AN ACT to make technical corrections to the general statutes and session laws, as recommended by the general statutes commission, and to make other technical corrections.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  G.S. 1‑18 is repealed.

SECTION 1.(b)  G.S. 29‑30 reads as rewritten:

§ 29‑30.  Election of surviving spouse to take life interest in lieu of intestate share provided.

(a)        Except as provided in this subsection, in lieu of the intestate share provided in G.S. 29‑14 or G.S. 29‑21, or of the elective share provided in G.S. 30‑3.1, the surviving spouse of an intestate or the surviving spouse who has petitioned for an elective share is entitled to take as the surviving spouse's intestate share or elective share a life estate in one third in value of all the real estate of which the deceased spouse was seised and possessed of an estate of inheritance at any time during coverture. the marriage. The surviving spouse is not entitled to take a life estate in any of the following circumstances:

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(b)        The surviving spouse may elect to take a life estate in the usual dwelling house occupied by the surviving spouse at the time of the death of the deceased spouse if the dwelling house was owned by the deceased spouse at the time of the deceased spouse's death, together with the outbuildings, improvements improvements, and easements thereunto belonging or appertaining, easements, and lands land upon which the dwelling house is situated and that is reasonably necessary to the its use and enjoyment thereof, as well as enjoyment. The surviving spouse may also elect to take a fee simple ownership in the household furnishings therein, despite the fact that a life estate therein in the dwelling house might exceed the fractional limitation provided for in subsection (a) of this section. If the value of a life estate in the dwelling house is less than the value of a life estate in one‑third in value of all the real estate, the surviving spouse may elect to take a life estate in the dwelling and a life estate in such other real estate as to make the aggregate life estate of the surviving spouse equal to a life estate in one‑third in value of all the real estate.

(c)        The election provided for in subsection (a) of this section shall be is made by the filing of a petition in accordance with Article 2 of Chapter 28A of the General Statutes (i) with the clerk of the superior court of the county in which the administration of the estate is pending or (ii) if no administration is pending, then with the clerk of the superior court of any county in which the administration of the estate could be commenced, together with the recording of a notice indicating the county and file number of the clerk's filing with the register of deeds in every county where real property to be claimed under the filing is located. The election shall be made prior to the following applicable periods:

(1)        In case of testacy, the shorter of (i) within 12 months of the date of death of the deceased spouse if letters testamentary are not issued within that period, or (ii) within one month after the expiration of the time limit for filing a claim for elective share if letters have been issued.

(2)        In case of intestacy, the shorter of (i) within 12 months after the date of death of the deceased spouse if letters of administration are not issued within that period, or (ii) within one month after the expiration of the time limit for filing claims against the estate, if letters have been issued.

(3)        Repealed by Session Laws 2011‑344, s. 5, effective January 1, 2012.

(4)        If litigation that affects the share of the surviving spouse in the estate is pending, including a pending petition for determination of an elective share, then within such a reasonable time as may be allowed by written order of the clerk of the superior court.

Nothing in this subsection extends the period of time for a surviving spouse to petition for an elective share under Article 1A of Chapter 30 of the General Statutes.

(c1)      The petition described in subsection (c) of this section shall do all of the following:

(1)        Be directed to the clerk with whom it is filed.

(2)        State that the surviving spouse making the petition elects to take under this section rather than under the provisions of G.S. 29‑14, 29‑21, or 30‑3.1, as applicable.

(3)        Set forth the names of all heirs, devisees, personal representatives representatives, and all other persons in possession of or claiming an estate or an interest in the property described in subsection (a) of this section.

(4)        Request the allotment of the life estate provided for in subsection (a) of this section.

(c2)      The petition described in subsection (c) of this section may be filed in person, person or by attorney authorized in a writing executed and duly acknowledged by the surviving spouse and attested by at least one witness. If the surviving spouse is a minor or an incompetent, the petition may be executed and filed by a general guardian or by the guardian of the person or estate of the minor or incompetent spouse. If the minor or incompetent spouse has no guardian, the petition may be executed and filed by a guardian ad litem appointed by the clerk. The petition, whether in person or by attorney, shall be filed as a record of the court, and a summons together with a copy of the petition shall be served upon each of the interested persons named in the petition, in accordance with G.S. 1A‑1, Rule 4.

(d)       In case of election to take a life estate in lieu of an intestate share or elective share, as provided in either G.S. 29‑14, 29‑21, or 30‑3.1, the clerk of superior court, with whom the petition has been filed, shall summon and appoint a jury of three disinterested persons who being first duly sworn shall promptly allot and set apart to the surviving spouse the life estate provided for in subsection (a) of this section and make a final report of this action to the clerk.

(e)        The final report shall be filed by the jury not more than 60 days after the their summoning and appointment thereof, appointment, shall be signed by all jurors, and shall describe by metes and bounds the real estate in which the surviving spouse shall have has been allotted and set aside a life estate. It shall be filed as a record of court and a certified copy thereof of it shall be filed and recorded in the office of the register of deeds of each county in which any part of the real property of the deceased spouse, affected by the allotment, is located.

(f)        In the election and procedure to have the life estate allotted and set apart provided for in this section, the rules of procedure relating to partition proceedings apply except insofar as the rules would be inconsistent with the provisions of this section. A determination of the life estate under this section may be appealed in accordance with G.S. 1‑301.3.

(g)        Neither the household furnishings in the dwelling house nor the life estates estate taken by election under this section are subject to the payment of debts due from the estate of the deceased spouse, except those debts secured by such the property as follows:

(1)        By a mortgage or deed of trust in which the surviving spouse has waived the surviving spouse's rights by joining with the other spouse in the making thereof.spouse.

(2)        By a mortgage or deed of trust given by the deceased spouse to secure a loan, the proceeds of which were used to pay all or a portion of the purchase price of the encumbered real property, regardless of whether the secured party is the seller of the real property or a third‑party lender, or bylender.

(2a)      By a conditional sales contract of personal property in which title is retained by the vendor, made prior to or during the marriage.

(3)        By a mortgage or deed of trust made prior to the marriage.

(4)        By a mortgage or deed of trust constituting a lien on the property at the time of its acquisition by the deceased spouse either before or during the marriage.

(5)        By a mortgage or deed of trust on property with respect to which the elective life estate provided for in this section does not apply as provided in subsection (a) of this section.

(h)        If no election is made in the manner and within the time provided for in subsection (c) of this section, the surviving spouse shall be is conclusively deemed to have waived the surviving spouse's right to elect to take under the provisions of this section, and any interest which that the surviving spouse may have had in the real estate of the deceased spouse by virtue of this section shall terminate.is terminated.

SECTION 1.(c)  G.S. 50‑11 reads as rewritten:

§ 50‑11.  Effects of absolute divorce.

(a)        After a judgment of divorce from the bonds of matrimony, all rights arising out of the marriage shall cease and determine except as hereinafter set out, cease, except as otherwise provided by this section, and either party may marry again without restriction arising from the dissolved marriage.

(b)        No judgment of divorce shall cause any child in esse or begotten of the body of the wife during coverture the marriage to be treated as a child born out of wedlock.

(c)        A divorce obtained pursuant to G.S. 50‑5.1 or G.S. 50‑6 shall does not affect the rights of either spouse with respect to any action for alimony or postseparation support pending at the time the judgment for divorce is granted. Furthermore, a judgment of absolute divorce shall does not impair or destroy the right of a spouse to receive alimony or postseparation support or affect any other rights provided for such the spouse under any judgment or decree of a court rendered before or at the time of the judgment of absolute divorce.

(d)       A divorce obtained outside the State in an action in which jurisdiction over the person of the dependent spouse was not obtained shall does not impair or destroy the right of the dependent spouse to alimony as provided by the laws of this State.

(e)        An absolute divorce obtained within in this State shall destroy destroys the right of a spouse to equitable distribution under G.S. 50‑20 unless the right is asserted prior to judgment of absolute divorce; except, however, the defendant may bring an action or file a motion in the cause for equitable distribution within six months from the date of the judgment in such a the case if service of process upon the defendant was by publication pursuant to G.S. 1A‑1, Rule 4 Rule 4, and the defendant failed to appear in the action for divorce.

(f)        An absolute divorce by a court that lacked personal jurisdiction over the absent spouse or lacked jurisdiction to dispose of the property shall does not destroy the right of a spouse to equitable distribution under G.S. 50‑20 if an action or motion in the cause is filed within six months after the judgment of divorce is entered. The validity of such the divorce may be attacked in the action for equitable distribution.

SECTION 1.(d)  G.S. 52‑10 reads as rewritten:

§ 52‑10.  Contracts between husband and wife generally; releases.

(a)        Contracts between husband and wife not inconsistent with public policy are valid, and any persons of full age about to be married and married persons may, with or without a valuable consideration, release and quitclaim such rights which they might respectively acquire or may have acquired by marriage in the property of each other; and such other. These releases may be pleaded in bar of any action or proceeding for the recovery of the rights and estate so released. No contract or release between husband and wife made during their coverture shall be valid to affect or change any part of the real estate of either spouse, or the accruing income thereof for a longer time than three years next ensuing the making of such contract or release, marriage affects either of the following, unless it is in writing and is acknowledged by both parties before a certifying officer.officer:

(1)        Either spouse's real property.

(2)        Income from either spouse's real property accruing more than three years after the execution of the contract or release.

(a1)      A contract between a husband and wife made, with or without a valuable consideration, during a period of separation to waive, release, or establish rights and obligations to post separation postseparation support, alimony, or spousal support is valid and not inconsistent with public policy. A provision waiving, releasing, or establishing rights and obligations to post separation postseparation support, alimony, or spousal support shall remain remains valid following a period of reconciliation and subsequent separation, if the contract satisfies all of the following requirements:

(1)        The contract is in writing.

(2)        The provision waiving the rights or obligations is clearly stated in the contract.

(3)        The contract was acknowledged by both parties before a certifying officer.

A release made pursuant to this subsection may be pleaded in bar of any action or proceeding for the recovery of the rights released.

(b)        Such A certifying officer under this section shall be a notary public, or a justice, judge, magistrate, clerk, assistant clerk clerk, or deputy clerk of the General Court of Justice, or the equivalent or corresponding officers of the state, territory territory, or foreign country where the acknowledgment is made. Such The officer must shall not be a party to the contract.

(c)        This section shall does not apply to any judgment of the superior court or other State court of competent jurisdiction, which, jurisdiction that, by reason of its being consented to by a husband and wife, or their attorneys, may be construed to constitute a contract or release between such the husband and wife.

SECTION 2.  G.S. 1‑569.17 reads as rewritten:

§ 1‑569.17.  Witnesses; subpoenas; depositions; discovery.

(a)        An arbitrator may issue a subpoena for the attendance of a witness and for the production of records and other evidence at any hearing and may administer oaths. A subpoena shall be served in the manner for service of subpoenas in a civil action and, upon motion to the court by a party to the arbitration proceeding or the arbitrator, enforced in the manner for enforcement of subpoenas in a civil action.

…

(d)       If an arbitrator permits discovery under subsection (c) of this section, the arbitrator may order a party to the arbitration proceeding to comply with the arbitrator's discovery‑related orders, issue subpoenas for the attendance of a witness and for the production of records and other evidence at a discovery proceeding, and take action against a noncomplying party to the extent a court could if the controversy were the subject of a civil action in this State.

…

(g)        The court may enforce a subpoena or discovery‑related order for the attendance of a witness within this State and for the protection production of records and other evidence issued by an arbitrator in connection with an arbitration proceeding in another state upon conditions determined by the court so as to make the arbitration proceeding fair, expeditious, and cost‑effective. A subpoena or discovery‑related order issued by an arbitrator in another state shall be served in the manner provided by law for service of subpoenas in a civil action in this State and, upon motion to the court by a party to the arbitration proceeding or the arbitrator, enforced in the manner provided by law for enforcement of subpoenas in a civil action in this State.

(h)        An arbitrator shall does not have the authority to hold a party in contempt of any order the arbitrator makes under this section. A court may hold parties in contempt for failure to obey an arbitrator's order, or an order made by the court, pursuant to this section, among other sanctions imposed by the arbitrator or the court.

SECTION 3.  G.S. 7B‑2204(d) reads as rewritten:

(d)      Should the juvenile be found guilty, or enter a plea of guilty or no contest to a criminal offense in superior court and receive an active sentence, then immediate transfer to the Division of Prisons of the Department of Adult Correction shall be ordered. Until such time as the juvenile is transferred to the Division of Prisons of the Department of Adult Correction, the juvenile may be detained in a holdover facility or detention facility approved by the Section.

or approved by the Division of Juvenile Justice of the Department of Public Safety.

SECTION 4.  G.S. 14‑113.7A reads as rewritten:

§ 14‑113.7A.  Application of Article to credit financial transaction cards.

This Article shall not be construed as being applicable does not apply to any credit a financial transaction card as the term is defined in G.S. 14‑113.8.

SECTION 5.  Article 15A of Chapter 15 of the General Statutes is repealed.

SECTION 6.(a)  The last sentence of Section 5 of S.L. 2013‑357 is codified as the last sentence of G.S. 58‑50‑130(a)(5)b.

SECTION 6.(b)  G.S. 58‑50‑130, as amended by subsection (a) of this section, reads as rewritten:

§ 58‑50‑130.  Required health care plan provisions.

(a)        Health benefit plans covering small employers are subject to the following provisions:

…

(5)        No small employer carrier, insurer, subsidiary of an insurer, or controlled individual of an insurance holding company shall provide stop loss, catastrophic, or reinsurance coverage that does not comply with the applicable standards in this Article, including underwriting and rating standards, to small employers who employ employing fewer than 20 eligible employees that does not comply with the underwriting, rating, and other applicable standards in this Act. employees. An insurer shall not issue a stop loss health insurance policy to any person, firm, corporation, partnership, or association defined as a small employer that does any of the following:

a.         Provides direct coverage of health expenses payable to an individual.

b.         Has an annual attachment point for claims incurred per individual that is lower than twenty thousand dollars ($20,000) for plan years beginning in 2013. For subsequent policy years, the amount shall be indexed using the Consumer Price Index for Medical Services for All Urban Consumers for the South Region and shall be rounded to the nearest whole thousand dollars. The index factor shall be is the index as of July of the year preceding the change divided by the index as of July 2012. The Department of Insurance shall make the amount of the attachment points in Section 3 of this act the indexed amount available to the public annually.

c.         Has an annual aggregate attachment point lower than the greater of one of the following:

1.         One hundred twenty percent (120%) of expected claims.

2.         Twenty thousand dollars ($20,000) for plan years beginning in 2013. For subsequent policy years, the amount shall be indexed using the Consumer Price Index for Medical Services for All Urban Consumers for the South Region and shall be rounded to the nearest whole thousand dollars. The index factor shall be is the index as of July of the year preceding the change divided by the index as of July 2012.

Nothing in this subsection prohibits an insurer from providing additional incentives to small employers with benefits promoting a medical home or benefits that provide health care screenings, are focused on outcomes and key performance indicators, or are reimbursed on an outcomes basis rather than a fee‑for‑service basis.

(6)        If a small employer carrier offers coverage to a small employer, the small employer carrier shall offer coverage to all eligible employees of a small employer and their dependents. A small employer carrier shall not offer coverage to only certain individuals in a small employer group except in the case of late enrollees as provided in G.S. 58‑50‑130(a)(4).subdivision (a)(4) of this section.

(7), (8) Repealed by Session Laws 1997‑259, s. 5.

(9)        The health benefit plan must shall meet the applicable requirements of Article 68 of this Chapter.

(b)        For all small employer health benefit plans that are grandfathered health benefit plans and that are subject to this section, the premium rates are subject to all of the following provisions:

(1)        Small employer carriers shall use an adjusted‑community rating methodology in which the premium for each small employer can vary only on the basis of the eligible employee's or dependent's age as determined under subdivision (6) of this subsection, the gender of the eligible employee or dependent, number of family members covered, or geographic area as determined under subdivision (7) of this subsection, or industry as determined under subdivision (9) of this subsection. Premium rates charged during a rating period to small employers with similar case characteristics for the same coverage shall not vary from the adjusted community rate by more than twenty‑five percent (25%) for any reason, including differences in administrative costs and claims experience.

(2)        Rating factors related to age, gender, number of family members covered, geographic location, or industry may be developed by each carrier to reflect the carrier's experience. The factors used by carriers are subject to the Commissioner's review.

(3)        A small employer carrier shall not modify the premium rate charged to a small employer or a small employer group member, including changes in rates related to the increasing age of a group member, for 12 months from the initial issue date or renewal date, unless the group is composite rated composite‑rated and composition of the group changed by twenty percent (20%) or more or benefits are changed. The percentage increase in the premium rate charged to a small employer for a new rating period shall not exceed the sum of all of the following:

…

(4), (5) Repealed by Session Laws 1995, c. 238, s. 1.

(6)        Unless the small employer carrier uses composite rating, the small employer carrier shall use the following age brackets:

a.         Younger than 15 years;years.

b.         15 to 19 years;years.

c.         20 to 24 years;years.

d.         25 to 29 years;years.

e.         30 to 34 years;years.

f.          35 to 39 years;years.

g.         40 to 44 years;years.

h.         45 to 49 years;years.

i.          50 to 54 years;years.

j.          55 to 59 years;years.

k.         60 to 64 years;years.

l.          65 years.

Carriers may combine, but shall not split, complete age brackets for the purposes of determining rates under this subsection. Small employer carriers shall be permitted to develop separate rates for individuals aged 65 years and older for coverage for which Medicare is the primary payor and coverage for which Medicare is not the primary payor.

(7)        A carrier shall define geographic area to mean medical care system. Medical care system factors shall reflect the relative differences in expected costs, shall produce rates that are not excessive, inadequate, or unfairly discriminatory in the medical care system areas, and shall be revenue neutral revenue‑neutral to the small employer carrier.

(8)        The Department may adopt rules to administer this subsection and to assure that rating practices used by small employer carriers are consistent with the purposes of this subsection. Those rules shall include consideration of differences based on all of the following:

a.         Health benefit plans that use different provider network arrangements may be considered separate plans for the purposes of determining the rating in subdivision (1) of this subsection, provided that subsection so long as the different arrangements are expected to result in substantial differences in claims costs.

b.         Except as provided for in sub‑subdivision a. of this subdivision, differences in rates charged for different health benefit plans shall be reasonable and reflect objective differences in plan design, design but shall not permit differences in premium rates because of the case characteristics of groups assumed to select particular health benefit plans.

c.         Small employer carriers shall apply allowable rating factors consistently with respect to all small employers.

(9)        In any case where the small employer carrier uses industry as a case characteristic in establishing premium rates, the rate factor associated with any industry classification divided by the lowest rate factor associated with any other industry classification shall not exceed 1.2.

(b1)      For all small employer health benefit plans that are not grandfathered health benefit plans and that are subject to this section, the premium rates are subject to all of the following provisions:

(1)        A small employer carrier shall use a method to develop premiums for small employer group health benefit plans that are not grandfathered health plans which that spreads financial risk across a large population and allows adjustments for only the following factors:

a.         Age, except that the rate shall not vary by more than the ratio of three to one (3:1) for adults.

b.         Whether the plan or coverage covers individual or family.

c.         Geographic rating areas.

d.         Tobacco use, except that the rate shall not vary by more than the ratio of one and two‑tenths to one (1.2:1) due to tobacco use.

With respect to family coverage under a health benefit plan, the rating variations for age and tobacco use shall be applied based on the portion of premium that is attributable to each family member covered under the plan.

…

(f)        Each small employer carrier shall file with the Commissioner annually on or before March 15 an actuarial certification certifying that it is in compliance with this Act Article and that its rating methods are actuarially sound. The small employer carrier shall retain a copy of the certification at its principal place of business.

(g)        A small employer carrier shall make the information and documentation described in subsection (e) of this section available to the Commissioner upon request. Except in cases of violations of this Act, Article, the information is proprietary and trade secret information and is not subject to disclosure by the Commissioner to persons outside of the Department except as agreed to by the small employer carrier or as ordered by a court of competent jurisdiction. Nothing in this section affects the Commissioner's authority to approve rates before their use under G.S. 58‑65‑60(e) or G.S. 58‑67‑50(c).

(h)        The provisions of subdivisions (a)(1), (3), and (5) and subsections (b) through (g) of this section apply to health benefit plans delivered, issued for delivery, renewed, or continued in this State or covering persons residing in this State on or after January 1, 1992. The provisions of subdivisions (a)(2) and (4) of this section apply to health benefit plans delivered, issued for delivery, renewed, or continued in this State or covering persons residing in this State on or after the date the plan becomes operational, as designated by the Commissioner. For purposes of this subsection, the date a health benefit plan is continued is the anniversary date of the issuance of the health benefit plan.

….

SECTION 6.(c)  The introductory language of Section 12 of S.L. 2015‑281 reads as rewritten:

SECTION 12.  Section 4(b) of S.L. 2013‑357 reads as rewritten:

SECTION 4.(b)  G.S. 58‑50‑110 reads as rewritten:

SECTION 6.(d)  Subsection (c) of this section is retroactively effective January 1, 2016. The remainder of this section is effective when it becomes law.

SECTION 7.  G.S. 90A‑53 reads as rewritten:

§ 90A‑53.  Qualifications and examination for registration as an environmental health specialist or environmental health specialist intern.

(a)        The Board shall issue a certificate to a qualified person as a registered environmental health specialist or a registered environmental health specialist intern. A certificate as a registered environmental health specialist or a registered environmental health specialist intern shall be issued to any person upon the Board's determination that the person meets satisfies all of the following criteria:

(1)        Has made application to the Board on a form prescribed by the Board and paid a fee not to exceed one hundred dollars ($100.00);($100.00).

(2)        Is of good moral and ethical character and has signed an agreement to adhere to the Code of Ethics adopted by the Board;Board.

(3)        Meets any of the following education and practice experience standards:

a.         Graduated with a bachelor's degree or a or postgraduate degree from a program that is accredited by the National Environmental Health Science and Protection Accreditation Council (EHAC).

b.         Graduated with a bachelor's degree or a or postgraduate degree in public health and earned a minimum of 30 semester hours or 45 quarter hours in the physical, biological, natural, life, or health sciences and has one or more years of experience in the field of environmental health practice. degree, has earned 45 quarter hours physical, biological, natural, life, or health sciences and has one

c.         Graduated with a bachelor's degree or or postgraduate degree in public health and has one or more years of experience in the field of environmental health practice. degree, has earned or 45 quarter hours physical, biological, natural, life, or health sciences and has one

d.         Has worked five or more continuous years as a registered environmental health associate.

(4)        Has satisfactorily completed a course in specialized instruction and training approved by the Board in the practice of environmental health.

(5)        Repealed by Session Laws 2009‑443, s. 4, effective August 7, 2009.

(6)        Has passed an examination administered by the Board designed to test for competence in the subject matters of environmental health sanitation. The examination shall be in a form prescribed by the Board and may be oral, written, or both. The examination for applicants shall be held annually or more frequently as the Board may by rule prescribe, at a time and place to be determined by the Board. A person shall not be registered if such the person fails to meet the minimum grade requirements for examination specified by the Board. Failure to pass an examination shall does not prohibit such the person from being examined at subsequent times and places as specified by the Board.

(7)        Has paid a fee set by the Board not to exceed the cost of purchasing the examination and an administrative fee not to exceed one hundred fifty dollars ($150.00).

(b)        The Board may issue a certificate to a person serving as a registered environmental health specialist intern without the person meeting the full requirements for experience of a registered environmental health specialist for a period not to exceed two years from the date of initial registration as a registered environmental health specialist intern, provided, intern so long as the person meets the educational requirements in G.S. 90A‑53 of this section and is in the field of environmental health practice.

SECTION 8.  G.S. 108A‑54.3A(a)(2a) is repealed.

SECTION 9.  Article 3 of Chapter 110 of the General Statutes is repealed.

SECTION 10.  G.S. 110‑130 reads as rewritten:

§ 110‑130.  Action by the designated representatives of the county commissioners.

(a)        Any A county interested in the paternity and/or or support of a dependent child may institute civil or criminal proceedings commence a civil or criminal action against the responsible parent of the child, child or may take up and pursue intervene in any paternity and/or or support action commenced by the mother, custodian or guardian of the child. Such action shall be undertaken by the concerning the child. The designated representative of the county commissioners in the county where the mother of the child resides or is found, in the county where the father resides or is found, or in the county where the child resides or is found. Any legal proceeding instituted under this section found may commence or intervene in an action under this section. An action commenced under this section may be based upon information or belief.

(b)        The A parent of the child may be subpoenaed for testimony at the trial of the action to establish the paternity of and/or to obtain support for the child either instituted or taken up by the designated representative of the county commissioners. an action commenced or intervened in by a county under this section. The husband‑wife privilege shall not be grounds is not a ground for excusing the mother or father from testifying at the trial nor shall said privilege be grounds is the privilege a ground for the exclusion of confidential communications between husband and wife. If a parent called for examination declines to answer upon the grounds that his ground that his or her testimony may tend to incriminate him, him or her, the court may require him to answer in which event he the parent to answer. The parent shall not thereafter be prosecuted for any criminal act involved in the conception of the child whose paternity is in issue and/or or for whom support is sought, except for perjury committed in this testimony.

SECTION 11.(a)  G.S. 115C‑284, as amended by Section 1(d) of S.L. 2023‑125, reads as rewritten:

§ 115C‑284.  Method of selection and requirements.

(a)        Principals and supervisors shall be elected by the local boards of education upon the recommendation of the superintendent, in accordance with the provisions of G.S. 115C‑276(j).superintendent.

(b)        In the city administrative units, principals shall be elected by the board of education of such administrative unit upon the recommendation of the superintendent of city schools.

(b1) through (c3)   Repealed by Session Laws 2023‑125, s. 1(d), effective September 28, 2023.

(d)       Repealed by Session Laws 1989, c. 385, s. 1.

(d1)     Repealed by Session Laws 2023‑125, s. 1(d), effective September 28, 2023.

(e)        The State Board shall not issue provisional licenses for principals. It shall be All principals and supervisors employed in the public schools of the State or in schools receiving public funds are required either to hold or be qualified to hold a license issued by the State Board of Education. It is unlawful for any a local board of education to employ or keep in service any a principal or supervisor who neither holds nor is qualified to hold a license in compliance with the provision of the law or in accordance with the regulations of the State Board of Education. license. However, a local board of education may select a retired principal or retired assistant principal to serve as an interim principal for the remainder of any school year, regardless of licensure status.

(f)        The allotment of classified principals shall be is one principal for each duly constituted school with seven or more state‑allotted teachers.

(g)        Local boards of education shall have authority to employ supervisors in addition to those that may be furnished by the State when, in the discretion of the board of education, the schools of the local school administrative unit can thereby be more efficiently and more economically operated and when funds for the same them are provided in the current expense fund budget. The duties of such these supervisors shall be assigned by the superintendent with the approval of the board of education.

(h)        All principals and supervisors employed in the public schools of the State or in schools receiving public funds, shall be required either to hold or be qualified to hold a license in compliance with the provision of the law or in accordance with the regulations of the State Board of Education.

SECTION 11.(b)  G.S. 115C‑299 reads as rewritten:

§ 115C‑299.  Hiring of teachers.

(a)        In the city administrative units, teachers shall be elected by the board of education of such administrative unit upon the recommendation of the superintendent of city schools.

Teachers shall be elected by the county and city local boards of education upon the recommendation of the superintendent, in accordance with the provisions of G.S. 115C‑276(j).superintendent.

(b)        No person otherwise qualified shall be denied the right to receive credentials from the State Board of Education, to receive training for the purpose of becoming a teacher, or to engage in practice teaching in any school on the grounds that such the person is totally or partially blind; nor shall any local board of education refuse to employ such a the person on such these grounds.

SECTION 11.(c)  G.S. 115C‑315(a) is repealed.

SECTION 11.(d)  G.S. 115C‑315(b) reads as rewritten:

(b)      Election by Local Boards. – School personnel shall be elected by the local board of education upon the recommendation of the superintendent, in accordance with the provisions of G.S. 115C‑276(j).superintendent.

It is the policy of the State of North Carolina to encourage and provide for the most efficient and cost‑effective method of meeting the needs of local school administrative units for noncertified support personnel. To this end, the State Board of Education shall recommend to the General Assembly by November 1, 1984, a system using factors and formulas to determine the total number of noncertified support personnel allotted to local school administrative units. The recommended system for allotting noncertified support personnel shall include the proposed State's funding obligation for these positions and shall be developed in consultation with school‑based support personnel or their representatives.

SECTION 12.(a)  G.S. 116‑30.2 reads as rewritten:

§ 116‑30.2.  Appropriations to special responsibility constituent institutions.

(a)        All General Fund appropriations made by the General Assembly for continuing operations of a special responsibility constituent institution of The University of North Carolina shall be made in the form of a single sum to each budget code of the institution for each year of the fiscal period for which the appropriations are being made. Notwithstanding G.S. 143C‑6‑4 and G.S. 120‑76(8), G.S. 120‑76.1, each special responsibility constituent institution may expend monies from the overhead receipts special fund budget code and the General Fund monies so appropriated to it in the manner deemed by the Chancellor to be calculated to maintain and advance the programs and services of the institutions, consistent with the directives and policies of the Board of Governors. Special responsibility constituent institutions may transfer appropriations between budget codes. These transfers shall be are considered certified even if as a result of agreements between special responsibility constituent institutions. The preparation, presentation, and review of General Fund budget requests of special responsibility constituent institutions shall be conducted in the same manner as are requests of other constituent institutions. The quarterly allotment procedure established pursuant to G.S. 143C‑6‑3 shall apply applies to the General Fund appropriations made for the current operations of each special responsibility constituent institution. All General Fund monies so appropriated to each special responsibility constituent institution shall be recorded, reported, and audited in the same manner as are General Fund appropriations to other constituent institutions.

(b)        Repealed by Session Laws 2006‑66, s. 9.11(f), effective July 1, 2007.

SECTION 12.(b)  G.S. 126‑85 reads as rewritten:

§ 126‑85.  Protection from retaliation.

(a)        No head of any State department, agency agency, or institution or other State employee exercising supervisory authority shall discharge, threaten threaten, or otherwise discriminate against a State employee regarding the State employee's compensation, terms, conditions, location, or privileges of employment because the State employee, or a person acting on behalf of the employee, reports or is about to report, verbally or in writing, any activity described in G.S. 126‑84, unless the State employee knows or has reason to believe that the report is inaccurate.

(a1)      No State employee shall retaliate against another State employee because the employee, or a person acting on behalf of the employee, reports or is about to report, verbally or in writing, any activity described in G.S. 126‑84.

(b)        No head of any State department, agency agency, or institution or other State employee exercising supervisory authority shall discharge, threaten threaten, or otherwise discriminate against a State employee regarding the employee's compensation, terms, conditions, location location, or privileges of employment because the State employee has refused to carry out a directive which that in fact constitutes a violation of State or federal law, rule rule, or regulation or poses a substantial and specific danger to the public health and safety.

(b1)      No State employee shall retaliate against another State employee because the employee has refused to carry out a directive which that may constitute a violation of State or federal law, rule or regulation, rule, or regulation or poses a substantial and specific danger to the public health and safety.

(c)        The protections of this Article shall include include State employees who report any activity described in G.S. 126‑84 to the State Auditor as authorized by G.S. 147‑64.6B, to the Joint Legislative Commission on Governmental Operations as authorized by G.S. 120‑76, G.S. 120‑75.1, or to a legislative committee as required by G.S. 120‑19.

SECTION 13.  G.S. 116‑209.28 reads as rewritten:

§ 116‑209.28.  Administration of scholarships previously awarded by the Principal Fellows Program.

(a)        The Authority shall, as of July 1, 2021, shall administer all outstanding scholarship loans previously awarded by the former North Carolina Principal Fellows Commission and subject to repayment under the former Principal Fellows Program administered pursuant to Article 5C of this Chapter.

(b)        All funds received by the Authority in association with its administration of the Principal Fellows Program, including all funds received as repayment of scholarship loans and all interest earned on these funds, shall be deposited into the North Carolina Principal Fellows and TP3 Trust Fund established in G.S. 116‑74.41B.

SECTION 14.  G.S. 121‑42 is repealed.

SECTION 15.(a)  The Revisor of Statutes may recodify the definitions in G.S. 126‑81 so that they appear in alphabetical order and shall make any necessary conforming changes.

SECTION 15.(b)  Subdivision (5a) of G.S. 131E‑176 is recodified as subdivision (5c) of that section.

SECTION 15.(c)  Subdivision (2a) of G.S. 135‑48.1 is recodified as subdivision (2c) of that section.

SECTION 16.(a)  G.S. 128‑28 reads as rewritten:

§ 128‑28.  Administration and responsibility for operation of System.

(a)        Vested in Board of Trustees. – The general administration and responsibility for the proper operation of the Retirement System and for making effective the provisions of this Article are hereby vested in the Board of Trustees: Provided, that all Trustees. All expenses in connection with the administration of the North Carolina Local Governmental Employees' Retirement System shall be charged against and paid from the expense fund as provided in subsection (f) of G.S. 128‑30.

(b)        Board of Trustees a Body Politic and Corporate; Powers and Authority; Exemption from Taxation. – The Board of Trustees shall be is a body politic and corporate under the name Board of Trustees of the North Carolina Local Governmental Employees' Retirement System, and as System. As a body politic and corporate shall have corporate, it has the right to sue and be sued, shall have perpetual succession and has perpetual succession, shall have a common seal, and in said in its corporate name shall be able and capable in law to may take, demand, receive receive, and possess all kinds of real and personal property necessary and proper for its corporate purposes, and to may bargain, sell, grant, alien, transfer, or dispose of all such real and personal property as it may lawfully acquire. lawfully acquired by it. All such property owned or acquired by said body politic and corporate shall be it is exempt from all taxes imposed by the State or any political subdivision thereof, and shall not be thereof and is not subject to income taxes.

(c)        Members of Board. – The Board shall consist of (i) five members of the Board of Trustees of the Teachers' and State Employees' Retirement System appointed under G.S. 135‑6(b): the State Treasurer; the Superintendent of Public Instruction; the two members appointed by the General Assembly; and one of the two members appointed by the Governor who are not members of the teaching profession or State employees; and (ii) eight members designated by the Governor:

(1)        One member shall be a mayor or a member of the governing body of a city or town participating in the Retirement System;System.

(2)        One member shall be a county commissioner of a county participating in the Retirement System;System.

(3)        One member shall be a law‑enforcement officer employed by an employer participating in the Retirement System;System.

(4)        One member shall be a county manager of a county participating in the Retirement System;System.

(5)        One member shall be a city or town manager of a city or town participating in the Retirement System;System.

(6)        One member shall be an active, Fair Labor Standards Act nonexempt, local governmental employee of an employer;employer.

(7)        One member shall be a retired, Fair Labor Standards Act nonexempt, local governmental employee of an employer; andemployer.

(8)        One member shall be an active or retired member of the Firemen's and Rescue Squad Workers' Pension Fund.North Carolina Firefighters' and Rescue Squad Workers' Pension Fund.

The Governor shall designate eight members on April 1 of years in which an election is held for the office of Governor, or as soon thereafter as possible, and each of the eight members designated by the Governor shall serve on the Board in addition to the regular duties of their the member's city, town, or county office: Provided, that if office. If for any reason any member appointed pursuant to subdivisions (1) through (6) of this subsection vacates the city, town, or county office or employment which that the member held at the time of this designation, the Governor shall designate another member to serve until the next regular date for the designation of members to serve on the Board.

(d)       Compensation of Trustees. – The trustees shall be paid during sessions of the Board at the prevailing rate established for members of State boards and commissions, and they shall be reimbursed for all necessary expenses that they incur through service on the Board.

(e)        Oath. – Each trustee other than the ex officio members shall, within 10 days after his appointment, take an oath of office, that, to, so far as it devolves upon him, he will the trustee, diligently and honestly administer the affairs of the said Board, and that he will Board and to not knowingly violate or willingly permit to be violated any of the provisions of law applicable to the Retirement System. Such The oath shall be subscribed to by the member trustee making it, and certified by the officer before whom it is taken, and immediately filed in the office of the Secretary of State: Provided, that where State. However, if a local governmental official designated by the Governor has taken an oath of office in connection with the local governmental office that he the official holds, the oath for his local governmental office shall be is deemed to be sufficient, and he shall not be the official is not required to take the oath hereinabove provided.provided in this subsection.

(f)        Voting Rights. – Each trustee shall be is entitled to one vote in the Board. A majority of affirmative votes in attendance shall be is necessary for a decision by the trustees at any meeting of said the Board. A vote may only be taken if at least seven members of the Board are in attendance, in person or by telephone, for the meeting at which a vote on a decision is taken.

(f1)      Effect of Vote Related to Contributory Death Benefit. – No decision of the Board related to the Contributory Death Benefit provided for under this Article shall take takes effect unless and until this same decision has been made and voted on by the Board of Trustees of the Teachers' and State Employees' Retirement System.

(g)        Rules and Regulations. – Rules. – Subject to the limitations of this Article, the Board of Trustees shall, from time to time, establish rules and regulations shall adopt rules for the administration of the funds created by this Article and for the transaction of its business. The Board of Trustees shall also, from time to time, shall, in its discretion, adopt rules and regulations to prevent injustices and inequalities which that might otherwise arise in the administration of this Article.

(h)        Officers and Other Employees, Salaries Salaries, and Expenses. – The State Treasurer shall be ex officio chair of the Board of Trustees and shall appoint a director. The Board of Trustees shall engage such actuarial and other service as shall be actuarial and other services required to transact the business of the Retirement System. The compensation of all persons engaged by the Board of Trustees, Board, and all other expenses of the Board necessary for the operation of the Retirement System, shall be paid at such rates and in such amounts as the Board of Trustees shall approve.rates and in amounts approved by the Board.

(i)         Actuarial Data. – The Board of Trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the various funds of the Retirement System, System and for checking the experience of the System.

(j)         Record of Proceedings; Annual Report. – The Board of Trustees shall keep a record of all of its proceedings which that shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the Retirement System for the preceding year, the amount of the accumulated cash and securities of the System, and the last balance sheet showing the financial condition of the System by means of an actuarial valuation of the assets and liabilities of the Retirement System. It shall also publish annually a report on supplemental insurance offerings that are made available to retirees and the extent to which retirees participate in those offerings.

(k)        Legal Adviser. – The Attorney General shall be is the legal adviser of the Board of Trustees.

(l)         Medical Board. – The Board of Trustees shall designate a Medical Board to be composed of not less than three nor more than five physicians not eligible to participate in the Retirement System. The Board of Trustees may structure appointment requirements and term durations for those medical board Medical Board members. If required, other physicians may be employed to report on special cases. The Medical Board shall arrange for and pass upon all medical examinations required under the provisions of this Chapter, and shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and shall report in writing to the Board of Trustees its conclusion and recommendations upon all the matters referred to it. A person serving on the medical board shall be Medical Board is immune individually from civil liability for monetary damages, except to the extent covered by insurance, for any act or failure to act arising out of that service, except where unless any of the following apply:applies:

(1)        The person was not acting within the scope of that person's official duties.

(2)        The person was not acting in good faith.

(3)        The person committed gross negligence or willful or wanton misconduct that resulted in the damages or injury.

(4)        The person derived an improper financial benefit, either directly or indirectly, from the transaction.

(5)        The person incurred the liability from the operation of a motor vehicle.

(m)       Duties of Actuary. – The Board of Trustees shall designate an actuary who shall to be the technical adviser of the Board of Trustees on matters regarding the operation of the funds created by the provisions of this Chapter and shall perform such other duties as are required in connection therewith. this Chapter. The experience studies and all other actuarial calculations required by this Chapter, and all the assumptions used by the System's actuary, including mortality tables, interest rates, annuity factors, the contribution‑based benefit cap factor, and employer contribution rates, shall be set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees. Board. Notwithstanding Article 2A of Chapter 150B of the General Statutes, these materials, once accepted by the Board, shall be are considered part of the Plan documentation governing this the Retirement System and shall be are effective the first day of the month following adoption unless a different date is specified in the adopting resolution. The effective date shall does not retroactively affect a contribution rate. The Board's minutes relative to all actuarial assumptions used by the System shall also be are also considered part of the Plan documentation governing this the Retirement System, with the result of precluding any employer discretion in the determination of benefits payable hereunder, under this section, consistent with Section 401(a)(25) of the Internal Revenue Code.

(n)        Immediately after the establishment of the Retirement System the actuary shall make such investigation of the mortality, service and compensation experience of the members of the System as he shall recommend and the Board of Trustees shall authorize, and on the basis of such investigation he shall recommend for adoption by the Board of Trustees such tables and such rates as are required in subsection (o), paragraphs (1) and (2), of this section. The Board of Trustees shall adopt tables and certify rates, and as soon as practicable thereafter the actuary shall make a valuation based on such tables and rates of the assets and liabilities of the funds created by this Chapter.

(o)        In the year 1945, and at least once in each five‑year period thereafter, At least once every five years, the actuary shall make an actuarial investigation into the mortality, service service, and compensation experience of the members and beneficiaries of the Retirement System and shall make a valuation of the assets and liabilities of the funds of the System. Taking into account the result of such the investigation and valuation, the Board of Trustees shall do all both of the following:

(1)        Adopt any necessary mortality, service, or other tables and any necessary contribution‑based benefit cap factors for the Retirement System.

(2)        Certify the rates of contributions payable by the participating units on account of new entrants at various ages.

In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets.

(p)        On the basis of the tables and interest assumption rate as adopted by the Board of Trustees, the actuary shall make an annual valuation of the assets and liabilities of the funds of the System created by this Chapter. The annual valuation shall include a supplementary section that provides an analysis of assets on a market basis using the 30‑year treasury rate as of December 31 of the year of the valuation as the discount rate. In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets.

(q)        Notwithstanding any law, rule, regulation or policy law to the contrary, any board, agency, department, institution institution, or subdivision of the State maintaining lists of names and addresses in the administration of their its programs may upon request provide to the Retirement System information limited to social security numbers, current name and addresses of persons identified by the System as members, beneficiaries, and beneficiaries of members of the System. The System shall use such this information for the sole purpose of notifying members, beneficiaries, and beneficiaries of members of their the person's rights to and accruals of benefits in the Retirement System. Any social security number, current name name, and address so obtained and obtained, any other information concluded therefrom and the source thereof shall be treated as from this information, and the source of this information are confidential and shall not be divulged by any employee of the Retirement System or of the Department of State Treasurer except as may be necessary to notify the member, beneficiary, or beneficiary of the member of their the person's rights to and accruals of benefits in the Retirement System. Any person, officer, employee employee, or former employee violating this provision shall be is guilty of a Class 1 misdemeanor; and if such the offending person be is a public official or employee, he the person shall be dismissed from office or employment and shall not hold any public office or employment in this State for a period of five years thereafter.

(r)        Fraud Investigations and Compliance Investigations. – Access to Persons and Records. – In the course of conducting a fraud investigation or compliance investigation, the Retirement Systems Division, or authorized representatives who are assisting the Retirement Systems Division staff, shall:has all of the following powers:

(1)        Have ready To have access to persons and may to examine and copy all books, records, reports, vouchers, correspondence, files, personnel files, investments, and any other documentation of any employer. The review of State tax returns shall be limited to matters of official business, and the Division's report shall not violate the confidentiality provisions of tax laws.

(2)        Have such access To have access to persons, records, papers, reports, vouchers, correspondence, books, and any other documentation that is in the possession of any individual, private corporation, institution, association, board, or other organization which pertain pertaining to the following:

a.         Amounts received pursuant to a grant or contract from the federal government, the State, or its political subdivisions.

b.         Amounts received, disbursed, or otherwise handled on behalf of the federal government or the State.

(3)        Have the authority, and shall be provided with ready access, to examine To access, examine, and inspect all property, equipment, and facilities in the possession of any employer agency or any individual, private corporation, institution, association, board, or other organization that were furnished or otherwise provided through grant, contract, or any other type of funding by the employer agency.

With respect to the requirements of sub‑subdivision (2)b. of this subsection, providers of social and medical services to a beneficiary shall make copies of records they maintain for services provided to a beneficiary available to the Retirement Systems Division, or to the authorized representatives who are assisting the Retirement Systems Division staff. Copies of the records of social and medical services provided to a beneficiary will permit verification of the health or other status of a beneficiary as required for the payment of benefits under Article 3 of this Chapter. The Retirement Systems Division, or authorized representatives who are assisting the Retirement Systems Division staff, shall request records in writing by providing the name of each beneficiary for whom records are sought, the purpose of the request, the statutory authority for the request, and a reasonable period of time for the production of record copies by the provider. A provider may charge, and the Retirement Systems Division, or authorized representatives who are assisting the Retirement Systems Division staff, shall, in accordance with G.S. 90‑411, pay a reasonable fee to the provider for copies of the records provided in accordance with this subsection.

(s)        Fraud Investigative Reports and Work Papers or Compliance Investigative Reports and Work Papers. – The Director of the Retirement Systems Division shall maintain for 10 years a complete file of all fraud investigative reports, compliance investigative reports, and reports of other examinations, investigations, surveys, and reviews issued under the Director's authority. Fraud investigation work papers, compliance investigation work papers, and other evidence or related supportive material directly pertaining to the work of the Retirement Systems Division of the Department of State Treasurer shall be retained according to an agreement between the Director of Retirement and State Archives. To promote intergovernmental cooperation and avoid unnecessary duplication of fraud or compliance investigative effort, and notwithstanding local unit personnel policies to the contrary, pertinent work papers and other supportive material relating to issued fraud investigation reports or compliance investigative reports may be, at the discretion of the Director of Retirement and unless otherwise prohibited by law, made available for inspection by duly authorized representatives of the State and federal government who desire access to and inspection of such the records in connection with some matter officially before them, including criminal investigations. Except as provided in this section, or upon an order issued in Wake County Superior Court upon 10 days' notice and hearing finding that access is necessary to a proper administration of justice, fraud or compliance investigation work papers and related supportive material shall be kept confidential, including any information developed as a part of the investigation.

(t)        Fraud Reports May Be Anonymous. – The identity of any person reporting fraud, waste, and abuse to the Retirement Systems Division shall be kept confidential and shall not be maintained as a public record within the meaning of G.S. 132‑1.

(u)        Immunity. – A person serving on the Local Governmental Employees' Retirement System Board of Trustees shall be is immune individually from civil liability for monetary damages, except to the extent covered by insurance, for any act or failure to act arising out of that service, except where unless any of the following apply:applies:

(1)        The person was not acting within the scope of that person's official duties.

(2)        The person was not acting in good faith.

(3)        The person committed gross negligence or willful or wanton misconduct that resulted in the damages or injury.

(4)        The person derived an improper personal financial benefit, either directly or indirectly, from the transaction.

(5)        The person incurred the liability from the operation of a motor vehicle.

SECTION 16.(b)  G.S. 135‑6 reads as rewritten:

§ 135‑6.  Administration.

(a)        Administration by Board of Trustees; Corporate Name; Rights and Powers; Tax Exemption. – The general administration and responsibility for the proper operation of the Retirement System and for making effective the provisions of the Chapter are hereby vested in a Board of Trustees which shall be organized immediately after a majority of the trustees provided for in this section shall have qualified and taken the oath of office.Trustees.

The Board of Trustees shall be is a body politic and corporate under the name Board Board of Trustees Teachers' and State Employees' Retirement System; and as System. As a body politic and corporate shall have corporate, it has the right to sue and be sued, shall have perpetual succession and has perpetual succession, shall have a common seal, and in said in its corporate name shall be able and capable in law to may take, demand, receive receive, and possess all kinds of real and personal property necessary and proper for its corporate purposes, and to may bargain, sell, grant, alien, transfer, or dispose of all such real and personal property as it may lawfully acquire. lawfully acquired by it. All such property owned or acquired by said body politic and corporate shall be it is exempt from all taxes imposed by the State or any political subdivision thereof, and shall not be thereof and is not subject to income taxes.

(b)        Membership of Board; Terms. – The Board shall consist of the following 13 members:

…

(4)        Two members appointed by the General Assembly, one appointed upon the recommendation of the Speaker of the House of Representatives, and one appointed upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121. Neither of these members may shall be an active or retired teacher or State employee or an employee of a unit of local government. The initial members appointed by the General Assembly shall serve for terms expiring June 30, 1983. Thereafter, their successors shall serve for two‑year terms beginning July 1 of odd‑numbered years. Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120‑122.

(c)        Compensation of Trustees. – The trustees shall be paid during sessions of the Board at the prevailing rate established for members of State boards and commissions, and they shall be reimbursed for all necessary expenses that they incur through service on the Board.

(d)       Oath. – Each trustee other than the ex officio members shall, within 10 days after his appointment, take an oath of office, that, to, so far as it devolves upon him, he will the trustee, diligently and honestly administer the affairs of the said Board, and that he will Board and to not knowingly violate or willingly permit to be violated any of the provisions of law applicable to the Retirement System. Such The oath shall be subscribed to by the member trustee making it, and certified by the officer before whom it is taken, and immediately filed in the office of the Secretary of State.

(e)        Voting Rights. – Each trustee shall be is entitled to one vote in the Board. A majority of affirmative votes by trustees in attendance shall be is necessary for a decision by the trustees at any meeting of the Board. A vote may only be taken if at least seven members of the Board are in attendance, in person or by telephone, for the meeting at which a vote on a decision is taken.

(e1)      Effect of Vote Related to Contributory Death Benefit. – No decision of the Board related to the Contributory Death Benefit provided for under this Chapter, Chapter 120, or Chapter 127A of the General Statutes, shall take takes effect unless and until this same decision has been made and voted on by the Board of Trustees of the Local Governmental Employees Retirement System.

(f)        Rules and Regulations. – Rules. – Subject to the limitations of this Chapter, the Board of Trustees shall, from time to time, establish rules and regulations shall adopt rules for the administration of the funds created by this Chapter and for the transaction of its business. The Board of Trustees shall also, from time to time, shall, in its discretion, adopt rules and regulations to prevent injustices and inequalities which that might otherwise arise in the administration of this Chapter.

(g)        Officers and Other Employees; Salaries and Expenses. – The State Treasurer shall be ex officio chair of the Board of Trustees and shall appoint a director. The Board of Trustees shall engage such actuarial and other service as shall be actuarial and other services required to transact the business of the Retirement System. The compensation of all persons, other than the director, engaged by the Board of Trustees, Board, and all other expenses of the Board necessary for the operation of the Retirement System, shall be paid at such rates and in such amounts as the Board of Trustees shall approve, rates and in amounts approved by the Board, subject to the approval of the Director of the Budget.

(h)        Actuarial Data. – The Board of Trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the various funds of the Retirement System, System and for checking the experience of the System.

(i)         Record of Proceedings; Annual Report. – The Board of Trustees shall keep a record of all of its proceedings which that shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the Retirement System for the preceding year, the amount of the accumulated cash and securities of the System, and the last balance sheet showing the financial condition of the System by means of an actuarial valuation of the assets and liabilities of the Retirement System. It shall also publish annually a report on supplemental insurance offerings that are made available to retirees and the extent to which retirees participate in those offerings.

(j)         Legal Adviser. – The Attorney General shall be is the legal adviser of the Board of Trustees.

(k)        Medical Board. – The Board of Trustees shall designate a medical board Medical Board to be composed of not less than three nor more than five physicians not eligible to participate in the Retirement System. The Board of Trustees may structure appointment requirements and term durations for those medical board Medical Board members. If required, other physicians may be employed to report on special cases. The medical board Medical Board shall arrange for and pass upon all medical examinations required under the provisions of this Chapter, and shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and shall report in writing to the Board of Trustees its conclusion and recommendations upon all the matters referred to it, except as otherwise provided in this Chapter. A person serving on the medical board shall be Medical Board is immune individually from civil liability for monetary damages, except to the extent covered by insurance, for any act or failure to act arising out of that service, except where unless any of the following apply:applies:

(1)        The person was not acting within the scope of that person's official duties.

(2)        The person was not acting in good faith.

(3)        The person committed gross negligence or willful or wanton misconduct that resulted in the damages or injury.

(4)        The person derived an improper financial benefit, either directly or indirectly, from the transaction.

(5)        The person incurred the liability from the operation of a motor vehicle.

(l)         Duties of Actuary. – The Board of Trustees shall designate an actuary who shall to be the technical adviser of the Board of Trustees on matters regarding the operation of the funds created by the provisions of this Chapter and shall perform such other duties as are required in connection therewith. this Chapter. The experience studies and all other actuarial calculations required by this Chapter, and all the assumptions used by the System's actuary, including mortality tables, interest rates, annuity factors, the contribution‑based benefit cap factor, and employer contribution rates, shall be set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees. Board. Notwithstanding Article 2A of Chapter 150B of the General Statutes, these materials, once accepted by the Board, shall be are considered part of the Plan documentation governing this the Retirement System and shall be are effective the first day of the month following adoption unless a different date is specified in the adopting resolution. The effective date shall does not retroactively affect a contribution rate. The Board's minutes relative to all actuarial assumptions used by the System shall also be are also considered part of the Plan documentation governing this the Retirement System, with the result of precluding any employer discretion in the determination of benefits payable hereunder, under this section, consistent with Section 401(a)(25) of the Internal Revenue Code.

(m)       Immediately after the establishment of the Retirement System the actuary shall make such investigation of the mortality, service and compensation experience of the members of the System as he shall recommend and the Board of Trustees shall authorize, and on the basis of such investigation he shall recommend for adoption by the Board of Trustees such tables and such rates as are required in subsection (n), subdivisions (1) and (2), of this section. The Board of Trustees shall adopt tables and certify rates, and as soon as practicable thereafter the actuary shall make a valuation based on such tables and rates of the assets and liabilities of the funds created by this Chapter.

(n)        In 1943, and at least once in each five‑year period thereafter, At least once every five years, the actuary shall complete an actuarial experience review of the mortality, service service, and compensation experience of the members and beneficiaries of the Retirement System and shall make a valuation of the assets and liabilities of the funds of the System. Taking into account the result of the actuarial investigation and valuation, the Board of Trustees shall do all both of the following:

(1)        Adopt any necessary mortality, service, or other tables and any necessary contribution‑based benefit cap factors for the Retirement System.

(2)        Certify the rates of contributions payable by the State of North Carolina on account of new entrants at various ages.

In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets.

…

(o)        On the basis of the tables and interest assumption rate as adopted by the Board of Trustees, the actuary shall make an annual valuation of the assets and liabilities of the funds of the System created by this Chapter. The annual valuation shall include a supplementary section that provides an analysis of assets on a market basis using the 30‑year treasury rate as of December 31 of the year of the valuation as the discount rate. In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets.

(p)        Notwithstanding any law, rule, regulation or policy law to the contrary, any board, agency, department, institution institution, or subdivision of the State maintaining lists of names and addresses in the administration of their its programs may upon request provide to the Retirement System information limited to social security numbers, current name and addresses of persons identified by the System as members, beneficiaries, and beneficiaries of members of the System. The System shall use such this information for the sole purpose of notifying members, beneficiaries, and beneficiaries of members of their the person's rights to and accruals of benefits in the Retirement System. Any social security number, current name name, and address so obtained and obtained, any other information concluded therefrom and the source thereof shall be treated as from this information, and the source of this information are confidential and shall not be divulged by any employee of the Retirement System or of the Department of State Treasurer except as may be necessary to notify the member, beneficiary, or beneficiary of the member of their the person's rights to and accruals of benefits in the Retirement System. Any person, officer, employee employee, or former employee violating this provision shall be is guilty of a Class 1 misdemeanor; and if such the offending person be is a public official or employee, he the person shall be dismissed from office or employment and shall not hold any public office or employment in this State for a period of five years thereafter.

(q)        Compliance Investigations and Fraud Investigations – Access to Persons and Records. – In the course of conducting a compliance investigation or a fraud investigation, the Retirement Systems Division, or authorized representatives who are assisting the Retirement Systems Division staff, shall:has all of the following powers:

(1)        Have ready To have access to persons and may to examine and copy all books, records, reports, vouchers, correspondence, files, personnel files, investments, and any other documentation of any employer. The review of State tax returns shall be limited to matters of official business, and the Division's report shall not violate the confidentiality provisions of tax laws.

(2)        Have such To have access to persons, records, papers, reports, vouchers, correspondence, books, and any other documentation that is in the possession of any individual, private corporation, institution, association, board, or other organization that pertain pertaining to the following:

a.         Amounts received pursuant to a grant or contract from the federal government, the State, or its political subdivisions.

b.         Amounts received, disbursed, or otherwise handled on behalf of the federal government or the State.

(3)        Have the authority, and shall be provided with ready access, to examine To access, examine, and inspect all property, equipment, and facilities in the possession of any employer agency or any individual, private corporation, institution, association, board, or other organization that were furnished or otherwise provided through grant, contract, or any other type of funding by the employer agency.

With respect to the requirements of sub‑subdivision (2)b. of this subsection, providers of social and medical services to a beneficiary shall make copies of records they maintain for services provided to a beneficiary available to the Retirement Systems Division, or to the authorized representatives who are assisting the Retirement Systems Division staff. Copies of the records of social and medical services provided to a beneficiary will permit verification of the health or other status of a beneficiary as required for the payment of benefits under Article 1, Article 4, or Article 6 of this Chapter. The Retirement Systems Division, or authorized representatives who are assisting the Retirement Systems Division staff, shall request records in writing by providing the name of each beneficiary for whom records are sought, the purpose of the request, the statutory authority for the request, and a reasonable period of time for the production of record copies by the provider. A provider may charge, and the Retirement Systems Division, or authorized representatives who are assisting the Retirement Systems Division staff, shall, in accordance with G.S. 90‑411, pay a reasonable fee to the provider for copies of the records provided in accordance with this subsection.

(r)        Compliance or Fraud Investigative Reports and Work Papers. – The Director of the Retirement Systems Division shall maintain for 10 years a complete file of all compliance investigative reports, fraud investigative reports and reports of other examinations, investigations, surveys, and reviews issued under the Director's authority. Fraud or compliance investigation work papers and other evidence or related supportive material directly pertaining to the work of the Retirement Systems Division of the Department of State Treasurer shall be retained according to an agreement between the Director of Retirement and State Archives. To promote intergovernmental cooperation and avoid unnecessary duplication of fraud and compliance investigative efforts, and notwithstanding local unit personnel policies to the contrary, pertinent work papers and other supportive material relating to issued fraud or compliance investigation reports may be, at the discretion of the Director of Retirement and unless otherwise prohibited by law, made available for inspection by duly authorized representatives of the State and federal government who desire access to and inspection of such the records in connection with some matter officially before them, including criminal investigations. Except as provided in this section, or upon an order issued in Wake County Superior Court upon 10 days' notice and hearing finding that access is necessary to a proper administration of justice, fraud and compliance investigation work papers and related supportive material shall be kept confidential, including any information developed as a part of the investigation.

(s)        Fraud Reports May Be Anonymous. – The identity of any person reporting fraud, waste, and abuse to the Retirement Systems Division shall be kept confidential and shall not be maintained as a public record within the meaning of G.S. 132‑1.

(t)        Immunity. – A person serving on the Teachers' and State Employees' Retirement System Board of Trustees shall be is immune individually from civil liability for monetary damages, except to the extent covered by insurance, for any act or failure to act arising out of that service, except where unless any of the following apply:applies:

(1)        The person was not acting within the scope of that person's official duties.

(2)        The person was not acting in good faith.

(3)        The person committed gross negligence or willful or wanton misconduct that resulted in the damages or injury.

(4)        The person derived an improper personal financial benefit, either directly or indirectly, from the transaction.

(5)        The person incurred the liability from the operation of a motor vehicle.

(u)        Notwithstanding G.S. 114‑2.3 and G.S. 147‑17, the Treasurer may designate legal counsel, including private counsel, to represent the interests of the administration of benefit programs under this Chapter.

SECTION 16.(c)  G.S. 153A‑93 reads as rewritten:

§ 153A‑93.  Retirement benefits.

(a)        The board of commissioners may provide for enrolling county officers and employees in the Local Governmental Employees' Retirement System, the Law‑Enforcement Officers' Benefit and Relief Fund, the Firemen's Pension Fund, North Carolina Firefighters' and Rescue Squad Workers' Pension Fund, or a retirement plan certified to be actuarially sound by a qualified actuary as defined in subsection (c) of this section and may make payments into such a the retirement system or plan on behalf of its employees.

(b)        No county may shall make payments into a retirement system or plan established or authorized by a local act unless the system or plan is certified to be actuarially sound by a qualified actuary as defined in subsection (c) of this section.

(c)        A qualified actuary means a member of the American Academy of Actuaries or an individual certified as qualified by the Commissioner of Insurance.

(d)       A county which that is providing health insurance under G.S. 153A‑92(d) may provide health insurance for all or any class of former officers and employees of the county. Such The health insurance may be paid entirely by the county, partly by the county and former officer or employee, or entirely by the former officer or employee, at the option of the county.

(d1)     On and after October 1, 2009, a A county which that is providing health insurance under G.S. 153A‑92(d) may provide health insurance for all or any class of former officers and employees of the county who have obtained at least 10 years of service with the county prior to separation from the county and who are not receiving benefits under subsection (a) of this section. Such The health insurance may be paid entirely by the county, partly by the county and former officer or employee, or entirely by the former officer or employee, at the option of the county.

(d2)     Notwithstanding subsection (d) of this section, any county that has elected to and is covering its active employees only, or its active and retired employees, under the State Health Plan, or elects such coverage under the Plan, may shall not provide health insurance through the State Health Plan to all or any class of former officers and employees who are not receiving benefits under subsection (a) of this section. The county may, however, provide health insurance to such the former officers and employees by any other means authorized by G.S. 153A‑92(d). The health insurance premium may be paid entirely by the county, partly by the county and former officer or employee, or entirely by the former officer or employee, at the option of the county.

(e)        The board of commissioners may provide a deferred compensation plan. Where If the board of commissioners provides a deferred compensation plan, the investment of funds for the plan shall be is exempt from the provisions of G.S. 159‑30 and G.S. 159‑31. Counties may invest deferred compensation plan funds in life insurance, fixed or variable annuities and retirement income contracts, regulated investment trusts, or other forms of investments approved by the Board of Trustees of the North Carolina Public Employee Deferred Compensation Plan.

SECTION 16.(d)  G.S. 160A‑163 reads as rewritten:

§ 160A‑163.  Retirement benefits.

(a)        The council may provide for enrolling city employees in the Local Governmental Employees' Retirement System, the Law‑Enforcement Officers' Benefit and Relief Fund, the Firemen's Pension Fund, North Carolina Firefighters' and Rescue Squad Workers' Pension Fund, or a retirement plan certified to be actuarially sound by a qualified actuary as defined in subsection (d) of this section, section and may make payments into any such the retirement system or plan on behalf of its employees. The city may also supplement from local funds benefits provided by the Local Governmental Employees' Retirement System, the Law‑Enforcement Officers' Benefit and Relief Fund, or the Firemen's Pension Fund.North Carolina Firefighters' and Rescue Squad Workers' Pension Fund.

(b)        The council may create and administer a special fund for the relief of members of the police and fire departments who have been retired for age, or for disability or injury incurred in the line of duty, but any such of these funds established on or after January 1, 1972, shall be are subject to the provisions of subsection (c) of this section. The council may receive donations and devises in aid of any such the fund, shall provide for its permanence and increase, and shall prescribe and regulate the conditions under which benefits may be paid.

(c)        No city shall make payments into any retirement system or plan established or authorized by local act of the General Assembly unless the plan is certified to be actuarially sound by a qualified actuary as defined in subsection (d) of this section.

(d)       A qualified actuary means an individual certified as qualified by the Commissioner of Insurance, or any member of the American Academy of Actuaries.

(e)        A city which that is providing health insurance under G.S. 160A‑162(b) may provide health insurance for all or any class of former employees of the city who are receiving benefits under subsection (a) of this section or who are 65 years of age or older. Such The health insurance may be paid entirely by the city, partly by the city and former employee, or entirely by the former employee, at the option of the city.

(f)        The council may provide a deferred compensation plan. Where If the council provides a deferred compensation plan, the investment of funds for the plan shall be is exempt from the provisions of G.S. 159‑30 and G.S. 159‑31. Cities may invest deferred compensation plan funds in life insurance, fixed or variable annuities and retirement income contracts, regulated investment trusts, or other forms of investments approved by the Board of Trustees of the North Carolina Public Employee Deferred Compensation Plan.

(g)        Should If the council provide provides for a retirement plan, a plan which that supplements a State‑administered plan, or a special fund, any benefits payable from such the plan or fund on account of the disability of city employees may be restricted with regard to the amount which that may be earned by the disabled former employee in any other employment, but only to the extent that the earnings of disability beneficiaries in the Local Governmental Employees' Retirement System are restricted in accordance with G.S. 128‑27(e)(1).

SECTION 17.  G.S. 143‑215.107F, as enacted by Section 12.6 of S.L. 2023‑134, reads as rewritten:

§ 143‑215.107F.  Prohibit requirements for control of emissions from new motor vehicles.

Notwithstanding any authorization granted under 42 U.S.C. § 7507, no agency of the State, including the Department of Environmental Quality, the Environmental Management Commission, the Department of Transportation, or the Department of Administration, may adopt and enforce standards relating to control of emissions from new motor vehicles or new motor vehicle engines, including requirements that mandate the sale or purchase of zero‑emission vehicles, or electric vehicles as defined in G.S. 20‑4.01. The prohibitions of this section shall not be construed to effect do not affect requirements for the vehicle emissions testing and maintenance program established pursuant to G.S. 143‑215.107A.

SECTION 18.  Article 29A of Chapter 143 of the General Statutes is repealed.

SECTION 19.  G.S. 144‑9(b) reads as rewritten:

(b)      The Department of Military and Veterans Affairs shall accept, at no charge, a worn, tattered, or otherwise damaged flag of the United States of America or the State of North Carolina from a citizen of the State and shall make arrangements for its respectful disposal. The Department shall establish a flag retirement program to encourage citizens to send in or drop off worn, tattered, or otherwise damaged flags at the Department's office in Raleigh and at any Veterans Home or Veterans Cemetery in the State and may establish other locations for flag drop‑off as it deems appropriate. The Department shall advertise the flag retirement program on its website and by printed posters placed at all flag drop‑off locations.

Department

SECTION 20.(a)  G.S. 150B‑37(c) is recodified as the last sentence of G.S. 150B‑34(a).

SECTION 20.(b)  G.S. 150B‑34, as amended by subsection (a) of this section, reads as rewritten:

§ 150B‑34.  Final decision or order.

(a)        In each contested case the administrative law judge shall make a final decision or order that contains findings of fact and conclusions of law. The administrative law judge shall decide the case based upon the preponderance of the evidence, giving due regard to the demonstrated knowledge and expertise of the agency with respect to facts and inferences within the specialized knowledge of the agency. The Office of Administrative Hearings shall forward a copy of the administrative law judge's final decision or order to each party.

(b)        Repealed by Session Laws 1991, c. 35, s. 6.

(c)        Repealed by Session Laws 2011‑398, s. 18. For effective date and applicability, see editor's note.

(d)       Except for the exemptions contained in G.S. 150B‑1, the provisions of this section regarding the decision of the administrative law judge shall apply only to agencies subject to Article 3 of this Chapter, notwithstanding any other provisions to the contrary relating to recommended decisions by administrative law judges.

….

SECTION 20.(c)  G.S. 90A‑30 reads as rewritten:

§ 90A‑30.  Penalties; remedies; contested cases.

(a)        Upon the recommendation of the Board of Certification, the Secretary of Environmental Quality or a delegated representative may impose an administrative, civil penalty on any person, corporation, company, association, partnership, unit of local government, State agency, federal agency, or other legal entity who that violates G.S. 90A‑29(a). Each day of a continued violation shall constitute constitutes a separate violation. The penalty shall not exceed one hundred dollars ($100.00) for each day such the violation continues. No penalty shall be assessed until the person alleged to be in violation has been notified of the violation.

The clear proceeds of penalties imposed pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

(b)        Any person wishing to contest a penalty issued under this section shall be is entitled to an administrative hearing and judicial review conducted according to the procedures outlined in Articles 3 and 4 of Chapter 150B of the General Statutes.

(c)        The Secretary may bring a civil action in the superior court of the county in which the violation is alleged to have occurred to recover the amount of the administrative penalty whenever if either of the following applies to an owner or person in control of a water treatment facilityfacility:

(1)        Who The owner or person has not requested an administrative hearing and fails to pay the penalty within 60 days after being notified of such penalty, or the penalty.

(2)        Who The owner or person has requested an administrative hearing and fails to pay the penalty within 60 days after service of the Office of Administrative Hearings forwards a written copy of the decision as provided in G.S. 150B‑36.G.S. 150B‑34.

(d)       Notwithstanding any other provision of law, this section imposes the only penalty or sanction, civil or criminal, for violations of G.S. 90A‑29(a) or for the failure to meet any other legal requirement for a water system to have a certified operator in responsible charge.

SECTION 20.(d)  G.S. 104E‑24 reads as rewritten:

§ 104E‑24.  Administrative penalties.

(a)        The Department may impose an administrative penalty on any person:a person that does either of the following:

(1)        Who fails Fails to comply with this Chapter, any order issued hereunder, under it, or any rules adopted pursuant to this Chapter;it.

(2)        Who refuses Refuses to allow an authorized representative of the Radiation Protection Commission or the Department of Health and Human Services a right of entry as provided for in G.S. 104E‑11 or impounding materials as provided for in G.S. 104E‑14.

(b)        Each day of a continuing violation shall constitute constitutes a separate violation. Such The penalty shall not exceed ten thousand dollars ($10,000) per day. In determining the amount of the penalty, the Department shall consider the degree and extent of the harm caused by the violation. Any person assessed a penalty shall be notified of the assessment by registered or certified mail, and the notice shall specify the reasons for the assessment.

(c)        Any person wishing to contest a penalty or order issued under this section shall be is entitled to an administrative hearing and judicial review in accordance with the procedures outlined in Articles 3, 3A, 3 and 4 of Chapter 150B of the General Statutes.

(d)       The Secretary may bring a civil action in the superior court of the county in which such the violation is alleged to have occurred to recover the amount of the administrative penalty whenever a person:if either of the following applies:

(1)        Who The person has not requested an administrative hearing and fails to pay the penalty within 60 days after being notified of such penalty, orthe penalty.

(2)        Who The person has requested an administrative hearing and fails to pay the penalty within 60 days after service of the Office of Administrative Hearings forwards a written copy of the decision as provided in G.S. 150B‑36.G.S. 150B‑34.

(e)        The clear proceeds of penalties imposed pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

SECTION 20.(e)  G.S. 108A‑70.9A(f) reads as rewritten:

(f)       Final Decision. – After a hearing before an administrative law judge, the judge OAH shall return forward a written copy of the administrative law judge's decision to the Department and the recipient in accordance with G.S. 150B‑37. G.S. 150B‑34. The Department decision shall notify the Department and the recipient of the final decision and of the right to judicial review of the decision pursuant to Article 4 of Chapter 150B of the General Statutes.

SECTION 20.(f)  G.S. 108A‑70.9B(g) reads as rewritten:

(g)      Decision. – The administrative law judge assigned to a contested Medicaid case shall hear and decide the case without unnecessary delay. The judge shall prepare a written decision and send shall forward a copy of it to the parties in accordance with G.S. 150B‑37.G.S. 150B‑34.

SECTION 20.(g)  G.S. 108D‑16 reads as rewritten:

§ 108D‑16.  Notice of final decision and right to seek judicial review.

The administrative law judge assigned to conduct a contested case hearing under G.S. 108D‑15 shall hear and decide the case without unnecessary delay. The judge shall prepare a written decision that includes findings of fact and conclusions of law and send shall forward a copy of it to the parties in accordance with G.S. 150B‑37. G.S. 150B‑34. The written decision shall notify the parties of the final decision and of the right of the enrollee and the managed care entity to seek judicial review of the decision under Article 4 of Chapter 150B of the General Statutes.

SECTION 20.(h)  G.S. 122C‑24 reads as rewritten:

§ 122C‑24.  Adverse action on a license.

(a)        The Secretary may deny, suspend, amend, or revoke a license in any case in which the Secretary finds that there has been a substantial failure to comply with any provision of this Article or other applicable statutes or any applicable rule adopted pursuant to these statutes. Action[s] Actions under this section and appeals of those actions shall be in accordance with rules of the Commission and Chapter 150B of the General Statutes.

(b)        When an appeal is filed concerning the denial, suspension, amendment, or revocation of a license, a copy of the proposal for decision shall be sent to the Chairman of the Commission in addition to the parties specified in G.S. 150B‑34. The Chairman or members of the Commission designated by the Chairman may submit for the Secretary's consideration written or oral comments concerning the proposal prior to the issuance of a final agency decision in accordance with G.S. 150B‑36.

SECTION 20.(i)  G.S. 122C‑24.1 reads as rewritten:

§ 122C‑24.1.  Penalties; remedies.

…

(h)        The Secretary may bring a civil action in the superior court of the county wherein where the violation occurred to recover the amount of the administrative penalty whenever if either of the following applies to a facility:

(1)        Which The facility has not requested an administrative hearing and fails to pay the penalty within 60 days after being notified of the penalty, orpenalty.

(2)        Which The facility has requested an administrative hearing and fails to pay the penalty within 60 days after receipt of the Office of Administrative Hearings forwards a written copy of the decision as provided in G.S. 150B‑37.G.S. 150B‑34.

…

(j)         The clear proceeds of civil penalties provided for in this section shall be remitted to the State Treasurer for deposit Civil Penalty and Forfeiture Fund in accordance with State law.G.S. 115C‑457.2.

….

SECTION 20.(j)  G.S. 131D‑34 reads as rewritten:

§ 131D‑34.  Penalties; remedies.

…

(g)        The Secretary may bring a civil action in the superior court of the county wherein where the violation occurred to recover the amount of the administrative penalty whenever if either of the following applies to a facility:

(1)        Which The facility has not requested an administrative hearing and fails to pay the penalty within 60 days after being notified of the penalty, orpenalty.

(2)        Which The facility has requested an administrative hearing and fails to pay the penalty within 60 days after receipt of the Office of Administrative Hearings forwards a written copy of the decision as provided in G.S. 150B‑36.G.S. 150B‑34.

…

(i)         The clear proceeds of civil penalties provided for in this section shall be remitted to the State Treasurer for deposit Civil Penalty and Forfeiture Fund in accordance with State law.G.S. 115C‑457.2.

SECTION 20.(k)  G.S. 131E‑129(f) reads as rewritten:

(f)       The Secretary may bring a civil action in the superior court of the county wherein where the violation occurred to recover the amount of the administrative penalty whenever if either of the following applies to a facility:

(1)        Which The facility has not requested an administrative hearing and fails to pay the penalty within 60 days after being notified of the penalty; orpenalty.

(2)        Which The facility has requested an administrative hearing and fails to pay the penalty within 60 days after receipt of the Office of Administrative Hearings forwards a written copy of the decision as provided in G.S. 150B‑36.G.S. 150B‑34.

SECTION 20.(l)  G.S. 143‑215.94G reads as rewritten:

§ 143‑215.94G.  Authority of the Department to engage in cleanups; actions for fund reimbursement.

(a)        The If there is a discharge or release of petroleum from any of the following, the Department may use staff, equipment, or materials under its control or provided by other cooperating federal, State, or local agencies and may contract with any agent or contractor it deems appropriate to investigate a release, to develop and implement a cleanup plan, to provide interim alternative sources of drinking water to third parties, and to pay the initial costs for providing permanent alternative sources of drinking water to third parties, and shall pay the costs resulting from the Commercial Fund whenever there is a discharge or release of petroleum from any of the following:parties:

(1)        A noncommercial underground storage tank.

(2)        An underground storage tank whose owner or operator cannot be identified or located.

(3)        An underground storage tank whose owner or operator fails to proceed as required by G.S. 143‑215.94E(a).

(4)        A commercial underground storage tank taken out of operation prior to 1 January 1974 if, when the discharge or release is discovered, neither the owner nor operator owns or leases the land on which the underground storage tank is located.

(a1)      Every State agency shall provide to the Department to the maximum extent feasible such any staff, equipment, and materials as may be that are available and useful to the development and implementation of a cleanup program.

(a2)      The cost of any action authorized under subsection (a) of this section shall be paid, to the extent funds are available, from the following sources in the order listed:

(1)        Any funds to which the State is entitled under any federal program providing for the cleanup of petroleum discharges or releases from underground storage tanks, including, but not limited to, the Leaking Underground Storage Tank Trust Fund established pursuant to 26 U.S.C. § 4081 and 42 U.S.C. § 6991b(h).

(2)        The Commercial Fund.

(a3)      Expired October 1, 2011, pursuant to Session Laws 2001‑442, s. 8, as amended by Session Laws 2008‑195, s. 11.

(b)        Whenever the discharge or release of a petroleum product is from a commercial underground storage tank, the Department may supervise the cleanup of environmental damage required by G.S. 143‑215.94E(a). If the owner or operator elects to have the Commercial Fund reimburse or pay for any costs allowed under subsection (b) or (b1) of G.S. 143‑215.94B, the Department shall require the owner or operator to submit documentation of all expenditures claimed for the purposes of establishing that the owner or operator has spent the amounts required to be paid by the owner or operator pursuant to and in accordance with G.S. 143‑215.94E(b). The Department shall allow credit for all expenditures that the Department determines to be reasonable and necessary. The Department may shall not pay for any costs for which the Commercial Fund was established until the owner or operator has paid the amounts specified in G.S. 143‑215.94E(b).

(c)        The Secretary shall keep a record of all expenses incurred for the services of State personnel and for the use of the State's equipment and material.

(d)       The Secretary shall seek reimbursement through any legal means available, for:available for the following:

(1)        Any costs not authorized to be paid from the Commercial Fund;Fund.

(2)        The amounts provided for in G.S. 143‑215.94B(b) or G.S. 143‑215.94B(b1) required to be paid for by the owner or operator pursuant to G.S. 143‑215.94E(b) where if the owner or operator of a commercial underground storage tank is later identified or located;located.

(3)        The amounts provided for in G.S. 143‑215.94B(b) or G.S. 143‑215.94B(b1) required to be paid for by the owner or operator pursuant to G.S. 143‑215.94E(b) where if the owner or operator of a commercial underground storage tank failed to proceed as required by G.S. 143‑215.94E(a);G.S. 143‑215.94E(a).

(3a)      The amounts provided for by G.S. 143‑215.94B(b)(5) required to be paid by the owner or operator to third parties for the cost of providing interim alternative sources of drinking water to third parties and the initial cost of providing permanent alternative sources of drinking water to third parties;parties.

(4)        Any funds due under G.S. 143‑215.94E(g); andG.S. 143‑215.94E(g).

(5)        Any funds to which the State is entitled under any federal program providing for the cleanup of petroleum discharges or releases from underground storage tanks; [and]tanks.

(6)        The amounts provided for in G.S. 143‑215.94B(b5) and G.S. 143‑215.94D(b2).

(e)        In the event that a civil action is commenced to secure reimbursement pursuant to subdivisions (1) through (4) of subsection (d) of this section, the Secretary may recover, in addition to any amount due, the costs of the action, including but not limited to reasonable attorney's attorneys' fees and investigation expenses. Any monies received or recovered as reimbursement shall be paid into the appropriate fund or other source from which the expenditures were made.

(f)        Repealed by Session Laws 2015‑241, s. 14.16A(f), effective December 31, 2016.

(g)        If the Department paid or reimbursed costs that are not authorized to be paid or reimbursed under G.S. 143‑215.94B or G.S. 143‑215.94D as a result of a misrepresentation by an agent who that acted on behalf of an owner, operator, or landowner, the Department shall first seek reimbursement, pursuant to subdivision (1) of subsection (d) of this section, from the agent of monies paid to or retained by the agent.

(h)        The Department shall take administrative action to recover costs or bring a civil action pursuant to subdivision (1) of subsection (d) of this section to seek reimbursement of costs in accordance with the time limits set out in this subsection.following time limits:

(1)        The Department shall take administrative action to recover costs or bring a civil action to seek reimbursement of costs that are not authorized to be paid from the Commercial Fund under subdivision (1), (2), or (3) of G.S. 143‑215.94B(d) within five years after payment.

(2)        The Department shall take administrative action to recover costs or bring a civil action to seek reimbursement of costs other than those described in subdivision (1) of this subsection within three years after payment.

(3)        Notwithstanding the time limits set out in subdivisions (1) and (2) of this subsection, the Department may take administrative action to recover costs or bring a civil action to seek reimbursement of costs paid as a result of fraud or misrepresentation at any time.

(i)         An administrative action or civil action that is not commenced within the time allowed by subsection (h) of this section is barred.

(j)         Except with the consent of the claimant, the Department may shall not withhold payment or reimbursement of costs that are authorized to be paid from the Commercial Fund in order to recover any other costs that are in dispute unless the Department is authorized to withhold payment by a final decision of the Commission pursuant to G.S. 150B‑36 in a contested case under Article 3 of Chapter 150B of the General Statutes or by an order or final decision of a court.

SECTION 21.  G.S. 160D‑1311 reads as rewritten:

§ 160D‑1311.  Community development programs and activities.

(a)        A local government is authorized to may engage in, to accept federal and State grants and loans for, and to appropriate and expend funds for community development programs and activities. In undertaking community development programs and activities, in addition to other authority granted by law, a local government may engage in the following activities:

(1)        Programs of assistance and financing of rehabilitation of private buildings principally for the benefit of low‑ and moderate‑income persons, or for the restoration or preservation of older neighborhoods or properties, including direct repair, the making of grants or loans, the subsidization of interest payments on loans, and the guaranty of loans.

(2)        Programs concerned with employment, economic development, crime prevention, child care, health, drug abuse, education, and welfare needs of persons of low and moderate income.

(b)        A governing board may exercise directly those powers granted by law to local government redevelopment commissions and those powers granted by law to local government housing authorities and may do so whether or not a redevelopment commission or housing authority is in existence in such the local government. Any governing board desiring to do so may delegate to any redevelopment commission, created under Article 22 of Chapter 160A of the General Statutes, or to any housing authority, created under Article 1 of Chapter 157 of the General Statutes, the responsibility of undertaking or carrying out any specified community development activities. Any governing board may by agreement undertake or carry out for another any specified community development activities. Any governing board may contract with any person, association, or corporation in undertaking any specified community development activities. Any county or city board of health, county board of social services, or county or city board of education may by agreement undertake or carry out for any other governing board any specified community development activities.

(c)        A local government undertaking community development programs or activities may create one or more advisory committees to advise it and to make recommendations concerning such the programs or activities.

(d)       A governing board proposing to undertake any loan guaranty or similar program for rehabilitation of private buildings is authorized to may submit to its voters the question whether such the program shall be undertaken, such undertaken. The referendum to shall be conducted pursuant to the general and local laws applicable to special elections in such the local government. No State or local taxes shall be appropriated or expended by a county pursuant to this section for any purpose not expressly authorized by G.S. 153A‑149, unless the same is first submitted to a vote of the people as therein provided.

(e)        A government may receive and dispense funds from the Community Development Block Grant (CDBG) Section 108 Loan Guarantee program, Subpart M, 24 C.F.R. § 570.700, et seq., either through application to the North Carolina Department of Commerce or directly from the federal government, in accordance with State and federal laws governing these funds. Any local government that receives these funds directly from the federal government may pledge current and future CDBG funds for use as loan guarantees in accordance with State and federal laws governing these funds. A local government may implement the receipt, dispensing, and pledging of CDBG funds under this subsection by borrowing CDBG funds and lending all or a portion of those funds to a third party in accordance with applicable laws governing the CDBG program.

A government that has pledged current or future CDBG funds for use as loan guarantees prior to the enactment of this subsection is authorized to have taken such the action. A pledge of future CDBG funds under this subsection is not a debt or liability of the State or any political subdivision of the State or a pledge of the faith and credit of the State or any political subdivision of the State. The pledging of future CDBG funds under this subsection does not directly, indirectly, or contingently obligate the State or any political subdivision of the State to levy or to pledge any taxes.

(f)        All program income from Economic Development Grants from the Small Cities Community Development Block Grant Program may be retained by recipient cities and counties in economically distressed counties, as defined in G.S. 143B‑437.01, for the purposes of creating local economic development revolving loan funds. Such The program income derived through the use by cities of Small Cities Community Development Block Grant money includes, but is not limited to, (i) payment of principal and interest on loans made by the county using CDBG funds, (ii) proceeds from the lease or disposition of real property acquired with CDBG funds, and (iii) any late fees associated with loan or lease payments in (i) and (ii) above. The local economic development revolving loan fund set up by the city shall fund only those activities eligible under Title I of the federal Housing and Community Development Act of 1974, as amended (P.L. 93‑383), and shall meet at least one of the three national objectives of the Housing and Community Development Act. Any expiration of G.S. 143B‑437.01 or G.S. 105‑129.3 shall does not affect this subsection as to designations of economically distressed counties made prior to its expiration.

(g)        No State or local taxes shall be appropriated or expended by a county pursuant to this section for any purpose not expressly authorized by G.S. 153A‑149, unless the purpose is first submitted to a vote of the people as provided by that section.

SECTION 22.  G.S. 168‑11 reads as rewritten:

§ 168‑11.  Reporting by Protection and Advocacy Agency for persons with disabilities.

The designated Protection and Advocacy Agency (Agency) for this State shall report to the General Assembly as provided in this section. twice per year on actions the Agency has taken in its efforts to advocate for persons with disabilities. The Agency shall submit its reports to the chairs of the House and Senate Appropriations Committees on Health and Human Services during session and to the Joint Legislative Oversight Committee on Medicaid and the Joint Legislative Oversight Committee on Health and Human Services during the interim.

Upon review, the General Assembly is encouraged to examine the activities of the Agency to determine the impact on current and future State budgets. The Agency is encouraged to annually hold six meetings with the public throughout the State to share the Agency's findings in the reports required by this section. Nothing in this section shall be construed as impacting impacts the Agency's ability to perform work within its governing laws. The reports shall be submitted as follows:

A report submitted twice a year of actions the Agency has taken in its efforts to advocate for persons with disabilities. The Agency shall submit its reports to the chairs of the House and Senate Appropriations Committees on Health and Human Services during session and to the Joint Legislative Oversight Committee on Medicaid and NC Health Choice and the Joint Legislative Oversight Committee on Health and Human Services during the interim.

SECTION 23.(a)  Subsection (a) of Section 9A.1 of S.L. 2022‑74 is repealed.

SECTION 23.(b)  G.S. 108A‑42.1, as amended by subsection (a) of this section, reads as rewritten:

§ 108A‑42.1.  State‑County Special Assistance Program payment rates.

(a)        Basic Rate. – The maximum monthly rate for State‑County Special Assistance recipients residing in adult care homes or in‑home living arrangements without a diagnosis of Alzheimer's disease or dementia shall be one thousand one hundred eighty‑two dollars ($1,182) is one thousand two hundred eighty‑five dollars ($1,285) per month per resident. This rate shall be adjusted on January 1, 2024, and each January 1 thereafter, using the federally approved Social Security cost‑of‑living adjustment effective for the applicable year.

(b)        Enhanced Rate. – The maximum monthly rate for State‑County Special Assistance recipients residing in special care units or in‑home living arrangements with a diagnosis of Alzheimer's disease or dementia shall be one thousand five hundred fifteen dollars ($1,515) is one thousand six hundred forty‑seven dollars ($1,647) per month per resident. This rate shall be adjusted on January 1, 2024, and each January 1 thereafter, using the federally approved Social Security cost‑of‑living adjustment effective for the applicable year.

SECTION 23.(c)  This section is retroactively effective January 1, 2023.

SECTION 24.(a)  Section 9A.3A(a) of S.L. 2021‑180 reads as rewritten:

SECTION 9A.3A.(a)  It is the intent of the General Assembly to provide greater parity among individuals receiving benefits under the State‑County Special Assistance Program authorized under G.S. 108A‑40 regardless if they elect to reside in an adult care home, a special care unit, or an in‑home living arrangement. To that end, no later than 30 days after the effective date of this subsection, the Department of Health and Human Services, Division of Aging and Adult Services, shall apply to the federal Social Security Administration (SSA) for approval to allow eligible individuals residing in in‑home living arrangements to qualify for State‑County Special Assistance under the Social Security Optional State Supplement Program in the same manner as individuals residing in adult care homes or special care units. Additionally, no later than 30 days after the effective date of this subsection, the Department of Health and Human Services, Division of Health Benefits, shall submit a State Plan amendment to the Centers for Medicare and Medicaid Services (CMS) for approval to add Medicaid coverage for individuals residing in in‑home living arrangements who qualify for State‑County Special Assistance under the Social Security Optional State Supplement Program. It is the further intent of the General Assembly to appropriate sufficient funds in future fiscal years to support annual adjustment of the State‑County Special Assistance Program payment rates using the federally approved Social Security cost‑of‑living adjustment. This subsection is effective when it becomes law.

SECTION 24.(b)  Section 9A.3A(d) of S.L. 2021‑180, as amended by Section 9A.1(b) of S.L. 2022‑74, reads as rewritten:

SECTION 9A.3A.(d)  Subsections (b), (c), and (e) of this section become effective on the date the Current Operations Appropriations Act of 2022 becomes law, or 30 days after the date that both the SSA and CMS have approved the applications the date the CMS approves the application submitted by the Department of Health and Human Services pursuant to subsection (a) of this section, whichever is later.section. The Secretary of Health and Human Resources reported to the Revisor of Statutes that the CMS approved the application effective January 1, 2023.

The Secretary of the Department of Health and Human Services shall report to the Revisor of Statutes when both the SSA and CMS approvals are obtained and the date of the approval. Subsections (b), (c), and (e) of this section shall not become effective if either the SSA or CMS disapproves the applications submitted by the Department of Health and Human Services pursuant to subsection (a) of this section. If, by June 30, 2023, the Department of Health and Human Services has not received notification of application approval from both the SSA and CMS pursuant to subsection (a) of this section, then subsections (b), (c), and (e) of this section shall expire. This subsection is effective when it becomes law.

SECTION 24.(c)  Section 9A.1(d) of S.L. 2022‑74 reads as rewritten:

SECTION 9A.1.(d)  Subsections (a) and (c) of this section become Subsection (c) of this section becomes effective on the date the Current Operations Appropriations Act of 2022 becomes law, or 30 days after the date that both the SSA and CMS have approved the applications submitted by the Department of Health and Human Services pursuant to subsection (a) of Section 9A.3A of S.L. 2021‑180, whichever is later. that subsection (e) of Section 9A.3A of S.L. 2021‑180 becomes effective. The remainder of this section is effective when it becomes law.

SECTION 24.(d)  This section is retroactively effective January 1, 2023.

SECTION 25.(a)  Section 9H.15(i) of S.L. 2023‑134 reads as rewritten:

SECTION 9H.15.(i)  G.S. 7B‑1413.5, as enacted by subsection (f) of this section, becomes effective July 1, 2025. The remainder of subsection (f) of this section and subsection (g) of this section become effective January 1, 2025.

SECTION 25.(b)  This section is retroactively effective October 3, 2023.

SECTION 26.  Except as otherwise provided, this act is effective when it becomes law.