AN ACT to make technical corrections to the general statutes and session laws, including repealing obsolete language describing past transfers or reorganizations of state agencies, as recommended by the general statutes commission.

The General Assembly of North Carolina enacts:

PART I. REPEAL CHAPTER 143A, THE OBSOLETE 1971 REORGANIZATION OF THE EXECUTIVE BRANCH

SECTION 1.  Chapter 143A of the General Statutes, as amended by Sections 2 through 4 of this act, is repealed.

SECTION 2.(a)  Chapter 147 of the General Statutes is amended by adding a new Article to read:

Article 3E.

The Lieutenant Governor.

SECTION 2.(b)  G.S. 143A‑13 is recodified as G.S. 147‑33.131 in Article 3E of Chapter 147 of the General Statutes, established in subsection (a) of this section, and reads as rewritten:

§ 147‑33.131.  Office of the Lieutenant Governor created.

There is hereby created an The office of the Lieutenant Governor.Governor is created. The Lieutenant Governor shall serve as President of the Senate and perform any additional duties assigned by the Governor or the General Assembly. The Lieutenant Governor shall maintain an office in the Hawkins‑Hartness House located at 310 North Blount Street in the City of Raleigh. The office shall be open during normal working hours throughout the year.

SECTION 2.(c)  G.S. 147‑33 is recodified as G.S. 147‑33.132 in Article 3E of Chapter 147 of the General Statutes, established in subsection (a) of this section.

SECTION 3.(a)  Chapter 143 of the General Statutes is amended by adding a new Article to read:

Article 85.

Council on the Holocaust.

SECTION 3.(b)  G.S. 143A‑48.1 is recodified as G.S. 143‑815 in Article 85 of Chapter 143 of the General Statutes, established in subsection (a) of this section.

SECTION 4.(a)  Chapter 106 of the General Statutes is amended by adding a new Article to read:

Article 82A.

Forestry Council.

SECTION 4.(b)  G.S. 143A‑66.1, 143A‑66.2, and 143A‑66.3 are recodified as G.S. 106‑1005, 106‑1006, and 106‑1007, respectively, in Article 82A of Chapter 106 of the General Statutes, established in subsection (a) of this section.

SECTION 5.  Article 1 of Chapter 143C of the General Statutes is amended by adding a new section to read:

§ 143C‑1‑6.  Types of State agency transfers.

(a)        Type I. – A Type I transfer is a transfer of an existing State agency to a principal State department. Under a Type I transfer, all of the following apply:

(1)        The State agency's statutory authority, powers, duties, and functions, including its management functions, are transferred to a principal State department.

(2)        The State agency's records, personnel, property, unexpended balances of appropriations, allocations, and other funds are transferred to the principal State department.

(3)        The State agency's powers, duties, and functions, including rulemaking, regulation, licensing, setting rates and standards, and rendering findings, orders, and adjudications are transferred to the principal State department.

(b)        Type II. – A Type II transfer is an intact transfer of a State agency to a principal State department. Under a Type II transfer, the transferred State agency shall be administered under the direction and supervision of the principal State department but shall exercise its statutory powers and functions, other than its management functions, independently of the head of the principal State department. The State agency's management functions shall be performed under the direction and supervision of the head of the principal State department.

(c)        Management Functions. – As used in this section, management functions means planning, organizing, staffing, directing, coordinating, reporting, and budgeting.

SECTION 6.  G.S. 147‑3(c) reads as rewritten:

(c)      The general civil executive officers of this State are as follows:

(1)        A Governor;Governor.

(2)        A Lieutenant Governor;Governor.

(3)        Private secretary for the Governor;

(4)        A Secretary of State;State, who serves as the head of the Department of the Secretary of State.

(5)        An Auditor;A State Auditor, who serves as the head of the Department of State Auditor.

(6)        A Treasurer;State Treasurer, who serves as the head of the Department of State Treasurer.

(7)        An Attorney General;General, who serves as the head of the Department of Justice.

(8)        A Superintendent of Public Instruction;Instruction, who serves as the head of the Department of Public Instruction.

(9)        The members of the Governor's Council;Cabinet.

(10)      A Commissioner of Agriculture;Agriculture, who serves as the head of the Department of Agriculture and Consumer Affairs.

(11)      A Commissioner of Labor;Labor, who serves as the head of the Department of Labor.

(12)      A Commissioner of Insurance.Insurance, who serves as the head of the Department of Insurance.

PART II. REPEAL PROVISIONS IN CHAPTER 143B CONCERNING THE OBSOLETE 1971 AND 1973 REORGANIZATIONS OF THE EXECUTIVE BRANCH

SECTION 7.  The title of Chapter 143B of the General Statutes reads as rewritten:

Executive Organization Act of 1973.Branch.

SECTION 8.  The following provisions in Chapter 143B of the General Statutes are repealed:

(1)        G.S. 143B‑1.

(2)        G.S. 143B‑2.

(3)        G.S. 143B‑5.

(4)        G.S. 143B‑7.

(5)        G.S. 143B‑9(b).

(6)        G.S. 143B‑13(e).

(7)        G.S. 143B‑19.

(8)        G.S. 143B‑21.

(9)        G.S. 143B‑22.

(10)      G.S. 143B‑23.

(11)      G.S. 143B‑25.

(12)      G.S. 143B‑26.

(13)      G.S. 143B‑28.

(14)      G.S. 143B‑51(b).

(15)      G.S. 143B‑53.

(16)      G.S. 143B‑138.1.

(17)      G.S. 143B‑168.3.

(18)      G.S. 143B‑168.10C.

(19)      G.S. 143B‑181.1(b).

(20)      G.S. 143B‑216.33(b).

(21)      G.S. 143B‑219.

(22)      G.S. 143B‑279.3.

(23)      Part 3 of Article 7 of Chapter 143B of the General Statutes.

(24)      G.S. 143B‑348(b).

(25)      Part 8 of Article 8 of Chapter 143B of the General Statutes.

(26)      G.S. 143B‑368.

(27)      G.S. 143B‑431(a)(2) and (3).

(28)      G.S. 143B‑432.

(29)      G.S. 143B‑451.

(30)      G.S. 143B‑801.

(31)      G.S. 143B‑1203(a).

(32)      G.S. 143B‑1490(b).

SECTION 9.  G.S. 143B‑3 reads as rewritten:

§ 143B‑3.  Definitions.

As used in the Executive Organization Act of 1973, except where the context clearly requires otherwise, the words and expressions defined in this section shall be held to have the meanings here given to them.The following definitions apply in this Chapter:

(1)        Agency: whenever the term agency is used it shall mean and include, as the context may require, an existing Agency. – A department, institution, commission, committee, board, division, bureau, officer officer, or official.

(2)        Board: a Board. – A collective body which that assists the head of a principal department or his or her designee in the development of major programs programs, including the tender of advice on departmental priorities.

(3)        Commission: a Commission. – A collective body which that adopts rules and regulations in a quasi‑legislative manner and which acts in a quasi‑judicial capacity in rendering findings or decisions involving differing interests.

(4)        Committee: a Committee. – A collective body which that either advises the head of a principal department or his or her designee or advises a commission in detailed technical areas.

(5)        Council: a Council. – A collective body which that advises the head of a principal department or his or her designee as representative of citizen advice in specific areas of interests.

(6)        Division: the Division. – The principal subunit of a principal State department.

(7)        Head of department: department. – The head of one of the principal State departments.

(8)        Higher education: education. – State senior institutions of higher learning.

(9)        Principal State department: one department. – One of the departments created by the General Assembly in compliance with Article III, Sec. 11, of the Constitution of North Carolina.

SECTION 10.  G.S. 143B‑4 reads as rewritten:

§ 143B‑4.  Policy‑making authority and administrative powers of Governor; delegation.Governor's role.

The Governor, in accordance with Article III of the Constitution of North Carolina, shall be is the Chief Executive Officer of the State. The Governor shall be is responsible for formulating and administering the policies of the executive branch of the State government. Where a conflict arises in connection with the administration of the policies of the executive branch of the State government with respect to the reorganization of State government, the conflict shall be resolved by the Governor, and the decision of the Governor shall be final.

SECTION 11.  G.S. 143B‑6 reads as rewritten:

§ 143B‑6.  Principal State offices and departments.

In addition to the principal departments enumerated in the Executive Organization Act of 1971, all executive and administrative powers, duties, and functions not including those of the General Assembly and its agencies, the General Court of Justice and the administrative agencies created pursuant to Article IV of the Constitution of North Carolina, and higher education previously vested by law in the several State agencies, are vested in the following principal departments:

(1)        Department of Natural and Cultural Resources.

(2)        Department of Health and Human Services.

(3)        Department of Revenue.

(4)        Department of Public Safety.

(5)        Repealed by Session Laws 2012‑83, s. 48, effective June 26, 2012.

(6)        Department of Environmental Quality.

(7)        Department of Transportation.

(8)        Department of Administration.

(9)        Department of Commerce.

(10)      Community Colleges System Office.

(11)      Repealed by Session Laws 2012‑83, s. 48, effective June 26, 2012.

(12)      Department of Information Technology.

(13)      Department of Military and Veterans Affairs.

(14)      Department of Adult Correction.

(15)      State Bureau of Investigation.

(16)      State Highway Patrol.

(a)        Offices. – The principal State offices are as follows:

(1)        The Office of the Governor.

(2)        The Office of the Lieutenant Governor.

(b)        Departments. – The principal State departments are as follows:

(1)        Community Colleges System Office.

(2)        Department of Administration.

(3)        Department of Adult Correction.

(4)        Department of Agriculture and Consumer Services.

(5)        Department of Commerce.

(6)        Department of Environmental Quality.

(7)        Department of Health and Human Services.

(8)        Department of Information Technology.

(9)        Department of Insurance.

(10)      Department of Justice.

(11)      Department of Labor.

(12)      Department of Military and Veterans Affairs.

(13)      Department of Natural and Cultural Resources.

(14)      Department of Public Instruction.

(15)      Department of Public Safety.

(16)      Department of Revenue.

(17)      Department of State Auditor.

(18)      Department of State Treasurer.

(19)      Department of the Secretary of State.

(20)      Department of Transportation.

(21)      State Bureau of Investigation.

(22)      State Highway Patrol.

SECTION 12.  G.S. 143B‑9, as amended by Section 8 of this act, reads as rewritten:

§ 143B‑9.  Appointment of officers and employees.Governor's appointment of department head.

(a)        Department Head. – Except as otherwise provided in this Chapter, the head of each principal State department, except those departments headed by popularly elected officers, shall be appointed by the Governor and serve at the Governor's pleasure. The The Governor shall set the salary of the appointed head of each of the principal State departments shall be set by the Governor, and the salary of the chief deputy or chief assistant to the department head. The salary of elected officials shall be as provided by law.

….

SECTION 13.  G.S. 143B‑13(a) reads as rewritten:

(a)      Each member of a commission created by or under the authority of the Executive Organization Act of 1973 this Chapter shall be a resident of the State of North Carolina, unless otherwise specifically authorized by law.

Unless more restrictive qualifications are provided in the Executive Organization Act of 1973, this Chapter, the Governor shall appoint each member on the basis of interest in public affairs, good judgment, knowledge, and ability in the field for which appointed, and with a view to providing diversity of interest and points of view in the membership.

The balance of unexpired terms of existing commission members shall be served in accordance with their most recent appointment.

A vacancy occurring during a term of office is filled in the same manner as the original appointment is made and for the balance of the unexpired term, unless otherwise provided by law or by the Constitution of North Carolina.

SECTION 14.  G.S. 143B‑16 reads as rewritten:

§ 143B‑16.  Appointment and removal of members of boards, councils councils, and committees.

Unless more restrictive qualifications are provided in this Chapter, the Governor shall appoint each member of a board, council, or committee on the basis of his the member's interest in public affairs, good judgment, knowledge knowledge, and ability in the field for which appointed, and with a view to providing diversity of interest and points of view in the membership. Unless other conditions are provided in the Executive Organization Act of 1973, this Chapter, any member of a board, council, or committee may be removed from office by the Governor for misfeasance, malfeasance, or nonfeasance.

No member of a board, council, or committee may use his the member's position to influence any election or the political activity of any person, and any such member who violates this paragraph section may be removed from such office by the Governor, if such member was appointed by the Governor, or by the appointing authority, if such member was not appointed by the Governor. member's appointing authority. Nothing herein shall prohibit such in this section prohibits a member from publishing the fact of his or her membership in his or her own campaign for public office.

SECTION 15.  G.S. 143B‑17 reads as rewritten:

§ 143B‑17.  Commission investigations and orders.

Unless otherwise provided for in the Executive Organization Act of 1973, any in this Chapter, a commission created by the Executive Organization Act of 1973 this Chapter may order an investigation into areas of concern over which it has rulemaking authority, and the head of the department required to give staff support to such the commission shall render such provide any reports and information as the commission may require. information requested by the commission. In default of the production of information by the head of the principal department or any employee or agent thereof, requested information, the commission may seek the aid of petition the Wake County Superior Court to require the production of information as hereinafter provided.the information.

In proceedings before any a commission or any a hearing officer or member of the commission so authorized by the commission, if any a person refuses to respond to a subpoena, or refuses to take the oath or affirmation as a witness or thereafter refuses to be examined or refuses to obey any lawful an order of a commission contained in its decision rendered after hearing, the chairman chair of the commission may apply to petition the Superior Court of Wake County or to the superior court of the county where the proceedings are being held for an order directing that the person to take the requisite action. Should any If a person willfully fail fails to comply with an order so issued, this order, the court shall punish him as the person for contempt.

SECTION 16.  G.S. 143B‑49 reads as rewritten:

§ 143B‑49.  Department of Natural and Cultural Resources – creation, powers powers, and duties.

There is hereby created a department to be known as the Department of Natural and Cultural Resources, with the organization, duties, functions, and powers defined in the Executive Organization Act of 1973.The Department of Natural and Cultural Resources is created. The Department has the powers and duties defined by law.

SECTION 17.  G.S. 143B‑50 reads as rewritten:

§ 143B‑50.  Duties of the Department.

It shall be the duty of the Department to do the following:The Department of Natural and Cultural Resources has the following duties:

(1)        To provide the necessary management, development of policy policy, and establishment and enforcement of standards for the furtherance of resources, services services, and programs involving the arts and the historical and cultural aspects of the lives of the citizens of North Carolina.

(2)        To provide and keep a museum or collection of the natural history of the State and to maintain the North Carolina Biological Survey.

(3)        To develop and preserve libraries, historical records, historic sites and property, and an appreciation of art and music.

SECTION 18.  G.S. 143B‑51(a) reads as rewritten:

(a)      The functions of the Department of Natural and Cultural Resources shall comprise, consist of, except as otherwise expressly provided by the Executive Organization Act of 1973 this Chapter or by the Constitution of North Carolina, all executive functions of the State in relation to the development and preservation of libraries, historical records, sites and property, and of an appreciation of art and music and further including those prescribed powers, duties, and functions enumerated in Article 17 of Chapter 143A of the General Statutes of this State.duties described in G.S. 143B‑50.

SECTION 19.  G.S. 143B‑63 reads as rewritten:

§ 143B‑63.  Historical Commission – members; selection; quorum; compensation.

The Historical Commission of the Department of Natural and Cultural Resources shall consist of 11 members appointed by the Governor.

The members of the North Carolina Historical Commission shall include the members of the existing North Carolina Historical Commission who shall serve for a period equal to the remainder of their current terms on the Commission, plus four additional appointees of the Governor, two of whose appointments shall expire March 31, 1979, and two of whose appointments shall expire March 31, 1981. At the end of the respective terms of office of the members, their successors shall be appointed for terms of six years and The term of a member is six years. Members serve until their successors are appointed and qualify. Of the members, at least five shall have professional training or experience in the fields of archives, history, historic preservation, historic architecture, archaeology, or museum administration, including at least three currently involved in the teaching of history at the college or university level or in administering archives or historical collections or programs. Any An appointment to fill a vacancy on the Commission created by resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance or nonfeasance according to the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.malfeasance, or nonfeasance, as provided in G.S. 143B‑13.

The members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

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

SECTION 20.  G.S. 143B‑68 reads as rewritten:

§ 143B‑68.  Public Librarian Certification Commission – members; selection; quorum; compensation.

The Public Librarian Certification Commission of the Department of Natural and Cultural Resources shall consist of five members as follows: (i) the chairman chair of the public libraries section of the North Carolina Library Association, (ii) two individuals named by the Governor upon the nomination of the North Carolina Library Association, (iii) the dean, department chair, program director, or equivalent of a State or regionally accredited graduate school of librarianship in North Carolina appointed by the Governor, and (iv) one member at large appointed by the Governor.

The members shall serve four‑year terms or while holding the appropriate chairmanship. Any position. An appointment to fill a vacancy created by the resignation, dismissal, death death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance, and nonfeasance according to the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.or nonfeasance, as provided in G.S. 143B‑13.

The members of the Commission shall receive per diem, diem and necessary travel expenses in accordance with the provisions of G.S. 138‑5.

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

All clerical and other services required by the Commission shall be supplied by the Secretary of the Department through the regular staff of the Department.

SECTION 21.  G.S. 143B‑72 reads as rewritten:

§ 143B‑72.  Tryon Palace Commission – members; selection; quorum; compensation.

The Tryon Palace Commission of the Department of Natural and Cultural Resources shall consist of the following members: 25 voting members appointed by the Governor, nonvoting members emeriti appointed by the Governor, and five voting ex officio members as provided in this section.

The Governor shall appoint 25 voting members. The terms of the initial members shall be staggered as follows: Nine of the members shall be appointed to serve four‑year terms, eight of the members shall be appointed to serve three‑year terms, and eight of the members shall be appointed to serve two‑year terms. At the end of the respective terms of office of the initial appointed members of the Commission, the appointments of their successors, The terms of members, with the exception of ex officio members and members emeriti, shall be for terms of four years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Commission shall be for the balance of the unexpired term. The Governor shall designate the chair of the Tryon Palace Commission. The other officers of the Tryon Palace Commission shall be elected by the members of the Tryon Palace Commission.

The Governor may also appoint any a person who has previously served on the Tryon Palace Commission with distinction to the Commission as a member emeritus. A person appointed as a member emeritus shall be is deemed a lifetime member of the Commission and shall serve as a nonvoting member.

In addition to the members who are appointed by the Governor, the Attorney General, the Secretary of Natural and Cultural Resources or the Secretary's designee, the mayor of the City of New Bern, the Dean of the College of Arts and Sciences at East Carolina University, and the chairman chair of the Board of County Commissioners of Craven County shall serve as voting ex officio members of said the Commission. The provisions of the Executive Organization Act of 1973 G.S. 143B‑13 pertaining to the residence of members of commissions shall do not apply to the Tryon Palace Commission.

A majority of the voting members of the Commission shall constitute constitutes a quorum for the transaction of business.

The members of the Commission shall serve without pay and without expense allowance.

SECTION 22.  G.S. 143B‑73(1) reads as rewritten:

(1)      The U.S.S. North Carolina Battleship Commission is authorized and empowered to adopt such rules not inconsistent with the management responsibilities of the Secretary of the Department provided by Chapter 143A of the General Statutes and laws of this State and this Chapter that may be necessary and desirable for the operation and maintenance of may adopt rules, not inconsistent with the duties of the Secretary of Natural and Cultural Resources, to operate and maintain the U.S.S. North Carolina as a permanent memorial and exhibit commemorating the heroic participation of the men and women of North Carolina in the prosecution and victory of the Second World War and for the faithful performance and fulfillment of its duties and obligations.

SECTION 23.  G.S. 143B‑74 reads as rewritten:

§ 143B‑74.  U.S.S. North Carolina Battleship Commission – members; selection; quorum; compensation.

The U.S.S. North Carolina Battleship Commission of the Department of Natural and Cultural Resources shall consist of 18 members including the Secretary of Natural and Cultural Resources and the Secretary of Commerce who shall serve as voting ex officio members. The members of the Commission appointed for terms to end in 1991 shall serve for an additional two‑year period. At the end of the respective terms of office of the members of the Commission serving in 1991, their successors Members shall be appointed for terms of four years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Commission created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term. The provisions of the Executive Organization Act of 1973 G.S. 143B‑13 pertaining to the residence of members of commissions shall do not apply to the U.S.S. North Carolina Battleship Commission.

The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance, or nonfeasance in accordance with the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.nonfeasance, as provided in G.S. 143B‑13.

The members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

A majority of the Commission shall constitute constitutes a quorum for the transaction of business. The Governor shall designate from among the members of the Commission a chairman, vice‑chairman chair, vice‑chair, and treasurer. The Secretary of Natural and Cultural Resources or his the Secretary's designee shall serve as Secretary of the Commission. The Commission shall meet at least twice annually upon the call of the chairman, chair, the Secretary of Natural and Cultural Resources, or any seven members of the Commission.

SECTION 24.  G.S. 143B‑79 reads as rewritten:

§ 143B‑79.  Executive Mansion Fine Arts Committee – creation, powers powers, and duties.

(a)        There is hereby created the Executive Mansion Fine Arts Committee. The Executive Mansion Fine Arts Committee shall have The Executive Fine Arts Committee of the Department of Natural and Cultural Resources is created. The Committee has the following functions and duties:

(1)        To advise the Secretary of Natural and Cultural Resources on the preservation and maintenance of the Executive Mansion located at 200 North Blount Street, Raleigh, North Carolina;Carolina.

(2)        To encourage gifts and objects of art, furniture furniture, and articles of historical value for furnishing the Executive Mansion, Mansion and to advise the Secretary of Natural and Cultural Resources on major changes in the furnishings of the Mansion;Mansion.

(3)        To make recommendations to the Secretary of Natural and Cultural Resources concerning major renovations necessary to preserve and maintain the structure;structure.

(4)        To aid the Secretary of Natural and Cultural Resources in keeping a complete list of all gifts and articles received together with their history and value;value. No

(5)        No gifts or articles shall be accepted for the Executive Mansion without the approval of the Committee; andCommittee.

(6)        The Committee shall To advise the Secretary of Natural and Cultural Resources upon any matter the Secretary may refer refers to it.

(7)(b)   Notwithstanding Article 3 of Chapter 143 of the General Statutes, G.S. 143‑49(4), or any other law pertaining to surplus State property, the Committee may dispose of property held in the Executive Mansion after consultation with a review committee comprised of one person from the Executive Mansion Fine Arts Committee, appointed by its chairman; chair; one person from the Department of Administration appointed by the Secretary of Administration; and two qualified professionals from the Department of Natural and Cultural Resources, Division of Archives and History, History of the Department of Natural and Cultural Resources, appointed by the Secretary of Natural and Cultural Resources. that Department. Upon request of the Executive Mansion Fine Arts Committee, the review committee shall view proposed items for disposition and shall make a recommendation to the North Carolina Historical Commission who shall make a final decision. The Historical Commission shall consider whether the disposition is in the best interest of the State of North Carolina. If any property is sold or leased, the net proceeds of each sale or lease and any interest earned thereon on the proceeds shall be deposited in the State Treasury with the State Treasurer to the credit of the Executive Mansion, Mansion Special Fund, Fund and shall be used only for the purchase, conservation, restoration, or repair of other property for use in the Executive Mansion.

SECTION 25.  G.S. 143B‑80 reads as rewritten:

§ 143B‑80.  Executive Mansion Fine Arts Committee – members; selection; quorum; compensation.

The Executive Mansion Fine Arts Committee shall consist of 16 members appointed by the Governor. The initial members of the Committee shall be the appointed members of the present Executive Mansion Fine Arts Commission who shall serve for a period equal to the remainder of their current terms on the Executive Mansion Fine Arts Commission, four of whose appointments expire June 30, 1973, four of whose appointments expire June 30, 1974, four of whose appointments expire June 30, 1975, and four of whose appointments expire June 30, 1976. At the end of the respective terms of office of the initial members, the appointments of their successors The terms of the members shall be for terms of four years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Committee created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Committee from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Governor shall designate a member of the Committee to serve as chairman chair at his the Governor's pleasure.

Members of the Committee shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

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

SECTION 26.  G.S. 143B‑83 reads as rewritten:

§ 143B‑83.  North Carolina Awards Committee – creation, powers powers, and duties.

There is hereby created the The North Carolina Awards Committee with the duty to of the Department of Natural and Cultural Resources is created. The Committee shall advise the Secretary of Natural and Cultural Resources the Department on the formulation and administration of the program governing North Carolina awards and on the selection of a committee in each award area to choose the recipients.

The Committee shall advise the Secretary of the Department upon any matter the Secretary may refer refers to it.

SECTION 27.  G.S. 143B‑87 reads as rewritten:

§ 143B‑87.  North Carolina Arts Council – creation, powers powers, and duties.

There is hereby created the North Carolina Arts Council with The North Carolina Arts Council of the Department of Natural and Cultural Resources is created. The Council has the following duties and functions:

(1)        To advise the Secretary of Natural and Cultural Resources on the study, collection, maintenance maintenance, and dissemination of factual data and pertinent information relative to the arts;arts.

(2)        To advise the Secretary concerning assistance to local organizations and the community at large in the area of the arts;arts.

(3)        To advise the Secretary on the exchange of information, promotion of programs programs, and stimulation of joint endeavor between public and nonpublic organizations;organizations.

(4)        To identify research needs in the arts area and to encourage such research;this research.

(5)        To advise the Secretary in regard to bringing the highest obtainable quality in the arts to the State and promoting the maximum opportunity for the people to experience and enjoy those arts;arts.

(6)        To advise the Secretary of the Department upon any matter the Secretary may refer to it; andrefers to it.

(7)        To advise the Secretary concerning the promotion of theater arts in the State.

SECTION 28.  G.S. 143B‑88 reads as rewritten:

§ 143B‑88.  North Carolina Arts Council – members; selection; quorum; compensation.

The North Carolina Arts Council shall consist of 24 members appointed by the Governor. The initial members of the Council shall be the appointed members of the present Arts Council who shall serve for a period equal to the remainder of their current terms on the Arts Council, eight of whose terms expire June 30, 1973, eight of whose terms expire June 30, 1974, and eight of whose terms expire June 30, 1975. At the end of the respective terms of office of the initial members, the appointments of their successors The terms of members shall be for terms of three years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Council created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Governor shall designate a member of the Council as chairman chair to serve at his the Governor's pleasure.

Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

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

SECTION 29.  G.S. 143B‑93 reads as rewritten:

§ 143B‑93.  Roanoke Island Historical Association – status.

The Roanoke Island Historical Association is hereby declared not to be a State agency within the meaning of the Executive Organization Act of 1973 and shall be not an agency, as defined by G.S. 143B‑3, and is exempt from all provisions of the Executive Organization Act of 1973 except G.S. 143B‑92 and G.S. 143B‑93.this Chapter except this Part.

SECTION 30.  G.S. 143B‑96 reads as rewritten:

§ 143B‑96.  Edenton Historical Commission – status.

The Edenton Historical Commission is hereby declared not to be a State agency within the meaning of the Executive Organization Act of 1973 and shall be not an agency, as defined by G.S. 143B‑3, and is exempt from all provisions of the Executive Organization Act of 1973 except G.S. 143B‑95 through G.S. 143B‑98.this Chapter except this Part.

SECTION 31.  G.S. 143B‑100 reads as rewritten:

§ 143B‑100.  Historic Bath Commission – status.

The Historic Bath Commission is hereby declared not to be a State agency within the meaning of the Executive Organization Act of 1973 and shall be not an agency, as defined by G.S. 143B‑3, and is exempt from all provisions of the Executive Organization Act of 1973 except G.S. 143B‑99 through G.S. 143B‑102.this Chapter except this Part.

SECTION 32.  G.S. 143B‑104 reads as rewritten:

§ 143B‑104.  Historic Hillsborough Commission – status.

The Historic Hillsborough Commission is hereby declared not to be a State agency within the meaning of the Executive Organization Act of 1973 and shall be not an agency, as defined by G.S. 143B‑3, and is exempt from all provisions of the Executive Organization Act of 1973 except G.S. 143B‑103 through G.S. 143B‑106.this Chapter except this Part.

SECTION 33.  G.S. 143B‑108 reads as rewritten:

§ 143B‑108.  Historic Murfreesboro Commission – status.

The Historic Murfreesboro Commission is hereby declared not to be a State agency within the meaning of the Executive Organization Act of 1973 and shall be not an agency, as defined in G.S. 143B‑3, and is exempt from all provisions of the Executive Organization Act of 1973 except G.S. 143B‑107 through G.S. 143B‑110.this Chapter except this Part.

SECTION 34.  G.S. 143B‑135.132 reads as rewritten:

§ 143B‑135.132.  North Carolina Trails Committee – members; selection; removal; compensation.

The North Carolina Trails Committee shall consist of seven members appointed by the Secretary of Natural and Cultural Resources. Two members shall be from the mountain section, two from the Piedmont section, two from the coastal plain, and one at large. They shall as much as possible represent various trail users.

Committee members shall serve staggered terms of four years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Committee created by the resignation, dismissal, death death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Committee from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Secretary of Natural and Cultural Resources shall designate a member of the Committee to serve as chairman chair at the pleasure of the Governor.

Members of the Committee shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5 and G.S. 143B‑15 of the Executive Organization Act of 1973.G.S. 138‑5.

SECTION 35.  G.S. 143B‑135.207 reads as rewritten:

§ 143B‑135.207.  North Carolina Zoological Park Council – members; selection; removal; chairman; chair; compensation; quorum; services.

The North Carolina Zoological Park Council of the Department of Natural and Cultural Resources shall consist of 15 members appointed by the Governor, one of whom shall be the Chairman Chair of the Board of Directors of the North Carolina Zoological Society.

At the end of the respective terms of office of the initial members of the Council, the Governor, to achieve staggered terms, shall appoint five members for terms of two years, five members for terms of four years and five members for terms of six years. Thereafter, the appointment of their successors The terms of members shall be for terms of six years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Council created by the resignation, dismissal, death death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Governor shall designate a member of the Council to serve as chairman chair at his the Governor's pleasure.

Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

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

SECTION 36.  G.S. 143B‑147(b) reads as rewritten:

(b)      All rules hereby adopted shall be consistent with the laws of this State and not inconsistent with the management responsibilities of the Secretary of the Department of Health and Human Services provided by this Chapter and the Executive Organization Act of 1973.Chapter.

SECTION 37.  G.S. 143B‑154 reads as rewritten:

§ 143B‑154.  Social Services Commission – members; selection; quorum; compensation.

The Social Services Commission of the Department of Health and Human Services shall consist of one member from each congressional district in the State, all of whom shall be appointed by the Governor for four‑year terms.

The initial members of the Commission shall be the appointed members of the current Social Services Commission who shall serve for the remainder of their current terms and four additional members appointed by the Governor for terms expiring April 1, 1981. Any An appointment to fill a vacancy on the Commission created by the resignation, dismissal, death, removal removal, or disability of a member shall be for the balance of the unexpired term.

In the event that more than 11 If another congressional districts are district is established in the State, the Governor shall shall, on July 1 following the establishment of such the additional congressional districts district, appoint a member of the Commission from that congressional district.

The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance, or nonfeasance in accordance with the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.G.S. 143B‑13.

The members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

All clerical and other services required by the Commission shall be supplied by the Secretary of Health and Human Services.

SECTION 38.  G.S. 143B‑158(g) reads as rewritten:

(g)      A member of the Commission shall not vote on any issue before the Commission that would have a significant and predictable effect on the member's financial interest. The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance, or nonfeasance in accordance with the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.G.S. 143B‑13.

SECTION 39.  G.S. 143B‑166 reads as rewritten:

§ 143B‑166.  North Carolina Medical Care Commission – members; selection; quorum; compensation.

The North Carolina Medical Care Commission of the Department of Health and Human Services shall consist of 17 members appointed by the Governor. Three of the members appointed by the Governor shall be nominated by the North Carolina Medical Society, one member shall be nominated by the North Carolina Nurses Association, one member shall be nominated by the North Carolina Pharmaceutical Association, Association of Pharmacists, one member shall be nominated by the Duke Foundation Endowment, and one member shall be nominated by the North Carolina Hospital Healthcare Association. The remaining 10 members of the North Carolina Medical Care Commission shall be appointed by the Governor and selected so as to fairly represent agriculture, industry, labor, and other interest groups in North Carolina. One such member appointed by the Governor shall be a dentist licensed to practice in North Carolina Carolina, and one such member appointed by the Governor shall be an individual affiliated with a nonprofit Continuing Care Retirement Community continuing care retirement community licensed pursuant to Article 64 of Chapter 58 of the General Statutes. The initial members of the Commission shall be 18 members of the North Carolina Medical Care Commission who shall serve for a period equal to the remainder of their current terms on the North Carolina Medical Care Commission, six of whose appointments expire June 30, 1973, four of whose appointments expire June 30, 1974, four of whose appointments expire June 30, 1975, and four of whose appointments expire June 30, 1976. To achieve the required 17 members the Governor shall appoint three members to the Commission upon the expiration of four members' initial terms on June 30, 1973. At the end of the respective terms of office of the initial members of the Commission, their successors The terms of the members shall be appointed for terms of four years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Commission created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance malfeasance, or nonfeasance in accordance with the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.G.S. 143B‑13.

Vacancies on said the Commission among the membership nominated by a society, association, or foundation as hereinabove provided shall be filled by the Executive Committee executive committee or other authorized agent of said the society, association association, or foundation until the next meeting of the society, association association, or foundation at which time the society, association association, or foundation shall nominate a member to fill the vacancy for the unexpired term.

The members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

All clerical and other services required by the Commission shall be supplied by the Secretary of Health and Human Services.

SECTION 40.  G.S. 143B‑168.4 is recodified as G.S. 110‑87.1 and reads as rewritten:

§ 110‑87.1.  Child Care Commission – members; selection; quorum.Commission.

(a)        The Child Care Commission of the Department of Health and Human Services is created. The Commission shall consist of 17 members. Nine of the members shall be appointed by the Governor and eight by the General Assembly, four upon the recommendation of the President Pro Tempore of the Senate, and four upon the recommendation of the Speaker of the House of Representatives. Four of the members appointed by the Governor, two by the General Assembly on the recommendation of the President Pro Tempore of the Senate, and two by the General Assembly on the recommendation of the Speaker of the House of Representatives, Representatives shall be members of the public who are not employed in, or providing, child care and who have no financial interest in a child care facility. Two of the foregoing public members appointed by the Governor, one of the foregoing public members recommended by the President Pro Tempore of the Senate, and one of the foregoing public members recommended by the Speaker of the House of Representatives shall be parents of children receiving child care services. Of the remaining two public members appointed by the Governor, one shall be a pediatrician currently licensed to practice in North Carolina. Three of the members appointed by the Governor shall be child care providers, one of whom shall be affiliated with a for‑profit child care center, one of whom shall be affiliated with a for‑profit family child care home, and one of whom shall be affiliated with a nonprofit facility. Two of the members appointed by the Governor shall be early childhood education specialists. Two of the members appointed by the General Assembly on the recommendation of the President Pro Tempore of the Senate, Senate and two of the members appointed by the General Assembly on recommendation of the Speaker of the House of Representatives, Representatives shall be child care providers, one affiliated with a for‑profit child care facility, and one affiliated with a nonprofit child care facility. None of the members may shall be employees of the State.

(b)        Members shall be appointed as follows:

(1)        Of the Governor's initial appointees, five shall be appointed for terms expiring June 30, 2020, and four shall be appointed for terms expiring June 30, 2021.

(2)        Of the General Assembly's initial appointees appointed upon recommendation of the President Pro Tempore of the Senate, two shall be appointed for terms expiring June 30, 2020, and two shall be appointed for terms expiring June 30, 2021.

(3)        Of the General Assembly's initial appointees appointed upon recommendation of the Speaker of the House of Representatives, two shall be appointed for terms expiring June 30, 2020, and two shall be appointed for terms expiring June 30, 2021.

Appointments by the General Assembly shall be made in accordance with G.S. 120‑121. After the initial appointees' terms have expired, all All members shall be appointed to serve two‑year terms. Any An appointment to fill a vacancy on the Commission created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

(c)        A vacancy occurring during a term of office is filled:filled as follows:

(1)        By the Governor, if the Governor made the initial appointment;appointment.

(2)        By the General Assembly, if the General Assembly made the initial appointment in accordance with G.S. 120‑122.

At its first meeting the Commission members shall elect a Chair to serve a term expiring June 30, 2020. A successor Chair shall be elected for a two‑year terms thereafter. term on June 30 of every even‑numbered year. The same member may serve as Chair for two consecutive terms.

Commission members may be removed pursuant to G.S. 143B‑13(d).

Commission members may be reappointed and may succeed themselves for a maximum of four consecutive terms.

The Commission shall meet quarterly, and at other times at the call of the Chair or upon written request of at least six members.

The members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5. A majority of the Commission shall constitute constitutes a quorum for the transaction of business.

All clerical and other services required by the Commission shall be supplied by the Secretary of Health and Human Services.

SECTION 41.  G.S. 143B‑181 reads as rewritten:

§ 143B‑181.  Governor's Advisory Council on Aging – members; selection; quorum; compensation.

The Governor's Advisory Council on Aging of the Department of Health and Human Services shall consist of 33 members, 29 members to be appointed by the Governor, two members to be appointed by the President Pro Tempore of the Senate, and two members to be appointed by the Speaker of the House of Representatives. The composition of the Council shall be as follows: one representative of the Department of Administration; one representative of the Department of Natural and Cultural Resources; one representative of the Division of Employment Security; one representative of the Teachers' and State Employees' Retirement System; one representative of the Commissioner of Labor; one representative of the Department of Public Instruction; one representative of the Department of Environmental Quality; one representative of the Department of Insurance; one representative of the Department of Public Safety; one representative of the Department of Community Colleges; Community Colleges System Office, one representative of the School of Public Health of The University of North Carolina; one representative of the School of Social Work of The University of North Carolina; one representative of the Agricultural Extension Service of North Carolina State University; one representative of the collective body of the Medical Society of North Carolina; and 19 members at large. The at large members shall be citizens who are knowledgeable about services supported through the Older Americans Act of 1965, as amended, and shall include persons with greatest economic or social need, minority older persons, and participants in programs under the Older Americans Act of 1965, as amended. The Governor shall appoint 15 members at large who meet these qualifications and are 60 years of age or older. The four remaining members at large, two of whom shall be appointed by the President Pro Tempore of the Senate and two of whom shall be appointed by the Speaker of the House of Representatives, shall be broadly representative of the major private agencies and organizations in the State who are experienced in or have demonstrated particular interest in the special concerns of older persons. At least one of each of the at‑large appointments of the President Pro Tempore of the Senate and the Speaker of the House of Representatives shall be persons 60 years of age or older. The Council shall meet at least quarterly.

Members at large shall be appointed for four‑year terms and until their successors are appointed and qualify. Ad interim appointments shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Governor shall designate one member of the Council as chair to serve in such capacity at his the Governor's pleasure.

Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

All clerical and other services required by the Council shall be supplied by the Secretary of Health and Human Services.

SECTION 42.  G.S. 143B‑217 reads as rewritten:

§ 143B‑217.  Department of Revenue – creation.

There is hereby recreated and reestablished a department to be known as the Department of Revenue with the organization, duties, functions, and powers defined in the Executive Organization Act of 1973.The Department of Revenue is created. The Department has the powers and duties defined by law.

SECTION 43.  G.S. 143B‑293.2(c1) reads as rewritten:

(c1)    Removal. – The Governor shall have the power to may remove any member of the Commission from office for misfeasance, malfeasance, or nonfeasance in accordance with the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973, nonfeasance, as provided in G.S. 143B‑13, or for good cause.

SECTION 44.  G.S. 143B‑324.2(c) and (d) read as rewritten:

(c)      Removal. – The Governor shall have the power to may remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

(d)       Compensation. – Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5 and G.S. 143B‑15 of the Executive Organization Act of 1973.G.S. 138‑5.

SECTION 45.  G.S. 143B‑345 reads as rewritten:

§ 143B‑345.  Department of Transportation – creation.

There is hereby created and established a department to be known as the Department of Transportation with the organization, powers, and duties defined in Article 1 of Chapter 143B, except as modified in this Article.The Department of Transportation is created. The Department has the powers and duties defined by law.

SECTION 46.  G.S. 143B‑348, as amended by Section 8 of this act, reads as rewritten:

§ 143B‑348.  Department of Transportation – head; rules, regulations, etc., of Board of Transportation.head.

(a)        The Secretary of Transportation shall be is the head of the Department of Transportation. He shall carry out The Secretary is responsible for the day‑to‑day operations of the Department and shall be responsible for carrying out the policies, programs, priorities, and projects approved by the Board of Transportation. He shall be The Secretary is responsible for all other transportation matters assigned to the Department of Transportation, Department, except those reserved to the Board of Transportation by statute. Except as otherwise provided for by statute, the Secretary shall have all has the powers and duties as provided for in Article 1 of Chapter 143B this Chapter, including the responsibility for all management functions for the Department of Transportation. Department. The Secretary shall be vested with authority to may adopt design criteria, construction specifications, and standards as required for the Department of Transportation to construct and maintain highways, bridges, and ferries. The Secretary or the Secretary's designee shall be vested with authority to promulgate may adopt rules and regulations concerning all transportation functions assigned to the Department.

….

SECTION 47.  G.S. 143B‑366 reads as rewritten:

§ 143B‑366.  Department of Administration – creation.

There is hereby recreated and reestablished a department to be known as the Department of Administration, with the organization, powers, and duties defined in the Executive Organization Act of 1973.The Department of Administration is created. The Department has the powers and duties defined by law.

SECTION 48.  G.S. 143B‑394 reads as rewritten:

§ 143B‑394.  North Carolina Council for Women – members; selection; quorum; compensation.

The North Carolina Council for Women of the Department of Administration shall consist of 20 members appointed by the Governor. The initial members of the Council shall be the appointed members of the North Carolina Council for Women, three of whose appointments expire June 30, 1977, and four of whose appointments expire June 30, 1978. Thirteen additional members shall be appointed in 1977, six of whom shall serve terms expiring June 30, 1978, and seven of whom shall serve terms expiring June 30, 1979. At the ends of the respective terms of office of the initial members of the Council and of the 13 members added in 1977, the appointment of their successors The terms of the members shall be for terms of two years and until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Council created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term. Members of the Council shall be representative of age, sex, ethnic ethnicity, and geographic backgrounds.

The Governor shall have the power to may remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Governor shall designate a member of the Council to serve as chairman chair at the pleasure of the Governor.

Members of the Council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.

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

All clerical and other services required by the Council shall be supplied by the Secretary of Administration.

SECTION 49.  G.S. 143B‑394.26 reads as rewritten:

§ 143B‑394.26.  State Youth Advisory Council – members; selection; quorum; compensation.

The State Youth Advisory Council of the Department of Administration shall consist of 20 members. The composition and appointment of the Council shall be as follows:

Ten youths to be elected by the procedure adopted by the Youth Advisory Council, which shall include a requirement that four of the members represent youth organizations; and 10 adults to be appointed by the Governor at least four of whom shall be individuals working on youth programs through youth organizations. Provided that no No person shall serve on the Board for more than two complete consecutive terms.

The initial members of the Council shall be the appointed members of the Youth Advisory Board who shall serve for a period equal to the remainder of their current terms on the Youth Advisory Board. The current terms of the youth members expire July 1, 1976, the current terms of four of the adult members expire April 7, 1976, and the remaining four adult members' terms expire May 1, 1978. At the end of the respective terms of office of the initial members of the Council, the appointment of their successors shall be as follows:

(1)        Eight youth members to serve for terms beginning on July 1, 1976, and expiring on June 30, 1977, and two additional youth members to serve for terms beginning on July 1, 1977, and expiring on June 30, 1978. At the end of the terms of office of these youth members of the Council, the appointment of their successors shall be for terms of two years and until their successors are appointed and qualify.

(2)        Four adult members to serve for terms beginning on April 8, 1976, and expiring on June 30, 1979; four adult members to serve for terms beginning on May 1, 1978, and expiring on June 30, 1980; one additional adult member to serve for a term beginning July 1, 1977, and expiring June 30, 1978; and one additional adult member to serve for a term beginning July 1, 1977, and expiring June 30, 1979. At the end of the respective terms of office of these adult members of the Council, the appointment of their successors The terms of members shall be for terms of two years and until their successors are appointed and qualify. At least one adult member shall be an advisor of a local youth council at appointment and for the duration of the term. The total membership shall reasonably reflect the socioeconomic, ethnic, sexual sexual, and sectional composition of the State.

Any An appointment to fill a vacancy on the Council created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.

The Governor shall have the power to may remove any member of the Council from office in accordance with the provisions of G.S. 143B‑16 of the Executive Organization Act of 1973.G.S. 143B‑16.

The Governor shall designate an adult member of the Council to serve as chairman chair at the pleasure of the Governor. The Council shall elect a youth member to serve as vice‑chairman vice‑chair for a one‑year term.

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

Members of the Council who are not officers or employees of the State shall receive per diem and necessary travel and subsistence expenses in accordance with provisions of G.S. 138‑5.

All clerical and other services required by the Council shall be supplied by the Secretary of Administration.

SECTION 50.  G.S. 143B‑404 reads as rewritten:

§ 143B‑404.  North Carolina State Commission of Indian Affairs – creation; name.

There is hereby created and established the The North Carolina State Commission of Indian Affairs. The Commission shall be administered under the direction and supervision of Affairs is administratively located in the Department of Administration pursuant to G.S. 143A‑6(b) and (c).but shall exercise its powers independently of the Secretary of Administration.

SECTION 51.  G.S. 143B‑431.01(b) reads as rewritten:

(b)      Contract. – The Department of Commerce is authorized to may contract with a North Carolina nonprofit corporation to perform one or more of the Department's functions, powers, duties, and obligations set forth in G.S. 143B‑431, obligations, except as provided in this subsection. The contract entered into pursuant to this section between the Department and the Economic Development Partnership of North Carolina is exempt from Articles 3 and 3C of Chapter 143 of the General Statutes and G.S. 143C‑6‑23. If the Department contracts with a North Carolina nonprofit corporation to promote and grow the travel and tourism industries, then all funds appropriated to the Department for tourism marketing purposes shall be used for a research‑based, comprehensive marketing program directed toward consumers in key markets most likely to travel to North Carolina and not for ancillary activities, such as statewide branding and business development marketing. The Department may shall not contract with a North Carolina nonprofit corporation regarding any of the following:

(1)        The obligation or commitment of funds under this Article, such as the One North Carolina Fund, the Job Development Investment Grant Program, the Industrial Development Fund, or the Job Maintenance and Capital Development Fund.

(2)        The Division of Employment Security, including the administration of unemployment insurance.

(3)        The functions set forth in G.S. 143B‑431(a)(2).of an agency, board, or commission that exercises its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b).

(4)        The administration of funds or grants received from the federal government or its agencies, except for the following:

a.         The State Trade and Export Promotion Program.

b.         The Manufacturing Extension Program.

(5)        The administration of a site certification program. Nothing in this subdivision prohibits the contracting of responsibility for creating or maintaining a website with data on unutilized or underutilized properties in the State with potential commercial or industrial reuses.

SECTION 52.  G.S. 143B‑439(b) reads as rewritten:

(b)      The relationship between the Secretary of Commerce and the Credit Union Commission shall be as defined for a Type II transfer under this Chapter.The Commission is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b).

SECTION 53.  The title of G.S. 143B‑1203 reads as rewritten:

§ 143B‑1203.  Transfer; definitions.Definitions.

SECTION 54.  G.S. 143B‑1454(a) reads as rewritten:

(a)      The functions of the Division of Prisons shall include all functions of the executive branch of the State in relation to corrections and the detention and rehabilitation of adult offenders, including detention and further including those prescribed offenders and the powers, duties, and functions enumerated in the laws of this State. All such functions, powers, duties, and obligations heretofore vested in the State Department of Correction and Commission of Correction are hereby transferred to and vested in the Division of Prisons of the Department of Adult Correction except as otherwise provided by the Executive Organization Act of 1973.

SECTION 55.  G.S. 143B‑1490(a) and (c) read as rewritten:

(a)      There is hereby created a The Post‑Release Supervision and Parole Commission of the Division of Community Supervision and Reentry of the Department of Adult Correction with the authority to is created. The Commission has the following powers:

(1)        To grant paroles, including both regular and temporary paroles, to persons held by virtue of any final order or judgment of any court of this State as provided in Chapter 148 of the General Statutes and other laws of the State of North Carolina, State, except that persons sentenced under Article 81B of Chapter 15A of the General Statutes are not eligible for parole but may be conditionally released into the custody and control of United States Immigration and Customs Enforcement pursuant to G.S. 148‑64.1. The Commission shall also have authority to

(2)        To revoke, terminate, and suspend paroles of such persons (including persons placed on parole on or before the effective date of the Executive Organization Act of 1973) and to granted.

(3)        To assist the Governor in exercising his the Governor's authority in granting reprieves, commutations, and pardons, pardons and shall perform such to perform other services as may be required by the Governor may require in exercising his the powers of executive clemency. The Commission shall also have authority to

(4)        To revoke and terminate persons on post‑release supervision, as provided in Article 84A of Chapter 15A of the General Statutes. The Commission shall also have the authority to

(5)        To punish for criminal contempt for the willful refusal to accept post‑release supervision or to comply with the terms of post‑release supervision by a prisoner whose offense requiring post‑release supervision is a reportable conviction subject to the registration requirement of Article 27A of Chapter 14 of the General Statutes. Any A contempt proceeding conducted by the Commission shall be in accordance with G.S. 5A‑15 as if the Commission were a judicial official.

…

(c)        The Commission is authorized and empowered to may adopt rules not inconsistent with the laws of this State, in accordance with by which prisoners eligible for parole consideration may have their cases reviewed and investigated and by which such parole proceedings may be initiated and considered. All rules and regulations heretofore adopted by the Board of Paroles shall remain in full force and effect unless and until repealed or superseded by action of the Commission. All rules adopted by the Commission shall be enforced by the Division of Community Supervision and Reentry of the Department of Adult Correction.

SECTION 56.  G.S. 143B‑1491 reads as rewritten:

§ 143B‑1491.  Post‑Release Supervision and Parole Commission – members; selection; removal; chair; compensation; quorum; services.

(a)        Effective August 1, 2005, the The Post‑Release Supervision and Parole Commission shall consist of one four full‑time member and two half‑time members. The three members shall be appointed by the Governor from persons whose recognized ability, training, experience, and character qualify them for service on the Commission. The terms of office of any members serving on the Commission on June 30, 2005, shall expire on that date. members appointed by the Governor. The terms of office of persons appointed by the Governor as members of the Commission shall be for four years or until their successors are appointed and qualify. Any An appointment to fill a vacancy on the Commission created by the resignation, removal, death death, or disability of a member shall be for the balance of the unexpired term only.

(a1)      Effective August 1, 2012, both half‑time commissioners shall begin serving as full‑time members of the Commission, and the Post‑Release Supervision and Parole Commission shall consist of three full‑time members.

(a2)      Effective February 1, 2013, an additional member shall be appointed by the Governor to the Commission, and the Post‑Release Supervision and Parole Commission shall consist of four full‑time members.

(b)        All members of the Post‑Release Supervision and Parole Commission appointed by the Governor shall possess the recognized ability, training, experience, and character to qualify each person to serve ably on the Commission.

(c)        The Governor shall have the authority to may remove any member of the Commission from office for misfeasance, malfeasance malfeasance, or nonfeasance, pursuant to the provisions of G.S. 143B‑13. The Governor shall designate a member of the Commission to serve as chair of the Commission at the pleasure of the Governor.

(d)       The granting, denying, revoking, or rescinding of parole, the authorization of work‑release privileges to a prisoner, or any other matters of business coming before the Commission for consideration and action shall be decided by majority vote of the full Commission, except that a three‑member panel of the Commission may set the terms and conditions for a post‑release supervisee under G.S. 15A‑1368.4 and may decide questions of violations thereunder, of these terms and conditions, including the issuance of warrants. In the event of a tie in a vote by the full Commission, the chair shall break the tie with an additional vote.

(e)        The members of the Commission shall receive the salary fixed by the General Assembly in the Current Operations Appropriations Act and shall receive necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑6. The half‑time members of the Commission shall not be subject to the provisions of G.S. 135‑3(a)(8)c.

(f)        All clerical and other services required by the Commission shall be supplied by the Secretary of the Department of Adult Correction.

PART III. REPEAL OTHER PROVISIONS CONCERNING THE OBSOLETE 1971 AND 1973 REORGANIZATIONS OF THE EXECUTIVE BRANCH AND MAKE CONFORMING CHANGES

SECTION 57.  G.S. 18B‑500(a) reads as rewritten:

(a)      Appointment. – The Secretary of Public Safety shall appoint and supervise the Director of the Division of Alcohol Law Enforcement of the Department of Public Safety. The Director of the Division of Alcohol Law Enforcement of the Department of Public Safety may appoint and supervise a sufficient number of assistants who shall be competent and qualified to do the work of the Division. The Director is responsible for making all hiring and personnel decisions of the Division. Notwithstanding the provisions of this Chapter or Chapter 143A of the General Statutes, Chapter, the Director may hire or fire personnel and transfer personnel within the Division. The Director may also appoint a regular employee of the Commission as an ALE agent, provided so long as the employee was employed by the ABC Commission and serving as an ALE agent on January 1, 2019. Alcohol law‑enforcement agents shall be designated as alcohol law‑enforcement agents. Persons serving as reserve alcohol law‑enforcement agents are considered employees of the Division for workers' compensation purposes while performing duties assigned or approved by the Director of the Division or the Director's designee.

SECTION 58.  G.S. 53C‑2‑1(a) reads as rewritten:

(a)      The State Banking Commission is created. The Commission is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b). The Commission consists of 15 members, including the State Treasurer, who shall serve as an ex officio member; 12 members appointed by the Governor; and two members appointed by the General Assembly under G.S. 120‑121, one of whom shall be appointed upon the recommendation of the President Pro Tempore of the Senate and one of whom shall be appointed upon the recommendation of the Speaker of the House of Representatives. The Governor shall appoint to the Commission three practical bankers, one consumer finance licensee, one member who is, or is employed by a person that is, licensed under Article 19B of Chapter 53 of the General Statutes, and seven public members. The member appointed upon the recommendation of the President Pro Tempore of the Senate shall be a practical banker, and the member appointed upon the recommendation of the Speaker of the House shall be a practical banker. Members shall serve terms of four years. No individual shall serve more than two complete consecutive terms on the Commission. Any vacancy occurring in the membership of the Commission shall be filled by the appropriate appointing officer for the unexpired term, except that vacancies among members appointed by the General Assembly shall be filled in accordance with G.S. 120‑122. The appointed members of the Commission shall receive subsistence and travel expenses at the rates set forth in G.S. 120‑3.1. This compensation shall be paid from the revenues of the OCOB.

SECTION 59.  G.S. 53C‑2‑3(a) reads as rewritten:

(a)      The Commissioner shall be assisted in the performance of the duties of office by (i) one or more deputy commissioners and (ii) examiners, investigators, counsel, and other employees under the supervision of the Commissioner, all of whom, together with the Commissioner, shall comprise the Office of the Commissioner of Banks. The OCOB is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b). In addition, the work of the OCOB may be conducted by employees of other agencies of government and by agents and independent contractors of the OCOB. The Commissioner may appoint or remove at his or her discretion any deputy commissioner.

SECTION 60.  Article 1 of Chapter 54B of the General Statutes is amended by adding a new section to read:

§ 54B‑4.1.  Savings Institution Division.

The Savings Institution Division is created. The Division is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b).

SECTION 61.  G.S. 62‑10(a) reads as rewritten:

(a)      The North Carolina Utilities Commission is created. The Commission is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b). The Commission shall consist of five commissioners who shall be appointed as follows: two by the Governor, one by the State Treasurer, one by the General Assembly, upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121, and one by the General Assembly, upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121. Each commissioner shall serve for a term of six years commencing on July 1 of the year in which the predecessor term expired and ending on June 30 of the sixth year thereafter. Commissioners appointed by the Governor and Treasurer are subject to confirmation by the General Assembly by joint resolution. The names of commissioners to be appointed by the Governor and Treasurer shall be submitted by the Governor and Treasurer to the General Assembly for confirmation by the General Assembly on or before May 1, of the year in which the terms for which the appointments are to be made are to expire. Upon failure of the Governor or Treasurer to submit names as herein provided, provided in this subsection, the President Pro Tempore of the Senate and Speaker of the House of Representatives jointly shall submit the names of a like number of commissioners to the General Assembly on or before May 15 of the same year for confirmation by the General Assembly. Regardless of the way in which names of commissioners are submitted, confirmation of commissioners must be accomplished prior to adjournment of the then current session of the General Assembly.

SECTION 62.  G.S. 76A‑1 reads as rewritten:

§ 76A‑1.  Commission established; powers generally.

In consideration of the requirement for the safe and expeditious movement of waterborne commerce on the navigable waters of the State, it is deemed necessary to establish the Cape Fear Navigation and Pilotage Commission, hereinafter referred to as the Commission. The Commission is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b). The Commission shall have has the exclusive power to license and regulate a group of river pilots familiar with the waters of the Cape Fear River and Bar to best guide vessels within those waters and to exercise authority over navigation in the Cape Fear and Bar and to and from the sea buoy of the port. The Commission shall report its activities to the Governor through the Secretary of Commerce.

SECTION 63.  G.S. 76A‑31 reads as rewritten:

§ 76A‑31.  Morehead City Navigation and Pilotage Commission.

In consideration of the requirement for the safe and expeditious movement of waterborne commerce on the navigable waters of the State, it is deemed necessary to establish the Morehead City Navigation and Pilotage Commission, herein called Commission. The Commission is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b). The Commission shall have has the exclusive power to license and regulate pilots familiar with the waters of Morehead City Harbor and Beaufort Bar and the water route from Morehead City to Aurora, North Carolina (to include Carolina, including from Morehead City through the Inland or Intracoastal Waterway North, through Adams Creek, the Neuse River, the Bay River, the Hobuken Canal, the Pamlico River, and South Creek to Aurora or from the Neuse River around Brant Island Shoal through the Pamlico River and South Creek to Aurora), Aurora, referred to herein in this Subchapter as the regulated area, to best guide vessels within those waters and to exercise authority over navigation in Morehead City Harbor and Beaufort Bar and to and from the sea buoy of the port. The Commission shall report its activities to the Governor through the Secretary of Commerce.

SECTION 64.  G.S. 97‑77 reads as rewritten:

§ 97‑77.  North Carolina Industrial Commission created; members appointed by Governor; terms of office; chairman.chair.

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(b)        One member, to be designated by the Governor, shall act as chairman.chair.

The chairman chair shall be the chief judicial officer and the chief executive officer of the Industrial Commission; such this authority shall be exercised pursuant to the provisions of Chapter 126 of the General Statutes and the rules and policies of the State Human Resources Commission. Notwithstanding the provisions of this Chapter, the chairman shall have such chair has authority as is necessary to direct and oversee the Commission. The chairman chair may delegate any duties and responsibilities as may be necessary to ensure the proper management of the Industrial Commission. Notwithstanding the provisions of this Chapter, Chapter 143A, Chapter and Chapter 143B of the General Statutes, the chairman chair may hire or fire personnel and transfer personnel within the Industrial Commission.

The Governor may designate one vice‑chairman vice‑chair from the remaining commissioners.

SECTION 65.  G.S. 113‑128(10) reads as rewritten:

(10)    Wildlife Resources Commission. – The North Carolina Wildlife Resources Commission as established by Article 24 of Chapter 143 of the General Statutes and Part 3 of Article 7 of Chapter 143B of the General Statutes.Statutes.

SECTION 66.  G.S. 117‑1 reads as rewritten:

§ 117‑1.  Rural Electrification Authority created; appointments; terms of members.

An agency to be known as the The North Carolina Rural Electrification Authority is hereby created as an agency of the State of North Carolina, such agency to created. The Authority is administratively located in the Department of Commerce but shall exercise its powers independently of the Secretary of Commerce under G.S. 143C‑1‑6(b). It shall consist of five members to be appointed by the Governor of North Carolina. Current members of the North Carolina Rural Electrification Authority shall complete their respective terms of office. On or after June 5, 1975, the Governor shall appoint two members to replace those members whose terms expire on said date. Governor. All appointments made by the Governor shall be made for terms of four years.

SECTION 67.  G.S. 126‑3(a) reads as rewritten:

(a)      There is hereby established the The Office of State Human Resources (hereinafter referred to as the Office) which shall be placed is created. The Office is located for organizational purposes within the Office of the Governor. Notwithstanding the provisions of North Carolina State government reorganization as of January 1, 1975, and specifically notwithstanding the provisions of Chapter 864 of the 1971 North Carolina Session Laws, Chapter 143A of the General Statutes, the The Office of State Human Resources shall exercise all of its statutory powers in this Chapter, which shall be is under the administration and supervision of a Director of the Office of State Human Resources (hereinafter referred to as the Director) appointed by the Governor and subject to the supervision of the Commission for purposes of this Chapter. The salary of the Director shall be fixed set by the Governor. The Director shall serve at the pleasure of the Governor.

SECTION 68.  G.S. 126‑19 reads as rewritten:

§ 126‑19.  Equal employment opportunity plans; reports; maintenance of services by Director of the Office of State Human Resources.

(a)        Each member of the Council of State under G.S. 143A‑11, each of the principal departments principal State office or principal State department enumerated in G.S. 143B‑6, The University of North Carolina, the judicial branch, and the legislative branch, branch shall develop and submit on an annual basis an Equal Employment Opportunity plan which that shall include goals and programs that provide positive measures to assure equitable and fair representation of North Carolina's citizens. The plans developed by the judicial branch and by the Legislative Services Office on behalf of the legislative branch shall be submitted to the General Assembly on or before June 1 of each year. All other such plans shall be submitted to the Director of the Office of State Human Resources for review and approval on or before March 1, 1 of each year.

(b)        Repealed by Session Laws 2013‑382, s. 7.3, effective August 21, 2013.

(c)        The Director of the Office of State Human Resources will shall provide services of Equal Employment Opportunity technical assistance, training, oversight, monitoring, evaluation, support programs, and reporting to assure that the State government's work force is diverse at all occupational levels. These services shall be provided by qualified personnel.

SECTION 69.  G.S. 136‑18 is amended by adding a new subdivision to read:

(12c)  To contract with the United States government to obtain the benefits available to the State under the Federal Highway Safety Act of 1966 and, with the Governor's approval, to coordinate the activities of all departments and agencies of the State and its subdivisions to obtain these benefits.

SECTION 70.  G.S. 140‑5.13(e) reads as rewritten:

(e)      Any member of the Board of Trustees may be removed from office by the authority that appointed or elected that member for misfeasance, malfeasance, or nonfeasance in office. In the case of an appointment made by the Governor, removal shall be made in accordance with the provisions of G.S. 143B‑13 of the Executive Organization Act of 1973.

SECTION 71.  The following statutes in Chapter 143 of the General Statutes are repealed:

(1)        G.S. 143‑34.11. The provisions repealed by this statute are not reenacted.

(2)        G.S. 143‑50.

(3)        G.S. 143‑247.

(4)        G.S. 143‑248.

(5)        G.S. 143‑249.

(6)        G.S. 143‑326.

(7)        G.S. 143‑344.

(8)        G.S. 143‑345.

SECTION 72.  G.S. 143‑240(a) reads as rewritten:

(a)      There is hereby created the The Wildlife Resources Commission of the Department of Environmental Quality which is created. The Commission is administratively located in the Department of Environmental Quality but shall exercise its powers independently of the Secretary of Environmental Quality. The Commission is subject to the direction and supervision of the Secretary only with respect to the management functions of coordinating and reporting.

The Commission shall consist of 19 citizens of North Carolina who shall be appointed as is provided in G.S. 143‑241. Each

Each member of the Commission shall be an experienced hunter, fisherman, farmer, or biologist, who shall be generally informed on wildlife conservation and restoration problems.

Members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5 or G.S. 138‑6 as the case may be, which shall be paid from fees collected by the Wildlife Resources Commission.

SECTION 73.(a)  Subdivision (1) of G.S. 143‑745(a) is recodified as subdivision (3) of that subsection.

SECTION 73.(b)  G.S. 143‑745(a), as amended by subsection (a) of this section, reads as rewritten:

(a)      For the purposes of this section:The following definitions apply in this Article:

(1)        Recodified.

(2)        State agency means each department created pursuant to Chapter 143A or 143B of the General Statutes, and State agency. – A principal State office or principal State department listed in G.S. 143B‑6. The term includes all institutions, boards, commissions, or authorities, by whatever name, that is a unit are units of the executive branch of State government, including The University of North Carolina, Carolina and the Community Colleges System Office. The term does not include a unit of local government.

(3)        Agency head means the State agency head. – The Governor, a Council of State member, a cabinet secretary, the President of The University of North Carolina, the President of the Community College System, the State Controller, and other independent appointed officers with authority over a State agency.

SECTION 73.(c)  G.S. 143‑746 reads as rewritten:

§ 143‑746.  Internal auditing required.

(a)        Requirements. – A State agency shall establish a program of internal auditing that:that does all of the following:

(1)        Promotes an effective system of internal controls that safeguards public funds and assets and minimizes incidences of fraud, waste, and abuse.

(2)        Determines if programs and business operations are administered in compliance with federal and state laws, regulations, State laws and other requirements.

(3)        Reviews the effectiveness and efficiency of agency and program operations and service delivery.

(4)        Periodically audits the agency's major systems and controls, including:including the following:

a.         Accounting systems and controls.

b.         Administrative systems and controls.

c.         Information technology systems and controls.

(a1)      Key Performance Indicators and Criteria. – In addition to the requirements of subsection (a) of this section, each State agency head shall be is responsible for ensuring that the State agency's internal audit unit meets the required key indicators and criteria established by the Council under G.S. 143‑747(c)(3a).

(b)        Internal Audit Standards. – Internal audits shall comply with current Standards for the Professional Practice of Internal Auditing issued by the Institute for Internal Auditors or, if appropriate, Government Auditing Standards issued by the Comptroller General of the United States. Each State agency head shall annually certify to the Council that the audit plan was developed and the audit reports were conducted and reported in accordance with required standards.

(c)        Appointment and Qualifications of Internal Auditors. – Any A State employee who performs the internal audit function shall meet the minimum qualifications for internal auditors established by the Office of State Human Resources, in consultation with the Council of Internal Auditing.

(d)       Director of Internal Auditing. – The A State agency head shall appoint a Director of Internal Auditing who shall report to, as designated by the State agency head, (i) the State agency head, (ii) the chief deputy or chief of staff, or (iii) the agency governing board, or subcommittee thereof, if such a this governing board exists. The Director of Internal Auditing shall be organizationally situated to avoid impairments to independence as defined in the auditing standards referenced in subsection (b) of this section.

(e)        Insufficient Personnel. – If a State agency has insufficient personnel to comply with this section, the Office of State Budget and Management shall provide technical assistance.

(f)        Reporting Fraudulent Activity. – If an internal audit conducted pursuant to this section results in a finding that a private person or entity has received public funds as a result of fraud, misrepresentation, or other deceptive acts or practices while doing business with the State agency, the internal auditor shall submit a detailed written report of the finding, and any additional necessary supporting documentation, to the State Purchasing Officer. A report submitted under this subsection may include a recommendation that the private person or entity be debarred from doing business with the State or a political subdivision thereof.

SECTION 74.  G.S. 147‑12(a)(10) is repealed.

SECTION 75.  G.S. 147‑13.1 is repealed.

SECTION 76.  G.S. 147‑34 is repealed.

SECTION 77.  G.S. 150B‑2(8a) reads as rewritten:

(8a)    Rule. – Any agency regulation, standard, or statement of general applicability that implements or interprets an enactment of the General Assembly or Congress or a regulation adopted by a federal agency or that describes the procedure or practice requirements of an agency. The term includes the establishment of a fee and the amendment or repeal of a prior rule. The term does not include the following:

a.         Statements concerning only the internal management of an agency or group of agencies within the same principal office or department enumerated in G.S. 143A‑11 or 143B‑6, G.S. 143B‑6, including policies and procedures manuals, if the statement does not directly or substantially affect the procedural or substantive rights or duties of a person not employed by the agency or group of agencies.

b.         Budgets and budget policies and procedures issued by the Director of the Budget, by the head of a department, as defined by G.S. 143A‑2 or G.S. 143B‑3, or by an occupational licensing board, as defined by G.S. 93B‑1.

c.         Nonbinding interpretative statements within the delegated authority of an agency that merely define, interpret, or explain the meaning of a statute or rule.

d.         A form, the contents or substantive requirements of which are prescribed by rule or statute.

e.         Statements of agency policy made in the context of another proceeding, including:including the following:

1.         Declaratory rulings under G.S. 150B‑4.

2.         Orders establishing or fixing rates or tariffs.

…

k.         The State Medical Facilities Plan, if the Plan has been prepared with public notice and hearing as provided in G.S. 131E‑176(25), G.S. 131E‑176.2, reviewed by the Commission for compliance with G.S. 131E‑176(25), G.S. 131E‑176.2, and approved by the Governor.

l.          Standards adopted by the State Chief Information Officer and applied to information technology as defined in G.S. 143B‑1320.

m.        Determinations by the Department of Environmental Quality of high hazards pursuant to G.S. 130A‑330.

SECTION 78.  G.S. 159D‑38(e) reads as rewritten:

(e)      The North Carolina Capital Facilities Finance Agency shall be contained within is administratively located in the Department of State Treasurer as if it had been transferred to that department by a Type II transfer as defined in G.S. 143A‑6(b).but shall exercise its powers independently of the State Treasurer.

PART IV. OTHER TECHNICAL CORRECTIONS

SECTION 79.  The Revisor of Statutes shall renumber definitions in G.S. 20‑4.01 so that they appear in alphabetical order.

SECTION 80.  G.S. 20‑16(a)(8) is repealed.

SECTION 81.  G.S. 30‑48 reads as rewritten:

§ 30‑48.  Right of surviving community‑property spouse.

(a)        The surviving community‑property spouse of a decedent may assert a claim for relief with respect to a right under this Article in accordance with the following:

…

(3)        The incapacity of the surviving community‑property spouse does not toll the time for commencing an action or filing a petition as provided in this section.

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SECTION 82.  G.S. 58‑19‑26 reads as rewritten:

§ 58‑19‑26.  Group capital calculation.

(a)        Reporting Requirement. – The ultimate controlling person of every insurer subject to registration pursuant to G.S. 58‑19‑25 shall concurrently file with the registration an annual group capital calculation report. The report shall be filed with the lead state commissioner.

(b)        Exemptions. – The ultimate controlling person of any of the following is exempt from the filing requirement of subsection (a) of this section:

(1)        An insurance holding company system that (i) has only one insurer within its holding company structure, (ii) only writes insurance business, (iii) is only licensed in its state of domicile, and (iv) assumes no business from any other insurer.structure and whose sole insurer meets all of the following requirements:

a.         Is licensed only in its state of domicile.

b.         Writes only insurance business and only in its state of domicile.

c.         Assumes no business from any other insurer.

…

(c)        Recognition of Group Capital Calculation. – For purposes of subdivision (b)(4) of this section, a non‑United States jurisdiction recognizes the group capital calculation if it satisfies any of the following criteria:

(1)        A competent regulatory authority in the jurisdiction affirms that insurers and insurance groups whose lead state is accredited by the NAIC under the NAIC accreditation program shall be are subject only to worldwide prudential insurance group supervision, including worldwide group governance, solvency and capital, and reporting, as applicable, by that jurisdiction's lead state commissioner and will not be are not subject to group supervision, including worldwide group governance, solvency and capital, and reporting, at the level of the worldwide parent undertaking of the insurance or reinsurance group by the non‑United States jurisdiction.

(2)        A competent regulatory authority in the jurisdiction affirms that information regarding insurers and their parent, subsidiary, or affiliated entities, if applicable, shall be provided to the lead state commissioner in accordance with an information sharing agreement in the form of a memorandum of understanding or similar document. Acceptable information sharing agreements include the International Association of Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda of understanding coordinated by the NAIC. The jurisdiction does not satisfy this these criteria if the lead state commissioner determines, in consultation with the NAIC, that the requirements of the information sharing agreements are no longer in force.

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SECTION 83.(a)  G.S. 58‑33‑46 reads as rewritten:

§ 58‑33‑46.  Suspension, probation, revocation, or nonrenewal of licenses.

(a)        The Commissioner may place on probation, suspend, revoke, or refuse to renew any license issued under this Article, in accordance with the provisions of G.S. 93B‑8.1 and Article 3A of Chapter 150B of the General Statutes, for any one or more of the following causes:

(1)        Providing materially incorrect, misleading, incomplete, or materially untrue information in the license application.

(2)        Violating any insurance law of this or any other state, violating any administrative rule, subpoena, or order of the Commissioner or of another state's insurance regulator, or violating any rule of the FINRA.

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(6)        Having been convicted of a any felony or of a misdemeanor involving dishonesty, a breach of trust, or moral turpitude.dishonesty or a breach of trust.

(7)        Having admitted or been found to have committed any insurance unfair trade practice or fraud.

(8)        Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility irresponsibility, in the conduct of business in this State or elsewhere.

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(12a)    Soliciting, negotiating, or selling insurance in this State for an unauthorized insurer, regardless of whether the licensee or applicant knew that the insurer was unauthorized. As used in this section, the terms soliciting, negotiating, and selling shall have the meaning of solicit, negotiate, and sell, respectively, set forth in G.S. 58‑33‑10.

…

(15)      Cheating on an examination for an insurance license or for a prelicensing or continuing education course, including improperly using notes or any other reference material to complete an examination for an insurance license or for a prelicensing or continuing education course.

…

(b)        G.S. 58‑2‑50 applies to any an investigation under this section. G.S. 58‑2‑70 applies to any a person subject to licensure under this Article.

(c)        Any A person licensed under this Article shall notify the Commissioner of the commencement of any bankruptcy, insolvency, or receivership proceeding affecting the person licensed, or upon making an assignment for the benefit of creditors of the person licensed. Each owner, manager, or officer of a business entity that is a licensed person shall be is responsible for providing this notification. Any A person responsible for notifying the Commissioner shall provide the notice within three business days after the commencement of the proceeding or the making of the assignment.

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(e)        No person shall be issued a license or appointment to enter the employment of any other person, which if the other person is at that time found by the Commissioner to be in violation of any of the insurance laws of this State, or which if the other person has been in any manner disqualified under any state or federal law to engage in the insurance business.

(f)        The Commissioner shall retain retains the authority to enforce the provisions of, and impose any penalty or remedy authorized by, this Chapter against any person who that is under investigation for or charged with a violation of this Chapter even if the person's license or registration has been surrendered or has lapsed by operation of law.

SECTION 83.(b)  G.S. 58‑33‑125 reads as rewritten:

§ 58‑33‑125.  Fees.

(a)        The following table indicates the annual fees that are required for the respective licenses issued, renewed, or cancelled under this Article and Article 21 of this Chapter:

Adjuster................................................................................................. $75.00

Adjuster, crop hail only........................................................................... 20.00

Insurance producer cancellation (paid by insurer).................................. 10.00

Insurance producer appointment, individual........................................... 11.00

Insurance producer appointment, Medicare

supplement and long‑term care, individual............................... 10.00

Agent, overseas military......................................................................... 20.00

Business entity...................................................................................... 100.00

Limited representative............................................................................ 20.00

Limited representative cancellation (paid by insurer)............................ 10.00

Motor vehicle damage appraiser............................................................. 75.00

Surplus lines licensee, corporate........................................................... 100.00

Surplus lines licensee, individual............................................................ 50.00

(b)        Whenever a temporary license is issued under this Article, the fee shall be at the same rate as provided in subsection (a) of this section; and any amounts so paid for a temporary license may be credited against the fee required for an appointment by the sponsoring company.section.

(c)        Any A person who that is not licensed and who that is required by law or administrative rule to secure a license shall, upon application for licensing, pay to the Commissioner a fee of fifty dollars ($50.00). If additional licensing for other lines of authority is requested, a fee of fifty dollars ($50.00) shall be paid to the Commissioner upon application for licensing for each additional kind of insurance.

In addition to the fees prescribed by this subsection, any a person applying for a supplemental license to sell Medicare supplement and long‑term care insurance policies shall pay an additional fee of fifty dollars ($50.00) upon application for licensing for that line of authority.

(d)       The requirement for an examination, prelicensing education, continuing education, or a registration fee does not apply to agents for domestic farmers' mutual assessment fire insurance companies or associations who that solicit and sell only those kinds of insurance specified in G.S. 58‑7‑75(5)d. for those companies or associations.

…

(h)        Fees paid by an insurer on behalf of a person who that is licensed or appointed to represent the insurer are payable to the Commissioner when billed. Billing of insurers for renewal fees must be on an annual basis. The frequency for billing insurers for other licensing and appointment fees is determined by the Commissioner and may be daily, monthly, or quarterly. An electronic payment made through the NAIC or an affiliate of NAIC is considered a payment to the Commissioner.

SECTION 83.(c)  G.S. 58‑33‑132 reads as rewritten:

§ 58‑33‑132.  Qualifications of instructors.

(a)        The Commissioner may adopt rules to establish requisite qualifications for and issuance, renewal, summary suspension, and termination of provider, presenter, and instructor authority for prelicensing and continuing insurance education courses. During any suspension, the instructor shall not engage in any instruction of prelicensing or continuing insurance education courses prior to an administrative review. No person shall provide, present, or instruct any course unless that person has been qualified by and possesses a license from the Commissioner or administrator.

(b)        The Commissioner or administrator may summarily suspend or terminate the authority of an instructor, course provider, or presenter if either of the following applies to the course presentation:

(1)        Is It is determined to be inaccurate; orinaccurate.

(2)        Receives It receives an evaluation of poor from any Department monitor and a majority of attendees responding to Department questionnaires about the presentation.

SECTION 84.  G.S. 95‑174 reads as rewritten:

§ 95‑174.  Definitions.

The following definitions apply in this Article:

(a)(1)   Chemical manufacturer means a Chemical manufacturer. – A manufacturing facility classified in North American Industry Classification System (NAICS) Codes 31 through 33 where chemicals are produced for use or distribution in North Carolina.

(b)(2)   Chemical name means the Chemical name. – The scientific designation of a chemical in accordance with the nomenclature system developed by the International Union of Pure and Applied Chemistry (IUPAC), (IUPAC) or the Chemical Abstracts Service (CAS) rules of nomenclature nomenclature, or a name which will that clearly identify identifies the chemical for the purpose of conducting a hazard evaluation.

(c)(3)   Common name means any Common name. – A designation or identification identification, such as a code name, code number, trade name, brand name name, or generic name name, used to identify a chemical other than by its chemical name.

(d)(4)   Distributor means any Distributor. – A business, other than a chemical manufacturer or importer, which that supplies hazardous chemicals to other distributors or to purchasers.

(e)(5)   Employee means any Employee. – A person who is employed by an employer under normal operating conditions.

(f)(6)    Employer means a Employer. – A person engaged in business who that has employees, including the State and its political subdivisions but excluding an individual whose only employees are domestic workers or casual laborers who are hired to work at the individual's residence.

(g)(7)   Facility means one Facility. – One or more establishments, factories, or buildings located at one contiguous site in North Carolina.

(h)(8)   Fire Chief means Fire Fire Chief. – Fire Chief or Fire Marshall, or Marshal, or, in the absence of a Fire Chief or Fire Marshal, the Emergency Response Coordinator in the absence of a Fire Chief or Fire Marshall for the appropriate local fire department.of the Fire Department.

(i)         Repealed by Session Laws 1987, c. 489, s. 1.

(j)(9)    Fire Department means the Fire Department. – The fire department having jurisdiction over the facility.

(k)(10) Hazardous chemical means any Hazardous chemical. – An element, chemical compound compound, or mixture of elements and/or compounds which elements, chemical compounds, or both that is a physical hazard or health hazard as defined in subsection (c) of the OSHNC Standard or a hazardous substance as defined in standards rules adopted by the Occupational Safety and Health Division of the North Carolina Department of Labor in Title 13, Chapter 7 Chapter 7 of Title 13 of the North Carolina Administrative Code (13 NCAC 7).

(l)(11)  Hazardous Substance List means the Hazardous Substance List. – The list required by G.S. 95‑191.

(m)(12)  Hazardous substance trade secret means any Hazardous substance trade secret. – A formula, plan, pattern, device, process, production information, or compilation of information, which is information that satisfies either of the following requirements:

a.         It meets all of the following criteria:

1.         Is not patented, which is patented.

2.         Is known only to the employer, the employer's licensees, the employer's employees, and certain other individuals, and which is individuals.

3.         Is used or developed for use in the employer's business, and which gives business.

4.         Gives the employer possessing it the opportunity to obtain a competitive advantage over businesses who that do not possess it, or the secrecy of which it.

b.         Its secrecy is certified by an appropriate official of the federal government as necessary for national defense purposes. The

This term includes the chemical name and Chemical Abstracts Service number of a substance shall be considered a trade secret only if the employer can establish that the identity or composition of the substance cannot be readily ascertained without undue expense by analytical techniques, laboratory procedures, or other lawful means available to a competitor.

(n)(13) Label means any written, Label. – Written, printed, or graphic material displayed on or affixed to containers of hazardous chemicals.

(o)(14) Manufacturing facility means a Manufacturing facility. – A facility classified in NAICS Code Codes 31 through 33 which that manufactures or uses a hazardous chemical or chemicals in North Carolina.

(p)        Recodified as subsection (t) at the direction of the Revisor of Statutes.

(q)(15) Nonmanufacturing facility means any Nonmanufacturing facility. – A facility in North Carolina Carolina, other than a facility classified in NAICS Code Codes 31 through 33, the State of North Carolina (and and its local political subdivisions) subdivisions, and volunteer emergency service organizations whose members may might be exposed to chemical hazards during emergency situations.

(r)(16)  OSHNC Standard means the OSHNC Standard. – The current Hazard Communication Standard adopted by the Occupational Safety and Health Division of the North Carolina Department of Labor in Title 13, Chapter 7 Chapter 7 of Title 13 of the North Carolina Administrative Code (13 NCAC 7).

(s)(17)  Storage and Container has the Storage and container. – Have their ordinary meaning however it does but do not include pipes used in the transfer of substances or the fuel tanks of self‑propelled internal combustion vehicles.

(t)(18)  Safety Data Sheets or SDS means chemical Safety data sheets (SDS). – Chemical information sheets adopted by the Occupational Safety and Health Division of the North Carolina Department of Labor in Title 13, Chapter 7 Chapter 7 of Title 13 of the North Carolina Administrative Code (13 NCAC 7).

SECTION 85.(a)  G.S. 100‑5 reads as rewritten:

§ 100‑5.  Duties as to buildings erected or remodeled by State.

Upon request of the Governor and the Board of Public Buildings and Grounds, Department of Administration, the North Carolina Historical Commission shall act in an advisory capacity relative to the artistic character of any building constructed, erected, or remodeled by the State. The term building as used in this section shall include includes structures intended for human occupation, occupation and also bridges, arches, gates, walls, or other permanent structures of any character not intended primarily for purposes of decoration or commemoration.

SECTION 85.(b)  G.S. 143‑244 reads as rewritten:

§ 143‑244.  Location of offices.

The Board of Public Buildings and Grounds Department of Administration shall provide the Commission with offices in the city of Raleigh, North Carolina.

SECTION 85.(c)  Article 29 of Chapter 143 of the General Statutes is repealed.

SECTION 85.(d)  Article 31C of Chapter 143 of the General Statutes is repealed.

SECTION 86.(a)  Subsection (a1) and subdivisions (a2)(1), (a2)(3), (a2)(4), and (a2)(5) of G.S. 116‑15 are recodified as subsection (a) and subdivisions (a2)(3), (a2)(4), (a2)(5), and (a2)(1), respectively, of that section.

SECTION 86.(b)  G.S. 116‑15, as amended by subsection (a) of this section, reads as rewritten:

§ 116‑15.  Licensing of certain nonpublic post‑secondary postsecondary educational institutions.

(a)        Policy. – The General Assembly of North Carolina in recognition of the importance of higher education and of the particular significance attached to the personal credentials accessible through higher education and in consonance with statutory law of this State making unlawful any unfair or deceptive acts or practices in the conduct of any trade or commerce, hereby declares it the policy of this State that all institutions conducting post‑secondary postsecondary degree activity in this State that are not subject to Chapter 115 Chapter 115C or 115D of the General Statutes, nor some other section of Chapter 116 of the General Statutes shall be Statutes or another section of this Chapter are subject to licensure under this section except as the institution or a particular activity of the institution may be exempt from licensure by one or another provision of otherwise provided by this section.

(a1)      Recodified.

(a2)      Definitions. – As used in this section the following terms are defined as set forth in this subsection:The following definitions apply in this section:

(1)        Board. – Board. – The Board of Governors of The University of North Carolina.

(2)        Institution. – Any Institution. – A sole proprietorship, group, partnership, venture, society, company, corporation, school, college, or university that engages in, purports to engage in, or intends to engage in any type of post‑secondary postsecondary degree activity.

(3)        Post‑secondary degree. – Postsecondary degree. – A credential conferring on the its recipient thereof the title of Associate, Bachelor, Master, or Doctor, Associate, Bachelor, Master, or Doctor, or an equivalent title, signifying educational attainment based on (i) study, (ii) a substitute for study in the form of equivalent experience or achievement testing, or (iii) a combination of the foregoing; provided, that post‑secondary degree shall these. The term does not include any an honorary degree or other so‑called unearned degree.

(4)        Post‑secondary degree activity. – Any of the following is post‑secondary degree activity:Postsecondary degree activity. – Any of the following:

a.         Awarding a post‑secondary postsecondary degree.

b.         Conducting or offering study, experience, or testing for an individual or certifying prior successful completion by an individual of study, experience, or testing, testing under the representation that the individual successfully completing the study, experience, or testing will be awarded therefor, awarded, at least in part, a post‑secondary postsecondary degree.

(5)        Publicly registered name. – Publicly registered name. – The name of any sole proprietorship, group, partnership, venture, society, company, corporation, school, college, or an institution that appears as is the subject of any Articles of Incorporation, Articles of Amendment, or a Certificate of Authority to Transact Business or to Conduct Affairs, properly Affairs filed with the Secretary of State of North Carolina and currently in force.

(b)        Required License. – No institution subject to this section shall undertake post‑secondary postsecondary degree activity in this State, whether through itself or through an agent, unless the institution is licensed as provided in under this section to conduct post‑secondary postsecondary degree activity or is exempt from licensure under this section as hereinafter provided.section.

(c)        Exemption from Licensure. – Any Grandfather Exemption. – An institution that has been continuously conducting post‑secondary postsecondary degree activity in this State under the same publicly registered name or series of publicly registered names since July 1, 1972, shall be is exempt from the provisions for licensure under this section upon presentation to the Board of information acceptable to the Board to substantiate such post‑secondary the postsecondary degree activity and public registration of the institution's names. Any An institution that, pursuant to a predecessor statute to this subsection, had presented to the Board proof of activity and registration such and that the Board granted exemption from licensure, shall continue to enjoy such exemption licensure continues to be exempt without further action by the Board.

(d)       Exemption of Institutions Relative to Religious Education. – Notwithstanding any other provision of this section, no institution shall be subject to Religious Education Exemption. – An institution is exempt from licensure under this section with respect to post‑secondary postsecondary degree activity based upon a program of study, equivalent experience, or achievement testing the institutionally planned objective of which that is designed for the attainment of a degree in theology, divinity, or religious education or in any other program of study, equivalent experience, or achievement testing that is designed by the institution primarily for career preparation in a religious vocation. This exemption shall be extended to any institution with respect applies to each program of study, equivalent experience, and or achievement test that the institution demonstrates testing that, as demonstrated by the institution to the satisfaction of the Board should be exempt Board, meets the requirements for exemption under this subsection.

(e)        Post‑secondary Degree Activity within the Armed Forces of the United States. – To the extent that an Military Exemption. – An institution that undertakes post‑secondary postsecondary degree activity on the premises of military posts or reservations located in this State for military personnel stationed on active duty there, or their dependents, the institution shall be is exempt from the licensure requirements of this section.

(f)        Standards for Licensure. – To receive a license to conduct post‑secondary postsecondary degree activity in this State, an institution shall satisfy the Board that the institution has met meets all of the following standards:

(1)        That the The institution is State‑chartered. If State‑chartered or, if chartered by a state or sovereignty other than North Carolina, the institution shall also obtain has a Certificate of Authority to Transact Business or to Conduct Affairs in North Carolina issued by the Secretary of State of North Carolina;Carolina.

(2)        That the The institution has been conducting post‑secondary postsecondary degree activity in a state or sovereignty other than North Carolina during consecutive, regular‑term, academic semesters, exclusive of summer sessions, for at least the two years immediately prior to submitting an application for licensure under this section, or has been conducting with enrolled students, for a like period in this State or some other state or sovereignty, post‑secondary postsecondary educational activity not related to a post‑secondary degree; provided, that an postsecondary degree. An institution that qualifies for an interim permit under rules adopted under subsection (i) of this section may be temporarily relieved of this standard under the conditions set forth in subsection (i), below;this standard.

(3)        That the The substance of each course or program of study, equivalent experience, or achievement test is such as may testing reasonably and adequately achieve achieves the stated objective for which the study, experience, or test testing is offered or is to be certified as successfully completed;completed.

(4)        That the The institution has adequate space, equipment, instructional materials, and personnel available to it to provide education of good quality;quality.

(5)        That the The education, experience, and other qualifications of directors, administrators, supervisors, and instructors are such as may reasonably insure ensure that the students will receive, or will be reliably certified to have received, education consistent with the stated objectives of any course or program of study, equivalent experience, or achievement test testing offered by the institution;institution.

(6)        That the The institution provides students and other interested persons with a catalog or brochure containing information describing the substance, objectives, and duration of the study, equivalent experience, and or achievement testing offered, a schedule of related tuition, fees, and all other necessary charges and expenses, cancellation and refund policies, and such other material facts concerning the institution and the program or course of study, equivalent experience, and or achievement testing as that are reasonably likely to affect the decision of the student to enroll therein, enroll, together with any other disclosures that may be specified by the Board; and that such Board. This information is shall be provided to prospective students prior to enrollment;enrollment.

(7)        That upon Upon satisfactory completion of study, equivalent experience, or achievement test, testing, the student is given appropriate educational credentials by the institution, indicating that the relevant study, equivalent experience, or achievement testing has been satisfactorily completed by the students;student.

(8)        That records Records are maintained by the institution adequate to reflect the application of relevant performance or grading standards to each enrolled student;student.

(9)        That the The institution is maintained and operated in compliance with all pertinent ordinances and laws, including rules and regulations adopted pursuant thereto, laws relative to the safety and health of all persons upon the premises of the institution;institution.

(10)      That the The institution is financially sound and capable of fulfilling its commitments to students and that the institution has provided a bond as provided in subsection (f1) of this section;section.

(11)      That the The institution, through itself or those with whom which it may contract, does not engage in promotion, sales, collection, credit, or other practices of any type which that are false, deceptive, misleading, or unfair;unfair.

(12)      That the The chief executive officer, trustees, directors, owners, administrators, supervisors, staff, instructors, and employees of the institution have no record of unprofessional conduct or incompetence that would reasonably call into question the overall quality of the institution;institution.

(13)      That the The student housing owned, maintained, or approved by the institution, if any, is appropriate, safe, and adequate;adequate.

(14)      That the The institution has a fair and equitable cancellation and refund policy; andpolicy.

(15)      That no No person or agency with whom which the institution contracts has a record of unprofessional conduct or incompetence that would reasonably call into question the overall quality of the institution.

(f1)      Guaranty Bond. –

(1)        A guaranty bond is required for each institution that is licensed. The Board may revoke the license of an institution that fails to maintain a bond pursuant to this subsection.

If the institution has provided a bond pursuant to G.S. 115D‑95, the Board may waive the bond requirement under this subsection. The Board may shall not waive the bond requirement under this subsection if the applicant has provided an alternative to a guaranty bond under G.S. 115D‑95(c).

(2)        When an application is made for a license or license renewal, the applicant shall file a guaranty bond with the clerk of the superior court of the county in which the institution will be located. The bond shall be in favor of the students. The bond shall be executed by the applicant as principal and by a bonding company authorized to do business in this State. The bond shall be conditioned to provide indemnification to any student, or his the student's parent or guardian, who has suffered a loss of tuition or any fees by reason of the failure of the institution to offer or complete student instruction, academic services, or other goods and services related to course enrollment for any reason, including the suspension, revocation, or nonrenewal of an institution's license, bankruptcy, foreclosure, or the institution ceasing to operate.

The bond shall be in an amount determined by the Board to be adequate to provide indemnification to any student, or his the student's parent or guardian, under the terms of the bond. The bond amount for an institution shall be at least equal to the maximum amount of prepaid tuition held at any time during the last fiscal year by the institution. The bond amount shall also be at least ten thousand dollars ($10,000).

Each application for a license shall include a letter signed by an authorized representative of the institution showing in detail the calculations made and the method of computing the amount of the bond, bond pursuant to this subdivision and the rules of the Board. If the Board finds that the calculations made and the method of computing the amount of the bond are inaccurate or that the amount of the bond is otherwise inadequate to provide indemnification under the terms of the bond, the Board may require the applicant to provide an additional bond.

The bond shall remain in force and effect until cancelled by the guarantor. The guarantor may cancel the bond upon 30 days days' notice to the Board. Cancellation of the bond shall does not affect any a liability incurred or accrued prior to the termination of the notice period.

(g)        Review of Licensure. – Any institution that acquires licensure under this section shall be subject to review by the Board to determine that the institution continues to meet the standard for licensure of subsection (f), above. Review of such licensure by the Board shall always occur if the institution is legally reconstituted, or if ownership of a preponderance of all the assets of the institution changes pursuant to a single transaction or agreement or a recognizable sequence of transactions or agreements, or if two years has elapsed since licensure of the institution was granted by the Board.

Notwithstanding the foregoing paragraph, if an institution has continued to be licensed under this section and continuously conducted post‑secondary degree activity in this State under the same publicly registered name or series of publicly registered names since July 1, 1979, or for six consecutive years, whichever is the shorter period, and is accredited by an accrediting commission recognized by the Council on Post‑Secondary Accreditation, such institution shall be subject to licensure review by the Board every six years to determine that the institution continues to meet the standard for licensure of subsection (f), above. However, should such an institution cease to maintain the specified accreditation, become legally reconstituted, have ownership of a preponderance of all its assets transferred pursuant to a single transaction or agreement or a recognizable sequence of transactions or agreements to a person or organization not licensed under this section, or fail to meet the standard for licensure of subsection (f), above, then the institution shall be subject to licensure review by the Board every two years until a license to conduct post‑secondary degree activity and the requisite accreditation have been restored for six consecutive years.The Board shall review an institution licensed under this section to determine if the institution continues to meet the standards in subsection (f) of this section when any of the following occurs:

(1)        Two years have elapsed since licensure of the institution, unless subdivision (2) of this subsection applies.

(2)        Six years have elapsed since licensure of the institution and, throughout this period, the institution has maintained its license, has continuously conducted postsecondary degree activity in this State under the same publicly registered name or series of publicly registered names, and has been accredited by an accrediting commission recognized by the Council for Higher Education Accreditation. An institution reviewed under this subdivision that subsequently loses its accreditation or experiences a change that requires a review under subdivision (3) or (4) of this subsection becomes subject to review on a two‑year basis until the institution again qualifies for a six‑year review under this subdivision.

(3)        The institution is legally reconstituted.

(4)        Ownership of a preponderance of the assets of the institution changes pursuant to a single transaction or agreement or a recognizable sequence of transactions or agreements.

(h)        Denial and Revocation of Licensure. – Any An institution seeking licensure under the provisions of this section that fails to meet the licensure requirements of this section shall be denied a license to conduct post‑secondary postsecondary degree activity in this State. Any A licensed institution holding a license to conduct post‑secondary degree activity in this State that is found by the Board of Governors not to finds does not satisfy the licensure requirements of this section shall have its license to conduct post‑secondary degree activity in this State revoked by the Board; provided, that the Board of Governors may continue in force the license of an institution deemed by the Board Board, unless the Board considers the institution to be making substantial and expeditious progress toward remedying its licensure deficiencies.deficiencies and allows the license to remain in effect.

(i)         Regulatory Authority in the Board. – Authority. – The Board shall have authority to establish such rules, regulations, and procedures as it may deem necessary or appropriate may adopt rules to effect the provisions of this section. Such rules, regulations, and procedures may include provision for the granting of These rules may grant an interim permit to conduct post‑secondary postsecondary degree activity in this State to an institution seeking licensure but lacking the two‑year period of activity prescribed by subsection (f)(2), above.subdivision (f)(2) of this section.

(j)         Enforcement Authority in the Attorney General. – Attorney General Notification. – The Board shall call to the attention of notify the Attorney General, for such action as he may deem appropriate, any institution failing General if an institution fails to comply with the requirements of this section.

(k)        Severability. – The provisions of this section are severable, and, if any provision of this section is declared unconstitutional or invalid by the courts, such the declaration shall does not affect the validity of the section as a whole or any provision other than the provision so declared to be unconstitutional or invalid.

SECTION 86.(c)  G.S. 116‑209.16A reads as rewritten:

§ 116‑209.16A.  Information on career and major options.

(a)        Know Before You Go. – The Authority shall provide information on a website, under a section entitled Know Before You Go, to students and parents to assist in selection of major and career options as provided in this section. The information shall be updated annually.

(b)        Career Options. – The Authority shall, as data is available, provide information on projected employment needs in the labor economy and associated salary ranges for those areas of employment, college majors which that may fulfill those needs, and institutions of higher education that may provide those majors. The Authority may use existing sources of public information, such as the employment projections produced by the federal Department of Labor, Bureau of Labor Statistics, to develop this information.

…

(d)       Public and Private Institutions of Higher Education. – For the purposes of this section, public institutions of higher education shall include the constituent institutions of The University of North Carolina and the community colleges under the jurisdiction of the State Board of Community Colleges Colleges, and private institutions of higher education shall include postsecondary institutions that award postsecondary degrees, as defined in G.S. 116‑15(a2)(1).G.S. 116‑15(a2).

SECTION 86.(d)  Subdivisions (1) and (3) of G.S. 143‑552 are recodified as subdivisions (3) and (5), respectively, of that section.

SECTION 86.(e)  G.S. 143‑552, as amended by subsection (d) of this section, reads as rewritten:

§ 143‑552.  Definitions.

As used in this Part:The following definitions apply in this Article:

(1)        Community college. – Defined in G.S. 115D‑2.

(2)        Employee means any person Employee. – An individual who is appointed to or hired and employed by an employing entity under this Part and whose salary is paid paid, in whole or in part part, by State funds.

(3)        Employing entity means and includes:Employing entity. – Any of the following:

a.         Any A State entity enumerated in G.S. 143B‑3 of the Executive Organization Act of 1973;entity.

b.         Any city or county A local board of education under Chapter 115 of the General Statutes; oreducation.

c.         Any The board of trustees of a community college under Chapter 115D of the General Statutes.college.

(4)        Local board of education. – Defined in G.S. 115C‑5(5).

(5)        Net disposable earnings means the Net disposable earnings. – The salary paid to an employee by an employing entity after deduction of withholdings for taxes, social security, State retirement retirement, or any other sum obligated by law to be withheld.

(6)        State entity. – An entity described in G.S. 143B‑3.

SECTION 86.(f)  G.S. 143‑553 reads as rewritten:

§ 143‑553.  Conditional continuing employment; notification among employing entities; repayment election.

(a)        All persons employed by an employing entity as defined by this Part who owe An employee who owes money to the State and whose salaries are paid in whole or in part by State funds must make full restitution of the amount owed as a condition of continuing employment; provided, however, that no employing entity shall terminate for failure to make full restitution the employment of such an employee who owes employment unless the money is owed to the University of North Carolina Health Care System or to East Carolina University's Division of Health Sciences for health care services.

(b)        Whenever a representative of any an employing entity as defined by this Part has knowledge that an employee owes money to the State and is delinquent in satisfying this obligation, the representative shall notify the employing entity. Upon receipt of notification an employing entity shall terminate the employee's employment if after written notice of his right to do so he if, after written notice, the employee does not repay the money within a reasonable period of time; provided, however, that where time. If, however, there is a genuine dispute as to whether the money is owed or how much is owed, or there is an unresolved issue concerning insurance coverage, the employee shall not be dismissed as long as he the employee is pursuing administrative or judicial remedies to have the dispute or the issue resolved.

(c)        An employee of any employing entity who has elected in writing to allow not less than ten percent (10%) of his the employee's net disposable earnings to be periodically withheld for application towards a debt to the State shall be deemed is considered to be repaying the money within a reasonable period of time and shall not have his employment be terminated so long as he is consenting to repayment according to such terms. Furthermore, the employing entity shall allow the employee who for from employment as long as either of the following applies:

(1)        The employee is making payments in accordance with the election.

(2)        For some extraordinary reason reason, the employee is incapable of repaying the obligation to the State according to the preceding terms to continue employment as long as he of the election but is attempting repayment in good faith under his the employee's present financial circumstances, but shall promptly terminate the employee's employment if he ceases to make payments or discontinues a good faith effort to make repayment.circumstances.

SECTION 86.(g)  G.S. 143‑554 reads as rewritten:

§ 143‑554.  Right of employee appeal.

(a)        Any An employee or former employee of an employing entity within the meaning of G.S. 143‑552(1)a of a State entity whose employment is terminated pursuant to the provisions of this Part shall be given the opportunity to appeal the employment termination to the State Human Resources Commission according to the normal appeal and hearing procedures provided by Chapter 126 and the State Human Resources Commission rules adopted pursuant to the authority of that Chapter; however, nothing herein shall be construed to give the right to termination reviews to anyone exempt from that right under G.S. 126‑5.and who is subject to Article 8 of Chapter 126 of the General Statutes may appeal the termination as if it were a final agency decision issued under G.S. 126‑34.01.

(b)        Before the employment of an employee of a local board of education within the meaning of G.S. 143‑552(1)b who is either a superintendent, supervisor, principal, teacher teacher, or other professional person is terminated pursuant to this Part, the local board of education shall comply with the provisions of G.S. 115‑142. Part 3 of Article 22 of Chapter 115C of the General Statutes. If the termination of an employee within the meaning of G.S. 143‑552(1)b is other than one whose termination is made of a local board of education is not reviewable pursuant to G.S. 115‑142, he Part 3 of Article 22 of Chapter 115C of the General Statutes, the employee shall be given the opportunity for a hearing before the local board of education prior to the termination of his employment.

(c)        Before the employment of an employee of a board of trustees of a community college within the meaning of G.S. 143‑552(1)c is finally terminated pursuant to this Part, he the employee shall be given the opportunity for a hearing before the board of trustees.

SECTION 86.(h)  G.S. 143‑555 reads as rewritten:

§ 143‑555.  Definitions.

As used in this Part:The following definitions apply in this Part:

(1)        Appointing authority means the Appointing authority. – The Governor, Chief Justice of the Supreme Court, Lieutenant Governor, Speaker of the House, President pro tempore Pro Tempore of the Senate, members of the Council of State, all heads of the executive departments of State government, the Board of Governors of The University of North Carolina, and any other State person or group of State persons authorized by law to appoint to a public office.

(2)        Employing entity means and includes:

a.         Any State entity enumerated in G.S. 143B‑3 of the Executive Organization Act of 1973;

b.         Any city or county board of education under Chapter 115 of the General Statutes; or

c.         Any board of trustees of a community college under Chapter 115D of the General Statutes.

(3)        Public office means appointive Public office. – Appointive membership on any a State Commission, council, committee, board, including occupational licensing boards as defined in G.S. 93B‑1, board of trustees, including boards of constituent institutions of The University of North Carolina and boards of community colleges under Chapter 115D of the General Statutes, and any other State agency created by law; provided that public office law. The term does not include an office for which a regular salary is paid to the holder as an employee of the State or of one of its departments, agencies, or institutions.

(4)        Public official means any person who is a member of any public office as defined by this Part.Public official. – A person who holds a public office.

SECTION 86.(i)  G.S. 143‑556 reads as rewritten:

§ 143‑556.  Notification of the appointing authority; investigation.

Whenever a representative of an employing entity as defined by this Part has knowledge that a public official owes money to the State and is delinquent in satisfying this obligation, the representative shall notify the appointing authority who appointed the public official in question. Upon receipt of notification the appointing authority shall investigate the circumstances of the claim of money owed to the State for purposes of determining if a debt is owed and its amount.

SECTION 86.(j)  G.S. 143‑558 is repealed.

SECTION 86.(k)  G.S. 143‑559 reads as rewritten:

§ 143‑559.  Notification to the Legislative Ethics Committee; investigation.

Whenever a representative of any an employing entity as defined by this Part has knowledge that a legislator owes money to the State and is delinquent in satisfying this obligation, this information shall be reported to the Legislative Ethics Committee established pursuant to Chapter 120, Article 14 of Chapter 120 of the General Statutes for disposition.

SECTION 86.(l)  G.S. 153A‑234 reads as rewritten:

§ 153A‑234.  Fire marshal.

(a)        A county may appoint a fire marshal and employ persons as his the fire marshal's assistants. A county may also impose any duty that might be imposed on a fire marshal on any other officer or employee of the county. The board of commissioners shall set the duties of the fire marshal, which marshal. These duties may include but are not limited to:to the following:

…

(5)        Making fire prevention inspections, including the periodic inspections and reports of school buildings required by Chapter 115 G.S. 115C‑525 and the inspections of child care facilities required by Chapter 110. G.S. 110‑91(5). A fire marshal shall not make electrical inspections unless he is qualified to do so under G.S. 153A‑351.

(b)        The fire marshal, or the fire marshal's designee, shall obtain a criminal history record check for an applicant over the age of 18 prior to offering that applicant a paid or volunteer position with the fire department. The criminal history record check shall be conducted and evaluated as provided in G.S. 143B‑1209.23 [G.S. 143B‑1209.24], G.S. 143B‑1209.24, or, if an applicant has been a resident of North Carolina for over five years and reports no charges or convictions on the application, the record check requirement of this section may be conducted through the county clerk of court or a third‑party vendor.

SECTION 86.(m)  G.S. 159‑7 reads as rewritten:

§ 159‑7.  Short title; definitions; local acts superseded.

(a)        This Article may be cited as The Local Government Budget and Fiscal Control Act.

(b)        The words and phrases defined in this section have the meanings indicated when used in this Article, unless the context clearly requires another meaning.The following definitions apply in this Article:

(1)        Budget is a Budget. – A proposed plan for raising and spending money for specified programs, functions, activities activities, or objectives during a fiscal year.

(2)        Budget ordinance is the Budget ordinance. – An ordinance that levies taxes and appropriates revenues for specified purposes, functions, activities, or objectives during a fiscal year.

(3)        Budget year is the Budget year. – The fiscal year for which a budget is proposed or a budget ordinance is adopted.

(4)        Debt service is the Debt service. – The sum of money required to pay installments of principal and interest on bonds, notes, and other evidences of debt accruing within a fiscal year, to maintain sinking funds, and to pay installments on debt instruments issued pursuant to Article 7A of this Chapter or Chapter 159G of the General Statutes and accruing within a fiscal year.

(5), (6) Repealed by Session Laws 1975, c. 514, s. 2.

(7)        Fiscal year is the Fiscal year. – The annual period for the compilation of fiscal operations, as prescribed in G.S. 159‑8(b).

(8)        Fund is a Fund. – A fiscal and accounting entity with a self‑balancing set of accounts recording cash and other resources, together with all related liabilities and residual equities or balances, and changes therein, for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

(9)        Repealed by Session Laws 1975, c. 514, s. 2.

(10)      Public authority is a Public authority. – A municipal corporation (other corporation, other than a unit of local government) government, that is not subject to the State Budget Act (Chapter 143C of the General Statutes) Chapter 143C (State Budget Act) of the General Statutes or a local governmental authority, board, commission, council, or agency that (i) is not a municipal corporation, (ii) is not subject to the State Budget Act, and (iii) operates on an area, regional, or multi‑unit basis, and the budgeting and accounting systems of which are not fully a part of the budgeting and accounting systems of a unit of local government.

(11)      Repealed by Session Laws 1975, c. 514, s. 2.

(12)      Sinking fund means a Sinking fund. – A fund held for the retirement of term bonds.

(13)      Special district is a Special district. – A unit of local government (other government, other than a county, city, town, or incorporated village) village, that is created for the performance of limited governmental functions or for the operation of a particular utility or public service enterprises.

(14)      Taxes do not Taxes. – Does not include special assessments.

(15)      Unit, unit of local government, or local government is a Unit, unit of local government, or local government. – A municipal corporation that is not subject to the State Budget Act (Chapter 143C of the General Statutes) Chapter 143C (State Budget Act) of the General Statutes and that has the power to levy taxes, including a consolidated city‑county, as defined by G.S. 160B‑2(1), G.S. 160B‑2, and all boards, agencies, commissions, authorities, and institutions thereof that are not municipal corporations.

(16)      Vending facilities has the same meaning as it does in G.S. 111‑42(d), but Vending facilities. – Defined in G.S. 111‑42. The term also means any mechanical or electronic device dispensing items or something of value or entertainment or services for a fee, regardless of the method of activation, and regardless of the means of payment, whether by coin, currency, tokens, or other means.

(c)        It is the intent of the General Assembly by enactment of this Article to prescribe for local governments and public authorities a uniform system of budget adoption and administration and fiscal control. To this end and except as otherwise provided in this Article, all provisions of general laws, city charters, and local acts in effect as of July 1, 1973 1973, and in conflict with the provisions of Part 1 or Part 3 of this Article are repealed. No general law, city charter, or local act enacted or taking effect after July 1, 1973, may shall be construed to modify, amend, or repeal any portion of Part 1 or Part 3 of this Article unless it expressly so provides by specific reference to the appropriate section.

(d)       Except as expressly provided herein, otherwise in this Article, this Article does not apply to local school administrative units. The adoption and administration of budgets for the public school system and the management of the fiscal affairs of local school administrative units are governed by the School Budget and Fiscal Control Act, Chapter 115, Article 9. However, this Article 31 (The School Budget and Fiscal Control Act) of Chapter 115C of the General Statutes. This Article and the School Budget and Fiscal Control Act shall be construed together to the end that the administration of the fiscal affairs of counties and local school administrative units may be most effectively and efficiently administered.

….

SECTION 87.  G.S. 120‑123 reads as rewritten:

§ 120‑123.  Service by members of the General Assembly on certain boards and commissions.

No member of the General Assembly may shall serve on any of the following boards or commissions:

…

(1b)      The Rules Review Commission Commission, as established by G.S. 143B‑30.1.

…

(8a)      The Genetic Engineering Review Board, as created by G.S. 106‑769.

…

(15)      The North Carolina Seafood Marine Industrial Park Authority, as established by G.S. 113‑315.25.

…

(18)      The North Carolina Board of Science and Technology, Science, Technology, and Innovation, as established by G.S. 143B‑426.30.G.S. 143B‑472.80.

…

(25a)    The North Carolina Global TransPark Authority Authority, as established under by G.S. 63A‑3.

…

(28)      The Social Services Commission, as established by G.S. 143B‑154.G.S. 143B‑153.

(29)      The North Carolina State Commission of Indian Affairs, as established by G.S. 143B‑407.G.S. 143B‑404.

(30)      The Wildlife Resources Commission, as established by G.S. 143‑240.

(31)      The North Carolina Council for Women, Women and Youth Involvement, as established by G.S. 143B‑393.

…

(32)      The Board of Trustees of the North Carolina Museum of Art, as established by G.S. 140‑5.13.

(33)      The North Carolina Sheriffs' Education and Training Standards Commission, as established by G.S. 17E.G.S. 17E‑3.

(33a)    Repealed by Session Laws 1987, c. 738, s. 41(d).

(34)      The Board of Trustees of the North Carolina Public Employee Deferred Compensation Plan, as established authorized by G.S. 143B‑426.24.

(34a)    Repealed by Session Laws 1989 (Regular Session, 1990), c. 1024, s. 23(b).

(34b)    The North Carolina Housing Partnership, as established by G.S. 122E‑4.

(35)      The Board of Trustees of the State Health Plan for Teachers and State Employees, as established by G.S. 135‑39.G.S. 135‑48.20.

(36)      Repealed by Session Laws 2004‑199, s. 27(b), effective August 17, 2004.

(37)      The State Board of Chiropractic Examiners Examiners, as established by G.S. 90‑139.

…

(40)      The Alarm System Security Systems Licensing Board, as established by G.S. 74D‑4.

(41)      Repealed by Session Laws 1985 (Regular Session, 1986), c. 1011, s. 2.1(c).

(42)      The Crime Victims Compensation Commission, as established by G.S. 15B‑3.

(43)      The North Carolina Council on Ocean Affairs, as established by G.S. 143B‑390.10.

(44)      The Child Care Commission, as established by G.S. 143B‑168.3.Article 7 of Chapter 110 of the General Statutes.

(45)      Repealed by Session Laws 1995, c. 517, s. 39, effective October 1, 1995.

(45a)    Repealed by Session Laws 2011‑266, s. 1.38(c), effective July 1, 2015.

(46)      The Board of Directors of the North Carolina Arboretum, as established in G.S. 116‑240.by G.S. 116‑243.

(47)      The North Carolina Agricultural Finance Authority, as established by G.S. 122D‑4.

(48)      Reserved for future codification purposes.

(49)      The Northeastern North Carolina Farmers Market Commission as established by G.S. 106‑720.

(50)      The Southeastern North Carolina Farmers Market Commission as established by G.S. 106‑727.

(50a)    The North Carolina Board of Dietetics/Nutrition Dietetics/Nutrition, as created established by Article 25 of Chapter 90 of the General Statutes.

(51)      The State Building Commission, as established by G.S. 143‑135.25.

(52)      The Commission on School Facility Needs, established by G.S. 115C‑489.4.

(53)      The North Carolina Marine Fisheries Commission Commission, as established by G.S. 143B‑289.51.

…

(58)      The Appraisal Board created in Board, as established by G.S. 93E‑1‑5.

(59)      Repealed by Session Laws 1997‑286, s. 7.

(59a)    The North Carolina Principal Fellows and TP3 Commission Commission, as established by G.S. 116‑74.41.

(60)      Repealed by Session Laws 1997‑443, s. 8.26b.

(61)      The State Health Plan Purchasing Alliance Board, as established by G.S. 143‑625.

…

(64a)    The North Carolina Educational Capital Facilities Finance Agency, as established by G.S. 115E‑4.G.S. 159D‑38.

…

(68)      The State Human Resources Commission.Commission, as established by G.S. 126‑2.

(69)      The North Carolina Partnership for Children, Inc., as established pursuant to Part 10B of Article 3 of Chapter 143B of the General Statutes, and all local partnerships established pursuant to this that Part.

(70)      The Tobacco Trust Fund Commission Commission, as established in by Article 75 of Chapter 143 of the General Statutes.

(71)      The Health and Wellness Trust Fund Commission established in Article 21 of Chapter 130A of the General Statutes.

…

(74)      The North Carolina Respiratory Care Board Board, as created established by Article 37 38 of Chapter 90 of the General Statutes.

(75)      The North Carolina Turnpike Authority.Authority, as established by G.S. 136‑89.182.

…

(78)      The North Carolina State Lottery Commission, as established in by Chapter 18C of the General Statutes.

(79)      Expired pursuant to 2010‑31, s. 13.5(e), as amended by 2013‑360, s. 14.2, effective July 1, 2013.

(80)      The Rural Infrastructure Authority, as created established by G.S. 143B‑472.128.

(81)      Repealed by Session Laws 2016‑94, s. 7.14(d), effective July 1, 2016.

(82)      The Domestic Violence Commission, as established in by Part 10C of Article 9 of Chapter 143B of the General Statutes.

(83)      The Governor's Crime Commission of the Department of Public Safety, as established in by G.S. 143B‑1100.

SECTION 88.  Article 17 of Chapter 143 of the General Statutes is repealed.

SECTION 89.  Article 75 of Chapter 143 of the General Statutes reads as rewritten:

Article 75.

Tobacco Trust Fund

§ 143‑715.  Policy; purpose.

The General Assembly finds:finds the following:

…

(2)        Tobacco producers, tobacco former allotment holders, and persons engaged in tobacco‑related businesses are entitled to indemnification for the adverse economic effects in the State resulting from the Master Settlement Agreement, tobacco producers, former allotment holders, and persons engaged in tobacco‑related businesses are entitled to compensation for the economic losses resulting from lost quota in this State, and tobacco producers are entitled to compensation for the decline in value of tobacco‑related personal property assets and declining market conditions in this State resulting from the Master Settlement Agreement, to the extent that funds are available in the Tobacco Trust Fund to address those purposes.

(3)        Even in the absence of the Master Settlement Agreement, the tobacco‑related segment of the State's economy is experiencing severe economic hardship as it confronts a national decline in the use of, and demand for, tobacco products, which decline is expected to continue. At present, the tobacco producers, tobacco former allotment holders, and persons engaged in tobacco‑related businesses are facing an economic crisis that threatens their health and survival. Therefore, in addition to indemnification and compensation for losses in this State resulting from the Master Settlement Agreement, the public interest will be served by the funding of qualified agricultural programs that support, foster, encourage, and facilitate a strong agricultural economy in North Carolina. To the extent that funds are available in the Tobacco Trust Fund, expenditure of those funds to finance qualified agricultural programs is in the public interest.

…

§ 143‑716.  Definitions.

The following definitions apply in this Article:

(1)        Commission. – The Tobacco Trust Fund Commission.

(2)        Compensatory programs. – Programs developed by the Commission to identify, locate, compensate, and indemnify tobacco producers, former allotment holders, and persons engaged in tobacco‑related businesses who have suffered actual economic losses in this State due to lost quota, the decline in value of tobacco‑related personal property assets, and declining market conditions resulting from the Master Settlement Agreement or declines in the tobacco‑related segment of the State's economy.

(3)        Fund. – The Tobacco Trust Fund.

(4)        Master Settlement Agreement. – The settlement agreement between certain tobacco manufacturers and the states, as incorporated in the consent decree entered in the action of State of North Carolina v. Philip Morris, Incorporated, et al., 98 CVS 14377, in the General Court of Justice, Superior Court Division, Wake County, North Carolina.

(5)        National Tobacco Grower Settlement Trust. – The trust established by tobacco companies to provide payments to tobacco growers and allotment holders in 14 states for the purposes of ameliorating potential adverse economic consequences of likely reduction in demand, sales, and prices for tobacco as an agricultural product as a result of the Master Settlement Agreement.

(6)        Qualified agricultural programs. – Programs developed by the Commission to support and foster the vitality and solvency of the tobacco‑related segment of the State's agricultural economy, particularly the segment adversely affected by the Master Settlement Agreement, with the objective of alleviating and avoiding unemployment, preserving, preserving and increasing local tax bases, and encouraging the economic stability of participants in the State's agricultural economy. Examples of qualified agricultural programs this term include programs to finance the modernization of farming equipment, programs to finance the conversion of existing equipment to conform to environmental and other regulatory requirements, and programs to finance the conversion or replacement of equipment in order to cultivate crops that are more profitable than are currently being cultivated.cultivated, and programs to establish farmers' markets serving communities where tobacco is or was formerly grown.

(7)        Tobacco product component business. – An individual, partnership, limited liability company, corporation, or other commercial entity that engages in the manufacture of component products for use in the manufacture of tobacco products.

(8)        Tobacco‑related business. – An individual, partnership, limited liability company, corporation, or other commercial entity that provides products or services used directly in (i) the production of tobacco, tobacco or (ii) support of the business of the production or sale of tobacco. The term does not include the manufacturing of tobacco products or the sale of tobacco products at wholesale or retail.

(9)        Tobacco‑related employment. – Employment in a tobacco‑related business, or in the manufacturing of tobacco products or the component products used in the manufacture of tobacco products. The term does not include persons employed in the sale of tobacco products at wholesale or retail.

§ 143‑717.  Commission.

(a)        Creation. – The Tobacco Trust Fund Commission is created. The Commission shall be administratively located within the Department of Agriculture and Consumer Services but shall exercise its powers independently of the Commissioner of Agriculture and the Department. All administrative expenses of the Commission shall be paid from the Fund.

(b)        Membership. – The Commission shall consist of 18 members. The Commission shall be appointed as follows: six members by the Governor, six members by the President Pro Tempore of the Senate, and six members by the Speaker of the House of Representatives. The members shall be appointed as follows:

(1)        The Governor shall make the following appointments:

a.         A flue‑cured tobacco farmer.Two tobacco farmers.

b.         A flue‑cured tobacco farmer.Three at‑large appointees.

c.         A person in or displaced from tobacco‑related employment.

d.         An at‑large appointee.

e.         An at‑large appointee.

f.          An at‑large appointee.

(2)        The President Pro Tempore of the Senate shall make the following appointments:

a.         A flue‑cured tobacco farmer.Three tobacco farmers.

b.         A flue‑cured tobacco farmer.Three at‑large appointees.

c.         A burley tobacco farmer.

d.         An at‑large appointee.

e.         An at‑large appointee.

f.          An at‑large appointee.

(3)        The Speaker of the House of Representatives shall make the following appointments:

a.         A flue‑cured tobacco farmer.Two tobacco farmers.

b.         A former flue‑cured allotment holder who is not also a flue‑cured tobacco farmer.

c.         A burley tobacco farmer.Three at‑large appointees.

d.         An at‑large appointee.

e.         An at‑large appointee.

f.          An at‑large appointee.

It is the intent of the General Assembly that the appointing authorities, in appointing members, authorities shall appoint members who represent the geographic, political, gender, and racial diversity of the State. It is the intent of the General Assembly that at least one‑half of the members of the Commission be tobacco farmers.

Except as provided for the initial members under subsection (c) of this section, members Members shall serve four‑year terms beginning July 1. No member may shall serve more than two full consecutive terms. Members may continue to serve beyond their terms until their successors are duly appointed, but any a holdover shall not affect the expiration date of the succeeding term. Vacancies shall be filled by the designated appointing authority for the remainder of the unexpired term. A member may be removed from office for cause by the authority that appointed that member.

(c)        Initial Membership; Staggering. – To provide for a staggered membership, the members initially appointed to the Commission shall be appointed to staggered terms. Of the initial appointments to the Commission, the members initially appointed pursuant to sub‑subdivisions (b)(1)a., (1)b., (2)d., and (3)d. of this section shall serve one‑year terms ending on June 30, 2001. The members initially appointed pursuant to sub‑subdivisions (b)(2)c., (2)e., (3)a., and (3)e. shall serve two‑year terms ending on June 30, 2002. The members initially appointed pursuant to sub‑subdivisions (b)(1)c., (1)d., (1)e., (2)b., and (3)c. of this section shall serve three‑year terms ending June 30, 2003. The remaining members initially appointed pursuant to subsection (b) of this section shall serve four‑year terms ending June 30, 2004.

(d)       Officers. – The Commission shall elect from its membership a chair, vice‑chair, and other officers as necessary for two‑year terms beginning July 1 at the first meeting of the Commission held on or after July 1 of every even‑numbered year. The vice‑chair may act for the chair in the absence of the chair chair, as authorized by the Commission.

(e)        Frequency of Meetings. – The Commission shall meet at least quarterly each year and may hold special meetings at the call of the chair or a majority of members. The Governor shall call the initial meeting of the Commission.

(f)        Quorum; Majority. – Ten members shall constitute constitute a quorum of the Commission. The Commission may act upon a majority vote of the members of the Commission on matters involving the disbursement of funds and personnel matters properly before the Commission. On all other matters, the Commission may act by a majority vote of the members of the Commission present at a meeting at which a quorum is present.

(g)        Per Diem and Expenses. – The members of the Commission shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5. Per diem, subsistence, and travel expenses of the members shall be paid from the Fund.

(h)        Conflict of Interest. – Members of the Commission shall comply with the provisions of G.S. 14‑234 prohibiting conflicts of interest, except that G.S. 14‑234(a) shall does not apply to an application for or the receipt of a grant or other financial assistance award by a member of the Commission from the Fund created under this Article, or an entity in which a member of the Commission has an interest, if both of the following conditions are met:

(1)        A The member does not vote on, participate in the deliberation of, or otherwise attempt through his or her official capacity to influence the vote on, on a grant or other financial assistance award by the Commission to the member.

(2)        The Commissioner of Agriculture determines that any an award to a the member is in accordance with general criteria adopted by the Commission for the distribution of funds from the Fund.

(i)         Limit on Operating and Administrative Expenses. – All administrative expenses of the Commission shall be paid from the Fund. No more than four hundred eighty‑five thousand dollars ($485,000) may shall be used each fiscal year for administrative and operating expenses of the Commission and its staff, provided that staff. However, the Commission may annually adjust the administrative expense cap imposed by this subsection, so long as that any the cap increase does not exceed the amount necessary to provide for statewide salary and benefit adjustments enacted by the General Assembly.

…

§ 143‑719.  Tobacco Trust Fund; creation; investment; priority use.investment.

(a)        Fund Established. – The Tobacco Trust Fund is established in the Office of the State Treasurer. The Fund shall be used for the purposes provided in this Article.

(b)        Fund Earnings, Assets, and Balances. – The State Treasurer shall hold the Fund separate and apart from all other moneys, funds, and accounts. The State Treasurer is the custodian of the Fund and shall invest the assets in accordance with G.S. 147‑69.2 and G.S. 147‑69.3. Investment earnings credited to the Fund become part of the Fund. Any balance remaining in the Fund at the end of any a fiscal year is carried forward in the Fund for the next succeeding fiscal year. Payments from the Fund shall be made on the warrant of by the chair of the Commission, pursuant to the directives of the Commission.

(c)        Priority Use of Funds. – As soon as practicable after the beginning of each fiscal year, the State Treasurer must certify in writing to the chair of the Commission the estimated amount of debt service anticipated to be paid during the fiscal year for special indebtedness authorized by the State Capital Facilities Act of 2004, Part 1 of S.L. 2004‑179. The chair of the Commission must issue a warrant from the Fund to the General Fund for the lesser of (i) one‑half of the amount certified by the Treasurer and (ii) the applicable percentage of the Fund's receipts for the current fiscal year. For fiscal years beginning before July 1, 2007, the applicable percentage is thirty percent (30%). For fiscal years beginning on or after July 1, 2007, the applicable percentage is sixty‑five percent (65%).

§ 143‑720.  Benefits and administration of Fund for compensatory programs.

(a)        Funds held in the Fund may be expended on compensatory programs as provided in this section.

(b)        The Fund may provide direct and indirect financial assistance, in accordance with criteria established by the Commission and to the extent allowed by law, to accomplish the following:

(1)        Indemnify tobacco producers, former allotment holders, and persons engaged in tobacco‑related businesses from the adverse economic effects in this State of the Master Settlement Agreement.

(2)        Compensate tobacco producers, former allotment holders, and persons engaged in tobacco‑related businesses for economic loss resulting from lost quota and compensate tobacco producers for the decline in value of tobacco‑related personal property assets and declining market conditions resulting from the Master Settlement Agreement in this State.

(3)        Compensate individuals displaced from tobacco‑related employment in this State as a result of the adverse economic effects of the Master Settlement Agreement.

(4)        Compensate tobacco product component businesses that are (i) adversely impacted by the Master Settlement Agreement and that (ii) need financial assistance to retool machinery or equipment or to retrain workers, in order to convert to the production of new products or nontobacco use of existing products, or to effect other similar changes.

(c)        Only tobacco producers, persons engaged in tobacco‑related businesses, individuals displaced from tobacco‑related employment, and tobacco product component businesses in this State, and former holders of North Carolina tobacco allotments allotments, are eligible to apply for and receive assistance pursuant to subsection (b) of this section. Direct payments made to tobacco producers, tobacco allotment holders, and persons engaged in tobacco‑related businesses shall be based on losses resulting in 1998 and thereafter. Lost quota shall be a primary determinative factor in calculating the amount of compensable economic loss for tobacco producers, former allotment holders, and persons engaged in tobacco‑related businesses.

(d)       The Commission shall determine the priority of awards among the categories in subsection (b) of this section and within each of those categories.

(e)        Financial assistance awards shall be for no more than one year at a time. An award may be renewed annually, without limitation.

(f)        The Commission may require applicants to provide copies of documents necessary to determine compensable economic loss.

(g)        In no event shall the amount paid to a tobacco producer or allotment holder pursuant to this Article, when combined with the amount received through the National Tobacco Grower Settlement Trust, exceed the compensable economic loss of the producer or allotment holder.

(h)        The Commission may consider the criteria used for National Tobacco Grower Settlement Trust payments and may correspond with the National Tobacco Grower Settlement Trust certification entity to ensure that tobacco farmers and allotment holders are treated fairly.

….

SECTION 90.  G.S. 147‑64.7 reads as rewritten:

§ 147‑64.7.  Authority.

(a)        Access to Persons and Records. –

(1)        The Auditor and the Auditor's authorized representatives shall have ready access to persons and may examine and copy all books, records, reports, vouchers, correspondence, files, personnel files, investments, and any other documentation of any a State agency. Upon demand of the Auditor, access shall extend to databases, datasets, and digital records necessary for any purpose within the authority of the Auditor, including performing audits of any type, assessing government efficiency, risk assessment, fraud detection, audit planning, and evidence gathering. The review of State tax returns shall be limited to matters of official business and the Auditor's report shall not violate the confidentiality provisions of tax laws. Notwithstanding confidentiality provisions of tax laws, the Auditor may use and disclose information related to overdue tax debts in support of the Auditor's statutory mission.

(2)        For audits or investigations of a publicly funded entity conducted under G.S. 147‑64.6(c)(25), G.S. 147‑64.6(c)(24), the Auditor and the Auditor's duly authorized representatives shall have access to persons, records, papers, reports, vouchers, correspondence, books, databases, datasets, digital records, and any other documentation that is in the possession of any publicly funded the entity which and that pertain to either of 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, the State, or its political subdivisions. In order to determine that payments to providers of social and medical services are legal and proper, the providers of these services shall give the Auditor, or the Auditor's authorized representatives, access to the records of recipients that receive these services.

(3)        The Auditor shall, Auditor, for the purpose of examination and audit have audit, has the authority, and will shall be provided ready access, to examine and inspect all property, equipment, and facilities that are in the possession of any a State agency or any that are in the possession of a publicly funded entity which and were furnished or otherwise provided through grant, contract, or any other type of funding by the State of North Carolina, Carolina or the federal government. Audits and investigations of publicly funded entities are limited as provided in G.S. 147‑64.6(c)(25).G.S. 147‑64.6(c)(24).

(4)        All contracts or grants entered into by State agencies or political subdivisions shall include, as a necessary part, a clause providing access as intended by this section.

(5)        The Auditor and the Auditor's authorized representatives may examine all books and accounts of any individual, firm, or corporation only insofar as they relate to transactions with any agency of the State.a State agency.

…

(b)        Experts; Contracted Audits. –

(1)        The Auditor may obtain the services of independent public accountants, qualified management consultants, or other professional persons and experts as he the Auditor deems necessary or desirable to carry out the duties and functions assigned under the act.this Article.

(2)        No State agency may shall enter into any a contract for auditing services which that may impact on the State's comprehensive annual financial report without consultation with, and the prior written approval of, the Auditor, except in instances where audits are called for by the Governor under G.S. 143C‑2‑1 and he shall so notify the Auditor. Auditor. The Auditor shall prescribe policy and establish guidelines containing appropriate criteria for selection and use of independent public accountants, qualified management consultants, or other professional persons by State agencies and governing bodies to perform all or part of the audit function.

(c)        Authority to Administer Oaths, Subpoena Witnesses and Records, and Take Depositions. –

(1)        For the purposes of this Article the Auditor or his authorized representative shall and the Auditor's authorized representatives have the power to subpoena witnesses, to take testimony under oath, to cause the deposition of witnesses (residing within or without the State) to be taken in a manner prescribed by law, residing inside or outside the State, and to assemble records and documents, by subpoena or otherwise. The subpoena power granted by this section may be exercised only at the specific written direction of the Auditor or his the Auditor's chief deputy.

(2)        In case any If a person shall refuse refuses to obey a subpoena, subpoena issued under this section, the Auditor shall invoke the aid of any North Carolina court within the jurisdiction of which the investigation is carried on or where such person may be, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. Such petition a court to require the person to obey the subpoena. The court may issue an order requiring such the person to appear before the Auditor or officers designated by the Auditor, there to produce records, if so ordered, or to give testimony touching about the matter under investigation or in question; and any failure question. Failure to obey such the order of the court may be punished by such court as a contempt thereof.as contempt of court.

….

SECTION 91.(a)  Section 4 of S.L. 2005‑384, as amended by Section 5 of S.L. 2006‑255, reads as rewritten:

SECTION 4.  Sections 1, 3, and 4 of this act are effective when this act becomes law, except that G.S. 130A‑310.53, 130A‑310.54(c), and 130A‑310.55 become effective 1 July 2007. Section 2 of this act becomes effective 1 October 2005. Each vehicle manufacturer that is subject to the requirements of this act shall provide the information required by G.S. 130A‑310.52(b), either individually or as a group of manufacturers, on or before 1 January 2007. This act expires on 1 July 2026.

SECTION 91.(b)  This section becomes effective July 1, 2026.

SECTION 92.(a)  Section 47(b) of S.L. 2025‑25 reads as rewritten:

SECTION 47.(b)  This section applies to conveyances executed before, on, or after the effective date of this act.Part.

SECTION 92.(b)  Section 48(e) of S.L. 2025‑25 reads as rewritten:

SECTION 48.(e)  G.S. 39‑13.3(a)(1) and G.S. 41‑63(4)a., as enacted by this section regarding an elective life estate, apply to conveyances executed before, on, or after the effective date of this act. Part. The remainder of this section applies to conveyances executed on or after the effective date of this act.Part.

SECTION 92.(c)  This section is retroactively effective July 26, 2025.

SECTION 93.  Sections 5.2(d) and 7.2 of S.L. 2025‑37 are repealed.

SECTION 94.  Sections 2 and 3 of S.L. 2025‑52 are repealed.

PART V. EFFECTIVE DATE

SECTION 95.  Except as otherwise provided, this act is effective when it becomes law.