Amends GS 160A and GS 153A-30 by adding new sections GS 160A-64.1 (Witholding compensation; money judgment against council member) and GS 153A-30 (Witholding compensation; money judgment against a board member), providing that a monetary judgment against an elected or appointed member of a governing body can be withheld from nonexempt holdings from the member's compensation set under GS 160A-64. Defines disposable income and nonexempt earnings as they are to be used in this section.

City finance officer must give notice of the withholding and that the member has the right to submit an objection. Provides procedures for notice and when it is deemed sufficient. Not later than five days after the notice is served, the member will submit an objection to the withholding, if objecting, and not later than 10 days after the notice of objection, the finance officer will hold a hearing.  If the finance officer determines there is merit to the objection, the council will address it in the next open meeting and decide how to proceed. If no merit exists, the council or board will notify the member that the member's compensation will be withheld and direct the officer to do so.  Withholding will continue until the member is no longer serving or the amount is paid in full.

The member may appeal the financial director's decision to withhold money and the council or board will schedule the hearing for an open session. These new provisions do not prevent the city or county from collecting the unpaid judgment from any other means authorized by law.

Effective January 1, 2014, applying to money judgments that are unsatisfied or entered on or after that date.