Legislative Reporting Service

Education, Preschool, Elementary and Secondary Education, Higher Education, Government, Budget/Appropriations, State Agencies, Community Colleges System Office, UNC System, Department of Public Instruction, State Board of Education, State Government, State Personnel, Local Government

H 989 (2023-2024) RETIREMENT SERVICE PURCHASE REWRITE PART III. Filed May 2 2024, AN ACT TO RECODIFY AND STANDARDIZE THE LAWS RELATING TO SERVICE PURCHASES, INCLUDING BY MAKING TECHNICAL, CLARIFYING, AND CONFORMING CHANGES, UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM.

Part I.

Enacts new GS 135-4.5, creditable service purchases, and recodifies specified provisions from existing GS 135-4 pertaining to the purchase of creditable service under the Retirement System for Teachers and State Employees into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 135-4.5 as follows.

Allows any member in service with five or more years of membership service to purchase creditable service by paying a lump sum into the Annuity Savings Fund. Amends the amount to be paid so that it is now equal to the full liability increase of the Retirement System due to the additional service credits purchased plus an administrative fee set by the System’s Board of Trustees. Prohibits purchasing service credit if a benefit is allowable under another public retirement system as a result of the service. Allows the purchase of the following creditable service, with specified guidance and limitations: withdrawn service; federal, state, or local government service; part-time service; temporary service; probationary local government service; involuntary furlough; leave due to extended illness; parental leave and pregnancy or childbirth-related leave; charter school service; and UNC Optional Retirement Program service.

Amends the provisions governing the purchase of creditable service in the US Armed Forces by making the provisions for purchase by members who completed 10 years of membership service, applicable on or before December 31, 2038. Also amends the procedure for purchasing the service for members who completed five years of membership service, whose membership began on or before July 1, 1981, and who were eligible to purchase service credits under the provision for those who completed 10 years of service, but did not make the purchase within three years.

Amends the cost calculation used when members purchase creditable service for periods of employer approved leaves of absence while receiving benefits under the North Carolina Workers’ Compensation Act. Also adds to provisions that apply to such a purchase that an employer is not prevented from voluntarily paying all or a part of the employee portion of the total payment due for the service credit purchased. Prohibits an employer from discriminating against any eligible law enforcement officer in paying all or a part of that portion of the total payment due. Provides that to the extent the employee portion of the total payment due is paid by the employer, the employee portion paid by the employer must be credited to the Pension Accumulation Fund; to the extent the employee portion of the total payment due is paid by the member, the employee portion paid by the member must be credited to the member's accumulated contributions and interest in the Annuity Savings Fund. Requires a member to pay any part of the employee portion of the total payment due that is not paid by the employer.

Allows a member who had service as an employee or teacher, who was omitted from contributing membership though error to be allowed the omitted membership service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the error be given for approval and payment for the omitted membership service. Amends the process for making these payments.

Provides that a member who is reinstated to service as an employee or teacher retroactively to the date of prior involuntary termination with back pay and associated benefits is allowed membership service for that period of reinstated service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the reinstatement, payment of back pay, and restoration of associated benefits be given for approval and payment for the omitted membership service. Amends the process for calculating these payments.

Provides that a member who is reinstated to service as an employee or teacher retroactively to the date of prior involuntary termination with back pay and associated benefits is allowed membership service for that period of reinstated service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the reinstatement, payment of back pay, and restoration of associated benefits be given for approval and payment for the retroactive membership service. Amends the process for calculating these payments.

Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Makes additional organizational, clarifying, conforming and technical changes.

Makes conforming changes to GS 135-1, and GS 135-4.

Amends GS 135-8, concerning the Annuity Savings Fund, by specifying that contributions from the compensation of members to provide for their annuities must be deposited into the Annuity Savings Fund. Provides that the specified creditable service for leaves of absence or interrupted service for educational purposes before July 1, 1981, may be purchased on or before December 31, 2038 (currently, there is no deadline). Makes additional technical and conforming changes.

Part II.

Enacts new GS 128-26.5, creditable service purchases, and recodifies specified provisions from existing GS 128-6 pertaining to the purchase of creditable service under the Local Governmental Employees’ Retirement System into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 128-26.5 as follows.

Allows any member in service with five or more years of membership service to purchase creditable service by paying a lump sum into the Annuity Savings Fund. Amends the amount to be paid so that it is now equal to the full liability increase of the Retirement System due to the additional service credits purchased plus an administrative fee set by the System’s Board of Trustees. Prohibits purchasing service credit if a benefit is allowable under another public retirement system as a result of the service. Allows the purchase of the following creditable service, with specified guidance and limitations: withdrawn service; federal, state, or local government service; part-time service; temporary service; probationary local government service; involuntary furlough; and employment not otherwise creditable.

Amends the provisions governing the purchase of creditable service in the US Armed Forces by making the provisions for purchase by members who completed 10 years of membership service, applicable on or before December 31, 2038. Also amends the procedure for purchasing the service for members who completed five years of membership service, whose membership began on or before July 1, 1981, and who were eligible to purchase service credits under the provision for those who completed 10 years of service, but did not make the purchase within three years.

Amends the cost calculation used when members purchase creditable service for periods of employer approved leaves of absence while receiving benefits under the North Carolina Workers’ Compensation Act. Provides that to the extent the employee portion of the total payment due is paid by the employer, the employee portion paid by the employer must be credited to the Pension Accumulation Fund; to the extent the employee portion of the total payment due is paid by the member, the employee portion paid by the member must be credited to the member's accumulated contributions and interest in the Annuity Savings Fund. Requires a member to pay any part of the employee portion of the total payment due that is not paid by the employer.

Allows a member who had service as an employee or teacher, who was omitted from contributing membership though error to be allowed the omitted membership service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the error be given for approval and payment for the omitted membership service. Amends the process for making these payments.

Provides that a member who is reinstated to service as an employee retroactively to the date of prior involuntary termination with back pay and associated benefits is allowed membership service for that period of reinstated service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the reinstatement, payment of back pay, and restoration of associated benefits be given for approval and payment for the retroactive membership service. Amends the process for calculating these payments.

Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Makes additional organizational, clarifying, conforming and technical changes.

Makes conforming changes to GS 128-21 and GS 128-26.

Amends GS 128-30 concerning the Annuity Savings Fund, by specifying that contributions from the compensation of members to provide for their annuities must be deposited into the Annuity Savings Fund. Provides that the specified creditable service for leaves of absence or interrupted service for educational purposes before July 1, 1981, may be purchased on or before December 31, 2038 (currently, there is no deadline). Makes additional technical and conforming changes.

Part III.

Enacts new GS 135-56.5, creditable service purchases, and recodifies specified provisions from existing GS 135-56 pertaining to the purchase of creditable service under the Consolidate Judicial Retirement System into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 135-56.5 as follows.

Allows any member in service with five or more years of membership service to purchase creditable service by paying a lump sum into the Annuity Savings Fund. Amends the amount to be paid so that it is now equal to the full liability increase of the Retirement System due to the additional service credits purchased plus an administrative fee set by the System’s Board of Trustees. Prohibits purchasing service credit if a benefit is allowable under another public retirement system as a result of the service. Allows the purchase of the following creditable service, with specified guidance and limitations: withdrawn service; federal, state, or local government service; part-time service; temporary service; probationary local government service; involuntary furlough; leave due to extended illness; parental leave and pregnancy or childbirth-related leave, charter school service, UNC Optional Retirement Program service; and employment not otherwise creditable.

Sets out provisions governing when a member who (1) had service qualifying for membership as a judge, clerk of superior court, a Director of Indigent Defense Services, a district attorney, or a public defender, and (2) was omitted from contributing membership though error, may be allowed the omitted membership service.

Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Makes additional organizational, clarifying, conforming and technical changes.

Makes conforming changes to GS 135-53, GS 135-56, and GS 135-58.

Part IV.

Enacts new GS 120-4.12B, creditable service purchases for service in Armed Forces, and recodifies specified provisions from existing GS 120-4.12 pertaining to the purchase of creditable service under the Legislative Retirement System into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 120-4.12B as follows.

Makes the existing provisions applicable to any member of the System who has eight or more years or creditable service as a member of the General Assembly and is purchasing prior service credit for service in the US Armed Forces on or before December 31, 2024; sets out new provisions that apply on or after January 1, 2025. Specifies that only periods of active service in the US Armed Forces are eligible for the purchase of creditable service under the statute.

Amends the definitions that apply to the Retirement System by adding and defining Board of Trustees (Board of Trustees of the Teachers’ and State Employees’ Retirement System, which is responsible for administering the Legislative Retirement System); creditable service (total of a member’s prior service plus membership service for which credit is allowed; credit service is not deemed membership service for the purpose of determining eligibility for benefits); and Retirement System (Legislative Retirement System of North Carolina). Makes additional technical and clarifying changes.

Amends GS 120-4.12(c1) by limiting the provision allowing a member of the Retirement System who was a member of the NCGA as of January 1985 to purchase prior service credit for the month of January 1985 based on 7% of the compensation received, to on or before December 31, 2024.

Amends GS 120-4.15 by limiting the existing provisions governing the repayment of contributions withdrawn for the System, from January 1, 2022, to before January 1, 2025, and sets out a new provision applicable on or after January 1, 2025.

Amends GS 120-4.16 by removing the provision requiring all repayments and purchase of service credit to be made within two years after the member first becomes eligible to make such repayments and purchases and setting out additional requirements when this timeframe is not met. Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Part V.

Makes conforming changes by updating statutory references in: GS 135-5, GS 128-27, and GS 135-53.

Sets out instructions for the Revisor of Statutes on updating statutory cross-references.

Intro. by Carson Smith.

GS 120, GS 128, GS 135

Courts/Judiciary, Education, Government, General Assembly, State Government, State Personnel, Local Government

H 993 (2023-2024) OPS MORATORIUM/OPS & PESA ACCOUNTABILITY. Filed May 2 2024, AN ACT TO IMPOSE A MORATORIUM ON THE AWARD OF NEW OPPORTUNITY SCHOLARSHIPS AND TO ENACT OTHER ACCOUNTABILITY MEASURES FOR OPPORTUNITY SCHOLARSHIPS AND PERSONAL EDUCATION STUDENT ACCOUNTS.

Part I

Starting with the 2024-2025 fiscal year, directs the State Education Assistance Authority (Authority) to not award any scholarship grant funds under Part 2A of Article 39 of GS Chapter 115C (scholarship grants for children to attend nonpublic schools/Opportunity Scholarships) to new persons who did not receive scholarship grant funds in the prior school year. States the General Assembly’s intent to eliminate the Grants beginning in the 2036-37 fiscal year or once all current recipients become ineligible.

Reenacts GS 115C-562.2(b) (Grant award formulas) and removes new award formula in GS 115C-562.2(b2). Redefines eligible student under GS 115C-562.1, as amended, for a Grant award to requires having received a Grant in the school year prior to the school year for which the student is applying.

Amends GS 115C-562.5 (obligations of nonpublic schools accepting students receiving Grants), as amended, as follows. Requires annual documentation (currently, just requires nonpublic schools to provide documentation) of tuition and fees charged. Now limits increases in tuition in a given year by more than the change in the federal Consumer Price Index that is reported in the calendar year in which the increase would occur. Removes listing of required annual tests and instead requires nonpublic schools to annually administer those tests required by the State Board of Education (Board) for students in grades three or higher, but specifies that school can administer additional tests if it chooses. Requires the school to retain testing date for five years. Allows the Authority to audit the school to ensure compliance with the retention requirement. Makes conforming changes. Exempts test performance data collected by the Authority as a public record to the extent the data contains personally identifiable information. Requires student graduation information provided to the Authority to include four-year graduation cohort rates and specifies that the manner must be consisted with Title I of the Elementary and Secondary Education Act of 1965, as amended and any associated federal regulations (currently just requires graduation rate information in a manner consistent with nationally recognized standard). Requires schools to contract with a CPA to perform audits (currently financial review) for each year the school accepts students receiving $100,000 or more in Grants (current those enrolling 70 more students); if less than $100,000 requires audits every three years. Requires the school to report the audit results by December 31 of the year its conducted. Expands annual information requirements to include the contact information for the owners and chief administrator of the school, attendance records for students receiving Grants, documentation of a completed fire inspection within the past 365 days. Requires schools to educate children with disabilities in line with their IEP, the IDEA, and applicable policies adopted by the Board. Requires compliance with certain requirements of Article 8C of GS Chapter 115C, including adopting a School Risk Management Plan, providing schematic diagrams and keys to local law enforcement, conducting school safety exercises, and providing certain information to the Department of Public Safety, Division of Emergency Management (DPS).  Requires the Authority to post aggregate test performance on its website. Prevents nonpublic schools from discriminating on the basis of disability as defined in the Americans with Disabilities Act. Makes conforming changes.

Amends GS 115C-562.7 (Authority’s reporting requirements) to include its data on nonpublic school compliance with the academic assessments described above in its annual report to the specified NCGA committee. Requires the Authority along with the Department of Public Instruction, to publish certain information for nonpublic schools accepting more than 25 students in any grade whose tuition and fees are paid, in whole or in part, with a Grant.

Amends GS 115C-526.8, as amended, to remove language increasing appropriations to the Opportunity Scholarship Grant Fund Reserve. Reduces annual appropriations to the Grant Reserve in range starting with a reduction from $415,540,000 to $174,236,499 in FY 2025-2026  and ending with a reduction from $520,540,000 to $24,022,254 in FY 2035-2036. Eliminates funding thereafter (currently provides for $520,540,000 in each fiscal year starting in FY 2032-33). Eliminates reporting set forth in Section 8.6i(i) SL 2023-134 and requirement that Authority designate certain national standardized assessments.

Reduces the $354,540,000 appropriated to the Grant Reserve to $180,368,271 for FY 2024-25, effective July 1, 2023.

Part II

Adds new GS 115C-593.5, pertaining to academic assessments in nonpublic schools receiving Grants. Sets forth testing standards in line with the testing provisions set forth above. Requires the tests to be administered to in grades three and higher whose tuition and fees are paid in whole or in part with scholarship funds. Requires the Authority to provide an eligible student’s parent or guardian with an annual written student progress on the tests. Amends the legislative reporting requirements for in GS 115C-598 so that the Authority has to report on a nonpublic schools’ requirements with the academic assessments set forth in GS 115C-593.5.

Effective July 1, 2024, and applies beginning with the 2024-25 school year.

Intro. by Prather, Reives, Ball, Staton-Williams.

GS 115C

Education, Elementary and Secondary Education, Government, Budget/Appropriations

H 1003 (2023-2024) JT CAUCUS FOR IDD/OMNIBUS. Filed May 2 2024, AN ACT TO IMPLEMENT VARIOUS CHANGES RECOMMENDED BY THE LEGISLATIVE JOINT CAUCUS FOR INTELLECTUAL AND DEVELOPMENTAL DISABILITIES TO POSITIVELY IMPACT THE LIVES OF NORTH CAROLINA CITIZENS WITH INTELLECTUAL OR OTHER DEVELOPMENTAL DISABILITIES.

Part I

Declares the General Assembly’s intent to increase the hourly wage of direct care workers in the State to a minimum of $18 per hour. Requires the Department of Health and Human Services (DHHS), Division of Health Benefits (DHB) to provide a Medicaid rate increase to all of the following:

Home and community-based providers enrolled in the Medicaid program.

Intermediate care facilities for individuals with intellectual disabilities (ICF/IIDs), including ICF/IID-level group homes.

Providers who provide services to Medicaid beneficiaries receiving services through the North Carolina Innovations waiver program, the Community Alternatives Program for Children, or the Community Alternatives Program for Disabled Adults, and who are either (i) enrolled in the Medicaid program or (ii) approved financial managers or financial support agencies billing for personal care service or waiver service hours provided by direct care workers that are hired by employers of record or managing employers under consumer-directed or self-directed options in accordance with any of the listed Medicaid Clinical Coverage Policies in the act.

Requires DHB to determine the definition of direct care worker to be applied, the amount of rate increases, how a provider or facility will use the increased rate and demonstrate compliance, including required documentation. Provides that any rate increase provided will be effective on the date approved by the Centers for Medicare and Medicaid Services (CMMS). Upon implementation of an applicable rate increase required by this section, DHB must adjust the per member per month (PMPM) capitation amount paid to LME/MCOs accordingly. All LME/MCOs will be required to implement the increase, and it shall also apply to BH IDD tailored plans.

Appropriates $180 million (the State’s match for the $338 million in recurring federal funds) in recurring funds for 2024-25 from the General Fund to DHB to implement the above wage increase. Appropriates the federal funds to DHB for the same purpose. Effective July 1, 2024.

Part II

Effective July 1, 2024, requires DHB to amend the NC innovations waiver to increase the number of slots under the waiver by a minimum of 1,000, made available upon approval by CMMS. Appropriates $35 million (the State’s match for the $66 million in recurring federal funds) in recurring funds for 2024-25 from the General Fund to DHB to implement the above slots increase. Appropriates the federal funds to DHB for the same purpose. Effective July 1, 2024.

Requires DHB to convene a workgroup of relevant stakeholder to develop a plan to satisfy the registry of unmet needs for the waiver within the next ten years. Requires DHG to submit a report containing the ten-year plan to the specified NCGA Committee by February 1, 2025.

Part III

Amends GS 115C-391.1 to ban school personnel from physically restraining a student in a prone position. Requires a public school unit to request confirmation that parents have received the school’s policy on seclusion and restraint. Amends GS 115C-391.1(j)’s notice, consent, reporting and documentation provisions as follows. Requires school personnel to promptly notify the principal or designee of any use of mechanical restraint (currently, just prohibited uses of mechanical restraint), any use of physical restraint (currently, any use of physical restraint resulting in observable physical injury to a student), any use of seclusion (currently, any prohibited use of seclusion or seclusion that exceeds 10 minutes or the amount of time specified on their behavior intervention plan), and adds notification if the seclusion or restraint was used in a prohibited manner, caused observable physical injury to a student, or exceeded 10 minutes or the amount of time specified on a student's behavior intervention plan. Changes the time limit for promptly notify to by the end of the school day when the incident occurred (currently, end of the workday when the incident occurred but in no event later than the end of the following workday). Requires teachers to take at least one credit on the use of seclusion and restraint, including State policies, safe techniques, and trauma-informed practices as part of the licensure renewal. Applies beginning with the 2024-2025 school year.

Part IV

Requires DHHS’s Division of Mental Health, Developmental Disabilities and Substance Use Services (DHM) to convene a workgroup of relevant stakeholders to develop a five-year plan for monthly housing rental subsidies to be provided to individuals with intellectual or other developmental disabilities for use in integrated settings. Specifies that the plan must create 200 new monthly housing rental subsidies to be provided to individuals with intellectual or other developmental disabilities each year over the course of five years, resulting in the creation of a total of 1,000 monthly housing rental subsidies by the end of the five-year period. Directs that by no later than October 1, 2024, DHM must submit a report containing the five-year plan to the specified NCGA committees.

Requires DHB to study the feasibility of adding coverage of a new Medicaid service, entitled "Community Activities and Employment Transitions" (CAET), that provides individualized services and supports for individuals age 16 or older with intellectual or other developmental disabilities and that meets the three specified criteria established in the subsection. Directs DHB to consider the feasibility of adding the coverage in any of the following ways: (i) by adding an "in-lieu-of" service offered through the 1115 waiver for Medicaid transformation, (ii) by adding or amending a 1915(i) home and community-based State Plan amendment to include the service, or (iii) by adding the service to any existing Medicaid waiver in this State. Requires DHB to collaborate with listed stakeholders. Requires the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services (Commission) to also collaborate with those stakeholders to review any relevant rules. Allows the Commission to amend any relevant rules and, if necessary, to adopt additional rules to account for the numerous community-based activities and employment services that may be provided to Medicaid beneficiaries as part of a new CAET service. Allows DHB to submit any State Plan waivers or amendments or request any other approval from CMMS necessary to implement any new CAET service. Specifies that Coverage of the new service cannot begin until on or after January 1, 2025. Requires DHB to submit a report the CAET service to the specified NCGA committee by no later than April 1, 2025. Effective July 1, 2024, appropriates $2 million from the General Fund to DHB in nonrecurring funds for the 2024-2025 fiscal year to be used to support the feasibility study and for drafting requests for the authorities or supports needed to implement any proposed new CAET service.

Part V

Requires the Department of Transportation (DOT) to create an office within DOT to be known as the Office of Accessible Transportation and Mobility (Office). Specifies the Office’s purpose, and requires all appropriate State and local agencies to coordinate with the Office. Requires the Office to consult with stakeholders. Requires DOT to submit a report on the Office’s mission and scope of responsibilities and include a five-year plan to guide the Office’s work to the specified NCGA committees by no later than March 31, 2025.

Intro. by Hawkins, Crawford, White, Bradford.

APPROP, STUDY, GS 115C

Education, Elementary and Secondary Education, Government, Budget/Appropriations, State Agencies, Department of Health and Human Services, Department of Transportation, Health and Human Services, Health, Health Care Facilities and Providers, Health Insurance, Public Health, Mental Health, Social Services, Adult Services, Public Assistance, Transportation

H 1006 (2023-2024) REGIONAL PUBLIC TRANS. AUTHORITY SERVICE AREA. Filed May 2 2024, AN ACT TO ALLOW A REGIONAL PUBLIC TRANSPORTATION AUTHORITY TO OPERATE A BUSPOOL MORE THAN TEN MILES BEYOND ITS TERRITORIAL JURISDICTION.

Amends the definition of public transportation in GS 160A-601 (definitions pertaining to Regional Public Transportation Authorities [Authority]) to include buspools as one of the listed means of conveyance and changes the geographic boundaries of where the means of conveyance operate to the service area of the Authority (currently territorial jurisdiction of the Authority. Makes technical changes. Amends GS 160A-610 (powers of the Authority) to exempt buspools providing public transportation from the service limit of no greater than 10 miles outside of the territorial jurisdiction of the Authority (currently just vanpools and carpools are exempt). Allows the Authority to develop and make data plans, information, surveys and studies of public transportation facilities within its service area (currently, territorial jurisdiction). Makes technical and conforming changes.

Appropriates $100,000 from the General Fund to the Department of Transportation (DOT) in nonrecurring funds for the 2024-2025 fiscal year as a directed grant to the Central Pines Regional Council for the purpose of conducting a study, in consultation with the listed stakeholders on regional workforce transportation needs. Requires DOT to submit a report on the study, including legislative recommendations to the specified NCGA committees by no later than December 1, 2025.

Effective July 1, 2024.

Intro. by Reives, White, Penny, Price.

APPROP, STUDY, GS 160A

Government, Budget/Appropriations, State Agencies, Department of Transportation, Local Government, Transportation

H 1008 (2023-2024) RURAL AND DOWNTOWN COMMUNITY ECO. DEV. GRANTS. Filed May 2 2024, AN ACT TO CREATE THE RURAL COMMUNITY DEVELOPMENT GRANT PROGRAM AND THE DOWNTOWN REVITALIZATION GRANT PROGRAM AND TO APPROPRIATE MONEY FOR PURPOSES CONSISTENT WITH THOSE PROGRAMS.

Appropriates $40 million for 2024-25 from the General Fund to the Department of Commerce (DOC) to be allocated to the Rural Economic Development Division (REDD) and used to create the Rural Community Development Grant Program (Program). Requires the funds to be encumbered by December 31, 2026. Allows up to 3% of the funds to be used for administration of the Program. Requires the Program to provide grants to local governments to attract business investment and to promote population and revenue growth in those communities for the purpose of: (1) reversing the trend of rural depopulation and (2) transitioning those communities to “commuter towns” or “bedroom communities” that promote and sustain the growth of larger adjacent communities. Requires REDD to establish guidelines for administering the Program, including specified requirements related to the use of funds, a required local government match, and a cap on individual award amounts at $2 million. Requires a local government to demonstrate that a lack of community amenities has previously prevented it from attracting business investment and promoting the population and revenue growth necessary to stimulate job and revenue growth within the community.

Appropriates $40 million for 2024-25 from the General Fund to DOC to be used to create the Downtown Revitalization Grant Program (Revitalization Program). Requires the funds to be encumbered by December 31, 2026. Allows up to 3% of the funds to be used for administration of the Revitalization Program. Requires the Revitalization Program to provide grants to local government and municipal service districts. Requires DOC to establish guidelines for administering the Revitalization Program, including capping individual grant amounts at $2 million. Requires grants to be awarded for the purpose of transitioning and repurposing existing vacant commercial space in the downtown area of recipients into uses the Department determines are likely to enhance the overall appeal, functionality, or livability of a downtown area by attracting the people, businesses, or investment necessary to revitalize the downtown area and create a vibrant, desirable place to live, work, and visit.

Requires DOC, by September 15 of each year, to report on the activities conducted with the funds to the specified NCGA committee and division, including the specified information.

Effective July 1, 2024.

Intro. by Reives, G. Brown, Carney, A. Jones.

Development, Land Use and Housing, Community and Economic Development, Government, Budget/Appropriations, State Agencies, Department of Commerce, Local Government

H 1009 (2023-2024) LOC. GOV. ECO. DEV. CAPACITY DISTRESS FUNDING. Filed May 2 2024, AN ACT TO CREATE A GRANT PROGRAM TO PROVIDE QUALIFYING LOCAL GOVERNMENTS WITH GRANT FUNDING FOR SPECIFIC PURPOSES AND TO APPROPRIATE MONEY FOR PURPOSES CONSISTENT WITH THE GRANT PROGRAM.

Sets out NCGA findings concerning economic development. Finds that it is State policy to provide resources to stimulate economic development throughout the State and that it is of particular importance to stimulate economic development in the rural and most economically distressed parts of the State.

Appropriates $21 million for 2024-25 from the General Fund to the Department of Commerce (DOC) to be allocated in the specified amounts to the North Carolina Association of Regional Councils of Government, North Carolina League of Municipalities, and the North Carolina Association of County Commissioners (collectively, eligible entity). Specifies that funds do not revert and allows up to 1% to be used for administrative purposes.

Requires each eligible entity to enter into any reciprocal agreement DOC deems necessary to effectuate the purposes of this act. Sets out provisions that must be included in these agreements.

Requires that the fund be used collaboratively by the eligible entities to provide grants to qualifying local governments, defined as a county, or city located within a county, that is ranked within the 20 most distressed counties under GS 143B-437.08 (development tier designations). Requires DOC and the eligible entities to establish guidelines for administering the funds, including specified provisions, including providing scholarships and hosting MPA fellowships in partnership with the UNC School of Government. Requires that grants only be issued to qualifying local governments who are best positioned to use the funds to (1) propose and manage economic development projects in that government’s jurisdiction; (2) apply for, and manage, grants; or (3) further one of the other specified purposes.

Requires DOC and eligible entities to report to the specified NCGA committee and division by March 1, 2025, and specifies information to be included in the report.

Effective on the later of: (1) July 1, 2024, or (2) the execution of a reciprocal agreement required under the act. Expires June 30, 2025, if the execution of the reciprocal agreements does not occur.

Intro. by Reives, Bell, Lowery, Price.

Development, Land Use and Housing, Community and Economic Development, Government, Budget/Appropriations, State Agencies, UNC System, Department of Commerce, Local Government

H 1018 (2023-2024) ECON. DEV. MODIFICATIONS. Filed May 2 2024, AN ACT TO RENAME THE ONE NORTH CAROLINA SMALL BUSINESS ACCOUNT THE SMALL BUSINESS RESEARCH AND TECHNOLOGY ACCOUNT, TO MAKE VARIOUS ECONOMIC DEVELOPMENT MODIFICATIONS, AND TO APPROPRIATE MONEY FOR VARIOUS ECONOMIC DEVELOPMENT PURPOSES.

Amends GS 143B-437.71 by renaming the One North Carolina Small Business Account as the Small Business Research and Technology Account and allows money in the One North Carolina Fund (Fund) to be allocated to the Small Business Research and Technology Account instead of to the One North Carolina Small Business Account. Expands upon the allowable uses of money allocated from the Fund to local government to include competitive grants for eligible small businesses that locate a new or expand an existing facility in the State to offset costs associated with the facility. Requires prioritizing grants to recipients that will have the greatest net benefit at the regional and State levels. Caps grants to a single recipient at $500,000 in a calendar year, to $2.5 million total, and to a term of distribution over five years. Defines an eligible business as one that has: (1) 250 or fewer employees or has less than $5 million in annual gross revenue; (2) will invest at least $10 million but no more than $30 million in private funds, and hire no more than 250 new employees in this state; and (3) pays employees an average weekly wage at least equal to 110% of the average wage for all insured private employees in the county. Makes conforming changes to GS 143B-437.80 and GS 143B-437.83.

The following provisions are effective July 1, 2024.

Appropriates $25 million for 2024-25 from the General Fund to the Main Street Solutions Fund for the Department of Commerce (DOC) to use for purposes consistent with that Fund.

Appropriates $15 million for 2024-25 from the General Fund to the Rural Infrastructure Authority for the specified purposes.

Appropriates $30 million for 2024-25 from the General Fund to the Department of Transportation to be allocated to the North Carolina Ports Authority for the construction of a roll-on-roll-off facility for the Port of Morehead City.

Appropriates $15 million for 2024-25 from the General Fund to DOC for purposes consistent with the Rural Downtown Transformation Grant Program; allows up to 5% of the funds to be used to administer the program.

Intro. by Reives.

APPROP, GS 143B

Business and Commerce, Development, Land Use and Housing, Community and Economic Development, Government, Budget/Appropriations, State Agencies, Department of Commerce, Department of Transportation, Transportation

H 1020 (2023-2024) RETIREMENT ADMIN. CHANGES ACT OF 2024. Filed May 2 2024, AN ACT MAKING ADMINISTRATIVE AND CONFORMING CHANGES TO THE LAWS GOVERNING THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, AND RELATED STATUTES.

Part I

Amends GS 135-3(a)(8)(membership in the Teachers and State Employees’ Retirement System [TSERS]) to provide that if a beneficiary who retired on an early or service retirement allowance under TSERS is reemployed by an employer with an option to elect to participate in either the Optional Retirement Program or a similar benefit to the Optional Retirement Program and that beneficiary does elect to participate in either program, then that beneficiary's retirement allowance will be suspended as of the first day of the month following the month in which the beneficiary was reemployed. Directs that the beneficiary's  retirement allowance will be reinstated as of the first day of the month following the month in which the beneficiary ceases contributing employment in the Optional Retirement Program or a similar benefit to the Optional Retirement Program.

Part II

Amends GS 135-5 (benefits-TSERS), GS 128-27(benefits-Local Government Employees’ Retirement System [LGERS]), and GS 135-58 (benefits-Consolidated Judicial Retirement Act [JRA]]) to prevent a member in receipt of severance pay from an employer from receiving a retirement allowance while in receipt of the severance pay. Specifies that if the member is entitled to receive a lump sum as severance based on a certain period of time, then the member is not eligible to receive a retirement allowance for any month, beginning immediately after their separation from service to that employers, that includes the time period to determine the lump sum payment. Effective January 1, 2025, and applies to members in receipt of severance pay that begins on or after that date and to members entitled to receive a lump sum payment based on a certain period of time that begins on or after that date.

Part III

Amends GS 135-8(f)(collection of receipts as part of method of financing-TSERS) and GS 128-30(g) (same-LGERS) to specify that, in conjunction with the employer and employee contributions required under the statute, the information that the Board of Trustees directs employers to submit monthly that’s necessary for proper administration of each retirement system, actual valuation, and reporting are considered part of the required employee and employer contributions. Specifies that the employer and employee contributions are not considered received until the required information is submitted to the appropriate retirement system. Makes technical and conforming changes.  Effective January 1, 2025, and applies to employee and employer contributions, and the information to be submitted in conjunction with those contributions, required on or after that date.

Part IV

Amends GS 120-4.26 (benefit payments under the Legislative Retirement System [LRS]), as follows. Specifies that If a member dies after the effective date of retirement for which the member has been approved, then one of the following apply: (1) If the Board of Trustees has received an election of benefits under this section that is properly filed and acknowledged by the member and the member dies before the date when the first payment on account of any benefit normally becomes due and the first benefit payment has occurred, then the retirement benefit will be payable as provided for by the member's election of benefits; (2) If the member dies prior to the receipt by the Board of Trustees of an election of benefits under this section that is properly filed and acknowledged by the member, then one of the following will apply: (i) If the member has no designated beneficiary for a return of accumulated contributions, then the administrator or executor of the member's estate will elect an option under this section and name the beneficiary or beneficiaries; (ii) If the member has only one designated beneficiary for a return of accumulated contributions, then that beneficiary may elect to receive the benefit; or (iii) If the member has more than one designated beneficiary for a return  of accumulated contributions, then the administrator or executor of the  member's estate will elect an option under the section and name the  beneficiary or beneficiaries. Makes conforming, clarifying, and technical changes. Makes language gender neutral. Applies to member deaths occurring after the act becomes law.

Part V

Amends GS 135-18.8 (deductions for payments allowed-TSERS); GS 128-38.3 (same-LGERS); GS 120-4.32 (same-LRS); and GS 127A-40(h1)(pensions for members of the NC National Guard); to allow period deductions from a beneficiary’s retirement benefits to the specifies employees’ or retirees’ association so long the association received a deduction as of December 31, 2024, in addition to other requirements. Makes technical and organizational changes. Effective January 1, 2025.

Part VI

Amends GS 135-75(h)(concerning Legislative Enactment Implementation Arrangement [LEIA]-TSERS) and GS 128-29(g) (same-LGERS) as follows. Extends the date by which each system’s board of trustees must stop directing payments to LEIA from November 1, 2026, to January 1, 2035. Expands permitted purposes of LEIA funds to include administrative or information technology purposes. Requires the appropriate board to identify the specific administrative or information technology purpose for which LEIA funds will be used and that the use of such funds is necessary to prevent an interruption to the normal operation of the retirement system. Amends the State Treasurer’s reporting requirements to provide additional information related to the LEIA, including the amount of funds expended from the LEIA and the administrative and information technology purposes for which the funds were expended along with the required determination of necessity.  Makes conforming, organizational, and technical changes.

Part VII

Extends eligibility of the Supplemental Retirement Income Plan (SRP) under GS 135-92 to include (1) part-time and full-time employees of an employer that has one or more employees eligible for the SRP under GS 135-92 and (2) part-time and full-time employees of a State agency or institution, or any of its political subdivisions, that with the consent of the Board of Trustees, has elected to allow its employees to enroll in the SRP. Amends GS 135-93 (contributions) to allow employers, other than employers who are a State agency or institution, or any of its political subdivisions, that with the consent of the Board of Trustees, has elected to allow its employees to enroll in the SRP, to make contributions to the SRP. Effective January 1, 2025.

Part VIII

Amends GS 116B-59 (notice by holders to apparent owners under the NC Unclaimed Property Act [Act]) as follows. Amends required notice sent to apparent owners to include information about the date the holder intends to submit the required report and changes the deadline for submission of a proof of claim by the apparent owner to within 30 days of that date (currently, must submit statement by the following October 1, or if the holder is an insurance company, by the following April 1). Allows the Treasurer to waive the section, in whole or in part, upon its written consent, for good cause shown and upon conditions and terms prescribed by the Treasurer. Effective 30 days after the act becomes effective and applies to notices sent on or after that date.

Intro. by Carson Smith.

GS 116B, GS 120, GS 127A, GS 128, GS 135

Courts/Judiciary, Court System, Education, Employment and Retirement, Government, General Assembly, State Agencies, Department of State Treasurer, State Government, State Personnel, Local Government

H 1027 (2023-2024) REVISE SUSPENSION &AMP PARENTAL NOTICE POLICIES. Filed May 2 2024, AN ACT TO REVISE SUSPENSION POLICIES IN PUBLIC SCHOOL UNITS BY DEFINING LENGTHS OF SUSPENSION, LIMITING THE USE OF SUSPENSION, CREATING A RIGHT OF APPEAL FOR SHORT TERM SUSPENSION, DEFINING WHAT CONSTITUTES REASONABLE PARENTAL NOTIFICATION OF DISCIPLINARY ACTIONS, AND REQUIRING CHILD CARE PROVIDERS TO REPORT DISCIPLINARY ACTIONS IN EARLY CHILD CARE SETTINGS.

Amends the definitions provisions of GS 115C-390.1 (state policy and definitions pertaining to student discipline). Defines intermediate-term suspension as the exclusion for more than 20, but no more than 42, cumulative school days of a student from school attendance for disciplinary purposes from the school to which the student was assigned at the time of the disciplinary action. Defines in-school suspension and reasonable attempt. Makes conforming changes to short-term suspension and long-term suspension to account for intermediate-term suspension. Specifies that notice to parents must be written in plain language and easy to understand. Specifies that if a school is aware that a parent has a primary language other than English, then school must provide the notice in both English and the parent’s primary language.

Amends GS 115C-390.2 (discipline policies) as follows. Encourages governing boards to implement truancy and tardiness policies that focus on intervention strategies aimed at addressing the root cause of absenteeism, promoting attendance through positive reinforcement and engagement. Prevents governing body policies from suspending students solely for truancy and tardiness (currently, only prevents governing boards from imposing long-term suspensions or expulsions for truancy or tardiness). Further prevents governing bodies from: (1) restricting physical activity as a form of punishment; (2) detaining students for disciplinary purposes for more than one hour after the official end of the school day; and (3) authorizing suspension for students in first through third grade, except if the student is possessing or using illegal drugs or if they have committed a serious violation of the Code of Student Conduct (Code) that threatened the safety of themselves or others. Requires governing bodies to adopt a policy for in-school suspension. Provides for reasonable attempts at notice to parents within one hour of the end of the school day that the suspension was imposed and limits on the number of days a student may be subject to in-school suspension. Removes reference to safe schools plans. Limits short-term suspensions to more than 10 consecutive school days per suspension period and no more than 20 cumulative school days per year under GS 115C-390.5 (short-term suspensions). Removes reference to safe schools plans. Makes conforming changes.

Amends GS 115C-390.6 (short-term suspension procedures) as follows. Now allows for a student to appeal a short-term suspension if it is for three days or more and if the student will have a cumulative 15 days or more of short-term suspension at the end of the period being appealed to the superintendent. Makes technical and conforming changes. Requires the principal to make a reasonable attempt at notice within one hour of the end of the school day that the suspension was imposed (currently required to give notice at the end of the workday when reasonably possible but not later than two days after suspension is imposed).

Adds new GS 115C-390.6A (intermediate-term suspensions), allowing a principle to recommend intermediate-term suspensions to the superintendent for a student who willfully engages in conduct that violates a provision of the Code that authorizes such suspensions. Provides for an opportunity for hearing before the superintendent. Permits the superintendent to, either upon a hearing (if requested) or review of the circumstances of the recommended suspension, to (1) impose suspension if consistent with Board policy; (2) impose another appropriate penalty; or (3) decline to impose any penalty. Guarantees students who are subject to intermediate-term suspension the opportunity to take instructional materials home for the length of the suspension, the right to receive all missed assignments upon request, and the opportunity to take exams missed during the suspension period.

Provides for intermediate-term suspension procedures in new GS 115C-390.6B, including written notice with eight required components, a requirement that the student decline the opportunity for hearing in writing, process in case of requests for postponement of the hearing, the conduct of the hearing, an appeal to the local board of education, judicial review, and confidentiality provisions pertaining to witnesses that could create a safety risk.

Amends GS 115C-390.7 (long-term suspensions) to require a hearing before such a suspension is imposed. (Currently, a student may opt out of a hearing.) Makes conforming changes.

Amends GS 115C-390.8, long-term suspension procedures as follows. Requires the principal to make a reasonable attempt to give notice to the student’s parents within one hour of the end of the workday on the day the suspension is recommended (currently, must do so when reasonably possible or as soon thereafter as practicable). Requires the student and parent to have been given reasonable notice of the time and place of the suspension hearing. Makes conforming changes.

Makes technical change to GS 115C-390.11(expulsion).

Amends GS 115C-391.1 (concerning permissible use of seclusion and restraint) to require the principal or designee to make a reasonable attempt to give notice to the student’s parents within one hour of the end of the workday on the day the incident occurred (currently, only has to notify the parent or guardian promptly and provide certain information). Makes organizational and conforming changes.

Amends GS 115C-391.2 (student searches) to require the school to make a reasonable attempt to notify a student’s parent before any search or interrogation occurs or if unsuccessful, to give notice to the student’s parents within one hour of the end of the workday on the day the search occurred.

Adds new GS 143B-168.10L (disciplinary actions in early child care settings) requiring all early child care providers, including public school units and private schools offering prekindergarten services to annually submit a report to the Department of Public Instruction (DPI) with detailed data on suspensions and expulsions with four required elements. Requires DPI to analyze data for patterns and to inform strategies for minimizing suspensions and expulsions, while emphasizing non-exclusionary disciplinary practices. Requires DPI to issue any specific reporting guidelines and data formats.

Appropriates $2 million from the General Fund to DPI in nonrecurring funds for the 2025-2025 fiscal year to assist DPI in developing and distributing guidance to public school units on how to implement the act.

Effective July 1, 2024, and applies beginning with the 2024-2025 school year.

Intro. by Morey, Quick, Gill, Cervania.

APPROP, GS 115C

Education, Preschool, Elementary and Secondary Education, Government, Budget/Appropriations, State Agencies, Department of Public Instruction

H 1028 (2023-2024) WORKFORCE HOUSING LOANS-PRECONSTRUCTION COSTS. Filed May 2 2024, AN ACT TO CREATE A REVOLVING LOAN FUND IN THE NORTH CAROLINA HOUSING FINANCE AGENCY TO PROVIDE SHORT-TERM FINANCING TO SUPPORT PRECONSTRUCTION COSTS OF WORKFORCE HOUSING PROJECTS IN THE STATE.

Enacts new GS 122A-5.16, providing as follows. Requires the North Carolina Housing Finance Agency to establish and administer the Workforce Housing Preconstruction Revolving Loan Program (Program) to make revolving loans for preconstruction costs for workforce housing projects before developers obtain permanent, private financing. Defines preconstruction costs as land surveys, environmental due diligence and soil testing, utility connections, planning and permit fees, and site clearing and grading. Defines workforce housing as housing that is affordable to households earning between 60% and 120% of the county area median income or the State area median income, whichever is higher. Requires the establishment of guidelines for project equity requirements for applicants between 20% and 35% based on market conditions in the county where the project is located. Requires that funds appropriated to the North Carolina Housing Trust Fund for the Program be used in this statute. Caps loan amounts at $1 million. Requires that 80% of the loans be reserved for projects in counties designated as development tier one and tier two areas, and 20% reserved for projects in counties designated as a development tier three area. Requires an annual report to the specified NCGA committee and division on the number of loans made, and the loan amount and recipients.

Appropriates $40 million for 2024-25 from the General Fund to the North Carolina Housing Trust Fund for this act.

Effective July 1, 2024.

Intro. by Reives, Autry.

APPROP, GS 122A

Development, Land Use and Housing, Building and Construction, Property and Housing, Government, Budget/Appropriations

H 1031 (2023-2024) REDUCE BARRIERS TO COLLEGE COMPLETION. Filed May 2 2024, AN ACT TO PROVIDE IN-STATE TUITION FOR CERTAIN CHILDREN OF LAWFULLY ADMITTED OR LAWFULLY PRESENT NONCITIZENS.

Includes whereas clauses.

Amends GS 116-143.1 to allow the following people to be charged in-state tuition at the constituent institutions of the University of North Carolina and the community colleges under the jurisdiction of the State Board of Community Colleges. Applies to a person lawfully admitted to this State or lawfully present in the State who: (1) has a parent or legal guardian who was lawfully admitted to the US or is lawfully present in the US, is not a US citizen, and holds a valid H-1B visa or L-1 visa and (2) meets all of the following criteria: (a) either holds a valid H4 visa, or is continuously enrolled at an institution of higher education, held a valid H4 visa at some point during the period of continuous enrollment, and was as classified as a resident for tuition purposes at some point during the period of continuous enrollment and (b) establishes domicile in this State under this statute.

Appropriates specified amounts for 2024-25 from the General Fund to the UNC Board of Governors and Community College System Office to offset the reduction in tuition due to additional students receiving in-state tuition. Requires the Community Colleges System Office, beginning in the 2024-25 fiscal year, to incorporate any losses in estimated receipts resulting from the increased eligibility for in-State tuition into its enrollment funding model without reducing its total requirements. Effective July 1, 2024.

Applies beginning with the 2024-25 academic year.

Intro. by Cervania, Prather.

APPROP, GS 116

Education, Higher Education, Government, Budget/Appropriations, State Agencies, Community Colleges System Office, UNC System, Immigration

H 1032 (2023-2024) ACADEMIC TRANSPARENCY. Filed May 2 2024, AN ACT TO PROVIDE FOR INCREASED PUBLIC ACCESS TO LESSON PLANS AND OTHER INSTRUCTIONAL MATERIALS IN PUBLIC SCHOOLS.

Enacts new Part 7, Academic Transparency, in GS Chapter 115, consisting of new GS 115C-76.75. Requires a public school’s governing board to make sure the following is prominently displayed on the school website, organized at least by subject area and grade level: (1) all lesson plans, as defined, used must be posted online no later than 10 days after the lesson was given; (2) for all public school units, any procedures for the documentation, review, or approval of the lesson plans, including course materials identified in those plans, by the principal, curriculum administrators, or other teachers; (3) for all public school units, the procedure established by the governing board for requesting an in-person review of course material not publicly available on the internet; and (4) for all public school units, a list of teacher and staff training materials and activities used at each school during the current school year. Requires that access from the website of the public school unit to the required information required be available at all times. Requires maintaining public access to the information for two calendar years from the date the material is posted. Requires the Department of Public Instruction (DPI) to make templates available to schools. Excludes from these requirements a governing body that is responsible for the operation of schools with fewer than 30 students cumulatively. Allows a teacher or staff member to request that their personal title and last initial be used instead of their full name when posting publicly available material. Defines lesson plan as an outline of: (1) the instruction provided by a teacher for a course that includes a list of (i) all course materials assigned, distributed, or otherwise presented in the course and (ii) when students must select course materials from a defined list, all course materials on that list and (2) each grade- or school-wide presentation, assembly, lecture, or other activity or event facilitated by the school during instructional hours outside of an individual teacher's classroom, excluding student presentations (including a list of each presenter by name and organization and any course material used or presented). Also defines the terms action-oriented civics learning assignments or projects (as used in the definition of supplemental materials), course materials, instructional materials, and supplemental materials.

Enacts new GS 116-69.3 requiring the Board of Trustees of the University of North Carolina School of the Arts to ensure that information about course materials is prominently displayed on the school's website for all elementary, middle, and high school programs.

Amends GS 116-235 by requiring the information about course materials be prominently displayed on the website of a laboratory school.

Appropriates $10,000 in recurring funds for 2024-25 from the General Fund to the Department of Public Instruction for oversight and enforcement of this act.

Applies beginning with the 2024-25 school year.

Intro. by Johnson, Willis, Blackwell, Chesser.

APPROP, GS 115C, GS 116

Education, Elementary and Secondary Education, Government, Budget/Appropriations, State Agencies, UNC System, Department of Public Instruction

H 1033 (2023-2024) TAXPAYER ACCOUNTABILITY/CRISIS PREGNANCY CTRS. Filed May 2 2024, AN ACT ENHANCING TAXPAYER ACCOUNTABILITY FOR CRISIS PREGNANCY CENTERS BY REQUIRING THE ESTABLISHMENT OF A COMPETITIVE GRANT PROCESS TO AWARD CERTAIN GRANT FUNDS TO CRISIS PREGNANCY CENTERS; AND ESTABLISHING PERFORMANCE STANDARDS AND ADDITIONAL REPORTING REQUIREMENTS FOR CRISIS PREGNANCY CENTERS.

Amends Section 9H.11 of SL 2023-134, allocating funds to the Carolina Pregnancy Care Fellowship (CPCF) for pregnancy care centers (PCC’s), as follows. Requires that the CPCF award funds by a competitive grant process (currently just an application process) and sets forth four required elements as part of required plan to administer the CPCF’s competitive grant process. Provides for announcement of award recipients starting on July 1, 2025, and continuing each July 1 of each year. Requires the CPCF to submit a report to the Department of Health and Human Services (DHHS) and the specified NCGA Committee on the grant awards that contains five listed components. Increases the percentage of CPCF funds that may be used for administrative costs from 10% to 15% for the 2024-2025 fiscal year and subsequent fiscal years. Requires annual reports to DHHS and the specified NCGA committee (currently biennial reports submitted by July 1 of each odd-numbered year) describing monitoring activities to ensure compliance, detailing technical compliance provided, and a breakdown of the funds expended by CPCF for administrative purposes (currently, only requires information pertaining to identity of CPCF grantees, and number of persons served). Provides for annual reports to DHHS and the specified NCGA Committees by award recipients starting on July 1, 2025, and continuing each July 1 of each year on its use of grant funds, with seven required components.

Adds new GS 131E-269.5, concerning performance standards and recovery of State funds for crisis pregnancy centers, as follows. Defines crisis pregnancy center. Requires DHHS to adopt rules establishing performance standards for crisis pregnancy centers, including monitoring mechanisms and reporting requirements. Requires crisis pregnancy centers to annually report six required pieces of information to DHHS pertaining to the proceeding five-year period. Requires DHHS to take administrative action to recover any amount of grant funds or State appropriations disbursed to a crisis pregnancy center for any fiscal year in which the DHHS determines that the crisis pregnancy center is out of compliance with the performance standards adopted by DHHS. Provides a crisis pregnancy a right of appeal under the hearings provision of the APA.

Effective July 1, 2024.

Intro. by Cervania, Crawford.

APPROP, GS 131E

Government, Budget/Appropriations, State Agencies, Department of Health and Human Services, Health and Human Services, Health, Health Care Facilities and Providers

H 1034 (2023-2024) NONJUDICIAL FORECLOSURE OF TIMESHARE LIENS. Filed May 2 2024, AN ACT TO ESTABLISH A NONJUDICIAL FORECLOSURE PROCESS FOR CERTAIN LIENS FILED IN CONNECTION WITH TIMESHARE OWNERSHIP IN THIS STATE.

Amends GS 93A-62 (delinquent assessments pertaining to timeshares), as follows.

Directs that any claim of lien securing a debt consisting solely of fines imposed by the timeshare owners' association, interest on unpaid fines, or attorneys' fees incurred by the timeshare owners' association solely associated with fines imposed by the timeshare owners' association or any claim of lien securing a debt consisting solely of service, collection, consulting, or administration fees may only be enforced by judicial foreclosure. Collectively, these claims will be referred to as “Judicial Liens.”

Creates the following process for nonjudicial foreclosure of certain timeshare liens (Nonjudicial Liens). Requires the managing entity of the holder of the Nonjudicial Lien to mail a statement of the assessment due by first class mail to the owner not fewer than fifteen days prior to filing the claim. Allows the managing entity or the holder of a Nonjudicial Lien to foreclose a claim of lien in like manner as a mortgage or deed of trust on real estate under power of sale under Article 2A of GS Chapter 45 if the assessment remains unpaid for 30 days or more. Provides for fourteen additional provisions and procedures that control to the extent they conflict with Article 2A of GS Chapter 45, including: incorporating certain terms from Article 2A of GS Chapter 45; giving the managing entity or holder of the Nonjudicial Lien power of sale to enforce its claim; notice to the owner after filing the claim of lien and prior to commencing a nonjudicial foreclosure; appointment of a trustee to conduct the nonjudicial foreclosure and sale; required content to an owner’s objection to a nonjudicial foreclosure; requirements for the clerk’s entry of an order of sale; process for if the owner satisfies the debt and pays all expenses prior to the expiration of the upset bid period, including dismissal of the foreclosure action and cancellation of the Nonjudicial Lien; process for bidding at the foreclosure sale; power of the trustee to execute a deed for the timeshare to the high bidder; payment of commission to the trustee; $1,200 cap on attorneys’ fees, excluding costs and expenses incurred, if the owner does not contest the Nonjudicial Lien; and presuming that owners have the rights and remedies available to mortgagors under GS 45-21.34.

Directs that a managing entity or holder of the Nonjudicial Lien can only proceed by judicial foreclosure if an owner objects to the use of a nonjudicial foreclosure proceeding.

Specifies that the attorneys’ fees provisions do not prohibit or prevent a managing entity or the holder of a Nonjudicial Lien from pursuing judicial foreclosure of a claim of lien, from taking other actions to recover the sums due the managing entity or the holder of the lien, or from accepting a deed in lieu of foreclosure. Directs that any judgment, decree, or order in any judicial foreclosure or civil action relating to the collection of assessments will include an award of costs and reasonable attorneys' fees for the prevailing party, which shall not be subject to the limitations set forth above. Specifies that all nonjudicial foreclosure proceedings commenced by a managing entity or the holder of the lien before October 1, 2024, and all sales and transfers of real property as part of those proceedings pursuant to the provisions of GS Chapter 93A, GS Chapter 47A, or provisions contained in a timeshare declaration, are declared to be valid unless an action to set aside the foreclosure is commenced on or before October 1, 2024, or within one year after the date of the foreclosure sale, whichever occurs last.

Provides for contents of claim of lien, service of lien, proof of service, and alternate methods of service. Providing for filing place. Exempts the Judicial Liens from the above process.

Exempts successors in interests to a timeshare from liability under a nonjudicial foreclosure. Makes conforming and technical changes.

Effective October 1, 2024, and applies to claims of lien filed on or after that date.

Effective July 1, 2024, appropriates $10,000 in nonrecurring funds for the 2024-25 fiscal year from the General Fund to the NC Real Estate Commission (Commission) to be used by the Commission to inform its licensees of the nonjudicial foreclosure process for timeshares established by the act.

Intro. by Cairns, Bradford, Tyson, Biggs.

APPROP, GS 93A

Courts/Judiciary, Civil, Civil Law, Development, Land Use and Housing, Property and Housing, Government, Budget/Appropriations

H 1043 (2023-2024) IGNITION INTERLOCK VIOLATION/EXTEND PERIOD. Filed May 2 2024, AN ACT TO PROVIDE THAT A PERSON SUBJECT TO AN IGNITION INTERLOCK SYSTEM REQUIREMENT SHALL HAVE THE PERSON'S PERIOD OF COMPLIANCE WITH THE REQUIREMENT EXTENDED IF THE PERSON COMMITS AN IGNITION INTERLOCK SYSTEM VIOLATION DURING THE NINETY-DAY PERIOD IMMEDIATELY PRECEDING THE DATE THE PERSON'S INITIAL PERIOD OF COMPLIANCE IS TO END.

Amends GS 20-17.8 (applicable to a person with a driver’s license) and GS 20-179.3 (applicable to a person with a limited driving privilege) by adding that a person who commits an ignition interlock system violation during the 90 days immediately preceding the date on which the person’s initial compliance with the ignition interlock is to end must have the period of compliance extended for an additional period of 90 days or until the person has been violation-free for such extended period.

Provides that prosecutions for offenses committed before the act’s effective date are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.

Appropriates $50,000 for 2024-25 from the General Fund to the Division of Motor Vehicles for costs incurred in implementing these provisions.

Effective July 1, 2024.

Intro. by Chesser, Miller, Pyrtle, Lowery.

APPROP, GS 20

Courts/Judiciary, Motor Vehicle, Government, Budget/Appropriations, State Agencies, Department of Transportation

H 1044 (2023-2024) COUNTY TIER DESIGNATION STUDY BILL. Filed May 2 2024, AN ACT TO DIRECT THE NORTH CAROLINA POLICY COLLABORATORY TO STUDY THE EFFECTS OF VARIOUS PROPOSED CHANGES TO THE COUNTY TIER DESIGNATION SYSTEM.

Requires the North Carolina Policy Collaboratory (Collaboratory) at UNC-Chapel Hill to study the potential effects of the changes in this act on the county tier designation system under GS 143B-437.08.

Requires a focus on proposed changes to the criteria used to rank counties, changes to the way in which tier designations are assigned, and changing the time frame in which counties are ranked. Requires evaluating the impact of the proposed changes on the county rankings, on programs that use the tier designations, and on the ease of doing business in the state. Sets out agencies that the Collaboratory must work with on the study. Requires evaluating if the changes align with the State's economic development goals; use current, reliable, timely and high-quality data; implement a method that is easy to understand; and accurately identify areas of distress.

Requires a preliminary report on the study by December 31, 2024, to the specified NCGA committee and division and a final report by December 1, 2025.

Intro. by Johnson, Reives.

STUDY

Development, Land Use and Housing, Community and Economic Development, Government, State Agencies, UNC System, Department of Commerce, Department of Health and Human Services, Department of Public Instruction, Local Government

H 1045 (2023-2024) ENHANCE TEACHER PIPELINE/INCREASE TF PROGRAM. Filed May 2 2024, AN ACT TO EXPAND AND ENHANCE THE NORTH CAROLINA TEACHING FELLOWS PROGRAM.

Includes whereas clauses.

Removes the terms qualifying licensure area and STEM from the definitions under GS 116-209.60, which defines terms for use in Part 3 of Article 23 of GS Chapter 116, which governs the North Carolina Teaching Fellows Program (Program). No longer limits the Program to providing loans to individuals interested in preparing to teach in the State's public schools in those previously specified qualifying licensure areas, instead opening it more broadly to those preparing to teach in the State's public schools. Makes changes throughout the Part by removing references to "STEM" and "qualifying licensure area." Amends the use of the money in the North Carolina Teaching Fellows Program Trust Fund by now requiring that up to $600,000 be used for extracurricular enhancement activities, including specified summer programs and alumni programs, and that up to $500,000 be used to implement the recruitment activities. Removes the cap on the number of higher education institutions participating in the Program. Requires an educator preparation program that enrolls loan recipients in a program of study leading to licensure in elementary education to provide training aligned with the Science of Reading. Requires the North Carolina Teaching Fellows Commission to contract with a third party to evaluate whether the programs are providing training aligned with the Science of Reading. Increases the amount of the loan from $5,000 per semester to $12,000 per year and expands the allowable uses of the loan money to include room and board. Adds each UNC constituent institution to those entities that must report to the specified NCGA committee.

Amends GS 116-209.63 by providing that a loan is to be forgiven if it is impossible for the recipient to work for up to four years (was, eight years), within 10 years after completing the program, at a North Carolina public school due to the recipient’s death or permanent disability.

Applies to applications for the award of funds beginning in the 2024-25 academic year.

Requires the State Education Assistance Authority to forgive any loan outstanding for any person under the Program and any accrued interest if the person meets the statutory requirements for forgiveness.

Effective July 1, 2024.

Intro. by Ball, Elmore, Prather, Pierce.

GS 116

Education, Elementary and Secondary Education, Higher Education, Government, State Agencies, UNC System

H 1047 (2023-2024) DRIVE RECOMMENDATIONS/TEACHER DIVERSITY. Filed May 2 2024, AN ACT TO IMPLEMENT VARIOUS INITIATIVES AND PROGRAM EXPANSIONS TO PROMOTE TEACHER DIVERSITY AND INCREASE TEACHER RECRUITMENT, AS RECOMMENDED BY THE GOVERNOR'S DRIVE TASK FORCE REPORT, AND TO APPROPRIATE FUNDS FOR THESE PURPOSES.

Part I.

Appropriates $2 million in recurring funds for 2024-25 from the General Fund to the Department of Public Instruction (DPI) to support the Grow-Your-Own and 2+2 teacher recruitment education programs, including the specified programs.

Part II.

Requires the State Board of Education (State Board), in consultation with the Office of the Governor, The University of North Carolina System Office, and the Community College System Office, to establish a grant program to support strategic partnerships committed to increasing the pipeline of educators of color across the State. Requires the grants to be provided to local school administrative units, institutions of higher education, and community organizations to implement innovative initiatives that support the recruitment, preparation, support, and retention of racially, ethnically, and linguistically diverse educators. Sets out the purpose of the program. Requires grant applicants to demonstrate at least: (1) a partnership between at least two of the following: local school administrative units, Historically Black Colleges and Universities, Historically Minority-Serving Institutions, educator preparation programs, alternative certification programs, public and private colleges and universities, community colleges, and community or nonprofit organizations and (2) proposals for strategies that address one or more of the specified components of the educator development continuum as highlighted by the DRIVE Task Force's 2021 Report to the Governor. Allows grant funds to be used for: (1) strengthening existing high school dual enrollment programs to offer education-based college credit or honors courses as streamlined pathways for future careers in education; (2) implementing targeted school system–level and community-based recruitment programs for aspiring educators of color interested in traditional and alternative educator preparation programs; (3) using and leveraging existing financial aid programs that reduce the disproportionate financial burden incurred by aspiring candidates of color; (4) increasing preparation and supporting preservice educators of color through paid clinical learning experiences, with a commitment to teaching in North Carolina public schools; (5) offering support for job placement and licensure for candidates of color after completing their educator preparation program; (6) providing induction and mentoring programs that address the needs of educators of color that include sustaining networking and professional learning communities or affinity groups; and (7) encouraging and financially supporting educators of color interested in joining national professional organizations or attending national conferences. Requires the State Board, by October 1, 2024, to issue a Request for Proposal (RFP) for the grant program and for applicants to submit proposals by December 1, 2024. Requires that the RFP require proposals to include specified information, including plans for financial sustainability once grant money is no longer available. Requires a selection committee, by February 1, 2025, to select up to five grantees. Allows grants to be spent over a five-year period. Requires grant recipients to report annually to the State Board on the implementation of the program. Allows the State Board to use up to $300,000 to contract with an independent research organization to evaluate the impact of this grant program and then report to the specified NCGA committee and division and the OSBM by September 1, 2026. Requires DPI to report annually on program implementation, beginning January 1, 2026. Appropriates $2 million in recurring funds for 2024-25 from the General Fund to DPI to implement the grant program. Allows unexpended funds to remain available instead of reverting to the General Fund.

Part III.

Requires the State Board to establish a grant program to assist local school administrative units in providing multiyear recruitment bonuses to certified teachers who commit to teach multiple years in a low-performing or high-needs school. Requires bonuses to include at least: (1) awards over multiple years with a requirement that teachers remain in the school over multiple years to receive the bonus and (2) awards to licensed teachers who commit to teach in a school identified as low-performing, a school identified as continually low-performing, or a school where 75% or more of students qualify for free or reduced-price lunch. Requires the State Board annually, by September 1, 2024, to issue a Request for Proposal (RFP) for the grant program. Requires local boards of education to submit their proposals by December 1, 2024. Requires that the RFP require proposals to include specified information, including plans for financial sustainability once grant money is no longer available. Requires the State Board, by February 15, 2025, to review the proposal and select up to 10 local school administrative units for grants. Allows making grant awards for up to three years. Caps the grant amount to a local school administrative unit at $500,000 in a single fiscal year. Allows the State Board to use up to $300,000 to contract with an independent research organization to evaluate the impact of this grant program and then report to the specified NCGA committee and division and the OSBM by September 1, 2027. Requires DPI to report annually on program implementation, beginning March 1, 2025. Appropriates $15 million in recurring funds for 2024-25 from the General Fund to DPI for the grant program; allows unexpended funds to remain available for these purposes instead of reverting back to the General Fund.

Part IV.

Requires the State Board to establish a grant program to assist local school administrative units in the development of teacher preparation residency pilot programs. Requires teacher preparation residency programs eligible to receive grant funding through this program to include at least: (1) coursework in the candidate's area of licensure, (2) tuition and stipends, (3) faculty advising, (4) clinical training experiences, and (5) ongoing induction support. Allows programs to include partnerships between local school administrative units, educator preparation programs, local community colleges or universities, and other community organizations. Requires grant funds to be matched by the local school administrative units on the basis of $1 in nongrant funds for every $1 in grant funds. Requires the State Board, by October 1, 2024, to issue a Request for Proposal (RFP) for the grant program and requires local boards of education to submit their proposals by January 15, 2025. Requires the RFP to require that proposals include specified information, including plans for financial sustainability once grant money is no longer available. Requires the State board to review proposals and select up 10 local school administrative units as grant recipients by April 15, 2025. Allows making grant awards for up to three years. Caps the grant amount to a local school administrative unit at $500,000 in a single fiscal year. Allows the State Board to use up to $300,000 to contract with an independent research organization to evaluate the impact of this grant program and then report to the specified NCGA committee and division and the OSBM by September 1, 2028. Requires DPI to report annually on program implementation, beginning March 1, 2026. Appropriates $15 million in recurring funds for 2024-25 from the General Fund to DPI to implement the grant program; allows unexpended funds to remain available for these purposes instead of reverting back to the General Fund.

Part V.

Amends GS 116-209.45 by expanding upon eligible loan recipients for the Forgivable Education Loans for Service Program to include individuals with a bachelor’s degree who are seeking preparation for teacher licensure. Amends the duties of the Loan Program’s Advisory Group by requiring it to make recommendations on strategies to encourage participation in the Loan Program for potential recipients of color, specifically among individuals pursuing teacher licensure.

Part VI.

Removes the terms qualifying licensure area and STEM from the definitions under GS 116-209.60, which defines terms for use in Part 3 of Article 23 of GS Chapter 116, which governs the North Carolina Teaching Fellows Program (Program). No longer limits the Program to providing loans to individuals interested in preparing to teach in the State's public schools in those previously specified qualifying licensure areas, instead opening it more broadly to those preparing to teach in the State's public schools. Makes changes throughout the Part by removing references to "STEM" and "qualifying licensure area." Requires Program recruitment efforts to include identifying and encouraging students of color and students who may not otherwise consider a teaching career to enter the program. Requires the recruitment activities to include a strategy that attracts a diverse pool of applicants. Removes the cap on the number of participating institutions and specifies that the diverse selection of participating programs is to include minority-serving institutions. Applies beginning with the 2025-26 academic year. Appropriates $5.7 million in recurring funds for 2024-25 from the General Fund to the North Carolina Teaching Fellows Program Trust Fund to support an additional 490 teacher licensure candidates.

Part VII.

Amends GS 115C-26.35 by expanding upon the items that must be included in an educator preparation program’s (EPP) annual performance report to the State Board by also requiring the percentage of students of color (as defined) enrolling in and completing the program.

Amends GS 115C-269.50 by adding the requirement that each EPP annually report to the State Board the five specified items regarding the diversity of identified persons disaggregated by race, sex, ethnicity, age, and disability status. Require that the State Board annually, beginning June 15, 2022, collect the information from those EPP annual reports and report those results to the specified NCGA committee.

Part VIII.

Effective July 1, 2024.

Intro. by Hawkins.

APPROP, GS 115C, GS 116

Education, Elementary and Secondary Education, Higher Education, Government, Budget/Appropriations, State Agencies, UNC System, Department of Public Instruction, State Board of Education

H 1048 (2023-2024) HBCU/HMSI OMNIBUS. Filed May 2 2024, AN ACT TO APPROPRIATE FUNDS AND MAKE VARIOUS CHANGES TO THE LAWS TO SUPPORT PUBLIC AND PRIVATE HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND HISTORICALLY MINORITY-SERVING INSTITUTIONS IN NORTH CAROLINA.

Part I.

Enacts new GS 116-44.9 requiring the UNC Board of Governors (BOG) to establish, to the extent funds are provided, a Completion Assistance Program (Program) at each eligible constituent institution, defined as: Elizabeth City State University, Fayetteville State University, North Carolina Agricultural and Technical State University, North Carolina Central University, The University of North Carolina at Asheville, The University of North Carolina at Greensboro, The University of North Carolina at Pembroke, and Winston-Salem State University. Gives students enrolled in the Program up to $1,000 per academic year to pay for the cost of continuing attendance and earning necessary credit hours. Sets out student eligibility requirements, including needing financial assistance to remain enrolled at the eligible institution and earn credits necessary to graduate on time, being an in-state resident, and making satisfactory academic progress. Requires the UNC BOG to report annually on each Program to the specified NCGA committee, with the report including specified information. Requires that funds be distributed to each eligible constituent institution proportional to the number of undergrads enrolled at the institution who are state residents and recipients of a federal Pell Grant.

Repeals Section 8.0 of SL 2023-234, which also required the establishment of a Completion Assistance Program. Requires that the $2 million allocated for those Programs be instead used for the Programs authorized by this act.

Appropriates $8.5 million in recurring funds for 2024-25 from the General Fund to the BOG for the Programs, as established in this act.

Part II.

Creates the Joint Legislative Study Committee on Infrastructure at Historically Black Colleges and Universities (Committee), consisting of nine Senators and nine Representatives, with appointments made by September 1, 2024. Requires the Committee to consult with the BOG and the president or equivalent at each of the Historically Black Colleges and Universities (HBCUs) in the state, in studying 9 specified topics related to building on HBCU campuses, including threats posed to HBCUs by the proximity to certain facilities to toxic sites, student enrollment in relation to classroom capacity, and facilities in significant disrepair and any deferred maintenance on those facilities. Sets out requirements for meetings and staffing. Requires Committee meetings to begin by August 15, 2024. Requires a final report to the specified NCGA committee by January 1, 2025, and terminates the Committee upon the earlier of the filing of the final report or January 1, 2025.

Part III.

Appropriates specified amounts from the General Fund to BOG for 2024-25 to be used for the specified infrastructure improvements at the following universities: Winston-Salem State University, Fayetteville State University, and Elizabeth City State University.

Part IV.

Adds new Part 3A, North Carolina Nursing Fellows Program, under Article 23 of GS Chapter 116, as follows. Establishes the 14-member North Carolina Nursing Fellows Commission (Fellows Commission) to determine program and forgivable loan recipient selection criteria and selection procedures, and requires it to select the recipients under the new North Carolina Nursing Fellows Program (Fellows Program). Sets out membership requirements and appointment authority, with terms set for two years.

Establishes the Fellows Program with the purpose of recruiting, preparing, and supporting students enrolled in an eligible nursing program for preparation as highly effective registered nurses in the State by proving forgivable loans to those interested in preparing to become a registered nurse in this State. Defines an eligible nursing program as any educational program in North Carolina leading to a bachelor of science in nursing that is offered by Winston-Salem State University and meant to prepare a person to meet the educational requirements for licensure under GS Chapter 90, Article 9A. Also establishes the North Carolina Nursing Fellows Program Trust Fund (Fund) to provide the financial assistance. Allows money in the Trust Fund to be used only for forgivable loans under the Fellows Program, administrative costs of the Fellows Program, mentoring and coaching support for loan recipients, and extracurricular enhancement activities. Specifies provisions related to these uses of the funds. Sets out provisions governing the appointment of a Fellows Program Director and appointment of staff. Requires the Fellows Commission to adopt standards for awarding the loan, including specified measures. Sets the amount of the forgivable loans as $5,000 per semester with the number of semesters dependent upon whether the recipient is a high school senior, a student applying to transfer to Winston-Salem State University, an individual with a bachelor's degree seeking preparation to become a nurse, or student matriculating at Winston-Salem State University who is changing to a program of study leading to a bachelor of science in nursing. Sets out provisions governing the administration of the loans and establishes reporting requirements, with annual reports due to the specified NCGA committee.

Sets out the terms of the forgivable loans with the loan amount received over one year of enrollment and any interest that has accrued forgiven for every year a nurse remains a qualifying nurse (defined as a nurse who received a forgivable loan, graduated within 10 years from an eligible nursing program, and is licensed and employed as a registered nurse in this State).

Makes conforming changes to GS 116-204.

Requires initial appointments to be made to the Fellows Commission by August 15, 2025, to expire on July 1, 2027.

Requires recipients to be selected and initial awards to be made by April 1, 2025.

Appropriates $2.5 million in recurring funds for 2024-25 from the General Fund to the BOG to be allocated to the State Education Assistance Authority to develop and administer the Fellows Program.

Effective July 1, 2024, and applies beginning with applications for enrollment in the Fellows Program in the 2025-26 academic year.

Part V.

Amends GS 116-290 by expanding upon the institutions participating in the Cheatham-White Scholarships to also include Winston-Salem State University. Allows up to 40 scholarships for resident students and 10 for nonresident students to be awarded each year to students at Winston-Salem State University. Makes conforming changes to GS 116-292 and GS 116-294.

Appropriates $6 million in recurring funds for 2024-25 from the General Fund to the BOG to make these changes.

Part VI.

Appropriates the specified amounts from the General Fund to BOG for 2024-25 to be allocated to Elizabeth City State University to expand the aviation science program, renovate Roebuck Stadium, and build a residence hall.

Part VII.

Requires the BOG, by August 15, 2024, to revise its Policy on Non-Resident Undergraduate Enrollment so that the maximum percentage of non-resident students at North Carolina Central University in the first-time fall undergraduate class is 50%.

Amends GS 116-143.1, as it applies to persons enrolled at North Carolina Central University only, by charging the in-state tuition rate when: (1) the person graduated and received a high school diploma from a school within North Carolina or received a high school equivalency diploma within North Carolina; (2) the person attended North Carolina schools for a minimum of two consecutive years immediately prior to completing high school; (3) if the person does not have lawful immigration status, the person submits an affidavit within 60 days of enrollment asserting that, to the extent permitted under federal law, he or she has filed an application to legalize his or her status or he or she intends to file an application to legalize his or her status upon becoming eligible to do so; and (4) the person enrolled in a constituent institution. Makes information obtained under these provisions confidential. Applies beginning with the 2024-25 academic year.

Part VIII.

Appropriates specified amounts from the General Fund to the Office of State Budget and Management (OSBM) for 2024-25 to be allocated to Johnson C. Smith University for capital improvements; academic program support, including health professional preparedness programs; and specified transformative initiatives.

Part IX.

Appropriates specified amounts from the General Fund to the OSBM for 2024-25 to be allocated to Shaw University for capital improvements and support of the teacher preparation program.

Part X.

Appropriates specified amounts from the General Fund to the OSBM for 2024-25 to be allocated to Barba-Scotia College for capital improvements and for workforce development initiatives.

Part XI.

Appropriates $5 million in recurring funds for 2024-25 from the General Fund to BOG to be allocated to the State Education Assistance Authority to increase need-based scholarships for students attending private institutions of higher learning in accordance with Article 34 of GS Chapter 116 (Need‑Based Scholarships for Students Attending Private Institutions of Higher Education).

Part XII.

Appropriates $10,660,661 in recurring funds for 2024-25 from the General Fund to the BOG to be allocated to North Carolina Agricultural and Technical State University for its agriculture research and extension program.

Part XIII.

Appropriates specified amounts from the General Fund to the OSBM for 2024-25 to be allocated to Bennet College for facility maintenance needs and to support the education degree program.

Part XIV.

Appropriates specified amounts from the General Fund to the OSBM for 2024-25 to be allocated to Livingstone College to support the College and for the Livingstone College Center for Aging Out to support students aging out of foster care.

Part XV.

Appropriates specified amounts from the General Fund to the OSBM for 2024-25 to be allocated to Saint Augustine’s University for a completion assistance grant program to address gaps in degree completion rates, and construction of a new academic building. States the NCGA’s intent to annually appropriate a portion of funds in the Education Lottery Fund to support scholarships for needy students at Saint Augustine’s University.

Part XVI.

Effective July 1, 2024.

Intro. by Hawkins, Ward, A. Baker.

APPROP, GS 116

Education, Higher Education, Government, Budget/Appropriations, General Assembly, State Agencies, UNC System, Office of State Budget and Management, Health and Human Services, Health, Health Care Facilities and Providers

H 1053 (2023-2024) SEA TURTLE PROTECTION ACT. Filed May 2 2024, AN ACT TO PROVIDE THAT THE WILDLIFE RESOURCES COMMISSION SHALL ESTABLISH DESIGNATED COASTAL AREAS WHICH ARE UTILIZED OR LIKELY TO BE UTILIZED BY SEA TURTLES FOR NESTING, TO PROVIDE FOR GRANTS TO BUILDERS AND HOMEOWNERS FOR TURTLE FRIENDLY LIGHTING, TO DEFINE NECESSARY TERMS, TO PROHIBIT THE USE OF ARTIFICIAL LIGHT TO ILLUMINATE AN AREA OF THE BEACH DESIGNATED BY THE COMMISSION, TO ESTABLISH REQUIREMENTS FOR CERTAIN TYPES OF LIGHTING, AND TO PROVIDE FOR A PENALTY.

Enacts new GS 113-300 requiring the Wildlife Resources Commission (WRC) to designate coastal areas within the state that are used or likely to be used for sea turtle nesting, publish a map with the designated areas clearly marked on its website, and notify the governing board and inspection department of each county and municipality of the state that includes a designated area.

Adds new Article 9H, Restrictions on Artificial Lighting to Protect Sea Turtles, in GS Chapter 143, providing as follows. Prohibits an artificial light from illuminating the oceanfront of any beach designated under new GS 113-300. Sets out requirements and restrictions on lighting for any building plans for new development or the remodeling of an existing structure when it includes the alteration of exterior lighting visible from the oceanfront beach, including that tinted glass, filmed glass, or shade screens be used on windows facing the oceanfront above the first floor of a multistory structure, and that floodlights are prohibited and wall-mounted lights must be fitted with hoods so that no light illuminates the beach or with turtle-friendly lighting. Defines turtle friendly lighting as a system or structure that emits only amber colored lights with a wavelength of no less than 560 nanometers. Also sets restrictions on temporary security lights at construction sites. Defines oceanfront as the illuminated portion of the lighting system or structure visible from any portion of the ocean beaches of the state that is to the ocean side of the dune line or, if there is no dune line, from any area within a line 25 feet to the landward side of the mean high tide mark. Requires giving violators five days’ notice to come into compliance; failure after that time results in a warning for a first offense, and a fine between $250-$500 for second and subsequent offenses. Provides that the Article is enforceable by any law enforcement office or local government code enforcement agent with jurisdiction over the property. Applies to building permits applied for on or after January 1, 2025.

Enacts new GS 143-151.82 setting out requirements for oceanfront artificial lighting and for oceanfront lighting in parks or other publicly owned beach access areas. Effective January 1, 2026.

Appropriates $400,000 for 2024-25 to the WRC to be allocated in specified amounts for grant programs in areas designated by the WRC under new GS 113-300 for homeowners and builders for a cost-share for the cost of turtle-friendly lighting, and for law enforcement or local code enforcement agencies for enforcement and public education. Requires the WRC to report on the use of the grant funds to the specified NCGA committee and division annually beginning in 2025, until the funds have been encumbered. Specifies what is to be included in the report. Allows WRC to use 3% of the funds for administrative expenses. Requires WRC to adopt rules for eligibility requirements for the grants.

Effective July 1, 2024.

Intro. by Cervania, Harrison, Butler, Longest.

APPROP, GS 113, GS 143

Animals, Development, Land Use and Housing, Building and Construction, Environment, Environment/Natural Resources, Government, Budget/Appropriations

H 1055 (2023-2024) WORKING FAMILIES AND SMALL BUSINESSES ACT. Filed May 2 2024, AN ACT APPROPRIATING FUNDS TO RAISE SALARIES FOR TEACHERS AND STATE EMPLOYEES, REDUCING PARENT COPAYMENTS FOR SUBSIDIZED CHILD CARE, AND PROVIDING A SMALL BUSINESS TAX CREDIT.

Part I.

Sets a monthly teacher salary schedule for "A" teachers for 2024-25 for licensed public school personnel classified as teachers, based on years of experience, ranging from $4,600 for teachers with 0 years of experience to $5,875 for 30 or more years of experience. Provides for a 12% salary supplement for licensed teachers who have National Board for Professional Teaching Standards certification; a 10% salary supplement for licensed teachers classified as "M" teachers; a $126 salary supplement for licensed teachers with licensure based on academic preparation at the six-year degree level, in addition to the "M" teachers salary supplement; a $253 salary supplement for licensed teachers with licensure based on academic preparation at the doctoral degree level, in addition to the "M" teachers salary supplement; a 10% salary supplement for certified school nurses; and a $100 salary supplement for school counselors who are licensed as counselors at the master’s degree level or higher.

Requires that the first step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher must be equivalent to the sixth step of the "A" salary schedule. Provides for a 10% and $350 salary supplement. Deems these employees eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year degree level or the doctoral degree level. Requires that the twenty-sixth step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher must be 7.5% higher than the salary received by these same employees on the twenty-fifth step of the salary schedule. Provides that in lieu of the amounts of annual longevity payments to teachers paid on the teacher salary schedule, beginning with the 2014-15 fiscal year, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.

Details teacher compensation for the 2024-25 school year based on either (1) the applicable salary schedule; (2) the sum of the salary the teacher received in 2013-14, longevity pay for the 2013-14 school year, and annual bonus provided in SL 2014-100; or (3) the sum of the salary and annual bonus the teacher received in the 2014-15 school year, with the compensation amount determined to be equal to the greater of those amounts. Provides that "teacher" includes instructional support personnel. Appropriates $322,709,000 in recurring funds for 2024-25 from the General Fund to the Department of Public Instruction (DPI) to increase salaries for teachers and support personnel.

Part II.

Amends Section 9D.3 of SL 2023-134 by decreasing the family portion under subsidized child care to require that fees for families who are required to share in the cost of care be based on 7% (was, 10%) of gross family income. Effective July 1, 2024.

Part III.

Raises salaries for certain individuals whose salaries are (1) set/authorized in this Part under the State Human Resources Act (SHRA) and (2) who are employed in a state-funded position on June 30, 2024, by 5% effective July 1, 2024, in addition to any other raises permitted by law. Allows for permanent part-time employees to receive the increase on a prorated and equitable basis. Specifies that no eligible State-funded employee will be prohibited from receiving the full salary increase solely because the employee’s salary after applying the 5% increase would be above the maximum of the salary range prescribed by the State Human Resources Commission (SHRC). Exempts employees of local boards of education; local community college employees; employees of The University of North Carolina; clerks of superior court compensated under GS 7A-101; certain correctional employees covered by the act; certain law enforcement officers covered by the act; certain probation and parole officers covered by the act; and employees of schools operated by the Department of Health and Human Services (DHHS), the Department of Public Safety (DPS), and the State Board of Education (Board) who are paid based on the Teacher Salary Schedule.

Authorizes state agencies to use the funding allotted to them from the Receipt-Supported Cost-of-Living Adjustment (COLA) Reserve to fundshift a limited number of receipt-supported positions in the General Fund to net appropriation funding.

Replaces references to “longevity pay” in GS Chapter 126 with “retention pay.” Increases retention pay provided to employees who are full-time or over half-time and have a permanent, time-limited or probationary appointment and who are in pay status for one-half of the regularly scheduled workdays and holidays in a pay period ranging from 1% for those employees with two years but less than five years of service to 4.5% for those employees with 25 or more years of service.

Provides for retention bonuses for the 2024-25 fiscal year as follows: (1) the school personnel described in Part I who are SHRA employees and continuously employed by the State or a public school unit from November 1, 2023, to March 31, 2024, a retention bonus of $500 paid during May 2024 and (2) all permanent full-time State employees and local education employees who are employed by the State or a public school unit from November 1, 2023, to March 31, 2024, and who earn an annual salary that does not exceed $75,000 must be paid an additional retention bonus of $250 paid during May 2024 by employers of State employees and local education employees. Specifies that the funds appropriated for retention bonuses in excess of the amounts required to implement these bonuses will revert and not be credited to the Pay Plan Reserve. Specifies how bonuses are to be paid and treated in terms of whether they are categorized as salary.

Requires the State Board of Community Colleges to provide community college faculty and non-faculty personnel with an increase as provided by this act, effective July 1, 2024.

For the UNC system, directs that SHRA employee salaries will be increased as provided by this act. Authorizes the UNC Board of Governors to provided EHRA employees a salary increase pursuant to policies adopted by the board for one or more of the following purposes: merit pay, across-the-board increases, recruitment bonuses, retention increases, and other compensation increases pursuant to those policies. Requires the Board of Governors to report on the use of compensation to the General Assembly by October 1, 2024.

Requires correctional officers in the Department of Adult Correction to be compensated at a specific pay rate on the basis of a salary schedule based on years of experience. Also requires employees in the Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, to be compensated at a specific pay rate based on years of experience; sets out the salary schedule to be used based on type of position. Sets out the annual salary schedule for correctional officers, based on experience and job class, for 2024-25 ranging from $38,750 for correctional officers classified as COI with 0 years of experience to $55,700 for correctional officers classified as COIII with six or more years of experience.

Sets an annual salary schedule based on the officer's respective work experience, based on experience and job class, for law enforcement officers of Alcohol Law Enforcement and the State Bureau of Investigation compensated pursuant to an experience-based salary schedule for 2024-2025 ranging from $56,151 for those with 0 years experience and $81,935 for those with 6 years or more of experience.

Sets an annual salary schedule based on the officer's respective work experience, based on experience and job class, for law enforcement officers of the State Highway Patrol pursuant to an experience-based salary schedule for 2024-25 ranging from $57,750 for those with 0 years experience and $84,265 for those with 6 years or more of experience.

Sets an annual salary schedule for probation and parole officers, based on experience, for 2024-25 ranging from $46,785 for officers with 0 years experience to $68,266 for officers with 6 years or more of experience. Requires Juvenile Court Counselors working in the Division of Juvenile Justice and Delinquency Prevention to also be paid on this salary schedule.

Specifies that employees of the schools operated by DHHS, DPS, and the Board who are paid on the Teacher Salary Schedule will be paid as authorized by the act and that employees of the School of Science and Mathematics of The University of North Carolina who are paid pursuant to a salary schedule adopted by the North Carolina School of Science and Mathematics Board of Trustees will be paid in accordance with the schedule adopted by that board.

Specifies that the COLAs authorized by the act will be paid on July 1, 2024, and do not apply to persons who separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to June 30, 2024. Provides for flexibility by the Director of the Budget (Director) to administer the act. Sets forth provisions related to the effective dates of State employer contribution rates for administrative purposes. Applies to all employees paid from state funds, including employees of public schools, community colleges, and UNC.

Provides that the annual salaries in effect for the following on June 30, 2024, must be legislatively increased as provided in Section 2.1 of the act, unless another requirement applies under other provisions of the act: permanent, full-time State officials and persons whose salaries are set in accordance with the SHRA; permanent, full-time State officials and persons in positions exempt from the SHRA; permanent, part-time State employees; and temporary and permanent hourly State employees.

Bars state agencies from using funds for salary increases for any other purpose. Requires the Office of State Budget and Management (OSBM) to ensure the appropriations are being used appropriately. Specifies that funds appropriated for COLAs and employee benefit increases cannot be used to adjust the budgeted salaries of vacant positions or to provide salary increases in excess of those required by the General Assembly except to increase the budgeted salary of any position to the minimum of the position's salary range and to meet retention pay needs. Authorizes the Director to reallocate funds if they find the funds are being used for other purposes. Specifies that the funds appropriated for COLA and employee benefit increases in excess of the amounts required will be credited to the Pay Plan Reserve. Requires OSBM to report to the specified NCGA committee by October 1, 2024, on the expenditure of funds for legislatively mandated salary increases and employee benefits with four specified matters that must be addressed.

Amends Section 39.26 of SL 2023-134 by increasing the State’s employer contribution rates for teachers and state employees, state law enforcement officers, the University and Community Colleges Optional Retirement Programs, the Consolidated Judicial Retirement System, and the Legislative Retirement System.

Amends GS 135-5 (pertaining to benefits under TSERS), GS 135-65 (post retirement increases under CJRS), GS 120-4.22A (post retirement increases under LRS) as follows. Effective July 4, 2024, provides for a 2% COLA for certain beneficiaries who retired on or before July 1, 2023, and for employees who retired after July 1, 2023, and before June 30, 2024. Provides for proration. After September 1, 2024, but on or before October 31, 2024, provides for a one-time 1% COLA supplement payment to be paid on or behalf of living beneficiaries whose retirement began on or before September 1, 2024. Does not allow for proration. Sets forth provisions related to payment if the beneficiary dies before payment is made. Specifies that no beneficiary will be deemed to have acquired a vested right to any future supplemental payments.

Appropriates from the General Fund to the Reserve for Compensation Increases $210,009,000 in recurring funds for the 2024-25 fiscal year and $399,685,000 in nonrecurring funds for the 2024-25 fiscal year.

Part IV.

Enacts GS 105-163.6B (providing a tax credit to employers for wages paid). Defines qualifying taxpayer to mean an employer or payer subject to income tax that has annual receipts for the most recent previous tax year of $8 million or less. Permits qualifying taxpayers to take a credit equal to the lesser of $10,000 or 5% of the wages paid by the qualifying taxpayer during the taxable year. Requires the Secretary to refund the excess to the qualifying taxpayer if the credit plus any other allowable credits exceed the tax imposed. Specifies provisions governing the refundable excess and methods of computation. Provides for substantiation by the qualifying taxpayer upon request of the Secretary. Effective for taxable years beginning on or after January 1, 2025, and sunsets for taxable years beginning on or after January 1, 2027.

Intro. by Staton-Williams, Prather, Ball, Everitt.

APPROP, GS 105

The Daily Bulletin: 2024-05-06

PUBLIC/SENATE BILLS

S 802 (2023-2024) C-PACE PROGRAM. Filed May 2 2024, AN ACT TO ADVANCE BUILDING RESILIENCY AND UTILITY EFFICIENCY IN NORTH CAROLINA BY AUTHORIZING A STATEWIDE PROGRAM TO UTILIZE ASSESSMENTS TO REPAY NONPUBLIC FINANCING OF COMMERCIAL BUILDING IMPROVEMENTS THAT WILL PROMOTE ECONOMIC DEVELOPMENT, REDUCE UTILITY BILL COSTS, AND HARDEN COMMERCIAL BUILDINGS AGAINST STORM AND FLOOD DAMAGE AND TO AMEND ARTICLE 8 OF CHAPTER 143 OF THE GENERAL STATUTES TO MODIFY THE REQUIREMENTS TO BE CERTIFIED AS A MINORITY BUSINESS OR HISTORICALLY UNDERUTILIZED BUSINESS.

Enacts Article 10B, titled the "Commercial Property Assessed Capital Expenditure and Resilience Act (C-PACE)," in GS Chapter 160A. Sets forth legislative findings and 15 defined terms. Defines qualified improvement to mean a permanent improvement that is affixed to a qualified commercial property (defined) and includes one of the following characteristics approved by the administrator, as described: energy efficiency measure; resiliency measure; renewable energy measure; and/or water conservation measure. Defines capital provider to mean a private entity, or the private entity's designee, successor, and assigns, that makes or funds qualifying improvements under the Article.

Authorizes the establishment of a statewide C-PACE program that local governments can voluntarily join to allow willing owners of certain properties to obtain low-cost, long-term financing for qualifying improvements including energy efficiency, water conservation, renewable energy, and resilience projects, secured by a recorded assessment and lien pursuant to the Article. Designates the Department of Commerce (DOC) as the program’s sponsor. Authorizes the Economic Development Partnership of North Carolina (Partnership) to serve as administrator of the C-PACE program with seven listed prongs of oversight responsibility, including preparing a C-PACE toolkit in consultation with local governments and the DOC, imposing fees to offset the actual and reasonable costs of administering C-PACE which are capped at $750 for application fees and $25,000 for processing fees for financed projects, establishing a process for reviewing and evaluating applications, accepting and approving applications for C-PACE financing, recording of liens or notice of assignments pertaining to C-PACE assessments and liens, and annual reports to DOC. Exempts the C-PACE toolkit and any actions of the Partnership or DOC in the administration of the program from GS Chapter 150B of the APA (rulemaking, hearings, judicial review).

Requires local governments seeking to participate in the program to adopt a resolution with specified content including, (1) an authorization for the C-PACE program to operate within its jurisdictional boundaries, (2) its intent to participate in the program and take associated actions, and (3)statement that he amount of a C-PACE financing and related assessment repayment rems must be pursuant to the related financing agreement. Bars local government from receiving funds for repayment of C-PACE assessments and directs that if any such funds are received, they are considered custodial funds for the benefit of the capital provider.

Details procedures and requirements pertaining to State and local government immunity. Places sole enforcement responsibility upon the capital provider. Further provides for foreclosure procedure, parameters, and lien priority, with the C-PACE lien being inferior to all non-governmental liens on the property prior to the date on which the notice of the C-PACE lien was recorded, subject to mortgage holder consent. Details the effect of a C-PACE lien, deeming the lien to run with the land and be superior to all other liens from the date of recordation. Bars contesting matters regarding whether the lien is a qualified improvement, or financing procedural or substantive irregularities, following recordation of the C-PACE lien.

Provides a non-exhaustive list of permissible financing for assessments, including material and labor costs, permit fees, inspections fees, and capitalized interest. Restricts the term of financing to the weighted average useful life if multiple improvements are approved. Provides for financing negotiations and enforcement responsibilities.

Provides for prior consent of each holder of a mortgage or deed on the property securing indebtedness, required to be submitted to the Partnership, which also acknowledges that the assessment is not an event of default under the terms of the mortgage or deed. Specifies that financing arrangements can include direct purchases or contractual agreements.

Makes conforming and/or changes to GS 105-375 (in rem foreclosures) and GS 105-374 (foreclosure by tax lien).

Appropriates $50,000 from the General Fund to DOC in nonrecurring funds for the 2024-2025 fiscal year to allocate to the Economic Development Partnership of North Carolina to develop the C-PACE toolkit.

Effective July 1, 2024.

Intro. by Johnson, Lazzara, Lee.

APPROP, GS 105, GS 160A

Courts/Judiciary, Civil, Civil Law, Development, Land Use and Housing, Building and Construction, Community and Economic Development, Government, Budget/Appropriations, State Agencies, Department of Commerce, Local Government

S 803 (2023-2024) HOMES OF HOPE ADOPTION TAX CREDIT. Filed May 2 2024, AN ACT TO ENACT THE HOMES OF HOPE ADOPTION TAX CREDIT.

Reenacts GS 105-151.32, and recodifies it as GS 105-153.11, which allows a $2,000 per child income tax credit for expenses related to adopting a child and specified foster care. Effective for taxable years beginning on or after January 1, 2024.

Intro. by Smith.

Government, Tax, Health and Human Services, Social Services, Child Welfare

S 804 (2023-2024) EXPAND PUBLIC NEED-BASED SCHOLARSHIPS. Filed May 2 2024, AN ACT TO EXPAND THE NORTH CAROLINA NEED-BASED SCHOLARSHIP FOR PUBLIC COLLEGES AND UNIVERSITIES AND TO REQUIRE PRIORITY CONSIDERATION FOR FAFSA APPLICATIONS SUBMITTED BY JUNE 15, 2024.

Expands the eligibility requirements for a NC need-based college scholarship (Scholarship) under GS 116-209.81 to allow persons who are dependents in a household with an adjusted gross income in the most recent taxable year of $100,000 or less to also be eligible for the scholarship. (Currently, just applies federal need-based methodology to determine eligibility based on the student’s FAFSA.) Makes organizational changes.

Requires that the Scholarship’s payment schedule required by GS 116-209.83 ensures that students who receive Pell Grant assistance along with the Scholarship receive at least $4,000 per year combined if the student is enrolled in community college and at least $6,000 per year combined if the student is enrolled at a UNC constituent institution.

Amends the Scholarship administration and reporting requirements in GS 116-209.84 to require the State Education Assistance Authority (Authority) to regularly conduct public awareness campaigns about the Scholarship program and to reach out to private entities to encourage them to donate to the Scholarship program. Amends GS 116-209.85 (Scholarship reserve fund) to include funds received by the institution as private gifts as part of the reserve.

Applies beginning with the award of scholarships in the 2025-2026 fiscal year.

Specifies that for applications for financial aid for the 2024-2025 academic year, the UNC BOG and the State Board of Community Colleges must ensure that all FAFSA forms submitted to a constituent institution or community college by June 15, 2024, receive priority consideration.

Appropriates $124 million from the General Fund to the UNC BOG in recurring funds for the 2024-2025 fiscal year to be allocated to the Authority to implement the expansion of the Scholarship. Effective July 1, 2024.

Intro. by Smith.

APPROP, GS 116

Education, Higher Education, Government, Budget/Appropriations, State Agencies, Community Colleges System Office, UNC System

S 811 (2023-2024) AGE WITH DIGNITY ACT (CAREGIVER TAX CREDIT). Filed May 2 2024, AN ACT TO ENACT THE AGE WITH DIGNITY ACT TO CREATE A CAREGIVER TAX CREDIT.

Enacts new GS 105-153.11, which provides an income tax credit for a taxpayer who (1) is allowed an exemption for a qualifying relative under Section 152 of the Code and (2) has an adjusted gross income less than the specified amounts, ranging from $75,000 to $150,000 depending on filing status. Sets the amount of the credit at $15,000 if the qualifying relative is a military veteran and at $12,000 for any other qualifying relative. Effective for taxable years beginning on or after January 1, 2024.

Intro. by Smith, Grafstein.

Government, Tax, Health and Human Services, Social Services, Adult Services, Military and Veteran's Affairs

S 815 (2023-2024) NC PAID FAMILY INSURANCE ACT. Filed May 2 2024, AN ACT TO ENACT THE NORTH CAROLINA PAID FAMILY LEAVE INSURANCE ACT.

Enacts new GS Chapter 96A, to be cited as the "North Carolina Paid Family Leave Insurance Act." Sets forth 15 defined terms applicable to the Chapter. Deems family and medical leave benefits provided under the terms of the Chapter payable beginning July 4, 2024, to covered individuals, defined as any person who submits an application and meets the monetary eligibility criteria set forth in GS 96-14.1(b) (regarding unemployment benefit claims) or is self-employed, elects coverage, and meets the requirements of new GS 96A-13, and meets the administrative requirements of the new Chapter and rules adopted thereunder, who meet one of five requirements, including: (1) is caring for a new child during the first year after birth, adoption, or child placement; (2) is caring for a family member with a serious health condition; (3) has a serious health condition; (4) is caring for a covered service member, as defined, who is the covered individual's next of kin or other family member; and (5) because of any qualifying exigency leave (as defined) arising out of the fact that the family member of the covered individual is on active duty or has been notified of an impending call or order to active duty in the Armed Forces. Defines family member, next of kin, and serious health condition. Specifies maximum duration of benefits based on eligibility requirement, ranging from 12 weeks to 26 weeks depending on the reason for the leave. Sets out formula for determining the amount of benefit, with the minimum weekly amount set at 20% of the state average weekly wage and the maximum set at 120% of the state average weekly wage. Allows an individual to take family and medical leave on an intermittent or reduced leave schedule.

Requires a person returning from family and medical leave to be restored (1) to the position they held when the leave commenced or (2) to an equivalent position with equivalent benefits, pay, and other terms and conditions. Requires the employer to maintain health care benefits for an eligible covered individual on family and medical leave on the same terms as if the individual had continued to work.

Requires the family and medical leave insurance benefits that are paid out to be reduced by the amount the individual receives from a disability or workers’ comp program, a temporary disability program, or another plan providing maternity or parental benefits. Sets out additional conditions under which the benefits are not to be paid or must be reduced due to other coverage.

Requires a person intending to take family and medical leave to give their employer no less than 30 days’ notice, except when there is an emergency or unforeseen circumstances. Also requires an individual requesting leave for a foreseeable reason to make a reasonable effort to schedule the leave so as not to unduly disrupt the employer’s operations. Sets out steps a person must take when requesting the leave for an unforeseeable reason, including providing notice as soon as practicable. Sets out items that must be included in the employee’s notice, including anticipated timing and duration of the leave. Requires the individual to provide written certification from a health care provider when the request is due to a serious health condition, when requested by the employer; sets out required deadlines for such a certification and allows employers to ask for recertification. Sets out items that must be included in the certification. Certifications are confidential. Allows an employer to require the individual to get a second opinion, at the employer’s expense, to be provided by a health care provider not employed by the employer. Allows requiring a third opinion if the first two are different. Provides, however, that if the individual gives the employer a complete and sufficient certification, then the employer may not request a second or third opinion.

Requires an employer to make, keep, and preserve records on compliance with this Chapter, including records related to the administration of family and medical leave and medical certifications. Sets out eight categories of items that must be included in the records.

Requires the Division of Employment Security (Division) of the Department of Commerce (DOC) to adopt rules to implement and administer the Chapter. Sets out additional provisions governing the content of these rules and the procedure for their adoption.

Sets out provisions governing coverage for self-employed individuals.

Deems an employee on family and medical leave to be on leave status and not considered an employee for the purposes of employee benefits or seniority. Allows the employer to recover the premiums paid by the employer for maintaining health insurance, life insurance, or other benefits plan, if the employee does not return from leave, unless the return is because of: (1) the continuation, recurrence, or onset of a serious health condition that entitles the employee to leave or (2) other circumstances beyond the employee’s control.

Sets out provisions requiring confidentiality of information received about an employee or covered individual under this Chapter.

Establishes the Paid Family and Medical Leave Fund (Fund), consisting of contributions collected under this Chapter, interest, gifts or grants, and any other funds appropriated by the NCGA or directed to be credited to the Fund. Requires the Fund to be used to pay family and medical leave insurance benefits and for administration of this Chapter. Specifies that money in the Fund does not revert to the NCGA.

Establishes civil penalties for several different categories of violations, including failure to remit contributions to the Fund, providing false information, and failure to submit required reports. Penalties are paid into the Fund. Requires the Division to adopt rules to implement and administer these requirements.

Sets out provisions governing how this Chapter relates to various federal laws.

Includes a severability clause.

Effective July 4, 2024.

Intro. by Grafstein, Batch, Garrett.

GS 96A

Business and Commerce, Insurance, Employment and Retirement, Government, State Agencies, Department of Commerce

S 821 (2023-2024) TRAIN INFRASTRUCTURE ACCELERATION ACT. Filed May 2 2024, AN ACT TO PROVIDE ADDITIONAL STATE FUNDING TO EXPEDITE THE DEVELOPMENT OF TRAIN INFRASTRUCTURE IN NORTH CAROLINA THROUGH THE CONTINUED IMPLEMENTATION OF THE CORRIDOR IDENTIFICATION PROGRAM.

Titles the act the “Train Infrastructure Acceleration Act” and sets out the act’s purpose. Requires the Department of Transportation (DOT) to expedite the implementation of the Corridor Identification Program routes with the goal of enhancing rail connectivity across North Carolina.

Allocates an additional State allocation of $1 million to each of the seven specified routes for comprehensive engineering, feasibility studies, and initial development efforts.

Requires DOT to report annually by December 1 to the specified NCGA committee and division on the use of the funds, advancements in the studies, and any federal funding.

Appropriates $7 million from the General Fund to DOT.

Effective July 4, 2024.

Intro. by Grafstein, Batch, Garrett.

Government, Budget/Appropriations, State Agencies, Department of Transportation, Transportation

S 822 (2023-2024) CHILD CARE OMNIBUS. Filed May 2 2024, AN ACT TO INCREASE THE CHILD TAX DEDUCTION AMOUNT, TO CREATE THE CHILD CARE STABILIZATION FUND TO ASSIST IN STABILIZING THE CHILD CARE WORKFORCE AND ENSURE ACCESS TO QUALITY CHILD CARE, TO ESTABLISH THE CHILD CARE PROVIDER SUPPORT PROGRAM TO OFFER FINANCIAL ASSISTANCE TO CHILD CARE PROVIDERS IN THIS STATE, AND TO APPROPRIATE FUNDS FOR THOSE PURPOSES.

Part I

Increases the child income tax deduction amounts under GS 105-153.5(a1) in amounts ranging by a $600 increase (so the deduction goes from $3,000 to $3,600) for persons earning up to $40,000 per year to a $100 increase (so the deduction goes from $500 to $600) to persons earning over $120,000 and up to $140,000 whose tax filing status is married filing jointly. For persons filing as head of household, Increases the child deduction amounts under GS 105-153.5(a1) in amounts ranging by a $600 increase (so the deduction goes from $3,000 to $3,600) for persons earning up to $30,000 per year to a $100 increase (so the deduction goes from $500 to $600) to persons earning over $90,000 and up to $105,000. For persons filing as single or as married filing separately, Increases the child deduction amounts under GS 105-153.5(a1) in amounts ranging by a $600 increase (so the deduction goes from $3,000 to $3,600) for persons earning up to $20,000 per year to a $100 increase (so the deduction goes from $500 to $600) to persons earning over $60,000 and up to $70,000. Effective for tax years beginning on or after January 1, 2024.

Part II

Adds new Part 10D, Child Care Stabilization (CCS), to Article 3 of GS Chapter 143B, to stabilize the child care sector, enhance workforce support for child care professionals, and ensure access to quality early childhood education for all families in North Carolina. Creates the CCS Fund (Fund) within the Department of Health and Human Services (DHHS) to be used to provide financial assistance to child care facilities with a focus on supporting low-income families and enhancing wages of child care providers in the State. Designates DHHS to administrate grants from the Fund. Specifies eligibility requirements for child care providers to receive grants from the Fund, including holding a license or being subject to regulation by Division of Child Development and Early Education (Division) on or before March 11, 2021. Adds new GS 143B-168.42 (workforce support and professional development) providing for professional development initiatives for child care providers and requiring that grant recipients use a portion of those funds to increase wages for child care providers with a focus on addressing wage disparities and promoting workforce retention. Requires the Division, in consultation with experts, to develop guidelines and standards to ensure that child care facilities supported by the Fund provide high-quality early childhood education. Requires DHHS to submit an annual report by December 1 of each year to the General Assembly detailing use of the Fund, the impact on child care facilities, and any recommendations for program improvement.

Appropriates $180 million from the General Fund to the Division in recurring funds for the 2024-2025 fiscal year to provide continued funding for CCS grants. Effective July 1, 2024.

Part III

Directs the Division to establish the Child Care Provider Support Program (Program) to provide financial assistance to child care providers in this State. Directs that child care providers, regardless of household income, are eligible for free child care services for their own children while actively employed in a licensed child care facility in North Carolina. Requires the Division to collaborate with licensed child care facilities to implement and monitor the Program. Requires the Division to submit a report to the General Assembly within one year of the Program’s implementation detailing its impact and effectiveness. Appropriates $10 million from the General Fund to the Division in recurring funds for the 2024-2025 fiscal year for the implementation of the Program. Effective July 1, 2024.

Intro. by Smith, Grafstein, Batch.

APPROP, GS 105, GS 143B

Education, Preschool, Government, Budget/Appropriations, State Agencies, Department of Health and Human Services, Tax

S 828 (2023-2024) CHILD PROTECTION &AMP DEEPFAKE PROHIBITION ACT. Filed May 2 2024, AN ACT TO PROHIBIT THE CREATION, POSSESSION, AND DISSEMINATION OF VISUAL REPRESENTATIONS CREATED, ADAPTED, OR MODIFIED BY ANY MEANS TO GIVE THE APPEARANCE THAT A MINOR IS ENGAGED IN SEXUAL ACTIVITY AND TO APPROPRIATE FUNDS TO THE DEPARTMENT OF PUBLIC SAFETY FOR COSTS ASSOCIATED WITH ASSISTING LAW ENFORCEMENT AGENCIES IN ENFORCING THE LAWS AS AMENDED BY THIS ACT.

Amends GS 14-190.16 (first degree sexual exploitation of a minor) to specify that a visual representation depicting a minor engaged in sexual activity includes, for purposes of the statute, a visual representation created, adapted, or modified by any means to give the appearance that a minor is engaged in sexual activity. Amends GS 14-190.17 (second degree sexual exploitation of a minor) be excluding from the statute a minor who records, photographs, films, or develops a visual representation of a minor but does not distribute, exhibit, sell, or exchange it. Applies the same definition of visual representation depicting a minor engaged in sexual activity as set forth above. Amends GS 14-190.17A (third degree sexual exploitation of a minor) to specify that the statute does not apply to a minor who possesses a visual representation of the minor in the nude. Applies the same definition of visual representation depicting a minor engaged in sexual activity as set forth above. Makes technical changes and language gender neutral. Effective December 1, 2024.

Appropriates from the General Fund to the Department of Public Safety $1 million dollars for 2024-2025 fiscal year to be used to assist law enforcement agencies with enforcing the provisions of the act. Effective July 1, 2024.

Intro. by Smith, Batch.

APPROP, GS 14

Courts/Judiciary, Criminal Justice, Criminal Law and Procedure, Government, Budget/Appropriations, State Agencies, Department of Public Safety

S 829 (2023-2024) BRIGHT BEGINNINGS CHILD CARE ACCESS/SUPP. ACT. Filed May 2 2024, AN ACT TO REDUCE PARENT COPAYMENTS FOR SUBSIDIZED CHILD CARE.

Amends Section 9D.3 of SL 2023-134, pertaining to parent cost sharing for subsidized child care, to reduce the basis of the family contribution from 10% of gross family income to 5% of the income. Specifies that it is the General Assembly's intent to allocate a portion of the anticipated increase in funds to the Child Care and Development Fund Block Grant to supplement the funding necessary for the copayment reduction described above. Effective July 1, 2024.

Intro. by Smith, Batch.

UNCODIFIED

Education, Preschool, Government, Budget/Appropriations, Health and Human Services, Social Services, Public Assistance

S 833 (2023-2024) MAIN STREET RESILIENCE ACT. Filed May 2 2024, AN ACT TO PROVIDE INCOME TAX RELIEF TO SMALL BUSINESSES.

Amends GS 105-153.5(b) pertaining to the deductions allowed for adjusted gross income in calculating individual income tax as follows. Allow an individual paying income tax to deduct from the taxpayer's adjusted gross income up to $75,000 of net business income the taxpayer received during the taxable year if the tax payer is a small business. Provides that for a married couple filing jointly, if both spouses receive or incur net business income, the maximum amounts apply separately to each spouse's net business income, not to exceed a total of $150,000. Excludes from business income any income that is considered passive income. Defines small business. Effective for taxable years beginning on or after January 1, 2025.

Intro. by Smith, Batch, Garrett.

Government, Tax

S 837 (2023-2024) MENTAL HEALTH SUPPORT FOR MILITARY VETERANS. Filed May 2 2024, AN ACT RECOGNIZING THE SACRIFICES MADE BY MILITARY VETERANS AND ADDRESSING THE MENTAL HEALTH NEEDS OF MILITARY VETERANS BY ENHANCING MENTAL HEALTH SERVICES, SUPPORT NETWORKS, AND THE OVERALL WELL-BEING OF VETERANS IN THIS STATE.

Appropriates from the General Fund (GF) to the Department of Health and Human Services (DHHS), $50 million in recurring funds for the 2024-2025 fiscal year to be used to implement comprehensive programs to improve mental health services and supports for military veterans that align with successful programs for military veterans implemented in other states, including Texas and Virginia. Of the funds appropriated, directs that at least $20 million in recurring funds must be allocated specifically to the Division of Mental Health, Developmental Disabilities, and Substance Use Services (Division) for programs addressing mental health issues such as posttraumatic stress disorder (PTSD).

Appropriates from the GF to the Division $50 million in recurring funds for the 2024-2025 fiscal year to be used to implement comprehensive programs to improve and expand veteran access to mental health services, including counseling therapy, and specialized programs targeting mental health issues such as PTSD. Directs that the funds be used to enhance existing facilities, hire trained professionals with experience serving military veterans, and to ensure that mental health services are readily accessible to veterans across the State.

Appropriates from the GF to the Department of Military and Veterans Affairs (Department) $5 million in recurring funds for the 2024-2025 fiscal year to be used to provide grants to veterans' organizations in the State to help veterans transition to civilian life and to manage mental health challenges. Specifies that priority for the grants must be given to those organizations that provide tailored assistance to veterans and foster a sense of community among veterans.

Appropriates from the GF to the Division $10 million in recurring funds for the 2024-2025 fiscal year to be used for suicide prevention programs specifically designed for military veterans, including the establishment of a crisis helpline, outreach efforts, and mental health education campaigns. Requires the Division to coordinate with relevant agencies and organizations to ensure the effectiveness of such programs.

Appropriates from the GF to the Department of Commerce $10 million in recurring funds for the 2024-2025 fiscal year to be used to develop programs to help veterans in the State to find gainful employment or start their own business. Specifies program goals and requires the Department of Commerce to collaborate with the Department to develop the programs.

Effective July 1, 2024.

Intro. by Batch, Smith, Garrett.

Government, Budget/Appropriations, State Agencies, Department of Commerce, Department of Health and Human Services, Department of Military & Veterans Affairs, Military and Veteran's Affairs

S 839 (2023-2024) STATE EMPLOYEES/GIVE LEAVE FOR PREGNANCY LOSS. Filed May 2 2024, AN ACT PROVIDING STATE EMPLOYEES WITH PAID LEAVE DURING AND FOLLOWING A PREGNANCY LOSS AND APPROPRIATING FUNDS FOR THAT PURPOSE.

Adds new GS 126-8.7, paid leave for pregnancy loss, requiring the State Human Resources Commission (Commission) to adopt rules and policies to grant a permanent, probationary, or time-limited full-time State employee with paid leave for pregnancy loss, with required elements, including that the leave be at least 56 hours. Defines pregnancy loss to mean a miscarriage, an unsuccessful round of intrauterine insemination or of an assisted reproductive technology procedure, a failed adoption arrangement, a failed surrogacy arrangement, or a diagnosis or event that impacts pregnancy or fertility. Requires the Commission to adopt rules and policies to provide that a permanent, probationary, or time-limited part-time State employee be granted a prorated amount of paid leave for pregnancy loss on an equitable basis. Provides that the leave is available without exhaustion of an employee’s sick or vacation leave and awarded in addition to shared leave, has no cash value upon termination from employment, and may not be used for calculating an employee’s retirement benefits. Applies leave provisions to employees of State agencies, departments, and institutions, including The University of North Carolina; to public school employees; and to community college employees. Requires each governing board to adopt rules and policies regarding this leave that are substantially equivalent to the Commission’s rules required by the act. Effective July 1, 2024, and applies to requests for pregnancy loss occurring on or after that date.

Makes conforming changes to GS 126-5, effective July 1, 2024.

Appropriates $1.8 million from the General Fund to the Reserve for Compensation Increases for the 2024-2025 fiscal year to fund paid leave for pregnancy loss as enacted by this act.

Intro. by Murdock, Applewhite.

APPROP, GS 126

Government, Budget/Appropriations, State Government, State Personnel

S 846 (2023-2024) PROTECT OUR SCHOOLS. Filed May 2 2024, AN ACT DIRECTING THE DEPARTMENT OF TRANSPORTATION TO IDENTIFY SCHOOL WALK ZONES, SETTING LOWER SPEED LIMITS IN SCHOOL WALK ZONES, CREATING AND APPROPRIATING FUNDS TO THE PEDESTRIAN SAFETY ENHANCEMENT FUND, AND INCREASING CRIMINAL PENALTIES FOR INJURING A MINOR IN A CROSSWALK, SCHOOL ZONE, OR SCHOOL WALK ZONE.

Section 1

Adds newly defined term, school walk zone (an area within a school zone, identified by the Department of Motor Vehicles (DMV) that is likely to sustain pedestrian traffic sufficient to render the speed limits designated in GS 20-141 unsafe) to GS 20-4.01 (definitions pertaining to the DMV).

Amends GS 20-141.1 (speed limits in school zones and now, school walk zones) to require the Department of Transportation (DOT) to annually consult with the governing body of each public school unit and certain nonpublic school units to designate school walk zones that include (1) speed limits lower than the general speed limits set forth in GS 20-141 and (2) ensuring appropriate actions are taken to effectuate the reduced speed limit. Makes technical, organizational, and conforming changes. Now specifies that the penalties in this statute apply unless the conduct at issue is covered under some other provision of law providing greater punishment. Makes it Class 3 misdemeanor to drive a motor vehicle in a school zone or school walk zone without due care and resulting in injury to a minor. Amends GS 20-173 (concerning pedestrians’ right-of-way at crosswalks) to specify that, unless covered under some other provision of law providing greater punishment, a person who drives a motor vehicle in a school zone or school walk zone at a speed greater than the speed limit set and posted under this section is responsible for an infraction and is required to pay a penalty of $250; makes it a Class 3 if injury to a minor results. Effective December 1, 2024, and applies to offenses committed on or after that date.

Section 2

Establishes the Pedestrian Safety Enhancement Fund (Fund) as a special fund within DOT to support pedestrian safety initiatives. Appropriates $10 million from the Highway Fund to DOT in nonrecurring funds for fiscal year 2024-25 to be allocated to the Fund for the three purposes and the amounts specified in the act. Effective July 1, 2024.

Intro. by Batch, Smith, Grafstein.

APPROP, GS 20

Courts/Judiciary, Motor Vehicle, Education, Preschool, Elementary and Secondary Education, Government, Budget/Appropriations, State Agencies, Department of Transportation, Transportation

S 852 (2023-2024) NC UNIVERSAL BACKGROUND CHECK ACT. Filed May 2 2024, AN ACT TO REQUIRE UNIVERSAL BACKGROUND CHECKS FOR THE SALE OF FIREARMS AND TO APPROPRIATE NONRECURRING FUNDS TO THE DEPARTMENT OF PUBLIC SAFETY TO CREATE AND DISSEMINATE A PUBLIC SERVICE ANNOUNCEMENT MAKING THE PUBLIC AWARE OF THE LAW REQUIRING BACKGROUND CHECKS FOR THE SALE OF FIREARMS.

Adds new Article 53D, Universal Background Check, to GS Chapter 14, providing as follows. Prohibits a federally licensed firearm dealer from selling, transferring, or delivering a firearm to a private person without conducting a background check that includes verifying the private person's identity by examining a government-issued identification card and conducting a check through the National Instant Criminal Background Check System. Makes it illegal for the following persons to possess a firearm: (1) under an indictment or information for, or has been convicted in any state or in any court of the United States of, a felony (other than an offense pertaining to antitrust violations, unfair trade practices, or restraints of trade); (2) fugitive from justice; (3) unlawful user of or addicted to marijuana or any depressant, stimulant, or narcotic drug; (4) adjudicated mentally incompetent or has been committed to any mental institution; (5) alien illegally or unlawfully in the United States; (6) discharged from the US Armed Forces under dishonorable conditions; (7) has renounced his or her US citizenship; (8) subject to a court order that was issued after a hearing of which the person received actual notice, and at which the person had an opportunity to participate, that restrains the person from harassing, stalking, or threatening an intimate partner or child of the intimate partner, or engaging in other conduct that would place an intimate partner in reasonable fear of bodily injury to the partner or child, and that includes a finding that the person represents a credible threat to the physical safety of the intimate partner or child, or by its terms explicitly prohibits the use, attempted use, or threatened use of physical force against the intimate partner or child that would reasonably be expected to cause bodily injury. Makes it illegal for a federally licensed firearm dealer to sell, transfer, or deliver a firearm to another person if the background check reveals that possession by the person would violate the law or if the dealer knows or has reason to know that the person is prohibited from possessing a firearm. Makes it a Class F felony for a federally licensed firearm dealer to sell, transfer, or deliver a firearm to a person in violation of this Article, or any person to provide materially false information to the dealer with the intent of illegally obtaining a firearm.

Makes it illegal for a private person to transfer a firearm to another without conducting a background check through a federally licensed firearm dealer and the firearm dealer verifying that the transfer is not illegal. Defines transfer. Sets out exceptions for transactions involving specified family members and guardians. Requires a private person transferring a firearm keep a record of the transaction, with required details and to turn that record over to law enforcement agencies upon request. Violations are a Class F felony.

Applies to transfers of firearms occurring on or after October 1, 2024.

Appropriates $50,000 from the General Fund to the Department of Public Safety in nonrecurring funds for the 2024-2025 fiscal year to create and disseminate a public service announcement making the public aware of the act. Effective July 1, 2024.

Intro. by Batch, Garrett, Grafstein.

APPROP, GS 14

Courts/Judiciary, Criminal Justice, Criminal Law and Procedure, Government, Budget/Appropriations, Public Safety and Emergency Management, State Agencies, Department of Public Instruction

S 853 (2023-2024) OPS MORATORIUM/OPS & PESA ACCOUNTABILITY. Filed May 2 2024, AN ACT TO IMPOSE A MORATORIUM ON THE AWARD OF NEW OPPORTUNITY SCHOLARSHIPS AND TO ENACT OTHER ACCOUNTABILITY MEASURES FOR OPPORTUNITY SCHOLARSHIPS AND PERSONAL EDUCATION STUDENT ACCOUNTS.

Identical to H 993, filed 5/2/24.

Part I

Starting with the 2024-2025 fiscal year, directs the State Education Assistance Authority (Authority) to not award any scholarship grant funds under Part 2A of Article 39 of GS Chapter 115C (scholarship grants for children to attend nonpublic schools/Opportunity Scholarships) to new persons who did not receive scholarship grant funds in the prior school year. States the General Assembly’s intent to eliminate the Grants beginning in the 2036-37 fiscal year or once all current recipients become ineligible.

Reenacts GS 115C-562.2(b) (Grant award formulas) and removes new award formula in GS 115C-562.2(b2). Redefines eligible student under GS 115C-562.1, as amended, for a Grant award to requires having received a Grant in the school year prior to the school year for which the student is applying.

Amends GS 115C-562.5 (obligations of nonpublic schools accepting students receiving Grants), as amended, as follows. Requires annual documentation (currently, just requires nonpublic schools to provide documentation) of tuition and fees charged. Now limits increases in tuition in a given year by more than the change in the federal Consumer Price Index that is reported in the calendar year in which the increase would occur. Removes listing of required annual tests and instead requires nonpublic schools to annually administer those tests required by the State Board of Education (Board) for students in grades three or higher, but specifies that school can administer additional tests if it chooses. Requires the school to retain testing date for five years. Allows the Authority to audit the school to ensure compliance with the retention requirement. Makes conforming changes. Exempts test performance data collected by the Authority as a public record to the extent the data contains personally identifiable information. Requires student graduation information provided to the Authority to include four-year graduation cohort rates and specifies that the manner must be consisted with Title I of the Elementary and Secondary Education Act of 1965, as amended and any associated federal regulations (currently just requires graduation rate information in a manner consistent with nationally recognized standard). Requires schools to contract with a CPA to perform audits (currently financial review) for each year the school accepts students receiving $100,000 or more in Grants (current those enrolling 70 more students); if less than $100,000 requires audits every three years. Requires the school to report the audit results by December 31 of the year its conducted. Expands annual information requirements to include the contact information for the owners and chief administrator of the school, attendance records for students receiving Grants, documentation of a completed fire inspection within the past 365 days. Requires schools to educate children with disabilities in line with their IEP, the IDEA, and applicable policies adopted by the Board. Requires compliance with certain requirements of Article 8C of GS Chapter 115C, including adopting a School Risk Management Plan, providing schematic diagrams and keys to local law enforcement, conducting school safety exercises, and providing certain information to the Department of Public Safety, Division of Emergency Management (DPS).  Requires the Authority to post aggregate test performance on its website. Prevents nonpublic schools from discriminating on the basis of disability as defined in the Americans with Disabilities Act. Makes conforming changes.

Amends GS 115C-562.7 (Authority’s reporting requirements) to include its data on nonpublic school compliance with the academic assessments described above in its annual report to the specified NCGA committee. Requires the Authority along with the Department of Public Instruction, to publish certain information for nonpublic schools accepting more than 25 students in any grade whose tuition and fees are paid, in whole or in part, with a Grant.

Amends GS 115C-526.8, as amended, to remove language increasing appropriations to the Opportunity Scholarship Grant Fund Reserve. Reduces annual appropriations to the Grant Reserve in range starting with a reduction from $415,540,000 to $174,236,499 in FY 2025-2026  and ending with a reduction from $520,540,000 to $24,022,254 in FY 2035-2036. Eliminates funding thereafter (currently provides for $520,540,000 in each fiscal year starting in FY 2032-33). Eliminates reporting set forth in Section 8.6i(i) SL 2023-134 and requirement that Authority designate certain national standardized assessments.

Reduces the $354,540,000 appropriated to the Grant Reserve to $180,368,271 for FY 2024-25, effective July 1, 2023.

Part II

Adds new GS 115C-593.5, pertaining to academic assessments in nonpublic schools receiving Grants. Sets forth testing standards in line with the testing provisions set forth above. Requires the tests to be administered to in grades three and higher whose tuition and fees are paid in whole or in part with scholarship funds. Requires the Authority to provide an eligible student’s parent or guardian with an annual written student progress on the tests. Amends the legislative reporting requirements for in GS 115C-598 so that the Authority has to report on a nonpublic schools’ requirements with the academic assessments set forth in GS 115C-593.5.

Effective July 1, 2024, and applies beginning with the 2024-25 school year.

Intro. by Robinson, Blue, Garrett.

GS 115C

Education, Elementary and Secondary Education, Government, Budget/Appropriations

S 861 (2023-2024) REPEAL SERVICE TAX. Filed May 2 2024, AN ACT TO REPEAL THE SERVICE TAX AND TO MAKE VARIOUS CONFORMING CHANGES NECESSARY TO EFFECTUATE THE REPEAL.

Part I.

Amends GS 105-164.4, which imposes a 4.75% privilege tax on retailers by no longer applying the tax to the sales price of or gross receipts derived from (1) repair, maintenance, and installation services to tangible personal property or digital property; (2) service contracts; and (3) repair, maintenance, and installation services for real property.

Amends GS 105-164.4B by removing references to services; specifies that the gross receipts derived from the renewal of a service contract for prewritten software is generally sourced where the purchaser can potentially first make use of the prewritten software.

Amend GS 105-164.4D, concerning bundled transactions, by removing provisions related to bundles that include a service.

Amends GS 105-164.4H, applicable when the consumer is a real property contractor, by removing provisions related to services; removes the provision for the taxation of a mixed transaction contract.

Repeals GS 105-164.4I, concerning taxation of service contracts.

Amends GS 105-164.4J, concerning marketplace-facilitated sales, by removing refences to "service contracts facilitators."

Amends GS 105-164.4K by removing the provisions governing the taxation of services under a property management contract. Makes conforming changes.

Amends GS 105-164.6, complementary use tax, by no longer applying the tax to services.

Amends GS 105-164.11A, by removing references to "cancelled service," to now allow a retailer a refund of sales tax on a rescinded sale only. Makes conforming changes.

Amends GS 105-164.12B, concerning tangible personal property sold below cost as part of a conditional contract, by removing provisions related to service contracts.

Repeals GS 105-164.13A, concerning when a portion of a service charge imposed on food, beverages, or prepared food is exempt from taxation.

Amends GS 105-164.14 by removing provisions related to refunds of taxes paid on service contracts and repair, maintenance, and installation services.

Amends GS 105-164.20 by removing reporting requirements for gross receipts from a retailer selling a service contract.

Amends GS 105-164.26 by removing the presumption related to the evasion of taxes for services.

Amends GS 105-164.27A by removing triggers for the payment of tax under a general direct pay permit related to services, including repair, maintenance, and installation services. Makes conforming changes.

Amends GS 105-187.5 concerning the taxation of the portion of a limited possession commitment billing or payment that represents an amount applicable to the price of a service contract.

Amends GS 105-237.1, concerning when the Secretary of Revenue may compromise a taxpayer’s liability, by removing provisions related to service contracts and repair, maintenance, and installation services.

Amends GS 105-467 by removing the provision related to a refund of sales tax on a rescinded service contract.

Part II.

Amends GS 105-164.13, by removing provisions that exempted the following from sales tax: computer software or digital property service; interior design services; motor vehicle service contracts; repair, maintenance, and installation services and 17 specified types of service contracts; installation charges separately stated on an invoice related to installation charges part of the sales price of tangible personal property purchased by a real property contractor to fulfill a real property contract; installation charges that are part of the sales price of the repair, maintenance, and installation services or installation charges only purchased by a real property contractor to fulfill a real property contract; an item purchased or used to fulfill a service contract if the purchaser is not charged for the item; specified services for a boat, aircraft, or jet engine; towing services; and sales of digital audio work or digital audiovisual work consisting of nontaxable service content.

Amends GS 105-164.13E, concerning farmer exemptions, by removing provisions related to repair, maintenance, and installation services, as well as specified services.

Amends GS 105-164.13F, concerning wildlife manager exemptions, by removing provisions related to repair, maintenance, and installation services, as well as specified services.

Part III.

Amends definitions in GS 105-164.3 applicable to Article 5, Sales and Use Tax, by removing references to services or to repair, maintenance, and installation services in the terms bundled transaction, capital improvement, facilitator, gross sales, item, nonresident retail or wholesale merchant, real property management services, remodeling, remote sale, and sale or selling. Removes the terms mixed transaction contract; repair, maintenance, and installation services; service contract; and service contract facilitator.

Part IV.

Applies to services provided on or after October 1, 2024.

Intro. by Smith, Batch, Garrett.

Business and Commerce, Government, State Agencies, Department of Revenue, Tax

S 862 (2023-2024) TIER ONE COUNTY ASSISTANCE. Filed May 2 2024, AN ACT TO PROVIDE ECONOMIC ASSISTANCE TO TIER ONE COUNTIES.

Titles the act the Economic Development for Tier One Counties Act. Sets forth the act’s findings and purpose. Appropriates $400 million from the General Fund to the Department of Commerce (DOC) in nonrecurring funds for the 2024-25 fiscal year to be used to provide grants to tier one development areas as defined in GS 143B-437.08 for initiatives and projects that promote (1) self-sufficiency, (2) infrastructure improvement, (3) education or (4) workforce development. Allows DOC to spend up to 1% of funding to develop guidelines for the administration of the program that include four required elements. Specifies that the funds do not revert and instead remain available for expenditure for purposes consistent with the act. Caps grant amounts at $10 million. Specifies that if a county receives an award under the program for which it is not eligible, it forfeits the award and is liable for the amounts received. Starting on or before December 1, 2024, requires DOC to submit reports that are at least annual to specified NCGA committees containing four required elements including, total grant funding disbursed, number of county applicants, indicated uses for funding, and he actual uses of fund. Sunsets the reporting requirement when all grant funding has been exhausted. Starting on or before October 1, 2024, requires county recipients to submit reports that are at least annual to DOC to include county uses of grant funding, total balance of unspent grant funding, and any other information DOC deems necessary.

Contains severability clause.

Intro. by Smith, Batch, Garrett.

Development, Land Use and Housing, Community and Economic Development, Government, Budget/Appropriations, State Agencies, Department of Commerce, Local Government

S 877 (2023-2024) GREATER ACCESS TO FERTILITY MEDICATION. Filed May 2 2024, AN ACT TO INCREASE ACCESS TO FERTILITY MEDICATION UNDER CERTAIN HEALTH BENEFIT PLANS THAT OFFER FERTILITY TREATMENT COVERAGE AND UNDER THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES.

Adds new GS 58-3-241 (pertaining to fertility treatment coverage), as follows. Defines experimental fertility procedure, fertility treatment, and insurer. Directs that, if health benefit plan provides fertility treatment coverage then (1) any limitation on coverage for ovulation medication cannot be different than the limits imposed on other prescription medications and (2) no annual or lifetime limits may apply to the coverage for ovulation medication and in-network ovulation induction cycles. Specifies that GS 58-3-241 cannot be construed to required coverage for fertility treatment or experimental fertility procedures under a health benefit plan. Applies to insurance contracts issued, renewed or amended on or after October 1, 2024. Requires the Board of Trustees for the State Health Plan for Teachers and State Employees to modify the plan’s provisions pertaining to ovulation medication and ovulation induction so that they mirror the provisions set forth above, effective January 1, 2025.

Appropriates $2.5 million from the General Fund to the Department of Insurance to implement the coverage provisions for insurance plans that are not the state health plan, including education campaigns directed toward consumers or insurers about the coverage changes, effective July 1, 2024.

Intro. by Murdock, Bode.

Government, Budget/Appropriations, State Agencies, Department of Insurance, Health and Human Services, Health, Health Insurance

S 882 (2023-2024) INSURANCE CONSUMER PROTECTION STUDY. Filed May 2 2024, AN ACT DIRECTING THE DEPARTMENT OF INSURANCE TO STUDY THE USE OF CONSENT TO DEVIATIONS BY INSURERS TO CHARGE CONSUMERS IN EXCESS OF THE MAXIMUM RATE THAT IS APPLICABLE IN NORTH CAROLINA AS APPROVED BY THE COMMISSIONER OF INSURANCE AND TO REPORT FINDINGS AND RECOMMENDATIONS TO IMPROVE CONSUMER PROTECTION AND TRANSPARENCY TO LEGISLATIVE OVERSIGHT COMMITTEES.

Requires the Department of Insurance (DOI) to study the implementation of deviations from the rates, rating plans, classifications, schedules, rules, and standards (consent to rate (CTR) deviations) as authorized by GS 58-36-30, and to include seven required pieces of information with respect to the 2023-2024 fiscal year, including the total number of policies subject to a CTR deviation, the criteria NC insurance companies use to determine which consumers are subject to a CTR deviation, and a summary of the demographics, including geographic information of those consumers charged a rate higher than the maximum permissible rate. Requires DOI to conduct a detailed legal and actuarial analysis of the validity of the approved rate cap set by the Commissioner of Insurance (including any rate set by settlement of contested rate filings) on homeowners insurance rates when data regarding CTR deviations are not relied upon or included in determining the rate cap and whether such data should be included in determining the rate cap. Requires DOI to report its findings, including any recommended legislation, by July 1, 2025 to the specified NCGA committees. Appropriates $50,000 from the General Fund to DOI for the 2024-2025 fiscal year to conduct the study required by the act. Effective July 1, 2024.

Intro. by Marcus, Meyer.

APPROP, STUDY

Government, Budget/Appropriations, State Agencies, Department of Insurance

S 884 (2023-2024) FUNDS/WATER FILTRATION GRANTS. Filed May 2 2024, AN ACT TO PROVIDE FUNDS TO PROVIDE SAFE DRINKING WATER TO LOW INCOME HOUSEHOLDS IN THE NEUSE AND CAPE FEAR RIVER BASINS.

Appropriates $2.5 million in nonrecurring funds for the 204-2025 fiscal year from the General Fund to the Department of Environmental Quality for the Bernard Allen Memorial Emergency Drinking Water Fund established by GS 87-98. Specifies that notwithstanding any provisions of GS 87-98 to the contrary, that the funds will be used to provide water filtration systems (defined) to households with incomes at 150% or less of the current federal poverty level and that are located in the Neuse or Cape Fear river basins. Effective July 1, 2024.

Intro. by Sawrey.

Government, Budget/Appropriations, State Agencies, Department of Environmental Quality (formerly DENR), Health and Human Services, Health, Public Health

S 885 (2023-2024) PARENTAGE PROTECTION FOR FAMILIES. Filed May 2 2024, AN ACT TO ESTABLISH AND ALLOW THE USE OF ASSISTED REPRODUCTION, SURROGACY, AND ASSOCIATED AGREEMENTS AND RELATIONSHIPS, AND TO APPROPRIATE FUNDS TO PROVIDE EDUCATION AND TRAINING RELATED TO THIS ACT.

Retitles GS Chapter 49A to Assisted Reproduction and Surrogacy Agreements (currently titled Rights of Children). Adds new Article to GS Chapter 49A, Assisted Reproduction, providing as follows. Specifies that the article does not does not apply to the birth of a child conceived by sexual intercourse or assisted reproduction under a surrogacy agreement under GS Chapter 49A, Article 3. Defines eight terms, including assisted reproduction (a method of causing pregnancy other than sexual intercourse, including intrauterine or intracervical insemination, donation of gametes or embryos, in-vitro fertilization and transfer of embryos, and intracytoplasmic sperm injection). Specifies that a donor is not a parent of a child conceived by assisted production and that an individual who consents under the article to assisted reproduction by a woman with the intent to be a parent of a child conceived by the assisted reproduction is a parent of the child. Directs that the consent must be in a record signed by the woman giving birth to a child conceived by assisted reproduction and an individual who intends to be the parent of the child. Allows a court to find that a person consented to parentage in the absence of such signed consent if either: (1) the woman or the individual proves by clear and convincing evidence the existence of an express agreement entered into before conception that the individual and the woman intended they both would be parents of the child or (2) the woman and the individual for the first two years of the child's life, including any period of temporary absence, resided together in the same household with the child and both openly held out the child as the individual's child, unless the individual dies or becomes incapacitated before the child attains two years of age or the child dies before the child attains two years of age, in which case the court may find consent to parentage if a party proves by clear and convincing evidence that the woman and the individual intended to reside together in the same household with the child and both intended the individual would openly hold out the child as the individual's child, but the individual was prevented from carrying out that intent by death or incapacity.

Limits a spouse’s ability to challenge their parentage of a child by assisted reproduction of a child born of the marriage unless both of the following are satisfied: (1) not later than two years after the birth of the child, the individual commences a proceeding to adjudicate the individual's parentage of the child and(2) the court finds the individual did not consent to the assisted reproduction, before, on, or after the birth of the child, or withdrew consent under Article 49A. Sets forth three circumstances that would warrant initiating a parentage proceeding of a child born of the marriage by assisted reproduction and involving the spouse’s parentage at any time. Applies to a spouse's dispute of parentage even if the spouse's marriage invalid after assisted reproduction occurs.

Provides that if the marriage ends or the couple legally separates before the transfer of gametes or embryos to the woman, then the former spouse is not the parent of the child, unless the former spouse consent to parentage if the assisted reproduction were to occur after separation or the end of the marriage, and the spouse did not withdraw consent.

Allows for a person to withdraw consent any time before a transfer that results in a pregnancy, by giving notice in a record of the withdrawal of consent to the woman who agreed to give birth to a child conceived by assisted reproduction and to any clinic or healthcare provider facilitating the assisted reproduction. Failure to give notice to the clinic or healthcare provider does not affect a determination of parentage under the act. Specifies that an individual who withdraws consent is not the parent of the child. Allows for a person who dies during the period between the transfer of a gamete or embryo and the birth of the child to be considered the child’s parent if both are satisfied: (1) the individual consented in a record that if assisted reproduction were to occur after the death of the individual, the individual would be a parent of the child or the individual's intent to be a parent of a child conceived by assisted reproduction after the individual's death is established by clear and convincing evidence and (2) the embryo is in utero not later than 36 months after the individual's death or the child is born not later than 45 months after the individual's death.

Adds new Article 3, Surrogacy Agreement Act to GS Chapter 49A. Defines three terms, including surrogacy agreement (an agreement between one or more intended parents and a woman who is not an intended parent in which the woman agrees to become pregnant through assisted reproduction and which provides that each intended parent is a parent of a child conceived under the agreement. Unless otherwise specified, the term refers to both a gestational surrogacy agreement and a genetic surrogacy agreement).

Adds new GS 49A-22, pertaining to eligibility to enter gestational or genetic surrogacy agreements. Lists five requirements for a woman to act as a gestational or genetic surrogate, including that she be at least 21 years of age and that she have independent legal counsel of her choice. Lists four requirements for each intended parent to complete a surrogacy agreement, whether or not genetically related to the child, including that they are 21 years of age and have independent legal representation of their choice. Provides for a process with nine required components for gestational or genetic surrogacy agreements. Lists eight required components of any gestational or genetic surrogacy agreements, including permitting the surrogate to make all health and welfare decisions regarding herself and her pregnancy.  Allows for a surrogacy agreement may provide for (i) payment of consideration and reasonable expenses and (ii) reimbursement of expenses if the agreement is terminated.  Specifies that a right created under a surrogacy agreement is not assignable and there is no third-party beneficiary of the agreement other than the child.

Directs in new GS 49A-25, that, unless a surrogacy agreement expressly provides otherwise (i) the marriage of a surrogate or intended parent after the agreement is signed by all parties does not affect the validity of the agreement, the spouse's consent to the agreement is not required, and the spouse is not a presumed parent of a child conceived by assisted reproduction under the agreement and (ii) the divorce or annulment, legal separation, or declaration that the marriage of the surrogate/intended parent is void after the agreement signed by all parties does not affect the validity of the agreement.

Provides for jurisdiction and records protections for court proceedings related to a surrogacy agreement in GS 49A-26.

Allows a party to a gestational surrogacy agreement to terminate the agreement, at any time before an embryo transfer, by giving notice of termination in a record to all other parties. If an embryo transfer does not result in a pregnancy, a party may terminate the agreement at any time before a subsequent embryo transfer. Provides for the effect of termination, and a bar on liquidated damages except in cases involving fraud.

Provides for rules of parentage under a gestational surrogacy agreement in GS 49A-28. Specifies that each intended parent is the parent of a child born to a gestational surrogate under a gestational surrogacy agreement. Further specifies that this applies to an intended parent even if the intended parent died during the period between the transfer of a gamete or embryo and the birth of the child.

Directs that for those instances where due to a clinical or laboratory error, a child conceived by assisted reproduction under a gestational surrogacy agreement is not genetically related to an intended parent or a donor who donated to the intended parent or parents, each intended parent, and not the gestational surrogate and the surrogate's spouse or former spouse, if any, is a parent of the child, subject to any other claim of parentage. Requires genetic testing if the child is alleged to be the genetic child of the surrogate and a determination of parentage if the child is genetically hers.  Directs that otherwise, neither the surrogate or her current or former spouse is the parent of the child.

Directs in GS 49A-29 that an intended parent is not a parent of a child conceived by assisted reproduction under a gestational surrogacy agreement if the intended parent dies before the transfer of a gamete or embryo unless (i) the agreement provides otherwise and (ii) the transfer of a gamete or embryo occurs not later than 36 months after the death of the intended parent or the birth of the child occurs not later than 45 months after the death of the intended parent.

Provides for a gestational surrogacy agreement order of parentage in GS 49A-30.

Specifies that a gestational surrogacy agreement that complies with GS Chapter 49A, new Article 3 is enforceable and lists out effects of such agreement in GS 49A-31, including (1) requiring a court to determine the rights and duties of the parties to an agreement that does not comply with Article 3 that is consistent with the intent of the parties at the time of execution of the agreement, with rules of standing for such an action, (2) providing for remedies in law or in equity for breach of a gestational surrogacy agreement that complies with GS 49A, new Article 3, (3) detailing when specific performance is available. Lists three requirements in GS 49A-32 to validate a genetic surrogacy agreement, including that it generally be validated by a legal proceeding.

Provides for a process for termination by notice of a genetic surrogacy agreement in GS 49A-33, including by a genetic surrogate within 72 hours after the birth of child conceived by assisted reproduction.

Provides for rules of parentage for genetic surrogacy, including that unless the genetic surrogate terminates the agreement, each intended parent is a parent of the child conceived. Provides for requirements of court order of parentage. Directs that if the genetic surrogate terminates the agreement, parentage must determined. Provides for genetic testing by court order if the child is alleged to not have been conceived by assisted reproduction. Provides that unless a genetic surrogate exercises the right under to terminate the genetic surrogacy agreement, if an intended parent fails to file notice of termination of the genetic surrogacy agreement required, the genetic surrogate or the appropriate State agency may file with the court, not later than 60 days after the birth of a child conceived by assisted reproduction under the agreement, notice that the child has been born to the genetic surrogate. Unless the genetic surrogate has properly exercised the right to withdraw consent to the agreement, on proof of a court order issued validating the agreement, the court must order that each intended parent is a parent of the child. Provides for the effect of a non-validated genetic surrogacy agreement under GS 49A-35, including allowing a court to validate such agreements after assisted reproduction has occurred but before the birth of the child conceived, so long as all parties agree. Provides rules for breach of a genetic surrogacy agreement.

Effective July 1, 2024, appropriates $10,000 from the General Fund to the Department of Health and Human Services for the 2024-2025 fiscal year to fund education and training related to the provisions of the act.

Contains severability clause.

Otherwise effective October 1, 2024, and applies to assisted reproduction and surrogacy agreements arising on or after that date.

Intro. by Batch, Murdock, Mohammed.

APPROP, GS 49A

Courts/Judiciary, Civil, Family Law, Government, Budget/Appropriations, State Agencies, Department of Health and Human Services

S 890 (2023-2024) HATE CRIMES PREVENTION ACT. Filed May 2 2024, AN ACT TO INCREASE THE SCOPE AND PUNISHMENT OF HATE CRIMES; TO REQUIRE THE STATE BUREAU OF INVESTIGATION TO CREATE AND MAINTAIN A HATE CRIMES STATISTICS DATABASE; AND TO REQUIRE THE NORTH CAROLINA CRIMINAL JUSTICE EDUCATION AND TRAINING STANDARDS COMMISSION AND THE NORTH CAROLINA SHERIFFS' EDUCATION AND TRAINING STANDARDS COMMISSION TO DEVELOP AND PROVIDE LAW ENFORCEMENT OFFICERS WITH TRAINING ON IDENTIFYING, RESPONDING TO, AND REPORTING HATE CRIMES.

Part I.

Entitles this act “The Hate Crimes Prevention Act.”

Part II.

Amends GS 14-3 by expanding the categories under which a crime will be elevated to a higher level offense as a hate crime under subsection (c) to include crimes committed because of the actual or perceived race, ethnicity, color, religion, nationality, country of origin, gender, gender identity, gender expression, disability, or sexual orientation of the victim or a person or group associated with the victim (previously did not specify actual or perceived characteristics included and was limited to race, color, religion, nationality, or country of origin). Class 2 or Class 3 misdemeanors committed for these reasons will be elevated to a Class 1 misdemeanor. Class A1 or Class 1 misdemeanors committed for these reasons will be elevated to a Class H felony. Adds new subsection (d), permitting a person who is injured or whose property is damaged as a result of a hate crime as defined in subsection (c) or an immediate family member of that person to bring an action for appropriate relief, including actual damages, punitive damages, reasonable attorneys’ fees, and any other litigation costs reasonably incurred. Deems the burden of proof to be the same as in other civil actions for similar relief. Actual damages under this subsection includes damages for emotional distress. Makes conforming changes to the statute's caption. Adds a new subsection (e), authorizing the ordering of a person convicted of or who has pleaded no contest to having engaged in conduct in violation of subsection (c) to participate in a restorative justice session with the victim at the victim's request, to be conducted as specified at the cost of the defendant.

Amends GS 14-401.14, changing the title to Intimidation by hate crime; teaching any technique to be used in the commission of a hate crime. Expands the categories covering hate crime identical to the above changes to GS 14-3. Adds new subsection (c), allowing for the person who is injured or whose property is damaged as a result of a hate crime or their immediate family member to seek civil damages, identical to the above changes to GS 14-3. Deems the burden of proof to be the same as in other civil actions for similar relief. Adds new subsection (d), authorizing ordering a person convicted of or who has pleaded no contest to having engaged in conduct in violation of subsection (a) to participate in a restorative justice session with the victim at the victim's request, to be conducted as specified at the cost of the defendant. Includes gender-neutral pronoun change.

Amends GS 15A-1340.16(d)(17), expanding the definition of an aggravating factor identical to the above definition of hate crime.

Amends GS Chapter 14, Article 8, adding new GS 14-34.11, titled Felonious assault as a hate crime. Creates the crime felonious assault as a hate crime, defined as assaulting and inflicting serious bodily injury or attempting an assault inflicting serious bodily injury because of, in whole or in part, the actual or perceived race, ethnicity, color, religion, nationality, country of origin, gender, gender identity, gender expression, disability, or sexual orientation of that person or a person or group associated with that person. Punishable as a Class F felony, elevated to a Class E felony if death results from the offense, or the offense includes the commission or attempted commission of kidnapping, first- or second-degree forcible rape, or first- or second-degree forcible sexual offense. Permits the person injured or whose property is damaged as a result of a hate crime or the person's immediate family to seek civil damages, identical to the above changes to GS 14-3. Deems the burden of proof to be the same as in other civil actions for similar relief. Authorizes ordering a person convicted of or who has pleaded no contest to having engaged in conduct in violation of subsection (b) to participate in a restorative justice session with the victim at the victim's request, to be conducted as specified at the cost of the defendant. Defines gender identity as actual or perceived gender-related characteristics.

This Part becomes effective December 1, 2024, and applies to offenses committed on or after that date.

Part III.

Amends GS Chapter 143B, Article 13, enacting new GS 143B-907, titled Hate crime statistics. Directs the State Bureau of Investigation (SBI) to collect, analyze, and disseminate information regarding the commission of offenses punishable under GS 14-3(c), 14-401.14, or 14.34.11. This information must include the total number of offenses committed for each type, personal protected characteristics of the offender and victim from each offense, and the disposition of each offense. Requires all State and local law enforcement agencies to report monthly to the SBI on offenses committed in their jurisdictions that meet the criteria for a hate crime. Requires the SBI to report to the General Assembly on a yearly basis on the information gathered. The SBI must also publish this report on its website. Requires the SBI to share any information collected under this section upon request of any local law enforcement agency, unit of local government, or State agency. Effective January 1, 2025.

Directs the SBI to develop guidelines for the information on hate crimes required to be submitted by local law enforcement agencies. Requires the first report by the SBI to the General Assembly to be submitted by January 15, 2026.

Appropriates $1.89 million in nonrecurring funds for the 2024-25 fiscal year from the General Fund to the SBI to cover any costs incurred in establishing the hate crime statistics database. Appropriates $530,000 in recurring funds for the 2024-25 fiscal year from the General Fund to the SBI to hire an additional employee to manage the database.

Effective July 1, 2024.

Part IV.

Amends GS 17C-2 (definitions pertaining to the North Carolina Criminal Justice Education and Training Standards Commission [Commission]) and GS 17E-2 (definitions pertaining to the North Carolina Sheriffs' Education and Training Standards Commission [Sheriffs’ Commission]), defining hate crime as an offense committed, in whole or in part, because of the actual or perceived race, ethnicity, color, religion, nationality, country of origin, gender, gender identity, gender expression, disability, or sexual orientation of the victim or a person or group associated with the victim. Adds new GS 17C-10.2 (Commission) and new GS 17E-7.1 (Sheriffs’ Commission), requiring each Commission to provide training for criminal justice officers on identifying, responding to, and reporting hate crimes. Lists seven required components of the training. Requires that criminal justice officers complete the training within one year from the date of hire and annually thereafter. Requires annual reports beginning March 1, 2025, from criminal justice agencies to each Commission pertaining to officers completing the training. Allows for persons injured or whose property is damages as a result of failure to complete the above training to bring a civil action to recover appropriate relief including attorneys’ fees and punitive damages, effective October 1, 2024, and applying to violations committed on or after that date. Requires both commissions to adopt any rules necessary to implement the above.

Effective July 1, 2024.

Part V.

Except as otherwise provided, this act is effective when it becomes law.

Intro. by Batch, Garrett, Grafstein.

APPROP, GS 14, GS 15A, GS 17C, GS 17E, GS 143B

Courts/Judiciary, Criminal Justice, Criminal Law and Procedure, Government, Budget/Appropriations, Public Safety and Emergency Management, State Agencies, Department of Justice

S 893 (2023-2024) GUARDING FREEDOMS &AMP PUBLIC SAFETY ACT. Filed May 2 2024, AN ACT TO EXEMPT FIREARM SAFETY AND STORAGE ITEMS FROM THE SALES TAX AND TO INCREASE THE PUNISHMENT FOR POSSESSING, CARRYING, OR HAVING ACCESS TO A FIREARM IN A PROHIBITED AREA.

Section 1

Amends GS 105-164.13, adding firearm safety equipment to the state and local sales tax exemptions imposed under Article 5. Adds and defines firearm safety equipment under Article 5 as an enclosure or device that is intended to prevent access to, or unintentional use or unauthorized use of, a firearm; excludes enclosures or devices that are part of the design of the firearm. Effective October 1, 2024, and applies to sales made on or after that date.

Section 2

Amends punishments under GS 14-269.2 (weapons on campus or educational property) making it a Class H felony (currently, Class I felony) for a person to (1) knowingly possess or carry, whether openly or concealed, any gun, rifle, pistol, or other firearm of any kind on educational property or to a curricular or extracurricular activity sponsored by a school or (2) to cause, encourage, or aid a minor who is less than 18 years old to possess or carry, whether openly or concealed, any gun, rifle, pistol, or other firearm of any kind on educational property. Upgrades the punishment for a person willfully discharging any kind of firearm on educational property to a Class E felony (currently, Class F felony). Upgrades the punishment for certain nonstudents possessing or carrying firearms on educational property from a Class 1 misdemeanor to a Class I felony rather than a Class H (was Class I) felony. Increases the punishment in GS 14-269.4 (weapons on certain State property and in courthouses) to Class I felonies for violations involving the carrying or possessing of a firearm. Amends GS 14-415.21 (punishment for violations of Article 54b, pertaining to concealed handgun permits, in GS Chapter 14) to increase the punishment for carrying a concealed handgun without a permit in their possession or who fails to disclose the existence of the permit and that they are carrying a concealed handgun to law enforcement to a Class I felony (currently listed as an infraction with a fine of up to $500). Increases the punishment for a person willfully or intentionally possessing or having access to firearm who is participating in, affiliated with, or present as a spectator at any parade, funeral procession, picket line, or demonstration upon any private health care facility or upon any public place owned or under the control of the State or any of its political subdivisions to a Class I felony (currently Class 1 misdemeanor). Increases the punishment for a person carrying any gun, rifle, or pistol into any assembly where a fee has been charged for admission thereto, or into any establishment in which alcoholic beverages are sold and consumed to a Class I felony (currently, Class 1 misdemeanor).

Applies to offenses committed on or after October 1, 2024.

Section 3

Effective October 1, 2024.

Intro. by Batch, Garrett.

GS 14

Courts/Judiciary, Criminal Justice, Criminal Law and Procedure, Government, Public Safety and Emergency Management

S 894 (2023-2024) REVISE LAW ON SALE &AMP RESALE OF TICKETS. Filed May 2 2024, AN ACT TO REVISE THE LAWS GOVERNING THE SALE, RESALE, AND OFFER FOR SALE OR RESALE OF ADMISSION TICKETS.

Amends GS 14-344.1, so that it now pertains to the internet resale of admission tickets (currently, pertains to internet sale of tickets at greater than the printed price). Specifies, that except as provided by the statute, the total price at which a person may resell an admission ticket on the internet cannot exceed the sum of the total price of the initial ticket, including all fees and taxes in connection with the initial ticket. Directs that if the initial tickets were purchased for a series of events, such as season tickets for a sports team, the total resale price of a ticket for a single event cannot exceed the total price of a comparable ticket, including all fees and taxes. Requires the listing of the ticket and each step of the transaction to comply with GS 13-344.1A, below. Removes provisions allowing venues to prevent resales of tickets at greater than the printed price and makes conforming changes. Limits a website’s service fee for reselling the ticket to 10% of the total price of the initial ticket. Requires ticket resellers to provide the initial ticket issuer with their contact information, to enable the issuer to notify the resale ticket purchaser of any changes of event circumstances.

Prohibits the sale of speculative tickets. Prohibits persons from prohibiting or restricting the transfer or resale of a ticket made available to the general public for purchase, subject to reasonable restrictions imposed by the person who, directly or indirectly, issued the original ticket for the event. Makes it unlawful for a website to enable the resale of a ticket in violation of the statute.

Adds new GS 14-344.1A, requiring three prongs of information to be included on each step of the transaction to purchase a ticket sold on the internet (GS 14-344.1) or in excess of the printed price that are not sold online (GS 14-344). Makes failure to do so a Class 2 misdemeanor.

Effective December 1, 2024, and apply to tickets sold, resold, or offered for sale or resale on or after that date.

Appropriates $100,000 from the General Fund to the Department of Commerce in nonrecurring funds for the 2024-25 fiscal year to increase public awareness about the revisions to the law caused by the act. Specifies that prosecutions for offenses before the effective date of the act are not abated or affected by the act, and the statutes that would be applicable but for the act remain applicable to those prosecutions. Effective July 1, 2024.

Intro. by Garrett, Batch, Chaudhuri.

APPROP, GS 14

Business and Commerce, Courts/Judiciary, Criminal Justice, Criminal Law and Procedure, Government, Budget/Appropriations, State Agencies, Department of Commerce

S 896 (2023-2024) INVESTING IN NORTH CAROLINA ACT. Filed May 2 2024, AN ACT TO APPROPRIATE FUNDS TO RAISE SALARIES FOR TEACHERS, STATE EMPLOYEES, COMMUNITY COLLEGE EMPLOYEES, AND EMPLOYEES OF THE UNIVERSITY OF NORTH CAROLINA; TO PROVIDE A COST-OF-LIVING INCREASE FOR RETIREES; TO EXPAND THE WAGE$ PROGRAM STATEWIDE; AND TO CREATE A TAX CREDIT FOR QUALIFYING EMPLOYERS EQUAL TO THE LESSER OF FIVE PERCENT OF WAGES PAID TO EMPLOYEES DURING THE TAXABLE YEAR OR TEN THOUSAND DOLLARS.

Part I.

Sets a monthly teacher salary schedule for "A" teachers for 2024-25 for licensed public school personnel classified as teachers, based on years of experience, ranging from $4,600 for teachers with 0 years of experience to $6,370 for 29 or more years of experience. Provides for a 12% salary supplement for licensed teachers who have National Board for Professional Teaching Standards certification; a 10% salary supplement for licensed teachers classified as "M" teachers; a $126 salary supplement for licensed teachers with licensure based on academic preparation at the six-year degree level, in addition to the "M" teachers salary supplement; a $253 salary supplement for licensed teachers with licensure based on academic preparation at the doctoral degree level, in addition to the "M" teachers salary supplement; a 10% salary supplement for certified school nurses; and a $100 salary supplement for school counselors who are licensed as counselors at the master’s degree level or higher.

Requires that the first step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher, must be equivalent to the sixth step of the "A" salary schedule. Provides for a 10% and $500 salary supplement. Deems these employees eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year degree level or the doctoral degree level. Requires that the twenty-sixth step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher must be 7.5% higher than the salary received by these same employees on the twenty-fifth step of the salary schedule. Provides that in lieu of the amounts of annual longevity payments to teachers paid on the teacher salary schedule, beginning with the 2014-15 fiscal year, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.

Details teacher compensation for the 2024-25 school year based on either (1) the applicable salary schedule; (2) the sum of the salary the teacher received in 2013-14, longevity pay for the 2013-14 school year, and annual bonus provided in SL 2014-100; or (3) the sum of the salary and annual bonus the teacher received in the 2014-15 school year, with the compensation amount determined to be equal to the greater of those amounts. Provides that teacher includes instructional support personnel. Appropriates $866,255,297 in recurring funds for 2024-25 from the General Fund to the Department of Public Instruction (DPI) to increase salaries for teachers and support personnel.

Part II.

Raises salaries for certain individuals whose salaries are (1) set/authorized in this Part under the State Human Resources Act (SHRA) and (2) who are employed in a state-funded position on June 30, 2024, by 3% effective July 1, 2024, in addition to any other raises permitted by law. Allows for permanent part-time employees to receive the increase on a prorated and equitable basis. Specifies that no eligible State-funded employee will be prohibited from receiving the full salary increase solely because the employee’s salary after applying the 5% increase would be above the maximum of the salary range prescribed by the State Human Resources Commission (SHRC). Exempts employees of local boards of education, local community college employees, employees of The University of North Carolina, clerks of superior court compensated under GS 7A-101, certain correctional employees covered by the act, certain law enforcement officers covered by the act, certain probation and parole officers covered by the act, and employees of schools operated by the Department of Health and Human Services (DHHS), the Department of Public Safety (DPS), and the State Board of Education (Board) who are paid based on the Teacher Salary Schedule.

Authorizes state agencies to use the funding allotted to them from the Receipt-Supported Cost-of-Living Adjustment (COLA) Reserve to fundshift a limited number of receipt-supported positions in the General Fund to net appropriation funding.

Replaces references to “longevity pay” in GS Chapter 126 with “retention pay.” Sets retention pay provided to employees who are full-time or over half-time and have a permanent, time-limited or probationary appointment and who are in pay status for one-half of the regularly scheduled workdays and holidays in a pay period ranging from 1% for those employees with two years but less than five years of service to 4.5% for those employees with 25 or more years of service.

Provides for retention bonuses for the 2024-25 fiscal year as follows: (1) the school personnel described in Part I who are SHRA employees and continuously employed by the State or a public school unit from November 1, 2023 to March 31, 2024, a retention bonus of $500 paid during May 2024; and (2) all permanent full-time State employees and local education employees who are employed by the State or a public school unit from November 1, 2023, to March 31, 2024, and who earn an annual salary that does not exceed $75,000 must be paid an additional retention bonus of $250 paid during May 2024 by employers of State employees and local education employees. Specifies that the funds appropriated for retention bonuses in excess of the amounts required to implement these bonuses will revert and not be credited to the Pay Plan Reserve. Specifies how bonuses are to be paid and treated in terms of whether they are categorized as salary.

Requires the State Board of Community Colleges to provide community college faculty and non-faculty personnel with a 3% across-the-board increase, effective July 1, 2024.

For the UNC system, directs that SHRA employee salaries will be increased as provided by this act. Authorizes the UNC Board of Governors to provided EHRA employees a salary increase pursuant to policies adopted by the board for one or more of the following purposes: merit pay, across-the-board increases, recruitment bonuses, retention increases, and other compensation increase pursuant to those policies. Requires the Board of Governors to report on the use of compensation to the General Assembly by October 1, 2024.

Requires correctional officers in the Department of Adult Correction to be compensated at a specify pay rate on the basis of a salary schedule based on years of experience. Also requires employees in the Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention to be compensated at a specific pay rate based on years of experience; sets out the salary schedule to be used based on type of position. Sets out the annual salary schedule for correctional officers, based on experience and job class, for 2024-25 ranging from $38,717 for correctional officers classified as COI with 0 years of experience to $55,653 for correctional officers classified as COIII with six or more years of experience.

Sets an annual salary schedule based on the officer's respective work experience, based on experience and job class, for law enforcement officers of Alcohol Law Enforcement, and the State Bureau of Investigation compensated pursuant to an experience-based salary schedule for 2024-2025 ranging from $55,081 for those with 0 years experience and $80,374 for those with 6 years or more of experience.

Sets an annual salary schedule based on the officer's respective work experience, based on experience and job class, for law enforcement officers of the State Highway Patrol pursuant to an experience-based salary schedule for the 2024-25 ranging from $56,650 for those with 0 years experience and $82,660 for those with 6 years or more of experience.

Sets an annual salary schedule for probation and parole officers, based on experience, for 2024-25 ranging from $46,745 for officers with 0 years experience to $68,209 for officers with 6 years or more of experience. Requires Juvenile Court Counselors working in the Division of Juvenile Justice and Delinquency Prevention to also be paid on this salary schedule.

Specifies that employees of the schools operated by DHHS, DPS, and the Board who are paid on the Teacher Salary Schedule will be paid as authorized by the act and that employees of the School of Science and Mathematics of The University of North Carolina who are paid pursuant to a salary schedule adopted by the North Carolina School of Science and Mathematics Board of Trustees will be paid in accordance with the schedule adopted by that board.

Specifies that the COLAs authorized by the act will be paid on July 1, 2024, and does not apply to persons who separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to June 30, 2024. Provides for flexibility by the Director of the Budget (Director) to administer the act. Sets forth provisions related to the effective dates of State employer contribution rates for administrative purposes. Applies to all employees paid from state funds, including employees of public schools, community colleges, and UNC.

Provides that the annual salaries in effect for the following on June 30, 2024, must be legislatively increased as provided in Section 2.1 of the act, unless another requirement applies under other provisions of the act: permanent, full-time State officials and persons whose salaries are set in accordance with the SHRA; permanent, full-time State officials and persons in positions exempt from the SHRA; permanent, part-time State employees; and temporary and permanent hourly State employees.

Bars state agencies from using funds for salary increases for any other purpose. Requires the Office of Budget and Management (OMB) to ensure the appropriations are being used appropriately. Specifies that funds appropriated for COLAs and employee benefit increases cannot be used to adjust the budgeted salaries of vacant positions or to provide salary increases in excess of those required by the General Assembly except to increase the budgeted salary of any position to the minimum of the position's salary range and to meet retention pay needs. Authorizes the Director to reallocate funds if they find the funds are being used for other purposes. Specifies that the funds appropriated for COLA and employee benefit increases in excess of the amounts required will be credited to the Pay Plan Reserve. Requires OMB to report to the specified NCGA committee by no later than October 1, 2024, on the expenditure of funds for legislatively mandated salary increases and employee benefits with four specified matters that must be addressed.

Amends Section 39.26 of SL 2023-134 by increasing the State’s employer contribution rates for teachers and state employees, state law enforcement officers, the University and Community Colleges Optional Retirement Programs, the Consolidated Judicial Retirement System, and the Legislative Retirement System.

Amends GS 135-5 (pertaining to benefits under TSERS), GS 135-65 (post retirement increases under CJRS), GS 120-4.22A (post retirement increases under LRS) as follows. Effective July 4, 2024, provides for a 2% COLA for certain beneficiaries who retired on or before July 1, 2023, and for employees who retired after July 1, 2023 and before June 30, 2024. Provides for proration. After September 1, 2024, but on or before October 31, 2024, provides for a one-time 1% COLA supplement payment will be paid on or behalf of living beneficiaries whose retirement began on or before September 1, 2024. Does not allow for proration. Sets forth provisions related to payment if the beneficiary dies before payment is made. Specifies that no beneficiary will be deemed to have acquired a vested right to any future supplemental payments.

Appropriates from the General Fund to the Reserve for Compensation Increases $463,511,000 in nonrecurring funds for the 2024-25 fiscal year and $294,873,728 in recurring funds for the 2024-25 fiscal year.

Part III.

Appropriates from the General Fund to DHHS’s Division of Child Development and Early Childhood Education $36.3 million in nonrecurring funds for the 2024-25 fiscal year to expand the Child Care WAGE$ program, which provides salary supplements for early childhood educators.

Part IV.

Enacts GS 105-163.6B (providing a tax credit to employers for wages paid). Defines term qualifying taxpayer to mean an employer or payer subject to income tax that has annual receipts for the most recent previous tax year of $8 million or less. Permits qualifying taxpayers to take a credit equal to the lesser of $10,000 or 5% of the wages paid by the qualifying taxpayer during the taxable year. Requires the Secretary to refund the excess to the qualifying taxpayer if the credit plus any other allowable credits exceed the tax imposed. Specifies provisions governing the refundable excess and methods of computation. Provides for substantiation by the qualifying taxpayer upon request of the Secretary. Effective for taxable years beginning on or after January 1, 2025, and sunsets for taxable years beginning on or after January 1, 2027.

Part V.

Effective July 1, 2024.

Intro. by Grafstein, Batch, Garrett.

APPROP, GS 105

S 899 (2023-2024) DIAGNOSTIC IMAGING PARITY. Filed May 2 2024, AN ACT PROVIDING HEALTH COVERAGE PARITY FOR BREAST CANCER DIAGNOSTIC IMAGING, MAKING TECHNICAL AND CONFORMING CHANGES TO THE GENERAL STATUTES RELATED TO BREAST CANCER SCREENING, UPDATING MAMMOGRAPHIC BREAST DENSITY PATIENT NOTIFICATION REQUIREMENTS, AND APPROPRIATING FUNDS TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR THE PURPOSES OF EDUCATING HEALTHCARE PROVIDERS ABOUT THE CHANGES TO HEALTH INSURANCE COVERAGE OF BREAST CANCER SCREENING AND DIAGNOSIS AND THE UPDATES TO THE MAMMOGRAPHIC BREAST DENSITY PATIENT NOTIFICATION REQUIREMENTS.

Amends GS 58-51-57, which requires every policy or contract of accident or health insurance, and every preferred provider benefit plan that is issued, renewed, or amended on or after January 1, 1992, to provide coverage for examinations and laboratory tests for the screening for the early detection of cervical cancer and for low‑dose screening mammography, by making the following changes. Repeals (a1), which defined examinations and laboratory tests for the screening for the early detection of cervical cancer to mean conventional PAP smear screening, liquid‑based cytology, and human papilloma virus (HPV) detection methods for women with equivocal findings on cervical cytologic analysis subject to the approval of and have been approved by the US Food and Drug Administration. Repeals (b), which defined low‑dose screening mammography as a radiologic procedure for the early detection of breast cancer provided to an asymptomatic woman using equipment dedicated specifically for mammography, including a physician's interpretation of the results of the procedure. Repeals (c), which required the following coverage for low‑dose screening mammography: (1) one or more mammograms a year, as recommended by a physician, for any woman who is at risk (as defined) for breast cancer; (2) one baseline mammogram for any woman 35 through 39 years of age, inclusive; (3) a mammogram every other year for any woman 40 through 49 years of age, inclusive, or more frequently upon recommendation of a physician; and (4) a mammogram every year for any woman 50 years of age or older. Recodifies the remaining provisions under new GS 58-3-271, and makes the following changes.

Adds and defines the terms breast magnetic resonance imaging, breast ultrasound, cost-sharing requirement, diagnostic examination for breast cancer, insurer, low-dose mammography, screening examination for breast cancer, screening of early detection of cervical cancer, and supplemental examination for breast cancer.

Requires every health benefit plan offered by an insurer in this state to provide coverage for examinations and laboratory tests, including the laboratory fee and the interpretation of the laboratory results, for the screening for the early detection of cervical cancer and for low-dose screening mammography. Requires every health benefit plan offered by an insurer in this state that provides benefits for a diagnostic or supplemental examination for breast cancer to ensure that the cost-sharing requirements applicable to a diagnostic or supplemental examination for breast cancer are no less favorable than the cost-sharing requirements applicable to low-dose screening mammography for breast cancer. Requires coverage for screening examinations for breast cancer and early detection of cervical cancer to be provided at least in a manner that adheres to the most recent United States Preventative Task Force A, B, and C recommendations. Makes conforming changes.

Amends GS 135-48.51 by making new GS 58-3-271 applicable to the State Health Plan.

Repeals GS 58-65-92, coverage for mammograms and cervical cancer screening by insurance certificate or subscriber contract under any hospital service plan or medical service plan. Repeals GS 58-67-76, Coverage for mammograms and cervical cancer screening by health care plans.

Appropriates $900,000 in recurring funds for 2024-25 from the General Fund to the Department of State Treasurer to ensure compliance by the State Health Plan. Effective July 1, 2024.

Amends GS 130A-215.5 by requiring the summary of a mammography report to include the specified notice if the facility performing the mammogram determines that a patient does not have heterogeneously or extremely dense breasts. Amends the content of the notice that must be provided to patients determined to have heterogeneously or extremely dense breasts by making the determination of density more definite and notifying the patient they might benefit from supplementary screening, as described. Also amends the notice to refer to "healthcare providers" instead of "physicians."

Appropriates $100,000 for 2024-25 from the General Fund to the Department of Health and Human Services to educate healthcare providers about the changes to coverage and notification requirements. Requires DHHS to ensure that relevant information is provided to any North Carolina-based organization that includes obstetric and gynecological practitioners as part of its membership.

Effective October 1, 2023, and applies to insurance contracts issued, renewed, or amended on or after that date.

Intro. by Batch, Mayfield, Chaudhuri.

APPROP, GS 58, GS 130A, GS 135

Government, Budget/Appropriations, State Agencies, Department of Health and Human Services, Health and Human Services, Health, Health Care Facilities and Providers, Health Insurance

The Daily Bulletin: 2024-05-06

LOCAL/HOUSE BILLS

H 1017 (2023-2024) EVEN-YR. ELECTIONS/CITY OF JACKSONVILLE. Filed May 2 2024, AN ACT TO PROVIDE THAT REGULAR MUNICIPAL ELECTIONS IN THE CITY OF JACKSONVILLE SHALL BE HELD IN EVEN-NUMBERED YEARS.

Amends Article II of the Jacksonville City Charter, SL 1967-911, as amended, as follows. Requires that election of the mayor and city council members be in even-numbered years instead of odd-numbered years. Specifies that city council members will serve staggered four-year terms. Requires that in 2026, and quadrennially thereafter, that two at-large members, a member for Ward 1 and a member for Ward 2, be elected to serve a four-year term; in 2028 and quadrennially thereafter, a mayor, a member for Ward 3, and a member for Ward 4 will be elected to each serve a four-year term. Makes conforming changes.

Amends Section 8-1 of the Charter to require all regular elections to be held in even-numbered years instead of odd-numbered years.

Prohibits conducting municipal elections in Jacksonville in 2025. Extends specified terms of office by one year. Requires that municipal elections be conducted in 2026.

Intro. by Cleveland, Shepard.

Onslow

Government, Elections

H 1019 (2023-2024) MCDOWELL/CASWELL/PENDER OCCUPANCY TAX MODS. (NEW) Filed May 2 2024, AN ACT TO AUTHORIZE MCDOWELL COUNTY TO LEVY AN ADDITIONAL ONE PERCENT ROOM OCCUPANCY TAX AND MAKE OTHER ADMINISTRATIVE CHANGES, TO AUTHORIZE CASWELL COUNTY TO LEVY A ROOM OCCUPANCY TAX OF UP TO THREE PERCENT IN A TAX DISTRICT COMPRISING ALL AREAS OF THE COUNTY EXCLUSIVE OF THE TOWN OF YANCEYVILLE, AND TO AUTHORIZE PENDER COUNTY TO LEVY A ROOM OCCUPANCY TAX OF UP TO THREE PERCENT IN A TAX DISTRICT COMPRISING ALL AREAS OF THE COUNTY EXCLUSIVE OF THE TOWNS OF BURGAW, SURF CITY, AND TOPSAIL BEACH.

Amends SL 1985-892, as amended, as follows. Allows the McDowell County Board of Commissioners to levy a 3% room occupancy tax on the gross receipts derived from the rental of an accommodation within the county (was, rental of any room, lodging, or similar accommodation furnished by a hotel, motel, inn, or similar place within the county). Removes the exclusion for accommodations furnished by nonprofit charitable, education, or religious organizations. Specifies that the additional 2% occupancy tax is to be levied, collected, administered, and repealed in accordance with the act (which requires these actions to be in accordance with GS 153A-155, Uniform provisions for room occupancy taxes).

Adds an authorization for the levy of an additional 1% room occupancy tax so long as the 3% occupancy tax and additional 2% occupancy taxes have been levied. Requires this additional occupancy tax to be levied, collected, administered, and repealed in accordance with the act.

Amends the uses of the proceeds of the tax to now require the Tourism Development Authority (Authority) to expend the proceeds for promoting travel and tourism and for tourism-related expenditures. Removes the provision allowing the Authority to contract with an outside entity to advise and assist it in performing its duties.

Applies to the distribution and use of occupancy tax proceeds on or after July 1, 2024.

Intro. by Greene.

McDowell

Government, Tax

H 1058 (2023-2024) JACKSON CO BD OF ED ELECTIONS TO NOV. Filed May 6 2024, AN ACT TO PROVIDE FOR THE ELECTION OF MEMBERS OF THE JACKSON COUNTY BOARD OF EDUCATION AT THE TIME OF THE GENERAL ELECTION AND TO CHANGE THE METHOD OF ELECTION OF MEMBERS OF THE JACKSON COUNTY BOARD OF EDUCATION TO THE NONPARTISAN PLURALITY METHOD.

As title indicates, amends SL 1991-170 to shift elections for the Jackson County Board of Education from the primary election date to the general election date. Specifies that the elections will use the nonpartisan plurality method provided in GS 163-292. Provides that elected members will take office on the first Monday in December following their election. Allows currently elected or appointed members to continue their term until their replacement is elected and qualified.

Applies to elections held in 2026 and thereafter.

Intro. by Clampitt.

Jackson

Government, Elections

H 1059 (2023-2024) TOWN OF BERMUDA RUN/CHARTER AMENDMENTS. Filed May 6 2024, AN ACT AMENDING THE CHARTER OF THE TOWN OF BERMUDA RUN TO CHANGE THE METHOD OF TOWN ELECTIONS FROM NONPARTISAN PRIMARY TO NONPARTISAN PLURALITY; TO AUTHORIZE THE TOWN MANAGER TO APPOINT, SUSPEND, OR REMOVE TOWN OFFICERS AND EMPLOYEES AND TO APPOINT THE TOWN CLERK; AND TO CLARIFY REFERENDUMS FOR PROPERTY TAX RATE INCREASES.

Amends the Charter of the Town of Bermuda Run, Section 2 of SL 1999-94 as follows. Changes the election of town officers to a plurality method under GS 163-292 (currently elected using nonpartisan primaries as set forth in GS 163-294).

Removes the Town Council's powers to appoint Town officers and employees and to fix salaries, prescribe bonds, and require oaths from the Town Council. Gives the Town Manager all the powers and duties of a chief administrator prescribed in GS 160A-148 and the provisions of the Charter, including the power to appoint and suspend or remove all Town officers and employees not elected by the people and whose appointment or removal is otherwise provided for by law in line with general personnel rules as the Town Council may adopt, except the Town Attorney. Changes the requirement for the Town to increase its property taxes to requiring the vote or consent of the majority of qualified voters (was, majority of residents) participating in a referendum. Makes technical changes.

Intro. by Howard.

Davie

Government, Elections, Tax

The Daily Bulletin: 2024-05-06

LOCAL/SENATE BILLS

S 888 (2023-2024) EXTEND BOUNDARIES/CLEVELAND CTY SANITARY DIST. Filed May 2 2024, AN ACT EXTENDING THE BOUNDARIES OF CLEVELAND COUNTY WATER TO INCLUDE THE TOWN OF FALLSTON.

Extends the sanitary district boundaries of Cleveland County Water to include the boundaries of the Town of Fallston.

Intro. by Alexander.

UNCODIFIED, Cleveland

Government, Local Government, Public Enterprises and Utilities

S 900 (2023-2024) TOWN OF BEAUFORT/PROPERTY LEASES. Filed May 6 2024, AN ACT TO AUTHORIZE THE TOWN OF BEAUFORT TO LEASE CERTAIN PROPERTY OWNED OR LEASED BY THE TOWN.

Permits the Town of Beaufort to lease or rent certain property, as described, on terms and conditions determined by the Town’s Board of Commissioners. Allows leases for periods longer than 10 years if the Town observes the requirements of GS 160A-272. Also allows the Town to renew or extend leases for periods longer than 10 years if the Town follows the requirements of GS 160A-272. Clarifies that the authority granted by the bill does not restrict the Town’s authority to lease or rent real property under existing laws.

Intro. by Sanderson.

Carteret