Requires the Reinspection Rule (subsection (h) of 15A NCAC 18A .2661 concerning inspections and reinspections of food establishments) to be implemented as follows. Requires a reinspection to be made upon request of the permit holder or the holder's representative. Provides that when a food establishment requests an inspection for the purpose of raising the alphabetical grade and holds an unrevoked permit, the regulatory authority must make an unannounced inspection within five calendar days from the request. Specifies that if no violations related to priority items or priority foundation items were documented during the most recent inspection, then the regulatory authority cannot further lower the alphabetical grade during the pendency of a reinspection for the purpose of raising the grade. Requires adoption of a rule to amend the Reinspections Rule so that it is consistent with the above provisions. Sets out provisions governing the adoption of the rule and the effectiveness of the rule. Expires when permanent rules become effective.

Requires the Frequency of Inspections for Risk Category IV Food Service Establishments Rule [meaning the item addressing Risk Category IV Establishments in subdivision (a)(1) of 10A NCAC 46 .0213 (Food, Lodging/Inst. Sanitation/Public Swimming Pools/Spas)] to be implemented as follows. Requires a local health department to provide food, lodging, and institutional sanitation and public swimming pools and spa services within the jurisdiction of the local health department. Also requires a local health department to establish, implement, and maintain written policies that include the frequency of inspections of food, lodging, and institutional facilities and public swimming pools and spas. Requires a Risk Category IV Food Service Establishment to be inspected at least once every four months per fiscal year. Requires a Risk Category IV Food Service Establishment to undergo an educational visit once per fiscal year, which must not result in issuing a new grade or grade card. Requires the following to be reviewed during an educational visit: (1) any priority violations that occurred during the three previous inspections of the establishment; (2) the public health risk factors identified on the inspection form furnished by the local health department; and (3) if applicable, any required Hazard Analysis Critical Control Plan. Requires adoption of a rule to amend the Frequency of Inspections for Risk Category IV Food Service Establishments Rule so that it is consistent with the above provisions. Sets out provisions governing the adoption of the rule and the effectiveness of the rule. Expires when permanent rules become effective.

Requires the Calculation of Rate of Compliance Rule [(meaning subdivision (a)(5) of 15A NCAC 18A .2901 (Restaurant and Lodging Fee Collection and Inventory Program)] be implemented as follows. Specifies that "rate of compliance" means the number of inspections and educational visits for food and lodging establishments conducted by the local health department during the previous State fiscal year divided by the number of inspections and educational visits mandated to be conducted by the local health department per State fiscal year pursuant to GS 130A-249 and 10A NCAC 46 .0213, not to exceed a value of 1. Requires adoption of a rule to amend the Calculation of Rate of Compliance Rule so that it is consistent with the above provisions. Sets out provisions governing the adoption of the rule and the effectiveness of the rule. Expires when permanent rules become effective.

Includes whereas clauses.

Appropriates $30 million for 2023-24 from the General Fund to the North Carolina Housing Trust Fund to be used in accordance with the purposes of GS Chapter 122E (North Carolina Housing Trust and Oil Overcharge Act).

Amends GS 161-11.5 by amending the distribution of the $6.20 of the fee collected by the register of deeds for registering or filing Instruments in General and registering or filing any deed of trust or mortgage, by decreasing the amount that goes to the General Fund from 20% to 18.5% and adds a distribution of 1.5% to the North Carolina Housing Trust Fund.

Amends GS 105-228.30 by amending the distribution of the proceeds of the excise tax on instruments conveying an interest in real property so that 33% of the funds are remitted to the North Carolina Housing Trust Fund, with the remainder to the General Fund.

Amends GS 90-16 to require the North Carolina Medical Board to make the following documents available for review by the State Auditor at the Board's offices or other reasonable designated place: records, papers, investigative files, investigative reports, other investigative information, and other documents containing information in the possession of or received or gathered by the Board, or its members, employees, or consultants as a result of investigations, inquiries, assessments, or interviews conducted in connection with a licensing, complaint, assessment, potential impairment matter, disciplinary matter, or report of professional liability insurance awards or settlements. Makes additional clarifying and technical changes to the statute.

Amends GS 105-187.19 to require that 30% of the net proceeds of the scrap tire disposal tax be credited to the Scrap Tire Disposal Account (was, the entire 30% was credited to the General Fund), and adds that excess funds are to be credited to the Highway Fund if the amount in the Account exceeds $300,000 at the end of a fiscal year.

Reenacts GS 130A-309.63, Scrap Tire Disposal Account, as it existed immediately prior to repeal and makes the following changes. Specifies that the Account is located within the Department of Environmental Quality. Amends the allowable uses of the Account's revenue, to allow the use of up to 75% (was, 50%) for grants to local governments to assist in the disposal of scrap tires, allows the use of up to 15% (was, 40%) for grants to encourage the use of processed scrap tire materials, allows the use of up to $175,000 for administrative costs and to support a position for implementation (was, an unspecified amount could be used to support a position with specified duties), and allow the use of remaining revenue to clean up illegal scrap tire collection sites (was, scrap tire collection sites) that are nuisances. Removes the deadline for the report to the Environmental Review Commission (ERC) on the implementation of the NC Scrap Tire Disposal Act.

Repeals GS 130A-309.64 concerning grants for the disposal of scrap tires and activities related to scrap tires.

Amends GS 130A-309.06 to require the Department of Environmental Quality (DEQ) to include in its annual report to the ERC and specified NCGA division on solid waste management, the beginning and ending balances in the Scrap Tire Disposal Account for the reporting period, and the amount credited to the Scrap Tire Disposal Account during the reporting period. Makes conforming changes.

Amends GS 130A-309.09C to provide that local governments that do not comply with the requirements of GS 130A-309.09A(b) (requiring making a good-faith effort to achieve the State's 40% municipal solid waste reduction goal and to comply with the State's comprehensive solid waste management plan), GS 130A-309.09A(d) (requiring annual reporting on the solid waste management programs and waste reduction activities within the unit of local government), and GS 130A-309.09B(a) (including specific requirements for a local government's solid waste reduction program) are not eligible for grants from the Scrap Tire Disposal Account (in addition to the Solid Waste Management Trust Fund and White Goods Management Account) and shall not receive the proceeds of the scrap tire disposal tax or white goods disposal tax. Requires that the proceeds of the taxes withheld to be credited to the Highway Fund instead of the General Fund.

Amends GS 130A-309.54 to no longer allow the tax on new tires to be used for the cleanup of inactive hazardous waste sites and for the purposes for which the Bernard Allen Memorial Emergency Drinking Water Fund may be used, limiting the use to the disposal of scrap tires.

The above provisions are effective October 1, 2023, and apply to quarterly crediting of the proceeds of the scrap tire disposal tax occurring on or after that date.

Amends GS 130A-309.58 by adding the following applicable to the collection of shipment and tires for disposal and recycling. Specifies that a local government is not prohibited from collecting and shipping, or arranging for the collection and shipment of, scrap tires directly from a tire retailer for permissible disposal or recycling purposes. Provides that a tire retailer that ships its own scrap tires directly from their location to a disposal or recycling facility, in coordination with the county in which the scrap tires were generated, is not liable for shipping costs, except those associated with trailers owned and operated by the tire retailer. Makes a tire retailer responsible for the costs of shipping to a site provided by a county for scrap tire collection.

Enacts new GS 160A-358 prohibiting youth sports or youth recreation operated by a local government from giving participation awards; requires awards to be based on performance achievements.

Amends GS 115C-301 to allow a waiver on the class size requirements for kindergarten through third grade when there is a shortage of qualified, licensed teachers available to teach in a grade level for the number of classrooms required at each school, and/or inadequate classroom space or facilities that would require facility expansion, construction, or relocation.

Appropriates $75,000 for 2023-24 from the General Fund to the Office of State Budget and Management for a directed grant to My Brother's Keeper of Charlotte to support programs that improve outcomes for young men of color. Effective July 1, 2023.

Appropriates $75,000 for 2023-24 from the General Fund to the Office of State Budget and Management, for a directed grant to The Males Place, Inc. Effective July 1, 2023.

Section 1

Amends GS 143B-1040 to include Tropical Storm Fred in the natural disasters for which the Office of Recovery and Resiliency (ORR) is charged with executing recovery and resiliency projects and administering funds provided by the Community Development Block Grant Disaster Recovery program (Recovery program). Adds a new subsection providing that the provisions of Subpart D, Part 5 (Division of Emergency Management; Division), Article 13 (Department of Public Safety; DPS) relating to standards and practices of applicant and homeowner eligibility, contractor requirements, rehabilitation assistance, physical condition requirements, and displacement and relocation, are not to be construed as more restrictive than applicable federal or state law.

Section 2

Enacts GS 143B-1042, establishing nine requirements for contracts awarded or assigned by ORR related to detached single-family dwelling funded with finds provided by the Recovery program, including: (1) requiring ORR to develop a priority-based system for awarding or assigning contracts as specified with described qualifications; (2) limiting the number of detached single-family dwellings included in a single bid package to 20, and limiting the award or assignment of contracts to contractors to perform construction activities on no more than 20 dwellings at one time; (3) requiring described cancellation and liquidation clauses in all contracts; and (4) requiring contractors awarded or assigned a contract to begin activities on the property within 45 days after the award and complete activities within 120 days of award or assignment, or the temporary relocation of the applicant, whichever is later. Defines construction activities and property.

Enacts GS 160D-1112.1, requiring local government inspection departments (departments) to give priority to inspections services (including permitting) required under Article 11, Building Code Enforcement, that involving activities on detached single-family dwellings funded in whole or in part with funds from the Recovery program. Allows departments to require contractors to present evidence proving the activities are funded by the Recovery program prior to granting priority. 

Directs ORR to adopt the priority-based system required under new GS 160D-1042(b)(1) within 30 days of the date the act becomes law, and within 30 days of such adoption, report to the specified NCGA commission detailing the system. 

Section 3

Amends Article 14 (Time for Listing and Appraising Property for Taxation) and Article 22 (Listing property for city and town taxation; duty of owner; authority of governing body to obtain lists from county) of GS Chapter 105 by enacting GS 105-286.1 and GS 105-328.1 with identical provisions as follows. Prohibits appraising a permanent residence, which has increased in true value because it was rehabilitated using Recovery program funds administered by ORR or Hurricane Florence Disaster Recovery Fund administered by the Office of State Budget and Management (OSBM), at a value higher than the most recent value appraised prior to the rehabilitation unless one of four acts or circumstances occurs: (1) transfer of the residence; (2) death of the owner; (3) cease of use as a permanent residency by the owner; or (4) passage of five years since the first reappraisal. Specifies limitations of each circumstance. Defines owner, permanent residence, and rehabilitation or rehabilitated. Establishes a process by which an owner can file a complaint alleging appraisal in violation of the statute, from which the assessor has 30 days to confirm or deny the allegations and notify the owner. Requires the assessor to assist the owner in providing or verifying information in the custody of the city or county. Requires reappraisal if the allegations are confirmed. Allows an owner to appeal an accessor's decision that the appraisal was not in error to the county's governing body, with an appeal of the governing body's decision permitted to the Property Tax Commission. 

Makes conforming changes to GS 105-283, GS 105-284, and GS 105-328, relating to appraisals, to reference new GS 105-286.1 and GS 105-328.1 as appropriate. 

Applies for taxes imposed for taxable years beginning on or after July 1, 2023. 

Section 4

Amends GS 143-53.1 to set the competitive bidding benchmark for ORR when awarding or assigning contracts under Subpart D, Part 5, GS Chapter 143B, as amended, at $250,000.

Amends GS 143-131, which requires public construction or purchase contracts of $30,000 or more (but less than the limits of GS 143-129) made by any political subdivision of the State or their officer be made after informal bids have been secured, with all contracts awarded to the lowest responsible, responsive bidder, taking into account specified considerations, and public entities responsible for recordkeeping. Explicitly subjects ORR to these provisions for all contracts for construction or repair work related to disaster recovery involving the expenditure of $250,000 or more of public money, but less than the limits of GS 143-129. Defines construction to include the purchase of manufactured housing units. 

Amends GS 95-25.3 by increasing the minimum wage from $6.15 to $15 per hour. Effective January 1, 2024.

Enacts new Article 26, Earned Wage Access Services Act, providing as follows. Requires registration as an earned wage access (EWA) service provider before providing earned wage access services. Defines earned wage access services as payment of amounts representing earned wages to a consumer prior to the next date on which an obligor is scheduled to pay the consumer, the amount of which is deducted from the obligor's next payment of wages to the consumer. Sets the registration and renewal fee at $1,000; registration must be renewed every three years. Sets out information that must be included in the application for registration/renewal, which is to be submitted through the Nationwide Multistate Licensing System and Registry (NMLS). Permits the Commissioner of Banks (Commissioner) to participate in the NMLS. Requires the Commissioner to approve a registration application/renewal upon the finding of the following: the applicant has satisfied the requirements imposed by the article; (2) the applicant's business will be conducted honestly, fairly, and in a manner commanding the confidence and trust of the community; (3) persons controlling the applicant, as a group, have degrees of character, competence, and experience that command the confidence and trust of the community and justify the belief that the applicant will operate safely, soundly, and in compliance with the law; (4) the applicant meets other similar requirements determined by the Commissioner.  

Directs that an EWA service provider registering for the first time will pay the actual cost of obtaining a credit report and federal and State criminal background checks and the processing fees required by the NMLS. Specifies that a registration is not assignable. Specifies that if the information contained in any document filed with the Commissioner or the NMLS under the article is or becomes inaccurate or incomplete in any material respect, the EWA service provider, whether registered or applying for registration, must within 30 days file a correcting amendment to the information contained in the document.

Allows a registered EWA service provider to provide earned wage access services through a contract with an obligor or service provider to an obligor if: (1) the EWA service provider verifies the consumer's earned wages based on data relating directly to the consumer's earnings in that pay period, (2) the EWA service provider informs the consumer in writing that the consumer has a right to receive the full amount of the obligor's next payment of wages on the next date on which the obligor is scheduled to pay the consumer if the consumer chooses to not use earned wage access services, and (3) the consumer authorizes in writing that the amount of the payment of earned wages from the EWA service provider is to be deducted from the obligor's next payment of wages to the consumer. Prohibits an obligor from sharing information with an EWA service provider relating to the obligor's accrued and expected obligations to the consumer unless the obligor has entered into a contract for earned wage access services with the EWA service provider and the consumer has given advance consent to sharing the information. Allows an EWA service provider to charge a fee for earned wage access services if they are disclosed in writing to the consumer before the consumer chooses to use the services. Provides that if an EWA service provider complies with this Article, then the EWA service provider's earned wage access services are not lending activity and its payments pursuant to those services are not loans, and any fees for the EWA service provider's earned wage access services are not interest.

Allows the Commissioner to examine an EWA service provider, with the costs borne by the EWA service provider. Specifies when the reimbursement of these expenses can be waived. Permits the Commissioner to also conduct an examination of an EWA service provider upon receipt of a consumer complaint.

Specifies that information obtained by the Commissioner is subject to the confidential treatment under GS 53C-2-7 (confidentiality provisions pertaining to certain records of the NC Office of the Commissioner of Banks). Requires Commissioner to report enforcement actions and other relevant information to the NMLS.  Authorizes the Commissioner to enter into written agreements with certain entities to share confidential information with these entities. Sets forth rules relating to confidentiality for these shared records. Clarifies that the Commissioner is not prohibited from releasing to the public a list of persons registered under the article or aggregated financial data on the registered EWA service providers. 

Allows the Commissioner to adopt rules to enforce the Article and procedures aggrieved persons may take, including an initial appeal to the State Banking Commission and subsequent petition for judicial review.  Sets out actions that may be taken for violations of this Article or any rule adopted under it, after notice and opportunity for hearing, to include (1) revoking, suspending, or refusing to renew an EWA service provider's registration; (2) ordering an EWA service provider to cease and desist from providing earned wage access services; (3) assessing a civil penalty of not more than $10,000 for each willful violation, with the clear proceeds of the penalty to be remitted to the Civil Penalty and Forfeiture Fund; and (4) ordering an EWA service provider to make restitution to the injured customer. Failure to comply with the Article is an unfair or deceptive trade practice. Sets forth rules related to service of process.

Effective May 1, 2024.

Amends GS 133-17 (pertaining to administrative payments related to eminent domain) to delete language stating that the statute does not create enforceable rights in court with the agency's determination conclusive. Also enacts new subsection GS 133-17(b) providing for the right of a person aggrieved by an agency determination to judicial review in the superior court where the displacement has occurred or will occur after exhaustion of administrative remedies. Sets forth rules and procedures related to exhaustion and judicial review including required content and timing of a petition. Sets out three conditions under which a court may affirm, reverse, or modify the agency's determination. Provides for an appeal of the determination of the superior court. Applies to administrative proceedings for which a final determination is entered on or after the act becomes law.

Amends GS 105-130.19 (pertaining to when taxes must be paid by corporations) and GS 105-131.1A (pertaining to taxation of an S Corporation as a taxed pass through entity) to allow for the entity to defer the full amount of tax payable to the next taxable year if the corporation has been in existence less than five years and files a return showing a State net income of less than $5,000 for the taxable year. Makes conforming changes. Effective for taxable years beginning on or after January 1, 2023.

Amends GS 143-48 (state policy to promote certain contractors in goods and service contracts); GS 143-135.5 (state policy to promote certain contractors in contracts for the construction of public buildings) and GS 143B-1361 (state policy to promote certain contractors as part of its information technology procurement policy) to encourage and promote these divisions of the State to use contractors that that have been in operation for less than five years, in addition to contractors who are small businesses, women, minorities, and physically handicapped. Requires the Department of Administration to compile information on participation in State goods and services and construction contracts by contractors that have been in business for less than five years. Sets forth required analytics in report. Effective October 1, 2023, and applies to contracts awarded on or after that date.

Provides for salary supplements to school psychologists for the 2023-24 fiscal year to be provided in addition to any salary received under the teacher salary schedule, as follows: (1) $650 per month and (2) for school psychologists who have a National Certified School Psychologist Credential, 12% of their monthly salary. Appropriates $8.1 million in recurring funds from the General Fund to the Department of Public Instruction (DPI) for the compensation increase.

Enacts GS 115C-316.6, the school psychologists grant program, to provide funds to public school units for signing bonuses to recruit school psychologists subject to the following conditions: (1) DPI must prioritize the award of funds to public school units without a full-time psychologist at the time the application is submitted; (2) no individual bonus can be greater than $5,000; (3) the school psychologist must agree to remain employed in the public school unit for at least one year; and (4) grants must be used to supplement, not supplant, State or non-State funds already used for these services. Sets forth application requirements and instructs the Superintendent of Public Instruction to develop criteria and guidelines for the administration of the grants. By no later than April 1, 2024, and annually thereafter in years where funds are awarded, requires the superintendent of DPI to report to the specified NCGA committee and division on the grant program. Appropriates $1.7 million in recurring funds for 2023-24 from the General Fund to DPI for the grant program.

Requires DPI to reclassify at least one position within the department to serve as a full-time recruitment and retention coordinator to increase the number of school psychologists in public schools that have a demonstrated need that is difficult to fill by no later than September 1, 2023.

Enacts GS 115C-316.7 requiring DPI to establish an internship program for school psychologists in public school units. Sets forth stipend and field supervisor compensation. Appropriates $5 million in recurring funds from the General Fund to DPI for the internship program.

Appropriates $5 million in nonrecurring funds from the General Fund to the UNC Board of Governors for the 2023-2024 fiscal year to be allocated to Appalachian State University (ASU) to host a virtual school psychology training program at the ASU campus in Hickory, North Carolina.

Appropriates $1.6 million in recurring funds from the General Fund to the UNC Board of Governors for the 2023-24 fiscal year to be allocated to five specified constituent institutions to support the school psychology programs at those institutions with the goal of doubling the number of school psychologists produced.

Effective July 1, 2023.

Amends the following statutes to no longer limit the firearms that can be ordered to be destroyed to only those which do not have a legible, unique identification number or are unsafe for use because of wear, age, or modification: GS 15-11.1(b1)(3) (relating to the disposition of firearms seized as evidence); GS 15-11.2(d)(1) (relating to the disposition of unclaimed firearms not confiscated or seized as evidence); and GS 14-239.1(4) (relating to the confiscation and disposition of deadly weapons used by a defendant upon conviction of certain offenses). Applies to any firearm found or received by a local law enforcement agency on or after July 1, 2023.

Part I.

Amends GS 58-21-10, which sets out the definitions for terms as they are used in Article 21, Surplus Lines Act, as follows. Excludes from the definition of surplus lines insurance: (1) insurance of property and operations of railroads engaged in interstate or foreign commerce and (2) personal and commercial automobile liability insurance required to be written by licensed insurers under GS 58-37-5, excluding excess automobile liability insurance. Amends the definition of wet marine and transportation insurance by adding that it includes ocean marine insurance. Makes additional technical and clarifying changes.

Amends GS 58-21-40 by adding to the functions of the North Carolina Surplus Lines Association providing other services to its members that are identical or related to the association’s purpose.

Amends GS 58-21-85 by amending the due date of the premium receipts tax paid by a surplus lines licensee so that payment is now due: (1) for risk purchasing groups, at the same time the licensee files a quarterly report with the Commissioner of Insurance (Commissioner) or (2) for surplus lines insurers receiving invoices from the North Carolina Surplus Lines Stamping Office SLIP system, 30 days after the end of each quarter.

Part II.

Amends GS 58-3-179 to require health benefit plans to provide coverage for colorectal cancer exams and labs test for cancer, for any non-symptomatic covered individual who is: (1) at least 45 (was, 50) years old or (2) less than 45 (was, 50) years old and at high risk for colorectal cancer. Applies to insurance contracts issued, renewed, or amended on or after October 1, 2023.

Part III.

Amends the following statutes by changing the name of the ThomsonMicromedex DrugDex to the Micromedex DrugDex System: GS 58-51-59, GS 58-65-94, and GS 58-67-78.

Part IV.

Amends GS 58-48-20, which sets out the definitions for terms as they are used in Article 48, the Insurance Guaranty Association Act, by making clarifying and technical changes.

Amends GS 58-48-35 the North Carolina Insurance Guaranty Association’s (Association) obligation as follows. The Association is obligated, under current law, to the extent of the covered claims that exist before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the policy expiration date if less than 30 days after the determination, or before the insured replaces the policy or causes its cancellation, if done within 30 days of the determination. Increases the upper limit, so that this obligation includes only the amount of each covered claim that exceeds $50 and is less than $500,000 (was, $300,000). Makes conforming changes. Specifies that the Association’s lack of obligation in an amount in excess of the obligation of the insolent insurer under the policy from which the claim arises include an applicable specific and aggregate limit. Applies to covered claims arising from orders of liquidation becoming final on or after October 1, 2023.

Part V.

Amends GS 58-19-30, as follows. Adds the following to the standards that apply to transactions within an insurance holding company system to which an insurer subject to registration is a party. (1) If the Commissioner determines that the continued operation of an insurer subject to Article 19 (Insurance Holding Company System Regulatory Act) is hazardous to the insurer's policyholders, creditors, or the general public, then the Commissioner may require the insurer to choose between securing and maintaining either a deposit held by the Commissioner or a bond with respect to any contract or agreement entered into by the insurer. Sets out additional requirements for the duration and amount of the bond or deposit. (2) Provides that all of the insurer’s records and data (as defined) held by an affiliate remain the property of the insurer and are subject to the insurer’s control. Require an affiliate holding an insurer’s records and data to: (a) ensure, at no additional cost to the insurer, that the records and data the insurer controls are identifiable and segregated, or readily capable of segregation, from all other persons' records and data; (b) provide to any receiver of the insurer, upon request: a complete set of all records and data of any type that pertain to the insurer's business, access to the operating systems on which the records and data are maintained, and the software that runs those systems; and (c) if the affiliate defaults under a lease or other agreement, secure a waiver of any landlord lien or other encumbrance to provide the insurer access to all records and data. (3) Makes the insurer’s premiums or other funds collected by or held by an affiliate the exclusive property of the insurer and subject to the insurer’s control. Makes any right of offset in the event an insurer is placed into receivership subject to Article 30 (Insurers Supervision, Rehabilitation, and Liquidation) of GS Chapter 58.

Amends GS 58-19-30(b), which sets out transactions involving a domestic insurer and any person in its holding company system that must give the specified notice to the Commissioner before entering into the transaction. Makes the following changes to the provisions in (b)(4) applicable to all management agreements, service contracts, tax allocation agreements, or cost-sharing arrangements.

Requires defining records and data (was, books and records) of the insurer to include all information developed or maintained under or related to the contract or agreement that are otherwise the insurer’s property (was, developed or maintained under or related to the agreement). Defines records and data.

Requires specifying that all of the insurer’s records and data (was, books and data) remain the insurer’s property and are subject to the insurer’s control; adds that the records and data must be held, at no additional cost to the insurer, in a manner that ensures that the records and data controlled by the insurer are identifiable and segregated, or readily capable of such, from all other persons’ records and data.

Requires including standards for termination of a contract with and without cause.

Adds the instances providing indemnification of the insurer, to also include when the affiliate violates the specified terms.

Amends the conditions that must be met if the insurer is placed in supervision, conservatorship, or receivership (was, in receivership), or seized by the Commissioner as follows. (1) Requires all of the insurer’s rights under the contract or agreement to extend to the receiver, conservator, or Commissioner. (2) Requires all of the insurer’s books and data to be, at no additional cost to the receiver or Commissioner, identifiable and segregated, or readily capable of such, from all other persons’ records and data. (3) Adds requirements for the insurer’s records and data that are being turned over to the receiver or Commissioner upon request. (4) Requires the affiliate, at the direction of the receiver or Commissioner, to make available all employees required to maintain the continued performance of operations or services of the insurer deemed essential by the receiver or Commissioner.

Requires specifying that the affiliate has no automatic right to terminate the agreement if the insurer is placed in supervision, conservatorship or receivership, or seized by the Commissioner (was, placed in receivership).

Requires specifying the following with respect to the performance of services after termination of the contract or agreement if the insurer is placed in supervision, conservatorship, receivership, or seized by the Commissioner: (1) that the affiliate must, at the direction of the conservator or Commissioner, provide services deemed essential after termination of the contract or agreement; (2) that the contract or agreement must specify the minimum period of time essential services must be performed after termination; and (3) that, until the insured is released by the receiver, Commissioner, or a court order, performance of essential services after the contract or agreement’s termination must be provided without regard to pre-receivership unpaid fees, if the affiliate continues to receive timely payment for post-receivership services rendered.

Requires specification that if the insurer is placed in supervision, conservatorship, receivership, or is seized by the Commissioner, the affiliate will: (1) maintain any infrastructure necessary to the performance of the contract or agreement and (2) until the insured is released, make any infrastructure necessary to the performance of the contract or agreement available to the receiver or Commissioner, if the affiliate continues to receive timely payment for post-receivership services rendered.

Requires specifying that if the insurer is placed into receivership and portions of the insurer's policies or contracts are eligible for coverage by one or more guaranty associations, then, subject to the receiver's authority over the insurer, the affiliate's specified commitments extend to the affected guaranty associations.

Further amends the statute by adding the following.

Subjects any affiliate party to an agreement or contract with a domestic insurer that is subject to (b)(4) (as discussed above) to the jurisdiction of any supervision, seizure, conservatorship, or receivership proceedings against the insurer and to the authority of the Commissioner or any supervisor, conservator, rehabilitator, or liquidator for the insurer appointed for the purpose of interpreting, enforcing, and overseeing the affiliate’s obligations under the agreement or contract to perform services for the insurer that (1) are an integral part of the insurer’s operations or (2) essential to the insurer’s ability to fulfill its obligations under insurance policies. Allows the Commissioner to require that an agreement or contract under (b)(4) for the provision of these services specify that the affiliate consents to the jurisdiction.

Applies to contracts issued, renewed, or amended on or after October 1, 2023.

Part VI.

Amends GS 58-30-1 by removing an outdated cross-reference.

Part VII.

Enacts new GS 58-30-262, providing as follows.

Defines large deductible policy as including: (1) A combination of one or more workers' compensation policies and endorsements issued to an insured and contracts or security agreements entered into between the insurer and the insured in which the insured has agreed with the insurer to do either of the following: (a) pay directly the initial portion of any claim under the policy up to a specified dollar amount, or the expenses related to any claim or (b) reimburse the insurer for its payment of any claim or related expenses under the policy up to the specified dollar amount of the deductible. (2) Any policy which contains an aggregate limit on the insured's liability for all deductible claims in addition to a per claim deductible limit. Provides that the primary purpose and distinguishing characteristic of a large deductible policy is the shifting of a portion of the ultimate financial responsibility under the large deductible policy to pay claims from the insurer to the insured, even though the obligation to initially pay claims may remain with the insurer. (3) Any policy with a deductible of $100,000 or greater. Sets out exclusions from the term.

Provides that the statute applies to workers’ compensation large deductible policies insuring workers’ compensation liabilities under the Workers’ Compensation Act issued by an insurer subject to an order of liquidation that has become final in the state of entry, whether the liquidation order is entered in this State or a reciprocal state. Applicability does not extend to claims funded by the Association or a foreign guaranty association net of the deductible unless (d) applies. Subsection (d) requires large deductible polices to be administered in accordance with their terms, except to the extent that those terms conflict with this statute. Requires all large deductible claims resulting from the handling or administration of one or more covered claims of a claimant to be turned over to the Association for handling and administration or be turned over to the foreign guaranty association in the state where the claim is pending for handling and administration. Provides that to the extent the insured funds or pays the deductible claim, the funding or payment of a deductible claim directly or to the Association or a foreign guaranty association by or on behalf of the insured extinguishes any obligations of the liquidator, the Association, or the foreign guaranty association to pay the claim. Prohibits making any charge or claim against the liquidator, the Association, or a foreign guaranty association on the basis of the funding or payment of a deductible claim by or on behalf of an insured.

Provides that to the extent the Association or a foreign guaranty association pays any deductible claim for which the insurer would have been entitled to reimbursement from the insured, the Association or foreign guaranty association is entitled to the full amount of the reimbursement and available collateral as provided for under this statute to the extent necessary to reimburse the Association or the foreign guaranty association. Provides that to the extent that the Association or a foreign guaranty association pays a deductible claim that is not reimbursed either from collateral or by payments by an insured, or incurred expenses in connection with large deductible policies that are not reimbursed under this statute, the Association or a foreign guaranty association is entitled to assert a claim for those amounts in the liquidation proceeding in this State or in the domiciliary state.

Requires the Association or a foreign guaranty association to collect reimbursements owed for deductible claims and take all commercially reasonable actions to collect those reimbursements, unless otherwise agreed to with the liquidator. Sets out additional billing requirements and process for collecting late payments.

Requires the liquidator of the insurer to use collateral, when available, to secure the insured’s obligation to fund or reimburse deductible claims or other secured obligations. Sets out the order to paying claims against the collateral. Requires liquidators of the insurer to draw down collateral to the extent necessary in the event that the insurer fails to: (1) perform its funding or payment obligations under any large deductible policy, (2) pay deductible claim reimbursements within the specified time frames, (3) pay amounts due the estate for pre-liquidation obligations, (4) timely fund any other secured obligation, or (5) timely pay expenses. Sets out when excess collateral may be returned to the insured.

Applies to insurance contracts issued, renewed, or amended on or after October 1, 2023.

Part VIII.

Amends GS 58-33-5 by making a technical correction.

Part IX.

Amends GS 58-56-26 (pertaining to responsibilities of an insurer using a third-party administrator) to allow for an insurer to conduct an audit of a third party administrator on site or virtually.

Part X.

Amends GS 58-2-161 (prohibiting false statements to procure or deny benefits of insurance policy or certificate) by changing the punishment from a Class H felony to the following: (1) if the amount of the claim for payment or other benefits is less than $100,000 a violation is punishable as a Class H felony and (2) if the amount of the claim for payment or other benefits is $100,000 or more, a violation is punishable as a Class C felony. Makes technical changes.

Enacts new GS 58-33A-93 specifying that any person who willfully and knowingly conducts business as a public adjuster in violation of Article 33A of GS Chapter 58 is guilty of a Class 1misdemeanor, unless the person’s conduct is authorized by other parts of the article. 

Effective December 1, 2023, and applies to offenses committed on or after that date.

Part XI.

Amends GS 58-3-149 pertaining to unlawful conduct related to certificates of insurance to include a bar on knowingly preparing, issuing, requesting, or requiring a certificate of insurance that contains information not contained in the underlying insurance policy. Effective October 1, 2023.

Part XII.

Amends GS 58-3-145 (pertaining to solicitation, negotiation, or payment of insurance policy premiums) to broaden the definition of what types of payment an insurer may accept to include any form of electronic tender defined in GS 147-86.20. Deletes current requirement that the insure pay for any fees charged by the credit card/debit card company in connection with the transaction and instead adds that an insurer or insurance produce that accepts electronic payment by credit or debit card may charge a convenience fee not to exceed 4% of the electronic payment.  Makes technical changes. Effective October 1, 2023.

Part XIII.

Amends the proof of financial responsibility definition to require proof of ability to respond to liability for motor vehicle policies in the State under GS 20-279.1 from $30,000 to $50,000 for personal injury/death for one person, from $60,000 to $100,000 for personal injury/death to two or more people in any accident, and from $25,000 to $50,000 for property damage. Makes conforming changes to GS 20-279.5 (security required unless evidence of insurance), GS 20-279.15 (payment sufficient to satisfy requirements), GS 20-279.21 (definition motor vehicle liability policy), GS 20-281 (liability insurance prerequisite to engaging in business), and GS 58-37-35 (pertaining to the functions and administration of the NC Motor Vehicle Reinsurance Facility) to reflect new minimum liability limits.  

Amends GS 20-279.21 (definition of motor vehicle policy) to also change the definition of uninsured motor vehicle from when a motorist’s coverage is less than the applicable limits of underinsured motorist coverage for the vehicle involved in the accident and insured under the owner's policy (the “Coverage Standard”) to when coverage is less than the total damages sustained by an individual seeking payment of benefits. Removes the Coverage Standard throughout the section. In instances where an underinsured motorist claim is asserted by a person injured in an accident where more than one person is injured, replaces the Coverage Standard with language directing that a highway vehicle will be considered an underinsured highway vehicle in that instance if all bodily injury liability bonds and insurance policies applicable to such highway vehicle at the time of the accident are exhausted and the total amount paid to the claimant is less than the total damages sustained by the person seeking payment of benefits under the subdivision. Amends language clarifying that underinsured motorist coverage does not kick in unless that coverage is greater than bodily injury coverage to provide that the available underinsured motorist coverage is the amount of underinsured motorist coverage under the owner’s policy that exceeds the policy’s bodily injury limits. Expands the triggering events for when liability coverage has been exhausted for underinsured motorist coverage to when it has been paid or tendered. (Currently, just paid.) Specifies that the amount of underinsured motorist coverage applicable to any claim for benefits under the subdivision will not be reduced by a setoff or credit against any coverage, including liability insurance, except for workers' compensation coverage to the extent provided for in the statute. If a claimant is an insured under the underinsured motorist coverage on separate or additional policies, specifies that the total amount of underinsured motorist coverage applicable to the claimant is the sum of the limits of the claimant's underinsured motorist  coverages as determined by combining the highest limit available under each policy and will not be reduced by a setoff against any coverage, including liability insurance, except for workers' compensation coverage to the extent provided for in the statute. Deletes language relating to the limits of underinsured motorist coverage. Makes conforming and technical changes.

Increases the amount of money or securities required as proof of financial responsibility under GS 20-279.25 from $85,000 to $125,000.

Amends GS 58-37-35 (pertaining to the functions and administration of the NC Motor Vehicle Reinsurance Facility) to increase uninsured motorist coverage from $30,000 to $50,000 per person and from $60,000 to $100,000 per accident for bodily injury and from $25,000 to $50,000 for property damage. 

Effective October 1, 2025, and applies to policies issued, amended, or renewed on or after that date.

Amends the definition of Certifying entity in GS 90-732(4) as it applies in Article 43 (Behavior Analyst Licensure) to include the Qualified Applied Behavior Analysis Credentialing Board, in addition to the already-existing Behavior Analyst Certification Board, Inc. Includes the successors for both of these certifying entities. 

Directs the Department of Commerce (Department) to provide outreach and education to business owners on employee equity ownership plans, and technical assistance to business owners to understand the feasibility of implementing these plans. Appropriates $50,000 from the General Fund to the Department each year of the 2023-25 fiscal biennium for these purposes. Permits the Department to work with any relevant nonprofits to achieve these purposes. Effective July 1, 2023. 

Repeals GS 90-96.2 (pertaining to limited immunity for drug-related overdose treatment) and makes conforming change to GS 14-18.4(f) (Samaritan protection) to refer to new GS 90-96.3.

Enacts GS 90-96.3 providing for limited immunity for certain covered crimes that relate to overdose treatment. Defines protected person as any person who (1) requests medical assistance for themselves or another person experiencing an overdose, (2) is the subject of that request, or (3) is at the scene of an overdose where medical assistance has been requested. Defines covered crimes as an offense that qualifies for immunity described in GS 90-96.3, which includes:

• GS 90-95 (NC Controlled Substances Act [NCCSA])
• GS 90-95.1 (Continuing criminal enterprise-NCCSA)
• GS 90-113.22 (possession of drug paraphernalia)
• GS 90-113.23 (manufacture or delivery of drug paraphernalia)
• GS 90-98 (attempt and conspiracy under the NCCSA) in connection with a covered crime
• GS 90-108 (NCSA)
• GS 14-18.4 (death by distribution of certain controlled substances)
• GS 18B-302 (sale to or purchase of alcoholic beverages by underage persons)
• A nonviolent misdemeanor or nonviolent felony as defined in GS 15A-145.5(a) (expungable offenses)

Also defines overdose. Specifies that a protected person will not be arrested, charged, prosecuted, or subject to any criminal penalty for a violation of any covered crime, nor will they be arrested or detained on an outstanding warrant for a covered crime, if either of the following conditions is met: (1) the grounds for arrest, charge, prosecution, detention, or other penalty were obtained because of a request for assistance for a person experiencing an  overdose or (2) the identity of the protected person is learned because of a request for assistance for an individual experiencing an overdose. Further specifies that if those conditions are met, then a protected person is not in violation of the conditions of any restraining order or protective order, pretrial release, probation, parole, or post-release supervision. Allows for the court to consider those grounds as mitigating factors in a criminal prosecution of a protected person where immunity is not available. In addition to any other immunity available at law, provides immunity from civil liability for the arrest or filing of charges for law enforcement officers who, acting in good faith, arrest or charge a person who thereafter is determined to be entitled to immunity. Clarifies that the statute is not intended to: (1) limit the admissibility of evidence obtained in connection with the investigation and prosecution of any offense other than a covered crime; (2) limit any seizure of evidence or contraband otherwise permitted by law; and (3) limit or abridge the authority of a law enforcement officer to detain or take into custody a protected person in the course of an investigation of, or to effectuate an arrest for, any offense other than a covered crime.

Effective October 1, 2023, and applies to acts or omissions on or after that date.

Includes NCGA findings.

Establishes the 11-member Study Committee on Automation and the Workforce (Committee) to serve as a study and advisory committee on the effects of automation on the State's workforce, with a special emphasis on low-income and minority workers. Sets out specific issues the Committee must study. Sets out provisions for the appointment of the members by the Governor, President Pro Tempore of the Senate, and Speaker of the House of Representatives; names ex officio members. Requires appointments to be made to the Committee by October 1, 2023, and with membership terms commencing on October 1, 2023. Member terms are for two years; allows voting members to be reappointed to successive terms. Requires the election of members to conducted during the initial organizational meeting with elected members' terms deemed to begin on October 1, 2023. Provides for the appointment of co-chairs, removal of members, per diem and travel and subsistence expenses, establishing a quorum and assignment of staff. Requires the Committee to report to the Governor and specified NC commission before the 2025 convening of the NCGA, with reports due biennially after that.