Senate amendment #1 amends the requirements set forth in new GS 20-7(q2) concerning deaf or hard-of-hearing designation by the Division of Motor Vehicles (DMV). Deletes the proposed language of subdivision (3), which provided that medical certification or examination was not required to make a request pursuant to the subsection for the designation. Instead, establishes that a person is considered to be deaf or hard of hearing if they provide verification or documentation substantiating their hearing loss that is recommended by the Division of Services for the Deaf and Hard of Hearing as acceptable (Division). Directs the DMV to consult with the Division to identify acceptable forms of verification that do not result in undue burden to the person requesting the designation. Lists documentation that must be acceptable, including: (1) documentation of certification or examination by a medical, health, or audiology professional showing evidence of hearing loss; (2) affidavit executed by the person, their parent, or guardian attesting to the person's hearing loss; or (3) documentation deemed by the DMV to qualify as satisfactory proof of the person's hearing loss.
The Daily Bulletin: 2017-06-22
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The Daily Bulletin: 2017-06-22
| Intro. by Insko. | GS 20 |
Senate committee substitute makes the following changes to the 1st edition.
Deletes proposed amendments to GS 147-86.59 (Certification required).
Deletes the text repealing SL 2015-68, Section 2, which regards the destruction or disposition of property with no substantial commercial value under the NC Unclaimed Property Act.
Senate committee substitute makes the following changes to the 1st edition.
Deletes all provisions of the 1st edition and replaces it with the following.
Amends the long title.
Enacts new GS Chapter 58, Article 93 (Prepaid Health Plan Licensing Act) as follows.
New GS 58-93-1 names the article.
New GS 58-93-2 Defines eight terms. Defines enrollee as a beneficiary enrolled to receive Medicaid or NC Health Choice services through a Prepaid Health Plan.
New GS 58-93-3 directs the Commissioner of Insurance (Commissioner) to work with the Department of Health and Human Services (DHHS) to maximize federal reimbursement of DHHS's expenses in administering this Article to the extent allowed under federal law.
New GS 58-93-4 authorizes the Commissioner to contract with professionals to expedite and complete the application process, examinations, and other regulatory activities required under this Article, with costs to be reimbursed by the applicant or licensee. Exempts contracts under this statute from GS 114-2.3 and GS 147-17, which relate to hiring private counsel, and GS Chapter 143, Articles 3 (Purchases and Contracts), 3C (Contracts to obtain consultant services), and 8 (Public contracts), and accompanying rules and procedures regarding procurement, contracting, and contract review.
New GS 58-93-5 authorizes any entity to apply to the Commissioner for a license to operate a prepaid health plan (PHP, as defined). Requires license applications to be verified by an officer or authorized representative of the applicant, to be in a form prescribed by the Commissioner, and to include thirteen listed articles of information, including a copy of the applicant's organizational documents, if any. Provides that already-licensed health organizations in the State under GS Chapter 58 are recognized as PHPs under this Article, and shall be issued a PHP license upon the licensed health organization's demonstration to the Commissioner of compliance with this Article. Licensed health organizations are not required to file PHP applications, pay an application fee, or provide notice required under this statute as a condition of receipt of a PHP license. Licensed health organizations are subject to the remaining requirements of this Article unless otherwise exempted. Requires PHPs to file notice describing any significant modification of the operation set out in the articles of information required with an application for approval by the Commissioner prior to the modification. The Commissioner's failure to disapprove a modification within 90 days of the filing deems the modification to be approved. Requires PHPs to file all subsequent changes in the information or forms required by the Article with the Commissioner. Directs the Commissioner to regularly provide DHHS with information and documentation related to licensing and regulation of PHPs.
New GS 58-93-10 authorizes the Commissioner to make any examination the Commissioner deems expedient prior to issuing or continuing any PHP license. Directs the Commissioner to issue a license upon the payment of the application fee under GS 58-93-14, and upon being satisfied on all of five listed points, including that the applicant has complied with the application requirements of GS 58-93-5. Provides that a license shall be denied only after compliance with GS 58-93-75.
New GS 58-93-14 directs the Commissioner to establish two fees: an application fee of up to $2,000 for entities filing an application to be licensed as a PHP under this Article, and an annual PHP license continuation fee of up to $5,000. Provides that PHP licenses continue in full force and effect subject to timely payment of the annual license continuation fee and subject to any other provisions of this Chapter applicable to PHPs.
New GS 58-93-15 requires all deposits under this statute to be administered under Article 5 of this Chapter. Directs the Commissioner to require a minimum deposit of $500,000 or higher for the protection of enrollees. For licensed health organizations, this deposit is in addition to any other deposit required by the Commissioner. Deposits under this statute are not subject to GS 58-62-95 (Use of deposits made by impaired insurer).
New GS 58-93-20 prohibits PHPs from entering exclusive management or custodial agreements unless the agreement is first filed with the Commissioner and approved under this statute within either 45 days of filing or a reasonable extended period as specified by notice from the Commissioner given within 45 days of the filing. Directs the Commissioner to disapprove an agreement if the Commissioner determines that the agreement does any of five listed things, including subjecting the PHP to excessive charges.
New GS 58-93-25 provides that directors, officers, trustees, managers, and partners of PHPs who receive, collect, disburse, or invest funds in connection with the PHP's activities have a fiduciary relationship to the enrollees and the State with regard to those funds.
New GS 58-93-30 subjects every PHP under this Article to GS 58-2-165 (regarding required regular statements to the Commissioner).
New GS 58-93-35 requires the funds of a PHP to be invested or maintained only in securities, other investments, or other assets permitted by State law for the investment of assets constituting the legal reserves of life insurance companies or other such securities or investments as the Commissioner may permit. Creates two exceptions, including one for investing to purchase, lease, construct, renovate, operate, or maintain a hospital, medical facility, ancillary equipment to such, or any property reasonably required for the transaction of a PHP's business. Directs the Commissioner to disallow investment if the Commissioner determines that the investment would substantially and adversely affect the financial soundness of the PHP and endanger its ability to meet its obligations.
New GS 58-93-40 authorizes the Commissioner to examine the affairs of any PHP as the Commissioner determines is necessary to protect the interest of the enrollees or the State, and at least once every five years. Requires examinations to be conducted under GS 58-2-131 through GS 58-2-134 (regarding scope, authority, and procedure of examinations).
New GS 58-93-45 authorizes the Commissioner to order a PHP whose financial condition indicates that its continued operation might be hazardous to enrollees, creditors, the general public, or the State to take action as may reasonably be necessary to rectify the existing condition, including specified steps such as reducing the total amount of present and potential liability for health care services by reinsurance, or four other specified actions. Authorizes the Commissioner to consider any of the standards under GS 58-30-60(b) (for determining whether the continued operation of a licensed insurer is hazardous) in determining whether the PHP's continued operation is hazardous. Remedies under this statute are in addition to the remedies and measures available to the Commissioner under Article 30 of this Chapter (Insurers Supervision, Rehabilitation, and Liquidation). Directs the Commissioner to notify the Secretary of DHHS prior to taking any action against a PHP under this statute.
New GS 58-93-50 directs the Commissioner to require deposits under GS 58-93-15. Requires PHPs to maintain minimum capital and surplus of the greater of $1 million or the amount required under the risk-based capital provisions of Article 12 of this Chapter. Requires PHPs to at all times maintain an adequate plan for protection against insolvency acceptable to the Commissioner. Authorizes the Commissioner to consider a preapproved reinsurance agreement covering excess loss, stop loss, or catastrophes, or any other arrangements offering protection against insolvency required by the Commissioner, in determining the adequacy of such a plan.
New GS 58-93-55 directs the Commissioner to require each PHP to have a plan for handling insolvency that allows for health care services to be provided to enrollees until the PHP's non-voluntary enrollees are enrolled in another PHP. Authorizes the Commissioner to further require the plan to have any of five listed things, including insolvency reserves.
New GS 58-93-60 requires PHPs, when determining liability, to include an amount estimated in the aggregate to provide for unearned capitation payments, the payment of all claims for health care expenditures that have been incurred that are unpaid and for which the PHP may be liable, and the expense of adjustment or settlement of these claims. Requires liabilities to be computed under the Commissioner's adopted rules, as specified.
New GS 58-93-65 authorizes the Commissioner to suspend or revoke a PHP license if the Commissioner finds that the PHP meets any of five listed requirements, including that the PHP is operating in a manner that would be hazardous to its enrollees or to the state. Requires licenses to be suspended or revoked only after compliance with GS 58-93-75. Prohibits PHPs whose licenses are suspended from enrolling additional enrollees, except newborn children or other newly acquired dependents of existing enrollees, or engaging in advertising or solicitation, for the duration of the suspension. Directs a PHP with a revoked license to immediately wind up its affairs and conduct no further business except as essential to the orderly conclusion of the PHP's affairs. Prohibits the PHP from engaging in advertising or solicitation. Authorizes the Commissioner to permit further operation of the PHP as would be in the best interest of the enrollees and the State. Directs the Commissioner to consult with the Secretary of DHHS prior to taking any action against a PHP under this statute.
New GS 58-93-70 deems the rehabilitation or liquidation of a PHP to be the rehabilitation or liquidation of an insurance company, to be conducted under the supervision of the Commissioner under Article 30 of this Chapter. Authorizes the Commissioner to apply for an order directing the Commissioner to rehabilitate or liquidate a PHP on one or more grounds under Article 30, or when the Commissioner is of the opinion that the PHP's continued operation would be hazardous either to the enrollees or to the State. Gives priority to DHHS's claims over all other claims in GS 58-30-220 (Priority of distribution), except for claims in GS 58-30-220(1) (the receiver's expenses for the administration and conservation of assets of the insurer).
New GS 58-93-75 directs the Commissioner to give written notice to a PHP when the Commissioner has cause to believe that grounds for the denial of an application for a license, or for suspension or revocation of a license, exist. Provides requirements for the contents of the notice, including the date for a hearing. Directs the Commissioner, after the hearing or failure of a PHP to appear at the hearing, to take action as is deemed advisable and issue written findings, to be mailed to the PHP. Directs the Commissioner to provide DHHS with an explanation and a copy of the findings. Subjects the Commissioner's action to judicial review in the Superior Court in Wake County. Applies GS Chapter 150B (Administrative Procedure Act) to proceedings under this statute, to the extent they do not conflict with this statute.
New GS 58-93-80 authorizes the Commissioner, in addition to or in lieu of suspending or revoking a license under GS 58-93-65, to proceed under GS 58-2-70 (Civil penalties or restitution for violation, administrative procedure), provided that the PHP has reasonable time to remedy the defect in its operations that gave rise to the procedure under that statute. Makes violation of this Article or any other provision of this Chapter that expressly applies to PHPs a Class 1 misdemeanor. Authorizes the Commissioner to give notice of a violation to any PHP that the Commissioner for any reason has cause to believe is violating or will violate any provision of this Chapter that expressly applies to PHPs, and arrange a conference with the alleged violators for the purpose of attempting to ascertain the facts, and to arrive at a means to correct or prevent the violation. Notice under this statute must also be provided to the Secretary of DHHS, who may be present at any proceedings under this statute. Proceedings under this statute are not governed by any formal procedural requirements, and may be conducted as the Commissioner deems appropriate. Authorizes the Commissioner to issue an order directing a PHP to cease and desist from a violation. Authorizes the respondent to such an order to request a hearing on the question of whether violations have occurred, which shall be conducted under GS Chapter 150B, Article 3A (Other administrative hearings), and subject to judicial review under GS Chapter 150B, Article 4. Authorizes the Commissioner to institute a proceeding to obtain injunctive relief from a violation, either instead of a cease and desist order or after refusal to comply with such an order. Directs the Commissioner to consult with the Secretary of DHHS prior to any action against a PHP under this statute.
New GS 58-93-85 provides that all applications, filings, and reports under this Article are public documents unless otherwise determined by the Commissioner to be proprietary information. Information shared between DHHS and the Department of Insurance under this Article is confidential and not open to public inspection, unless the information is considered a public record or otherwise subject to disclosure. Such information that is not open to public inspection shall not be disclosed unless otherwise agreed to by both the Commissioner and the Secretary of DHHS.
New GS 58-93-90 exempts PHPs that are not licensed health organizations and PHPs that are licensed health organizations in regards to activities that relate solely to the PHP's Medicaid or NC Health Choice Operations from this Chapter. Does not limit the Commissioner's authority over a PHP that is a licensed health organization in relation to activities that do not relate solely to the PHP's Medicaid or NC Health Choice Operations.
New GS 58-93-91 authorizes the Commissioner to adopt rules to carry out this Article.
New GS 58-93-92 lists 45 statutes that are applicable to PHPs in the manner in which they are applicable to insurers, including GS 58-2-125 (Authority over all insurance companies; no exemptions from license).
Provides a severability clause for new GS Chapter 58, Article 93.
Amends GS 58-62-21 (Coverage and limitations). Provides that GS Chapter 58, Article 62 (Life and Health Insurance Guaranty Association), does not provide coverage for health care benefits under the State's Medicaid program or NC Health Choice program.
Amends GS 58-30-220 (Priority of distribution). Adds claims of providers, for prepaid health plans under GS Chapter 58, Article 93, who are obligated by statute, agreement, or court order to hold enrollees harmless, except for copayments and deductibles, from liability for health care services provided and covered by a PHP, to the order of distribution of claims. The new type of claim is listed as subsection (2b), making it fourth in priority out of seven types of claims.
Enacts new GS 111-47.4. Provides that DHHS may operate or contract for the operation of food or vending services at State property or facilities allocated to the Department of Administration or the Department of Insurance, with net proceeds of revenue generated by those services to be credited to the Division of Services for the Blind within DHHS for the purposes in GS 111-43 (Installation of coin-operated vending machines). Does not remove any exemption granted under GS 111-42(c) (defining State property or State building).
Amends GS 66-58 (Sale of merchandise or services by governmental units). Replaces the provision exempting the operation of lunch counters by DHHS as blind enterprises from the prohibition on the governmental sale of goods in competition with State citizens in subsection (a), with a provision exempting the operation of food and vending services under GS Chapter 111, Article 3 (Operation of Vending Facilities on State Property).
Amends GS 146-29.1 (Lease or sale of real property for less than fair market value) to exempt leases entered into by DHHS for the operation of food and vending services under GS Chapter 111, Article 3, from that statute.
The act is effective when it becomes law, and the amendments to GS 111-47.4, GS 66-58, and GS 146-29.1 expire five years from that date.
Senate committee substitute makes the following changes to the 1st edition.
Further amends GS 135-6 (pertaining to the Retirement System for Teachers and State Employees) and GS 128-28 (pertaining to the Retirement System for Counties, Cities and Towns). Establishes individual civil immunity for a person serving on the medical boards of the Systems, except to the extent covered by insurance, for any act or failure to act arising out of that service. Sets forth five exceptions to civil immunity under these provisions: (1) when the person is not acting within the scope of that person's official duties; (2) when the person was not acting in good faith; (3) when the person committed gross negligence or willful or wanton misconduct that resulted in the damages or injury; (4) when the person derived an improper financial benefit, either directly or indirectly, from the transaction; or (5) when the person incurred the liability from the operation of a motor vehicle.
Deletes the language of proposed GS 105-259(b)(39a) to instead permit the disclosure of tax information to furnish the Department of State Treasurer, periodically upon request: the State tax return of a beneficiary, or the wage and income statement of a beneficiary, or the NC-3 information of an employer, for the purpose of substantiating the beneficiary's statement required to be submitted under GS 135-5(e)(4), GS 135-109, or GS 128-27(e)(4); or for the purpose of assisting a fraud or compliance investigation in accordance with GS 135-1(7b), GS 135-1(11b), GS 135-6(q), GS 128-21(7b), GS 128-21(11c), and GS 128-28(r); so long as no federal tax information is disclosed under this subdivision unless the disclosure is permitted by section 6103 of the Internal Revenue Code [previously, only permitted disclosure to furnish the Department of State Treasurer with information it requests related to an investigation or audit under GS 135-6(q) or GS 128-28(r)].
Directs the Department of Revenue and the State Treasurer to develop and implement an information exchange system no later than June 30, 2018, as set out above. Directs the departments to enter into a confidential information sharing agreement settling transfer protocols, required security measures, audit mechanisms, and other measures designed to protect confidential information.
Senate committee substitute makes the following changes to the 2nd edition.
Modifies proposed amendments to GS 58-86-90 (Exemptions of pensions from attachment; rights nonassignable). Includes erroneous payments to members in the listed retirement and disability plans, as well as State Health Plan premiums or claims paid on behalf of any member who is later determined to have been ineligible for those benefits, or unentitled to those amounts, in the amounts that may be offset against any retirement allowance, return of contributions, or any other right accruing under the Article to the same person, the person's estate, or designated beneficiary.
Modifies proposed amendment to GS 135-4(e). Replaces the currently proposed rate of creditable sick leave being reported to the Retirement System with one that divides the member's total hours of sick leave at retirement by the hours per month such leave was awarded under the employer's duly adopted sick leave policy, as the policy applied when the leave was accrued.
Modifies proposed amendment to GS 128-26(e) to make changes identical to those in GS 135-4(e).
Deletes Section 8, which amended GS 150B-1, GS 135-6(n), and GS 128-28(o).
Senate committee substitute makes the following changes to the 1st edition.
Deletes all provisions of the previous edition, including the long and short titles. Now provides the following.
Directs the Secretary of the Department of Health and Human Service (DHHS), or the Secretary's designee, to convene a work group to study the delivery of naturopathic medicine in North Carolina. Details reasons for why certification of professionals practicing naturopathic medicine is necessary, including protecting citizens from fraud or damage to their health. Specifies composition of the work group.
Directs the work group to develop recommendations necessary to provide appropriate oversight and regulation of naturopathic medicine in the State including the three specific considerations provided, one being whether the practice of naturopathic medicine should constitute the practice of medicine or surgery as defined in GS Chapter 90.
Directs the work group to report its findings and recommendations to the Joint Legislative Oversight Committee on Health and Human Services by January 31, 2018, including those topics specified. Also requires the report to include recommendations on appropriate fees for application, examination, certification, renewals, and late renewals as appropriate, to cover the costs associated with oversight.
| Intro. by Faircloth. | STUDY |
Senate committee substitute makes the following changes to the 2nd edition.
Amends GS 135-9 (Exemption from garnishment, attachment, etc.). Authorizes overpayment of benefits orerroneous payments to members in specified retirement and disability systems, including benefits paid to, or State Health Plan premiums or claims paid on behalf of, any member or beneficiary who is later determined to have been ineligible for those benefits or unentitled to those amounts, to be offset as currently authorized (this provision already exists in the statute, without the italicized language).
Amends GS 128-31 (Exemptions from execution). Makes changes identical to those in GS 135-9.
Amends GS 120-4.29. Currently, this statute contains a provision that is similar, but not identical, to the provisions discussed above. Amends that provision to make it identical with the above provisions, as amended (adds the Disability Income Plan of North Carolina to the specified retirement and disability systems, and includes benefits paid to, or State Health Plan premiums or claims described above, within the overpayments or erroneous payments).
Amends GS 127A-40. Provides that pensions for National Guard members are not subject to attachment, garnishments, or judgments against the member or former member entitled to them, nor are rights in the fund or pensions or benefits assignable, subject to exceptions within GS 110-136, and in connection with a court-ordered equitable distribution under GS 50-20. Adds a provision identical to the overpayment or erroneous payment offset provisions described above.
Amends proposed GS 135-48.16 (Fraud detection and audit programs). Provides that the plan's authority to examine and make copies of information under (a)(1) is to the extent it directly relates to a specific investigation or audit. Allows for confidentiality agreements with agencies providing documentation to the plan. Amends the information that may be accessed under (a)(2) to refer to the listed information relating to grants or contracts from the federal government that is administered by the State health Plan(italicized text was not in the 2nd edition). Requires authorized representatives assisting the State Health Plan Division Staff to have a HIPAA business associate agreement with the State Health Plan and enter into a HIPAA data sharing agreement with any vendor whose records they copy.
Deletes amendments to GS 135-48.5(a), GS 135-48.22, and GS 135-48.30(a).
Senate amendment makes the following change to the 2nd edition.
Amends the definition ofplatoon to refer to a group of individual commercial vehicles travelingat close following distances in a unified manner as specified (currently, does not specify the following distance).
Makes the act effective on August 1, 2017 (was, July 1, 2017).
| Intro. by Torbett. | GS 20 |
Senate committee substitute makes the following changes to the 3rd edition.
Changes the act's long and short titles.
Deletes the provisions amending Section 37.2(e) of SL 2016-94, concerning the remainder of funds appropriated to Environmental Quality Incentives Program projects in the Appropriations Act of 2016.
Deletes the provisions amending GS 143-215.72, which provided that when the Secretary of Environmental Quality issued new and revised policies for review of grant applications for water resource development projects and disbursement of funds under that statute, those policies did not apply to a project already approved for funding unless the project applicant agreed to the policy change.
Amends GS 113-201, authorizing the Marine Fisheries Commission to adopt rules to establish Shellfish Aquaculture Enterprise Areas to facilitate shellfish aquaculture opportunities through advanced siting and preapprovals from relevant federal and State agencies. Establishes that the Secretary of the Department of Environmental Quality (Secretary) can only issue nontransferrable leases within designated Shellfish Aquaculture Enterprise Areas. Adds that any leased parcel within a Shellfish Aquaculture Enterprise Area that is relinquished or terminated must revert to the State and be made available to other applicants.
Amends GS 113-201.1, defining Shellfish Aquaculture Enterprise Area to mean an area designated and permitted by the Department of Environmental Quality (DEQ) that is subdivided into parcels and made available for shellfish aquaculture leasing.
Amends GS 113-203, concerning the transplanting of oysters and clams. Clarifies that it is unlawful to transplant oysters or clams from public grounds or permitted aquaculture operations utilizing waters in the prohibited, restricted, or conditionally approved classification (currently, does not expressly refer to prohibited classification) to private beds except when the transplanting is done in accordance with the provisions of the statute and implementing rules. Modifies subsection (a3) to provide that it is lawful to transplant seed oysters or seed clams taken from permitted aquaculture operations that use waters in the prohibited, restricted, or conditionally approved classification to private beds pursuant to the specified permit and its restrictions, unless the Secretary determines that nursery or shellfish in an area will present a risk to public health (currently, does not depend upon the Secretary's public health determination; also does not currently expressly refer to prohibited classification).
Modifies GS 113-168.4(b), allowing the sale of fish reared in (currently, of oysters or clams from) a hatchery or aquaculture operation to the holder of an Aquaculture Operation Permit, an Under Dock Culture Permit, or a shellfish cultivation lease.
Directs the Division of Marine Fisheries to review its Fishery Management Plan for river herring, as specified, and report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources by December 15, 2017, regarding the continuing validity and scientific basis for the continued status of both species as overfished. Provides that if the Division of Marine Fisheries does not have an adequate scientific basis to review the status of both species, then the report must include cost estimates for the restoration of spawning and nursery area surveys and age composition work for all coastal streams within the State that historically contained significant river herring fisheries.
Authorizes the Division of Water Resources of DEQ and the State Property Office to negotiate with appropriate federal agencies an agreement for the State to assume responsibility for acquiring dredged material easement sites appropriate for maintenance dredging of the Atlantic Intracoastal Waterway between Beaufort Inlet and the Virginia border in exchange for the reduction in size and possible change in location of dredged material disposal easement sites currently held by the federal government. Details required terms of this agreement.
Amends GS 143-215.73F(b), authorizing funds of the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund to be used to provide funding for siting and acquisition of dredged disposal easement sites associated with the maintenance of the Atlantic Intracoastal Waterway north of Beaufort Inlet and south of the border with the Commonwealth of Virginia, under a memorandum of agreement between the State and the federal government.
Amends GS 130A-309.09B(a), adding to the requirements for local governments to establish and maintain a solid waste reduction program, to forbid local governments from prohibiting by ordinance or otherwise the disposal of construction and demolition debris in any sanitary landfill permitted for the disposal of construction and demolition debris, which landfill has a valid and operative franchise agreement and is otherwise properly permitted pursuant to GS 130A-294.
Enacts new Part 8D in Article 21 of GS Chapter 143, establishing the Coastal Storm Damage Mitigation Fund (Fund). Provides for the sources of funding in the Fund. Limits the use of revenue credited to the Fund to costs associated with beach nourishment, artificial dunes, and other projects to mitigate or remediate coastal storm damage to the ocean beaches and dune systems of the State. Requires cost-sharing for any project funded by revenue from the Fund and sets forth cost-sharing requirements based on whether the projects are located in a development tier one area. Provides for non-state entities that contribute to the Fund for a particular project or group of projects to request that the contribution be returned if it has not been spent or encumbered within two years of receipt of the contribution by the Fund.
Adds a severability clause.
The Daily Bulletin: 2017-06-22
House committee substitute makes the following changes to the 2nd edition.
Amends GS 143-215.25. Defines mill dam and run-of-river dam and amends the proposed definition ofprofessionally supervised dam removal to refer to the voluntary removal of a low or intermediate hazard mill dam or run-of-river dam (2d edition did not specify which kind of dams).
Amends GS 143-214.7C. Amends the caption to read Prohibit the requirement of mitigation for certain impacts; establish threshold for mitigation of impacts to streams. Makes organizational changes and updates the statute to reflect changes made in SL 2017-10.
Deletes Section 3, regarding amending 15A NCAC 2K.0223 (Dam Height and Storage Determination).
House committee substitute makes the following changes to the 2nd edition.
Changes the act's long and short titles. Modifies the previous provisions and adds new provisions as follows.
Amends proposed GS 18B-1114.7, concerning spirituous liquor special event permits. Removes two of the 12 limitations previously set forth for consumer tastings conducted pursuant to the permit. Removes the provision prohibiting venues from allowing more than three different permit holders to conduct a consumer tasting at any event without board approval. Also removes the provision requiring permit holders to provide written notice of a consumer tasting to the Alcoholic Beverage Control (ABC) Commission (Commission) at least 48 hours before the tasting. Modifies the provision authorizing permit holders (previously, permit holders conducting the events) to provide point-of-sale advertising materials and advertising specialties to consumers at consumer tastings.
Amends GS 18B-112 by adding a new subsection (b1) authorizing the Eastern Band of Cherokee Indians tribe to adopt an ordinance allowing for the sale of alcohol beginning at 10:00 AM on Sunday pursuant to the licensed premises' permit issued under the authority of GS 18B-112(d).
Makes conforming changes to further amend GS 18B-1004(c), providing for new GS 18B-112(b1).
Deletes the proposed changes to GS 75-40(b), concerning rebates. Also deletes previous directives to the Commission to amend its rules no later than December 31, 2017, to permit each of six listed things, including rebate offers by members of the alcoholic beverage industry for the purchase of alcoholic beverages from specified suppliers, and to eliminate any rule or requirement that does any of four listed things, including prohibiting offers and advertisements of "2 for 1," "buy 1 get 1 free," "buy 1 get another for a __ (nickel, penny, etc.)," and any other similar statement.
Amends GS 18B-1001 to permit holders of specified alcoholic beverage sale permits to engage in the retail sale of malt beverages and unfortified wine, respectively, for off-premises consumption in a cleaned and sanitized container (currently requires the container to be cleaned, sanitized, and resealable). Does not affect the current authorization for retail sale of beverages for consumption on the premises, or of beverages in the manufacturer's original container. Makes technical changes. Requires the Commission to adopt rules to implement these changes no later than 60 days after the act becomes law; allows for the adoption of temporary rules.
Enacts new GS 18B-1120, which authorizes breweries, wineries, and distilleries to store their beverages at a noncontiguous storage location approved by the Alcohol and Tobacco Tax and Trade Bureau. Requires the permitee to notify the Commission of any storage location used pursuant to this provision. Adds that any storage location used pursuant to this provision is considered part of the premises of the brewery, winery, or distillery manufacturing the alcoholic beverages.
Amends GS 18B-1001(3), as amended by this Act, to authorize the issuance of an on-premises unfortified wine permit to retail businesses.
Amends GS 18B-1104 to authorize the holder of a brewery permit to give its products to customers, visitors, and employees (currently employees and guests) for consumption on its premises, and clarifies that this provision does not exclude customers and visitors at the brewery as part of a paid or complimentary brewery tour.
Enacts new GS 18B-1121 (Authority to sample for sensory analysis, quality control, or educational purposes), authorizing commercial permittees under GS Chapter 18B, Article 11, to consume samples of alcoholic beverages it is licensed to sell, free of charge, for purposes of sensory analysis, quality control, or education.
Amends GS 18B-306 (Making wines and malt beverages for private use) to further authorize individuals to make, possess, and transport wines and malt beverages for organized affairs, exhibits, and competitions. Eliminates references to native wine, and deletes the provisions specifying what methods of making wines and malt beverages are allowed for private use. Prohibits the sale of wine and malt beverages made under this statute. Authorizes the production of wine or malt beverages (currently, beverages) under this statute without an Alcoholic Beverage Control permit. Makes additional technical and organizational changes.
Amends GS 18B-1116 to extend the exemption to the prohibitions concerning financial interest in and lending things of value to wholesalers or retailers, for breweries qualifying under GS 18B-1104(8), to those qualifying under GS 18B-1104(7), with respect to transactions with retail business on their premises or other retail locations allowed under GS 18B-1104(8), as described below.
Amends GS 18B-1104(7) to require holders of brewery permits to receive the appropriate permit under GS 18B-1001 prior to sale at the brewery or any additional retail location authorized, to require any beverages sold by the brewery to be approved by the Commission for sale in North Carolina, and to authorize the breweries to sell any alcoholic beverages approved for sale in North Carolina by the Commission and approved for sale in that area. Authorizes holders of brewery permits to further receive malt beverages manufactured by the permittee in some other state for transshipment to wholesalers licensed under GS Chapter 18B. Authorizes holders of brewery permits that produce agricultural products used by the brewery in the manufacture of malt beverages, in an area where the sale of malt beverages has not been authorized, to sell the malt beverages owned by the brewery and approved by the Commission for sale in North Carolina at the brewery for on- or off-premise consumption, in accordance with an obtained permit, regardless of the results of any local malt beverage election, upon receiving approval from the governing body of the city where the brewery is located, or if not within a city, the governing body of the county where the brewery is located. Requires city or county approval, whichever is applicable, be done by resolution of the governing body at a public meeting after proper notice and public hearing, as specified. Authorizes holders of brewery to sell malt beverages produced under subdivision (6a) of that statute (contract breweries), and clarifies that a sale at any additional retail location under subdivision (8) is not considered a wholesale sale for purposes of Article 13.
Amends GS 18B-1104 to direct the Commission to confirm by October 1 of each year that the holder of a brewery permit complies with GS 18B-900(a)(8). Authorizes the Commission to suspend a person's brewery permit until the Commission receives notice from the Department of Revenue that the person is in compliance. Directs brewery permit holders who obtain a malt beverage wholesaler permit to report to the Commission within 60 days of a request by the Commission six specified pieces of information regarding the amount of malt beverages sold. Prohibits the Commission from requesting more than one sales report from a brewery within a 12-month period. Requires the Commission to keep all information provided confidential except as required by law or requested from the Department of Revenue. Adds that this information is not public record. Makes technical and organizational changes.
Amends GS 18B-1105 to direct the Commission to confirm by October 1 of each year that the holder of a distillery permit complies with GS 18B-900(a)(8). Authorizes the Commission to suspend a person's distillery permit until the Commission receives notice from the Department of Revenue that the person is in compliance.
Makes conforming changes to GS 18B-903(c1), GS 18B-1001(l), GS 18B-1114.5(a), GS 18B-1116(a), and GS 18B-1305(a1). Also makes technical changes to GS 18B-1116.
Amends GS 105-113.70 to clarify provisions concerning the issuance of and qualifications for ABC permitees for local licensing. Provides that no documentation is required of an applicant except as set out in the statute. Establishes that issuance of a local license is mandatory if the applicant holds the corresponding ABC permit and provides: (1) a copy of the most recently completed State application form for an ABC permit exclusive of any attachments, (2) the ABC permit for visual inspection, and (3) payment of the prescribed tax. Makes conforming changes.
Amends GS 18B-1114.1, adding farmers' markets to the list of locations at which a winery can provide free tastings of its wine and sell its wine by the glass or in closed containers pursuant to a winery special event permit.
Directs the Commission to adopt temporary rules to implement the act, which are to remain in effect until permanent rules that replace the temporary rules become effective. Adds that any rule or policy adopted by the Commission that does not comply with the act are void.
House amendment #1 changes the effective date of the act to October 1, 2017 (previously, effective when the act becomes law).
| Intro. by Lee, Hise, Daniel. | GS 132 |
House amendment makes the following change to the 5th edition.
Amends the authorization of the Division of Water Resources and the State Property Office to negotiate with federal agencies, to direct them to seek to have the State assume responsibility for acquiring the easements sites as currently described between the South Carolina border (was, Beaufort Inlet) and the Virginia border.
Makes conforming changes to GS 143-215.73F(b).
House committee substitute makes the following changes to the 2nd edition.
Amends the long and short titles.
Amends GS 130A-334, which defines terms for GS Chapter 130A, Article 11 (Wastewater Systems), to amend the definition ofrepair to exclude replacement of a damaged distribution device by a certified on-site wastewater contractor.
Amends GS 130A-337 (Inspection; operation permit required). Amends provisions within subsection (b), regarding the issuance of an operation permit for a wastewater system by a local health department, to further require written release by a certified on-site wastewater contractor that the system has been installed or repaired as per the conditions of the improvement permit and authorization for wastewater system construction. Further directs the local health department to issue any conditions imposed in the operation permit. Provides that subsequent findings or interpretation of rules of the local board of health by the local health department outside the initial site evaluation and conditions of the initial improvement permit and authorization for wastewater system construction must not be used to deny the operation permit.
Amends GS 130A-335 (Wastewater collection, treatment and disposal; rules). Requires proposed sites for new wastewater systems, or where repair is necessary for compliance, to be evaluated for soil conditions and site features by a licensed soil scientist (was, licensed soil scientist or licensed geologist). Authorizes a licensed geologist to evaluate the proposed site or repair area for geologic and hydro-geologic conditions. Requires evaluations for soil conditions and site features be approved by the applicable permitting authorities to produce the design and construction features of the new proposed wastewater system or repair project, provided that the evaluation of soil conditions, site features, or special hydrologic conditions satisfies all requirements of GS Chapter 130, Article 11, and a licensed soil scientist or geologist conducting such an evaluation maintains an errors and omissions liability insurance policy as specified. Directs local boards of health to use historical experience to establish modifications or additions to rules established by the Commission for review and approval of wastewater systems, subject to approval by the Department of Health and Human Services. Prohibits the Commissions' and the local boards of health's rules from establishing limitations on depths to suitable, provisionally suitable, or unsuitable soils or saprolite, or limitations based solely on gallons per day, or require sufficient available space for a replacement wastewater system of 480 gallons per day or less of domestic wastewater.
Amends GS 130A-336.1 (Alternative process for wastewater system approvals). Amends the provision requiring the owner of a proposed wastewater system to employ a licensed soil scientist or geologist, to clarify that the requirement to hire a licensed geologist is subject to the need to evaluate geologic and hydrologic conditions.
Requires the Commission for Public Health and any local board of health to implement 15 NCAC 18A .1945 (Available Space) as follows. Prohibits the Commission or the rules of a local board of health from requiring sufficient available space for a replacement wastewater system of 480 gallons per day or less of domestic wastewater. Directs the Commission to amend the Primary Personnel Rule consistent with these provisions.
Requires the Commission for Public Health and any local board of health to implement 15 NCAC 18A .1943 (Soil Depth) as follows. Prohibits the Commission or the rules of a local board of health from establishing limitations on depths to suitable, provisionally suitable, or unsuitable soils or saprolite, or limitations based solely on gallons per day. Directs the Commission to amend the Primary Personnel Rule consistent with these provisions.
Directs the Environmental Management Commission to adopt temporary rules implementing SL 2015-241, Section 14.16B (eliminating initial abatement requirements for noncommercial tanks), no later than October 1, 2017. Directs the Commission to report the status of rulemaking to the Fiscal Research Division and the chairs of the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources by December 31, 2017.
Amends GS 113-201 to authorize the Marine Fisheries Commission to adopt rules to establish Shellfish Aquaculture Enterprise Areas [as defined in new GS 113-201.1(3a)] to facilitate shellfish aquaculture opportunities through advanced siting and preapprovals from relevant federal and State agencies. Requires the Secretary of Environmental Quality to only issue nontransferable leases within designated Shellfish Aquaculture Enterprise Areas, with relinquishment or termination of the lease making the land revert back to the State to be made available to other applicants.
Amends GS 113-203 (Transplanting of oysters and clams). Amends the prohibition on transplanting oysters or clams from public grounds or permitted aquaculture operations utilizing waters in theprohibited, restricted, or conditionally approved classification to private beds as specified (currently does not include prohibited classification). Subjects the provision making it lawful to transplant seed oysters or clams to the requirement that the Secretary of Environmental Quality not have determined that the nursery or shellfish would present a risk to public health, and includes the transplant of seed oysters or clams taken from permitted aquaculture operations that use waters in theprohibitedclassification.
Amends GS 113-168.4 to authorize a person licensed under GS Chapter 113, Article 14A, to sell fish (was, oysters or clams) reared in a hatchery or aquaculture operation to the holder of an Aquaculture Operation Permit, an Under Dock Culture Permit, or a shellfish cultivation lease for further grow out.
Directs the Division of Marine Fisheries to review its Fishery Management Plan for river herring, and report no later than December 15, 2017, to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources regarding the continuing validity and scientific basis for the continued status of the species as "overfished," as specified.
Authorizes the Division of Water Resources and the State Property Office to negotiate an agreement with appropriate federal agencies for the State to assume responsibility for acquiring dredged material easement sites for maintenance dredging of the Atlantic Intracoastal Waterway between Beaufort Inlet and the Virginia border in exchange for the reduction in size and possible change in location of dredged material disposal easement sites currently held by the federal government, as specified.
Amends GS 143-215.73F(b) to authorize the use of the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund to provide funding for the above agreement with the federal government.
Provides a severability clause.
The act is effective when it becomes law.
House amendment #1 makes the following change to the 2nd edition.
Amends GS 143-260.10 to delete Mayo River State Park from the list of parks that are included within the State Nature and Historic Preserve. Adds a subsection including Mayo River State Park within the State Nature and Historic Preserve, with the exception of five specified tracts of land, to allow construction of an access bridge of sufficient width to allow emergency vehicle and State Park vehicle access relating to the sewer line traversing Mayo River State Park.
Directs the State to grant any easements necessary to the Town of Mayodan for construction of the bridge in Mayo River State Park, and ancillary parking facilities, and for maintenance and repair of existing sewer lines traversing the Park. No fee, royalty, or other cost shall be imposed for the easements.
Directs the State to cause to be performed by May 1, 2017, a survey of State lands necessary for the construction of the bridge, as specified.
Directs that the facility authorized under this act shall be constructed in accordance with the provisions of general law applicable to the construction of State facilities, except as otherwise provided in this section. Exempts construction from several listed Articles of the General Statutes, and from approval of the Council of State. Directs the Department of Environmental Quality to expedite permitting of the project to the extent allowed by law, and to waive any application fees that would be otherwise applicable, and where possible, issue all permits within 40 days of receipt of a complete application.
| Intro. by Hise, Britt. | GS 143 |
House amendment #1 makes the following changes to the 1st edition.
Further modifies GS 55-1-40, which sets out the definitions for the Chapter. Deletes the proposed addition of the terms annual receipts and related person. Amends the requirements for a business to qualify as a service-disabled veteran-owned small business to require the business's net annual receipts do not exceed $1 million (previously, required the business's annual receipts combined with the annual receipts of related persons not to exceed $1 million). Makes identical changes to the requirements for a business to qualify as a veteran-owned business. Defines veteran to mean an individual entitled to any benefits or rights under the laws of the United States by reason of service in the US Armed Forces (previously, an individual as defined by GS 143B-1213(3)(b)).
Makes clarifying change to proposed GS 55-16-22(a4).
Amends proposed GS 55-16-22.2, requiring the Secretary of State to annually report on veteran-owned small businesses and service-disabled veteran-owned small businesses to the Department of Military and Veterans Affairs (DMVA) by March 1 of each year (previously, no later than March 1 of each year).
Amends proposed GS 57D-2-24(a1) and proposed GS 59-84.4(a1), to remove statutory references to definitions.
Amends proposed GS 57D-2-25, requiring the Secretary of State to annually report the summary information on veteran-owned small businesses and service-disabled veteran-owned small businesses to DMVA by March 1 of each year (previously, did not provide a deadline, and instead required the information to be included in the annual report required by GS 55-16-22.2).
Amends proposed GS 59-84.5, requiring the Secretary of State to annually report the summary information on veteran-owned small businesses and service-disabled veteran-owned small businesses to DMVA by March 1 of each year (previously, did not provide a deadline, and instead required the information to be included in the annual report required by GS 55-16-22.2).
Amends GS 57D-1-03 and GS 59-32, which sets out the definitions for the Chapters. Adds the terms service-disabled veteran, service-disabled veteran-owned small business, veteran, and veteran-owned small business to the statute. Defines the added terms identically to those set out in GS 55-1-40 as amended by this act.
Makes clarifying and technical changes to the provision authorizing the Office of the Secretary of State and the Department of Revenue to include an explanation in the instructions of the annual report forms that status as as a veteran-owned small business or service-disabled veteran-owned small business is being requested to assist the State in documenting the importance and impact of the State's military populations.
House committee substitute makes the following changes to the 3rd edition.
Part I. Business Tax Changes
Section 1.3
Changes the application provision for Section 1.3, which amends GS 105-122, now providing that the provisions are effective for taxable years beginning on or after January 1, 2020 (previously, January 1, 2018), and are applicable to the calculation of franchise tax reported on the 2019 (previously, 2017) and later corporate income tax returns.
Section 1.5
Deletes the previous provisions of Sections 1.5(b), amending GS 105-130.4(s2) as enacted by the act. Makes conforming changes to the effective date provisions, and makes conforming organizational changes.
Section 1.9
Deletes the proposed changes to GS 105-153.4(d) that were to be effective January 1, 2015, regarding taxable income of S Corporations and Partnerships. Makes conforming changes to the effective date provisions.
Adds language specifying that the General Assembly finds that the amendments made in Section 1.9 clarify the intent of existing law and do not represent a change in the law.
Section 1.10
Makes technical and clarifying changes to the proposed changes to GS 105-228.4A (Tax on captive insurance companies).
Section 1.11
Deletes Section 1.11(a) and (b), proposing changes in GS 105-228.5(d)(3) to clarify a tax imposed on property coverage contracts is in additional to and separate from a gross premium tax.
Directs the Revenue Laws Study Committee (Committee) to study the additional rate of 0.74% applicable to gross premiums on insurance contracts for property coverage and determine whether the additional rate is part of the gross premiums tax imposition. Directs the Committee to review the history of the additional rate, the use of the proceeds from the additional rate, and the applicability of the additional rate to the determination of the retaliatory premium tax imposed under GS 105-228.8. Requires the Committee to report its findings and recommendations to the 2018 Session of the General Assembly.
Section 1.12
Adds new Section 1.12. Makes a clarifying change in GS 105-160.2 (Imposition of tax), specifying that the tax on the amount computed pursuant to the statute is at the rate (currently, rates) levied in GS 105-153.7.
Section 1.13
Adds new Section 1.13. Amends GS 55-16-22, concerning annual reports of all domestic corporations and foreign corporations authorized to transact business in the State. Adds clarifying descriptors to subsections (a), (a2), (a3), (b), (d), and (h). Requires the report to be delivered directly to the Secretary of State (currently, can be delivered to the Secretary of Revenue in paper form or alternatively directly to the Secretary of State in electronic form). Makes conforming changes. Permits the report to be delivered in electronic form or in paper form as prescribed by the Secretary of State. Exempts corporations governed by GS Chapter 55B from the statute (currently, more specifically exempts domestic corporations governed by GS Chapter 55B). Provides that a report is deemed timely filed if corrected to contain the required information after being returned by the Secretary of State for correction, if the corrected report is submitted (currently, delivered) to the Secretary of State within 30 days after the effective date of the notice that the report is incomplete. Reduces the time by which the Secretary of State can presume an annual report delinquent from 120 to 60 days from the date the report is due. Makes technical and clarifying changes.
Section 1.14
Adds new Section 1.14. Directs the Department of Revenue (Department) to study the feasibility and cost of allowing the pass-through of a federal extension of time for filing a federal corporate income or individual income tax return to serve as an application for a State extension of time for filing a corporate franchise and income tax return or an individual income tax return. Directs the Department to work with the IRS and consult with or identify other states that use the federal extension to serve as the application for a state extension. Directs the Department to report its findings and recommendations to the Revenue Laws Study Committee by March 1, 2018.
Part II. Sales and Use Tax
Section 2.1
Modifies the proposed changes to GS 105-164.3, setting forth the definitions that apply to the Article.
Amends the proposed definition of capital improvement to now define the term to mean one or more of the 11 specified actions. Modifies and adds to the specified actions that constitute capital improvement, now including (1) the installation of equipment or a fixture attached to real property and capitalized and depreciated under Generally Accepted Accounting Principals or International Financial Reporting, is depreciated under the Revenue Code, and/or is expensed under Section 170 of the Revenue Code; (2) the replacement or installation of a heating or air conditioning unit or a heating, ventilation, or air conditioning system; and (3) the addition or alteration to real property that is permanently affixed or installed to real property and is not an activity listed in subdivision (33l) of the statute as a repair, maintenance, and installation service.
Modifies the proposed definition of free-standing appliance, defining the term to mean a machine commonly thought of as an appliance operated by gas or electric current.
Modifies the proposed definition of remodeling, defining the term to mean a transaction comprised of multiple services performed by one or more persons to restore, improve, alter, or update real property that can otherwise be subject to tax as repair, maintenance, and installation services if separately performed. Further provides that the term includes a transaction where the internal structure or design of one or more rooms or areas within a room or building are substantially changed (previously, went on to include tangible personal property or digital property that is installed or applied and becomes part of real property). Deletes the examples of single repair, maintenance, and installation services that the term does not include.
Further amends the definition of repair, maintenance, and installation services. Sets out that the term does not include services used to fulfill a real property contract (previously, does not include services defined as a capital improvement to real property) taxed in accordance with GS 105-164.4H for any of the purposes specified. Amends the purpose set out in subdivision (33l)d relating to installing, applying, connecting, adjusting, or setting into position tangible personal property, digital property, or a motor vehicle. Adds that the replacement of more than one of a like-kind item, such as replacing one or more windows, is a single repair, maintenance, and installation service. Clarifies that the term does not include an installation defined as a capital improvement under subdivision (2c)d. Makes technical and conforming changes.
Modifies the proposed changes to the definition of service contract, providing that the term includes (previously, generally includes) a contract where the obligor can provide (previously, mandatory) a service included in the definition of repair, maintenance, and installation services as a condition of the contract.
Section 2.2
Further amends GS 105-164.4(a), modifying existing subsubdivision (1a)b, setting the tax rate for the sale of a modular home, clarifying that the sale of a modular home to a modular homebuilder is considered a retail sale no matter that the modular home can be used to fulfill a real property contract.
Section 2.4
Amends proposed GS 105-164.4H(a1), providing that a person can substantiate that a transaction is a real property contract or a mixed transaction by records as previously described, or by receipt of an affidavit of capital improvement (previously, also by receipt of an affidavit of a mixed transaction). Amends the proposed changes to subsection (d), concerning mixed transaction contracts, to refer to the allocated sales price (previously, the sales price) of the taxable repair, maintenance, and installation services included in the contract.
Section 2.5
Repeals GS 105-164.4D(a)(6), which exempted sales tax for a bundled transaction when the bundle includes a contract for two or more services, one of which is subject to tax under the Article and one of which is not subject to tax under the Article.
Further amends GS 105-164.4I, providing tax provisions for a service contract for real property that includes two or more services, one of which is subject to tax under the Article and one of which is not subject to tax under the Article. Establishes that tax applies to the sales price of or gross receipts derived from a mixed service contract unless one of two scenarios applies: (1) the person determines an allocated price for the taxable portion of the service contract based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business, in which case tax applies to the allocated price of the taxable portion of the service contract or (2) the allocated price of the taxable portion of the service contract does not exceed 10% of the price of the contract.
Section 2.6
Makes clarifying changes to the language proposed to be added to GS 105-164.13(61a), setting out tax exemptions for certain repair, maintenance, and installation services and service contracts. Clarifies that property and services used to fulfill a service or contract exempt under subsubdivision (61a)a are also exempt from tax under the Article. Deletes the previous revisions for the inspections exemption to instead include (1) an inspection performed where the results are included in a report for the sale or financing of real property; (2) an inspection of the structural integrity of real property, provided the charge for the inspection is separately stated on the invoice or other documentation given to the purchaser at the time of the sale; and (3) an inspection to a system that is a capital improvement under GS 105-164.3(2c)f, provided the inspection is to fulfill a safety requirement and provided the charge for the inspection is separately stated on the invoice or other documentation given to the purchaser at the time of the sale. Adds to the exemption for pest control service, to define pest control service to mean the application of pesticides to real property. Adds to the exemption for moving services, to define moving services to mean a service for hire to transport or relocate a person's existing belongings to or from any destination. Adds an exemption for funeral-related services, including services for the burial of remains, but adds that this exemption does not apply to the sale of tangible personal property, such as caskets, headstones, and monuments. Adds an exemption for services performed on an animal, such as hoof shoeing and microchipping a pet.
Further amends GS 105-164.13(62), which exempts an item or repair, maintenance, and installation services purchased or used to fulfill a service contract taxable under the Article if the purchaser of the contract is not charged for the item or services, adding that the exemption does not apply to the purchase of tangible personal property or digital property used to fulfill a service contract for real property where the charge being covered would otherwise be subject to tax as a real property contract.
Section 2.7
Amends the proposed changes to GS 105-164.14 to also allow an interstate carrier a sales tax refund on the purchase of service contracts (previously, the purchase of service contracts other than motor vehicle service contracts). Makes conforming changes.
Section 2.8
Amends the directive to the Secretary of Revenue, providing that the Secretary will allow the seller who paid sales and use taxes on a product and uses the product as part of a taxable repair, maintenance, and installation service to real property to offset the sales tax liability on the taxable repair, maintenance, and installation service with the sales and use tax paid on the products.
Enacts GS 105-244.3, prohibiting the Department from taking action to assess any tax due for a filing period beginning on or after March 1, 2016, and ending before January 1, 2018, if one or more of the specified conditions apply and the retailer did not receive specific written advice from the Secretary of Revenue for the transactions at issue for the laws in effect for the applicable periods. Details the nine conditions, including that a retailer failed to charge sales tax due on separately stated installation charges that are part of the sale price of tangible personal property or digital property sold at retail. Adds that the statute does not prohibit: (1) the assessment of tax collected by a person and not remitted to the Department; (2) the assessment of tax due on an amount included in the definition of sales price where a retailer failed to charge or remit the tax, except as allowed under the statute; and (3) the assessment of use tax on purchases as provided in the statute. Effective retroactively to January 1, 2017, and expires on July 1, 2018.
Enacts GS 105-244.4, authorizing the Secretary of Revenue to reduce an assessment against a taxpayer for State and local sales and use taxes, as specified, and waive any penalties imposed as part of the assessment when the assessment is the result of an audit of the taxpayer by the Department, and all five qualifications, as specified, are met. Sets the maximum reduction at 90% of the total amount of sales and use tax assessed. Provides that a reduction and the waiver of penalties imposed as part of the assessment apply only to the amount of the assessment attributable to the incorrect application of one or both of the areas of law set out in subdivision (a)(4) (concerning linen tax in GS 105-164.4F). Provides that the statute applies to the specified proposed assessments, collectible assessments, or pending request for review, for a tax period ending prior to January 1, 2018. Adds that the statute does not authorize a refund for sales or use taxes that were originally collected and remitted to the Department. Establishes that the statute is not applicable to an assessment attributable to the incorrect application of one or both areas listed in subdivision (a)(4) for a period beginning on or after January 1, 2018.
Section 2.9
Further amends GS 105-164.13, exempting from sales and use tax (1) tangible personal property, digital property, and services for a farmer as provided in GS 105-164.13E and (2) the sale of human blood or human tissue, eyes, DNA, or an organ.
Amends GS 105-164.10 (Retail tax calculation). Deletes the provision requiring the Secretary of Revenue’s tables to round sales tax to the nearest whole cent. Provides that a retailer is not required to collect tax under GS Chapter 105, Article 5 (Sales and Use Tax). Provides that tax computation must be carried to the third decimal place and round up to the next cent whenever the third decimal place is greater than four. Provides for calculation on a transaction per item or invoice basis, and the rounding rule is applied to the aggregate tax due.
Provides if H 59 becomes law, amends GS 105-164.3(45a), as amended, to amend the definition of streamlined agreement to refer to the Streamlined Sales and Use Tax Agreement as amended as of May 11, 2017 (was, December 16, 2016).
Section 2.10
Adds new Section 2.10. Amends GS 105-164.4G(f). Exempts admission charges for events sponsored by farmers taking place on farmland from the sales and use tax, effective retroactively to January 1, 2014.
Section 2.11
Adds new Section 2.11. Amends GS 105-164.27A(a3). Requires a person who purchases a boat, aircraft, or qualified jet engine, or specific services for such under a direct pay permit, to file a return and pay the tax due to the Secretary in accordance with GS 105-164.14. Authorizes a purchaser, in lieu of a direct pay permit, to elect to have the seller collect and remit the tax on behalf of the purchaser. Provides that a proper invoice reflecting the proper amount of tax extinguishes the purchaser’s liability for the tax on the transaction. Provides that when an invoice that does not separately state installation charges as part of the sales price of the property, the tax is due on the total purchase price.
Amends GS 105-164.13. Exempts the amount of repair, maintenance, and installation services for a boat, an aircraft, or a qualified jet engine for which the purchaser elects for the seller to collect and remit the tax under GS 105-164.27A(a3), from the retail sales and use tax.
Section 2.12
Adds new Section 2.12. Amends subdivision (61a)m. of GS 105-164.13 (Retail sales and use tax), as amended by Section 2.6 of this act. Amends the list of repair, maintenance, and installation services and service contracts exempt from tax under that subdivision to include an aircraft with a gross take-off weight of more than 2,000 pounds. Effective July 1, 2019.
Part III. Tax Collection and Enforcement
Section 3.3
Modifies proposed amendment to GS 39-23.8(e). Clarifies that a transfer is not voidable if the transfer results from any of the listed reasons (currently, does not specify whether the transfer must meet all three listed reasons or just one).
Part IV. Administrative Changes
Section 4.1
Amends proposed GS 105-241.13A (Taxpayer inaction). Provides that inaction (as defined) by a taxpayer after timely filing a request for review of a proposed denial of a refund or assessment results in the proposed denial or the proposed assessment being final. Clarifies that the Department’s required notice to the taxpayer under this statute is a notice of inaction. Requires the notice to state that the proposed denial or assessment becomes final 10 days from the date of the notice, unless the taxpayer responds to the department. Provides for the calculation of whether a taxpayer has timely responded to the Department under this statute.
Modifies proposed amendments to GS 105-241.13 (Action on request for review). Provides that, if a taxpayer makes no response to the Department’s request for additional information by the requested response date, the Department must reissue the request, and give the taxpayer at least 30 days to respond to a request for additional information and to respond to the reissuance of a request for additional information. Nonresponse to the reissuance is governed by GS 105-241.13A. Makes a technical change.
Deletes Section 4.1(e), which amended GS 105-241.16 (Judicial review of decision after contested case hearing). Makes a conforming change to Section 4.8 (now 4.9), regarding the effective date of Part 4.
Section 4.8
Creates new Section 4.8. If S 257 becomes law, amends Section 37.4(b) of that act. Currently, S 257, Section 37.4 (7th edition) amends GS 143B-1325(d), requiring the State Board of Elections or Bipartisan State Board of Elections and Ethic Enforcement or successor entity, but not the Community College System Office, to work with the State CIO to plan its transition to the Department of Information Technology, effective July 1, 2017. As amended by this bill, Section 37.4(b) amends GS 143B-1325 as follows. Amends caption to read “State information technology consolidated under Department of Information Technology.” Effective July 1, 2018, the consolidation of enterprise information technology functions within the executive branch is completed with the Secretary heading all of the information technology functions under the Department’s purview, including the currently listed aspects of information technology. Amends the list of information technology aspects to refer to the state information technology strategic plan (was, updated state information technology strategic plan), as currently specified. Requires the State CIO to ensure that State agencies’ operations are not adversely impacted under the State agency information technology consolidation. Requires the Community College System Office, the Department of Public Instruction, the Department of Revenue, and the State Board of Elections to work with the State CIO to plan their transition to the Department. Delays the transfer and consolidation from the Department of Revenue to the Department of Information Technology until the system and data security of the Department of Information Technology meets the heightened security standards required by the federal government for purposes of sharing taxpayer information.
Part V. Property Tax
Section 5.4
Adds new Section 5.4. Amends GS 105-275 (Property classified and excluded from the tax base). Designates mobile classrooms and modular units occupied by a school (as defined) and wholly and exclusively used for educational purposes, regardless of the ownership of the property, as a special class, excluded from tax. Effective for taxes imposed for taxable years beginning on or after July 1, 2017.
Part VI. Other Changes
Section 6.1
Amends GS 159-32 (Daily deposits). Requires all taxes and other moneys collected or received by an officer or employee of a local government or public authority to be deposited or submitted to a properly licensed and recognized cash collection service on a daily basis. Requires all moneys to be maintained in a secure location until deposited or officially submitted. Makes conforming changes.
The Daily Bulletin: 2017-06-22
The Daily Bulletin: 2017-06-22
House committee substitute makes the following changes to the 3rd edition.
Adds that the specified property is removed from Garner's corporate limits. Effective June 30, 2017. Specifies that property in the described territory as of January 1, 2017, is no longer subject to municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2017.
Makes conforming changes to the act's long title. Makes conforming technical and organizational changes.
House amendment makes the following changes to the 1st edition.
Expands the scope of the act to also make it a Makes it a Class 3 misdemeanor to discharge a firearm or bow and arrow, or attempt to discharge a firearm or bow and arrow, from, on, across, or over the roadway or right-of-way of any public road in Buncombe County, excluding unpaved roads within the Sandy Mush Game Lands.
Actions on Bills: 2017-06-22
H 21: DRIVER INSTRUCTION/LAW ENFORCEMENT STOPS.
H 26: WORKERS' COMP/APPROVAL OF DISPUTED LEGAL FEES.
H 27: CLARIFY EXPIRATION OF VEHICLE REGISTRATION.
H 56: AMEND ENVIRONMENTAL LAWS.
H 84: DL/DEAF OR HARD OF HEARING DESCRIPTION (New)
H 95: TRUCK DELIVERIES TO PORT/NIGHT TRAVEL.(NEW)
H 98: CRIM. OFFENSE/VANDALIZE FIRE & EMS EQUIPMENT.
H 115: RETIREMENT TECHNICAL CORRECTIONS ACT OF 2017.-AB
H 120: NATIONAL GUARD CAN PURCHASE FROM CE.
H 135: TECHNICAL CHANGES TO COURSES OF STUDY STATUTE.
H 149: STUDENTS W/DYSLEXIA AND DYSCALCULIA.
H 155: OMNIBUS EDUCATION LAW CHANGES (NEW).
H 156: EYEGLASSES EXEMPTION FROM MEDICAID CAPITATION.
H 159: CHARTER SCHOOL TSERS ELECTION.
H 176: PENSIONS INTEGRITY ACT OF 2017.-AB
H 183: RETIREMENT ADMIN. CHANGES ACT OF 2017.-AB
H 190: LOCAL FIREFIGHTER RELIEF FUND ELIGIBILITY.
H 224: WARRANT CHECK OF INMATES IN CUSTODY.
H 229: GSC TECHNICAL CORRECTIONS 2017.
H 236: NCAOC OMNIBUS BILL.
H 243: STRENGTHEN OPIOID MISUSE PREVENTION (STOP)ACT.
H 270: THE HALEY HAYES NEWBORN SCREENING BILL.
H 275: NO STORMWATER FEES ON TAXIWAYS OR RUNWAYS.
H 277: NATUROPATHIC STUDY (NEW).
H 299: STATE HEALTH PLAN ADMINISTRATIVE CHANGES.-AB
H 310: WIRELESS COMMUNICATIONS INFRASTRUCTURE SITING.
H 343: ENFORCEMENT OF DVPO ON APPEAL.
H 399: STOP IMAGES TAKEN W/O CONSENT FROM DISSEMIN.
H 403: MEDICAID AND BEHAVIORAL HEALTH MODIFICATIONS (NEW).
H 451: REGULATE MASSAGE & BODYWORK THERAPY ESTMTS.
H 462: BANKING LAW AMENDMENTS.
H 464: REVISE SCHEDULE OF CONTROLLED SUBSTANCES.
H 469: REGULATION OF FULLY AUTONOMOUS VEHICLES.
H 486: NATIONAL GUARD EDUCATION ASSISTANCE CHANGES. (NEW)
H 487: NAT. GUARD REEMPLOYMENT RIGHTS/DEFINITIONS.
H 532: MODIFY UNC LABORATORY SCHOOLS.
H 548: EQUALIZE TREATMENT OF WASTEWATER PRODUCTS.
H 581: REVISIONS TO OUTDOOR ADVERTISING LAWS.
H 616: NORTH CAROLINA PUBLIC BENEFIT CORPORATION ACT.
H 620: UNC CAPITAL PROJECTS.
H 629: AMEND FUNERAL PROCESSION LAW.
H 657: IMPROVE ADULT CARE HOME REGULATION.
H 666: REVISE VOLUNTEER FIRE DEPARTMENT REQ'TS.
H 669: FEES TO CERTIFY AS A COMPANY POLICE AGENCY.
H 707: LIEN AGENT/NOTICE OF CANCELLATION.
H 716: CMVS/USE OF PLATOONS.
H 719: IMPROVE SECURITY/UPPER LEVEL/PKING LOT 65.
H 770: VARIOUS CLARIFYING CHANGES (NEW).
H 794: NC PERMITTING EFFICIENCY ACT OF 2017.
H 800: VARIOUS CHANGES TO CHARTER SCHOOL LAWS.
H 843: MUNICIPAL ELECTION SCHEDULE & OTHER CHANGES. (NEW)
H 852: REAL PROP. TECH CORREC/SOLICITATION OF COPIES (NEW).
H 870: CONFIRM PHIL BADDOUR/INDUSTRIAL COMMISSION.
S 3: DOT/DMV CHANGES.
S 64: VETERANS' HISTORY AWARENESS MONTH.
S 74: UPDATE RABIES CONTROL LAWS.
S 99: APPROPRIATIONS ACT OF 2018. (NEW)
S 104: REQUIRE CRIMINAL BGC/PHARMACIST LICENSURE.
S 107: STREAMLINE DAM REMOVAL.
S 114: ANNUAL REPORT MODERNIZATION.
S 148: JUROR EXCUSED BY CLERK/MODIFY VARIOUS APPTS (NEW).
S 155: ABC OMNIBUS LEGISLATION. (NEW)
S 160: HANDICAP PARKING PRIVILEGE CERTIFICATION.
S 169: TEACHING EXCELLENCE BONUS EXPANSION.
S 182: PROHIBIT USE OF LIGHT BARS ON MOTOR VEHICLES.
S 196: VETERINARY PRACTICE OMNIBUS.
S 205: RESOLUTION TO ALLOW SAV OYSTER LEASING.
S 209: NONPARTISAN REDISTRICTING COMMISSION.
S 220: MOTOR FUEL TAX EXEMPTION FOR JOINT AGENCY.
S 257: APPROPRIATIONS ACT OF 2017.
S 299: EXPAND USE OF CAM SYSTEMS & CREATE CAM FUND. (NEW)
S 308: ADDITIONAL SPEAKER APPOINTMENTS (NEW).
S 315: MAKE VARIOUS CHANGES REGARDING HIGHER ED (NEW).
S 323: UNC PUBLIC RECORDS/ATHLETIC CONFERENCES.
S 326: CLARIFY HUT & IMPROVE VEHICLE TITLING PROCESS.
S 350: LME/MCO CLAIMS REPORTING/MENTAL HEALTH AMDTS (NEW).
S 374: NC LEASE-PURCHASE ACT/CHARTER SCH. PRIORITY (NEW).
S 388: INCAPACITY TO PROCEED.
S 410: MARINE AQUACULTURE DEVELOPMENT ACT.
S 413: CLARIFY MOTOR VEHICLE DEALER LAWS.
S 415: CLARIFY DEF'N. OF COLLECTION AGENCY.
S 445: EXPUNGEMENT PROCESS MODIFICATIONS.
S 448: PROFESSORS IN THE CLASSROOM.
S 469: TECHNICAL CORRECTIONS. (NEW)
S 545: STATE NATURE AND HISTORIC PRESERVE ADDS/DELS.
S 548: STRENGTHEN HUMAN TRAFFICKING LAWS/STUDIES.
S 567: REFORM/CORRECT/WILLS AND TRUSTS.
S 578: VETERAN-OWNED SMALL BUSINESS/ANNUAL REPORT.
S 593: ARBITRATION AND MEDIATION FOR BUSINESS COURT.
S 599: EXCELLENT EDUCATORS FOR EVERY CLASSROOM.
S 600: BRITNY'S LAW: IPV HOMICIDE.
S 621: BUSINESS CONTRACTS/CHOICE OF LAW AND FORUM.
S 622: BUSINESS CORPORATION ACT REVISIONS.
S 628: VARIOUS CHANGES TO THE REVENUE LAWS.
S 656: ELECTORAL FREEDOM ACT OF 2017.
S 681: HONOR RALPH HUNT, SR., FORMER MEMBER.
Actions on Bills: 2017-06-22
H 58: CHARLOTTE FIREFIGHTERS' RETIREMENT SYSTEM.
H 184: CERTAIN TOWNS/SEWER FEE COLLECTIONS.
H 268: CITY OF BELMONT CHARTER REVISIONS.
H 288: TOWN OF RAYNHAM/EXTEND MAYOR'S TERM OF OFFICE.
H 331: CORRECT BOARD MEMBER TERMS/TOWN OF OAKBORO.
H 349: CURRITUCK-DEVELOPER FUNDS FOR ROAD CONSTR.
H 378: BERTIE/GATES COUNTY/AMBULANCE SERVICE.
H 385: IMPAIRED HUNTING/ORANGE COUNTY.
H 415: HATTERAS VILLAGE COMMUNITY CENTER DISTRICT.
H 420: ROCKINGHAM CTY TOURISM DEVELOPMENT AUTHORITY.
H 426: SANFORD-LEE COUNTY AIRPORT AUTHORITY CHANGES.
H 447: LEXINGTON CITY BD. OF ED./CITY COUNCIL (NEW).
H 498: JONESVILLE/BOONVILLE/EAST BEND/EVEN-YR ELEC'N.
H 504: CITY OF LINCOLNTON/EVEN-YR ELECT'N/MAYOR TERM.
H 520: UNION CO. BD. OF ED/PARTISAN ELECTION.
S 5: MECKLENBURG/POLICE COUNTYWIDE JURISDICTION.
S 6: CORNELIUS ANNEXATION.
S 105: FAIRMONT VOL. ANNEX.; TROUTMAN LAND USE REG (NEW).
S 122: REPEAL CENTERVILLE CHARTER.
S 217: RICHMOND/RIGHT-OF-WAY SAFETY.
S 219: INDIAN BEACH ANNEX/MOREHEAD CITY CHARTER CHGS (NEW).
S 249: COYOTE BOUNTY PILOT PROGRAM.
S 253: PARTISAN ELECTIONS/CERTAIN SCHOOL BOARDS. (NEW)
S 260: WAKE FOREST ANNEXATION.
S 266: DURHAM AND WALKERTOWN ANNEXATIONS (NEW).
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