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

Section 1.6.

Clarifies, in GS 143-166.30 (concerning the forfeiture of benefits from the Supplemental Retirement Income Plan for State Law-Enforcement Officers for certain felonies), and GS 143-166.50 (forfeiture of benefits from the Supplemental Retirement Income Plan for Local Government Law-Enforcement Officers), that either plan administrator can only prohibit withdrawals by the officer for up to sixty days to allow for a post-conviction forfeiture determinations (was, authorization to bar withdrawals for up to sixty days from the date of conviction).

Adds the following new content.

Part IV.

Section 4.6.

Removes provisions of GS 116B-78 (agreements to locate property between property finders and owners or apparent owners) that limit fees for agreements subject to GS 28A-22-11 (agreements with heirs). Makes conforming and organizational changes.

Section 4.7.

Updates statutory citation for the School Budget and Fiscal Control Act in GS 159-7.

Section 4.8.

Replaces references to the “Commission” with “Municipal Incorporations Subcommittee” where found in Part 2 (the procedure for incorporation review) of Article 20 (the Joint Legislative Committee on Local Government) in GS Chapter 120 (NCGA).

Makes organizational changes to Part IV to account for newly inserted sections.

Part V.

Section 5.1.

Authorizes the State Treasurer (Treasurer) to employ individuals to enforce GS Chapter 116B (escheats) in GS 116B-8. Removes provisions authorizing the Treasurer to employ a title search attorney and governing any contracts with auditors under the Chapter.

Section 5.2.

Modifies term property finder in GS 116B-52 to mean the described persons who primarily seek (was, seek) to recover property as specified.

Section 5.3.

Removes the requirement that the abandoned property under GS 116B-59 (notice by holders to apparent owners) either be a security or other equity interest, or be valued at $50 or more to trigger the notice provisions of the statute.

Section 5.4.

Requires, in GS 116B-60 (reports of abandoned property), that reports of abandoned property be verified if: (1) the amount is over $25 (was, $50), or (2) the property is a security or other equity interest in a business association as described, a business association’s debt, or any dividend, or other sum held or owing by a business association for or to its shareholders or other parties with an interest in the business as specified. Makes conforming changes. Authorizes the Treasure to request additional clarifying information or other information required to be reported. Requires the property holder to respond with the information within thirty days of receiving the request. Makes the following changes to GS 116B-67 (claim for property paid or delivered to the Treasurer). Allows the Treasurer to require the holder to verify whether or not the claimant is the owner. Now requires the holder to attest to their decision, as described, within 30 days of the Treasurer’s request. Requires the certification to be made by the described officers and employees (was, certification only applied to corporations), and is binding upon the holder. Makes conforming changes to GS 116B-77.

Part VI.

Section 6.1.

Directs that funds currently being withheld by the Department of Revenue (Department) from the Town of Speed’s sales tax distributions to be released by the Department to the Town within 45 days after the Local Government Commission’s approval of a plan of action to distribute the Town’s assets and liabilities. However, if the conditions of GS 159-34(h) (release of sales tax funds for municipality) are met before the Local Government Commission approves a plan of action, the Department of Revenue may act under the statute to release the funds.

Section 6.2.

Extends the sunset on the suspension of the Town of Spencer Mountain from June 30, 2026, to June 30, 2029.

Section 6.3.

Requires any county or municipality receiving a notice of noncompliance under GS 159-34 (annual independent audits) to appear before the Local Government Commission as soon as practicable after July 1 (currently, must appear at the Commission’s next scheduled meeting).

Section 6.4.

Removes the Treasurer as an ex officio nonvoting member from the Board of Directors of the NC Global TransPark Authority in GS 63A-3.

Section 6.5.

Directs the Treasurer’s State and Local Government Finance Division (Division) to study and report on the need to update the Local Government Budget and Fiscal Control Act (Article 3 of GS Chapter 159), including the five matters specified. Directs the Division to consult with the listed stakeholders, including the UNC School of Government, and at least two executive branch agencies that interact directly with local governments on financial matters, of which one must be the Department of Environmental Quality. Requires the Division to submit an initial report of its findings to the specified NCGA committees and division by January 31, 2027, with a final report due to the specified NCGA committees by October 1, 2027.

Section 6.6.

Changes the authority that issues an actuarial note for NCGA committee changes or floor amendments to legislation that would substantially affect the cost to or the revenues of any retirement system, or program of hospital, medical, disability, or related benefits for teachers and State employees from the Fiscal Research Division to an actuary employed by the subject system or program in GS 120-114 (NCGA actuarial notes). Requires that an actuary employed by a system or program whose service purchase provisions are modified by a resolution provide an estimate of the cost impact of those provisions (currently, Fiscal Research Division provides that cost estimate). Removes the process for requesting an actuarial note to a bill or resolution from the Fiscal Research Division.

Part VII.

Adds charter schools to institution for elementary and secondary education in GS 159D-37 (definitions pertaining to the Private Capital Facilities Finance Act). Removes exclusion from the term project for facilities used for sectarian instruction, religious worship or religious schools. Includes LLC’s in special purpose institution and makes technical change to statutory cross reference. Removes provisions in GS 159D-38 (capital facilities finance agency) requiring the Governor to designate a chair and vice-chair. Instead, designates the Treasurer as chair. Removes provisions from GS 159D-45 describing the requirements of a notice of hearing for the issuance of bonds, and instead just requires that the notice be consistent with the requirements for reasonable public notice set forth 26 USC 147(f) and any regulations promulgated thereunder. Specifies that no public hearing is required in connection with the refinancing of any project previously approved. 

Makes organizational changes to the effective date to account for newly inserted parts.