Amends GS 160A-164 to require city councils that do not have binding personnel procedures protecting employees from retaliation to adopt rules and regulations or ordinances that encourage city employees to report to their appropriate authority evidence of (1) violations of federal, state, or local laws, rules, or regulations; (2) fraud; (3) misappropriation of state or city resources; (4) any activity that poses a substantial or specific danger to public health and safety; and (5) gross mismanagement, including gross waste of public monies and gross abuse of authority. Requires such city councils to prohibit, by binding policy, retaliation against an employee who reports such violations, as specified. Directs city councils to publish notice for purposes of informing their employees of their rights and responsibilities under the statute. Makes conforming and organizational changes to the act.