custodian of the Division's intention not to release the juvenile who was committed before the juvenile reached the age of 16 years (previously did not specify the juvenile must be committed prior to reaching the age of 16 years) prior to the juvenile's eighteenth birthday, or if the Division determines the commitment should be continued beyond the maximum commitment period as set out in GS 7B-2516(a1) (as amended by this act; conforming change, was GS 7B-2513(a)).

Amends GS 7B-2603(b) to provide that pending release, a juvenile is to be detained pursuant to GS 7B-2204 (right to pretrial release, detention). Eliminates existing provisions concerning the detention of a juvenile pending release.

Makes conforming changes to GS 5A-31(a) (offense of contempt by a juvenile), GS 5A-34(b) (criminal and civil contempt applicable to specified minors), GS 14-316.1 (contributing to delinquency and neglect by parents and others), and GS 143B-805(6) (defining juvenile for use in provisions concerning the Division of Juvenile Justice). 

Adds to the duties of the Division of Juvenile Justice set out in GS 143B-806(b) the duty to provide for the transportation to and from any State or local juvenile facility of any person under the jurisdiction of the juvenile court for any purpose required by GS Chapter 7B or upon order of the court. 

Effective December 1, 2019, and applies to offenses committed on or after that date.

Part II.

Amends GS 7B-1703(c), requiring the juvenile court counselor to notify the complainant with the reasons for the counselor's decision not to file a juvenile petition upon evaluation of a complaint, to require the juvenile court counselor to also notify the victim, if the complainant is not the victim, immediately in writing with specific reasons for the counselor's decision, whether or not legal sufficiency was found, and whether the matter was closed or diverted and retained. Additionally requires the notice to include the victim's right to have the decision reviewed by the prosecutor. Makes conforming changes to include the victim's right to require review by the prosecutor and the prosecutor's duty to review the determination that the petition should not be filed under GS 7B-1704 and GS 7B-1705.

Effective July 1, 2017, applying to all complaints filed on or after that date.

Part III.

Amends GS 7B-3001 by adding to the items that must be included in a juvenile court counselor's record, to also include the juvenile's delinquency record and consultations with law enforcement that did not result in a filed complaint. Adds the requirement that, upon request, a juvenile court counselor share with a law enforcement officer sworn in this state any information from the counselor's record related to a juvenile's delinquency record or prior consultations with law enforcement. Prohibits a law enforcement officer from obtaining copies of any part of the record and requires shared information to be withheld from public inspection. Effective July 1, 2017.

By July 1, 2018, directs the Administrative Office of the Courts (AOC) to expand access to its automated electronic information management system for juvenile courts, JWise, to include prosecutors and attorneys representing juveniles in juvenile court proceedings. Limits this access to examining electronic records related to juvenile delinquency information. Prohibits other information in JWise, such as any records pertaining to abuse, neglect, and dependency or termination of parental rights, from being made available to a prosecutor or juvenile's attorney through JWise. Directs the AOC to develop a statewide search function for all users of the JWise computer system to improve tracking information of juvenile records by July 1, 2018.

Part IV.

Amends the duties of the Administrative Officer of the Courts by adding the duty to prescribe policies and procedures for chief district court judges to establish school-justice partnerships with local law enforcement agencies, local boards of education, and local school administrative units with the goal of reducing in-school arrests, out-of-school suspensions, and expulsions.

Part V.

Amends GS 17C-6 to amend the powers of the North Carolina Criminal Justice Education and Training Standards Commission (Commission) as follows. Adds to the standards that the Commission establishes for entry level employment as a criminal justice officer to also require education and training on juvenile justice matters that includes four specified components. Adds to the in-service training standards for criminal justice officers that the Commission develops to also require training on juvenile justice issues that must include the same four specified components. Also adds the duty of establishing minimum standards and levels of training for certification of instructors for the required juvenile justice training.

Amends GS 17E-4 to amend the powers of the North Carolina Sheriffs' Education and Training Standards Commission (Commission) as follows. Adds to the standards that the Commission establishes for entry level employment as an officer to also require training on juvenile justice matters that includes four specified components. Adds to standards that the Commission establishes for in-service training for justice officers to also require training on juvenile justice matters that includes four specified components. Also adds the duty of establishing minimum standards and levels of training for certification of instructors for the required juvenile justice training.

Requires that both of the above Commissions work with the Division of Adult Correction and Juvenile Justice of the Department of Public Safety in developing and implementing the required education and training.

Part VI.

Establishes the Juvenile Jurisdiction Advisory Committee (Committee) within the Division of Adult Correction and Juvenile Justice. Provides for the membership of the Committee, consisting of 21 members as specified. Requires appointments to the Committee to be made no later than October 1, 2017. Sets forth parameters for filling vacancies on the Committee and the provisions for Committee meetings. Requires the initial meeting of the Committee to be called on or before November 1, 2017. Requires cooperation by government agencies and directs the Committee to consult with appropriate State departments, agencies, and board representatives. Sets out the duties of the Committee, which include developing a specific plan for the implementation of any changes in the juvenile justice system that would be required in order to extend jurisdiction in delinquency matters and proceedings to include 16- and 17-year-old persons within the juvenile justice system. 

Directs the Committee to submit an interim report by April 1, 2018, to the General Assembly, with copies to the Joint Legislative Oversight Committee on Justice and Public Safety and to the Appropriation Committees on Justice and Public Safety of both houses. Requires the Committee to submit additional interim reports with updates on the planning steps completed annually by January 15. Directs a final report on the implementation of this act and the Committee's findings and recommendations by January 15, 2023, to the General Assembly and Governor. Terminates the Committee on February 1, 2023, or upon the filing of its final report, whichever occurs earlier. 

Provides that the Committee can apply for, receive, and accept grants of non-State funds or other contributions as appropriate to assist in the performance of its duties. 

Part VII.

Unless otherwise provided, the act is effective when it becomes law. Provides that prosecutions or delinquency proceedings initiated for offenses committed before any particular section of the act becomes effective are not abated or affected by the act and that the statutes that are in effect on the dates the offenses are committed remain applicable to those prosecutions.

Intro. by Randleman, Britt, Daniel.STUDY, GS 5A, GS 7A, GS 7B, GS 14, GS 17C, GS 17E, GS 143B
S 557 (2017-2018) ANNEXATION OF ENCLAVES. Filed Mar 30 2017, AN ACT TO ESTABLISH A PROCESS FOR THE ANNEXATION OF ENCLAVES THAT ARE ENTIRELY CONTAINED WITHIN THE PRIMARY CORPORATE LIMITS OF A MUNICIPALITY.

Enacts Part 7A, Annexation of Enclaves, to Article 4A of GS Chapter 160A, authorizing a municipal governing board to extend the municipal corporate limits to include any qualifying enclave as provided in new Part 7A.

Defines enclave to mean an unincorporated area of real property enclosed completely within and contiguously bounded on all sides by (1) the primary corporate boundaries of one or more incorporated municipalities or (2) the primary corporate boundaries of one or more incorporated municipalities and either (a) the boundary line of a State, county, or other unit of local government; (b) a military installation; (c) a State or national park or forest; (d) river, lake, pond, or other body of water; (e) a railroad or a public or private street, road, highway, or alley; or (f) a bona fide farm as defined under GS 153A‑340.

Sets qualifications for an enclave to be annexed under new Part 7A, providing that (1) the enclave cannot be a bona fide farm; (2) the enclave must be less than 60 acres in total land area, excluding acreage of any bona fide farm; and (3) the enclave must meet the qualifications of the statute for a period of at least three years from the effective date of annexation provided under new Part 7A.

Establishes that the statute does not prevent the owner(s) of a bona fide farm from consenting to voluntary annexation under Article 4A of GS Chapter 160A.

Directs a municipality exercising authority under new Part 7A to provide all municipal services, including water and sewer services, to the annexed enclave on substantially the same basis and in the same manner as those services are otherwise provided within the municipality. Directs these services to be provided by the municipality on the effective date of the annexation. Requires the municipality to prepare a report as described in GS 160A-58.53 (detailing five requirements for a report concerning the provisions of services to an area proposed to be annexed), setting forth how the municipality intends to make all of its services available on the effective date of annexation. Requires this report to be prepared prior to the public hearing that is required by GS 160A-58.68, set out below. 

Establishes that annexation under Part 7A must be by execution of an interlocal agreement as provided in Part 1 of Article 20 of GS Chapter 20. Directs that the interlocal agreement is to be between the governing boards of the annexing municipality and of the county or counties where the enclave lies. Details the declaration the municipality seeking to annex must adopt prior to entering into an interlocal agreement. Requires the declaration to describe the boundaries of the enclave proposed for annexation, the county or counties with whom the municipality intends to execute the agreement, and set the date for a public hearing. Requires the public hearing to be no less than 60 days and no more than 90 days following the passage of the declaration. Details the requirements of notice of the public hearing. Requires all property owners and residents of the enclave proposed to be annexed and all residents of the municipality to be given an opportunity to be heard. Authorizes the governing board to approve the report, or amend and approve the report, and enter into the interlocal agreement after ten days following the public hearing. Authorizes the board of commissioners of the county or counties where the enclave lies to approve the interlocal agreement after ten days following the public hearing, with or without an additional public hearing. Directs the interlocal agreement to be duly executed by the authorized official upon approval of all affected governing boards. 

Directs that the interlocal agreement is to be recorded as provided by GS 160A-58.61, and fixed with the effective date for annexation as June 30 next following the recording of the interlocal agreement. Provides that from and after the effective date, the territory and its citizens and property are subject to all debts and all laws, ordinances, and regulations in force in the municipality, and are entitled to the same privileges and benefits as other parts of the municipality. 

Allows a municipality considering the annexation of more than one enclave which are not adjacent to one another to untertake simultaneous proceedings for their annexations under authority of Part 7A.

Applies the appeal procedures of GS 160A-58.60 to annexations under Part 7A, with the entering into the interlocal agreement treated as adoption of the annexation ordinance. 

Directs the municipality to report to the Local Government Commission within 30 days after the effective date of annexation on whether all of the services required by GS 160A-57 were available on the effective date of the annexation. Directs the Local Government Commission to notify the municipality, if the Commission determines the services were not delivered in a timely manner, that it may not count any of the residents as part of the population of the municipality for the purpose of receiving State, federal, or county dollars distributed based on population until all of the services are provided.  Further, if the municipality failed to timely deliver either water or sewer services as provided in GS 160A-58.57, requires the municipality to stop any other annexations in progress and not begin any other annexation until the water and sewer services are provided.

Makes conforming changes to GS 160A-58.60 to provide for appeal to annexations under new Part 7A. Adds to the arguments, briefs, and evidence the court can receive to include those intending to show that the property does not qualify as an enclave under new GS 160A-58.66.

Makes conforming changes to GS 160A-58.61 to provide for the recordation of annexations under new Part 7A. 

Amends GS 160A-461 to add a new subsection authorizing an incorporated municipality in the State and any county to enter into an interlocal agreement extending the corporate limits of the municipality to include an enclave as provided in new Part 7A of Article 4A. Makes organizational changes.

Amends GS 160A-464 to add a new subsection detailing the requirements of an interlocal agreement extending the corporate limits of a municipality to include an enclave under new Part 7A of Article 4A. Requires the agreement to: (1) be executed by the officials authorized by the governing board; (2) contain six specifications concerning the enclave, the property owners, the provision of services, and the effective date of annexation; and (3) be recorded as provided by GS 160-58.69.

Intro. by Wells, Tucker.GS 160A
S 564 (2017-2018) JUVENILE JUSTICE REINVESTMENT ACT. Filed Mar 30 2017, AN ACT TO RAISE THE AGE OF JUVENILE JURISDICTION TO INCLUDE SIXTEEN- AND SEVENTEEN-YEAR-OLDS, EXCEPT IN THE CASE OF CERTAIN FELONIES; TO PROVIDE A VICTIM THE OPPORTUNITY TO REQUEST REVIEW OF DECISION NOT TO FILE A PETITION; TO INCREASE THE INFORMATION AVAILABLE ON JUVENILES TO LAW ENFORCEMENT AND FOR COURT PROCEEDINGS; TO AUTHORIZE SCHOOL-JUSTICE PARTNERSHIPS STATEWIDE TO REDUCE SCHOOL-BASED REFERRALS TO THE JUVENILE COURT SYSTEM; TO REQUIRE REGULAR JUVENILE JUSTICE TRAINING FOR LAW ENFORCEMENT OFFICERS; AND TO ESTABLISH THE JUVENILE JURISDICTION ADVISORY COMMITTEE.

Part I.

Amends the definition of delinquent juvenile in GS 7B-1501(7) to add the term also includes any juvenile who, while less than 18 years of age but at least 16 years of age, commits a crime or infraction under State law or under an ordinance of local government, excluding violation of the motor vehicle laws, or who commits indirect contempt by a juvenile as defined in GS 5A-31. Currently, the term is defined as any juvenile who, while less than 16 years of age but at least 6 years of age, commits a crime or infraction under State law or under an ordinance of local government, including violation of the motor vehicle laws, or who commits indirect contempt by a juvenile as defined in GS 5A-31. Adds and defines the term victim to mean any individual or entity against whom a crime or infraction is alleged to have been committed by a juvenile based on reasonable grounds that the alleged facts are true. Specifies that for purposes of Article 17 of this Chapter, the term may also include a parent, guardian, or custodian of a victim under the age of 18 years.

Amends GS 7B-1601, which provides for jurisdiction of delinquent juveniles, to establish that when the district court obtains jurisdiction over a juvenile alleged to be delinquent for an offense committed while the juvenile was at least 16 years of age but less than 17 years of age, jurisdiction continues until terminated by an order of the court or until the juvenile reaches the age of 19 years. Further provides that if the offense was committed while the juvenile was at least 17 years of age, jurisdiction continues until terminated by order of the court or until the juvenile reaches the age of 20 years. Further provides that when delinquency proceedings for a juvenile alleged to be delinquent for an offense committed while the juvenile was at least 16 years of age but less than 17 years of age cannot be concluded before the juvenile reaches the age of 19 years, the court retains jurisdiction for the sole purpose of conducting proceedings pursuant to Article 22 of GS Chapter 7B (Probable cause hearing and transfer hearing) and either transferring the case to superior court for trial as an adult or dismissing the petition. Provides that when a delinquency proceeding for a juvenile alleged to be delinquent for an offense committed while the juvenile was at least 17 years of age cannot be concluded before the juvenile reaches the age of 20 years, the court retains jurisdiction for the sole purpose of conducting proceedings pursuant to Article 22 of GS Chapter 7B and either transferring the case to superior court for trial as an adult or dismissing the petition. Makes clarifying changes to existing subsections (b) and (c) concerning jurisdiction over a juvenile and delinquency proceedings to clarify that those existing provisions pertain to a juvenile alleged to be delinquent for an offense committed prior to the juvenile reaching the age of 16 years. 

Provides that when the court has not obtained jurisdiction over a juvenile before the juvenile reaches the age of 18, for a felony and any related misdemeanors the juvenile allegedly committed on or after the juvenile's thirteenth birthday and prior to the juvenile's eighteenth birthday (was, sixteenth birthday), the court has jurisdiction for the sole purpose of conducting proceedings pursuant to Article 22 of GS Chapter 7B and either transferring the case to superior court for trial as an adult or dismissing the petition.

Amends GS 7B-1604(a) to establish that any juvenile, including a juvenile who is under the jurisdiction of the district court, who commits a criminal offense on or after the date the juvenile reaches the age of 18 years (currently, who commits a criminal offense on or after the juvenile's sixteenth birthday), is subject to prosecution as an adult.

Amends GS 7B-2200, concerning the transfer of jurisdiction of a juvenile to superior court, to limit the transfer of jurisdiction of a juvenile under this statute to when the juvenile was at least 13 years of age but less than 16 years of age (was, if the juvenile was 13 years of age or older) at the time the juvenile allegedly committed an offense that would be a felony if committed by an adult. Also qualifies the provisions of this statute by including an "except as otherwise provided in GS 7B-2200.5" clause to the statute.

Enacts new GS 7B-2200.5 to provide for the transfer of jurisdiction to superior court of a juvenile who was at least 16 years of age at the time the juvenile allegedly committed an offense that would be a Class A, B1, B2, C, D, or E felony if committed by an adult. Requires jurisdiction to be transferred to superior court for the commission of those felonies, after (1) notice has been provided to the juvenile and the court has found that a bill of indictment has been returned against the juvenile charging the commission of an offense that constitutes a Class A, B1, B2, C, D, or E felony or (2) notice, hearing, and a finding of probable cause that the juvenile committed an offense that constitutes a Class A, B1, B2, C, D, or E felony. Further provides for the transfer of jurisdiction to superior court, upon motion of the prosecutor or the juvenile's attorney or the court's own motion, of a juvenile who was at least 16 years of age at the time the juvenile allegedly committed an offense that would be a Class F, G, H, or I felony if committed by an adult. Provides for transfer only after notice, hearing, and a finding of probable cause. Makes conforming changes to GS 7B-2202(a).

Amends GS 7B-2506, which sets out alternatives the court exercising jurisdiction over a juvenile who has been adjudicated delinquent may use, to clarify that the options a judge can choose in subdivision (1) can be used in the case of any juvenile under the age of 18 years who needs more adequate care or supervision or who needs placement. Additionally, limits the alternative allowing a judge to excuse a juvenile from compliance with compulsory school attendance law when suitable alternative plans can be arranged to only allow the option if the juvenile is under the age of 16 years. 

Amends GS 7B-2507, concerning delinquency history levels, to establish and assign point levels for a juvenile's prior convictions that are to be added to the points assigned to each of the juvenile's prior adjudications or convictions and probation status to determine the delinquency history level of a delinquent juvenile. Assigns specified points for prior convictions based on the class of felony or misdemeanor, and includes points specifically for prior misdemeanor convictions for impaired driving, impaired driving in a commercial vehicle, and death by vehicle. Makes conforming changes. 

Amends GS 7B-2513, concerning commitment of a delinquent juvenile to the Division of Juvenile Justice (Division), to break down the existing language of subsection (a) into several subsections, and limit application of the existing term limits to a juvenile who committed the offense prior to reaching the age of 16 years. Additionally establishes that for an offense a juvenile committed while the juvenile was at least 16 years of age but less than 17 years of age, the term of commitment to the Division for placement in a youth development center cannot exceed the juvenile's nineteenth birthday. Provides that for an offense the juvenile committed while the juvenile was at least 17 years of age, the term of commitment cannot exceed the juvenile's twentieth birthday. 

Amends GS 7B-2515(a) to require the Division to notify the juvenile and the juvenile's parent, guardian, or custodian of the Division's intention not to release the juvenile who was committed before the juvenile reached the age of 16 years (previously did not specify the juvenile must be committed prior to reaching the age of 16 years) prior to the juvenile's eighteenth birthday, or if the Division determines the commitment should be continued beyond the maximum commitment period as set out in GS 7B-2516(a1) (as amended by this act; conforming change, was GS 7B-2513(a)).

Amends GS 7B-2603(b) to require that any detention of the juvenile pending release be in accordance with GS 7B-2204 (right to pretrial release, detention). Eliminates existing provisions concerning the detention of a juvenile pending release.

Makes conforming changes to GS 7B-3101(a)(2) (Notification of school when court transfers jurisdiction over a juvenile to superior court), GS 5A-31(a) (offense of contempt by a juvenile), GS 5A-34(b) (criminal and civil contempt applicable to specified minors), GS 14-208.6B (registration requirements for juveniles transferred to and convicted in superior court), GS 14-316.1 (contributing to delinquency and neglect by parents and others), GS 115C-404(a) (juvenile court information confidential), and GS 143B-805(6) (defining juvenile for use in provisions concerning the Division of Juvenile Justice). 

Effective December 1, 2019, and applies to offenses committed on or after that date.

Part II.

Amends GS 7B-1703(c), requiring the juvenile court counselor to notify the complainant with the reasons for the counselor's decision not to file a juvenile petition upon evaluation of a complaint, to require the juvenile court counselor to also notify the victim, if the complainant is not the victim, immediately in writing with specific reasons for the counselor's decision, whether or not legal sufficiency was found, and whether the matter was closed or diverted and retained. Additionally requires the notice to include the victim's right to have the decision reviewed by the prosecutor. Makes conforming changes to include the victim's right to require review by the prosecutor and the prosecutor's duty to review the determination that the petition should not be filed under GS 7B-1704 and GS 7B-1705.

Effective July 1, 2017, applying to all complaints filed on or after that date.

Part III.

Amends GS 7B-3001 by adding to the items that must be included in a juvenile court counselor's record, to also include the juvenile's delinquency record and consultations with law enforcement that did not result in a filed complaint. Adds the requirement that, upon request, a juvenile court counselor share with a law enforcement officer sworn in this state any information from the counselor's record related to a juvenile's delinquency record or prior consultations with law enforcement. Prohibits a law enforcement officer from obtaining copies of any part of the record and requires shared information to be withheld from public inspection. Effective July 1, 2017.

By July 1, 2018, directs the Administrative Office of the Courts (AOC) to expand access to its automated electronic information management system for juvenile courts, JWise, to include prosecutors and attorneys representing juveniles in juvenile court proceedings. Limits this access to examining electronic records related to juvenile delinquency information. Prohibits other information in JWise, such as any records pertaining to abuse, neglect, and dependency or termination of parental rights, from being made available to a prosecutor or juvenile's attorney through JWise. Directs the AOC to develop a statewide search function for all users of the JWise computer system that corresponds to access to juvenile court records as authorized under GS Chapter 7B by July 1, 2018.

Part IV.

Amends the duties of the Administrative Officer of the Courts by adding the duty to prescribe policies and procedures for chief district court judges to establish school-justice partnerships with local law enforcement agencies, local boards of education, and local school administrative units with the goal of reducing in-school arrests, out-of-school suspensions, and expulsions.

Part V.

Amends GS 17C-6 to amend the powers of the North Carolina Criminal Justice Education and Training Standards Commission (Commission) as follows. Adds to the standards that the Commission establishes for entry level employment as a criminal justice officer to also require education and training on juvenile justice matters that includes four specified components. Adds to the in-service training standards for criminal justice officers that the Commission develops to also require training on juvenile justice issues that must include the same four specified components. Also adds the duty of establishing minimum standards and levels of training for certification of instructors for the required juvenile justice training.

Amends GS 17E-4 to amend the powers of the North Carolina Sheriffs' Education and Training Standards Commission (Commission) as follows. Adds to the standards that the Commission establishes for entry level employment as an officer to also require training on juvenile justice matters that includes four specified components. Adds to standards that the Commission establishes for in-service training for justice officers to also require training on juvenile justice matters that includes four specified components. Also adds the duty of establishing minimum standards and levels of training for certification of instructors for the required juvenile justice training.

Requires that both of the above Commissions work with the Division of Adult Correction and Juvenile Justice of the Department of Public Safety in developing and implementing the required education and training.

Part VI.

Establishes the Juvenile Jurisdiction Advisory Committee (Committee) within the Division of Adult Correction and Juvenile Justice. Provides for the membership of the Committee, consisting of 21 members as specified. Requires appointments to the Committee to be made no later than October 1, 2017. Sets forth parameters for filling vacancies on the Committee and the provisions for Committee meetings. Requires the initial meeting of the Committee to be called on or before November 1, 2017. Requires cooperation by government agencies and directs the Committee to consult with appropriate State departments, agencies, and board representatives. Sets out the duties of the Committee, which include developing a specific plan for the implementation of any changes in the juvenile justice system that would be required in order to extend jurisdiction in delinquency matters and proceedings to include 16- and 17-year-old persons within the juvenile justice system. 

Directs the Committee to submit an interim report by April 1, 2018, to the General Assembly, with copies to the Joint Legislative Oversight Committee on Justice and Public Safety and to the Appropriation Committees on Justice and Public Safety of both houses. Requires the Committee to submit additional interim reports with updates on the planning steps completed annually by January 15. Directs a final report on the implementation of this act and the Committee's findings and recommendations by January 15, 2023, to the General Assembly and Governor. Terminates the Committee on February 1, 2023, or upon the filing of its final report, whichever occurs earlier. 

Provides that the Committee can apply for, receive, and accept grants of non-State funds or other contributions as appropriate to assist in the performance of its duties. 

Intro. by Barringer.STUDY, GS 5A, GS 7A, GS 7B, GS 14, GS 17C, GS 17E, GS 115C, GS 143B
S 567 (2017-2018) REFORM/CORRECT/WILLS AND TRUSTS. Filed Mar 30 2017, AN ACT TO PROVIDE FOR THE JUDICIAL REFORMATION OF WILLS TO CORRECT MISTAKES AND THE JUDICIAL MODIFICATION OF WILLS TO ACHIEVE THE TESTATOR'S TAX OBJECTIVES AND TO REVISE THE NORTH CAROLINA UNIFORM TRUST CODE TO ACHIEVE CONSISTENCY IN THE REFORMATION OF TRUSTS WITH THE REFORMATION OF WILLS, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.

Section 1

Enacts Article 10, Reformation and Modification of Wills, to GS Chapter 31. Authorizes the court to reform the terms of a will if the terms of the will are ambiguous in order to conform the terms to the testator's intent. Requires that the testator's intent be proved by clear and convincing evidence, and that the terms of the will were affected by mistake of fact or law, whether in expression or inducement.

Authorizes the court to modify the terms of a will to achieve a testator's tax objective as long as modification of the terms is in a manner that is not contrary to the testator's probable intent. Allows the court to provide that the modification has retroactive effect.

Directs an action for reformation or modification of a will be filed in superior court pursuant to Article 26 of GS Chapter 1. Establishes that the personal representative is a necessary party to an action for reformation or modification of a will. Bars an interested person in the estate who files an action for reformation or modification of a will from thereafter filing a caveat to the will under Article 6 of GS Chapter 31.

Effective January 1, 2018, and apply to estates of decedents dying before, on, or after that date.

Section 2

Amends GS 28A-2-4, providing for subject matter jurisdiction of the clerk of superior court in estate proceedings. Current law sets out four subdivisions in subsection (a) describing what is included in, but not limited to, estate proceedings. Provides that for the proceedings described in subdivision (4) of subsection (a), the provisions of Article 26 of GS Chapter 1 apply to an estate proceeding (previously applied to a trust proceeding) pending before the clerk of superior court to the extent consistent with Article in the absence of a transfer to superior court. Subdivision (4) of subsection (a) concerns proceedings to ascertain heirs or devisees, to approve settlement agreements, to determine questions of construction of wills, to determine priority among creditors, to determine whether a person is in possession of property belonging to an estate, to order the recovery of property of the estate in possession by third parties, and to determine the existence or nonexistence of any immunity, power, privilege, duty, or right. 

Amends subsection (c) to provide that the clerk of superior court does not have jurisdiction under subsections (a) or (b) of the statute, or GS 28A-2-5 (subject matter jurisdiction in special proceedings), of the existing list of actions, without otherwise limiting the jurisdiction of the Superior Court Division of the General Court of Justice (currently, refers to subsections (a) and (c) of the statute and does not cite GS 28A-2-5).

Section 3

Amends GS 28A-2-4(c), as amended above, which provides that the clerk of superior court does not have jurisdiction under subsections (a) or (b) of the statute or GS 28A-2-5 of the specified actions, without otherwise limiting the jurisdiction of the Superior Court Division of the General Court of Justice. Adds to those specified actions, actions for reformation or modification of wills under new Article 10 of GS Chapter 31. 

Effective January 1, 2018, and apply to estates of decedents dying before, on, or after that date.

Section 4

Rewrites GS 36C-4-415 to authorize a court to reform the terms of a trust, if the terms of the trust are ambiguous, in order to conform the terms to the settlor's intent. Requires the settlor's intent be proved by clear and convincing evidence, and that the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement. Deletes the provision that established jurisdiction under the statute to be as provided in GS 36C-203.

Effective January 1, 2018, and applies to actions for the reformation of trusts filed on or after that date.

Section 5 directs the Revisor of Statutes to print all explanatory comments of the drafters of Section 4 of the act as the Revisor deems appropriate. 

Intro. by Barringer, Randleman, Daniel.GS 28A, GS 31, GS 36C
S 568 (2017-2018) NONADEMPTION OF SPECIFIC DEVISES. Filed Mar 30 2017, AN ACT TO PROVIDE FOR THE NONADEMPTION OF SPECIFIC DEVISES IN CERTAIN CASES, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.

Enacts GS 31-42.3, providing that in the absence of a finding of a contrary intention in the testator's will, this statute's provisions control the construction of a will where the property of a testator would be adeemed but for this statute.

Subsection (b) establishes that a specific devisee has a right to specifically devised property in the testator's estate at the testator's death. Details six provisions applicable in this case, providing a specific devisee also has a right to: (1) any balance of the purchase price, together with any security agreement, owed by a purchaser at the testator's death by reason of sale of the property; (2) any amount of a condemnation award for the taking of the property unpaid at death; (3) any proceeds unpaid at death on fire or casualty insurance on or other recovery for injury to the property; (4) any property owned by the testator at death and acquired as a result of foreclosure, or obtained in lieu of foreclosure, of the security interest for a specifically devised obligation; (5) any real property or tangible personal property owned by the testator at death that the testator acquired as a replacement for specifically devised real property or tangible personal property to the extent it is established by clear, cogent, and convincing evidence that the property was acquired by the testator as a replacement for the specifically devised property; and (6) if not covered by subdivisions (1) through (5), a pecuniary devise equal to the value as of its date of disposition of other specifically devised property disposed of during the testator's lifetime, but only to the extent it is established by clear, cogent, and convincing evidence that ademption would be inconsistent with the testator's manifested plan of distribution or that at the time the will was made, the date of disposition or otherwise, the testator did not intend ademption of the devise.

Subsection (c) establishes that the specific devisee has the right to a general pecuniary devise equal to the net sale price, the amount of the unpaid loan, the condemnation award, the insurance proceeds, or the recovery in the case that (1) specifically devised property is sold or mortgaged by a conservator or guardian or by an attorney‑in‑fact acting within the authority of a durable power of attorney for an incapacitated or mentally incompetent principal or (2) a condemnation award, insurance proceeds, or recovery for injury to the property is paid to a conservator or guardian or to an attorney‑in‑fact acting within the authority of a durable power of attorney for an incapacitated or mentally incompetent principal. Provides that the right of a specific devisee under subsection (c) is reduced by any right the devisee has under subsection (b), described above. Provides that, as to a conservator or guardian, subsection (c) does not apply if after the sale, mortgage, condemnation, casualty, or recovery, it was adjudicated that the testator's incapacity or mental incompetence ceased and the testator survived the adjudication for at least one year. Provides that, as to an attorney-in-fact acting within the authority of a durable power of attorney for an incapacitated or mentally incompetent principal referenced in subsection (c): (1) adjudication of incapacity or mental incompetence before death is not necessary and (2) the acts of an attorney-in-fact within the authority of a durable power of attorney are presumed to be for an incapacitated or mentally incompetent principal.

Directs the Revisor of Statutes to print, as annotations to the published General Statutes, all relevant portions of the Official Comments to Section 2-606 of the Uniform Probate Code and all explanatory comments of the drafters after this act, as the Revisor deems appropriate.

Effective January 1, 2018, and applies to estates of decedents on or after that date. 

Intro. by Barringer, Randleman, Daniel.GS 31
S 569 (2017-2018) UNIFORM POWER OF ATTORNEY ACT. Filed Mar 30 2017, AN ACT TO ADOPT THE UNIFORM POWER OF ATTORNEY ACT IN THIS STATE.

Part 1 enacts new GS Chapter 32C (NC Uniform Power of Attorney Act).

Article 1 (Definitions and General Provisions).

Defines 16 terms as they are used in the Chapter, including principal (an individual granting a power of attorney) and agent (a person granted authority to act for the principal under a power of attorney).

Applies to all powers of attorney (POAs) except (1) a power coupled with an interest in the subject of the power, including a power given to or for the benefit of a creditor in connection with a credit transaction, (2) health care power, (3) voting or management proxies with respect to a legal or commercial entity, and (4) power created on forms prescribed by a government for a governmental purpose.

Provides that POAs under this Chapter do not expire upon the incapacity of the principal, unless otherwise stated in the POA.

Provides that POAs must be signed by the principal, or at the principaläó»s direction in the presence of the principal, and acknowledged.

Provides POAs executed in this State on or after the effective date of this act are valid if they comply with this act, and that POAs executed before the effective date of this act are valid if they comply with the law as it existed at the time of execution.

Provides that the meaning and effect of POAs are determined by the law of the jurisdiction indicated on the POA, or in the absence of that indication, the law of the jurisdiction where the POA was executed.

Directs the clerk of superior court, in a protective proceeding for the principaläó»s estate or person after the execution of a POA to nominate a guardian in accordance with a POA, except for good cause shown or disqualification, with preference given to the guardian in a healthcare POA over other POAs. Makes the agent under a POA accountable to a court-appointed guardian or fiduciary, as well as to the principal.

Provides that a POA is effective when executed, unless the POA directs otherwise. The POA may authorize one or more persons to determine in a record that a contingent event making POA effective has occurred. In the absence of a person authorized to determine the principal's incapacity, or the unwillingness of the authorized person to do so, the POA is effective upon a written determination of incapacitation bytwo physicians that personally examine the principal, or by an attorney-at-law, judge, or other appropriate government official. Authorizes a person designated by the principal to determine the principaläó»s incapacity to act as the principaläó»s personal representative under the Health Insurance Portability and Accountability Act., to obtain access to the principaläó»s health care information, and communicate with the principaläó»s healthcare provider.

Provides that POAs terminate in seven listed circumstances, including the death of the principal. Provides for the termination of an agentäó»s authority in five listed circumstances, including written revocation by the principal. Provides that an agentäó»s authority lasts until it is terminated under this chapter, notwithstanding a lapse of time since the execution of the POA. Provides that an agentäó»s good-faith actions, without knowledge of a termination, are binding on the principal. Provides that subsequent POAs do not revoke prior POAs, unless the subsequent POA provides that the prior POA is revoked. Provides methods for the revocation of POAs that have been registered with the Register of Deeds, as well as those not registered.

Authorizes a principal to designate more than one agent to act as coagents, either jointly or independently. Authorizes a principal to designate one or more successor agents to act upon the resignation, death, incapacity, disqualification, or refusal of an agent. Authorizes the principal to grant authority to a person to designate a successor agent. Provides that the successor agent has the same authority as the original agent, and may not act until all predecessor agents have resigned and so forth unless the POA provides otherwise.

Provides for reasonable compensation for an agent, as determined by the clerk of superior court if not already specified in the POA and the principal becomes incapacitated, and for reimbursement for properly incurred expenses on behalf of the principal.

Unless otherwise provided in the POA, an agent accepts their appointment by exercising authority as an agent, or by any other assertion or conduct indicating acceptance.

Requires agents to act in accordance with the principaläó»s reasonable expectations to the extent actually known by the agent, and in the principaläó»s best interest, act in good faith, and act only within the scope of authority granted in the POA. Provides that an agent has no affirmative duty to exercise authority, unless otherwise provided in the POA, but requires the agent in doing so to (1) act loyally for the principaläó»s benefit; (2) not create a conflict of interest between the agent and the principal; (3) act with an agentäó»s care, competence, and diligence; (4) keep records; (5) cooperate with the healthcare power of attorney to make health care decisions for the principal and act in the principaläó»s best interest; and (6) attempt to preserve the principaläó»s estate plan, if consistent with the principaläó»s best interest. Shields good-faith agents from various forms of liability. Makes good faith acts in the best interest of the principal not voidable solely because the agent also benefits from the act or has an individual or conflicting interest. Provides that an agent is not required to disclose receipts, disbursements, or transactions, except as otherwise provided in the POA, or as ordered by a court or requested by the principal or the principaläó»s guardian, representative, or successor in interest.

POA provisions relieving an agent of liability for breach of duty are binding on the principal except to the extent the provision relieves the agent of liability for bad faith or reckless indifference to the purposes of the POA or best interest of the principal.

Provides clerks of superior court with original jurisdiction of proceedings under this Chapter. Jurisdiction is exclusive except for over proceedings to determine an agentäó»s authority and powers, to construe the terms of a POA, and to determine any question arising in the agentäó»s exercise of powers and authority, which may be transferred from the clerk to the superior court. Provides that the clerk of superior court does not have jurisdiction over actions (1) to modify or amend a POA; (2) by or against creditors or debtors of an agent or principal; (3) involving claims for monetary damages; (4) to set aside a POA for undue influence or lack of capacity; or (5) for the recovery of property transferred or conveyed by an agent on behalf of a principal with intent to hinder, delay, or defraud the principaläó»s creditors. Provides for the commencement of proceedings, and authorizes five listed parties to do so. Provides for the venue for proceedings under this Chapter. Directs the clerk of superior court to dismiss a petition at the motion of a principal, unless the principal is incapacitated. Provides for the appeal of a clerkäó»s order.

Provides that violation by an agent of this Chapter is a breach of fiduciary duty. Authorizes a court to order any appropriate relief to remedy a breach of fiduciary duty that has occurred or may occur, including an injunction against the agent from committing the breach, and removing the agent. Authorizes a court to relieve or excuse an agent from liability for breach of fiduciary duty for cause shown, or for acting honestly and reasonably. Makes agents who commit a breach of fiduciary duty under a POA liable for the amount required to restore the value of the property subject to the POA and distributions from that property, or the profit of the agent made by reason of the breach, whichever is greater. Provides for contribution for liability shared between multiple agents. Makes an agent accountable for any profit made by the agent arising from dealings with property subject to the POA, even absent a breach of fiduciary duty.

Provides for the method of resignation of agents, absent a provision in the POA to the contrary.

Provides that a person who accepts in good faith a POA without actual knowledge that the POA or agentäó»s authority is void, invalid, or terminated, or that the agent is exceeding authority, may rely on the POA as if it and the agentäó»s authority were genuine, valid, and in effect, and the agent had not exceeded authority, and will not be held responsible for any breach of fiduciary duty by the agent. Authorizes a person asked to accept a POA to request and rely upon (1) a certification executed by the agent that, to the best of the agentäó»s knowledge, the POA and agentäó»s authority are not void, invalid, or terminated; (2) an English translation of a POA containing a language other than English; or (3) an opinion of counsel as to any matter of law concerning the POA, if the person making the request provides in a record the reason for the request. Provides for paying the cost of an English translation. Specifies that a person conducting activities through employees is without knowledge of facts relating to a POA.

Provides that a person is not required to accept, and is not liable for not accepting, a POA that is not verified by a public notary or other authorized person. Directs a person presented with a POA verified by public notary to accept, refuse to accept, or request certification, translation, or an opinion of counsel on the POA within seven business days. If a person requests certification, translation, or an opinion of counsel, the person must accept or refuse to accept the POA within five business days of receipt of the requested items in reasonably satisfactory form. Provides that a person is not required to accept a POA verified by public notary in nine listed circumstances, including when the person is not otherwise required to engage in a transaction with the principal in the same circumstances, or when the person in good faith believes that the POA or agentäó»s authority is not valid, whether or not a certification, translation, or opinion of counsel has been requested or provided. Provides that a person is never required to open an account for a principal at the request of an agent if the principal is not currently the personäó»s customer, make a loan to the principal at the request of an agent, or permit an agent to conduct business not authorized by the POA. Subjects a person who refuses to accept a POA verified by public notary to any available remedy under applicable law.

Article 2 (Authority).

Provides that, unless the exercise of the authority by an agent under a POA is not otherwise prohibited by another agreement or instrument to which the authority or property is subject, then the agent may not perform nine specified actions, including making a gift or creating or changing rights of survivorship, without an express grant of authority. Provides that an agent may petition the court for authority to do these acts absent an express grant of authority. Provides that an agent granted such authority may only act as consistent with the principaläó»s objectives and the principaläó»s best interest. Prohibits agents from creating in the agent, or an individual to whom the agent owes a legal obligation of support, an interest in the principaläó»s property.

Provides lists of actions an agent is authorized to take, unless otherwise provided in a POA, when a POA grants the agent general authority with respect to the following properties, interests, rights, and affairs: real property, tangible personal property, stocks and bonds, commodities and options, banks and other financial institutions, operation of an entity, insurance and annuities, estates, trusts, and other beneficial interests, claims and litigation, personal and family maintenance, benefits from governmental programs or civil or military service, retirement plans, taxes, gifts by general authority, and digital assets. Provides that an agentäó»s authority, notwithstanding the listed authorized actions, is subject to the restrictions in this Article. Allows an agent to petition the court for an order authorizing the agent to make a gift of the principaläó»s property.

Article 3 (Statutory Forms).

Provides a form that may be used to create a POA that has the meaning and effect prescribed by this Chapter.

Provides a form that may be used by an agent to certify facts concerning a POA.

Provides a form that may be used to create a limited POA for transactions involving the purchase, sale, or financing of designated real property or tangible personal property related to the designated real property.

Article 4 (Miscellaneous Provisions).

Directs parties construing this Chapter to consider the need to promote uniformity of the law with respect to its subject matter among the enacting states in doing so.

Provides that the Chapter conforms with the requirements of the Electronic Signatures in Global and National Commerce Act, and supersede, modify, and limit the requirements of that act.

This Chapter applies to a POA created before, on, or after the effective date of this Chapter unless there is clear indication of contrary intent in the POA, or unless application would substantially impair the rights of a party. Applies to judicial proceedings concerning a POA commenced on or after the effective date of this Chapter. Applies to judicial proceedings concerning a POA commenced before the effective date of this Chapter unless the court finds that application of a provision would substantially interfere with the effective conduct of the judicial proceeding or prejudice the rights of a party, in which case the particular provision does not apply, and the superseded law applies. Does not affect rights acquired, extinguished, or banned upon the expiration of a prescribed period that commenced under law of this State other than this Chapter before the effective date of this Chapter. Provides for the continued validity of Statutory Short Form POAs created prior to January 1, 2018.

Part 2 makes technical and conforming changes to GS 30-3.4, GS 47-28, GS 47-43.1, GS 50-22, GS 90-21.13, GS 90-322, and GS 122C-73, and further amends GS 47-43.1 to delete the requirement that a POA be executed under seal for an instrument executed by an agent to be executed under seal.

Repeals GS Chapter 32A, Articles 1 (Statutory Short Form Power of Attorney), 2 (Durable Power of Attorney), 2A (Authority of Attorney-in-Fact to Make Gifts and to Renounce), 2B (Gifts Authorized by Court Order), and 5 (Enforcement of Power of Attorney).

Effective January 1, 2018. Directs the Revisor of Statutes to print all relevant portions of the Official Comments to the Uniform Power of Attorney Act and explanatory comments of the drafters as the Revisor deems appropriate.

Intro. by Daniel, Newton.GS 30, GS 32C, GS 47, GS 50, GS 90, GS 122C
S 571 (2017-2018) CUSTOMARY AND REASONABLE FEES FOR APPRAISERS. Filed Mar 30 2017, AN ACT TO CLARIFY THE DEFINITION OF REASONABLE AND CUSTOMARY COMPENSATION FOR REAL ESTATE APPRAISERS.

Amends GS 93E-2-4(i), pertaining to the requirement for appraisal management companies to provide appraisers customary and reasonable compensation. Amends and adds to the existing language and now requires an appraisal management company to provide customary and reasonable compensation and offers of compensation to appraisers for appraisal assignments of 1-4 family residential properties. Establishes that compensation and offers of compensation provided to an appraiser are deemed reasonable if the compensation or offer of compensation is in an amount reasonably related to recent rates paid by the consumer for comparable appraisal services performed in the geographic market of the property being appraised. Provides that recent rates do not include amounts paid by appraisal management companies. Directs that customary and reasonable rates be based on objective third-party information, such as academic studies, government fee surveys, and independent private sector surveys. Directs the North Carolina Appraisal Board to adopt necessary rules to enforce subsection (i) as amended within 180 days of the date the act becomes law.

Adds the term consumer to GS 93E-2-2, and defines the term as it applies to Article 2, Real Estate Appraisal Management Companies, of GS Chapter 93E to mean the borrower or owner of the property interest for which an appraiser's services are utilized.

Intro. by Rabin, Woodard.GS 93E
S 572 (2017-2018) CONSUMER CREDIT/REVOLVING CREDIT CHARGES. Filed Mar 30 2017, AN ACT TO MODERNIZE NORTH CAROLINA'S REVOLVING CREDIT CHARGES AND CONSUMER CREDIT INSTALLMENT SALE CONTRACT DEFAULT CHARGE IN ORDER TO LEVEL THE PLAYING FIELD WITH OUT-OF-STATE BUSINESSES.

Amends GS 24-11 to increase the allowable interest charges from one and one-half percent to one and five-sixths percent per month on the extension of credit under an open‑end credit or similar plan where a service charge cannot be imposed if the account is paid in full within 25 days from the billing date, but upon which an annual charge of up to $24 is allowed. Also increases the allowable monthly rate for interest and service charges from one and one-half percent to one and five-sixths percent per month on revolving credit loans if it is agreed to in writing by the borrower. Increases the amount of the late fee that a lender may charge on accounts having an outstanding balance of $100 or more, from $10 to $25. 

Amends GS 25A-29 to provide that if any installment is past due for 10 days or more according to the original terms of the consumer credit installment sale contract, a default charge can be made in an amount not to exceed $25 (was, not to exceed the lesser of 5% of the installment past due or $6).

Intro. by Gunn.GS 24, GS 25A
S 573 (2017-2018) APPRAISAL ASSIGNMENT MODIFICATIONS. Filed Mar 30 2017, AN ACT TO MODIFY THE LAW RELATED TO APPRAISAL ASSIGNMENTS.

Amends GS 93E-2-4(i), pertaining to the requirement for appraisal management companies to provide appraisers customary and reasonable compensation. Requires an appraisal management company to compensate appraisers for appraisal assignments of one- to four-family dwellings (currently, for appraisal assignments of property secured by the principal dwelling of the consumer) in compliance with section 129E(i) of the federal Truth in Lending Act (15 USC 1601 et seq) and regulations promulgated thereunder. Eliminates the requirement for the North Carolina Appraisal Board to base its rules establishing customary and reasonable rates on objective third party information, such as academic studies and independent private sector surveys. Effective October 1, 2017.

Intro. by Gunn.GS 93E
S 574 (2017-2018) CONSUMER CREDIT/REVOLVING CREDIT CHARGES. Filed Mar 30 2017, AN ACT TO MODERNIZE NORTH CAROLINA'S REVOLVING CREDIT CHARGES IN ORDER TO LEVEL THE PLAYING FIELD WITH OUT-OF-STATE BUSINESSES.

Amends GS 24-11 to increase the allowable interest charges from one and one-half percent to one and five-sixths percent per month on the extension of credit under an open‑end credit or similar plan where a service charge cannot be imposed if the account is paid in full within 25 days from the billing date, but upon which an annual charge of up to $24 is allowed. Also increases the allowable monthly rate for interest and service charges from one and one-half percent to one and five-sixths percent per month on revolving credit loans if it is agreed to in writing by the borrower. Increases the amount of the late fee that a lender may charge on accounts having an outstanding balance of $100 or more, from $10 to $25.

Intro. by Gunn.GS 24
S 577 (2017-2018) CONSUMER CREDIT/DEFAULT CHARGE. Filed Mar 30 2017, AN ACT TO MODERNIZE NORTH CAROLINA'S CONSUMER CREDIT INSTALLMENT SALE CONTRACT DEFAULT CHARGE IN ORDER TO LEVEL THE PLAYING FIELD WITH OUT-OF-STATE BUSINESSES.

Amends GS 25A-29 to provide that if any installment is past due for 10 days or more according to the original terms of the consumer credit installment sale contract, a default charge can be made in an amount not to exceed $25 (was, not to exceed the lesser of 5% of the installment past due or $6).

Intro. by Gunn.GS 25A
S 578 (2017-2018) VETERAN-OWNED SMALL BUSINESS/ANNUAL REPORT. Filed Mar 30 2017, AN ACT TO REQUIRE THE OFFICE OF THE SECRETARY OF STATE TO ANNUALLY COMPILE INFORMATION ABOUT THE NUMBER OF VETERAN-OWNED SMALL BUSINESSES AND SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESSES AND TO PROVIDE THIS INFORMATION TO THE DEPARTMENT OF MILITARY AND VETERANS AFFAIRS.

Includes whereas clauses. 

Amends GS 55-1-40 by adding and defining the following terms: annual receipts, articles of incorporation, related person, service-disabled veteran, service-disabled veteran-owned small business, veteran, and veteran-owned small business. Makes technical changes.

Amends GS 55-16-22 by adding that the Secretary of State and Secretary of Revenue must provide space and instructions on the annual report from for a corporation to voluntarily indicate whether it is a veteran-owned small business or a service-disabled veteran-owned small business. The act defines a veteran-owned small business as a business that has annual receipts, combined with the annual receipts of all related persons, that do not exceed $1 million and  one or more veterans own more than 50% of the business. The act defines service‑disabled veteran‑owned small business as a business that has annual receipts, combined with the annual receipts of all related persons, that do not exceed $1 million and one or more service‑disabled veterans own more than 50% of the business.

Requires the Secretary of State to compile summary information, using the information reported under amended GS 55‑16‑22(a4), on the number of veteran‑owned small businesses and the number of service‑disabled veteran‑owned small businesses reporting in this state and annually report this summary information to the Department of Military and Veterans Affairs by March 1.

Amends GS 57D-2-24 to require the Secretary of State to also provide space and instruction on the annual report form for a limited liability company to voluntarily indicate whether it is a veteran-owned small business or a service-disabled veteran-owned small business.

Requires the Secretary of State to compile summary information, using the information reported under amended GS 57D-2-24(a1), on the number of veteran‑owned small businesses and the number of service‑disabled veteran‑owned small businesses reporting in this state and annually report this summary information in the annual report to the Department of Military and Veterans Affairs.

Amends GS 59-84.4 to require the Secretary of State to also provide space and instruction on the annual report form for a registered limited liability partnership or foreign limited liability partnership to voluntarily indicate whether it is a veteran-owned small business or a service-disabled veteran-owned small business.

Requires the Secretary of State to compile summary information, using the information reported under amended GS 59-84.4(a1), on the number of veteran‑owned small businesses and the number of service‑disabled veteran‑owned small businesses reporting in this state and annually report this summary information in the annual report to the Department of Military and Veterans Affairs.

Allows the Office of the Secretary of State and the Department of Revenue to include in the instructions of the annual report forms an explanation that status as a veteran‑owned small business or service‑disabled veteran‑owned small business is being requested to assist the State in documenting the importance and impact of the State's military population in our communities and on our State and local economies. Requires the Office of the Secretary of State to submit the first annual report required by the act by March 1, 2019.

Applies to annual reports filed by business entities on or after January 1, 2018.

 

Intro. by Brown.GS 55, GS 57D, GS 59

The Daily Bulletin: 2017-03-31

The Daily Bulletin: 2017-03-31

ACTIONS ON BILLS
NOTES 1. Digests appearing under “Summaries of Bills Filed” are for bills stamped with today’s filing date.
  2. Amendments and committee substitutes adopted today are summarized following the chamber action.
  3. Subscribers can find the digest of every version of each bill online at lrs.sog.unc.edu.
  4. The dates on which previous amendments or committee substitutes were adopted are listed below bill numbers.
  5. The action "Cal Pursuant Rule 36b" indicates that the bill has been reported by committee and is awaiting calendaring.
  6. Enacted bills are indicated by #, failed bills by *. Actions that change a bill are indicated by HA or SA.

Actions on Bills: 2017-03-31

No public actions on bills

Actions on Bills: 2017-03-31

No local actions on bills

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