Senate committee substitute replaces the content of the 1st edition with the following.

Amends GS 7B-2200.5 to require transfer of jurisdiction over a juvenile to superior court for trial as an adult if the juvenile was at least 16 at the time the juvenile allegedly committed an offense that would be a Class A, B1, B2, C, D, E, F, or G felony if committed by an adult, upon notice of the return of a true bill of indictment provided in GS 15A-630 (previously required either (1) notice to the juvenile and a finding by the court that a bill of indictment has been returned against the juvenile charging the commission of an offense that would constitute a Class A, B1, B2, C, D, E, F, or G felony if committed by an adult or (2) notice, hearing, and a finding of probable cause that the juvenile committed an offense that constitutes a Class A, B1, B2, C, D, E, F, or G felony if committed by an adult). Maintains prosecutor discretion to prosecute in superior court a matter that would otherwise be subject to mandatory transfer for offenses that would be a Class D, E, F, or G felony if committed by an adult. Repeals subsection (c), which required the probable cause hearing (to determine if the alleged offense would require transfer of jurisdiction) to be conducted within 90 days of the date of the juvenile's first appearance, with the court permitted to continue for good cause. 

Amends GS 7B-2200 to require transfer of jurisdiction of a juvenile under 16, but at least 13, to superior court for trial as an adult if the alleged felony constitutes a Class A felony, upon notice of the return of a true bill of indictment provided in GS 15A-630 (previously required a finding of probable cause).

Makes conforming changes to GS 7B-2202 relating to required hearings to determine probable cause for all other felony cases in which the juvenile was at least 13 when the offense was allegedly committed. 

Enacts GS 7B-3103 authorizing courts to order the Division of Juvenile Justice of the Department of Public Safety, or any law enforcement agency, to release to the public specified information about a juvenile upon making three written findings in the order: (1) that a petition has been filed alleging the juvenile has committed an offense that would subject the juvenile to transfer to superior court pursuant to GS 7B-2200 or GS 7B-2200.5, (2) there is a judicial determination that the juvenile presents a danger to self or others, and (3) there is a judicial determination that good cause exists. Enumerates information about the juvenile that may be disclosed, including a photograph, first and last name, the offense alleged, whether secure custody was issued, and a statement of the juvenile's threat to self or others. Prohibits disclosure if the juvenile is taken into custody. Requires removal of information from any publicly available law enforcement agency or Division website or controlled account when the juvenile subject to the order or emergency disclosure is taken into custody. Requires the disclosing entity to make a reasonable effort to notify a parent, legal guardian, or custodian of the juvenile before disclosure. Authorizes the Division to release the information when exigent circumstances exist; requires the releasing party to subsequently seek the required release order as soon as reasonably practicable and no later than the first available session of a court in the county after release. Requires removal of the information released from any agency or Division website or controlled account if the court does not issue the release order at that first session.

Amends GS 7B-2101 regarding juvenile interrogation procedures. Requires juveniles who are at least 16 and in custody to be advised, prior to questioning, that the juvenile has a right to have a caretaker present during questioning (in addition to current law that includes the right to have a parent, guardian, or custodian present for questioning, applicable to all juveniles). Defines caretaker as any person other than a parent, guardian, or custodian who has responsibility for the health and welfare of the juvenile in a residential setting; includes stepparent; foster parent; adult member of the household; adult entrusted with the juvenile's care; potential adoptive parent during a visit or trial placement with a juvenile in custody of the county department; house or cottage parent who has primary responsibility for supervising a juvenile's health and welfare in a residential child care facility or residential educational facility; or employee or volunteer of a division, institution, or school operated by the Department of Health and Human Services. 

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

Changes the act's long title.

Senate committee substitute to the 1st edition makes the following changes. Amends GS 105-228.5(d)(3) to delete language allocating up to 20% of the net proceeds credited to the Department of Insurance (Department) to be used to fund the provisions of the Firefighters' Cancer Insurance Program, with the balance of the 20% as determined in accordance with the provisions of GS 58-87-10(f) (calculations for the amount to meet the needs of the Workers’ Compensation Fund [WRC]) credited to the WRC.  Instead, now credits up to 20% to the WRC, but caps that fund reserve at $45 million, and requires that the balance of the 20% be credited to the Department to be used to fund the Firefighters’ Cancer Insurance Program.

Deletes proposed amendments to GS 58-87-10 in its entirety and instead enacts new Article 86A to GS Chapter 58, titled the “Firefighters’ Cancer Insurance Program (Program).” Specifies that the Article’s purpose is to provide health benefits as authorized by the Article to eligible firefighters with a new diagnosis of cancer on or after January 1, 2022, and that the health benefits provided under the Article be supplemental to any other health benefits authorized by law for firefighters.  Defines terms cancer, eligible firefighter, fire department, and firefighter. Sets forth the following eligibility requirements for the Program: (1) service in a NC fire department for a minimum of 5 years and (2) a new diagnosis of cancer on or after January 1, 2022, except if they are receiving benefits related to cancer under the NC Worker’s Compensation Act. Provides for the following benefits under the Program; (1) medical costs reimbursement of up to $12,000 for any out-of-pocket medical expenses incurred, including deductibles, copayments, or coinsurance costs, for each diagnosis of cancer; (2) a lump sum benefit of $25,000 for each diagnosis of cancer, capped at $50,000, upon submission of proof of diagnosis to the insurance carrier, the Department, or other applicable payor; (3) payment of specified amounts of disability benefits upon submission of proof to the insurance carrier, the Department, or other applicable payor of total disability resulting from the diagnosis of cancer or that the cancer precludes the firefighter from serving as a firefighter.

Sets forth the following limitation on disability benefits: (1) disability benefits can continue for no more than 36 consecutive months; (2) any firefighter receiving disability benefits may be required to have his or her condition reevaluated to determine if that firefighter has regained the ability to perform the duties of a firefighter. If that reevaluation indicates that the firefighter has regained the ability to perform the duties of a firefighter, then the monthly disability benefits will cease on the last day of the month the reevaluation was conducted; (3) if there is no reevaluation performed, but the firefighter's treating physician determines that the firefighter is again able to perform the duties of a firefighter, then the disability benefits will cease on the last day of the month that the physician made the determination; (4) if a firefighter returns to work as a firefighter before exhaustion of the 36 months of disability benefit an eligible firefighter may receive, and if there is a subsequent recurrence of disability caused by cancer that again precludes the firefighter from performing the duties of a firefighter, then the firefighter will be entitled to any remaining monthly disability benefits, not to exceed 36 months in total; (5) the monthly disability benefit will be subordinate to any other benefit paid from any source to the firefighter solely for a disability related to the cancer diagnosis, so long as that source is not private insurance purchased solely by the firefighter. Disability benefits under this section will be limited to the difference between the benefit amount paid by the other source and the amounts specified under the Article. Sets forth reporting requirements by the Department to the General Assembly and the Governor due on January 1 of each year. 

Makes the act effective July 1, 2023.

Makes conforming changes to act’s long title.

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

Adds a new subsection to Section 2 of the act, amending GS 143-215.107A to no longer require motor vehicle emissions inspections to be performed in Franklin or New Hanover counties, effective on the date the act becomes law. Makes conforming changes to the proposed repeals in GS 143-215.107A, effective on the later of July 1, 2024, or the first day of a month that is 60 days after the Secretary of the Department of Environmental Quality certifies to the Revisor of Statutes that the EPA has approved an amendment to the State Implementation Plan submitted as required by Section 3 of the act. Makes conforming changes to the effective date provisions to reflect organizational changes in Section 2. 

Part I

Transfers the NC Utilities Commission (Commission) from the Department of Commerce to the Department of the State Treasurer (DST). Specifies that the Commission will be administratively located in DST but exercise its prescribed statutory powers independently.

Amends GS 62-10 (pertaining to the composition of the Commission) as follows. Changes the number of commissioners from seven to nine.  Reduces the number of commissioners appointed by the governor from seven to four. The remaining commissioners will be appointed as follows: two by the General Assembly, upon recommendation of the Speaker of the House, two by the General Assembly, upon recommendation of the President Pro Tempore of the Senate and one by the State Treasurer.  Changes the appointing authority if the Governor and State Treasurer fail to submit nominees for appointments or vacancies to the Commission from the Lieutenant Governor to the President Pro Tempore of the Senate. Changes term of Commission chair from four years to three years.  Provides that General Assembly must fill vacancies in line with GS 120-122 (governing vacancies for General Assembly appointments.) Makes conforming changes. Removes outdated language.  

Specifies that two commissioners appointed by the General Assembly, upon recommendation of the Speaker of the House and President Pro Tempore of the Senate will serve an initial four-year term starting on July 1, 2023, so that the number of commissioners is increased to nine.  After the four-year terms conclude, subsequent commissioners appointed to these seats will serve six-year terms. Designates appointment authorities for the commissioners whose terms are expiring. For the three commissioners whose terms are expiring June 30, 2023, one will be appointed by the Governor and the other two by the General Assembly, upon recommendation of the Speaker of the House and President Pro Tempore of the Senate each. For the three terms expiring June 30, 2025, two commissioners will be appointed by the Governor and one by the State Treasurer.  And for the term expiring June 30, 2027, one commissioner will be appointed by the Governor.

Makes conforming changes to GS 143B-433 (organization of Department of Commerce) to remove the Commission.

Part II

Amends GS 143B-437.54 (establishing the Economic Investment Committee [Committee]) as follows. Increases the Committee membership to seven with the two additional members appointed by the General Assembly, upon recommendation of the Speaker of the House and President Pro Tempore of the Senate each. Deletes language barring members of the General Assembly from being members of the Committee. Specifies that members not appointed by the General Assembly will serve until they are no longer in office or are replaced with another designee.  

Repeals GS 120-123(76) listing the Committee as one of the government boards or committee where members of the General Assembly may not serve. Makes other conforming changes.

Part III

Amends GS 143B-283, pertaining to the composition of the Environmental Management Commission (EMC), as follows.  Changes the appointing entity from the Governor to the Commissioner of Agriculture (Commissioner) for two commissioners.  Makes conforming changes to account for new appointing authorities. Makes technical changes.

Amends GS 143B-284 (EMC officers) to have the chair elected by the members of the EMC, rather than designated by the Governor. Makes technical changes and language gender neutral.

Part IV

Amends GS 130A-30, pertaining to the composition of the Commission for Public Health (CPH) as follows. Changes the appointing authority for CPH members, by reducing the number of members appointed by the Governor from nine to five. Specifies that the General Assembly will appoint the remaining four members as follows: two upon recommendation of the Speaker of the House and two upon recommendation of the President Pro Tempore of the Senate. Removes the requirement that one of the Governor’s appointments be a registered engineer experienced in sanity engineering or a soil scientist. 

Removes outdated language. Makes technical and conforming changes.

Specifies that the General Assembly will appoint the successors of four members for those members previously appointed by the Governor whose terms are expiring on April 30, 2023.

Part V

Amends GS 143-350, pertaining to the Board of Transportation (Board), as follows. Deletes provisions pertaining to the membership of the Board (currently, 14 members are from one of the highway divisions with six at-large members, with the 14 division members appointed by the Governor and the at-large members appointed by the General Assembly). Deletes provisions for staggered terms. Replaces the membership as follows.  Specifies that the Board will consist of 20 voting members, 14 of whom will be appointed by the General Assembly, seven upon recommendation of the Speaker of the House and seven upon recommendation of the President Pro Tempore of the Senate. The Governor will now appoint six at-large voting members. Specifies that each highway division must have at least one voting member that is a resident of that highway division, however, no more than three voting members may reside in the same highway division. Designates the Secretary of Transportation as an ex officio nonvoting member of the Board. Provides that all terms will be for four years and will expire on June 30 of the year of expiration. Provides that the chair will be elected by members of the Board, rather than the Governor.  Sets schedule of appointing authorities for when terms expire as follows: (1) the General Assembly will appoint Highway Division 1, 3, 6, 9, 12, and 14 board members from the six division appointments expiring in 2024. Three of these appointments will be made by the Senate and three by the House; (2) the General Assembly will appoint Highway Division 2, 4, 5, 7, and 8 board members from the five at-large appointments expiring in 2024. Three of these appointments will be made by the Senate and two by the House; (3) the Governor will appoint six at-large board members from the eight division appointments expiring in 2026; (4) the General Assembly will appoint Highway Division 10, 11, and 13 board members from the remaining two division appointments expiring in 2026 and the one at-large appointment expiring in 2026. One of these appointments will be made by the Senate and two by the House.

Part VI

Amends GS 113A-104 to change the membership of the Coastal Resources Commission (GRC) as follows. Retains the same number of members but removes the three members who must have experience in land development, coast related business, and coastal agriculture, respectively and who are appointed by the Governor. Replaces those members with three members as follows: one member to be appointed by the Commissioner of Insurance with experience in land development and the other two at-large members to be appointed by the General Assembly, upon recommendation of the Speaker of the House and President Pro Tempore of the Senate each. Provides that the chair will be elected by members of the GRC, rather than the Governor. Makes conforming changes.  

Specifies that the seat eliminated by the repeal of the seats specified above will be the member who was at the time of appointment a coastal property owner or experienced in land development and whose term expires on June 30, 2023.

Part VII

Amends GS 143-241, pertaining to the appointment and terms of office of members of the Wildlife Resources Commission (WRC) as follows. Increases the amount of appointees by the General Assembly to the WRC from eight to ten members, five upon recommendation of the Speaker of the House and five upon recommendation of the President Pro Tempore of the Senate.

Reduces the amount of at-large members appointed by the Governor from two to one. Designates the Commissioner of Agriculture as appointment authority for that additional at-large seat. Makes conforming changes. Effective June 30, 2025.

Part VIII

Amends GS 124-15, pertaining to the membership of the NC Railroad Board of Directors (NCRBD) to reduce the number of members appointed by the Governor from seven to six, with the seventh member now appointed by the State Treasurer. Removes outdated language. Provides that the State Treasurer’s appointee will be one of the appointees with a term expiring in 2023. Permits the Board to determine which of those appointees will be replaced by the appointee of the State Treasurer. Effective on the date that revisions to the Articles of Incorporation of a State-owned railroad to implement the changes in appointing authority made by this section are enacted by the Board of Directors of the State-owned railroad and become effective. The railroad must report to the Revisor of Statutes the effective date of those changes.

Part IX

Amends GS 116-37, pertaining to the Board of Directors of the UNC Health System (UNC Health Board), to change the composition of the members of the UNC Health Board as follows following:

• Four ex officio members who are:

1. The President of The University of North Carolina or the President's designee.
2. The Chief Executive Officer of the University of North Carolina Health Care System.
3. The Chancellor of the University of North Carolina at Chapel Hill.
4. The President of the University of North Carolina Hospitals. 

(Currently eight ex-officio members from UNC which include those listed above, two of whom are faculty members and one of whom is an additional administrator designated by the chancellor, and the President of the UNC faculty physicians.)

• Eight members at large appointed by the General Assembly as follows:

1. One member appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives annually.
2. One member appointed by the General Assembly upon  recommendation of the President Pro Tempore of the Senate annually.

• Twelve of the members at large must be appointed by the Board of Governors after consultation with the President of The University of North Carolina. The Board of Governors will appoint three members annually.

(Currently sixteen at-large members, all serving four-year terms. Four of the members are appointed by the board of directors.)

Removes outdated language. Makes conforming changes.

Specifies that terms of office for all ex officio members of the board of  directors of the UNC Health Board repealed by this section will expire July 1, 2023. All at-large members of the board of directors of the UNC Health Board serving as of July 1, 2023, will remain in office until their current term of appointment expires. Any vacancy occurring in a seat appointed by the board of directors expiring October 31, 2024, will be filled by the General Assembly upon recommendation of the Speaker of the House of Representatives for the remainder of that term of office.

Sets the following schedule for appointments made in 2023, notwithstanding the provisions set forth above relating to one-year terms:

• For a term beginning July 1, 2023, and ending October 31, 2027, one member will be appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives and one member will be appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate. Members appointed to fill those terms of office in 2027 will be appointed to four-year terms of office. These members will fill seats vacated by the prior ex officio members of the UNC Health Board.
• For a term beginning July 1, 2023, and ending October 31, 2026, one member will be appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives and one member will be appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate. Members appointed to fill those terms of office in 2026 will be appointed to four-year terms of office. These members will fill seats vacated by the prior ex officio members of the UNC Health Board.
• For a term beginning October 1, 2023, and ending October 31, 2025, one  member will be appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate. The member appointed to fill that term of office in 2025 will be appointed to a four-year term of office. This member will fill a position expiring in 2023 held by a board of trustee appointment.
• For a term beginning October 1, 2023, and ending October 31, 2024, one member will be appointed by the General Assembly upon  recommendation of the President Pro Tempore of the Senate. This member will fill a position expiring in 2023 held by a board of trustee appointment.
• For a term beginning October 1, 2023, and ending October 31, 2025, one member will be appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives. The member appointed to fill that term of office in 2025 will be appointed to a four-year term of office. This member will fill a position expiring in  2023 held by a board of trustee appointment.

Sets the following schedule for appointments made in 2024:

• Upon recommendation of the Speaker of the House of Representatives, appoint one member to the UNC Health Board for the expiring position held by the board of trustee appointment expiring in 2024. The member appointed to fill that term of office in 2024 will be appointed to a four-year term of office.
• Upon recommendation of the President Pro Tempore of the Senate, appoint one member to the UNC Health Board for the expiring one-year term appointed by the General Assembly upon the recommendation of the President Pro Tempore in 2023. The member appointed to fill that term of office will be appointed to a four-year term of office.

Notwithstanding the requirement for the Board of Governors to appoint three members annually, and length of terms, sets the following schedule for appointments made by the Board of Governors in 2023, 2024, 2025, and 2026:

• No appointments will be made in 2023.
• In 2024, the Board of Governors will appoint three members to terms ending October 31, 2028, and one member to a term ending October 31, 2027. Members appointed to fill those terms of office when expired will be appointed to four-year terms of office.
• In 2025, the Board of Governors will appoint one member to a term of office ending October 31, 2029. The member appointed to fill that term of office when expired will be appointed to a four-year term of office.
• In 2026, the Board of Governors will appoint three members to terms ending October 31, 2030, two members to terms of office ending October 31, 2029, and two members to terms of office ending October 31, 2027. Members appointed to fill those terms of office when expired will be appointed to four-year terms of office.

Part X

Contains severability clause.
Effective July 1, 2023 except as otherwise provided.

Part I.

Amends GS 55A-11-02 to allow a charitable or religious corporation to merge, without prior approval of the superior court, with a limited liability company if (1) its sole member is a domestic or foreign corporation exempt from income tax; and (2) it is disregarded for income tax purposes but would be eligible for an exemption under the specified provision of the Internal Revenue Code if it were not disregarded.

Amends GS 55A-11-09, concerning merger with unincorporated entities, as follows. Expands upon the definition of a business entity to also include a nonprofit association, whether or not it was formed under this State's laws. Provides that if the surviving business entity is not a domestic limited liability company, a domestic business corporation, a domestic nonprofit corporation, or a domestic limited partnership, when the merger takes effect,  the surviving business entity is deemed to have agreed that it may be served with process in this State in any proceeding for enforcement of any obligation of any merging nonprofit association that is formed under the laws of this State. Makes additional technical and clarifying changes.

Applies to plans of mergers adopted on or after October 1, 2023.

Part II.

Enacts new GS 55A-16-22.1 requiring domestic and foreign corporations authorized to conduct affairs in the State to submit annual reports electronically to the Secretary of State that include six specified items, including its principal office address and telephone number, brief description of the nature of its activities, and specified types of contact information. Requires corporations to also submit annual reports with due date varying based on the type of corporation. Sets out the process for filing late reports and for amending previously filed reports. Sets out actions a corporation may take under which it is deemed to have filed the required annual report.

Amends GS 55A-1-22, as amended, by providing that there is no fee for filing the annual report.

Amends GS 55A-14-20 to allow the Secretary of State to commence a proceeding to dissolve administratively a corporation for being delinquent in submitting its annual report. Makes additional technical changes.

Amends GS 55A-14-22 by amending the actions that must be taken before the Secretary of State will cancel a certificate of dissolution and prepare a certificate of reinstatement, to also require the payment of any penalties and payments due. Makes additional clarifying changes. 

Allows the Secretary of State, to waive the fee to be paid by a corporation seeking reinstatement following administrative dissolution for delinquent filing of the annual report, until January 1, 2026.

Applies to annual reports due on or after January 1, 2025.

Part III.

Adds new Article 11B, Domestication, to GS Chapter 55A, providing as follows. 

Allows a foreign nonprofit corporation to become a domestic nonprofit corporation by complying with the Article, so long as domestication is allowed by the laws in the foreign corporation's jurisdiction. Also allows a domestic nonprofit corporation to become a foreign nonprofit corporation by complying with the Article, under a plan of domestication, so long as the domestication is allowed by the laws of the jurisdiction of the foreign corporation. Provides that a charitable or religious corporation may only become a foreign nonprofit corporation in accordance with the statutory requirements for mergers involving charitable or religious corporations, and requires the domesticated corporation to meet the same requirements as the survivor in a merger. Provides that any devise, gift, grant, or promise contained in a will or other instrument made to a domesticating corporation that takes effect or remains payable after the domestication becomes effective, inures to the domesticated corporation unless the will or other instrument provides otherwise.

Allows a domestic nonprofit corporation to become a foreign nonprofit corporation by approving a plan of domestication; sets out items that must be included in the plan. Allows the plan's terms concerning the manner and basis of converting the memberships of the domesticating corporation into memberships, obligations, rights to acquire memberships, cash, or other property, to be made dependent upon facts objectionably ascertainable outside the plan.

Sets out the process under which the plan of domestication is to be adopted when the domestic nonprofit corporation is to be the domesticating corporation. Allows a plan of domestication of a domestic nonprofit corporation to be amended before articles of domestication have taken effect. Sets out the procedures that can be used by a domestic nonprofit corporation in approving an amendment of a plan of domestication. Allows a plan of domestication to be abandoned, as provided for in the plan, after it is approved but before articles of domestication have become effective. Sets out the process for abandonment and requires specified information to be included in the articles of abandonment. 

Sets out what must be included in the articles of domestication, and requires the articles to be signed by the domesticating corporation and filed with the Secretary of State. Sets out provisions governing when the domestication becomes effective. Sets out six provisions that apply once the domestication becomes effective, including that all debts, obligations, and other liabilities of the domesticating corporation remain the responsibility of the domesticated corporation, allows the name of the domesticated corporation to be substituted for the name of the domesticating corporation in any pending proceeding, and the articles of incorporation and bylaws of the domesticated corporation become effective. Sets out provisions governing the interest holder liability of a member in a foreign corporation that is domesticated into this State who had interest holder liability in respect of the domesticating corporation before the domestication becomes effective. Provides that a member who becomes subject to interest holder liability in respect of the domesticated corporation as a result of the domestication has interest holder liability only in respect of interest holder liabilities that arise after the domestication becomes effective. Specifies that a domestication does not constitute or cause the dissolution of the domesticating corporation.

Amends GS 55A-1-22, by setting a $25 fee for filing articles of domestication and a $10 fee for filing articles of abandonment of domestication. 

Amends GS 55A-1-60 to allow a judicial order requiring a meeting of a corporation to be held or that requires a method be used to obtain a vote, to also authorize obtaining votes or approvals necessary for domestication. Makes additional clarifying changes.

Amends GS 55A-8-25 to prohibit a committee of the board from recommending to members or approving domestication.

The above provisions are effective October 1, 2023.

Provides that if a protected agreement of a domestic domesticating nonprofit corporation in effect immediately before the domestication becomes effective contains a provision that applies to a merger of the corporation and the agreement does not refer to domestication, then the provision applies to a domestication as if the domestication were a merger until the provision is first amended after October 1, 2023. Sets forth four items that are considered a protected agreement if in effect immediately before October 1, 2023.

Part IV.

Amends GS 55A-1-50, concerning private foundations, by adding that a private foundation's board of directors consists of one or more natural persons, with the number specified in or fixed in accordance with the articles of incorporation or bylaws.

Amends GS 55A-8-03 to require a board of directors of a nonprofit corporation to have three or more persons (was, one or more); makes conforming and clarifying changes. Amends GS 55A-8-11 to allow a board of directors to have fewer than three members due to vacancies until the vacancies are filled.

Applies to corporations organized on or after October 1, 2023.

Part V.

Amends GS 55A-8-25 by providing that the number required to approve the creation of a committee of the board and the appointment of its members applies unless the articles of incorporation or bylaws provide otherwise. Applies to committees created on or after October 1, 2023.

Part VI.

Adds new Part 1, Conversion to Nonprofit Corporation, in Article 11A of GS Chapter 55A, providing as follows.

Allows a business entity that is not a domestic nonprofit, to convert to a domestic nonprofit if (1) the conversion is permitted by the laws of the state or country governing the organization and internal affairs of the converting business entity and (2) the converting business entity complies with the requirements of this Part 17 and, to the extent applicable, the laws referred to above. Defines business entity as a domestic business corporation, including a professional corporation, a foreign business corporation, including a foreign professional corporation, a domestic or foreign nonprofit corporation, a domestic or foreign limited liability company, a domestic or foreign limited partnership, a registered limited liability partnership or foreign limited liability partnership, or any other partnership whether or not formed under the laws of this State.

Requires the converting business entity to approve a written plan of conversion that includes specified information, including the manner and basis for converting the interests in the converting business entity, if any, into any combination of eligible interests or other securities, rights to acquire interests or other securities, obligations, cash, or other property of the resulting domestic nonprofit corporation. Requires the plan to be approved in accordance with the laws of the state or county governing the organization and internal affairs of the converting business entity. Allows amending or abandoning the plan after it has been approved but before articles of incorporation for the resulting domestic nonprofit have become effective, to the extent legally allowed.

Requires the converting business entity to deliver articles of conversion to the Secretary of State for filing after a plan of conversion has been approved. Sets out what must be included in the articles of incorporation. Sets out steps that must be taken when the plan is abandoned after the articles have been filed. Specifies that the conversion takes effect when the articles of incorporation become effective. Requires certificates of conversion to also be registered.

Provides that when the conversion takes effect, then: (1) the converting business entity ceases its prior form of organization and continues in existence as the resulting domestic nonprofit; (2) the title to all real estate and other property owned by the converting business entity continues vested in the resulting domestic nonprofit without transfer, reversion, or impairment; (3) except as otherwise provided by law or by the plan of conversion, all rights, privileges, immunities, powers, and purposes of the converting business entity remain vested in the resulting domestic nonprofit; (4) all debts, obligations, and other liabilities of the converting business entity continue as debts, obligations, and other liabilities of the resulting domestic nonprofit; (5) a proceeding pending by or against the converting business entity may be continued as if the conversion did not occur and allows the name of the resulting domestic nonprofit to be substituted for the name of the converting business entity in any pending action or proceeding; (6) the interests and obligations in the converting business entity are converted to eligible interests or other securities, rights to acquire interests or other securities, obligations, cash, or other property of the resulting domestic corporation in accordance with the plan of conversion; and (7) all of the following apply to the resulting domestic nonprofit corporation: it is incorporated under and subject to GS Chapter 55A, it converts from the converting business entity into its new form of organization interruption, and it is deemed to have been incorporated on the date that the converting entity was originally incorporated or organized. Specifies that the conversion does not affect the liability or absence of liability of any holder of an interest in the converting business entity for any acts, omissions, or obligations of the converting business entity made or incurred prior to the effectiveness of the conversion. The cessation of the existence of the converting business entity in its prior form of organization does not constitute a dissolution or termination of the converting business entity.

Amends Part 2 of Article 11A of GS Chapter 55A, by renaming the Part to Conversion of Nonprofit Corporation and making the following changes.

Amends GS 55A-11A-10 to require that the plan of conversion of a charitable or religious corporation to a domestic limited liability company comply with the following. If the converting charitable or religious corporation does not have any members entitled to vote on the conversion, the plan must be approved by the board of directors of the converting charitable or religious corporation. If members are entitled to vote on the conversion, the plan must be approved first by the board of directors and then by the members entitled to vote; sets out additional requirements for the voting process. If, as a result of the conversion, one or more members of the converting entity would become subject to new member liability, approval of the plan of conversion requires that each of those members sign a separate record consenting to become subject to the new member liability. Also requires the plan of conversion to be approved by any person or group of persons whose approval is required under GS 55A-10-30 to amend the articles of incorporation or bylaws of the charitable or religious corporation.

Applies to plans of conversion approved on or after October 1, 2023.

Enacts new GS 96-45 (Short-time compensation), creating a program that allows an employer to implement a plan for sharing remaining work after an affected group of employees’ hours are reduced, while the employees receive short-time compensation benefits under the State’s unemployment program. The employer must submit a proposed short-time compensation plan containing the specified requirements to the Department of Commerce’s Division of Employment Security for approval prior to implementation. The new section establishes eligibility requirements for employees and weekly benefit amounts along with a total benefit maximum. Provides that an individual is eligible to receive short-time compensation benefits for any week only if: (1) the individual is employed as a member of an affected unit in an approved plan that was approved before the week and is in effect for the week, (2) the individual is able to work and is available for additional hours of work or for full-time work with the short-time employer, and (2) the normal weekly hours of work of the individual are reduced by at least 10% but not by more than 40%, with a corresponding reduction in wages. Benefits paid under the short-time compensation program count towards an employee’s maximum yearly benefit under the unemployment benefit program. Establishes that seasonal and temporary employees are not eligible for participation in the short-time program and defines seasonal employment, temporary employment, and intermittent employment for purposes of the section. 

Part I.

Appropriates $250,000 in recurring funds from the General Fund to the North Carolina Justice Academy for 2024-25 to expand its ability to serve law enforcement agencies of the state by providing more opportunities to attend courses and trainings. Appropriates $250,000 in nonrecurring funds from the General Fund to the North Carolina Justice Academy for 2024-25 to expand its ability to offer online courses for law enforcement agencies to allow for greater statewide participation in Academy courses and training. Effective July 1, 2024.

Part II. 

Requires the North Carolina Justice Academy and the North Carolina Community College System to develop a memorandum of understanding to allow community colleges to provide training and education to those trained and educated by the Academy to alleviate travel time and related costs. Requires the MOU to be submitted to the specified NCGA committee by October 1, 2024.

Part III.

Appropriates $250,000 in recurring funds from the General Fund to the Department of Justice (DOJ) for 2024-25 to further develop, maintain, and staff the North Carolina Law Enforcement Accreditation Program. Effective July 1, 2024.

Part IV.

Amends GS 17C-20 to open up eligibility for the Criminal Justice Fellows Program (Program) to all counties (was, counties with a population of less than 200,000).

Amends GS 17C-22 to expand upon the Program's purpose to also include forgivable loans for obtaining a Bachelor's Degree or an NC Basic Law Enforcement Training Program certificate of completion. Sets out requirements for recipients of loans for these degrees and certificates, including employment requirements post graduation. Makes conforming changes. Amends GS 17C-23 by making conforming changes to loan terms and disbursement of funds. Gives recipients up to 120 months to repay all funds distributed, including interest, received in pursuit of a Bachelor's Degree and 60 months for those in pursuit of a Basic Law Enforcement Training Program certificate of completion. 

Part V.

Amends GS 15A-401 to require the State's law enforcement agencies to designate specially trained law enforcement officers to be a part of an agency Crisis Intervention Team trained in determining whether a person is experiencing a mental or behavioral health crisis and what methods are available to de-escalate or otherwise safely engage in interactions with the person. Requires the establishment of the team by December 1, 2026, in order to remain eligible for Governor's Crime Commission grants. 

Appropriates $250 million from the General Fund to DOJ for grants for the Crisis Intervention Team training. Effective July 1, 2024.

Part VI.

Includes a severability clause.

Appropriates $2 million for 2023-24 from the General Fund to the Office of State Budget and Management for a directed grant to The Preservation Society of Asheville and Buncombe Co. Inc. as title indicates. Effective July 1, 2023.

Identical to H 504, filed 3/28/23.

Repeals GS 95-79, which made illegal (1) an agreement between an employer and any labor union or labor organization where persons who were not members are denied the right to work for the employer, where membership is a condition of employment, or where the union or organization acquires an employment monopoly in any enterprise or (2) any provision that conditions the purchase of agricultural products, the terms of an agreement for the purchase of agricultural products, or the terms of an agreement not to sue or settle litigation upon an agricultural producer's status as a union or nonunion employer or entry into or refusal to enter into an agreement with a labor union or labor organization. Amends GS 95-78 to make it the State's public policy that the right of persons to work must not be denied or abridged (was, denied or abridged on account of membership or non-membership in any labor union or labor organization or association). Also declares it to be public policy that the rights of labor organizations and associations to enter into labor agreements must not be denied or abridged.

Makes conforming deletions of GS 95-80 (prohibiting membership in labor organizations as a condition of employment) and GS 95-82 (prohibiting payment of dues as a condition of employment).

Amends GS 95-83 by making conforming and clarifying changes.

Repeals Article 12 of GS Chapter 95, concerning units of government and labor unions, trade unions, and labor organizations, and public employee strikes.

Amends GS 55-16-02 (Inspection of records by shareholders) to create a right for a qualified shareholder of a corporation to inspect the records of subsidiaries as long as the corporation has actual possession and control of the records, or could obtain the records from the subsidiary (1) without violating any agreements with third parties and (2) if the subsidiary does not have the legal right to deny a request from the corporation. Defines subsidiary in GS 55-16-01.1(5). 

Effective and applies to written demands for inspection given on or after October 1, 2023.

 

Amends GS 67-4.1 (pertaining to procedures for dogs designated as dangerous) as follows. Enacts new subsection GS 67-4.1(d) that provides a procedure for an owner of a potentially dangerous dog designated as such by the county or municipal authority responsible for animal control to request in writing, at any time more than 18 months after the designation, that the authority set aside the designation. Requires an application and an assessment of the dog by a person approved by the authority and accredited by the Certification Council for Professional Dog Trainers or another accrediting body recognized and approved by the authority. Requires the assessment to include, at minimum, an evaluation of the behavior underlying the declaration that the dog was a potentially dangerous dog and the owner's or keeper's ability to manage the dog. Sets forth four factors the authority must consider in ruling on the application. Requires the authority to issue written findings. Creates immunity for any municipality, county, or any of their officers or employees for a decision made in accordance with new GS 67-4.1(d). Effective October 1, 2023.

Current law, as set forth in GS 160D-107, allows local governments to adopt temporary moratoria on any development approval required by law, except for the purpose of developing and adopting new or amended plans or development regulations governing residential uses. The duration of any moratorium has to be reasonable in light of the specific conditions that warrant imposition of the moratorium and may not exceed the period of time necessary to correct, modify, or resolve such conditions.  If a local government seeks to adopt a moratorium, it must issue, in addition to other things, a statement of the actions, and the schedule for those actions, proposed to be taken by the local government during the duration of the moratorium to address the problems or conditions leading to imposition of the moratorium.

The act amends GS 160D-107(e) (pertaining to renewals or extension limits for moratoria) to exempt renewals or extensions needed to address scheduled Department of Transportation projects from the statement of actions and schedule discussed above. Instead, the ordinance must provide current information on the status of the projects and any available timeline for completion. Applies to moratoria renewal and extension ordinances adopted on or after the date the act becomes law.  

Repeals GS 99E-72, which made GS Chapter 99E Article 8 (providing limited immunity from claims for relief arising from any act or omission alleged to have resulted in the contraction of COVID-19) applicable to claims arising no later than 180 days after the expiration or rescission of Executive Order No. 116 issued by the Governor on March 10, 2020 (which declared a State of Emergency in response to COVID-19 and set out related provisions). 

Specifies that this does not affect any immunity from liability provided under SL 2020-3 (which sets out numerous provisions in response to COVID-19).

Identical to H 551, filed 4/3/23.

Amends GS 42-14.1 (bar on local rent control regulations) to also bar local governments from enacting, maintaining, or enforcing any ordinance or resolution which prohibits an owner, lessee, sublessee, assignee, managing agent, or other person having the right to lease, sublease, or rent a housing accommodation from refusing to lease or rent the housing accommodation to a person because the person's lawful source of income to pay rent includes funding from a federal housing assistance program. Makes conforming changes to section title and organizational changes.

Enacts new GS 42-47, pertaining to service and support animals. Defines health service professional, person with a disability, service animal, support animal, and therapeutic relationship. Bars a landlord from doing any of the following based, in part, upon a tenant, applicant, or household member’s status as a person with a disability or use of a service or support animal: (1) terminate or fail to renew a tenancy; (2) refuse to enter into a rental agreement; (3) impose different terms, conditions, or privileges in the renal of a dwelling; or (4) otherwise make unavailable a dwelling unit or otherwise retaliate in the rental of a dwelling. Permits the landlord to require written verification from a healthcare provider if the disability is not observable or already known. Permits such written verification to be provided by an out-of-state provider if a person is moving from another state.

Provides for a private right of action for a landlord against any person who intentionally or knowingly does any of the following: (1) misrepresents to a landlord that the person is a person with a disability or that the person has a disability-related need for the use of a service animal or a support animal; (2) makes a materially false statement to a health service professional for the  purpose of obtaining documentation or verification that the person has a disability-related need for the use of a service animal or a support animal; (3) provides a document or verification to a landlord that misrepresents that an animal is a service animal or a support animal; (4) fits an animal that is not a service animal or a support animal with an item that would cause a reasonable person to believe that the animal is a service animal or a support animal; (5) does any of the following as a health service professional: (i) verifies a person's disability status and need for a service animal or a support animal without personal knowledge of the person's condition adequate to provide a reliable verification or (ii) charges a fee for providing a written verification for a person's disability status and need for a service animal or a support animal and provides no additional service to the person, unless the health service professional has an ongoing relationship with a person with a disability or conducts a good-faith consultation with a person with a disability for the purpose of providing a diagnosis and treatment recommendation.

Specifies that a landlord prevailing in a private action can recoup actual damages and permits the court to award civil penalties between $500 and $1000 for each violation.

Clarifies that landlords are still permitted to require persons with a service/support animal to comply with the terms of the lease, pay for the cost of repairs to the dwelling unit resulting from the service/support animal, and subject to applicable law, sign an addendum or other agreement that sets forth the responsibilities of an owner of a service/support animal in a dwelling unit.

Provides that, subject to any other State, federal, or local law, a landlord who permits a service/support animal in a dwelling unit is not liable to another person for injury caused by the person’s support/service animal.

Amends GS 42-53 to exempt service/support animals from pet fees charged by landlords. Effective January 1, 2024, and applies to rental agreements or leases entered into on or after that date.

Amends GS 42-46 (pertaining to fees, costs, and expenses authorized to be imposed in any residential rental agreement) to allow for late fees to be imposed when rent is five calendar days late. (Currently statute just specifies five days late.) Amends the litigation costs provision to add an attorneys’ fees provision for small claims and summary ejectment, which is not to exceed for small claims hearings more than 15% of the amount owed by the tenant or 15% of the tenant’s monthly rent stated in the lease if eviction is based on default other than nonpayment of rent, and all actual reasonable attorneys’ fees paid or owed for any appeals of summary ejectment matters. Effective when the act becomes law and is intended to apply retroactively to all pending controversies as of that date. States that these amendments are intended to be clarifying of the General Assembly's intent under previous amendments to this statute.

Amends the NC Condominium Act by enacting GS 47C-2-117.1A, pertaining to amendments of a declaration of condominium, and GS 47F-2-117.1, pertaining to amendments of a declaration of planned communities, as follows. Specifies that amendments made to the declaration pursuant to GS 47C-2-117 will only affect unit owners whose units are conveyed or transferred after the amendment takes effect. Provides that for amendments made while a unit owner owns a unit, the amendment has no effect until the unit is conveyed or transferred to another unit owner and that a unit owner takes the unit subject to existing rules in the declaration at the time of conveyance or transfer of the unit.

Appropriates $350,000 from the General Fund to the Department of Health and Human Services for 2023-24 to be allocated to the Diaper Bank of North Carolina to increase the accessibility of feminine hygiene products in local diaper banks.

Appropriates $1 million in recurring funds from the General Fund to the Department of Public Instruction for 2023-24 to fund the Feminine Hygiene Products Grant Program under GS 115C-377.

Effective July 1, 2023.

Requires the Department of Commerce (DOC) to establish the North Carolina Broadband Assistance Program (Program). Requires DOC to coordinate with county departments of social services to determine eligibility for low-income families for the Program. Makes families with annual household income at or below 100 of the federal poverty level eligible for free broadband service. Provides a credit of at least $15 per month for broadband service to families with annual household incomes above 100%, but no greater than 135%, of the federal poverty level and that include at least one adult individual or dependent child who qualifies for or participates in at least one of the six specified assistance programs. Allows credits to be adjusted according to family size.

Requires program applicants to demonstrate income qualifications at least annually. Requires providing information so that funds can be provided directly to the broadband service provider. Allows terminating participation in the Program upon notification by the broadband service provider that the Program recipient's account is more than 45 days past due. Requires DOC to report on the Program quarterly beginning October 1, 2023, to the specified NCGA committee and division. Specifies information that must be included in the report, including any legislative recommendations relating to the Program.

Appropriates $250 million for 2023-24 from the General Fund to DOC for the Program.

Effective July 1, 2023.

Contains whereas clauses. Amends GS Chapter 90 by enacting Article 1M (Minor Protection Act) to regulate the treatment of gender dysphoria for persons under 18 years old. Prohibits a physician or other health care provider from providing gender transition procedures to any persons under 18 years old unless the procedure meets all the requirements of GS 90-21.141(b). The conditions for a lawful gender transition procedure are: (1) certification from at least two physicians (one of which must be a pediatric psychiatrist not employed by the practice or institution as the other certifying physician) that the patient suffers from a condition that would benefit from a gender transition procedure; (2) both parents must sign the standardized consent form, as defined in GS 90-21.143; (3) the patient must sign the standardized consent form; (4) the patient must receive care consisting of at least monthly appointments with a pediatric psychiatrist for the six months preceding the gender transition procedure; (5) both the physician and the pediatric psychiatrist must separately document the need for ongoing therapy every six months; and (6) the patient must receive ongoing care from a pediatric psychiatrist until the patient reaches the age of majority. 

Provides a list of procedures which are not subject to these requirements, including (1) services for people born with a sex development disorder such as external biological sex characteristics that are ambiguous; (2) services for people diagnosed with a disorder of sexual development through genetic or biochemical testing; (3) treatment for any infection, injury, disease, or disorder caused or exacerbated by gender transition procedures; (4) procedures undertaken because the patient suffers from a physical disorder, injury, or illness that would place the patient in imminent danger of death or impairment of major bodily function unless surgery is performed. 

Prohibits the use, payment, grant, or distribution of public funds by or to any entity, organization, or individual that provides gender transition procedures to a minor in GS 90-21.142. 

Requires the Department of Health and Human Services to develop a standardized consent form for gender transition procedures governed by the new Article 1M. Requires the minor and the minor’s parents to sign the standardized consent form at least 30 days before the first treatment and at every subsequent treatment thereafter. Contains specific text that must be included in the consent form, including a specific statement if the procedure uses puberty blockers, cross-sex hormones, or surgical procedures. 

Establishes civil liability for the physician or health care provider if the minor is injured, including suffering any physical, psychological, emotional, or physiological injury from the gender transition procedure under GS 90-21.144. Requires that a claim for injuries from the procedure be filed within 15 years of the date the minor reaches the age of majority, or would have reached the age of majority if the minor dies before that date. Outlines defenses to liability based on compliance with the requirements of the Article. 

Mandates that a violation of the Article will be considered unprofessional conduct and will justify revocation of licensure and other appropriate discipline by the appropriate licensing authority of the health care provider under GS 90-21.145. Permits a person to assert a violation of the Article as a claim or defense in a judicial or administrative proceeding and obtain compensatory damages and other appropriate relief. Establishes that the certification required by the Article is not a defense to a claim brought under state or federal law for medical malpractice or other civil claims. 

Includes a severability clause in GS 90-21.146. Amends GS 90-21.5 to clarify that a minor’s consent for health services does not apply to any gender transition procedure under GS 90-21.140. Directs the North Carolina Medical Board to adopt temporary rules to implement the provisions of the act. 

Effective October 1, 2023. 

 

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Amends GS 136-19.5 to direct procedures for the Department of Transportation in cases of construction projects that require telecommunications utilities to relocate a line, facility, or a system related to telecommunications. The Department must notify telecommunications utilities when relocation is required, and within 30 days, telecommunications utilities shall alert the Department if the telecommunications utility will design plans for relocation. Authorizes the Department to manage plans of relocation if 30 days have passed. Bill includes definitions of relocation and telecommunications utility.

Enacts Article 51A to GS Chapter 1, which it names the Improper Action Claims Act. In GS 1-620, states that the article’s purpose is to allow citizens of the State who become aware of actions by a public entity that do not comply with legislation enacted by the State to have a cause of action against the public entity to cure noncompliance and to provide remedies in the form of damages. Defines public entity as any board, commission, department, executive department, officer, institution, and any political subdivision of the State. Also defines Attorney General, judiciary, knowing or knowingly, material, obligation, and senior executive branch official.

Specifies that a public entity that knowingly fails to comply with an obligation shall be liable for a civil penalty of not less than $5,500 and not more than $11,000 and for the costs of a civil action to recover any of those penalties or damages. Specifies that a public entity may be sued notwithstanding any statutory or governmental immunity that the public entity could otherwise invoke in any civil action not arising under Article 51A. Requires Attorney General to investigate alleged violations of the act and authorizes the Attorney General to bring a civil action against a public entity if it finds a violation of the act. Authorizes the Attorney General to retain a portion of damages as reimbursement for costs in investigating and bringing suit, with the remainder of the proceeds to be used by the Attorney General to carry out the provisions of the act. Authorizes a civil action (the “qui tam action”) against a public entity by a private person in the name of the state, so that the private person is a qui tam plaintiff (i.e., a person who brings a lawsuit on behalf of a government entity). Sets forth procedures related to the filing of the qui tam action, intervention, and the State’s right to take over the qui tam action. Sets forth eight rights of the parties to a qui tam action.  Provides for awards of a percentage of damages to the qui tam plaintiff as well as reasonable attorneys’ fees and costs.

Enacts GS 1-621, pertaining to general provisions. Lists the following prohibited actions:

• No court shall have jurisdiction over an action brought under Article 51B against a member of the General Assembly, a member of the judiciary, or a senior executive branch official acting in their official capacity if the action is based on evidence or information known to the State when the action was brought.
• In no event may a person bring an action under GS 1-620 that is based upon allegations or transactions that are the subject of a civil suit or an administrative civil money penalty proceeding in which the State is already a party.
• Unless opposed by the State, the court must dismiss an action or claim under GS 1-620 if substantially the same allegations or transactions as alleged in the action or claim were publicly disclosed by any of the following: (i) a State criminal, civil, or administrative hearing in which the State or  its agent is a party, (ii) a State legislative, Office of the State Auditor, or other State report, hearing, audit, or investigation, (iii) the news media. This subsection does not apply to any action brought by the Attorney General or when the person bringing the action is an original source of the information. Defines original source.

Specifies that the State is not liable for expenses that a qui tam plaintiff incurs in bringing a qui tam action. Prohibits retaliation.

Enacts GS 1-622 (pertaining to civil investigative demands), which authorizes the Attorney General to issue administrative subpoenas in relation to alleged violations of Article 51A. Sets out requirements for the production of documents. Provides for custodian of the documents and for confidentiality. Provides for judicial enforcement of administrative subpoena and specifies authorized use of the documents obtained.

Enacts GS 1-623, pertaining to procedural matters related to the cause of action set forth in GS 1-620, including statute of limitations, intervention by the Attorney General, the burden of proof, estoppel, venue, and service of process on federal, state, or local authorities.

Enacts GS 1-624, pertaining to remedies. Clarifies that the provisions of Article 51A are not exclusive.  Contains severability clause. Sets forth reporting requirements for settlements or judgments paid by public entities.  On or before February 1 of each year, requires the Attorney General to submit a report to the specified joint NCGA Committees on the number of qui tam cases under this Article pending in the State, the number of qui tam cases under this Article that were settled, the number of qui tam cases in which judgment was entered, and the amount of proceeds paid to qui tam plaintiffs during the previous calendar year. Authorizes the Attorney General to adopt rules to carry out Article 51A. 

Applies to obligations existing on or after the act becomes law.

Appropriates $36.7 million in recurring funds for 2023-24 and $72.5 million in recurring funds for 2024-25 from the General Fund to the Department of Health and Human Services, Division of Health Benefits (DHB), to be used for increasing the number of North Carolina Innovations Waiver slots. The funds are a match for $99.3 million in recurring federal funds for 2023-24, and $191.9 million in recurring federal funds for 2024-25, and those funds are also appropriated to DHB for implementation of the act. 

Requires DHB to amend the Innovations Waiver to increase the number of slots by 2,000 for the 2023-24 fiscal year, to be available beginning October 1, 2023, unless approval through the Centers for Medicare and Medicaid Services is required. Directs DHB to allocate the additional 2,000 waiver slots through the currently applicable allocation formula. Establishes a procedure for distributing waiver slots that are not accepted by the initially selected recipients. 

Requires DHB to amend the Innovations Waiver for 2024-25 to increase the number of slots available by 2,000, using the same applicable allocation formula. These slots are made available on July 1, 2024. 

Effective July 1, 2023. 

 

Establishes the Department of Housing and Community Development (Department) as a cabinet-level department containing the Division of Operations, the Division of Community Development, the Division of Housing and the Policy and Legislative Office. 

Amends GS 143B-2 making the Department subject to the Executive Organization Act of 1973. Amends GS 143B-6 making the Department a principal department.

Amends GS 126-5 listing the Department among those which the Governor may designated positions that are exempt from the NC Human Resources Act.

Enacts new Article 17, Department of Housing and Community Development in GS Chapter 143B, providing as follows. Establishes the Departments and sets out its structure. States the Department's mission as: (1) partner with communities in this State to develop economic potential of communities and residents; (2) provide training and certification for building officials; and (3) invest in housing and community development projects in this State to assist low- to moderate-income residents. Establishes the Secretary of the Department of Housing and Community Development as the head of the Department. Establishes the 9-member North Carolina Board of Housing and Community Development to advise the Secretary and to assist in the mission of the Department. Sets out membership appointment power, sets terms at two years and provides for filling vacancies.

Appropriates $25 million in recurring funds for 2023-24 from the General Fund to the Department. Effective July 1, 2023.

Amends the supervision provisions under the Psychology Practice Act (GS 90-270.139) as follows. Enacts GS 90-270.139(e1), which exempts certain licensed psychological associates from supervision if they have met the following requirements: (1) 3,000 hours of postgraduate degree experience in the delivery of psychological services under the supervision of one or more qualified licensed psychologists within a time period of at least 24 consecutive months and less than 60 consecutive months and (2) they submit an application for independent practice with proof of the required hours. Requires the NC Psychology Board (Board) to approve a licensed psychological associate to engage in independent practice if the licensed psychological associate meets those requirements. Makes conforming changes to GS 90-270-139(e) and deletes all of the specified activities for when a licensed psychological associate needs supervision set forth in GS 90-270-139(e)(3). Instead, provides that a licensed psychological associate needs supervision when they engage in psychology. Deletes Board’s rulemaking authority to this section and to define further activities that require supervision. Amends GS 90-270.153 (pertaining to certification as a health services provider under the Psychology Practice Act) to allow for licensed psychological associates who do not need supervision under the requirements set forth above to be granted certification as a health services provider psychological associate upon submission of an application fee.

Amends the terms of office for members of the Board to allow for the Governor to appoint a new member to the Board within 60 days of any vacancy. Deletes provisions requiring the NC Psychological Association, in consultation with chairs of graduate departments of psychology in the State, to submit names of three candidates to the Governor for selection. Instead, requires Board to solicit applications for membership from all licensees of the Board. From the applications, the Board must submit the names of the applicants qualified to all licensees for a vote. From that vote, the Board will submit a list of the three highest vote getters to the Governor for selection. Makes conforming changes. Effective October 1, 2023, and applies to vacancies existing on or after that date.

Effective October 1, 2023.

Adds new subsection (a4) to GS 105-164.27A, which allows a purchaser of qualifying spiritous liquor, defined as a single container of spiritous liquor costing $50,000 or more, to apply for a direct pay permit to avoid paying sales tax on the liquor purchase to the seller and instead pay use tax directly to the Secretary of Revenue. The maximum amount of use tax imposed is $1,000, and the permit applies only to the purchase of qualifying spiritous liquor. Also provides an exemption in GS 105-113.81(f) for luxury liquor, defined as a single container of spiritous liquor costing $50,000 or more. 

Effective and applicable to purchases on or after January 1, 2024. 

 

Amends the NC Uniform Athlete Agents Act (Article 9 of GS Chapter 78C) to provide for certain types of student-athlete contracts, as follows. Defines terms name, image, and likeness (NIL) agency contract (an agreement in which a student-athlete authorizes a person to negotiate or solicit an NIL contract on behalf of the student-athlete), name, image, and likeness (NIL) contract (a contract between a student-athlete and another entity in which the student-athlete receives consideration in exchange for use of the student-athlete's name, image, or likeness), and professional-sports-services agency contract (a agreement in which a  student-athlete authorizes a person to negotiate or solicit a professional-sports-services contract on behalf of the student-athlete). Makes conforming changes to defined term agency contract to include an NIL contract. Removes the term endorsement contract.

Amends GS 78C-94(c) (pertaining to the required form of contracts) to specify that the conspicuous boldface warnings set forth in that subdivision only apply to professional-sports-services agency contracts (currently, applies to agency contracts). Requires an NIL agency contract to contain the specified boldfaced notice in close proximity to the signature. 

Amends GS 78C-95 (pertaining to notice to educational institution) to specify that when a student-athlete enters into professional-sports-services agency contracts they must provide certain notice to certain personnel in their educational institution (currently, only applicable to agency contracts).

Amends GS 78C-98 to provide that if an athlete agent is currently or was within the prior two years employed or in a contractual relationship with an educational institution, the following applies: (1) the athlete agent cannot enter into an NIL agency contract with a student-athlete who is enrolled in that educational institution and (2) an NIL agency contract is void if, following entry into an NIL agency contract, a student-athlete enrolls in that educational institution. Makes conforming changes to GS 78C-88 (pertaining to athlete agents).

Applies to NIL contracts entered into on or after the date the act becomes law.

Amends GS 132-1.2 (confidential information under State public records law) to bar public agencies from disclosing records related to a student-athlete's name, image, and likeness contract with a third party that only came into the possession of an institution of higher education for the purpose of reviewing for compliance with federal law, State law, institutional policies, or policies of an intercollegiate sports association, organization, or conference. Effective when the act becomes law and applies retroactively to all records related to a student-athlete's name, image, and likeness contract ever in the possession of the institution of higher education.

Section 1

Amends GS 20-4.01 by adding new definition mobile drivers license which means a supplemental digital version of a valid drivers license that (1) is approved by the Commissioner, (2) is issued by the Division of Motor Vehicles, (3) is comprised of the same data elements as are found on a valid drivers license, and (iv) is capable of, and limited to, being linked to, and displayed by a mobile device owned by the person to whom the valid drivers license is issued.

 

Enacts new subsection (m1) to GS 20-7 authorizing the Commissioner to issue a mobile driver’s license as a supplemental license upon request of a valid license holder. Specifies that a mobile driver’s license should be treated as the legal equivalent of a valid license.

Effective July 1, 2025

Requires the Division of Motor Vehicles (DMV) of the North Carolina Department of Transportation (Department) to study and provide a plan for implementing mobile drivers’ licenses and mobile special identification cards. Requires DMV to report its findings and recommendations to the NCGA, and specified NCGA committee chairs and division by no later than January 1, 2024.

Section 2

Amends GS 20-7 (pertaining to issuance and renewal of driver’s licenses) by adding disclosure of an applicant’s social security number to the State Board of Elections to verify voter registration data as an additional circumstance where the DMV is authorized to disclose a driver’s license applicant’s social security number.

Section 3

Amends GS 20-17.8 (a1) (ignition interlocks) to expand the scope of persons required to agree to ignition interlock restrictions to include persons whose licenses were revoked for felony or misdemeanor death by vehicle (except for a person engaged in impaired driving), felony serious injury by vehicle, aggravated felony serious injury by vehicle, aggravated felony death by vehicle, and repeat felony death by vehicle offender. Effective December 1, 2023, and applies to offenses committed on or after that date. 

Section 4

Amends GS 20-42 to increase the acknowledgement of signature fees from $2 to $6 for one signature; $3 to $7 for two signatures, and $4 to $8 for three or more signatures. Effective July 1, 2023.

Section 5

Amends GS 20-84,pertaining to permanent registration plates, as follows. Deletes GS 20-84(b)(6) and (10) (listing motor vehicles owned by an incorporated emergency rescue squad and rural fire department, agency, or association, respectively). Incorporates those provisions into new GS 20-84(b)(21), which authorizes permanent registration plates for those same entities so long as the entity can establish that the entity (1) is listed in the Emergency Medical Services (EMS) System Plan in the county to which the entity provides services, (2) maintains an active provider number issued by the North Carolina Office of EMS, and (3) actively provides first responder services to a county, city, or town in the State. Authorizes the DMV to require proof eligibility of any vehicle that may apply for a permanent registration plate, with power to revoke any permanent plates issued to an entity that does not meet those requirements.

Section 6

Amends GS 20-79.2 (pertaining to transporter plates) as follows. Bars plates issued to a business or a dealer from being used to deliver truck cabs or bodies manufactured, constructed, or rebuilt in another state. Specifies that transporter plates can only be issued to a financial institution that has a recorded lien on a vehicle located in North Carolina. (Currently, just requires a recorded lien on a motor vehicle.) Specifies that plates issued to a dealer or repair facility to pick up and deliver a motor vehicle that is to be repaired cannot be used on a vehicle that is towing or transporting a vehicle that is authorized under these provisions to be operated with a transporter plate. Specifies that plates issued to a dealer or a business that contracts with a dealer and has a business privilege license to take a motor vehicle either to or from a motor vehicle auction where the vehicle will be or was offered for sale cannot be used on a vehicle that is towing or transporting a vehicle that is authorized under these provisions to be operated with a transporter plate.   Adds requirement that a vehicle must both be registered and titled (was, registered) in the State for transporter plates related to driving older vehicle to a parade or other public event; sets limit of number of plates issued to a person for that purpose to two.  

Section 7

Requires the DMV, in consultation with the Department of Public Safety (DPS) to study the use of alternative materials for manufacturing the registration plates issued by the DMV. Requires the DMV to report its findings and any legislative recommendations to the NCGA, specified NCGA Committee chairs, and division by January 1, 2024.

Section 8

Amends GS 20-347 by excluding from the statute's odometer disclosure statement requirements, a vehicle that is model 20210 or older (was, a vehicle that is 10 years old or older) and a vehicle that is model year 2011 or newer that is transferred at least 20 years after January 1 of the calendar year corresponding to its designated model year.

Section 9

Amends GS 20-79.5 (pertaining to special registration plates for elected and appointed State government officials) to add provision authorizing multiple plates with the same numeric designation. Directs DMV on how to differentiate multiple plates.   

Section 10

Amends GS 20-49.1 (pertaining to supplemental police authority of DMV officers) to increase the scope of when officers have the authority to enforce criminal laws to when they have probable cause to believe that a criminal act had immediately occurred, or is in the process of occurring, on physical property owned, operated, or maintained by either the North Carolina Department of Transportation or the DMV, or property operated as a license plate agency for and overseen and regulated by the DMV. (Currently, just probable cause to believe that a person has committed a criminal act in their presence.) Deletes language only authorizing police authority when, at the time of the violation they are engaged in the enforcement of laws otherwise within their jurisdiction. Adds additional emergency authorization for officers to exercise police power when an emergency exists and response by DMV personnel could not protect life and property. Specifies that when officers are providing temporary assistance at the request of the head of State or a local law enforcement agency/designee that the DMW officers will be considered an officer of the State (currently, not an officer, employee or agent of the State), but with the same law enforcement authority of the local law enforcement agency/designee asking for assistance. (Currently does not have that same enforcement authority.) 

Section 11

Amends GS 20-79 (dealer license plates) to increase number of months a dealer must be licensed to obtain dealer plates from 12 months to 24 months. Makes conforming changes to table demonstrating permitted the maximum dealer plates based on number of vehicles sold in 24-month period. (Currently, looks at number of vehicles sold in 12-month period) Makes a conforming doubling of  the amount of vehicles that must be sold for each category of maximum number of plates. Makes additional conforming changes.

Amends GS 20-87 (pertaining to passenger vehicle registration fees) to increase fees dealer plate fee for passenger vehicles to double the regular fee for each of the first 5 plates issued and the regular fee for any others beyond those initial five. (Currently, dealer fee is regular fee for first 5 plates and half of regular fee for any others.)

Amends GS 20-288 (pertaining to licensures for motor vehicle dealers) as follows. Amends subsection (a1) (licensure requirements for used motor vehicle dealers) as follows. Increases the course requirement to two 6-hour courses for renewals (currently, one 6-hour course) in a 12-month period. Extends licensure period from one year to two years. Permits corporate surety to give notice of nonrenewal of surety bond by certified mail or electronically if the license holder has consented to electronic delivery of notice. (Currently, must give notice by delivery or certified mail.) 

Amends GS 20-289 to increase license fees for motor vehicle dealers/distributors/distributor branches and wholesalers ($97.00 to $115.00), manufacturers ($210.25 to $420.50 and to $260 from $130 for each factory branch), sales representatives ($21.50 to $25.00), and factory/distributor representatives ($21.50 to $43.00).

Effective October 1, 2023, and applies to plates issued, fees paid, or applications submitted on or after that date.

Section 12

Amends GS 20-79.1 (pertaining to use of temporary plates in lieu of dealer plates) as follows. Notwithstanding any provision of GS 20-111 to the contrary, makes violation of subdivision (2) (involving the improper display or possession of a registration card, certificate of title or registration number plate knowing it is invalid for specified reasons) or (6) (prohibiting giving, lending, selling, or obtaining a certificate of title in order to use it for any purpose other than the registration, sale, or other use in connection with the vehicle for which the certificate was issued)of GS20-111  punishable as a Class I felony (currently class 3 misdemeanor and class 2 misdemeanors, respectively). Effective December 1, 2023, and applies to offenses committed on or after that date.

Section 13

Enacts new GS 20-79.1B (pertaining to print-on-demand temporary registration plates) as follows. Authorizes the DMV to develop and implement procedures necessary for issuance of temporary license plates by dealers to vehicle owners, using print-on-demand technology. Requires all dealers licensed on or after the effective date of the program to to purchase and issue only print-on-demand temporary license plates, if DMV decides to implement such a program. Bars DMV from imposing a requirement relating to the minimum number of sets of temporary plates that must be purchased by a dealer pursuant to a print-on-demand temporary license plate program. Except as otherwise provided in this section, specifies that print-on-demand temporary license plates issued pursuant to GS 20-79.1B are subject to all conditions and limitations set forth Article 3 of GS Chapter 20 except as otherwise provided by the new section. Effective January 1, 2024. Authorizes DMV to adopt rules relating to print-on-demand temporary plates prior to effective date.

Section 14

Amends GS 143-341 (powers and duties related to general services) to increase scope of those powers and duties related to the central motor fleet to permit the DMV to own and maintain custody and control over a fleet of vehicles used in specialized investigative operations. Specifies the vehicles may be received, titled, transferred, or sold as deemed appropriate by the Commissioner.

Section 15

Amends GS 20-131 (pertaining to headlamp and auxiliary driving lamp requirements) to require that any headlamp installed on a vehicle after initial manufacture of the vehicle to comply with Federal Motor Vehicle Safety Standard (FMVSS) 108. Applies to offense committed on or after December 1, 2023.

Section 16

Updates GS 1-105 (service of process upon nonresident drivers of motor vehicles or personal representatives of deceased nonresident drivers) as follows. Makes terms gender neutral. Makes technical and clarifying changes. Increases service of process fee from $10 to $20. Enacts new subsection pertaining to service of process upon a defendant in a place not within the United States. Requires the Commissioner to require a deposit of $100 and delivery by private carrier with proof of actual delivery to the defendant. Effective July 1, 2023, and applies to service upon nonresident drivers on and after that date.

Amends GS 14-190.1, which makes it illegal to intentionally disseminate obscenity by increasing the penalty from a Class I felony to a Class H for violations committed knowingly in the presence of an individual under age 18. Applies to offenses committed on or after December 1, 2023.

Requires the Legislative Research Commission (LRC) to study: (1) the issue of housing discrimination and housing barriers for individuals with criminal records and (2) the issue of homelessness. Sets out issues that must be considered as a part of each study. Requires reports on each study to the 2024 Regular Session of the 2023 General Assembly upon its convening.

Requires the Department of Health and Human Services, Division of Health Benefits (DHB), to set and adjust rates for new services provided by licensed ambulatory surgical centers so that these services are reimbursed at 95% of the Medicare Ambulatory Surgical Centers fee schedule in effect as of January 1 of each year. Requires the following of the new Healthcare Common Procedure Coding System (HCPCS) procedure code G0330, which was adopted by DHB as of January 1, 2023, and incorporated into the Medicaid Clinical Coverage Policy 4A: Dental Services: (1) DHB must not reimburse ambulatory surgical centers based solely on the length of the procedure and requires reimbursement, as of July 1, 2023, so that services billed under procedure code G0330 are reimbursed at 95% of the total payment rate listed on the Medicare Part B Hospital Outpatient Prospective Payment System (OPPS), in effect as of January 1, 2023, and requires the rates to be updated annually starting January 1, 2024, so that services are reimbursed at 95% of the Medicare Part B OPPS payment rate, in effect as of January 1, for that procedure code and (2) all standard benefit plans and BH IDD tailored plans must be required to cover procedures billed under procedure code G0330.

Appropriates $500,000 in recurring funds for each year of the 2023-25 biennium from the General Fund to DHB to implement the act. Specifies that the funds are to provide a State match for the $950,000 in recurring federal funds and appropriates those federal funds to DHB to implement this act.

Identical to H 241, filed 3/1/23.

Enacts GS 143B-1033. Prohibits employers from discriminating against or taking any adverse employment actions against an employee based on either the employee's membership in the NC Wing-Air Patrol, or the employee's statutorily authorized absence, meaning one that is required to perform duties incident to a State approved mission or US Air Force authorized mission, is no longer than seven consecutive scheduled working days for the employee, and which does not exceed 14 scheduled working day absences for the employee in one calendar year. Permits the employer to require documentation of the employee's mission order. Specifies that the enactment does not require an employer to pay salary or wages to an employee during an authorized absence unless the employee chooses to use paid leave. 

Appropriates $5,000 from the General Fund to the Department of Labor for 2023-24 to create and provide educational materials to employers relating to new GS 143B-1033.

Effective July 1, 2023.

Amends GS 20-11(e)(4) (pertaining to level 2 restrictions related to limited learner’s permits and provisional driver’s licenses given to individuals under age 18) as follows. Allows for one additional passenger under 21 years of age to be in driver’s vehicle when the passenger is a student being driven directly to or from school. Effective August 1, 2023.