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

Revises the proposed changes to Section 2 of Article III to more clearly provide that no person may serve in the office of Governor or Lieutenant Governor for more than two terms (whether consecutive or nonconsecutive) and deletes the provision setting the change to begin with terms commencing on or after January 1, 2021.  Adds stipulation that service in all or part of a term is considered a term for purposes of the two-term limit.  Makes gender-neutral technical changes to Section 2.

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

Amends proposed additions to GS 153A-145.5 and GS 160A-205.2 to delete all references to county police departments, city police departments, and sheriffäó»s offices. Makes conforming changes.

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

Deletes amendments to GS 116B-70 (regarding the Treasurer's authority to destroy or dispose of abandoned property with no substantial commercial value).

Amends GS 116B-59 (Notice by holders to apparent owners). Replaces proposed references to "stocks" with references to "securities." Amends notice to apparent owner requirements to require holders to exercise reasonable care to ascertain that notice is being sent to the apparent owner's correct address, and deletes proposed language regarding database searches and notice by electronic mail. Amends the requirements for the contents of the written notice, restoring the requirement of a statement of the amount of the property.

Amends GS 116B-77. Deletes proposed separate civil penalty for failure to perform duties under GS 116B-59, and provides that failure to perform duties under that statute are subject to the already-existing civil penalty in this statute.

Amends a definition within GS 116B-52 to replace a reference to "stock" with a reference to "security."

Amends GS 116B-53 (Presumptions of abandonment) to replace references to "stock" with references to "security." Makes a conforming change.

House committee substitute to the 2nd edition makes the following change. Changes the effective date of the act to 90 days after the act becomes law (previously, Section 1 was effective July 1, 2017, and the remainder of the act was effective when it became law).

House committee substitute deletes the provisions of the 1st edition and now provides the following.

Changes the act's long title.

Amends GS 160A-340.2(c)(3), allowing the city of Wilson to continue the provision of communication services to persons and businesses in the specified temporary extension areas as long as the provision of communication services is terminated by a date that is 30 days after the date retail service is first available in the area for a competitive provider of communications service that will provide Fiber to the Premises (FTTP) service. Authorizes the city of Wilson to establish rates, fees, charges, and penalties for the communication services provided in the temporary extension areas in the same manner as communication services provided in the county limits of Wilson County, including the incorporated areas within the County. Provides that services will be deemed available upon the certification by a competitive provider to the city that service is available in a temporary extension area. Defines a competitive provider as an incumbent local exchange carrier or cable telecommunications company that is not presently providing FTTP service in the temporary extension areas. 

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

Deletes proposed GS 58-56A-2 (Pharmacy of choice). Makes conforming technical changes.

Amends proposed GS 58-56A-3 (Consumer protections). Establishes that a pharmacy or pharmacist has the right to provide an insured information regarding the amount of the insured's cost share for a prescription drug (previously, prohibited a pharmacy benefits manager from prohibiting a pharmacist or pharmacy from providing an insured information regarding the amount of the insured's cost share for a prescription drug and the clinical efficacy of a lower-priced alternative drug if one is available). Modifies and adds to subsection (b) to prohibit a pharmacy benefits manager from prohibiting, through contract, a pharmacy from offering and providing direct and limited delivery services to an insured as an ancillary service of the pharmacy, as delineated in the contract between the pharmacy benefits manager and the pharmacy. Provides in subsection (c) that a pharmacy benefits manager cannot charge or attempt to collect from an insured a co-payment that exceeds the total submitted charges by the network pharmacy (previously specified for which the pharmacy is paid). Deletes the language of subsection (d), making a violation an unfair and deceptive trade practice and actionable under GS Chapter 75. Instead provides that any contract for the provision of a network to deliver health care services between a pharmacy manager and insurer must be made available for review by the Department of Insurance.

Amends proposed GS 58-56A-4 (Pharmacy and pharmacist protections) to now provide that a pharmacy benefits manager can only charge a fee or otherwise hold a pharmacy responsible for a fee relating to the adjudication of a claim if the fee is reported on the remittance advice of the adjudicated claim or is set out in contract between the pharmacy benefits manager and the pharmacy. Adds that the statute does not apply with respect to claims under an employee benefit plan under the Employment Retirement Security Act of 1974 or Medicare Part D. Deletes proposed subsections (b) (which prohibited a pharmacy benefits manager from recouping funds from a pharmacy in connection with claims for which the pharmacy has already been paid without first complying with GS Chapter 58, Article 4C, and from retaliating against a pharmacist or pharmacy for exercising rights under GS Chapter 58), (c) (which provided that the statute did not apply to licensed group health maintenance organizations with an exclusive medical group contract that operate their own pharmacies), and (d) (which made a violation an unfair and deceptive trade practice and actionable under GS Chapter 75, and stated that the statute did not foreclose other available remedies).

House committee substitute makes the following changes to the 3rd edition.

Expands and modifies proposed GS 14-34.11, making it a Class I felony for a person to assault a law enforcement officer, firefighter, emergency medical technician, or medical responder when the law enforcement officer, firefighter, emergency medical technician, or medical responder is discharging or attempting to discharge his or her official duties, unless the conduct is a result of a verifiable diagnosis of a medical condition or a mental health or behavioral health disability (previously, provided for assault of an officer or employee of the State or any political subdivision of the State, and did not provide situations where the conduct results  from a diagnosed medical condition or a mental health or behavioral disability). Makes conforming changes to the statute’s title.

Amends the proposed revision of the definition of emergency personnel in subsection (b) of GS 14-288.9 (Assault on emergency personnel) to retain law enforcement officers in the definition. 

House committee substitute makes the following changes to the 2nd edition.

Modifies proposed GS 116-301(b), which requires UNC System employees and State agencies to cooperate with the Committee on Free Expression by providing information requested by the Committee, to except from the requirement information that is required to be kept confidential under State or federal law. 

House committee substitute makes the following changes to the 1st edition. Limits the repeal of GS 90-113.31(B) to only subsection (5), which specified the scope of practice for the practice of a certified substance abuse residential facility director. 

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

Modifies proposed subsection (c) in GS 84-5.1 to require the legal services provided by a nonprofit membership association to its members be consistent with the mission or charter of the nonprofit association. 

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

Amends subsection (c) of proposed GS 14-277.6 (Making a threat concerning mass violence on educational property), authorizing the court to order a person convicted under this new statute to pay restitution, including costs and consequential damages resulting from the disruption of the normal activity that would have otherwise occurred on the premises but for the threat (previously, but for the false report), pursuant to Article 81C of GS Chapter 15A. 

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

Amends GS 93B-15.1, pertaining to licensure for individuals with military training and experience and military spouses. Amends subsection (i), establishing that the State Board of Education (State Board) is considered an occupational licensing board when issuing teacher licenses under GS 115C-296 for purposes of this statute, and in addition to the requirements of GS 93B-15.1, requires the State Board to comply with the following provisions. Establishes that a military spouse is exempt from testing requirements established by the State Board for an initial bachelor's degree license or graduate degree license if: (1) the applicant meets the requirements of existing subsection (b) of the statute (requiring the applicant hold a current license or an equivalent from another jurisdiction, demonstrate competency, have no prior disciplinary actions or any prior acts that would constitute such, be in good standing, and pay the required fees); (2) the applicant's spouse is the subject of a military transfer to North Carolina; (3) the applicant has at least three years of teaching experience in the five years prior to submitting the application; and (4) the applicant has received satisfactory performance evaluations and met expectations of student growth in the field of licensure in the three most recent years of teaching. Establishes that a military spouse applicant is eligible for a temporary license of two years while the applicant transfers the requirements for an NC teacher license if: (1) the applicant meets the requirements of existing subsection (b) of the statute but for the testing requirements of GS 115C-296(a), (2) the applicant's spouse is the subject of a military transfer to North Carolina, and (3) the applicant does not have the necessary teaching experience to qualify for the new testing exemption as described. 

Deletes the proposed language in new subsections (a4) and (a5) in GS 115C-296. Instead, adds new subsection (a4) to require the State Board to license military spouses in accordance with GS 93B-15.1 as amended.

Adds a new section to direct the Department of Public Instruction (DPI) to study the licensure process as it relates to military spouses, as specified. Requires DPI to report its findings to the Joint Legislative Education Oversight Committee by November 15, 2017.

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

Applies the act to applications submitted on or after January 1, 2018.

House committee substitute makes the following changes to the 1st edition. Deletes the content of the previous edition and replaces it with the following.

Sets out General Assembly findings related to local government provision of public enterprise services.

Directs the Legislative Research Commission (Commission) to study issues raised in the stated findings and to make recommendations on the following: (1) fee and charge setting by local governments in the operation of a water or sewer system, (2) proper accounting controls to ensure transparency in budgeting and accounting for expenditures and interfund transfers of public enterprise services by local governments, (3) legislation that may be needed to ensure proper funding of infrastructure maintenance and improvements or the provision of water and sewer services, and (4) legislation that may be necessary to ensure that local governments monitor aging water and sewer infrastructure to ensure proper maintenance and repair. Requires the Commission consult with the Local Government Commission, School of Government, Department of Environmental Quality, NC League of Municipalities, the NC County Commissioners Association, and others. Requires an interim report to the 2017 Regular Session of the General Assembly before it reconvenes in 2018 and requires a final report to the 2019 Regular Session of the General Assembly.

Makes conforming changes to the act's titles.

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

Amends the long title.

Deletes proposed GS 1-505.1 (Power of sale with liens attached to proceeds).

House committee substitute replaces all provisions of the 1st edition as follows.

Amends GS 18B-1000 to define sports and entertainment venueas stadiums, ballparks, and similar facilities with a permanently constructed seating capacity of 3,000 or more, excluding those located on the campus of a school, college, or university.

Amends GS 18B-1001 to add sports and entertainment venues to the list of establishments to which on-premises malt beverage permits, on-premises unfortified wine permits, and mixed beverages permits may be issued.

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

Changes the description of the model regulations the Department of Insurance is directed to adopt from those "as revised in March 2010" to the "most recent" model regulations.

 

House amendment #1 makes the following change to the 2nd edition:

Amends GS 115C-218.45 to amend the definition of charter partners to exclude entities that donate any of the listed properties or services to a charter school in an amount of less than $50,000.

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

Amends proposed GS 115C-218.98 to require charter schools to notify parents of impacted students within 10 days (was, five days) of receiving a communication from the State Board of Education initiating a process that could lead to the dissolution, termination, revocation, nonrenewal, or significant restructuring as a condition of continued operation of the school, or of the board of directors' resolution to dissolve or significantly restructure.

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

Amends proposed GS 75-150 to add to the list of persons the term "roofing repair contractor" does not include: a person generally engaged in the business of selling materials and products that can by used for construction, installation, renovations, repair, maintenance, alteration, or waterproofing of a roof and, as part of that business, offers the installation of the materials and products.

Clarifies that the contracts for roofing repair referred to in subsections (a) and (b) of proposed GS 75-153 are those entered into by a roofing repair contractor. Amends the requirements of the written contract by deleting the language requiring the itemized estimate repair costs to specifically include the cost of raw materials, hourly labor rate, and the number of hours for each item of repair or a unit cost basis. Adds new subsection (c) establishing that additional roofing repair discovered or requested after work is initiated on the written contract, any agreement to address those roofing repairs is subject to the requirements of the statute and proposed GS 75-157 (Limited right to cancel contract if not covered by insurance).

Adds to proposed GS 75-160 to prohibit a roofing repair contractor from acting as an adjuster as defined in GS 58-33-10(2) or a public adjuster as defined in GS 58-33A-5(7). Amends GS 58-33-46(a) and GS 58-33A-45(a) making improperly acting as a roofing repair contractor in violation of GS 75-160 as a cause for the Commissioner of Insurance to suspend, revoke, or refuse to renew any license issued under Articles 33 and 33A (respectively, Licensing of Agents, Brokers, Limited Representatives, and Adjusters; Public Adjusters). Amends GS 58-33A-80 to prohibit a public adjuster from acting as a contractor in the mitigation, repair, restoration of or acting as a salvor of damaged property as related to First Party Property Insurance Losses.

Changes the act's effective date to August 1, 2017 (was, October 1, 2017).

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

Further amends the membership of the NC Longitudinal Data System Board (Board) set out in GS 116E-3 to reduce the Board from 18 to 17 members. Adds the State Treasurer or the Treasurer's designee as a member of the Board. Eliminates the six public members appointed by the General Assembly upon recommendation of three public members each by the President Pro Tempore and the Speaker. Instead, replaces those members with two advisory members each from the membership of the Senate and the House, appointed by the General Assembly upon the respective recommendation of the President Pro Tempore and the Speaker. Adds that the four advisory members of the General Assembly are nonvoting members of the Board and cannot serve as chair or vice-chair. Adds new provisions to subsection (e) providing that one advisory member is to be jointly designated by the Speaker and the President Pro Tempore to call an initial meeting of the Board upon appointment of a majority of the appointed members, and that the chair of the Board must be elected at the initial meeting. 

Modifies Section 5 to delete the provision reinstating GS 120-123(81) as it existed before its repeal.

Includes whereas clauses. 

Amends GS 105-113.35 to increase the tax on tobacco products (excluding cigarettes) from 12.8% to 15% and the tax on vapor products from five cents to seven cents per fluid milliliter. Adds the requirement that, of the funds collected under the statute, the Secretary f Revenue (Secretary) deposit to the General Fund an amount equal to 12.8% of the price of the tobacco products taxed and an amount equal to five cents per fluid milliliter of consumable vapor product; the remainder of the funds must be remitted to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Department of Health and Human Services for providing substance use programs and services.

Amends GS 105-113.5 to increase the tax on cigarettes from two and one-fourth cents to three cents per individual cigarette. Adds the requirement that the Secretary, after accounting for discounts and refunds permitted pursuant to this Part, deposit to the General Fund an amount equal to two and one‑fourth cents per individual cigarette; requires the remainder of the funds be remitted to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Department of Health and Human Services for providing substance use programs and services.

Amends GS 105-113.80 to increase the tax on malt beverages from sixty-one and seventy-one hundredths cents to seventy cents per gallon. Enacts new GS 105‑113.82A requiring the Secretary, after accounting for discounts, refunds, and distributions required pursuant to this Part, of the funds collected from the tax on malt beverages, to deposit to the General Fund an amount equal to sixty‑one and seventy‑one hundredths cents per gallon levied on the sale of malt beverages; requires the remainder of the funds be remitted to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Department of Health and Human Services for providing substance use programs and services.

The above provisions are effective July 1, 2017.

Effective July 1, 2019, the act makes the changes below.

Amends GS 105-113.35, GS 105-113.5 and GS 105-113.80 to undo the tax rate increases in those statutes, by returning the tax rates to the rates as they existed before they were amended by this act. Also deletes the provisions added to those statutes, and repeals new GS 105-113.82A, that required funds to be remitted to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services.

Contains whereas clauses.

Directs the State Board of Education (State Board) to contract for a detailed study on the feasibility and advisability of extending certain teacher contracts from 10 months to 11 months in order to provide teachers with more opportunities for professional development and improve student achievement. Sets out the categories of teachers to which the extended-year contracts would be available, as: (1) teachers with an initial three-year NC teaching license, (2) master teachers, (3) teachers assigned to schools identified as low-performing, and (4) certain teachers holding a current five-year NC teaching license.

Directs the State Board to issue an RFP and select a consultant for the study. Details the information that the RFP must require of the proposals, including (1) the composition of the team of persons that will perform the study, (2) the criteria for selecting and employing a third-party person to work alongside the study team, and (3) a description of the report that will be submitted at the conclusion of the study. Requires the State Board to issue an RFP for the study by September 15, 2017, and for proposals to be submitted by October 15, 2017. Directs the State Board to select a contractor to perform the study by December 15, 2017. Requires the selected consultant to report the study's results to the State Board and the Joint Legislative Education Oversight Committee by April 15, 2018.

Appropriates $100,000 from the General Fund to the State Board for the 2017-18 fiscal year to be awarded to the consultant selected by the State Board for the expenses associated with the study.

Effective July 1, 2017.

Amends GS 115C-263 (Required provision of services), requiring local boards of education to provide school nutrition services in schools in their jurisdiction, including breakfasts and lunch at no cost to students (currently, requires local boards to provide school food services to the extent practicable). Requires all school nutrition services be in accordance with the standards and regulations established by the Food and Nutrition Service of the United States Department of Agriculture (currently, requires services to be in accordance with the standards and regulations recommended by the Superintendent of Public Instruction and approved by the State Board of Education). Makes conforming changes.

Amends GS 115C-264 (Operation), requiring public schools to participate in the School Breakfast Program and the National School Lunch Program established by the federal government and administered by the Department of Public Instruction (currently, only requires participation in the National School Lunch Program and does not specify administration). Places the program under the jurisdiction of the Division of Safe and Healthy Schools Support, School Nutrition Services, of the Department of Public Instruction (DPI; currently, under the jurisdiction of the Division of School Support, Child Nutrition Services, of DPI, and required the program be in accordance with guidelines established by the Food and Nutrition Service of the United States Department of Agriculture). Adds new provisions directing DPI to allocate sufficient supplementary funds to the local school administrative units to provide free breakfast for every student who elects to receive free breakfast, and free lunch to every student who elects to receive free lunch. Provides that these supplementary funds must be sufficient, taking into account other federal assistance, to ensure that each local school administrative unit is compensated for each participating student up to the federal free meal reimbursement rate. Requires any earnings over the cost of operation of school nutrition services to be used to reduce the cost of food, serve healthier food (currently, serve better food), or provide free breakfast and lunch to students. Clarifies that "cost of operation" means the actual cost incurred in the purchase and preparation of food, the salaries of all personnel directly employed (currently, directly engaged) in providing school nutrition services, and the cost of nonfood supplies. Changes the definition of personnel to mean persons employed in the operation of the school nutrition program in the local school administrative unit (currently, means child nutrition supervisors or directors, bookkeepers directly engaged in food service record keeping, and those persons directly involved in preparing and serving food). Deletes the requirement that any cost incurred in the provision and maintenance of school fund services over and beyond the cost of operation must be included in the budget request filed annually by local boards of education with boards of county commissioners. Makes conforming changes.

Enacts GS 115C-218.4 (Charter school nutrition), allowing charter schools to provide school nutrition services for enrolled students by participating in the federally assisted school nutrition programs. Requires all school nutrition services to meet the same standards and regulations described in GS 115C-263, as amended. Directs DPI to allocate sufficient supplementary funds to the charter school to provide free breakfast for every student who elects to receive free breakfast, and free lunch to every student who elects to receive free lunch. Provides that these supplementary funds must be sufficient, taking into account other federal assistance or programs operated by a local unit, to ensure that the charter school is compensated for each participating student up to the federal free meal reimbursement rate. 

Enacts new Part 4, The North Carolina School Breakfast and Lunch Fund, in Article 17 of GS Chapter 115C.

New GS 115C-266 establishes the NC School Breakfast and Lunch Fund (Fund) to provide financing for breakfast and lunch for students in public school, including cooperative innovative high schools, regional schools, charter schools, and lab schools. Requires the Fund to pay for all expenses for administering the Fund. Provides that any interest generated by the Fund is credited to the Fund. Directs the State Board of Education (State Board) to administer the Fund through DPI. Directs designations made to the Fund by individual taxpayers pursuant to GS 105-159.3 (as enacted) and any voluntary donations made directly to the Fund to be deposited in the Fund. Directs the State Board to annually provide, beginning December 15, 2018, to the Joint Legislative Education Oversight Committee a report documenting and evaluating the administration, implementation, and enforcement of new Part 4. Adds that the State Board must set forth all funds received to date and the expected needs of the Fund in the next school year. 

New GS 115C-267 sets out provisions for the administration of the Fund. Requires each local school administrative unit and participating charter school to survey its students to determine how many students elect to receive free breakfast or lunch and report the information to DPI within 30 days of the beginning of each school year. Requires DPI to reimburse the local units and participating charter schools from the Fund within 30 business days of receipt of a request for reimbursement for breakfast or lunch. Sets out further requirements concerning reimbursement. Requires the State Board to use additional State funds provided for funding any shortfall in the Fund for purposes of funding breakfasts and lunches for students electing to receive the meals. 

Enacts GS 105-159.3, requiring the Department of Revenue to allocate to the Fund $3 from the income taxes paid each year by each individual with an income tax liability of at least that amount if the individual agrees. Requires that a taxpayer be given the opportunity to agree or object to that allocation, and requires that each individual must have the option to agree or object to the allocation in the case of a married couple filing a joint return. Details information that must be clearly stated to the taxpayer on individual income tax returns regarding this opportunity. Requires the Department to consult with the State Board to ensure that the information given to taxpayers complies with the intent of the statute. Prohibits any software package used in preparing NC income tax returns to default to an agreement or objection of this opportunity to allocate the $3 of the individual's income tax liability to the Fund. Prohibits a paid preparer of tax returns from marking an agreement or objection for a taxpayer without the taxpayer's consent. Sets forth an explanatory statement that must be included in the instruction for individual income tax returns. Effective for taxes imposed for taxable years beginning on or after January 1, 2017.

Appropriates $200 million in nonrecurring funds from the General Fund to DPI for the 2017-18 fiscal year to provide free breakfast and lunches to students in public schools for the 2017-18 school year, and $200 million in recurring funds for the 2018-19 school year to supplement the Fund.

Effective July 1, 2017, and applies beginning with the 2017-18 school year. 

Appropriates $10 million from the General Fund to the Department of Public Instruction for 2017‑18 to enable school nutrition programs in prekindergarten and elementary schools that participate in the National School Lunch Program to implement nutrition standards adopted by the State Board of Education for elementary schools. Specifies the requirements for the allotment and disbursement of the funds. Requires that local school administrative units use the funds to implement the nutrition standards required by the National School Lunch Program in prekindergarten and elementary schools and to improve the overall operation of its school nutrition program and limits fund use to the purchase of food, equipment, and supplies and to paying the salaries and benefits of school nutrition personnel directly employed in the operation of the school nutrition program. Effective July 1, 2017, and applies beginning with the 2017‑18 school year.

Requires the Rural Economic Development Division within the Department of Commerce to administer a program to award grants to government units or nonprofit corporations located in either: (1) a development tier one or tier two area or (2) a rural census tract in a development tier three area for the purpose of establishing or providing ongoing broadband Internet service for the benefit of the residents of the community. Appropriates from the General Fund to the Rural Economic Development Division $50,000 for 2017‑18 to fund the grant program created. Requires the Rural Economic Development Division, on or before April 1, 2018, to report to the chairs of the House Appropriations Committee on Agriculture and Natural and Economic Resources, the chairs of the Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, and the Fiscal Research Division on the grant program. Effective July 1, 2017.

Directs the State Board of Education, the Department of Public Instruction, the Friday Institute for Educational Innovation, and the University of North Carolina educator preparation programs to collaborate with an experienced provider to develop and implement a comprehensive professional development strategy and solution for the use of technology and digital resources as teaching tools for K-12 students. Provides guidance for the contents of the professional development strategy and solution.

Directs the above listed parties and local boards of education of local school administrative units located within counties determined by the Department of Commerce to be the most economically distressed to collaborate with an experienced provider to implement student digital literacy instruction in kindergarten through eighth grade. Provides requirements for the contents of the curriculum.

Directs the Department of Public Instruction to use up to $1.8 million of the $4 million appropriated to the Department to accelerate implementation of the State's Digital Learning Plan to implement the requirements of this act.

Effective July 1, 2017.

Contains whereas clauses.

Directs the Department of Revenue, in conjunction with local governing entities and boards of commissioners, to study existing property tax exemptions and other benefits to determine whether they are needed or are suitable for repeal. Directs the Department to report its findings to the Revenue Laws Study Committee by January 1, 2018.

Directs the Revenue Laws Study Committee to study property tax benefits currently provided to nonprofit entities, and to report its findings to the 2018 Regular Session of the 2017 General Assembly upon its convening. Provides requirements for the study.

Enacts new GS Chapter 105, Article 61 (Local Government Tax Options).

Enacts three new statutes authorizing municipalities to levy taxes, but prohibits municipalities from levying a tax under more than one of the new statutes at any given time.

New GS 105-605 authorizes governing bodies of municipalities to levy, upon a successful advisory referendum and passage of a resolution to that effect, a prepared food and beverage tax of up to 1.5% of the sales price of prepared food and drink sold within the municipality at retail, in addition to State and local sales tax. Applies to caterers to the extent they serve food in the municipality, regardless of the residency of the caterer. Exempts seven categories of prepared food, including retail sales through vending machines. Provides for the administration of the referendum, including the form of the ballot question. Requires retailers to collect the tax, and provides requirements for collecting the tax. Authorizes municipalities to enter into an agreement with the county for the administration and collection of the tax levied under this statute. Provides that the tax is due to the local administering authority by the 20th day of each month, and that returns are not public records. Applies the uniform meals tax penalty provisions of GS 160A-214.1 to taxes levied under this statute. Provides for a refund of taxes under this statute to nonprofit or governmental entities by application to the Department of Revenue. Authorizes the use of up to 3% of the proceeds of the tax to pay for for administration and collection, and requires the remainder to be used to construct and improve public infrastructure and facilities, and/or for economic development. Supplements, but does not supplant, the authority of a municipality to levy a meals tax pursuant to a local act.

New GS 105-606 authorizes governing bodies of municipalities to levy, upon a successful referendum and passage of a resolution to that effect, an occupancy tax. If a local act authorizes the municipality or county that the municipality is located within to levy an occupancy tax, the combined rate of this tax and that of any local acts may not exceed 6%. Provides for the administration of the referendum, including the form of the ballot question. Requires proceeds of the tax to be used to construct and improve public infrastructure and facilities and/or for economic development. Supplements but does not supplant the authority of a county or city to levy an occupancy tax pursuant to a local act.

New GS 105-607 authorizes governing bodies of municipalities to levy, upon passage of a resolution to that effect, a sales tax of 1/4%, effective after 10 days' public notice. Authorizes the municipality to hold an advisory referendum on whether to levy the local sales and use tax under this statute. Provides for the administration of the referendum, including the form of the ballot question. Requires the municipality to use the net proceeds to construct and improve public infrastructure and facilities, and/or for economic development.

Effective October 1, 2017.

Appropriates $1.65 million in nonrecurring funds in 2017-18 and in 2018-19 to the Department of Environmental Quality (Department) for regional councils of government (COG) to establish water infrastructure and water resources management improvement partnerships.  $100,000 shall be allocated to each COG, and the Department may use up to $50,000 for administrative purposes and regional plans review.  Funds paid to COGs shall be made in two installments after the COG has satisfied periodic reporting requirements consisting of submission of an initial plan of work and subsequent accomplishments and expenditures.  Each COG shall develop a plan of work with defined deliverables and schedules consistent with requirements of the act.

Effective when the act becomes law.

Section 1 reenacts GS 105-151.12 (individual tax credit for real property donation) and recodifies the statute as GS 105-153.11. Amends subsection a of the reenacted and recodified statute to delete the previous descriptions of property use for which the tax credit was eligible and instead authorizes the credit for the following property uses: farmland conservation; buffering military installations and training areas; floodplain protection; or improving public access to public land, water, trails, or beaches.  Deletes subsection (e) to remove obsolete dates.  Adds new subsection (g) to prohibit taking a credit under this statute as a charitable contribution under GS 105-153.5.

Section 2 reenacts GS 105-130.34 (corporate tax credit for real property donation) and makes changes to that statute identical to those made to GS 105-153.11 in Section 1 of the bill.

Effective for tax years beginning January 1, 2017.

Appropriates $1.3 million in recurring funds in 2017-18 and 2018-19 to the Department of Health and Human Services, Division of Social Services, to expand the child welfare postsecondary support program (NC REACH) by lowering the eligibility age for qualified special needs children adopted from foster care from twelve years of age to eight.

Effective July 1, 2017.

Section 1 adds a new Article 3M to GS Chapter 105 establishing affordable housing tax credits.

New GS 105-129.120 authorizes a credit against income tax or gross premium tax for qualified North Carolina affordable housing in an amount equal to the amount of the federal affordable housing tax credit claimed.  The amount of credit is limited to no more than 50% of the tax against which the credit is claimed, including carryforwards, and unused portions of the credit may be carried forward in subsequent tax years.  Pass-through entities may allocate the credit among their owners in their discretion.  Defines qualified North Carolina housing for purposes of the tax credit as being housing for which the federal credit is allowable and which is used for either senior and disabled housing, at least 50% of the financing for the housing is by federally tax-exempt bonds, or the building is located in a area subject to a presidential major disaster declaration. Recapture of all or part of the federal credit must be reported to the Secretary of Revenue and results in forfeiture of the corresponding state tax credit as well as liability for past taxes avoided under the forfeited credit.

New GS 105-129.121 requires the taxpayer to maintain and make available information and records required by the Secretary of Revenue and places the burden of proving eligibility for the credit on the taxpayer.

New GS 105-129.122 establishes reporting requirements for the Secretary.

Effective for tax years beginning January 1, 2018.

Reenacts GS 105-151.11 to reestablish tax credits against state income tax for child care and certain employment-related expenses. GS 105-151.11 was repealed in 2013 effective for tax years beginning January 1, 2014 (S L 2013-316, s. 1.1(b)).

Section 1 creates a new Article 36 in GS Chapter 116 establishing the Board of Postsecondary Education Credentials.

New GS 116-300 sets out legislative findings regarding the importance of postsecondary credentials.  Creates the Board of Postsecondary Credentials comprised of the President of the UNC system, President of the Community College system, Superintendent of Public Instruction, Commissioner of Labor, Secretary of Commerce, President of the NC Independent Colleges and Universities, and the Chair of the State Board of Proprietary Schools.  The board is required to review and make recommendations for developing a statewide system of postsecondary education, identify alternative ways to deliver nondegree credentials, recommend an appropriate percentage of adult citizens to hold postsecondary credentials by 2025, and identify those credentials acceptable for meeting those goals.  Sets out various authorizations for staff, meeting requirements, reporting requirements, and other administrative matters.

Section 2 appropriates $350,000 in 2017-18 and in 2018-19 to the Department of Administration to provide administrative support to the Board.

Effective July 1, 2017.