AN ACT TO ENACT VARIOUS RECOMMENDATIONS OF THE GENERAL STATUTES COMMISSION.

The General Assembly of North Carolina enacts:

PART I. TECHNICAL CORRECTIONS

SECTION 1.(a)  G.S. 1‑18 is repealed.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.

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(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.

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(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.  G.S. 58‑6‑25 reads as rewritten:

§ 58‑6‑25.  Insurance regulatory charge.

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(b)        Rates. – The rate of the charge for each taxable year shall be is six and one‑half percent (6.5%). When the Department prepares its budget request for each upcoming fiscal year, the Department shall propose a percentage rate of the charge levied in this section. The Governor shall submit that proposed rate to the General Assembly each fiscal year. It is the intent of the General Assembly that the percentage rate not exceed the rate necessary to generate funds sufficient to defray the estimated cost of the operations of the Department for each upcoming fiscal year, including a reasonable margin for a reserve that shall be used to provide for unanticipated expenditures requiring a budget adjustment as authorized by G.S. 143C‑6‑4. In calculating the amount of the reserve, the General Assembly shall consider all relevant factors that may affect the cost of operating the Department or a possible unanticipated increase or decrease in North Carolina premiums or other charge revenue.

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(d)       Use of Proceeds. – The Insurance Regulatory Fund is created as an interest‑bearing special fund to which the proceeds of the charge levied in this section and all fees collected under Articles 69 through 71 of this Chapter and under Articles 9 and 9C of Chapter 143 of the General Statutes shall be credited. Moneys in the Fund may be spent only pursuant to appropriation by the General Assembly, and the Fund is subject to the provisions of the State Budget Act. All money credited to the Fund shall be used to reimburse the General Fund for the following:

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(9)        Money appropriated to the Department of Insurance for the regulation of the professional employer organization industry pursuant to Article 89A of Chapter 58 of the General Statutes.this Chapter.

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SECTION 7.(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 7.(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:

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(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 12 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:

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(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.

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(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.

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SECTION 7.(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 7.(d)  Subsection (c) of this section is retroactively effective January 1, 2016. The remainder of this section is effective when it becomes law.

SECTION 9.(a)  G.S. 89E‑3 reads as rewritten:

§ 89E‑3.  Definitions.

When used in this Chapter, unless the context otherwise requires:

(1)        Board means the North Carolina Board for Licensing of Geologists.

(2)        Geologist. The term geologist, within the intent of this Chapter, shall mean a person who is trained and educated in the science of geology.

(3)        The term geologist‑in‑training means a person who has taken and successfully passed the portion of professional examination covering fundamental or academic geologic subjects, prior to his completion of the requisite years of experience in geologic work as provided for in required for licensure under this Chapter.

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(5)        The term good moral character means such character as tends to ensure the faithful discharge of the fiduciary duties of the licensed geologist to his a licensed geologist's fiduciary duties to a client.

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(8)        Public practice of geology means the performance for others of geological service or work in the nature of work or consultation, investigation, surveys, evaluations, planning, mapping and inspection of geological work, in which the performance is related to the public welfare of safeguarding of life, health, property and the environment, except as specifically exempted by this Chapter. The definition shall not include or allow the practice of engineering as defined in Chapter 89C of the North Carolina General Statutes.

(9)        The term qualified geologist means a person who possesses all of the qualifications specified in this Chapter for licensing except that he or she but is not licensed.

(10)      The term responsible charge of work means the independent control and direction by the use of initiative, skill and independent judgment of geological work or the supervision of such work.

(11)      The term subordinate means any either of the following who does not assume the responsible charge of work:

a.         A person who assists a licensed geologist in the practice of geology without assuming the responsible charge of work.geology.

b.         A geologist‑in‑training working under the supervision of a licensed geologist.

SECTION 9.(b)  G.S. 89E‑4 reads as rewritten:

§ 89E‑4.  North Carolina Board for Licensing of Geologists; appointments; terms; composition.

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(c)        Each member of the Board shall be a citizen of the United States and shall have been a resident of this State for at least six months immediately preceding his or her appointment.appointment to the Board.

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SECTION 9.(c)  G.S. 89E‑6 reads as rewritten:

§ 89E‑6.  Exemptions.

Any person except as specifically exempted below who shall publicly practice or offer to publicly practice geology in this State is subject to the provisions of this Chapter. The following persons are exempt:

(1)        Persons engaged solely in teaching the science of geology or engaged solely in geologic research in this State may pursue their teaching and/or research without licensing. State. A teacher or researcher must, however, be a licensed geologist if he or she performs to perform geologic work and services for which a licensed geologist license is required by this Chapter.

(2)        Officers and employees of the United States of America and the State of North Carolina practicing solely as such officers or employees.

(3)        Officers and employees of petroleum companies practicing solely as such officers and employees and not offering their professional services to the public for hire.

(4)        A subordinate to a licensed geologist or a geologist‑in‑training licensed under this Chapter insofar as he or she acts solely in such when acting solely in that capacity. This exemption does not permit any such a subordinate to practice geology for others in his the subordinate's own right or use the term licensed geologist.

SECTION 9.(d)  G.S. 89E‑7 reads as rewritten:

§ 89E‑7.  Limitations.

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(b)        This Chapter shall not be construed to prevent or to affect:

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(2)        The public practice of geology by a person not a resident of and having no established place of business in this State, when such the practice does not exceed in the aggregate more than 90 days in any calendar year, and provided such person the nonresident is duly licensed to practice such profession geology in another state where the requirements for a license are not lower than those specified in this Chapter for obtaining the license required for such work; and provided further that such Chapter, the nonresident shall file files with the Board Board, within 10 days of entering this State for commencing of such work, a statement giving his the nonresident's name, residence, the number of his license, and by what authority issued, and residence address, nonresident license number and issuing state, and, upon the completion of the work, files with the Board a statement of the time engaged in such the work within in the State; or

(3)        The public practice of geology by a person who is not a resident of and having has no established place of business in this State, or who State or has recently become a resident hereof, practicing or offering of this State and who practices or offers to practice herein in this State for more than 90 days in any calendar year the profession of geology, if he if the person is licensed in another state or qualified as defined herein, if he shall have state, has filed with the Board an application for a license license, and shall have has paid the fee required by this Chapter. Such A practice shall be under this exemption is deemed a provisional practice and shall continue only for such the time as the Board requires reasonably for the consideration of the applicant for licensing under this Chapter as a geologist.

SECTION 9.(e)  G.S. 89E‑8 reads as rewritten:

§ 89E‑8.  Applications.

An application for licensing as a geologist shall be made under oath, shall show the applicant's education and a summary of his the applicant's geological work, plus and shall set out any other relevant criteria to be determined by the Board. The Board shall have the power to determine a reasonable application fee which that shall accompany each application.

SECTION 9.(f)  G.S. 89E‑9 reads as rewritten:

§ 89E‑9.  Minimum qualifications.

An applicant shall be eligible for a license as a geologist in North Carolina provided that each applicant meets the following minimum qualifications:

(1)        Be of good moral and ethical character.

(2)        Have graduated from an accredited college or university, and have a degree with a major in geology, engineering geology or geological engineering or related geologic science; or have completed 30 semester hours or the equivalent in geological science courses leading to a major in geology, of which at least 24 hours of the equivalent were upper level undergraduate courses or graduate courses. The Board shall waive the academic requirements for a person already practicing geology at the time this Chapter is enacted, provided application for license is made not later than one year after appointment of the initial Board and provided further that the applicant can provide evidence to satisfy the Board that he or she is competent to engage in the public practice of geology.

(3)        Successfully pass such examination established by the Board which shall be designed to demonstrate that the applicant has the necessary knowledge and requisite skill to exercise the responsibilities of the public practice of geology. The Board shall waive the examination for licensing as a geologist of an applicant who makes written application to the Board not later than one year after appointment of the initial Board, and who otherwise meets the qualification of this Chapter.

(4)        Have at least five years of professional geological work which shall include a minimum of three years of professional geological work under the supervision of a licensed geologist; or a minimum of three cumulative years work in responsible charge of geological work satisfactory to the Board. The following criteria of education and experience qualify as specified toward accumulation of the required five years of professional geological work:

…

d.         The ability of the applicant shall have been demonstrated by his having performed the work in a responsible position as determined by the Board. The adequacy of the required supervision and the experience shall be determined by the Board in accordance with the standards set forth in regulations rules adopted by it.

SECTION 9.(g)  G.S. 89E‑11 reads as rewritten:

§ 89E‑11.  Comity.

A person holding a license to engage in the practice of geology, on the basis of comparable licensing requirements issued to him by a proper authority by the State, territory, or possession of the United States or the District of Columbia, and who, in the opinion of the Board otherwise meets the requirements of this Chapter based upon verified evidence may, upon application, be licensed without further examination.

SECTION 9.(h)  G.S. 89E‑13 reads as rewritten:

§ 89E‑13.  Seals; requirements.

Each geologist licensed hereunder, under this Chapter, upon the issuance of a license, shall obtain from the secretary at a cost prescribed by the Board, a seal of the design authorized by the Board bearing the licensee's name and the legend Licensed Geologist – State of North Carolina. All drawings, reports reports, or other geologic papers or documents involving geologic work as defined in this Chapter which shall have been that are prepared or approved by a licensed geologist or a subordinate employee under his direction for the use of or geologist, or a nonresident geologist who has been exempted under this Chapter, for delivery to any person or for public record within in this State shall be signed by him or her and impressed with the said seal or the seal of a nonresident practicing under the provisions of this Chapter, either of which shall indicate his or her responsibility therefor.the geologist. The signature and seal each indicate the geologist's responsibility for the papers or documents.

SECTION 9.(i)  G.S. 89E‑14 reads as rewritten:

§ 89E‑14.  Records.

(a)        The Board shall keep a public record of its proceedings and a register of all applications for licensing.

(b)        The register shall show:

…

(4)        His or her The applicant's education and other qualifications;

….

SECTION 9.(j)  G.S. 89E‑18 reads as rewritten:

§ 89E‑18.  Prohibitions; unlawful acts.

After the effective date of this Chapter:All of the following are unlawful:

(1)        It shall be unlawful for any For a person other than a licensed geologist or a subordinate under his direction to prepare any geologic plans, reports reports, or documents in which the performance is related to the public welfare or safeguarding of life, health, property property, or the environment.

(2)        It shall be unlawful for any For a person to publicly practice, or  offer to publicly practice, geology in this State as defined in the provisions of this Chapter, State, or to use in connection with his or her the person's name or otherwise assume, assume or advertise any title or description tending to convey the impression that he or she the person is a licensed geologist, unless such the person has been duly licensed or exempted under the provisions of this Chapter.

(3)        After one year following the effective date of this act, it shall be unlawful for For anyone other than a geologist licensed  under this Chapter to stamp or seal any plans, plats, reports reports, or other documents with the seal or stamp of a licensed geologist, or to use in any manner the title Licensed Geologist unless that person is licensed hereunder.under this Chapter.

(4)        It shall be unlawful for any For a person to affix his or her signature to or to stamp a licensed geologist's signature, stamp, or seal to any plans, plats, reports, or other documents after the licensing of the person named thereon if the geologist's license has expired or has been suspended or revoked revoked, unless the license has since been renewed or reissued.

SECTION 9.(k)  G.S. 89E‑19 reads as rewritten:

§ 89E‑19.  Disciplinary procedures.

…

(b)        If the Board finds that a licensee is professionally incompetent, the Board may require the licensee to take an oral or written examination or to meet other requirements to demonstrate the licensee's fitness to practice geology, and the Board may suspend the licensee's license until he or she the licensee establishes professional competence to the satisfaction of the Board.

….

SECTION 9.(l)  G.S. 89E‑22 reads as rewritten:

§ 89E‑22.  Misdemeanor.

Any person who shall willfully practice publicly, or offer to practice publicly, geology for other natural or corporate persons in this State without being licensed in accordance with the provisions of this Chapter, or any person presenting or attempting to use as his own the license or the seal of another, another as the person's own, or any person who shall give any false or forged evidence of any kind in obtaining a license, or any person who shall falsely impersonate any other licensee of like or different name, or any person who shall attempt to use an expired or revoked license or practice at any time during a period the Board has suspended or revoked the license, or any person who shall violate the provisions of this Chapter shall be guilty of a Class 2 misdemeanor.

SECTION 9.(m)  G.S. 89E‑24 reads as rewritten:

§ 89E‑24.  Attorney General as legal advisor.

The Attorney General or any assistant or associate in the Department of Justice selected by him the Attorney General shall act as legal advisor to the Board.

SECTION 10.  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 11.  Article 3 of Chapter 110 of the General Statutes is repealed.

SECTION 12.  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 13.(a)  G.S. 115C‑284 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)      Repealed by Session Laws 2023‑125, s. 1(d), effective September 28, 2023.

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

(c1)      Repealed by Session Laws 2023‑125, s. 1(d), effective September 28, 2023.

(c2)      Repealed by Session Laws 2023‑125, s. 1(d), effective September 28, 2023.

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

SECTION 13.(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 14.(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 14.(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 15.  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 16.  G.S. 121‑42 is repealed.

SECTION 17.(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 17.(b)  Subdivision (2a) of G.S. 135‑48.1 is recodified as subdivision (2c) of that section.

SECTION 18.(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 Executive 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 Executive 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 Executive Director of the Retirement Systems Division 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 Executive Director of the Retirement Systems Division and, 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 18.(b)  G.S. 135‑6, as amended by Section 3D.1(l) of S.L. 2024‑57, 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 Executive 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 Executive 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 Executive Director of the Retirement Systems Division 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 Executive Director of the Retirement Systems Division and, 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)        The Treasurer may designate legal counsel, including private counsel, to represent the interests of the administration of benefit programs under this Chapter.

SECTION 18.(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 18.(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 19.(a)  The title of Chapter 140A of the General Statutes reads as rewritten:

State Awards System.Awards.

SECTION 19.(b)  Chapter 140A of the General Statutes is amended by designating G.S. 140A‑1 through G.S. 140A‑6 as Article 1 with the heading North Carolina Awards.

SECTION 19.(c)  G.S. 140A‑2 reads as rewritten:

§ 140A‑2.  Fields of recognition; periods covered.

These recognitions shall be known as the North Carolina Awards for Literature, Science, the Fine Arts Arts, and Public Service, and shall be conferred upon citizens of North Carolina for the most notable attainments in these respective fields during the current year, terminating four months before the date of award, though such distinctions can be exceptionally conferred, with the approval of the Governor and the Council of State, year or for eminence achieved during years prior to the award.

SECTION 19.(d)  G.S. 140A‑5 reads as rewritten:

§ 140A‑5.  Selection of recipients for awards.

The recipients of the awards shall be chosen by a committee named by the North Carolina Awards Committee, for each category of achievement, but no award shall be made in any field unless the committee of awards Committee deems the recognized accomplishment to be outstanding in merit, value, and distinction.

SECTION 19.(e)  G.S. 140A‑6 reads as rewritten:

§ 140A‑6.  Administration expense.

The expense of administering this Chapter shall Article may be paid out of the Contingency and Emergency Fund subject to the approval of the Governor and Council of State.

SECTION 19.(f)  Chapter 140A of the General Statutes is amended by adding a new Article to read:

Article 2.

Medal of Valor Award.

SECTION 19.(g)  G.S. 147‑12(a)(15) is recodified as G.S. 140A‑15 in Article 2 of Chapter 140A of the General Statutes, as enacted by subsection (f) of this section, and reads as rewritten:

§ 140A‑15.  Medal of Valor Award.

To The Governor and Lieutenant Governor may each award the Medal of Valor Award to a first responder upon recommendation from the highest‑ranking official or member of a first responder unit. The Governor and Lieutenant Governor may each award no more than two Medal of Valor Awards to first responders each calendar year, except that a third may be awarded under special circumstances as determined by the Governor. that, if the Governor or Lieutenant Governor finds there are special circumstances, each may award a third. The Governor and Lieutenant Governor may also annually each award one Medal of Valor Award to one first responder unit, once each calendar year. unit. A Medal of Valor Award shall be for a first responder or first responder unit that has performed great acts of heroism while under threat of personal risk to safety, beyond the call of duty in the field. For the purposes of this subdivision, section, a first responder includes any firefighter, paramedic, law enforcement officer, emergency medical services personnel, or rescue squad member. The Governor and Lieutenant Governor shall each maintain an internet accessible link and application form on a State website where nominations can be put forward, and each shall contain information on the Medal of Valor Award.The websites for the offices of Governor and Lieutenant Governor shall include information about the Medal of Valor Award and a form for submitting a nomination for the award.

SECTION 19.(h)  G.S. 143A‑13 reads as rewritten:

§ 143A‑13.  Office of the Lieutenant Governor; creation; awards.Governor created.

(a)        Creation. – There is hereby created an office of the Lieutenant Governor.

(b)        Medal of Valor Award. – The Lieutenant Governor may award the Medal of Valor Award to a first responder upon recommendation from the highest‑ranking official or member of a first responder unit. The Lieutenant Governor may award no more than two Medal of Valor Awards to first responders each calendar year, except that a third may be awarded under special circumstances as determined by the Lieutenant Governor. The Lieutenant Governor may also award one Medal of Valor Award to one first responder unit, once each calendar year. A Medal of Valor Award shall be for a first responder or first responder unit that has performed great acts of heroism while under threat of personal risk to safety, beyond the call of duty in the field. For the purposes of this subsection, a first responder includes any firefighter, paramedic, law enforcement officer, emergency medical services personnel, or rescue squad member.

SECTION 19.(i)  G.S. 143B‑84 reads as rewritten:

§ 143B‑84.  North Carolina Awards Committee – members; selection; quorum; compensation.

The North Carolina Awards Committee shall consist of five members appointed by the Governor to serve at the Governor's pleasure.

The Governor shall designate a member of the Committee as chairman chair to serve in such capacity at the pleasure of the Governor.

Members of the Committee shall serve without compensation or travel or per diem.

A majority of the Committee shall constitute constitutes a quorum for the transaction of business.

The Secretary of Natural and Cultural Resources is hereby authorized to request contingency and emergency funds for the administration of the North Carolina Awards Committee, for the period between July 1, 1973, and ratification of the next general appropriations bill for the Department.

All clerical and other services required by the Committee shall be supplied by the Secretary of Natural and Cultural Resources.

SECTION 20.  G.S. 143‑63.1 reads as rewritten:

§ 143‑63.1.  Sale, disposal disposal, and destruction of firearms.

(a)        Except as hereinafter provided, it shall be provided in this section, it is unlawful for any employee, officer officer, or official of the State in the exercise of his or her official duty to sell or otherwise dispose of any pistol, revolver, shotgun shotgun, or rifle to any person, firm, corporation, county or local governmental unit, law‑enforcement law enforcement agency, or other legal entity.

(b)        It shall be is lawful for the Department of Administration, in the exercise of its official duty, to sell any weapon described in subsection (a) hereof, to any of this section to a law enforcement agency of a county or local governmental unit, law‑enforcement agency in the State; provided, however, that such law‑enforcement unit in the State, so long as the agency files a written statement, duly notarized, with the seller of said weapon the weapon, certifying that such the weapon is needed in law enforcement by such law‑enforcement the agency.

(c)        All weapons described in subsection (a) hereof which of this section that are not sold as herein provided by this section within one year of being declared surplus property shall be destroyed by the Department of Administration.

(d)       Notwithstanding the provisions of this section, but subject to the provisions of G.S. 20‑187.2, G.S. 17F‑20, (i) each department, agency, institution, commission, and bureau of the Executive, Judicial, or Legislative branch of North Carolina and (ii) campus law enforcement agencies and campus police agencies of the constituent institutions of The University of North Carolina may sell, trade, or otherwise dispose of any or all surplus weapons they possess to any federally licensed firearm dealers. The sale, trade, or disposal of these weapons shall be in a manner prescribed by the Department of Administration. Surplus weapons shall be offered for public sale to federally licensed firearm dealers. Public sale is through sealed competitive bids, electronic bids, negative bids, auction, and retail sales. Any moneys or property money obtained from the sale or disposal shall go be credited to the general fund.General Fund.

SECTION 21.(a)  All of the following provisions are repealed:

(1)        Subdivision (5) of G.S. 143‑215.94A.

(2)        Subdivisions (b)(6) and (b)(12) of G.S. 143‑215.94B.

(3)        G.S. 143‑215.94F.

(4)        G.S. 143‑215.94P.

SECTION 21.(b)  G.S. 143‑215.94A(2), (2a), and (7) read as rewritten:

(2)      Commercial underground storage tank means any one or combination of tanks (including underground pipes connected thereto) used to contain an accumulation of petroleum products, the volume of which (including the volume of the underground pipes connected thereto) is ten percent (10%) or more beneath the surface of the ground. The term commercial underground storage tank does not include any:any of the following:

a.         Farm or residential underground storage tank of 1,100 gallons or less capacity used for storing motor fuel for noncommercial purposes;

b.         Underground storage tank of 1,100 gallons or less capacity used for storing heating oil for consumptive use on the premises where stored;

c.         Underground storage tank of more than 1,100 gallon capacity used for storing heating oil for consumptive use on the premises where stored by four or fewer households;

c1.       Noncommercial underground storage tank.

d.         Septic tank;tank.

e.         Pipeline facility (including gathering lines) regulated under:under any of the following:

1.         The Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. § 1671 et seq.);seq.).

2.         The Hazardous Liquid Pipeline Safety Act of 1979 (49 U.S.C. § 2001 et seq.); orseq.).

3.         Any intrastate pipeline facility regulated under State laws comparable to the provisions of the Natural Gas Pipeline Safety Act of 1968 or the Hazardous Liquid Pipeline Safety Act of 1979;1979.

f.          Surface impoundment, pit, pond, or lagoon;lagoon.

g.         Storm water or waste water collection system;system.

h.         Flow‑through process tank;tank.

i.          Liquid trap or associated gathering lines directly related to oil or gas production and gathering operations; oroperations.

j.          Storage tank situated in an underground area (such as a basement, cellar, mineworking, drift, shaft, or tunnel) if the storage tank is situated upon or above the surface of the floor.

(2a)      Cost‑effective cleanup means the cleanup method that meets all of the following criteria:

a.         Addresses imminent threats to human health or the environment.

b.         Provides for the cleanup or removal of all contaminated soil except in circumstances where it is impractical to remove contaminated soil.

c.         Is approved by the Commission for remediation of the site.

d.         Is the least expensive cleanup based on total cost, including costs not eligible for reimbursement from the Commercial Fund or the Noncommercial Fund.

…

(7)        Noncommercial underground storage tank means any one or combination of the following tanks (including underground pipes connected thereto) used to contain an accumulation of petroleum products, the volume of which (including the volume of the underground pipes connected thereto) is ten percent (10%) or more beneath the surface of the ground. The term noncommercial storage tank does not include any:ground:

a.         Commercial underground storage tanks;

b.         Septic tank;

c.         Pipeline facility (including gathering lines) regulated under:

1.         The Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. § 1671 et seq.);

2.         The Hazardous Liquid Pipeline Safety Act of 1979 (49 U.S.C. § 2001 et seq.); or

3.         Any intrastate pipeline facility regulated under State laws comparable to the provisions of the Natural Gas Pipeline Safety Act of 1968 or the Hazardous Liquid Pipeline Safety Act of 1979;

d.         Surface impoundment, pit, pond, or lagoon;

e.         Storm water or waste water collection system;

f.          Flow‑through process tank;

g.         Liquid trap or associated gathering lines directly related to oil or gas production and gathering operations; or

h.         Storage tank situated in an underground area (such as a basement, cellar, mineworking, drift, shaft, or tunnel) if the storage tank is situated upon or above the surface of the floor.

a.         Farm or residential underground storage tank of 1,100 gallons or less capacity used for storing motor fuel for noncommercial purposes.

b.         Underground storage tank of 1,100 gallons or less capacity used for storing heating oil for consumptive use on the premises where stored.

c.         Underground storage tank of more than 1,100 gallon capacity used for storing heating oil for consumptive use on the premises where stored by four or fewer households.

SECTION 21.(c)  G.S. 143‑215.94E reads as rewritten:

§ 143‑215.94E.  Rights and obligations of the owner or operator.

…

(b1)      In the case of a discharge or release from a commercial underground storage tank where the owner and operator cannot be identified or located, or where the owner and operator fail to proceed as required by subsection (a) of this section, the following requirements apply:

(1)        If the current landowner of the land in which the commercial underground storage tank is located notifies the Department in accordance with G.S. 143‑215.85 and undertakes to collect and remove the discharge or release and to restore the area affected in accordance with the requirements of this Article and applicable federal and State laws, regulations, and rules, the current landowner may elect to have the Commercial Fund pay or reimburse the current landowner for any costs described in subdivisions (1), (2), (2a), (3), and (4) of G.S. 143‑215.94B(b) or G.S. 143‑215.94B(b1) that exceed the amounts for which the owner or operator is responsible under that subsection. [The following also apply:]The following provisions also apply:

a.         The current landowner is not eligible for payment or reimbursement until the current landowner has paid the costs described in subdivisions (1), (2), (2a), (3), and (4) of G.S. 143‑215.94B(b) or G.S. 143‑215.94B(b1) for which the owner or operator is responsible.

b.         Eligibility for reimbursement under this subsection may be transferred from a current landowner who has paid the costs described in subdivisions (1), (2), (2a), (3), and (4) of G.S. 143‑215.94B(b) or G.S. 143‑215.94B(b1) to a subsequent landowner.

The current landowner shall submit documentation of all expenditures as required by G.S. 143‑215.94G(b).

…

(e)        When an An owner, operator, or landowner that pays the costs described in G.S. 143‑215.94B(b), 143‑215.94B(b1), or 143‑215.94D(b1) subsection (b) or (b1) of G.S. 143‑215.94B resulting from a discharge or release of petroleum from an a commercial underground storage tank, the owner, operator, or landowner tank may seek reimbursement from the appropriate fund for any costs that the owner, operator, or landowner may elect to have either the Commercial Fund or the Noncommercial Fund pay in accordance with the applicable subsections of this section.

(e1)      The Department may contract for any services necessary to evaluate any claim for reimbursement or compensation from the Commercial Fund, Fund and may contract for any expert witness or consultant services necessary to defend any decision to pay or deny any claim for reimbursement, and reimbursement. The Department may pay the cost of these services from the fund against which the claim is made; provided that in fund. In any fiscal year year, however, the Department shall not expend from either fund more than one percent (1%) of the unobligated balance of the fund on 30 June of the previous fiscal year. The cost of contractual services to evaluate a claim or for expert witness or consultant services to defend a decision with respect to a claim shall be included as costs under G.S. 143‑215.94B(b) and 143‑215.94B(b1).authorized by this subsection are considered costs under subsections (b) and (b1) of G.S. 143‑215.94B.

…

(e5)     (1)        As used in this subsection:

…

b.         Preapproval means a determination by the Department that:

1.         The nature and scope of a task is reasonable and necessary to be performed under G.S. 143‑215.94B(b), 143‑215.94B(b1), or 143‑215.94D(b1) subsection (b) or (b1) of G.S. 143‑215.94B in order to achieve the purposes of this Part.

2.         The amount estimated for the cost of a task does not exceed the amount or rate that is reasonable for that task.

(2)        The Department may require an owner, operator, or landowner to obtain preapproval before proceeding with any task. The Department shall specify those tasks for which preapproval is required. The Department shall deny any request for payment or reimbursement of the cost of any task for which preapproval is required if the owner, operator, or landowner failed to obtain preapproval of the task. Preapproval of a task by the Department does not guarantee payment or reimbursement in the amount estimated for the cost of the task at the time preapproval is requested. The Department shall pay or reimburse the cost of a task only if all of the following apply:

a.         The cost is eligible to be paid under G.S. 143‑215.94B(b), 143‑215.94B(b1), or 143‑215.94D(b1).subsection (b) or (b1) of G.S. 143‑215.94B.

b.         Payment is in accordance with G.S. 143‑215.94B(d) or G.S. 143‑215.94D(d).G.S. 143‑215.94B(d).

c.         The Department determines that the cost is reasonable and necessary.

(3)        The Commission may adopt rules governing payment or reimbursement of reasonable and necessary costs and, consistent with any rules adopted by the Commission, the Department shall develop, implement, and periodically revise a schedule of costs that the Department determines to be reasonable and necessary costs for specific tasks. Statements that specify tasks for which preapproval is required and schedules of reasonable and necessary costs for specific tasks are statements within the meaning of G.S. 150B‑2(8a)g. This subsection shall not be construed to does not invalidate any rule of the Commission related to preapproval of tasks that will result in a cost that is eligible to be paid or reimbursed under G.S. 143‑215.94B(b), 143‑215.94B(b1), or 143‑215.94D(b1), provided, however, that the subsection (b) or (b1) of G.S. 143‑215.94B. The Department may specify additional tasks for which preapproval is required.required in addition to any specified by the Commission.

(4)        In all cases, the Department shall require an owner, operator, or landowner to submit documentation sufficient to establish that a claim is eligible to be paid or reimbursed under this Part before the Department pays or reimburses the claim.

(5)        The Department shall authorize a task the cost of which is to be paid or reimbursed from the Commercial Fund or the Noncommercial Fund only when the task is scheduled to be performed on the basis of a priority determination pursuant to subsection (e4) of this section. The Department shall not pay or reimburse the cost of any task for which authorization is required under this subsection until the Department has preapproved and authorized the task.

(6)        Except as provided in subdivisions (8) and (9) of this subsection, the Department shall not authorize any task the cost of which is to be paid or reimbursed from the Commercial Fund or the Noncommercial Fund unless the Department determines, based on the scope of the work to be performed and the schedule of reasonable and necessary costs, that sufficient funds will be available in the Commercial Fund or the Noncommercial Fund, whichever applies, to pay or reimburse the cost of that task within 90 days after the Department determines that the owner, operator, or landowner has submitted a claim with documentation sufficient to establish that the claim is eligible to be paid under this Part.

…

(8)        The Department may preapprove and authorize a task the cost of which is to be paid or reimbursed for payment or reimbursement from the Commercial Fund or the Noncommercial Fund a task that has not been authorized pursuant to subdivisions (5) and (6) of this subsection if the owner, operator, or landowner specifically requests that the task be authorized and agrees that the claim for payment or reimbursement of the task's cost will not be paid until after the Department has paid all claims for payment or reimbursement of costs for tasks that the Department has authorized pursuant to subdivisions (5) and (6) of this subsection.

(9)        The Department may preapprove and authorize a task the cost of which is to be paid or reimbursed for payment or reimbursement from the Commercial Fund or the Noncommercial Fund a task that has not been authorized pursuant to subdivisions (5) and (6) of this subsection if the discharge or release creates an emergency situation. An emergency situation exists when a discharge or release of petroleum results in an imminent threat to human health or the environment. A claim for payment or reimbursement of costs for tasks that are authorized under this subdivision shall be paid or reimbursed on the same basis as tasks that are authorized under subdivisions (5) and (6) of this subsection.

…

(g)        No owner or operator shall be reimbursed pursuant to this section, and the Department shall seek reimbursement of the appropriate fund Commercial Fund or of the Department for any monies disbursed from the appropriate fund Commercial Fund or expended by the Department if any of the following apply:

(1)        The owner or operator has willfully violated any substantive law, rule, or regulation applicable to underground storage tanks and intended to prevent or mitigate discharges or releases or to facilitate the early detection of discharges or releases.

(2)        The discharge or release is the result of the owner's or operator's willful or wanton misconduct.

(3)        The owner or operator has failed to pay any annual tank operating fee due pursuant to G.S. 143‑215.94C.

…

(j)         An owner, operator, or landowner shall request that the Department determine whether any of the costs of assessment and cleanup of a discharge or release from a petroleum underground storage tank are eligible to be paid or reimbursed from either the Commercial Fund within one year after completion of any task that is eligible to be paid or reimbursed under G.S. 143‑215.94B(b) or 143‑215.94B(b1).

….

SECTION 21.(d)  G.S. 143‑215.94G, as amended by Section 24(l) of this act, reads as rewritten:

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

(a)        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:

(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.

…

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

…

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

(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 attorneys' fees and investigation expenses. Any monies received or recovered as reimbursement shall be paid into the appropriate fund Commercial 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 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.

….

SECTION 21.(e)  G.S. 143‑215.94V reads as rewritten:

§ 143‑215.94V.  Standards for petroleum underground storage tank cleanup.

(a)        Legislative findings and intent.

(1)        The General Assembly finds that:

a.         The goals of the underground storage tank program are to protect human health and the environment. Maintaining the solvency of the Commercial Fund and the Noncommercial Fund is essential to these goals.

…

(2)        The General Assembly intends:

…

e.         That neither the Commercial Fund nor the Noncommercial Fund not be used to clean up sites where the Commission has determined that a discharge or release poses a degree of risk to human health or the environment that is no greater than the acceptable level of risk established by the Commission.

f.          Repealed by Session Laws 1998‑161, s. 11(c), effective retroactively to January 1, 1998.

g.         That the Commercial Fund and the Noncommercial Fund be used to perform the most cost‑effective cleanup that addresses imminent threats to human health and the environment.

…

(c)        The Commission may require an owner or operator or a landowner eligible for payment or reimbursement under subsections (b), (b1), (c), and (c1) subsections (b) and (b1) of G.S. 143‑215.94E to provide information necessary to determine the degree of risk to human health and the environment that is posed by a discharge or release from a petroleum underground storage and to identify the most cost‑effective cleanup that addresses imminent threats to human health and the environment.

…

(e)        If the Commission concludes under subsection (d) of this section that no cleanup, no further cleanup, or no further action will be required, the Department shall not pay or reimburse any costs otherwise payable or reimbursable under this Article from either the Commercial or Noncommercial Fund, other than reasonable and necessary to conduct the risk assessment required by this section, unless:

(1)        Cleanup is ordered or damages are awarded in a finally adjudicated judgment in an action against the owner or landowner. To be eligible for reimbursement of damages arising from a third‑party claim for bodily injury or property damage awarded in a finally adjudicated judgment, however, an owner or operator shall (i) notify the Department of any such claim; (ii) provide the Department with all pleadings and other related documents if a lawsuit has been filed; and (iii) provide the Department copies of any medical reports, statements, investigative reports, or certifications from licensed professionals necessary to determine that a claim for bodily injury or property damage is reasonable and necessary. Reimbursement of claims for damages arising from a third‑party claim for bodily injury or property damage awarded in a finally adjudicated judgment shall be subject to the limitations set forth in G.S. 143‑215.94B(b)(5) and G.S. 143‑215.94D(b1)(2), as applicable, G.S. 143‑215.94B(b)(5) and any other provision governing third‑party claims set forth in this Article.

…

(e1)      If the Commission concludes under subsection (d) of this section that further cleanup is required and notifies the owner, operator, or landowner of the cleanup method approved by the Commission as the most cost‑effective cleanup method for the site, the Department shall not pay or reimburse any costs otherwise payable or reimbursable under this Article from either the Commercial Fund or Noncommercial Fund, other than those costs that are reasonable and necessary to conduct the risk assessment and to implement the cost‑effective cleanup method approved by the Commission. If the owner, operator, or landowner selects a cleanup method other than the one identified by the Commission as the most cost‑effective cleanup, the Department shall not pay or reimburse for costs in excess of the cost of implementing the approved cost‑effective cleanup.

…

(h)        If a discharge or release of petroleum from an underground storage tank results in contamination in soil or groundwater that becomes commingled with contamination that is the result of a discharge or release of petroleum from a source of contamination other than an underground storage tank, the cleanup of petroleum may proceed under rules adopted pursuant to this section. The Department shall not pay or reimburse from the Commercial Fund any costs associated with the assessment or remediation of that portion of contamination that results from a release or discharge of petroleum from a source other than an underground storage tank from either the Commercial Fund or the Noncommercial Fund.tank.

SECTION 21.(f)  G.S. 143B‑426.40A(l) reads as rewritten:

(l)       Assignment of Payments From the Underground Storage Tank Cleanup Funds. – Payments from Commercial Fund. – This section does not apply to an assignment of any claim for payment or reimbursement from the Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund established by G.S. 143‑215.94B or the Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Fund established by G.S. 143‑215.94D.G.S. 143‑215.94B.

SECTION 22.  Article 29A of Chapter 143 of the General Statutes is repealed.

SECTION 23.  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 24.(a)  G.S. 150B‑37(c) is recodified as the last sentence of G.S. 150B‑34(a).

SECTION 24.(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 24.(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, orthe 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 24.(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 24.(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 24.(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 24.(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 24.(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 24.(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 24.(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 24.(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 24.(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 25.  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 26.  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 27.(a)  Subsection (a) of Section 9A.1 of S.L. 2022‑74 is repealed.

SECTION 27.(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 27.(c)  This section is retroactively effective January 1, 2023.

SECTION 28.(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 28.(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 Services 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 28.(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 28.(d)  This section is retroactively effective January 1, 2023.

PART II. ADDITIONAL TECHNICAL CORRECTIONS

SECTION 29.  Subject to the grammatical rules and general drafting conventions of capitalization, the Revisor of Statutes shall make the following changes:

(1)        Subject to subdivision (2) of this section, replace e‑mail, electronic mail, or electronic mailing with email in G.S. 1‑75.4, 1‑507.34, 1‑539.2A, 1A‑1, Rule 4, 1A‑1, Rule 5, and any other statutes in which any of these terms appear. The Revisor of Statutes shall make a similar change when any of these terms is plural.

(2)        Replace registered, certified, or electronic mail with registered mail, certified mail, or email in G.S. 143‑293.

(3)        Subject to subdivisions (4) and (5) of this section, make Internet lowercase in G.S. 14‑113.20, 14‑113.30, 14‑113.31, 14‑118.7, 14‑196.3, and any other statutes in which the term appears.

(4)        Replace Internet protocol with Internet Protocol in G.S. 105‑164.3, 130A‑480, and 143B‑1400.

(5)        Replace internet web site, internet website, internet site, or web site, including any variation in capitalization of any of these terms, with website in G.S. 7A‑38.2, 7A‑38.3F, 10B‑36, 14‑44.1, 14‑202.5, and any other statutes in which any of these terms appear. The Revisor of Statutes shall make a similar change when any of these terms is plural.

(6)        Replace rule making or rule‑making with rulemaking in G.S. 7B‑4001, 10B‑126, 15C‑12, 18B‑105, 20‑37.22, and any other statutes in which either of these terms appear.

The Revisor of Statutes may delete duplicative language resulting from these changes and may replace an with a to conform with these changes.

SECTION 30.  G.S. 14‑288.9 reads as rewritten:

§ 14‑288.9.  Assault on upon emergency personnel; punishments.

(a)        An assault upon emergency personnel is an assault upon any person coming included within the definition of emergency personnel which in subsection (b) of this section that is committed in an area:area in which either of the following applies:

(1)        In which a A declared state of emergency exists; orexists.

(2)        Within the immediate vicinity of which vicinity, a riot is occurring or is imminent.

(b)        The In this section, the term emergency personnel includes law‑enforcement officers, firemen, firefighters, ambulance attendants, utility workers, doctors, nurses, members of the North Carolina National Guard, and other persons lawfully engaged in providing essential services or otherwise discharging or attempting to discharge his or her their official duties during the an emergency.

(c)        Any A person who commits an assault upon emergency personnel is guilty of a Class H felony.

(d)       Any A person who commits an assault upon emergency personnel with or through the use of any a dangerous weapon or substance shall be punished as a Class F felon.is guilty of a Class F felony.

(e)        Any A person who commits an assault upon emergency personnel causing serious bodily injury to the emergency personnel is guilty of a Class E felony.

(f)        Any A person who commits an assault upon emergency personnel causing death to the emergency personnel is guilty of a Class D felony.

SECTION 31.(a)  G.S. 15A‑145.5 reads as rewritten:

§ 15A‑145.5.  Expunction of certain misdemeanors and felonies; no age limitation.

(a)        For purposes of this section, the term nonviolent misdemeanor or nonviolent felony means any misdemeanor or felony except the following:

…

(4)        Any of the following sex‑related or stalking offenses: G.S. 14‑27.25(b), 14‑27.30(b), 14‑190.7, 14‑190.8, 14‑190.9, 14‑202, 14‑208.11A, 14‑208.18, former 14‑277.3, 14‑277.3A, and 14‑321.1.

(5)        Any felony offense in Chapter 90 of the General Statutes where the offense involves that involves methamphetamines, heroin, or possession with intent to sell or deliver or sell and deliver cocaine.

(6)        An offense under G.S. 14‑12.12(b), 14‑12.13, or 14‑12.14, or any offense for which punishment was determined pursuant to G.S. 14‑3(c).G.S. 14‑3(c) was applied.

…

(c)        A person may file a petition, petition in the court of the county where the person was convicted. [The following applies:]The following provisions apply:

(1)        For expunction of one or more nonviolent misdemeanor convictions, the petition shall not be filed earlier than one of the following:the following, as applicable:

…

(2)        For expunction of up to three nonviolent felony convictions, the petition shall not be filed earlier than one of the following:the following, as applicable:

a.         For expunction of one nonviolent felony not subject to the waiting period set forth in sub‑subdivision a1. of this subdivision, 10 years after the date of the conviction or 10 years after any active sentence, period of probation, or post‑release supervision, supervision related to the conviction listed in the petition, has been served, whichever occurs later.

a1.       For expunction of one nonviolent felony under G.S. 14‑54(a), 15 years after the date of the conviction or 15 years after any active sentence, period of probation, or post‑release supervision, supervision related to the conviction listed in the petition, has been served, whichever occurs later.

b.         For expunction of two or three nonviolent felonies, 20 years after the date of the most recent conviction listed in the petition, or 20 years after any active sentence, period of probation, or post‑release supervision, supervision related to a conviction listed in the petition, petition has been served, whichever occurs later.

A person previously granted an expunction under this section is not eligible for relief under this section for any offense committed after the date of the previous order for expunction. Except as provided in subsections (c4) and (c5) of this section, a person previously granted an expunction under this section for one or more misdemeanors is not eligible for expunction of additional misdemeanors under this section section, and a person previously granted an expunction under this section for one or more felonies is not eligible for expunction of additional felonies under this section.

(c1)      A petition filed pursuant to this section shall contain, but not be limited to, the following:

(1)        An affidavit by the petitioner that the petitioner is of good moral character and one of the following statements:statements, as applicable:

…

(2)        Verified affidavits Affidavits of two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which the petitioner lives and that the petitioner's character and reputation are good.

(3)        A statement that the petition is a motion in the cause in the case wherein in which the petitioner was convicted.

(4)        An application on a form approved by the Administrative Office of the Courts requesting and authorizing a all of the following:

a.         A name‑based State and national criminal history record check by the State Bureau of Investigation using any information required by the Administrative Office of the Courts to identify the individual, a individual.

b.         A search by the State Bureau of Investigation for any outstanding warrants on or pending criminal cases, and a cases.

c.         A search of the confidential record of expunctions maintained by the Administrative Office of the Courts.

The application shall be filed with the clerk of superior court. The clerk of superior court court, who shall forward the application it to the State Bureau of Investigation and to the Administrative Office of the Courts, which shall Courts to conduct the searches and report their findings to the court.

…

Upon filing of the petition, the petition shall be served upon the district attorney of the court wherein in which the case was tried resulting in conviction. The district attorney shall then have 30 days thereafter in which to file any an objection thereto and shall be duly notified as to the date of the hearing of the petition. Upon good cause shown, the court may grant the district attorney an additional 30 days to file an objection to the petition. The district attorney shall make his or her best efforts to contact the victim, if any, to notify the victim of the request for expunction prior to the date of the hearing. Upon request by the victim, the victim has a right to be present at any hearing on the petition for expunction expunction, and the victim's views and concerns shall be considered by the court at such the hearing.

The presiding judge is authorized to may call upon a probation officer for any additional investigation or verification of the petitioner's conduct since the conviction. The court shall review any other information the court deems relevant, including, but not limited to, affidavits or other testimony provided by law enforcement officers, district attorneys, and victims of crimes committed by the petitioner.

(c2)      The court, after hearing a petition for expunction of one or more nonviolent misdemeanors, shall order that the petitioner be restored, in the contemplation of the law, to the status the petitioner occupied before the arrest or indictment arrest, indictment, or information, except as provided in G.S. 15A‑151.5, if the court finds all of the following:

…

(3)        The petitioner has no outstanding warrants or pending criminal cases, is not under indictment, and no finding of probable cause exists against the defendant petitioner for a felony, felony in any federal court or state court in the United States.

(3a)      The petitioner is not free on bond or personal recognizance pending trial, appeal, or sentencing in any federal court or state court in the United States for a crime which that would prohibit the person from having his or her the petition for expunction under this section granted.

…

(6)        The petitioner has no convictions for a misdemeanor or felony conviction that is listed as an exception to the terms nonviolent misdemeanor or nonviolent felony as provided in subsection (a) of this section.

…

(c3)      The court, after hearing a petition for expunction of one or up to three nonviolent felonies, may order that the petitioner be restored, in the contemplation of the law, to the status the petitioner occupied before the arrest or indictment arrest, indictment, or information, except as provided in G.S. 15A‑151.5, if the court finds all of the following:

…

(3)        The petitioner has no outstanding warrants or pending criminal cases, is not under indictment, and no finding of probable cause exists against the defendant petitioner for a felony, felony in any federal court or state court in the United States.

(3a)      The petitioner is not free on bond or personal recognizance pending trial, appeal, or sentencing in any federal court or state court in the United States for a crime which that would prohibit the person from having his or her petition for expunction under this section granted.

…

(5)        The petitioner has no outstanding restitution orders or civil judgments representing amounts ordered for restitution entered against the petitioner.

(6)        The petitioner has no convictions for a misdemeanor conviction that is listed as an exception to the term nonviolent misdemeanor as provided in subsection (a) of this section or any other felony offense.conviction.

…

(c4)      A person petitioning who petitions for expunction of multiple convictions pursuant to sub‑subdivision b. of subdivision (1) of subsection (c) of this section or sub‑subdivision b. of subdivision (2) of subsection (c) of this section, where the section and whose convictions were obtained in more than one county, county shall file a petition in each county of conviction. All petitions shall be filed within a 120‑day period. period, except that the court may grant a petition for expunction filed outside this period if good cause is shown for the failure to file the petition within this period. The granting of one petition shall not preclude the granting of any other petition filed within the same 120‑day period. Notwithstanding the provisions of this subsection, upon good cause shown for the failure to file a petition within the 120‑day period, the court may grant a petition for expunction filed outside the 120‑day period.

…

(d)       No person as to whom an order has been entered pursuant to subsection (c) of this section shall be held thereafter under any provision of any law to be guilty of perjury or otherwise giving a false statement by reason of that person's failure to recite or acknowledge the arrest, indictment, information, trial, or conviction. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

(d1)     Persons pursuing certification under the provisions of Article 1 of Chapter 17C or Article 2 of Chapter 17E of the General Statutes, however, shall disclose any and all convictions to the certifying Commission, regardless of whether or not the convictions were expunged pursuant to the provisions of this section.

(d2)     Persons requesting that a disclosure statement be prepared by the North Carolina Sheriffs' Education and Training Standards Commission pursuant to Article 3 of Chapter 17E of the General Statutes, however, shall disclose any and all felony convictions to the North Carolina Sheriffs' Education and Training Standards Commission regardless of whether or not the felony convictions were expunged pursuant to the provisions of this section.

(d3)     Persons required by State law to obtain a criminal history record check on a prospective employee shall are not be deemed to have knowledge of any convictions expunged under this section.

(e)        The If the petition is granted, the court shall also order that the conviction or convictions be expunged from the records of the court and direct all law enforcement agencies bearing record of the same conviction to expunge their records of the conviction. The clerk shall notify State and local agencies of the court's order, as provided in G.S. 15A‑150.

(f)        Any other applicable State or local government agency shall expunge from its records entries made as a result of the conviction or convictions ordered expunged under this section upon receipt from the petitioner of an order entered pursuant to this section. The An agency shall also vacate any administrative actions taken against a person whose record is expunged under this section as a result of the charges or convictions expunged. A person whose administrative action has been vacated by an occupational licensing board pursuant to an expunction under this section may then reapply for licensure and must shall satisfy the board's then current education and preliminary licensing requirements at the time of reapplication in order to obtain licensure. This subsection shall does not apply to the Department of Justice for DNA records and samples stored in the State DNA Database and the State DNA Databank.

(g)        A person who files a petition for expunction of a criminal record under this section must shall pay the clerk of superior court a fee of one hundred seventy‑five dollars ($175.00) at the time the petition is filed. Fees collected under this subsection shall be deposited in the General Fund. This subsection does not apply to petitions filed by an indigent.indigent person.

SECTION 31.(b)  G.S. 15A‑145 reads as rewritten:

§ 15A‑145.  Expunction of records for misdemeanors of first offenders under the age of 18 at the time of conviction of misdemeanor; expunction of certain other misdemeanors.and of underage persons possessing alcohol.

(a)        Whenever any person who has not previously been convicted of any felony, or misdemeanor other than a traffic violation, under the laws of the United States, the laws of this State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic violation, and the offense was committed before the person attained the age of 18 years, or (ii) pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to G.S. 18B‑302(b)(1), and the offense was committed before the person attained the age of 21 years, he may file a petition in the court of the county where he was convicted for expunction of the misdemeanor from his criminal record. The petition cannot be filed earlier than: (i) two years after the date of the conviction, or (ii) the completion of any period of probation, whichever occurs later, and the petition shall contain, but not be limited to, the following:

…

(2)        Verified affidavits Affidavits of two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which he the petitioner lives and that his the petitioner's character and reputation are good.

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(b1)      No person as to whom such order has been entered shall be held thereafter under any provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of his failure to recite or acknowledge such arrest, or indictment, information, or trial, or response to any inquiry made of him for any purpose. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(c)  G.S. 15A‑145.1 reads as rewritten:

§ 15A‑145.1.  Expunction of records for first offenders under the age of 18 at the time of conviction commission of certain gang offenses.

(a)        Whenever any person who has not previously been convicted of any felony or misdemeanor other than a traffic violation under the laws of the United States or the laws of this State or any other state pleads guilty to or is guilty of (i) a Class H felony under Article 13A of Chapter 14 of the General Statutes or (ii) an enhanced offense under G.S. 14‑50.22, or has been discharged and had the proceedings against the person dismissed pursuant to G.S. 14‑50.29, and the offense was committed before the person attained the age of 18 years, the person may file a petition in the court of the county where the person was convicted for expunction of the offense from the person's criminal record. Except as provided in G.S. 14‑50.29 upon discharge and dismissal, the petition cannot be filed earlier than (i) two years after the date of the conviction or (ii) the completion of any period of probation, whichever occurs later. The petition shall contain, but not be limited to, the following:

…

(2)        Verified affidavits Affidavits of two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which the petitioner lives, and that the petitioner's character and reputation are good.

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(b1)      No person as to whom such order has been entered shall be held thereafter under any provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of the person's failure to recite or acknowledge such arrest, or indictment or information, or trial, or response to any inquiry made of the person for any purpose. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(d)  G.S. 15A‑145.2 reads as rewritten:

§ 15A‑145.2.  Expunction of records for first offenders not over 21 years of age at the time of the offense of certain drug offenses.

(a)        Whenever a person is discharged, and the proceedings against the person dismissed, pursuant to G.S. 90‑96(a) or (a1), and the person was not over 21 years of age at the time of the offense, the person may apply to the court of the county where charged for an order to expunge from all official records, other than the confidential files retained under G.S. 15A‑151, all recordation relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal and discharge pursuant to this section. The applicant shall attach to the petition the following:

…

(2)        Verified affidavits Affidavits by two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which he or she lives, and that the petitioner's character and reputation are good;

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(a1)      No person as to whom such order was entered shall be held thereafter under any provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the person's failures to recite or acknowledge such arrest, or indictment or information, or trial in response to any inquiry made of him or her for any purpose. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(e)  G.S. 15A‑145.3 reads as rewritten:

§ 15A‑145.3.  Expunction of records for first offenders not over 21 years of age at the time of the offense of certain toxic vapors offenses.

(a)        Whenever a person is discharged and the proceedings against the person dismissed under G.S. 90‑113.14(a) or (a1), such person, if he or she was not over 21 years of age at the time of the offense, may apply to the court of the county where charged for an order to expunge from all official records, other than the confidential files retained under G.S. 15A‑151, all recordation relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal and discharge pursuant to this section. The applicant shall attach to the petition the following:

…

(2)        Verified affidavits Affidavits by two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which the petitioner lives, and that his or her character and reputation are good;

…

(b1)      No person as to whom such order has been entered shall be held thereafter under any provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the person's failures to recite or acknowledge such arrest, or indictment or information, or trial in response to any inquiry made of him or her for any purpose. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(f)  G.S. 15A‑145.4 reads as rewritten:

§ 15A‑145.4.  Expunction of records for first offenders who are under 18 years of age at the time of the commission of a nonviolent felony.

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(c)        Whenever any person who had not yet attained the age of 18 years at the time of the commission of the offense and has not previously been convicted of any felony or misdemeanor other than a traffic violation under the laws of the United States or the laws of this State or any other state pleads guilty to or is guilty of a nonviolent felony, the person may file a petition in the court of the county where the person was convicted for expunction of the nonviolent felony from the person's criminal record. The petition shall not be filed earlier than four years after the date of the conviction or when any active sentence, period of probation, and post‑release supervision has been served, whichever occurs later. The person shall also perform at least 100 hours of community service, preferably related to the conviction, before filing a petition for expunction under this section. The petition shall contain the following:

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(2)        Verified affidavits Affidavits of two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which the petitioner lives and that the petitioner's character and reputation are good.

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(f)        No person as to whom an order has been entered pursuant to subsection (e) of this section shall be held thereafter under any provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of that person's failure to recite or acknowledge the arrest, indictment, information, trial, or conviction. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(g)  G.S. 15A‑145.6 reads as rewritten:

§ 15A‑145.6.  Expunctions for certain defendants convicted of prostitution.

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(c)        The petition shall contain all of the following:

…

(2)        Verified affidavits Affidavits of two persons, who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which the petitioner lives and that the petitioner's character and reputation are good.

…

(g)        No person as to whom an order has been entered pursuant to subsection (f) of this section shall be held thereafter under any provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of that person's failure to recite or acknowledge the arrest, indictment, information, trial, or conviction. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(h)  G.S. 15A‑145.7 reads as rewritten:

§ 15A‑145.7.  Expunction of records for first offenders under 20 years of age at the time of the offense of certain offenses.

(a)        Whenever a person is discharged, and the proceedings against the person dismissed, pursuant to G.S. 14‑277.8, and the person was under 20 years of age at the time of the offense, the person may apply to the court of the county where charged for an order to expunge from all official records, other than the confidential files retained under G.S. 15A‑151, all recordation relating to the person's arrest, indictment or information, trial, finding of guilty, and dismissal and discharge pursuant to this section. The applicant shall attach to the petition the following:

…

(2)        Verified affidavits Affidavits by two persons who are not related to the petitioner or to each other by blood or marriage, that they know the character and reputation of the petitioner in the community in which he or she lives, and that the petitioner's character and reputation are good;good.

…

(b)        No person as to whom such order was entered shall be held thereafter under any provision of any law to be guilty of perjury or otherwise giving a false statement by reason of the person's failures to recite or acknowledge such arrest, or indictment or information, or trial in response to any inquiry made of him or her for any purpose. This subsection shall The effect of an expunction under this section is governed by G.S. 15A‑153, except that the protected nondisclosure under G.S. 15A‑153(b) does not apply to a sentencing hearing when the person has been convicted of a subsequent criminal offense.

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SECTION 31.(i)  G.S. 15A‑145.8 reads as rewritten:

§ 15A‑145.8.  Expunction of records when charges are remanded to district court for juvenile adjudication.

(a)        Upon remand pursuant to G.S. 7B‑2200(c) or G.S. 7B‑2200.5(d) or removal pursuant to G.S. 15A‑960, the court shall order expunction of all remanded or removed charges. No person as to whom such an order has been entered shall be held thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise giving a false statement or response to any inquiry made for any purpose, by reason of his or her failure to recite or acknowledge any expunged entries concerning apprehension or trial.The effect of an expunction under this section is governed by G.S. 15A‑153.

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SECTION 31.(j)  G.S. 15A‑145.8A reads as rewritten:

§ 15A‑145.8A.  Expunction of records for offenders under the age of 18 at the time of commission of certain misdemeanors and felonies upon completion of the sentence.

…

(f)        No person as to whom such order has been entered shall be held thereafter under any provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of that person's failure to recite or acknowledge such arrest, or indictment, information, or trial, or response to any inquiry made of the person for any purpose.The effect of an expunction under this section is governed by G.S. 15A‑153.

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SECTION 31.(k)  G.S. 15A‑145.9 reads as rewritten:

§ 15A‑145.9.  Expunctions of certain offenses committed by human trafficking victims.

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(g)        Effect. – No person as to whom an order has been entered pursuant to subsection (f) of this section shall be held thereafter under any provision of any laws to be guilty of perjury or otherwise giving false statement by reason of that person's failure to recite or acknowledge the arrest, indictment, information, trial, or conviction.The effect of an expunction under this section is governed by G.S. 15A‑153.

Persons required by State law to obtain a criminal history record check on a prospective employee shall not be deemed to have knowledge of any convictions expunged under this section.

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SECTION 31.(l)  G.S. 15A‑146 reads as rewritten:

§ 15A‑146.  Expunction of records when charges are dismissed or there are findings of not guilty.

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(a3)      Effect of Expunction. – Except as provided in G.S. 15A‑151.5(b)(5), no person as to whom an order has been entered by a court or by operation of law under this section shall be held thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise giving a false statement or response to any inquiry made for any purpose, by reason of the person's failure to recite or acknowledge any expunged entries concerning apprehension or trial.The effect of an expunction under this section is governed by G.S. 15A‑153.

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SECTION 31.(m)  G.S. 15A‑147 reads as rewritten:

§ 15A‑147.  Expunction of records when charges are dismissed or there are findings of not guilty as a result of identity theft or mistaken identity.

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(b)        No person as to whom such an order has been entered under this section shall be held thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise giving a false statement or response to any inquiry made for any purpose, by reason of the person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, or trial.The effect of an expunction under this section is governed by G.S. 15A‑153.

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SECTION 31.(n)  G.S. 15A‑149 reads as rewritten:

§ 15A‑149.  Expunction of records when pardon of innocence is granted.

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(c)        No person as to whom such an order has been entered under this section shall be held thereafter under any provision of any law to be guilty of perjury, or to be guilty of otherwise giving a false statement or response to any inquiry made for any purpose, by reason of the person's failure to recite or acknowledge any expunged entries concerning apprehension, charge, or trial.The effect of an expunction under this section is governed by G.S. 15A‑153.

SECTION 31.(o)  G.S. 15A‑153 reads as rewritten:

§ 15A‑153.  Effect of expunction; prohibited practices by employers, educational institutions, agencies of State and local governments.

(a)        Purpose. – The purpose of this section is to clear the public record of any entry of any arrest, criminal charge, or criminal conviction that has been expunged so that (i) the person who is entitled to and obtains receives the expunction may omit reference to the charges or convictions to potential employers and others and (ii) a records check for prior arrests and convictions will not disclose the expunged entries. Nothing in this section shall be construed to prohibit an employer from asking a job applicant about criminal charges or convictions that have not been expunged and are part of the public record.

(b)        Nondisclosure Protected. – No person as to whom an order of expunction has been entered who receives an expunction pursuant to this Article shall be held thereafter under any provision of any laws to be is guilty of perjury or otherwise giving a false statement by reason of that person's failure following expunction to recite or acknowledge any the expunged arrest, apprehension, charge, indictment, information, trial, or conviction in response to any inquiry made of him or her the person for any purpose other than as provided in subsection (e) of this section.

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SECTION 31.1.(a)  G.S. 41‑71 reads as rewritten:

§ 41‑71.  Creation of a joint tenancy with right of survivorship.

(a)        A conveyance to resulting in two or more persons owning property creates a tenancy in common unless a joint tenancy with right of survivorship is created as provided in subsection (b) of this section or a tenancy by the entirety is created as provided by the law governing tenancy by the entireties.

(b)        A conveyance to resulting in two or more persons owning property creates a joint tenancy with right of survivorship between or among the parties to the instrument if the instrument expresses an intent to create a joint tenancy with right of survivorship. The following words in the instrument shall be are deemed to express an intent to create a joint tenancy with right of survivorship unless the instrument otherwise provides: joint tenants with right of survivorship, joint tenants, joint tenancy, tenants in common with right of survivorship, joint with right of survivorship, with right of survivorship.

(c)        Nothing in this Article prohibits joint tenants from entering into any agreement with regard to the property held in joint tenancy, including, without limitation, an agreement that notice must be given to other joint tenants before any joint tenant terminates the joint tenancy as provided in G.S. 41‑73(b).

SECTION 31.1.(b)  This section is retroactively effective June 30, 2020.

SECTION 32.  G.S. 48‑3‑309 reads as rewritten:

§ 48‑3‑309.  Mandatory preplacement criminal checks of prospective adoptive parents seeking to adopt a minor who is in the custody or placement responsibility of a county department of social services and mandatory preplacement criminal checks of all individuals 18 years of age or older who reside in the prospective adoptive home.history checks.

(a)        The Department shall ensure that the criminal histories of all prospective adoptive parents seeking to adopt a minor who is in the custody or placement responsibility of a county department of social services and the criminal histories of all individuals 18 years of age or older who reside in the prospective adoptive home are checked prior to placement and, based on the criminal history, a determination is made as to the prospective adoptive parent's fitness to have responsibility for the safety and well‑being of children and whether other individuals required to be checked are fit for an adoptive child to reside with them in the home. The Department shall ensure that all individuals required to be checked are checked prior to placement for county, state, and federal criminal histories.

(b)        A county department of social services shall issue an unfavorable preplacement assessment to a prospective adoptive parent if an individual required to submit to a criminal history check pursuant to subsection (a) of this section has a criminal history. A county department of social services shall issue an unfavorable preplacement assessment to a prospective adoptive parent if the county department of social services determines, pursuant to G.S. 48‑3‑303(e), that, based on other criminal convictions, whether felony or misdemeanor, the prospective adoptive parent is unfit to have responsibility for the safety and well‑being of children or other individuals required to be checked are unfit for an adoptive child to reside with them in the home.

histories

(c)        The State Bureau of Investigation shall provide to the Department of Health and Human Services the criminal history of any individual required to be checked under subsection (a) of this section as requested by the Department and obtained from the State and National Repositories of Criminal Histories. The Department shall provide to the State Bureau of Investigation, along with the request, the fingerprints of any individual to be checked, any additional information required by the State Bureau of Investigation, and a form consenting to the check of the criminal record and to the use of fingerprints and other identifying information required by the State or National Repositories signed by the individual to be checked. The fingerprints of any individual to be checked shall be used by the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check.

(d)       At the time of the request for a preplacement assessment or at a subsequent time prior to placement, any individual whose criminal history is to be checked shall be furnished with a statement substantially similar to the following:

NOTICE

MANDATORY CRIMINAL HISTORY CHECK: NORTH CAROLINA LAW REQUIRES THAT A CRIMINAL HISTORY CHECK BE CONDUCTED PRIOR TO PLACEMENT ON PROSPECTIVE ADOPTIVE PARENTS SEEKING TO ADOPT A MINOR WHO IS IN THE CUSTODY OR PLACEMENT RESPONSIBILITY OF A COUNTY DEPARTMENT OF SOCIAL SERVICES AND ON ALL PERSONS 18 YEARS OF AGE OR OLDER WHO RESIDE IN THE PROSPECTIVE ADOPTIVE HOME.

Criminal history means a county, State, or federal conviction of a felony by a court of competent jurisdiction or a pending felony indictment of a crime for child abuse or neglect, spousal abuse, a crime against a child, including child pornography, or for a crime involving violence, including rape, sexual assault, or homicide, other than physical assault or battery; a county, State, or federal conviction of a felony by a court of competent jurisdiction or a pending felony indictment for physical assault, battery, or a drug‑related offense, if the offense was committed within the past five years; or similar crimes under federal law or under the laws of other states. Your fingerprints will be used to check the criminal history records of the State Bureau of Investigation (SBI) and the Federal Bureau of Investigation (FBI).

If it is determined, based on your criminal history, that you are unfit to have responsibility for the safety and well‑being of children or have an adoptive child reside with you, you shall have the opportunity to complete, or challenge the accuracy of, the information contained in the SBI or FBI identification records.

If the prospective adoptive parent is denied a favorable preplacement assessment by a county department of social services as a result of a criminal history check as required under G.S. 48‑3‑309(a), the prospective adoptive parent may request a review of the assessment pursuant to G.S. 48‑3‑308(a).

Any person who intentionally falsifies any information required to be furnished to conduct the criminal history is guilty of a Class 2 misdemeanor.

Refusal to consent to a criminal history check by any individual required to be checked under G.S. 48‑3‑309(a) subsection (a) of this section is grounds for the issuance by a county department of social services of an unfavorable preplacement assessment. Any person who intentionally falsifies any information required to be furnished to conduct the criminal history is guilty of a Class 2 misdemeanor.

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(g)        There is no liability for negligence on the part of a State or local agency, or the employees of a State or local agency, arising from any action taken or omission by any of them in carrying out the provisions of this section. The immunity established by this subsection shall does not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be is deemed to have been waived to the extent of indemnification by insurance, indemnification under Article 31A of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes.

(h)        The State Bureau of Investigation shall perform the State and national criminal history checks on prospective adoptive parents seeking to adopt a minor in the custody or placement responsibility of a county department of social services and all individuals 18 years of age or older who reside in the prospective adoptive home and shall charge the Department of Health and Human Services a reasonable fee only for conducting the checks of the national criminal history records authorized required by this section. The Division of Social Services, Services of the Department of Health and Human Services, Services shall bear the costs of implementing this section.

SECTION 33.(a)  G.S. 58‑36‑43 reads as rewritten:

§ 58‑36‑43.  Optional approved program enhancements authorized not altering coverage under not within Rate Bureau jurisdiction.

(a)        Member companies writing private passenger automobile, homeowners', dwelling, or residential private flood insurance under this Article may incorporate optional enhancements to their automobile, homeowners', dwelling, and residential private flood these programs as an endorsement to an automobile, homeowners', dwelling, or residential private flood policy issued under this Article a policy if the insurer has filed the proposed enhancement enhancements with the Commissioner and if the proposed enhancement is approved by the Commissioner. the Commissioner has approved them. Any approved optional enhancements shall be considered are outside the authority of the Rate Bureau. If the a proposed enhancement will include an additional premium charge, the proposed premium charge shall be included with the proposed program enhancements filed with the Commissioner. The Commissioner shall review the proposed premium charges and approve them if the Commissioner finds that they are based on sound actuarial principles. Amendments to private passenger automobile, homeowners', dwelling, or residential private flood program enhancements are subject to the same requirements as initial filings. dwelling, residential private flood

A company shall not condition (i) the acceptance or renewal of a policy, (ii) any underwriting criteria, or (iii) any rating criteria upon the acceptance by the policyholder of any optional automobile or homeowners' enhancements authorized by this section. A rate amendment authorized by this section is not a rate deviation and is not subject to the requirements for rate deviations set forth in G.S. 58‑36‑30(a).

(b)        Repealed by S.L. 2023‑133, s. 16(c), as amended by S.L. 2024‑29, s. 9(b), effective July 1, 2025.

SECTION 33.(b)  This section becomes effective July 1, 2025.

SECTION 34.(a)  Part 1 of Article 45 of Chapter 66 of the General Statutes reads as rewritten:

Part 1. Pawnbrokers and Cash Currency Converters.

§ 66‑385.  Short title.

This Part shall be known and may be cited as the Pawnbrokers and Cash Currency Converters Modernization Act.

§ 66‑386.  Purpose.

The making of pawn loans and the acquisition and disposition of tangible personal property by and through pawnshops and cash currency converters vitally affects the general economy of this State and the public interest and welfare of its citizens. In recognition of these facts, it is the policy of this State and the purpose of the Pawnbrokers and Cash Converters Modernization Act this Part to do all of the following:

(1)        Ensure a sound system of making loans and acquiring and disposing of tangible personal property by and through pawnshops, pawnshops and to prevent unlawful property transactions, particularly in stolen property, through licensing and regulating pawnbrokers.

(2)        Ensure a sound system of acquiring and disposing of tangible personal property by and through cash currency converters and to prevent unlawful property transactions, particularly in stolen property, by requiring record keeping by cash currency converters.

(3)        Provide for pawnbroker licensing fees and investigation fees of licensees.

(4)        Ensure financial responsibility to the State and the general public.

(5)        Ensure compliance with federal and State laws.

(6)        Assist local governments in the exercise of their police authority.

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SECTION 34.(b)  G.S. 25‑9‑201 reads as rewritten:

§ 25‑9‑201.  General effectiveness of security agreement.

(a)        General effectiveness. – Effectiveness. – Except as otherwise provided in this Chapter, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.

(b)        Applicable consumer laws and other law. – Consumer Laws and Other Law. – A transaction subject to this Article is subject to any applicable rule of law which that establishes a different rule for consumers, to any other statute, rule, or regulation statute or rule of this State that regulates the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit, and to any consumer‑protection statute, rule, or regulation statute or rule of this State, including Chapter 24 of the General Statutes, the Retail Installment Sales Act (Chapter 25A of the General Statutes), the North Carolina Consumer Finance Act (Article 15 of Chapter 53 of the General Statutes), and the Pawnbrokers and Cash Currency Converters Modernization Act (Part 1 of Article 45 of Chapter 66 of the General Statutes).

(c)        Other applicable law controls. – Applicable Law Controls. – In case of conflict between this Article and a rule of law, statute, or regulation law described in subsection (b) of this section, the rule of law, statute, or regulation law controls. Failure to comply with a statute or regulation law described in subsection (b) of this section has only the effect the statute or regulation law specifies.

(d)       Further deference to other applicable law. – Deference to Other Applicable Law. – This Article does not:neither of the following:

(1)        Validate any rate, charge, agreement, or practice that violates a rule of law, statute, or regulation law described in subsection (b) of this section; or section.

(2)        Extend the application of the rule of law, statute, or regulation a rule of law to a transaction not otherwise subject to it.

SECTION 35.(a)  The subunits of G.S. 75D‑3 are renumbered to conform to the General Statutes numbering system, and the definitions in G.S. 75D‑3 are reordered so that they appear in alphabetical order.

SECTION 35.(b)  G.S. 75D‑3, as amended by subsection (a) of this section and Section 1(b) of S.L. 2024‑22, reads as rewritten:

§ 75D‑3.  Definitions.

As used in this Chapter, the term:The following definitions apply in this Chapter:

(1)        Attorney General means the Attorney General. – The Attorney General of North Carolina or any employee of the Department of Justice designated by him the Attorney General in writing. Any district attorney of this State, with his the Attorney General's consent, may be designated in writing by the Attorney General to enforce the provisions of this Chapter.

(2)        a.   Beneficial interest means either Beneficial interest. – Either of the following:

1.a.      The interest of a person as a beneficiary under any other a trust arrangement pursuant to which a trustee holds legal or record title to real property for the benefit of such person; orthe person.

2.b.      The interest of a person under any other form of express fiduciary arrangement pursuant to which any other another person holds legal or record title to real property for the benefit of such the person.

b.   Beneficial interest The term does not include the interest of a stockholder in a corporation or the interest of a partner in either a general partnership or limited partnership. A beneficial interest shall be is deemed to be located where the real property owned by the trustee is located.

(3)        Civil proceeding means any Civil proceeding. – A civil proceeding commenced by the Attorney General or an injured person under any provision of this Chapter.

(4)        Criminal proceeding means any Criminal proceeding. – A criminal action commenced by the State for a violation of any provision of those criminal laws referred to in G.S. 75D‑3(c).set forth in subdivision (8) of this section.

(5)        Documentary material means any Documentary material. – A book, paper, document, writing, drawing, graph, chart, photograph, phonocord, magnetic tape, computer printout, other data compilation from which information can be obtained or from which information can be translated into useable form, or other tangible item.

(6)        Enterprise means any Enterprise. – A person, sole proprietorship, partnership, corporation, business trust, union chartered under the laws of this State, or other legal entity; or any an unchartered union, association, or group of individuals associated in fact although not a legal entity; and it entity. The term includes illicit as well as licit enterprises and governmental as well as other entities.

(7)        Pattern of racketeering activity means engaging Pattern of racketeering activity. – Engaging in at least two incidents of racketeering activity that have the same or similar purposes, results, accomplices, victims, or methods of commission or otherwise are interrelated by distinguishing characteristics and are not isolated and unrelated incidents, provided incidents so long as at least one of such these incidents occurred after October 1, 1986, and that at least one other of such these incidents occurred within a four‑year period of time of the other, excluding any periods of imprisonment, after the commission of a prior incident of racketeering activity.

(8)        a.   Racketeering activity means to Racketeering activity. – To commit, to attempt to commit, or to solicit, coerce, or intimidate another person to commit an act or acts which that would be chargeable by indictment if such the act or acts were was accompanied by the necessary mens rea or criminal intent under the following laws of this State:

1.a.      Article 5 of Chapter 90 of the General Statutes of North Carolina relating to controlled substances and counterfeit controlled substances;substances.

2.b.      Chapter 14 of the General Statutes of North Carolina except Articles 9, 22A, 38, 40, 43, 46, 47, 59 thereof; and further excepting G.S. Sections 14‑78.1, 14‑82, 14‑86, and 59 of that Chapter and G.S. 14‑82, 14‑145, 14‑146, 14‑147, 14‑177, 14‑178, 14‑179, 14‑183, 14‑184, 14‑186, 14‑190.9, 14‑195, 14‑197, 14‑201, 14‑202, 14‑247, 14‑248, 14‑313 thereof.and 14‑313.

3.         Any conduct involved in a money laundering activity, including activity covered by G.S. 14‑118.8; and

b.   Racketeering activity The term also includes the description in Title 18, United States Code, Section 1961(1).racketeering activity, as defined in 18 U.S.C. § 1961(1), and any conduct involved in a money laundering activity, including activity covered by G.S. 14‑118.8.

(9)        Real property means any Real property. – Any real property situated in this State or any an interest in such the real property, including, but not limited to, any a lease of or mortgage upon such the real property.

(10)      RICO lien notice means the RICO lien notice. – The notice described in G.S. 75D‑13.

(11)      a.   Trustee means either Trustee. – Either of the following:

1.a.      Any A person who that holds legal or record title to real property for in which any other another person has a beneficial interest; orinterest.

2.b.      Any A successor trustee or trustees to any of the foregoing persons.to a person described in sub‑subdivision a. of this subdivision.

b.         Trustee The term does not include the following:either

1.         Any (i) a person appointed or acting as a personal representative under Chapter 35A of the General Statutes relating to guardian and ward, or under Chapter 28A of the General Statutes relating to the administration of estates; or estates or

2.         Any (ii) a person appointed or acting as a trustee of any a testamentary trust or as trustee of any an indenture of trust under which any bonds are to be issued.

SECTION 35.(c)  G.S. 75D‑5 reads as rewritten:

§ 75D‑5.  RICO civil forfeiture proceedings.

(a)        All property of every kind used or intended for use in the course of, derived from, or realized through a racketeering activity or pattern of racketeering activity is subject to forfeiture to the State. Forfeiture shall be had by a civil procedure known as a RICO forfeiture proceeding.

(b)        A RICO forfeiture proceeding shall be is governed by Chapter 1A of the General Statutes of North Carolina except to the extent that special rules of procedure are stated in this Chapter.

(c)        A RICO forfeiture proceeding shall be is an in rem proceeding against the property.

(d)       A RICO forfeiture proceeding shall be instituted by complaint and prosecuted only by the Attorney General of North Carolina or his designated representative. General. The proceeding may be commenced and a final judgment rendered thereon before or after seizure of the property and before or after any a criminal conviction of any person for violation of those laws any law set forth in G.S. 75D‑3(c).G.S. 75D‑3(8).

(e)        If the complaint is filed before seizure, it shall state what property is sought to be forfeited, that the property is within the jurisdiction of the court, the grounds for forfeiture, and the names of all persons known to have or claim an interest in the property. The court shall determine ex parte whether there is reasonable ground to believe that the property is subject to forfeiture and, if the State so alleges, whether notice to those persons having or claiming an interest in the property prior to seizure would cause the loss or destruction of the property. If the court finds:The court shall take action as follows:

(1)        That If the court finds that reasonable ground does not exist to believe that the property is subject to forfeiture, it shall dismiss the complaint; orcomplaint.

(2)        That If the court finds that reasonable ground does exist to believe the property is subject to forfeiture but there is not reasonable ground to believe that prior notice would result in loss or destruction, it shall order service on all persons known to have or claim an interest in the property prior to a further hearing on whether a writ of seizure should issue; orissue.

(3)        That If the court finds that there is reasonable ground to believe that the property is subject to forfeiture and to believe that prior notice would cause loss or destruction, it shall shall, without any further hearing or notice, issue a writ of seizure directing the sheriff of or any other law enforcement officer in the county where the property is found to seize it.

(f)        Seizure may be effected by a law enforcement officer authorized to enforce the penal laws of this State prior to the filing of the complaint and without a writ of seizure if the seizure is incident to a lawful arrest, search, or inspection and the officer has probable cause to believe the property is subject to forfeiture and will be lost or destroyed if not seized. Within 24 hours of the time of seizure, the seizure shall be reported by the officer to the district attorney of the prosecutorial district as defined in G.S. 7A‑60 in which the seizure is effected who shall immediately report such the seizure to the Attorney General. The Attorney General shall, within 30 days after receiving notice of seizure, examine the evidence surrounding such the seizure, and if he the Attorney General believes reasonable ground exists for forfeiture under this Chapter, the Attorney General shall file a complaint for forfeiture. The complaint shall state, in addition to the information required in subsection (e) of this section, the date and place of seizure.

(g)        After the complaint is filed or the seizure effected, whichever is later, every person known to have or claim an interest in the property, or in the property or enterprise of which the subject property is a part or represents any interest, shall be served, if not previously served, with a copy of the complaint and a notice of seizure in the manner provided by Chapter 1A of the General Statutes of North Carolina. Statutes. Service by publication may be ordered upon any party whose whereabouts cannot be determined with reasonable diligence within 30 days of the filing of the complaint.

(h)       (1)        Any A person claiming an interest in the property, property may become a party to the action at any time prior to judgment whether named in the complaint or not. Any A party claiming a substantial interest in the property, upon motion motion, may be allowed by the court to take possession of the property upon posting bond with good and sufficient security in double the amount of the property's value conditioned to pay the value of any interest in the property found to be subject to forfeiture or the value of any interest of another not subject to forfeiture.

(2)        The court, upon such any terms and conditions as it may prescribe, that it prescribes, may order that the property be sold by an innocent party who that holds a lien on or security interest in the property at anytime any time during the proceedings. Any proceeds from such the sale over and above the amount necessary to satisfy the lien or security interest shall be paid into court pending final judgment in the forfeiture proceeding. No such sale shall be ordered, however, unless the obligation upon which the lien or security interest is based is in default.

(3)        Pending final judgment in the forfeiture proceeding, the court may make any other disposition of the property necessary to protect it or in the interest of substantial justice, justice and which that adequately protects the interests of innocent parties.

(i)         The interest of an innocent party in the property shall not be is not subject to forfeiture. An innocent party is one who that did not have actual or constructive knowledge that the property was subject to forfeiture. An attorney who is paid a fee for representing any a person subject to this act, shall be Chapter is rebuttably presumed to be an innocent party as to that fee transaction.

(j)         Subject to the requirement of protecting the interest of all innocent parties, the court may, after judgment of forfeiture, make any of the following orders for disposition of the property:

(1)        Destruction of the property or contraband, the possession of, or use of, which is illegal;illegal.

(2)        Retention for official use by a law enforcement agency, the State State, or any political subdivision thereof. When such the agency or political subdivision no longer has use for such the property, it shall be disposed of by judicial sale as provided in Article 29A of Chapter 1 of the General Statutes of North Carolina, Statutes, and the proceeds shall be paid to the State Treasurer;Treasurer.

(3)        Transfer to the Department of Natural and Cultural Resources of property useful for historical or instructional purposes;purposes.

(4)        Retention of the property by any an innocent party having an interest therein, in it, including the right to restrict sale of an interest to outsiders, such as a right of first refusal, upon payment or approval of a plan for payment into court of the value of any forfeited interest in the property. The plan may include, in the case of an innocent party who that holds an interest in the property through an estate a tenancy by the entirety, or an undivided interest in the property, interest, or a lien on or security interest in the property, interest, the sale of the property by the innocent party under such any terms and conditions as may be prescribed by the court and the payment into court of any proceeds from such the sale over and above the amount necessary to satisfy the divided ownership value of the innocent party's interest or the lien or security interest. interest. Proceeds paid into the court must shall then be paid to the State Treasurer;Treasurer.

(5)        Judicial sale of the property as provided in Article 29A of Chapter 1 of the General Statutes of North Carolina, Statutes, with the proceeds being paid to the State Treasurer;Treasurer.

(6)        Transfer of the property to any an innocent party having an interest therein in it equal to or greater than the value of the property; orproperty.

(7)        Any other disposition of the property which that is in the interest of substantial justice and adequately protects innocent parties, with any proceeds being paid to the State Treasurer.

(k)        In addition to the provisions of an in rem action under subsections (c) through (g) relating to in rem actions, of this section, the State may bring an in personam action for the forfeiture of any property subject to forfeiture under subsection (a) of this section.

(l)         Upon the entry of a final civil judgment of forfeiture in favor of the State:State, the following provisions apply:

(1)        The title of the State to the forfeited property shall:relates back as follows:

a.         In the case of real property or a beneficial interest, relate the title relates back to the date of the filing of the RICO lien notice in the official record of the county where the real property or beneficial interest is located and, if located. If no RICO lien notice is filed, then the title relates back to the date of the filing of any notice of lis pendens in the official records of the county where the real property or beneficial interest is located and, if located. If no RICO lien notice or notice of lis pendens is so filed, then the title relates back to the date of the recording of the final judgment of forfeiture in the official records of the county where the real property or beneficial interest is located; andlocated.

b.         In the case of personal property, relate the title relates back to the date the personal property was seized pursuant to the provisions of this Chapter.

(2)        If property subject to forfeiture is conveyed, alienated, disposed of, or otherwise rendered unavailable for forfeiture after the filing of a RICO lien notice or after the filing of a RICO civil proceeding proceeding, whichever is earlier, the Attorney General may, on behalf of the State, institute an action in an appropriate court against the person named in the RICO lien notice or the defendant in the civil proceeding and the court shall enter final judgment against the person named in the RICO lien notice or the defendant in the civil proceeding in an amount equal to the fair market value of the property, together with investigative costs and attorney's attorneys' fees incurred by the Attorney General in the action.

SECTION 35.(d)  G.S. 75D‑8 reads as rewritten:

§ 75D‑8.  Available RICO civil remedies.

(a)        As part of a final judgment of forfeiture, any judge of the superior court may, after giving reasonable notice to potential innocent claimants, enjoin violations of G.S. 75D‑4, by issuing appropriate one or more of the following orders and judgments:

(1)        Ordering any a defendant to divest himself oneself of any an interest in any enterprise, real property, or personal property including property held by a tenancy by the entirety. Where If property is held by a tenancy by the entirety and one of the spouses is an innocent person as defined in G.S. 75D‑5(i), upon entry of a final judgment of forfeiture of entirety property, the judgment operates, operates to convert the tenancy by the entirety to a tenancy in common, and only the one‑half undivided interest of the offending spouse shall be forfeited according to the provisions of this Chapter;this Chapter.

(2)        Imposing reasonable restrictions upon the future activities or investments of any a defendant in the same or similar type of endeavor as the enterprise in which he the defendant was engaged in violation of G.S. 75D‑4;G.S. 75D‑4.

(3)        Ordering the dissolution or reorganization of any enterprise;an enterprise.

(4)        Ordering the suspension or revocation of any a license, permit, or prior approval granted to any an enterprise by any agency of the State;a State agency.

(5)        Ordering the forfeiture of the charter of a corporation organized under the laws of this State or the revocation of a certificate authorizing a foreign corporation to conduct business within in this State upon a finding that the board of directors or a managerial agent acting on behalf of the corporation, in conducting affairs of the corporation, has authorized or engaged in conduct in violation of G.S. 75D‑4, G.S. 75D‑4 and that, for the prevention of future unlawful activity, the public interest requires that the charter of the corporation be dissolved or the certificate be revoked;revoked.

(6)        Appointment of a receiver pursuant to the provisions of Article 38 of Chapter 1 of the General Statutes of North Carolina, to collect, conserve conserve, and dispose of all the proceeds, money, profits profits, and property, both real and personal, subject to the provisions of this Chapter in accordance with the provisions hereof this Chapter, as directed by the final judgment of the superior court having jurisdiction over the parties or subject matter of the action; oraction.

(7)        Any other equitable remedy appropriate to effect complete forfeiture of property subject to forfeiture, or to prevent future violations of this Chapter.

(b)        The State through the Attorney General may institute a proceeding under G.S. 75D‑5. In such the proceeding, relief shall be granted in conformity with the principles that govern the granting of injunctive relief from threatened loss or damage in other civil cases, provided that no showing of special or irreparable damage to the person shall have to be made and provided further that the State shall not be cases. However, the State is not required to show special or irreparable damage, nor is the State required to execute any bond before or after obtaining temporary restraining orders or preliminary injunctions.

(c)        Any An innocent person who that is injured or damaged in his business or property by reason of any violation of G.S. 75D‑4 involving a pattern of racketeering activity shall have has a cause of action for three times the actual damages sustained and reasonable attorneys attorneys' fees. For purposes of this subsection, pattern of racketeering activity shall require requires that at least one act of racketeering activity be an act of racketeering activity other than (i) an act indictable under 18 U.S.C. § 1341 or U.S.C. § 1343, 18 U.S.C. § 1343 or (ii) an act which that is an offense involving fraud in the sale of securities. Any A person filing a private action under this subsection must shall concurrently notify the Attorney General in writing of the commencement of the action. Thereafter, the Attorney General may file a motion for a protective order in the court where the private action is pending and shall be granted a stay of the private action for a reasonable time if the court finds either:either of the following:

(1)        The bringing of a private action is likely to materially interfere with or impair a public forfeiture action; oraction.

(2)        The public interest is so great as to require the Attorney General to investigate and bring a forfeiture action.

(d)       Any An injured innocent person shall have has a right or claim to forfeited property property, or to the proceeds derived therefrom from it, that is superior to any right or claim the State has in the same property or proceeds. To enforce such a claim the claim, the injured innocent person must shall intervene in the forfeiture proceeding prior to its final disposition.

(e)        A final conviction in any a criminal proceeding for a violation of those laws set forth in G.S. 75D‑3(c), shall estop estops the defendant in any subsequent civil action or proceeding under this Chapter as to all matters proved in the criminal proceeding.

(f)        A defendant in an action commenced by the State pursuant to this Chapter whose convictions of two or more criminal offenses of those criminal statutes as set forth in G.S. 75D‑3(c) have become final, which offenses have occurred within a four‑year period of each other as set forth in G.S. 75D‑3(b) shall be who has two or more final convictions for violating any law set forth in G.S. 75D‑3(8) and whose violations occurred within a four‑year period as set forth in G.S. 75D‑3(7) is deemed to have, have per se violated the provisions of G.S. 75D‑4(a)(1) or (2) as of the date of the second conviction.

(g)        Any party is entitled to a jury trial in any action brought under this Chapter.

SECTION 35.(e)  This section is effective when it becomes law and applies to actions or proceedings commenced on or after that date.

SECTION 35.1.  Article 5 of Chapter 77 of the General Statutes is repealed.

SECTION 36.(a)  The definitions in G.S. 85B‑1 are reordered so that they appear in alphabetical order.

SECTION 36.(b)  G.S. 85B‑1, as amended by subsection (a) of this section, reads as rewritten:

§ 85B‑1.  Definitions.

For the purposes of this Chapter Chapter, the following definitions shall apply:

(1)        Absolute Auction means the Absolute auction. – The sale of real or personal property at auction in which the item offered for auction is sold to the highest bidder without reserve, without the requirement of any a minimum bid, and without competing bids of any type by the owner, or agent of the owner, of the property.

(2)        Auction means the Auction. – The sale of goods or real estate by means of exchanges between an auctioneer and members of an audience, the exchanges consisting of a series of invitations for offers made by the auctioneer, offers by members of the audience, and the acceptance by the auctioneer of the highest or most favorable offer.

(3)        Auction Firm means a Auction firm. – A sole proprietorship of which the owner is not a licensed auctioneer, or any a partnership, association, or corporation, not otherwise exempt from this Chapter, that does any of the following:

a.         sells Sells, either directly or through agents, real or personal property at auction, or that auction.

b.         arranges, Arranges, sponsors, manages, conducts conducts, or advertises auctions, or that auctions.

c.         in In the regular course of business business, uses or allows the use of its facilities for auctions.

This definition This term applies whether or not an owner or officer of the business acts as an auctioneer.

(4)        Auctioneer means any Auctioneer. – A person who conducts or offers to conduct auctions and auctions. This term includes apprentice auctioneers except as when stricter standards are specified by this Chapter for apprentice auctioneers.

(5)        Auctioneering, conduct of auction, or conduct of business means, in Auctioneering, conduct of auction, or conduct of business. – In addition to the actual calling of bids, any of the following:

a.         Contracting for auction.

b.         Accepting consignments of items for sale at auction.

c.         Advertising an auction.

d.         Offering items for sale at auction.

e.         Accepting payment or disbursing monies for items sold at auction.

f.          Otherwise soliciting, arranging, sponsoring, or managing an auction or holding oneself out as an auctioneer or auction firm.

(6)        Consignment means, unless Consignment. – Unless otherwise modified by written agreement, the act of delivering or transferring goods or real estate in fact or constructively to an auctioneer or the auctioneer's agent in trust for the purpose of resale at auction whereby by which title does not pass to the buyer until there is an action indicating a sale. For purposes of this section, consignment may also mean This term includes a bailment for sale.

(7)        Designated person means any Designated person. – A person approved by the Board to have the authority to transact business for a licensed auction firm.

(8)        Estate Sale means the Estate sale. – The liquidation by sale at auction of real or personal property of a specified person.

(9)        Fund means Fund. – Auctioneer Recovery Fund.

(10)      Owner means the Owner. – The bona fide owner of the property being offered for sale;sale. The following provisions apply:

a.         in In the case of partnerships, owner this term means a general partner in a partnership that owns the property being offered for sale, provided that sale so long as, in the case of a limited partnership it partnership, the partnership has filed a certificate of limited partnership as required by Chapter 59 of the General Statutes; Statutes.

b.         in In the case of corporations, owner this term means an officer or director or employee or someone acting on behalf of the employee of officer, director, employee, or agent of a corporation that owns the property being offered for sale provided that so long as the corporation is registered to do business in the this State.

SECTION 36.1.(a)  G.S. 115C‑390.2 reads as rewritten:

§ 115C‑390.2.  Discipline policies.

(a)        Governing bodies of public school units, in consultation with teachers, school‑based administrators, parents, and local law enforcement agencies, shall adopt policies to govern the conduct of students and establish procedures to be followed by school officials in disciplining students. These policies must shall be consistent with the provisions of this Article and the constitutions, statutes, and regulations regulations, and rules of the United States and the State of North Carolina. In adopting these policies, governing bodies of public school units shall consider any existing federal guidance for the discipline of students with disabilities as well as other guidance on school discipline practices issued by the United States Department of Education.

(b)        Governing body policies shall include or provide for the development of a Code of Student Conduct that notifies students of the standards of behavior expected of them, conduct that may subject them to discipline, and the range of disciplinary measures that may be used by school officials.

(b1)      No later than September 1 of each year, each governing body of a public school unit shall provide the Department of Public Instruction with a copy of its most up‑to‑date student discipline policies and Code of Student Conduct.

(c)        Governing body policies may authorize suspension for conduct not occurring on educational property, but only if the student's conduct otherwise violates the Code of Student Conduct and the conduct has or is reasonably expected to have a direct and immediate impact on the orderly and efficient operation of the schools or the safety of individuals in the school environment.

(d)       Governing body policies shall not allow students to be long‑term suspended or expelled from school solely for truancy or tardiness offenses and shall not allow short‑term suspension of more than two days for such these offenses.

(e)        Governing body policies shall not impose mandatory long‑term suspensions or expulsions for specific violations unless otherwise provided in State or federal law.

(f)        Governing body policies shall minimize the use of long‑term suspension and expulsion by restricting the availability of long‑term suspension or expulsion to those violations deemed to be serious violations of the governing body's Code of Student Conduct that either threaten the safety of students, staff, or school visitors or threaten to substantially disrupt the educational environment. Examples of conduct that would not be are not deemed to be a serious violation include the use of inappropriate or disrespectful language, noncompliance with a staff directive, dress code violations, and minor physical altercations that do not involve weapons or injury. The principal may, however, in his or her discretion, determine that aggravating circumstances justify treating a minor violation as a serious violation.

(g)        Governing body policies shall not prohibit the superintendent and principals from considering the student's intent, disciplinary and academic history, the potential benefits to the student of alternatives to suspension, and other mitigating or aggravating factors when deciding whether to recommend or impose long‑term suspension.

(h)        Governing body policies shall include the procedures to be followed by school officials in suspending, expelling, or administering corporal punishment to any student, which student. These procedures shall be consistent with this Article.

(i)         Each governing body of a public school unit shall publish all policies, administrative procedures, or school rules mandated by this section and make them available to each student and his or her parent at the beginning of each school year and upon request. This information shall include the full range of responses to violations of disciplinary rules, including responses that do not remove a student from the classroom or school building. Governing bodies may require students and parents or guardians to sign an acknowledgement that they have received a copy of such these policies, procedures, or rules.

(j)         Governing bodies of public school units are encouraged to include in their safe schools plans, adopted pursuant to G.S. 115C‑105.47, research‑based behavior management programs that take positive approaches to improving student behaviors.

(k)        School officials are encouraged to use a full range of responses to violations of disciplinary rules, such as conferences, counseling, peer mediation, behavior contracts, instruction in conflict resolution and anger management, detention, academic interventions, community service, and other similar tools that do not remove a student from the classroom or school building.

(l)         Governing body policies shall state that absences under G.S. 130A‑440 shall not be are not suspensions. A student subject to an absence under G.S. 130A‑440 shall be provided the following:

(1)        The opportunity to take textbooks and school‑furnished digital devices home for the duration of the absence.

(2)        Upon request, the right to receive all missed assignments and, to the extent practicable, the materials distributed to students in connection with the assignment.

(3)        The opportunity to take any quarterly, semester, or grading period examinations missed during the absence period.

(m)       Nothing in this section or any section of this Chapter shall be construed as regulating regulates the discretion of a governing body of a public school unit to devise, impose, and enforce personal appearance codes.

SECTION 36.1.(b)  G.S. 115C‑390.5 reads as rewritten:

§ 115C‑390.5.  Short‑term suspension.

(a)        The principal shall have authority to may impose short‑term suspension on a student who willfully engages in conduct that violates a provision of the Code of Student Conduct authorizing short‑term suspension.

(b)        If a student's short‑term suspensions accumulate to more than 10 days in a semester, to the extent the principal has not already done so, he or she shall invoke the mechanisms provided for in the applicable safe schools plan adopted pursuant to G.S. 115C‑105.47(b)(5) and (b)(6).

(c)        A student subject to short‑term suspension shall be provided the following:

(1)        The opportunity to take textbooks home for the duration of the suspension.

(2)        Upon request, the right to receive all missed assignments and, to the extent practicable, the materials distributed to students in connection with the assignment.

(3)        The opportunity to take any quarterly, semester, or grading period examinations missed during the suspension period.

SECTION 37.  G.S. 128‑26A is redesignated as G.S. 128‑26.1.

SECTION 38.(a)  G.S. 131A‑3 reads as rewritten:

§ 131A‑3.  Definitions.

As used or referred to in this Article, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:

(1)        Bonds or notes means the revenue bonds or bond anticipation notes, respectively, authorized to be issued by the Commission under this Article;

(2)        Commission means the North Carolina Medical Care Commission, created by Part 10 of Article 3 of Chapter 143B of the General Statutes, or, should said Commission be abolished or otherwise divested of its functions under this Article, the public body succeeding it in its principal functions, or upon which are conferred by law the rights, powers and duties given by this Article to the Commission;

(3)        Cost as applied to any health care facilities means the cost of construction or acquisition; the cost of acquisition of property, including rights in land and other property, both real and personal and improved and unimproved; the cost of demolishing, removing or relocating any buildings or structures on land so acquired, including the cost of acquiring any land to which such buildings or structures may be moved or relocated; the cost of all machinery, fixed and movable equipment and furnishings; financing charges, interest prior to and during construction and, if deemed advisable by the Commission, for a period not exceeding two years after the estimated date of completion of construction, the cost of engineering and architectural surveys, plans and specifications; the cost of consulting and legal services and other expenses necessary or incident to determining the feasibility or practicability of constructing or acquiring such health care facilities; the cost of administrative and other expenses necessary or incident to the construction or acquisition of such health care facilities, and the financing of the construction or acquisition thereof, including reasonable provision for working capital and a reserve for debt service; the cost of reimbursing any public or nonprofit agency for any payments made for any cost described above or the refinancing of any cost described above, provided that no payment shall be reimbursed or any cost be refinanced if such payment was made or such cost was incurred earlier than two years prior to the effective date of this Article; provided further, that it is the intent that any costs described above shall be payable solely from the revenues of the health care facilities;

(4)        Health care facilities means any one or more buildings, structures, additions, extensions, improvements or other facilities, whether or not located on the same site or sites, machinery, equipment, furnishings or other real or personal property suitable for health care or medical care; and includes, without limitation: general hospitals, chronic diseases, maternity, mental, tuberculosis and other specialized hospitals; facilities for intensive care and self‑care; nursing homes, including skilled nursing facilities and intermediate care facilities; facilities for continuing care of the elderly and infirm; clinics and outpatient facilities; clinical, pathological and other laboratories; health care research facilities; laundries; training facilities for nurses, interns, physicians and other staff members; food preparation and food service facilities; administration buildings, central service and other administrative facilities; communication, computer; and other electronic facilities, fire‑fighting facilities, pharmaceutical facilities and recreational facilities; storage space, X‑ray, laser, radiotherapy and other apparatus and equipment; dispensaries; utilities; vehicular parking lots and garages; office facilities for health care facilities staff members and physicians; and such other health care facilities customarily under the jurisdiction of or provided by hospitals, or any combination of the foregoing, with all necessary, convenient or related interests in land, machinery, apparatus, appliances, equipment, furnishings, appurtenances, site preparation, landscaping and physical amenities;

(5)        Non‑profit agency means any nonprofit corporation existing or hereafter created and empowered to acquire, by lease or otherwise, operate or maintain health care facilities;

(6)        Public agency means any county, city, town, hospital district or other political subdivision of the State existing or hereafter created pursuant to the laws of the State authorized to acquire, by lease or otherwise, operate or maintain health care facilities;

(7)        State means the State of North Carolina;

(8)        Federally guaranteed security means any security, investment or evidence of indebtedness issued pursuant to any provision of federal law for the purpose of financing or refinancing the cost of any health care facilities which is insured or guaranteed, directly or indirectly, in whole or in part as to the repayment of principal or interest by the United States of America or any instrumentality thereof;

(9)        Federally insured mortgage note means any loan secured by a mortgage or deed of trust on any health care facilities owned or leased by any public or nonprofit agency which is insured or guaranteed, directly or indirectly, in whole or in part as to the repayment of principal and interest by the United States of America or any instrumentality thereof, or any commitment by the United States of America or any instrumentality thereof to so insure or guarantee such a loan secured by a mortgage or a deed of trust.

(10)      Continuing care means the furnishing, pursuant to a continuing care agreement, of shelter, food, and nursing care to an individual not related by consanguinity or affinity to the provider furnishing such care. Other personal services provided shall be designated in the continuing care agreement. Continuing care shall include only life care, care for life, or care for a term of years;

(11)      Life care or care for life means a life lease, life membership, life estate, or similar agreement between an individual and a provider by which the individual pays a fee for the right to occupy a space in the continuing care facility and to receive continuing care for life; and

(12)      Care for a term of years means an agreement between an individual and a provider whereby the individual pays a fee for the right to occupy space in a continuing care facility, and to receive continuing care, for at least one year, but for less than the life of the member.

The following definitions apply in this Article:

(1)        Bonds or notes. – The revenue bonds or bond anticipation notes, respectively, authorized to be issued by the Commission under this Article.

(2)        Care for a term of years. – An agreement between an individual and a provider by which the individual pays a fee for the right to occupy space in a continuing care facility and to receive continuing care for at least one year but for less than the life of the member.

(3)        Commission. – The North Carolina Medical Care Commission, created by Part 10 of Article 3 of Chapter 143B of the General Statutes, or a successor body.

(4)        Continuing care. – The furnishing, pursuant to a continuing care agreement, of shelter, food, and nursing care to an individual not related by consanguinity or affinity to the provider furnishing the care. Other personal services provided shall be designated in the continuing care agreement. This term includes only life care, care for life, or care for a term of years.

(5)        Cost. – As applied to any health care facilities, any of the following:

a.         The cost of construction or acquisition.

b.         The cost of acquisition of property, including property rights, both real and personal and improved and unimproved.

c.         The cost of demolishing, removing, or relocating any buildings or structures on land acquired, including the cost of acquiring any land to which the buildings or structures may be moved or relocated.

d.         The cost of all machinery, fixed and movable equipment, and furnishings.

e.         Financing charges, interest prior to and during construction, and, if deemed advisable by the Commission, for a period not exceeding two years after the estimated date of completion of construction, the cost of engineering and architectural surveys, plans, and specifications.

f.          The cost of consulting and legal services and other expenses necessary or incident to determining the feasibility or practicability of constructing or acquiring the health care facilities.

g.         The cost of administrative and other expenses necessary or incident to the construction or acquisition of the health care facilities and the financing of the construction or acquisition, including reasonable provision for working capital and a reserve for debt service.

h.         The cost of reimbursing a public or nonprofit agency for any payments made for any cost described in this subdivision or the refinancing of any cost described in this subdivision. This term, however, does not include any reimbursement or refinancing costs that are not payable solely from the revenues of the health care facilities.

(6)        Federally guaranteed security. – A security, investment, or evidence of indebtedness issued pursuant to federal law for the purpose of financing or refinancing the cost of a health care facility and that is insured or guaranteed, directly or indirectly, in whole or in part as to the repayment of principal or interest by the United States of America or any instrumentality thereof.

(7)        Federally insured mortgage note. – A loan secured by a mortgage or deed of trust on a health care facility owned or leased by a public or nonprofit agency and that is insured or guaranteed, directly or indirectly, in whole or in part as to the repayment of principal and interest by the United States of America or any instrumentality thereof, or by a commitment of the United States of America or any instrumentality thereof.

(8)        Health care facilities. – Any one or more buildings, structures, additions, extensions, improvements, or other facilities, whether or not located on the same site, machinery, equipment, furnishings, or other real or personal property suitable for health care or medical care. The term includes, without limitation, any of the following facilities related to health care:

a.         General hospitals or specialized hospitals, such as hospitals for chronic diseases, maternity, or mental health.

b.         Facilities for intensive care and self‑care.

c.         Nursing homes, including skilled nursing facilities and intermediate care facilities.

d.         Facilities for the continuing care of the elderly and infirm.

e.         Clinics and outpatient facilities.

f.          Clinical, pathological, and other laboratories.

g.         Health care research facilities.

h.         Laundries.

i.          Training facilities for nurses, interns, physicians, and other staff members.

j.          Food preparation and food service facilities.

k.         Administration buildings, central service facilities, and other administrative facilities.

l.          Communication, computer, and other electronic facilities, firefighting facilities, pharmaceutical facilities, and recreational facilities.

m.        Storage space.

n.         X‑ray, laser, radiotherapy, and other apparatus and equipment.

o.         Dispensaries.

p.         Utilities.

q.         Vehicular parking lots and garages.

r.          Office facilities for staff members and physicians of a health care facility.

s.          Other facilities customarily under the jurisdiction of or provided by hospitals, or any combination of the facilities listed in this subdivision, with all related interests in land, machinery, apparatus, appliances, equipment, furnishings, appurtenances, site preparation, landscaping, and physical amenities.

(9)        Life care or care for life. – A life lease, life membership, life estate, or similar agreement between an individual and a provider by which the individual pays a fee for the right to occupy a space in the continuing care facility and to receive continuing care for life.

(10)      Nonprofit agency. – A nonprofit corporation authorized to acquire, by lease or otherwise, operate, or maintain health care facilities.

(11)      Public agency. – A county, city, town, hospital district, or other political subdivision of the State authorized to acquire, by lease or otherwise, operate, or maintain health care facilities.

(12)      State. – State of North Carolina.

SECTION 38.(b)  G.S. 143B‑181.16 reads as rewritten:

§ 143B‑181.16.  Long‑Term Care Ombudsman Program/Office; definition.Definitions.

Unless the content clearly requires otherwise, as used in this Article:

(1)        Long‑term care facility means any skilled nursing facility and intermediate care facility as defined in G.S. 131A‑3(4) or any adult care home as defined in G.S. 131D‑20(2).

(1a)      Reserved for future codification purposes.

(1b)      Programmatic supervision means the monitoring of the performance of the duties of the Regional Ombudsman and ensuring that the Area Agency on Aging has personnel policies and procedures consistent with the laws and policies governing the Ombudsman Program as performed by the State Ombudsman.

(1c)      Regional Ombudsman means a person employed by an Area Agency on Aging who is certified and designated by the State Ombudsman to carry out the functions of the Regional Ombudsman Office established by this Article, 42 U.S.C. § 3001, et seq. and regulations promulgated thereunder.

(2)        Resident means any person who is receiving treatment or care in any long‑term care facility.

(3)        State Ombudsman means the State Ombudsman as defined by the Older Americans Act of 1965, as amended, 42 U.S.C. § 3001 et seq., and regulations promulgated thereunder, who carries out the duties and functions established by this Article and 42 U.S.C. § 3001, et seq. and regulations promulgated thereunder.

(4)        Willful interference means actions or inactions taken by an individual in an attempt to intentionally prevent, interfere with, or attempt to impede the Ombudsman or a representative of the Office from performing any of the functions, responsibilities, or duties set forth in 42 U.S.C. § 3001 et seq., and regulations promulgated thereunder.

The following definitions apply in this Article:

(1)        Long‑term care facility. – A skilled nursing facility, intermediate care facility, or adult care home as defined in G.S. 131D‑20.

(2)        Programmatic supervision. – The monitoring of the performance of the duties of the Regional Ombudsman and ensuring that the Area Agency on Aging has personnel policies and procedures consistent with the laws and policies governing the Ombudsman Program as performed by the State Ombudsman.

(3)        Regional Ombudsman. – A person employed by an Area Agency on Aging who is certified and designated by the State Ombudsman to carry out the functions of the Regional Ombudsman Office established by this Article, the Older Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations promulgated under that act.

(4)        Resident. – A person who is receiving treatment or care in a long‑term care facility.

(5)        State Ombudsman. – The State Ombudsman, as defined by the Older Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations promulgated under it, who carries out the duties and functions established by those laws and this Article.

(6)        Willful or unnecessary obstruction. – Actions or inactions taken by an individual in an attempt to intentionally prevent, interfere with, or attempt to impede the State Ombudsman or Regional Ombudsman from performing any of the functions, responsibilities, or duties set forth in the Older Americans Act of 1965, 42 U.S.C. § 3001, et seq., and the regulations promulgated under it.

SECTION 39.1.(a)  G.S. 131E‑176(5a) is recodified as G.S. 131E‑176(5c).

SECTION 39.1.(b)  G.S. 131E‑176(10) is recodified as G.S. 131E‑176(7e).