Senate committee substitute to 2nd edition makes the following changes. Makes conforming change to act’s long title.

Part I.

Section 1.

Makes technical changes throughout.

Updates the statutory citation in GS 126A-15.2(f) so that it refers to GS 143C-1-1 (currently, GS 143C-1.1). Removes the applicability of GS 126A-43 and GS 126A-52 to Specialized Treasurer’s Office employees. Replaces reference to “Commission” with “Commissioner” in GS 126A-15.4 (process for designating exempt managerial and policy positions), in provision pertaining to the Commissioner of Labor’s power to designate employees as exempt policymaking positions. Gives powers to the President Pro Tempore of the Senate instead of the President of the Senate. Removes authority of an elected department head to reverse a designation of an exempt position under GS 126-15.4. Gives such authority to a member of the Council of State, in addition to the Governor. Replaces reference to “policymaking” in GS 126A-15.5 with “exempt policymaking.” Expands the duties of the Office of State Human Resources (OSHR) in GS 126A-21 to include to provide services requested by the legislative branch and judicial branch. Modifies OSHR’s authority to charge fees for the following: (1) costs for participation in services OSHR is statutorily required to provide that are receipt-supported, including training; (2) administrative costs associated with administering the JoinNC Program; and (3) costs of training and consultation services requested by a unit of local government.

Clarifies that an agency may directly hire persons that were employed with the state through JoinNC in GS 126A-74.10, in addition to other factors being met (was, requirement that person be employed directly by agency of JoinNC).

Expands the types of entities that the State Human Resources Commission (Commission) must establish policies for minimum service requirements before an employee is eligible for paid parental leave to include an executive branch agency, public school, or community college (was, just agency) in GS 126A-71 (paid parental leave).

Adds new GS 126A-74.1, pertaining to transferred leave from legislative and judicial branch employment, which allows an individual transferring from one of these branches to an executive branch position to receive credit for their accrued vacation and sick leave, as specified.

Expands the matters under which the Commission has to establish policies on under GS 126A-110 (temporary employment) to include fees for the use of the JoinNC Program. Clarifies, in GS 126A-120 (local government policies) that the described local government policies filed with the Director will supersede policies established by the Commission (was, rules adopted by the Commission). Replaces reference to “State agencies” with “executive branch agencies” in GS 126A-133 (model policies). Clarifies that the agencies charged with equal employment opportunity training under GS 126A-151 are executive branch agencies.

Part II.

Makes technical and organizational changes throughout.

Article 7E. Legislative Human Resources (was, Legislative Human Resources System).

Part 1. Legislative Services Commission Policies.

Places new GS 120-36.30 (policies and equal employment opportunity pertaining to the Legislative Services Commission-LSC)  in GS 120-36.31 and makes the following changes. Requires the SBI to conduct the criminal history check upon request. No longer specifies the authority to provide for parental leave benefits for employees, coordinate with the Director of the Office of State Human Resources (OSHR) to offer flexible compensation benefits, or to establish safety, health, and workers' compensation programs for employees. Instead adds the following. Establishing all personnel policies governing legislative branch employees, including vacation, sick, parental, and all other types of leave benefits and holidays for legislative branch employees and officers; provides for transfer of leave. Request that the OSHR provide programs, benefits or assistance on flexible compensation benefits; safety, health, and workers compensation program; retirement assistance; training; and any other program, benefits or assistance required by the LSC. Removes provisions pertaining to temporary employees (GS 120-36.32). Authorizes the LSC to establish human resources policies for the legislative branch in GS 120-32 (was, Establish a Legislative Human Resources System). Adds new GS 120-36.30 specifying that all human resource policies and all matters of employment within the legislative branch are the exclusive jurisdiction of the General Assembly. When in conflict, policies established by the LSC for legislative employees supersede all State laws to the contrary. Sets forth six areas where the LSC is authorized to draft policies in new GS 120-36.31.  

Removes Part 2 of new Article 7E in GS Chapter 120, provisions pertaining to reporting improper government activities. Makes conforming organizational changes.

Part 2. Employee Records (was, Part 3).

Adds legislative branch employer and employee (was, personnel) to the definitions pertaining to GS 120-36.40 (privacy of employee personnel records). Clarifies that personnel records are not administrative records subject to inspection and examination under GS 132-6. Makes technical and organizational changes. Substantially rewrites GS 120-36.41 (certain records to be kept by the legislature), as follows. Removes the legislature’s duty to keep records on the date and type of adverse employment action taken by the legislature and the definition of salary. Removes provisions providing a person with the right to compel the records authorized to be subject to inspection under the statute. Removes provisions authorizing persons in the custody of the Department of Adult Corrections or local confinement facilities to obtain certain records with a court order. Directs LSC to establish a policy on record inspection. Makes organizational and technical changes to the act’s provisions pertaining to confidential information in legislative personnel records (now codified at GS 120-36.42). Clarifies that one of the persons who is able to access such information under the described circumstances is a potential supervisor (was, supervisor) during the interview process only with regard to performance management documents or to prevent application fraud. Replaces references to “agency head” or “Commission” with “legislative supervisor” or “legislative branch employer” and “agency” with “legislature.” Removes provisions allowing access to such files a part of a grievance proceeding and provisions authorizing access when the legislature is conducting a quasi-judicial hearing, as described.

Part III.

Article 28E, Judicial Human Resources System

Makes technical and organizational changes throughout, including updating the statutory citations in new Article 28E.

Part 1.

Policies (was, Policies and Equal Employment Opportunity).

Reorganizes equal employment opportunity provisions from provisions pertaining to the Judicial HR System (GS 307A-339) to GS 307A-339.05. Reorganizes provisions pertaining to parental leave into parts explaining the types of policies that the Director of the Administrative Office of the Courts (AOC) is authorized to implement. Provides for credit of accrued vacation and sick leave for persons transferring to the judicial branch from the executive or legislative branch. Clarifies that OSHR may continue to offer (1) flexible compensation benefits and (2) safety, health, and worker’s compensation programs only at the Director’s request.  

Adds new GS 7A-339.10, ensuring dignity and nondiscrimination in the workplace, prohibiting the judiciary from compelling employees to affirm or profess belief in or offering training that covers thirteen enumerated topics pertaining to race, sex, the rule of law, the overthrow of the US government, and meritocracies.

Part 2.

Protection for Reporting Improper Government Activities.

Removes provisions from the duty to report improper government activities (now GS 7A-339.15) that pertain to claims arising out of Article 21 of GS Chapter 95. Replaces reference to “Article” with “Part.”

Part 3.

Employee Personnel Records.

Adds judicial branch employer and employee (was, personnel) to the definitions pertaining to GS 7A-339.20 (privacy of employee personnel records). Removes the Director of the AOC’s authority to establish policies on personnel records subject to Part 3. Makes technical and organizational changes. Tasks the AOC (was, judicial branch) with maintaining the listed information on each judicial branch employee. Clarifies that the AOC is not required to provide the described incarcerated persons with the described public records without a court order and makes technical changes to GS 7A-339.30 (certain restrictions on access to records).

Makes organizational and technical changes to the act’s provisions pertaining to confidential information in legislative personnel records (now codified at GS 7A-339.35), and makes organizational and technical changes. Clarifies that one of the persons who is able to access such information under the described circumstances is a potential supervisor (was, supervisor) during the interview process only with regard to performance management documents or to prevent application fraud. Replaces references to “agency head,” “employer,” or “Commission” with “judicial branch employer” and “agency” with “judicial branch.” Removes provisions allowing access to such files a part of a grievance proceeding and provisions authorizing access when the judicial branch is conducting a quasi-judicial hearing, as described.  Replaces references to “employer” with “judicial branch employer” in GS 7A-339.40 (remedies of employee objecting to material in file).

Part IV.

Section 4.36.

Makes technical change to statutory cross reference in GS 116-37.3(b).

Section 4.38.

Makes technical change to statutory cross reference in GS 116-350.30(a).

Section 4.53.

Makes technical change to statutory cross reference in GS 132-1.4A(b).

Section 4.70.

Removes reference to NC Partnership in GS 143B-168.14(a)(2) and makes conforming and technical changes.

Section 4.82.

Makes technical change to statutory cross reference in GS 147-72.1(c).

Part V.

Makes technical changes throughout.

Section 5.1(b).

Makes technical correction to statutory cross reference that applies to employees hired on or after October 1, 2026, so that it refers to appointment types under GS 126A-10.1 (was, GS 126A-310).

Section 5.7.

Specifies that if House Bill 1214, 2025 Regular Session, becomes law, then the following will happen:

(1)          the definition of employer in GS 64-25(4), as amended by House Bill 1214, 2025 Regular Session, will contain a statutory cross reference to GS 126A-61 (currently, cross reference to GS 126-7.1(i));

(2)          Section 1(j) of House Bill 1214 (pertaining to changes to GS 126-7.1(i)) will be repealed.

(3)          Amends GS 126A-61(a), as enacted by the act, so that it the agencies, community colleges, and described schools must also comply with Article 2 of GS Chapter 64 as part of its E-Verify procedures.

(4)          Amends Section 3(a) of House Bill 1214 to update the statutory cross reference pertaining to the exempt position created by the appropriation in that section.

(5)          Amends GS 126A-15.4(d)(7), as enacted by the act so that the Commissioner of Labor has to also designate an additional official primarily responsible for ensuring compliance with Article 2 of GS Chapter 64.