House committee substitute to the 2nd edition makes the following changes.

Deletes the changes to GS 128-38.4A (applicable to the retirement system for counties, cities, and towns) and GS 135-18.10A (applicable to the retirement system for teachers and state employees) that prohibited the Board of Trustees from paying retirement benefits or allowances to any member convicted of any felony if the offense is committed while the member is in service and the conduct resulting in the conviction mandates revocation of a certification or professional license required to maintain employment in the position held by the member when the offense was committed. Instead, amends GS 128-21 (setting out the definitions applicable to the retirement system for counties, cities, and towns) and GS 135-1 (setting out the definitions applicable to the retirement system for teachers and state employees) by adding and defining the term conduct directly related to the office or employment as member conduct resulting in a felony conviction that: (1) is an offense identified in GS 115C-270.35(b) (listing 23 offenses for which a professional educator's license is automatically revoked without the right to a hearing after entering a plea of guilty or nolo contendere or a conviction), and the commission of the offense occurred while the member was employed in a public school or working in a public school subject to a memorandum of understanding; (2) is an offense which required the revocation of the member's licensure or certification required for the member's employment or office at the time of the commission of the offense; (3) is conduct that was directly related to the member's employment or office as determined by the Board of Trustees. Effective July 1, 2023, and applies to offenses committed on or after that date. Makes conforming changes to the act's long title.