AN ACT TO REDUCE THE NUMBER OF JUDGES ON THE COURT OF APPEALS TO TWELVE; TO PROVIDE AN APPEAL OF RIGHT FOR TRIAL COURT DECISIONS REGARDING CLASS ACTION CERTIFICATION AND TERMINATION OF PARENTAL RIGHTS; AND TO PROVIDE FOR DISCRETIONARY REVIEW BY THE SUPREME COURT IN CASES WHERE THE SUBJECT MATTER INVOLVES THE JURISDICTION AND INTEGRITY OF THE COURT SYSTEM. Enacted April 26, 2017. GS 7A-27(a)(5), as enacted by this act, and Section 4 are effective January 1, 2019. The remainder is effective April 26, 2017.

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

Modifies proposed GS 1-539.13 to protect drivers exercising due care who injure a person who is participating in a protest or demonstration and is blocking traffic in a public street or highway (was, blocking traffic in a public right-of-way) from civil liability for the injury, unless the actions leading to the injury were willful or wanton.

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

Further amends GS 127A-202, pertaining to reemployment rights of National Guard members, to provide that if the employee's state duty lasted 30 days or less, the employee must make written application to the employee's previous employer for reemployment no later than the first regularly scheduled work period beginning eight hours after the employee has safely traveled from the place of state service to the employee's address.

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

Makes technical changes in Section 1 of the act to correct references to the Senate Appropriations Committee on Health and Human Services, and the Center for Medicare and Medicaid Services.

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

Deletes all provisions of the 1st edition.

Creates a 10-person Task Force on Early Childhood Education to study the governance of State government-wide management and provision of services for early childhood education and development and the role of a centralized agency or office that would be responsible for early childhood-related issues. Provides for the Task Force's membership, governance, staffing, and compensation. Directs the Task Force to study 15 listed topics, including the best methods to implement a statewide longitudinal evaluation of the educational progress of children through grade three. Directs the Task Force to file an interim report by April 1, 2018, and a final report to the 2019 General Assembly by filing the report with the President Pro Tem. of the Senate, the Speaker of the House of Representatives, and the Legislative Library. The Task Force terminates on December 15, 2018, or upon the filing of its final report, whichever comes first.

Makes conforming changes to the act's titles.

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

Eliminates the proposed deletion of, and instead retains, the requirement to obtain a permit to operate wind energy facilities in GS 143-215.116. Makes conforming changes.

Additionally eliminates the proposed deletion of certain permit application requirements in GS 143-215.119(a), retaining existing subdivisions (3), (4), (8) and (9). Adds language to subdivisions (a)(8) and (a)(9) to provide that the noise impact study and shadow flicker impact study requirements of the permit application may be met if the applicant demonstrates it has submitted a study pursuant to local requirements. 

Eliminates the proposed deletion in GS 143-215.119(d) to retain the requirement that the Department of Environmental Quality (DEQ) notify commanding military officers of military installations outside the state of receipt of a complete permit application.

Amends proposed GS 143-215.119A(a) to modify the definition of significant adverse impact to define the term to mean any demonstrable adverse impact upon military operations and readiness, including flight operations research, development, testing, and evaluation and training in North Carolina, that (1) is likely to impair or degrade the ability of the Armed Forces to perform their warfighting missions, (2) would result in a detriment to continued military presence in the State (previously not included), and (3) is unable to be addressed through mitigation measures. Amends subsection (b) to provide that the Department of Military and Veteran Affairs (DMVA) must determine whether to issue a letter to proceed under the statute within the later of (1) 60 days of receiving the results of a formal or informal review of the Department of Defense Siting Clearinghouse or (2) within 60 days of the public hearing required by GS 143-215.119(f) (previously, must determine within 60 days of the public hearing with no alternative). Amends subsection (d), providing that failure of the DMVA to issue a letter within the time period specified permits the applicant to treat the Department's failure to issue the letter as an issuance of a letter of concern as outlined in subsection (f) (previously, DMVA to treat failure as confirmation that the proposed wind energy facility or proposed expansion of a wind energy facility would not cause significant adverse impacts on air navigation routes, air traffic control areas, military training routes, or radar installations). Amends subsection (f) to add local governments with jurisdiction over any major military installation impacted by the letter of concern to the entities with whom DMVA must engage to address issues identified in the letter.

Eliminates the proposed changes in GS 143-215.120(b), which provided that failure of DEQ to act within the time period set forth for permit decisions acts as a grant of the permit, and instead retains the existing language, providing that failure of DEQ to act within the time period set forth in permit decisions as a denial of the permit and permits the applicant to challenge the denial as provided in GS Chapter 150B. Also eliminates the proposed provision in GS 143-215.120(d), providing that obtaining other applicable permits, licenses, or approvals is not a requirement for the consideration and grant of a permit under the statute. Adds new subsection (e) to authorize DEQ to transfer a permit so long as the successor-owner of the wind energy facility submits to the DEQ's written request for transfer of the permit and complies with all the permit terms and conditions once transferred. Prohibits DEQ from imposing new or different permit terms or conditions without prior express consent of the successor-owner. 

Eliminates the proposed deletion of GS 143-215.121 to instead retain the statute in its entirety. Adds a new provision to GS 143-215.121 to permit the applicant to satisfy the financial assurance requirements by demonstrating that it previously met the financial assurance requirements pursuant to local, State, or federal requirements. 

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

Amends GS 20-166.1 to require the Division of Motor Vehicles (Division), where an accident report includes information that an accident was the result of a driver suffering a seizure or a hypogylcemic incident, to cancel or restrict the driver's license of the driver in accordance with GS 20-15(a)(4) upon completing the required evaluation to determine whether the medical condition affects the driver's ability to safety operate a motor vehicle (previously, directed the Division to cancel the driver's license if the Division determines that the medical condition affects the driver's ability to safely operate a motor vehicle). Adds new provision to provide that during the pendency of an appeal from the decision of the Division, the restriction or cancellation is stayed unless the Division makes a determination that a stay would pose an imminent risk of harm. Makes conforming changes.

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

Deletes the proposed language added to GS 143B-139.5A and instead provides the following. Directs the Department of Health and Human Services, Division of Social Services (Division), to develop a standard form to be used to establish an agreement with any state-recognized Indian tribe who requests an agreement to provide specific actions to be taken on behalf of an Indian child under their authority involved in matters of foster care, adoption assistance, and kinship guardianship assistance programs under Title IV-E of the Social Security Act. Requires the agreement to incorporate similar provisions to apply to state recognized tribes as provided in the federal Indian Child Welfare Act (25 USC 1901, et seq.) applicable to Indian children in federally recognized Indian tribes.

Requires the Division to consult with representatives of state-recognized tribes and related organizations that represent state recognized tribes in developing the standard form. 

Directs the Division to submit an interim report to the Joint Legislative Oversight Committee on Health and Human Services by June 30, 2018, providing any resources and actions needed to effectively develop and implement the standard form. Directs the Division to submit a final report including the standard form and any recommendations by December 1, 2018.

Changes the act's long and short titles.

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

Changes the act's long title.

Modifies and adds to the proposed additions to GS 44A-11.2 and now provides as follows.

Establishes that when a potential lien claimant has filed a Notice to Lien Agent for any improvement to real property comprising of one- or two- family dwellings subject to GS 44A-11.1, and has received final payment satisfactory to resolve the Notice to Lien Agent previously filed, the potential lien claimant is required to cancel the Notice to Lien Agent within a reasonable time ( previously, 15 days) of receipt of final payment by using the website approved by the designated lien agent. Additionally permits a potential lien claimant to cancel a Notice to Lien Agent by using the website approved by the designated lien agent for any reason at any time (previously, did not specify by approved website). Deletes provisions detailing information that must be included in the cancellation. Provides that a Notice to Lien Agent cancelled pursuant to this provision has the effect of cancelling and discharging the Notice to Lien Agent and the corresponding protections provided under the statute. Adds that cancelling a Notice to Lien Agent pursuant to this provision does not cancel a claim of lien on real property filed or affecting priority of lien rights pursuant to the statute. 

Establishes that a Notice to Lien Agent that is not otherwise cancelled or renewed pursuant to the statute expires and is discharged five years from the date of filing. Provides that a Notice to Lien Agent can be renewed prior to its cancellation or automatic expiration for one five-year period by using the website approved by the designated lien agent. Renewal extends the date of expiration by five years, with the renewal maintaining and relating back to the original filing date of the Notice to Lien Agent (previously, not provided for). Clarifies that if the Notice to Lien Agent is cancelled or automatically expires and a later Notice to Lien Agent is filed by the potential lien claimant for improvements to the same real property, the later notice only has the protections provided from the date of the filing of the later notice and the later notice does not relate back to or renew the cancelled filing. 

Makes organizational changes.

Makes technical changes to proposed subdivision (9) in GS 58-26-45(b).

Changes the effective date of the act to October 1, 2018 (was, January 1, 2018).

House amendment #1 makes the following change to the 2nd edition (likely means 3nd edition):

Provides that a person who intentionally or negligently inflicts physical damage upon a vehicle while installing or removing an immobilization device may be liable for damages.

Provides that proposed GS 20-219.5 does not prohibit a vehicle owner or lessee parked in a manner that does not violate that statute from recovering from an immobilization company for liability for damages for improperly affixing an immobilization device to the vehicle.

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

Amends GS 143-166.14 to provide for reassignment of duties pursuant to a physician or physician assistant's restrictions (1st amendment only provides for reassignment pursuant to a physician's restrictions).

House amendment #1 adds new Section 5 to the act. Amends GS 105-275 to exempt from property tax a mobile classroom or modular unit that is occupied by a school and is wholly and exclusively used for educational purposes as defined in GS 105-278.4(f), regardless of the ownership of the property. Adds that the term school means a public school, including any school operated by a local board of education in a local school administrative unit; a nonprofit charter school; a regional school; a nonprofit nonpublic school regulated under Article 39 of GS Chapter 115C; or a community college established under Article 2 of GS Chapter 115D. Effective for taxes imposed for taxable years beginning on or after July 1, 2017.

House amendment #2 makes the following changes to Section 1 of the act.

Deletes the proposed changes to GS 115C-218.7(b). Instead amends the statute to provide that enrollment growth of more than 20% is considered a material revision of the charter for any charter school identified as low-performing. Makes conforming change to remove the requirement that the State Board of Education must find that the charter school is not currently identified as low-performing in order to approve additional enrollment growth of greater than 20%. Adds new subsection (b1) to the statute. Establishes that enrollment growth of more than 30% is considered a material revision of the charter for any charter school that is not identified as low-performing, and requires the State Board of Education to make four findings, as specified, before approving additional enrollment growth of greater than 30% (substantively identical to the previously proposed changes to GS 115C-218.7(b)).

Deletes the proposed changes to GS 115C-218.8(1). Instead amends the statute to provide that it is not considered a material revision of a charter, and does not require State Board approval, for a charter school to increase its enrollment during the charter school's second year and annually thereafter in accordance with GS 115C-218.7(b), as amended, and GS 115C-218.7(b1), as enacted. 

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

Amends GS 132-1.4A. Makes an organizational change to proposed amendments to definitions, and defines citizen review board. Authorizes a law enforcement agency to release a recording for any of five listed purposes, replacing the current three permissive purposes. The new purposes include disclosure, in a closed session, to the city or town council or a citizen review board upon recommendation of the city or town manager and majority vote of the town council, subject to the execution of a confidentiality statement by the council, board, or commission members.

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

Amends the long and short titles.

Amends GS 163-294.5 to make the filing deadline for notices of candidacy for municipal office the second Tuesday following the first Friday in July preceding the election (current law: third Friday in July. First edition: third Tuesday in July).

Amends GS 163-291 to make the deadline for seeking party nomination for partisan municipal or district office 12:00 noon on the second Tuesday following the first Friday in July preceding the election. Deletes references to a second primary.

Amends GS 163-279 to provide that GS 163-111 (Determination of Primary results) does not apply (1st edition: GS 163-227.1, regarding second primaries, does not apply). Provides for the State Board of Elections to break any tie vote by method of random selection.

Amends SL 2017-6, Section 22, to make GS 163-30 and GS 163-31, both as amended by SL 2017-6 (Bipartisan Board of Elections and Ethics Enforcement), effective May 1, 2017 (was, July 1, 2017).

Amends GS 163-30, as amended, to make appointment of county boards of election for 2017, and every two years thereafter, occur on the second Tuesday in June (current law: second Tuesday in July for 2017, and the last Tuesday in June in 2019 and every two years thereafter).

Amends GS 163-31, as amended, to make county boards of elections meet at noon on the Tuesday following the last Monday in June (was, Tuesday following the third Monday in July), to take the oath of office and elect a chair and secretary. Makes the meeting for appointing precinct chief judges and election judges occur on the third Monday in July (was, third Monday in August).

Makes a conforming change to GS 163-41.

Section 1

Directs the State Board of Education (State Board) to establish the Professional Teachers and School Administrators Accountability Pilot Program (Program) to evaluate the impact of education reform initiatives provided in the act to support and enhance the education profession by investing additional State funds in the eight specified local school administrative units. Specifies the eight local units to be: Alleghany County Schools, Catawba County Schools, Craven County Schools, Cumberland County Schools, Henderson County Schools, Hertford County Schools, Union County Schools, Wake County Schools, and Watauga County Schools.

Requires the local units to implement the Program set forth in this act beginning with the 2017-18 school year and ending with the 2031-32 school year. Directs the State Board to adopt any rules necessary to implement the act.

Section 2

Directs each local school administrative unit to use the provided monthly teacher salary schedules for the 2017-20 fiscal years for licensed personnel of the public schools who are classified as teachers. Directs the State Board to adjust the salary schedule for subsequent fiscal years to be consistent with any increases in the State salary schedule adopted by the General Assembly. The salary schedules are based on years of teaching experience and range from:  $4,046 for 0 years of experience to $5,896 for 25 or more years of experience for the 2017-18 Salary Schedule; $4,592 for 0 years of experience to $6,691 for 25 or more years of experience for the 2018-19 Salary Schedule; and $5,138 for 0 years of experience to $7,487 for 25 or more years of experience for the 2019-20 Salary Schedule. Also details salary supplements for certain teachers paid on these salary schedules as specified. 

Makes the first step of the salary schedule for school psychologists, school speech pathologists licensed as such at the master's degree level or higher, and school audiologists who are licensed as audio pathologists at the master's degree level or higher equivalent to Step 6 of the "A" Teacher salary schedule. Provides these employees a salary supplement each month of 10% of their monthly salary. Provides that these employees are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year or doctoral degree level.

Makes the 26th step of the salary schedule for school psychologists, school speech pathologists, and school audiologists meeting the academic preparation levels and licensing requirements as described in this act 7.5% higher than the salary received by these same employees on the 25th step of the salary schedule.

Requires longevity be provided in the same manner as teachers paid on the State salary schedule in local school administrative units not participating in the Program.

Defines teacher to include instructional support personnel for purposes of the Section.

Appropriates the following funds from the General Fund to the Department of Public Instruction (DPI) to be allocated to participating local school administrative units to implement the Section: $62,700,000 in recurring funds for the 2017-18 fiscal year; $119,200,000 in recurring funds for the 2018-19 fiscal year; and $176,400,000 in recurring funds for the 2019-20 fiscal year.

Section 3

Directs each participating local school administrative unit to provide a salary supplement in accordance with Section 2 for teachers classified as "M" teachers for certain additional teachers and instructional support personnel who do not otherwise qualify to be classified as "M" teachers under the State salary schedule but who spend at least 70% of their work time as described.

Requires that teachers and instructional support who are paid salary supplements to have their eligibility verified annually. Provides that salary supplements can be discontinued for failing to meet the requirements for that year.

Prohibits teachers and instructional support who earn an advanced degree in school administration from receiving a salary supplement for academic preparation unless they serve as an assistant principal or principal.

Directs the State Board of Education to allocate State funds to participating local school administrative units for this purpose.

Section 4

Directs each local school administrative unit to use the provided monthly teacher salary schedules for the 2017-18 fiscal year for principals and assistant principals employed by the local board of education.  Directs the State Board to adjust the salary schedule for subsequent fiscal years to be consistent with any increases in the State salary schedule by the General Assembly. The salary schedules are based on years of experience, ranging from $5,393 for 0-9 years of experience to $8,151 for 36 years of experience for assistant principals, and $5,963 to $11,640 for principals depending on classifications and years of experience. Details the classification of assistant principals and principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, based on the number of teachers supervised, with Principal I classification being fewer than 11 teachers supervised, and Principal VIII classification being more than 100 teachers supervised. Provides that the number of teachers supervised includes teachers and assistant principals paid from State funds only and does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants. Establishes that the beginning classification for principals in alternative schools and in cooperative innovative high school programs is the Principal III level. Adds that principals in alternative schools who supervise 33 or more teachers should be classified according to the number of teachers supervised (Principal IV level or higher).

Provides that a principal must be placed on the step on the salary schedule that reflects the total number of years of experience as a certified employee of the public schools and an additional step for every three years of experience serving as a principal on or before June 30, 2009. Requires a principal or assistant principal to continue to receive any additional State-funded percentage increases earned for the 1997-98, 1998-99, and 1999-00 school years for improvement in student performance or maintaining a safe and orderly school. Provides for a monthly salary supplement for principals and assistant principals with certification based on academic preparation, at $126 for the six-year degree level, and $253 for the doctoral degree level. 

Directs that longevity pay for principals and assistant principals be as provided for State employees under the NC Human Resources Act. 

Provides for the salary schedule of a principal in circumstances where the principal is reassigned to a higher or lower job classification. Adds that the provisions apply to all transfers on or after the effective date of the Section, except transfers in school systems that have been created or will be created by merging two or more school systems, which are exempt from the transfer provisions for one calendar year following the date of the merger. 

Provides for participants in an approved full‑time master's in‑school administration program to receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. Limits the stipend from exceeding the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. Requires the Principal Fellows Program or the school of education where the intern participates in a full‑time master's in‑school administration program to supply the DPI with certification of eligible full‑time interns.

Establishes that, for the 2017-20 fiscal years, the placement on the salary schedule of an administrator with a one-year provisional assistant principal's certificate be at the entry-level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.

Appropriates the following from the General Fund to DPI to be allocated to local school administrative units to implement the above provisions: $2.7 million in recurring funds for the 2017-18 fiscal year; $5.4 million in recurring funds for the 2018-19 fiscal year; and $8 million for the 2019-20 fiscal year.

Section 5

Directs each participating local school administrative unit to establish a program that utilizes advanced teaching roles and organizational models linking teacher performance and professional growth to salary increases for classroom teachers. Defines classroom teacher to mean a teacher who works in the classroom providing instruction at least 70% of the instructional day and who is not instructional support personnel. Details four purposes of the program, including enabling local school administrative units to create innovative compensation models that focus on classroom teacher professional growth and student outcomes, and establishing organizational changes related to compensation by utilizing local plans to sustain evidence-based teaching practices that have the capacity to be replicated throughout the State. Delineates eight elements the local boards must include in the program, including: (1) descriptions of the advanced teaching roles; (2) salary supplement information as specified; and (3) the implementation plan, as described. Describes five purposes for which funds awarded to participating local school administrative units can be used, including salary supplements for advanced teaching roles and development of professional development courses. Provides that local school administrative units receiving funding under the program can exceed the maximum class size requirements for kindergarten through third grade notwithstanding GS 115C-301.

Appropriates from the General Fund to DPI the following funds to be allocated to participating local school administrative units to implement the Section: $23 million for the 2017-18 fiscal year; $26 million for the 2018-19 fiscal year; and $29 million for the 2019-20 fiscal year.

Section 6

Directs each participating local school administrative unit to establish a policy to grant interval educational sabbatical leave to classroom teachers according to a teacher's years of service to NC public schools. Details eligibility requirements for a teacher to request up to a six-month or one-year educational sabbatical leave, and requirements during and after grant of educational sabbatical leave. Prohibits a classroom teacher from being granted educational sabbatical leave more frequently than every five years. Defines a classroom teacher as a teacher who works in the classroom providing instruction and who is not instructional support personnel. 

Appropriates from the General Fund to DPI the following funds to be allocated to participating local school administrative units to implement the Section: $10 million for the 2017-18 fiscal year; $11,170,000 for the 2018-19 fiscal year; and $12.4 million for the 2019-20 fiscal year.

Section 7

Directs each participating local school administrative unit to develop a mentor program to provide ongoing support for teachers entering the profession. Requires the local board to develop certain guidelines for the program, consistent with State Board policy, and to develop criteria for selecting mentor participants. Requires each new teacher to have one mentor and each mentor to have one teacher mentee. Requires the mentor to prepare all of the mentee's lesson plans while the mentee has fewer than two years of experience, and requires the mentor to observe and counsel the mentee during that time. Directs the mentor to refer the mentee to the Teacher Support Program established in Section 12 of the act if the mentor believes that the mentee is suffering from severe stress, exhaustion, or disillusionment related to the profession.

Appropriates from the General Fund to DPI $11,750,000 in recurring funds for the 2017-18 fiscal year to be allocated to participating local units to provide a $1,500 monthly stipend to each teacher serving as a mentor. Adds that these funds are in addition to a supplement received pursuant to Section 3 of the act.

Section 8

Directs each participating local school administrative unit to establish a professional development program for principals and assistant principals to prepare school leaders in the described ways. Appropriates $350,000 in recurring funds from the General Fund to DPI for the 2017-18 fiscal year to be allocated to participating local units to provide this professional development.

Section 9

Directs each participating local school administrative unit to establish a Teaching Fellow Program to provide a four-year scholarship loan of $6,500 per year to NC high school seniors interested in preparing to teach in NC public schools.  Directs the local units to adopt stringent standards for awarding the scholarship loans to ensure that only the best high school seniors receive them. Directs the local boards to administer the program in cooperation with educator preparation programs selected by the local board. Directs the local board to form a review committee to assist in identifying the best high school seniors for the program as specified. 

Sets out the details of the scholarship loans and permits the loans to be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the local board. Directs the local board to forgive the loan if (1) the recipient teaches for four years in the local school administrative unit within seven years after graduation; (2) the recipient teaches for three consecutive years (unless the recipient takes an approved leave of absence) at a public school located in the local school administrative unit within seven years after graduation that at the time the recipient accepts employment with the unit, the unit is a low-performing school system; or (3) the local board finds it impossible for the recipient to teach for four years within seven years after graduation at a public school in the unit because of the death or permanent disability of the recipient. Establishes that the local board is responsible for the collection of a loan awarded under the statute if the loan repayment is outstanding for more than 30 days.

Appropriates $85,000 from the General Fund to DPI for the 2017-18 fiscal year to be allocated to participating local school administrative units for expenses related to recruitment and selection of Teaching Fellows. Appropriates $232,000 from the General Fund to DPI in recurring funds for the 2018-19 fiscal year to be allocated to participating local units to award forgivable loans in the amount of $6,500 per recipient beginning with the 2018-19 academic year.

Section 10

Directs each participating local school administrative unit to establish and administer a Loan Repayment Assistance Program for Teachers to attract qualified teachers to the education field and address the educational needs of the unit. Directs the local board to adopt any necessary rules concerning the application process and eligibility, including the provided provisions as follows.

Allows any eligible teacher to apply for a repayment assistance loan under the program to repay all or a portion of the teacher's eligible debt by receiving repayment assistance loans for up to six years for eligible debt accrued toward an undergraduate degree and for up to six years for eligible debt accrued toward a graduate degree. Defines eligible teacher as a classroom teacher currently licensed in North Carolina who is rated as "highly effective" on the most recent North Carolina Teacher Evaluation instrument through the North Carolina Educator Evaluation System or the equivalent on an out‑of‑state teacher's state or district instrument. Adds that for the purposes of this act, a highly effective classroom teacher is a teacher who receives a rating of at least "accomplished" on each of the teacher evaluation standards on the North Carolina Teacher Evaluation instrument and who exceeds expected student growth based on teacher evaluation data as calculated by the State Board of Education or equivalent on an out‑of‑state teacher's state or district evaluation system. Defines eligible debt as the outstanding principal, interest, and related fees from loans obtained for undergraduate or graduate educational expenses made by government or commercial lending institutions or educational institutions but does not include loans made by a private individual or family member.  

Requires that the eligible teacher must have been employed for at least one year in the local school administrative unit before applying for the initial year of repayment assistance. Requires the eligible teacher to include in the teacher's application for repayment assistance a signed statement of intent to remain employed in the unit for a period of at least four years following each year the eligible teacher receives a repayment assistance loan and agree to repay in full any repayment assistance loans disbursed to the eligible teacher if the teacher fails to complete the repayment assistance period due to voluntarily leaving employment.  Bars eligibility for a repayment assistance loan if the applicant is in default on any obligation to a government or commercial lending institution or educational institution until those financial obligations are satisfied. Provides that the local board may waive ineligibility for this reason at its sole discretion.

Requires the local board to award repayment assistance loans of up to $6,500 per calendar year for an eligible teacher that meets the criteria set forth in subsection (b) in the order in which applications are received. Requires all repayment assistance loans to be evidenced by promissory notes made payable to the Authority. Directs the local board to forgive the repayment assistance loan in the amount of each annual disbursement once the eligible teacher remains employed in the unit for four years following the receipt of funds. Requires an eligible teacher who received a repayment assistance loan in a previous year to provide documentation to the local board that the funds in the amount of the loan were submitted to the government or commercial lending institutions or educational institutions for repayment of the teacher's eligible debt.

Provides that an eligible teacher who voluntarily leaves the qualifying employment will be required to repay in full any funds that were paid to the teacher, with interest accruing at the annualized rate applicable to the eligible debt being repaid, if not yet forgiven under this subsection at the time of termination. Establishes that an eligible teacher who cannot fulfill the employment requirements due to death or disability, taking a leave of absence, or being involuntarily terminated can no longer be eligible for a repayment assistance loan under the Program but is not responsible for repaying the outstanding amount of loans previously disbursed to the eligible teacher during the repayment assistance period.

Appropriates the following funds to DPI to be allocated to participating local school administrative units to implement the provisions of the Section: $282,500 for the 2017-18 fiscal year and $508,500 for the 2018-19 fiscal year.

Section 11

Directs each participating local school administrative unit to include in the unit's technology plan a plan to equip all students in grades seven through 12 with personal learning technology statewide. Details the required components of the plan, including a component promoting equal opportunity for and providing meaningful access to personal learning technology and resources for students who are economically disadvantaged or have special needs. 

Appropriates $3.5 million from the General Fund to DPI in recurring funds for the 2017-18 fiscal year for the participating local units to implement the described plan in this Section. Allows the local board to phase in deployment of personal learning technology beginning with seventh and eight grade students and then use available funds to deploy the equipment to high school students. 

Section 12

Directs each participating local school administrative unit to establish a Teacher Support Program to help teachers cope with stress, exhaustion, and disillusionment related to the profession by providing counseling services. Authorizes the local board to contract with a private, for-profit, or nonprofit employee assistance program corporation. Details related rules the local board must adopt for the implementation of the Program, including the development of a referral system, professional and licensure requirements for staff, and the development of a toll-free, 24-hour hotline for teachers. Makes any records related to teacher participation confidential and prohibits local boards from considering teacher participation for purposes of teacher performance evaluation or making any employment decision.

Appropriates $100,000 in recurring funds for the 2017-18 fiscal year from the General Fund to DPI to be allocated to participating local units to provide a Program pursuant to the above provisions.

Section 13

Directs each local school administrative unit to report to DPI and the Program Evaluation Division (PED), by November 15 of each year for the duration of the pilot, on the progress of the Professional Teachers and School Administrators Accountability Pilot Program as specified. Provides that the initial report is to be submitted by November 15, 2019, and the final report by November 15, 2031.

Section 14

Directs the PED to conduct a measurability assessment of the components of the Program established by the act and whether the Program should be continued, modified, or expanded statewide based on the Program's impact on student performance and outcomes, improving the retention and availability of employing high-quality teachers in NC public schools, and providing a return on investment of State funds. Directs PED to begin the assessment beginning in 2027 and compare data from the 2017-18 fiscal year and data collected up until the 2031-2032. Directs PED to report to the 2033 General Assembly on the results of the assessment.

Section 15

Makes the act effective July 1, 2017.

Part I. Housing

Amends GS 41A-4, which delineates unlawful discriminatory housing practices, to refer to the protected status of another person as the basis for unlawful discrimination instead of listing specific protected classes (currently, race, color, religion, sex, national origin, handicapping condition, or familial status). Adds protected status to the defined terms in GS 41A-3 and defines the term to mean a person's race, color, national origin, religion, age, disability, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information. Makes conforming changes to use a person's "protected status" language to replace specific classes of persons throughout GS 41A-4 and GS 41A-5 (concerning proof of a violation of GS 41A-4).

Amends GS 41A-6, which exempts from GS 41A-4 (except for subdivision (a)(6)) religious institutions and organizations operated by religions institutions or organizations that give preference to members of the same religion in a real estate transaction, so long as membership in that religion is not restricted by a protected status, other than religion (previously, specified race, color, sex, national origin, handicapping condition, or familial status).

Part II. Employment

Amends GS 143-422.2 to establish that it is the public policy of the State to protect and safeguard the right and opportunity of all persons to seek, obtain and hold employment without discrimination or abridgment on account of race, religion, color, national origin, age, sex, sexual orientation, gender identity, disability, marital status, familial status, military or veteran status, or genetic information (previously, only protected race, religion, color, national origin, age, sex or handicap) by employers which regularly employ one or more employees (was, 15 or more employees).

Makes conforming changes to expand employment protections to those same classes added to GS 143-422.2 by this act, to GS 126.16 (Equal opportunity for employment and compensation by State departments and agencies and local political subdivisions) and GS 126-34.02(b) (concerning the appeal process for agency employment discrimination, harassment, and retaliation issues to be heard as contested cases).

Part III. Public Accommodations

Enacts Article 49B to GS Chapter 143, Access to Public Accommodations, to be known as the Equal Access to Public Accommodations Act. Provides a legislative declaration that it is the public policy of the State to protect and safeguard the right and opportunity of all individuals within the State to enjoy fully and equally the goods, services, facilities, privileges, advantages, and accommodations of places of public accommodation free of discrimination because of race, religion, color, national origin, sex, sexual orientation, gender identity, disability, marital status, familial status, military or veteran status, or genetic information.

Establishes that it is not discrimination on the basis of sexual orientation or gender identity for a public accommodation to provide separate bathrooms or changing facilities based on gender. Mandates places of accommodation to provide access to facilities based on a person's gender identity. Defines places of public accommodation to have the same meaning as defined in GS 168A-3(8), but excludes any private club or other establishment that is not in fact open to the public.

Authorizes the Human Relations Commission (Commission) in the Department of Administration to receive, investigate, and conciliate complaints of discrimination in public accommodations, and directs the Commission to effect an amicable resolution. Provides that in the event the Commission cannot effect an amicable resolution of the charges of discrimination, the complainant and the Commission can proceed with an enforcement action in accordance with GS 41A-7 (State Fair Housing Act enforcement provisions).

IV. Credit

Enacts GS 75-43 to prohibit discrimination by any person engaged in any form of lending money in this State, or to residents of this State, in the extension of credit on the basis of race, color, national origin, religion, age, disability, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information. Allows complainants concerning violations of this statute to file a grievance with the Human Relations Commission. Directs the Commission to effect an amicable resolution, and in the event the Commission cannot effect an amicable resolution, the complainant and the Commission can proceed with an enforcement action in accordance with GS 41A-7, as similarly provided in GS 143-422.13 enacted by this act. Makes a violation of this statute an unfair trade practice in violation of GS 75-1.1.

Part V. Insurance

Amends GS 58-3-25 to prohibit discriminatory practices by insurers because of an individual's race, color, national or ethnic origin, religion, sex, marital status, familial status, sexual orientation, gender identity, disability, military or veteran status, or genetic information (previously, only protected race, color, national or ethnic origin).

Part VI. Education

Amends GS 115C-47 to require each local board of education to adopt a policy to establish that the local board of education and school personnel employed by the local board must not discriminate on the basis of race, color, national origin, religion, age, disability, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information. Requires that the policy include that any person who claims to have been injured by an unlawful discriminatory practice or who reasonably believes that he or she will be irrevocably injured by an unlawful discriminatory practice may file a complaint with the North Carolina Human Relations Commission. Requires the Commission to then work with the relevant parties to develop an amicable resolution to the charge of discrimination, and allows the complainant and the Commission to proceed with an enforcement action if the Commission is unable to effect an amicable resolution of the charges.

Amends GS 115C-218.45 to expand the basis on which a charter school must not limit admission to also include color, age, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information; removes creed and ancestry. Allows a charter school that serves only certain grade levels to limit admission based on age. 

Amends GS 115C-218.55 to prohibit a charter school from discriminating on the basis of national origin, race, color, religion, age, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, genetic information, or disability (was, only ethnicity, national origin, gender, or disability). Allows any person who claims to have been injured by an unlawful discriminatory practice or who reasonably believes that he or she will be irrevocably injured by an unlawful discriminatory practice to file a complaint with the North Carolina Human Relations Commission. Requires the Commission to then work with the relevant parties to develop an amicable resolution to the charge of discrimination, and allows the complainant and the Commission to proceed with an enforcement action if the Commission is unable to effect an amicable resolution of the charges.

Repeals GS 115C-521.2, which required local boards of education to require every multiple occupancy bathroom or changing facility that is designated for student use to be designated for and used only by students based on their biological sex.

Amends GS 115C-562.5 to prohibit a nonpublic school from discriminating on the basis of race, color, national origin, religion, age, disability, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information. Allows any person who claims to have been injured by an unlawful discriminatory practice or who reasonably believes that he or she will be irrevocably injured by an unlawful discriminatory practice to file a complaint with the North Carolina Human Relations Commission. Requires the Commission to then work with the relevant parties to develop an amicable resolution to the charge of discrimination, and allows the complainant and the Commission to proceed with an enforcement action if the Commission is unable to effect an amicable resolution of the charges.

Amends GS 115D-77 to expand upon the State Board of Community Colleges and local board of trustees nondiscrimination policy to also prohibit discrimination on the basis of color, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, and genetic information. Adds that the State Board and each board of trustees must give equal opportunity for employment and compensation of personnel at community colleges without regard to marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information, in addition to the already listed categories. 

Amends GS 116-11 to require the UNC Board of Governors to adopt a policy to provide that UNC and its affiliates and personnel employed by UNC and its affiliates must not discriminate on the basis of race, color, national origin, religion, age, disability, sex, marital status, familial status, sexual orientation, gender identity, military or veteran status, or genetic information. Requires that the policy include that any person who claims to have been injured by an unlawful discriminatory practice or who reasonably believes that he or she will be irrevocably injured by an unlawful discriminatory practice may file a complaint with the North Carolina Human Relations Commission. Requires the Commission to then work with the relevant parties to develop an amicable resolution to the charge of discrimination, and allows the complainant and the Commission to proceed with an enforcement action if the Commission is unable to effect an amicable resolution of the charges.

Part VII. Human Relations Commission

Amends GS 143B-391 by expanding the North Carolina Human Relations Commission’s duties to also include administering the provisions of  the new Equal Access to Public Accommodations Act; GS 143-422.3 (concerning investigating charges of discrimination received from the Equal Employment Opportunity Commission), GS 143-422.13 (concerning investigating complaints of discrimination in public accommodations), GS 75-43 (concerning investigating discrimination by lenders), GS 115C-47(64) (concerning investigating discrimination by a local board of education or school personnel), GS 115C-218.55 (concerning investigating discrimination by a charter school), GS 115C-562.5 (concerning investigating discrimination by a nonpublic school), GS 115D-77 (concerning investigating discrimination by a community college), and GS 116-11 (concerning investigating discrimination by  the UNC system).

Part VIII. Appropriation

Appropriates $1 million from the General Fund to the Department of Administration, Human Relations Commission, to provide grants to requesting counties and municipalities to be used to support nonprofit community organizations that support youth identifying as lesbian, gay, bisexual, transgender, or queer.

Appropriates $788,076 in recurring funds from the General Fund to the Department of Administration, Human Relations Commission, for 2017‑18. Requires that $545,407 from those funds be used for operating expenses and $242,669 be used to fund four specified new positions.

Effective July 1, 2017.

Part IX. Nondiscrimination Preemption and Moratorium Repealed

Repeals GS Chapter 143, Article 81A, which preempted state agencies, boards, offices, departments, institutions, branches of government, including the UNC System and the NC Community College System, and political subdivisions of the State, including local boards of education, from regulating access to multiple occupancy restrooms, showers, or changing facilities. 

Repeals Section 3 of SL 2017-4, which prohibited local governments from enacting or amending ordinances regulating private employment practices or regulating public accommodations until December 1, 2020. Makes conforming deletions. 

Part X. Effective Date

Unless otherwise indicated, effective when the act becomes law and applies to causes of action arising on or after that date.

Section 1

Provides that it is the intent of the General Assembly to reestablish a North Carolina Health Insurance High Risk Pool if the provisions of the Patient Protection and Affordable Care Act (PL 111-148) are repealed. Adds that it is the intent of the General Assembly to appropriate funds to assist in offsetting the cost of premiums for coverage available through a North Carolina Health Insurance High Risk Pool, upon its creation, and seek any federal funding that may be available for this purpose. 

Sections 2, 3, 4, and 5

Enacts new Part 8 of Article 50 of GS Chapter 58, with new GS 58-50-400 setting forth defined terms that apply to the new Part.

Enacts GS 58-50-401, establishing the NC Health Insurance High Risk Pool, subject to oversight of the Board of Directors of the Pool (Board), to consist of the Commissioner of Insurance (Commissioner) as a nonvoting member and eleven members appointed as specified in the act. Clarifies that the Pool is a nonprofit entity and not an instrumentality of the State.

Requires the Board to submit a Plan of Operation to the Commissioner within 180 days after the appointment of the Board. Specifies the content of the Plan of Operation for the Pool. Grants to the Pool the general powers and authority granted to health insurers under State laws, and grants specific authority as described, including the power to issue insurance policies in accordance with the requirements of new Part 8. Requires that the Plan be approved in writing by the Commissioner. Requires that the Executive Director operate the Pool so that the cost of providing the benefit plans during any calendar year is not anticipated to exceed the total income the Pool expects to receive from policy premiums and other revenue available to the Pool. Authorizes the Board to impose an enrollment cap or suspend enrollment if estimated costs are anticipated to exceed income, except that any enrollment cap or suspension cannot apply to federally defined eligible individuals who are eligible to enroll in the Pool pursuant to GS 58-50-415(a)(6). Provides for indemnification in performance of duties for the Pool or its agents or employees, and Executive Director, as well as the Commissioner or the Commissioner's representative. Establishes that the members of the Board are public servants under GS 138A-3(30) subject to the provisions of GS Chapter 138A.

Enacts GS 58-50-405 (Administrator). Directs the Executive Director, with the approval of the Board and through a competitive bidding process, to select one or more insurers to administer the Pool. Requires the Executive Director to evaluate bids based on criteria established by the Board, as specified. Establishes that the Administrator serves for a period specified in the contract, subject to removal for cause and any terms, conditions, and limitations of the contract. Requires the Executive Director to invite eligible entities to submit bids to serve as Administrator at least one year before the expiration of each period of service by an Administrator, and requires the selection of an Administrator for the succeeding period be made at least six month before the end of the current period. Details the duties of the Administrator. Requires the Administrator to submit regular reports to the Executive Director and the Board, with the contract specifying the frequency, content, and form of the report. Requires the Administrator to determine net written and earned premiums, the expense of administration, and the paid and incurred losses for the year and report the information to the Executive Director and the Board at the close of each calendar year. Requires the contract to address the Administrator's pay.

Enacts GS 58-50-410 (Risk Pool rates and policy forms). Requires the Pool to adopt and modify rates, rate schedules, rate adjustments, expense allowances, agent referral fees, claim reserve formulas, and any other actuarial function appropriate to operate the Pool. Provides for the adjustment of rates and schedules for specified appropriate factors, in accordance with established actuarial and underwriting practices.  Requires the Pool to determine the standard risk rate by considering premium risk rates charged by other insurers offering health insurance coverage to individuals and using reasonable actuarial techniques. Requires that Pool rates be 135% to 175% of rates established as applicable for individual standard rates, to be adjusted annually, at the time of annual renewal. Authorizes the Executive Director to develop incentive programs with discounts, and provide for premium surcharges, with Board approval. Limits provider reimbursement rates under Pool coverage to rates allowed for providers under the Medicare Program for services covered by Medicare and directs the Board to establish reimbursement rates for services for which Medicare has not established an allowed rate. Requires providers rendering medical care to an insured to accept the payment amount established under this provision.

Requires the Pool to submit all premium rates and schedules and amendments to the Commissioner for approval before use. Requires that the Pool provide individuals enrolled in the Pool with at least 45 days’ notice of any change to the Pool premium rates or rate schedules. Requires the Pool to submit all policy forms, riders, endorsements, and applications for coverage to the Commissioner for approval before use. Provides that the provisions of GS Chapter 58 that apply to health benefit plans and policy forms of health insurers generally apply to the benefit plans offered and policy forms used by the Pool except for any provisions that are specifically treated otherwise under new Part 8.

Enacts GS 58-50-415 (Eligibility for Pool coverage). Provides that individuals who are NC residents are eligible for Pool coverage if evidence is provided of any of the following: (1) a notice of rejection or refusal to issue substantially similar health insurance coverage for health reasons by an insurer, but a rejection or refusal by an insurer offering only stop‑loss, excess loss, or reinsurance coverage with respect to the applicant is not sufficient evidence of eligibility; (2) an offer to issue health insurance coverage only with a conditional rider that limits coverage for the individual's high‑risk medical condition; (3) a refusal by an insurer to issue health insurance coverage except at a rate exceeding the Pool rate; (4) a diagnosis of the individual with one of the medical or health conditions listed by the Board in accordance with this statute, provided that an individual diagnosed with one or more of these conditions is eligible for Pool coverage without applying for other health insurance coverage; (5) qualification as a federally defined eligible individual, whether or not currently covered by an insurer under that qualification; (6) an individual who is legally domiciled in this State and is eligible for the credit for health insurance costs under the Trade Adjustment Assistance Reform Act of 2002, section 35 of the Internal Revenue Code of 1986, as amended, providing that each dependent of an individual who is eligible for Pool coverage under this subdivision shall also be eligible for Pool coverage; (7) the individual has current individual health insurance coverage at a rate exceeding the Pool rate; or (8) the individual is eligible for and has not exhausted current Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation coverage at a rate exceeding the Pool rate and provides evidence of eligibility for Pool coverage under any of the subdivisions (1) through (4) of this subsection. Directs the Board, upon recommendation of the Executive Director, to adopt a list of medical or health conditions for which a person is eligible for Pool coverage under subdivision (4) as just described, and allows the Board to amend the list as appropriate.

Sets out that an individual is not eligible for Pool coverage if any of the six conditions apply, including that the individual is determined to be eligible for enrollment in the State Medical Assistance Plan or in Medicare, unless the Pool offers Medicare supplemental insurance coverage. Details seven circumstances that trigger coverage under the Pool to cease, including the individual failing to make the required payments. Adds that an individual who ceases to meet the eligibility requirements of the statute can be terminated at the end of the Pool policy period for which premiums have been paid.

Enacts GS 58-50-420 (Unfair referral to Pool). Establishes that it is an unfair trade practice for an employer, an insurer, an insurance producer, or a third-party administrator to refer an individual employee to the Pool or arrange for an individual employee to apply to the Pool for the purpose of separating that employee from a group medical care benefit plan provided in connection with the employee's employment. Does not prohibit an insurer or insurance producer from informing an individual of other coverage options.

Enacts GS 58-50-425 (Minimum Pool benefits). Requires the Pool to offer at least two types of benefit plans for eligible individuals and at least one choice of a health savings account. Sets out requirements of the benefits plans. Directs the Board to adopt rules regarding the lifetime limits and per-individual coinsurance and deductibles for the health insurance products offered by the Pool, with the initial rules including no less than a $1 million lifetime limit and a combined annual limit of up to $5,000 per individual on coinsurance and deductibles. Provides for the Board's adjustment of the rules. Allows the Board to establish categories of diseases that can be more seriously impacted by lifetime limits when adopting or adjusting lifetime limits.

Enacts GS 58-50-430 (Preexisting conditions). Provides for preexisting condition exclusions under Pool coverage as specified. Prohibits a preexisting condition exclusion from being applied to a federally defined eligible individual or an individual who is eligible for the Pool under GS 58-50-415(a)(6). Provides for reduction of the pre-existing condition exclusion by the aggregate of the period of creditable coverage as described.

Enacts GS 58-50-435 (Nonduplication of benefits). Establishes that the Pool is the payor of last resort of benefits whenever any other benefit or source of third-party payment is available. Further establishes that the Pool has a cause of action against an eligible person for the recovery of the amount of benefits paid that are not for covered expenses, with benefits due from the Pool permitted to be reduced or refused to setoff against any amount recoverable.

Enacts GS 58-50-440 (NC Health Insurance High Risk Pool Fund), establishing the Fund and describing the Fund's revenue. Provides for disbursements from the Fund. Requires the State Health Plan and any successor to the plan to pay an annual surcharge to the Fund of $1.50 per member per year based on enrollment of active Plan members and their dependents covered under the Plan.

Enacts GS 58-50-445 to provide for complaint procedures for applicants or participants in the Pool; GS 585-50-450 to require annual audits of the Pool; GS 58-50-455 to exempt the Pool from all State taxes; GS 58-50-460 to authorize the Board and the Commissioner to adopt rules under GS Chapter 150B to implement the new Part; and GS 58-50-465 to prohibit any collective action required by the new Part to be the basis of any legal action, penalty, or liability against the Pool or insurer.

Enacts GS 58-50-470 (Pool financing; Board reporting). Requires the Board to oversee the methods of financing the Pool and review the specified information on a regular basis. Requires the Board to annually report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by March 1. Sets forth the required content of the report.

Makes conforming changes to GS 105-228.5B and GS 58-5-75(b).

Enacts new GS 58-3-277 requiring an insurer to provide a written notice of the existence of the NC Health Insurance High Risk Pool to an applicant for individual health insurance coverage upon the insurer determining the applicant eligible for Pool coverage. Requires the notice be provided within 10 business days after the insurer determines Pool eligibility. 

The above provisions are effective 90 days after the repeal of section 2704 of PL 111-148 (the Patient Protection and Affordable Care Act), as amended, that prohibits preexisting condition exclusions or other discrimination based on health status. Directs the Department of Insurance to certify to the Revisor of Statutes that the repeal has occurred no more than 30 days after the repeal of section 2704 of PL 111-148. Adds that in the certification, the Department of Insurance must include the session law number of this act.

Section 6

Directs the Department of Insurance (Department) to report to the Joint Legislative Commission on Governmental Operations by March 1, 2018, on recommendations and considerations regarding the Pool. Details the required contents of the report. Appropriates to the Department $50,000 for the 2017-18 fiscal year for the purposes of carrying out any research necessary to complete the report.

Section 7

Sets the effective date of the act as July 1, 2017, except as otherwise provided.