GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2019

 

SESSION LAW 2019-209

HOUSE BILL 226

 

 

AN ACT appropriating funds for the 2019‑2021 fiscal biennium to award public employee benefits increases and legislatively mandated Salary increases to state employees.

 

The General Assembly of North Carolina enacts:

 

Part I. Appropriations

 

APPROPRIATIONS

SECTION 1.1.(a)  There is appropriated from the General Fund for the 2019‑2021 fiscal biennium the sum of two hundred thirty‑nine million two hundred twenty thousand five hundred fifty‑four dollars ($239,220,554) for the 2019‑2020 fiscal year and the sum of five hundred seventy‑two million seven hundred five thousand one hundred fifty‑seven dollars ($572,705,157) for the 2020‑2021 fiscal year for the costs associated with implementing the provisions of this act. These sums are allocated as follows:

 

Entity                                                        2019‑2020                   2020‑2021

                                                                  Recurring                   Recurring

Community College

System Office                                     $16,012,936                $39,903,149

Department of Public

Instruction                                           $112,355,491              $281,835,841

The University of

North Carolina                                    $24,567,465                $62,404,755

DHHS – Aging and

Adult Services                                     $94,416                       $204,340

DHHS – Central Management

and Support                                         $1,911,835                  $4,130,571

DHHS – Child Development

and Early Education                           $74,872                       $162,667

DHHS – Health Benefits (Medicaid/

Health Choice)                                    $678,654                     $1,466,308

DHHS – Health Service

Regulation                                           $724,446                     $1,567,069

DHHS – Mental Health/Dev. Disabl./

Subs. Abuse Serv.                               $9,702,345                  $21,076,437

DHHS – Public Health                             $1,707,704                  $3,695,842

DHHS – Services for the Blind/Deaf/

Hard of Hearing                                  $124,013                     $269,418

DHHS – Social Services                           $373,675                     $809,319

DHHS – Vocational Rehab.

Services                                               $544,673                     $1,184,488

Dept. of Agriculture and

Consumer Services                             $3,091,976                  $6,719,330

Dept. of Commerce                                   $309,933                     $671,863

Dept. of Env. Quality                                $1,327,378                  $2,874,732

Dept. of Labor                                           $580,655                     $1,257,174

Dept. of Natural and

Cultural Resources                              $3,590,816                  $7,815,524

Wildlife Resources Comm.                       $348,866                     $755,149

Administrative Office

of the Courts                                       $18,183,923                $38,936,638

Indigent Defense Services                        $1,843,045                  $4,025,991

Department of Justice                               $1,505,346                  $3,254,595

Dept. of Public Safety                              $27,139,378                $63,493,429

Dept. of Administration                            $1,051,120                  $2,275,394

Office of Admin. Hearings                       $174,663                     $376,940

Auditor                                                     $451,011                     $971,507

Office of Budget and

Management                                       $212,098                     $456,649

Controller                                                  $764,167                     $1,399,586

Board of Elections                                    $229,640                     $496,529

General Assembly                                     $2,241,969                  $4,755,001

Office of the Governor                             $149,789                     $323,306

Dept. of Insurance                                     $1,249,541                  $2,700,421

Industrial Commission                              $160,138                     $345,826

Office of the Lt. Governor                        $27,358                       $58,905

Dept. of Military and Veteran

Affairs                                                 $182,596                     $397,091

Department of Revenue                            $2,353,736                  $5,095,390

Secretary of State                                     $409,136                     $888,495

Treasurer                                                   $41,913                       $91,132

Treasurer – Additional

Retirement Systems                            $2,309,782                  $2,659,782

Dept. of Information

Technology                                         $418,056                     $898,574

SECTION 1.1.(b)  There is appropriated from the Highway Fund to the Department of Transportation for the costs associated with implementing the provisions of this act the sum of nine million eight hundred five thousand thirty‑five dollars ($9,805,035) in recurring funds for the 2019‑2020 fiscal year and the sum of twenty‑two million three hundred twenty‑seven thousand five hundred thirty‑three dollars ($22,327,533) in recurring funds for the 2020‑2021 fiscal year.

SECTION 1.1.(c)  State funds, as defined in G.S. 143C‑1‑1(d)(25), are appropriated for each year of the 2019‑2021 fiscal biennium, as agency receipts up to the amounts needed to implement the legislatively mandated salary increases and employee benefit increases provided in this act for each year of the 2019‑2021 fiscal biennium.

 

Part II. transfers

 

TRANSFERS

SECTION 2.1.  There is transferred from the Department of Insurance to the General Fund the sum of one million two hundred forty‑nine thousand five hundred forty‑one dollars ($1,249,541) for the 2019‑2020 fiscal year and the sum of two million seven hundred thousand four hundred twenty‑one dollars ($2,700,421) for the 2020‑2021 fiscal year.

SECTION 2.2.  There is transferred from the Office of the State Treasurer to the General Fund the sum of forty‑one thousand nine hundred thirteen dollars ($41,913) for the 2019‑2020 fiscal year and the sum of ninety‑one thousand one hundred thirty‑two dollars ($91,132) for the 2020‑2021 fiscal year.

 

Part III. salary and benefits increases

 

ELIGIBLE STATEFUNDED EMPLOYEES AWARDED LEGISLATIVE SALARY INCREASES/EFFECTIVE JULY 1, 2019, AND JULY 1, 2020

SECTION 3.1.(a)  Effective July 1, 2019, except as provided by subsection (b) of this section, a person (i) whose salary is set by this Part, pursuant to the North Carolina Human Resources Act, or as otherwise authorized in this act and (ii) who is employed in a State‑funded position on June 30, 2019, is awarded:

(1)        A legislative salary increase in the amount of two and one‑half percent (2.5%) of annual salary in the 2019‑2020 fiscal year.

(2)        Any salary adjustment otherwise allowed or provided by law.

SECTION 3.1.(a1)  Effective July 1, 2020, except as provided by subsection (b) of this section, a person (i) whose salary is set by this Part, pursuant to the North Carolina Human Resources Act, or as otherwise authorized in this act and (ii) who is employed in a State‑funded position on June 30, 2020, is awarded:

(1)        A legislative salary increase in the amount of two and one‑half percent (2.5%) of annual salary in the 2020‑2021 fiscal year.

(2)        Any salary adjustment otherwise allowed or provided by law.

SECTION 3.1.(b)  For the 2019‑2021 fiscal biennium, the following persons are not eligible to receive the legislative salary increases provided by subsections (a) and (a1) of this section:

(1)        Employees of local boards of education.

(2)        Local community college employees.

(3)        Employees of The University of North Carolina.

(4)        Clerks of superior court compensated under G.S. 7A‑101.

(5)        Correctional employees to which House Bill 609, 2019 Regular Session, applies.

(6)        Law enforcement officers to which either House Bill 126 or House Bill 777, 2019 Regular Session, applies.

(7)        Employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, and the State Board of Education who are paid based on the Teacher Salary Schedule.

SECTION 3.1.(c)  Part‑time employees shall receive the increases authorized by this section on a prorated and equitable basis.

SECTION 3.1.(d)  No eligible State‑funded employee shall be prohibited from receiving the full salary increases provided in this section solely because the employee's salary after applying the legislative increase is above the maximum of the salary range prescribed by the State Human Resources Commission.

 

GOVERNOR AND COUNCIL OF STATE

SECTION 3.2.(a)  Effective July 1, 2019, G.S. 147‑11(a) reads as rewritten:

"(a)      The salary of the Governor shall be one hundred forty‑seven thousand two hundred eighty‑seven dollars ($147,287) one hundred fifty thousand nine hundred sixty‑nine dollars ($150,969) annually, payable monthly."

SECTION 3.2.(a1)  Effective July 1, 2020, G.S. 147‑11(a), as amended by subsection (a) of this section, reads as rewritten:

"(a)      The salary of the Governor shall be one hundred fifty thousand nine hundred sixty-nine dollars ($150,969) one hundred fifty‑four thousand seven hundred forty‑three dollars ($154,743) annually, payable monthly."

SECTION 3.2.(b)  Effective July 1, 2019, the annual salaries for members of the Council of State, payable monthly, are set as follows:

Council of State                                                                                        Annual Salary

Lieutenant Governor                                                                                    $133,365

Attorney General                                                                                           133,365

Secretary of State                                                                                           133,365

State Treasurer                                                                                               133,365

State Auditor                                                                                                  133,365

Superintendent of Public Instruction                                                             133,365

Agriculture Commissioner                                                                            133,365

Insurance Commissioner                                                                               133,365

Labor Commissioner                                                                                     133,365

SECTION 3.2.(b1)  Effective July 1, 2020, the annual salaries for members of the Council of State, payable monthly, are set as follows:

Council of State                                                                                        Annual Salary

Lieutenant Governor                                                                                    $136,699

Attorney General                                                                                           136,699

Secretary of State                                                                                           136,699

State Treasurer                                                                                               136,699

State Auditor                                                                                                  136,699

Superintendent of Public Instruction                                                             136,699

Agriculture Commissioner                                                                            136,699

Insurance Commissioner                                                                               136,699

Labor Commissioner                                                                                     136,699

 

CERTAIN EXECUTIVE BRANCH OFFICIALS

SECTION 3.3.(a)  Effective July 1, 2019, the annual salaries, payable monthly, for the following executive branch officials for the 2019‑2020 fiscal year are as follows:

Executive Branch Officials                                                                             Annual Salary

Chairman, Alcoholic Beverage

   Control Commission                                                                                       $119,758

State Controller                                                                                                   166,758

Commissioner of Banks                                                                                      134,410

Chair, Board of Review, Division

   of Employment Security                                                                                  131,842

Members, Board of Review,

   Division of Employment Security                                                                    130,230

Chairman, Parole Commission                                                                            131,842

Full‑Time Members of the Parole Commission                                                  121,900

Chairman, Utilities Commission                                                                         149,451

Members of the Utilities Commission                                                                 134,410

Executive Director, North Carolina

   Agricultural Finance Authority                                                                        116,625

SECTION 3.3.(a1)  Effective July 1, 2020, the annual salaries, payable monthly, for the following executive branch officials for the 2020‑2021 fiscal year are as follows:

Executive Branch Officials                                                                             Annual Salary

Chairman, Alcoholic Beverage

   Control Commission                                                                                       $122,752

State Controller                                                                                                   170,927

Commissioner of Banks                                                                                      137,770

Chair, Board of Review, Division

   of Employment Security                                                                                  135,138

Members, Board of Review,

   Division of Employment Security                                                                    133,486

Chairman, Parole Commission                                                                            135,138

Full‑Time Members of the Parole Commission                                                  124,948

Chairman, Utilities Commission                                                                         153,187

Members of the Utilities Commission                                                                 137,770

Executive Director, North Carolina

   Agricultural Finance Authority                                                                        119,541

 

JUDICIAL BRANCH

SECTION 3.4.(a)  Effective July 1, 2019, the annual salaries, payable monthly, for the following judicial branch officials for the 2019‑2020 fiscal year are as follows:

Judicial Branch Officials                                                                       Annual Salary

Chief Justice, Supreme Court                                                                   $156,915

Associate Justice, Supreme Court                                                              152,843

Chief Judge, Court of Appeals                                                                   150,425

Judge, Court of Appeals                                                                             146,521

Judge, Senior Regular Resident Superior Court                                        142,568

Judge, Superior Court                                                                                138,617

Chief Judge, District Court                                                                        125,973

Judge, District Court                                                                                  122,020

Chief Administrative Law Judge                                                               123,066

District Attorney                                                                                        134,048

Assistant Administrative Officer of the Courts                                         129,086

Public Defender                                                                                         134,048

Director of Indigent Defense Services                                                       138,158

SECTION 3.4.(a1)  Effective July 1, 2020, the annual salaries, payable monthly, for the following judicial branch officials for the 2020‑2021 fiscal year are as follows:

Judicial Branch Officials                                                                       Annual Salary

Chief Justice, Supreme Court                                                                   $160,838

Associate Justice, Supreme Court                                                              156,664

Chief Judge, Court of Appeals                                                                   154,186

Judge, Court of Appeals                                                                             150,184

Judge, Senior Regular Resident Superior Court                                        146,132

Judge, Superior Court                                                                                142,082

Chief Judge, District Court                                                                        129,122

Judge, District Court                                                                                  125,071

Chief Administrative Law Judge                                                               126,143

District Attorney                                                                                        137,399

Assistant Administrative Officer of the Courts                                         132,313

Public Defender                                                                                         137,399

Director of Indigent Defense Services                                                       141,612

SECTION 3.4.(b)  The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district, for the 2019‑2020 fiscal year, do not exceed eighty thousand five hundred seventy‑nine dollars ($80,579) and the minimum salary of any assistant district attorney or assistant public defender is at least forty‑three thousand two hundred forty‑eight dollars ($43,248), effective July 1, 2019.

SECTION 3.4.(b1)  The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts or the Commission on Indigent Defense Services, respectively, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district, for the 2020‑2021 fiscal year, do not exceed eighty‑two thousand five hundred ninety‑three dollars ($82,593) and the minimum salary of any assistant district attorney or assistant public defender is at least forty‑four thousand three hundred twenty‑nine dollars ($44,329), effective July 1, 2020.

 

ASSISTANT DISTRICT ATTORNEYS' SALARY ADJUSTMENTS

SECTION 3.4A.  Of the funds available to the Administrative Office of the Courts, the sum of eight hundred thousand dollars ($800,000) is provided to increase the budgeted annual salary to seventy thousand dollars ($70,000) for each new Assistant District Attorney position created in S.L. 2017‑57.

 

CLERKS OF SUPERIOR COURT

SECTION 3.5.(a)  Effective July 1, 2019, G.S. 7A‑101 reads as rewritten:

"§ 7A‑101.  Compensation.

(a)        The clerk of superior court is a full‑time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county as determined in subsection (a1) of this section, number of State‑funded assistant and deputy clerks of court as determined by the Administrative Office of Court's workload formula, according to the following schedule:

Population                          Annual Salary

Less than 100,000                        $90,972

100,000 to 149,999                      101,831

150,000 to 249,999                      112,690

250,000 and above                       123,554

Assistants and Deputies                          Annual Salary

0‑19                                                                   $95,000

20‑29                                                                 105,000

30‑49                                                                 115,000

50‑99                                                                 125,000

100 and above                                                   127,500.

When a county changes from one population group to another, If the number of State‑funded assistant and deputy clerks of court as determined by the Administrative Office of Court's workload formula changes, the salary of the clerk shall be changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate for the that new population group, number, except that the salary of an incumbent clerk shall not be decreased by any change in population group that number during his the clerk's continuance in office.

(a1)      For purposes of subsection (a) of this section, the population of a county for any fiscal year shall be the population for the beginning of that fiscal year as reported by the Office of State Budget and Management to the Administrative Office of the Courts prior to the beginning of that fiscal year.

(b)        The clerk shall receive no fees or commission by virtue of his the clerk's office. The salary set forth in this section is the clerk's sole official compensation, but if, on June 30, 1975, the salary of a particular clerk, by reason of previous but no longer authorized merit increments, is higher than that set forth in the table, that higher salary shall not be reduced during his continuance in office.compensation.

(c)        In lieu of merit and other increment raises paid to regular State employees, a clerk of superior court shall receive as longevity pay an amount equal to four and eight‑tenths percent (4.8%) of the clerk's annual salary payable monthly after five years of service, nine and six‑tenths percent (9.6%) after 10 years of service, fourteen and four‑tenths percent (14.4%) after 15 years of service, nineteen and two‑tenths percent (19.2%) after 20 years of service, and twenty‑four percent (24%) after 25 years of service. Service shall mean service in the elective position of clerk of superior court, as an assistant clerk of court and as a supervisor of clerks of superior court with the Administrative Office of the Courts and shall not include service as a deputy or acting clerk. Service shall also mean service as a justice, judge, or magistrate of the General Court of Justice or as a district attorney."

SECTION 3.5.(b)  Effective July 1, 2020, G.S. 7A‑101(a), as amended by subsection (a) of this section, reads as rewritten:

"(a)      The clerk of superior court is a full‑time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the number of State‑funded assistant and deputy clerks of court as determined by the Administrative Office of Court's workload formula, according to the following schedule:

Assistants and Deputies                          Annual Salary

0‑19                                                      $95,000$97,375

20‑29                                                    105,000107,625

30‑49                                                    115,000117,875

50‑99                                                    125,000128,125

100 and above                                     127,500.130,688."

 

ASSISTANT AND DEPUTY CLERKS OF SUPERIOR COURT

SECTION 3.6.(a)  Effective July 1, 2019, G.S. 7A‑102(c1) reads as rewritten:

"(c1)    A full‑time assistant clerk or a full‑time deputy clerk, and up to one full‑time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:

Assistant Clerks and          Annual Salary

Head Bookkeeper

                  Minimum                   $34,780

                  Maximum         61,16262,691

 

Deputy Clerks                    Annual Salary

                  Minimum                   $31,200

                  Maximum                    48,034.49,235."

SECTION 3.6.(a1)  Effective July 1, 2020, G.S. 7A‑102(c1), as amended by subsection (a) of this section, reads as rewritten:

"(c1)    A full‑time assistant clerk or a full‑time deputy clerk, and up to one full‑time deputy clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the following minimum and maximum rates:

Assistant Clerks and          Annual Salary

Head Bookkeeper

                  Minimum                   $34,780

                  Maximum         62,69164,258

 

Deputy Clerks                    Annual Salary

                  Minimum                   $31,200

                  Maximum                    49,235.50,466."

 

MAGISTRATES

SECTION 3.7.(a)  Effective July 1, 2019, G.S. 7A‑171.1(a)(1) reads as rewritten:

"(a)      The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate:

(1)        A full‑time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full‑time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full‑time. Initial appointment shall be at the entry rate. A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.

Table of Salaries of Full‑Time Magistrates

 

Step Level                                                  Annual Salary

                                                    Minimum                    Maximum

Entry Rate                                                             $38,620$39,586

Step 1                                                 $40,309       $41,471$42,508

Step 2                                                 $43,297       $44,546$45,660

Step 3                                                 $46,459       $47,802$48,997

Step 4                                                 $50,248       $51,704$52,997

Step 5                                                 $54,814       $56,404$57,814

Step 6                                                 $59,929       $61,670.$63,212."

SECTION 3.7.(a1)  Effective July 1, 2020, G.S. 7A‑171.1(a)(1), as amended by subsection (a) of this section, reads as rewritten:

"(a)      The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate:

(1)        A full‑time magistrate shall be paid the annual salary indicated in the table set out in this subdivision. A full‑time magistrate is a magistrate who is assigned to work an average of not less than 40 hours a week during the term of office. The Administrative Officer of the Courts shall designate whether a magistrate is full‑time. Initial appointment shall be at the entry rate. A magistrate's salary shall increase to the next step every two years on the anniversary of the date the magistrate was originally appointed for increases to Steps 1 through 3, and every four years on the anniversary of the date the magistrate was originally appointed for increases to Steps 4 through 6.

Table of Salaries of Full‑Time Magistrates

 

Step Level                                                  Annual Salary

Entry Rate                                                             $39,586$40,576

Step 1                                                                    $42,508$43,571

Step 2                                                                    $45,660$46,802

Step 3                                                                    $48,997$50,222

Step 4                                                                    $52,997$54,322

Step 5                                                                    $57,814$59,259

Step 6                                                                    $63,212.$64,792."

 

LEGISLATIVE EMPLOYEES

SECTION 3.8.(a)  Effective July 1, 2019, the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2019, shall be legislatively increased by two and one‑half percent (2.5%).

SECTION 3.8.(a1)  Effective July 1, 2020, the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2020, shall be legislatively increased by two and one‑half percent (2.5%).

SECTION 3.8.(b)  Nothing in this act limits any of the provisions of G.S. 120‑32.

 

GENERAL ASSEMBLY PRINCIPAL CLERKS

SECTION 3.9.(a)  Effective July 1, 2019, G.S. 120‑37(c) reads as rewritten:

"(c)      The principal clerks shall be full‑time officers. Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of one hundred eleven one hundred seven dollars ($111,107), one hundred thirteen thousand eight hundred eighty‑five dollars ($113,885), payable monthly. Each principal clerk shall also receive such additional compensation as approved by the Speaker of the House of Representatives or the President Pro Tempore of the Senate, respectively, for additional employment duties beyond those provided by the rules of their House. The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and shall make appropriate recommendations for changes in those salaries. Any changes enacted by the General Assembly shall be by amendment to this paragraph."

SECTION 3.9.(a1)  Effective July 1, 2020, G.S. 120‑37(c), as amended by subsection (a) of this section, reads as rewritten:

"(c)      The principal clerks shall be full‑time officers. Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of one hundred thirteen thousand eight hundred eighty-five dollars ($113,885), one hundred sixteen thousand seven hundred thirty‑two dollars ($116,732), payable monthly. Each principal clerk shall also receive such additional compensation as approved by the Speaker of the House of Representatives or the President Pro Tempore of the Senate, respectively, for additional employment duties beyond those provided by the rules of their House. The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and shall make appropriate recommendations for changes in those salaries. Any changes enacted by the General Assembly shall be by amendment to this paragraph."

 

SERGEANTSATARMS AND READING CLERKS

SECTION 3.10.(a)  Effective July 1, 2019, G.S. 120‑37(b) reads as rewritten:

"(b)      The sergeant‑at‑arms and the reading clerk in each house shall be paid a salary of four hundred thirty‑eight dollars ($438.00) four hundred forty‑nine dollars ($449.00) per week plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return. The sergeants‑at‑arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission. The reading clerks shall serve during sessions only."

SECTION 3.10.(a1)  Effective July 1, 2020, G.S. 120‑37(b), as amended by subsection (a) of this section, reads as rewritten:

"(b)      The sergeant‑at‑arms and the reading clerk in each house shall be paid a salary of four hundred forty-nine dollars ($449.00) four hundred sixty dollars ($460.00) per week plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return. The sergeants‑at‑arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission. The reading clerks shall serve during sessions only."

 

MOST STATE EMPLOYEES

SECTION 3.11.  Unless otherwise expressly provided by this Part, the annual salaries in effect for the following persons on June 30, 2019, and June 30, 2020, shall be legislatively increased as provided by Section 3.1 of this act:

(1)        Permanent, full‑time State officials and persons whose salaries are set in accordance with the State Human Resources Act.

(2)        Permanent, full‑time State officials and persons in positions exempt from the State Human Resources Act.

(3)        Permanent, part‑time State employees.

(4)        Temporary and permanent hourly State employees.

 

ALL STATESUPPORTED PERSONNEL

SECTION 3.12.(a)  The legislative salary increases provided by this act in each year of the 2019‑2021 fiscal biennium do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to June 30, 2019, for the 2019‑2020 fiscal year or June 30, 2020, for the 2020‑2021 fiscal year. For the 2019‑2021 fiscal biennium, payroll checks issued to employees after July 1, 2019, and July 1, 2020, respectively, that represent payment of services provided prior to July 1 of each year shall not be eligible for salary increases provided for in this act.

SECTION 3.12.(b)  This section applies to all employees paid from State funds, whether or not subject to or exempt from the North Carolina Human Resources Act, including employees of public schools, community colleges, and The University of North Carolina.

 

USE OF FUNDS APPROPRIATED FOR LEGISLATIVELY MANDATED INCREASES

SECTION 3.13.(a)  The appropriations set forth in Part I of this act are for appropriations for legislatively mandated salary increases and employee benefits. The Office of State Budget and Management shall ensure that those funds are used only for the purposes of legislatively mandated salary increases and employee benefits.

SECTION 3.13.(b)  If the Director of the Budget determines that funds appropriated to a State agency for legislatively mandated salary increases and employee benefits exceed the amount required by that agency for those purposes, the Director may reallocate those funds to other State agencies that received insufficient funds for legislatively mandated salary increases and employee benefits.

SECTION 3.13.(c)  Funds appropriated for legislatively mandated salary and employee benefit increases may not be used to adjust the budgeted salaries of vacant positions, to provide salary increases in excess of those required by the General Assembly, or to increase the budgeted salary of filled positions to the minimum of the position's respective salary range.

SECTION 3.13.(d)  Any funds appropriated for legislatively mandated salary and benefits increases in excess of the amounts required to implement the increases shall be credited to the Pay Plan Reserve.

SECTION 3.13.(e)  No later than May 1, 2020, for the 2019‑2020 fiscal year, and subsequently May 1, 2021, for the 2020‑2021 fiscal year, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the expenditure of funds for legislatively mandated salary increases and employee benefits. This report shall include at least the following information for each State agency for each year of the biennium:

(1)        The total amount of funds that the agency received for legislatively mandated salary increases and employee benefits.

(2)        The total amount of funds transferred from the agency to other State agencies pursuant to subsection (b) of this section. This section of the report shall identify the amounts transferred to each recipient State agency.

(3)        The total amount of funds used by the agency for legislatively mandated salary increases and employee benefits.

(4)        The amount of funds credited to the Pay Plan Reserve.

 

SPECIAL ANNUAL LEAVE

SECTION 3.14.(a)  A State employee shall have a one‑time additional five days of annual leave credited on July 1, 2019, if the employee is:

(1)        A full‑time permanent State employee eligible to earn annual leave;

(2)        Not an employee of The University of North Carolina; and

(3)        Not an employee to which any of the following bills of the 2019 Regular Session applies: House Bill 609, House Bill 126, or House Bill 777.

SECTION 3.14.(b)  The additional leave granted in this section shall be accounted for separately in the same manner as the leave provided by Section 35.26 of S.L. 2018‑5 and shall remain available during the length of the employee's employment, notwithstanding any other limitation on the total number of days of annual leave that may be carried forward. Part‑time permanent employees shall receive a pro rata amount of the five days awarded by this section.

SECTION 3.14.(c)  The additional leave awarded under this section has no cash value and is not eligible for cash in. If not used prior to the time of separation or retirement, the bonus leave cannot be paid out and is lost.

SECTION 3.14.(d)  Notwithstanding any provision of G.S. 126‑8 to the contrary, any vacation leave remaining on December 31 of each year in excess of 30 days shall be reduced by the number of days awarded in this section that were actually used by the employee during the year, such that the calculation of vacation leave days that would convert to sick leave shall reflect a deduction of those days of special annual leave awarded in this section that were used by the employee during the year.

SECTION 3.14.(e)  The number of days awarded by this section that carry forward to each following year shall equal the number of days awarded in this section remaining on December 31 of each year plus the number of days awarded in this section that were deducted from vacation leave in excess of 30 days for the calculation of sick leave.

SECTION 3.14.(f)  No employee may be required to take the additional leave awarded by this section.

 

SALARYRELATED CONTRIBUTIONS

SECTION 3.15.(a)  Effective for the 2019‑2021 fiscal biennium, required employer salary‑related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employee's salary. If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary‑related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income benefits.

SECTION 3.15.(b)  Effective July 1, 2019, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2019‑2020 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:

Teachers         State                ORPs              CJRS              LRS

and State        LEOs

Employees

Retirement                   12.97%            12.97%              6.84%            33.60%            26.46%

Disability                       0.10%              0.10%              0.10%              0.00%              0.00%

Death                             0.16%              0.16%              0.00%              0.00%              0.00%

Retiree Health                6.47%              6.47%              6.47%              6.47%              6.47%

NC 401(k)                      0.00%              5.00%              0.00%              0.00%              0.00%

 

Total Contribution

Rate                             19.70%            24.70%            13.41%            40.07%            32.93%

 

The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement.

SECTION 3.15.(c)  Effective July 1, 2020, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2020‑2021 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:

Teachers         State                ORPs              CJRS              LRS

and State        LEOs

Employees

Retirement                   14.36%            14.36%              6.84%            36.00%            29.00%

Disability                       0.10%              0.10%              0.10%              0.00%              0.00%

Death                             0.16%              0.16%              0.00%              0.00%              0.00%

Retiree Health                6.82%              6.82%              6.82%              6.82%              6.82%

NC 401(k)                      0.00%              5.00%              0.00%              0.00%              0.00%

 

Total Contribution

Rate                             21.44%            26.44%            13.76%            42.82%            35.82%

 

The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement.

SECTION 3.15.(d)  Effective July 1, 2019, the maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 2019‑2020 fiscal year to the State Health Plan for Teachers and State Employees are (i) for Medicare‑eligible employees and retirees, four thousand nine hundred dollars ($4,900) and (ii) for non–Medicare‑eligible employees and retirees, six thousand three hundred six dollars ($6,306).

SECTION 3.15.(e)  Effective July 1, 2020, the maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 2020‑2021 fiscal year to the State Health Plan for Teachers and State Employees are (i) for Medicare‑eligible employees and retirees, five thousand one hundred sixty‑five dollars ($5,165) and (ii) for non–Medicare‑eligible employees and retirees, six thousand six hundred forty‑seven dollars ($6,647).

SECTION 3.15.(f)  The total State contribution to the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund shall be eighteen million six hundred fifty‑two thousand two hundred eight dollars ($18,652,208) in fiscal year 2019‑2020 and nineteen million two thousand two hundred eight dollars ($19,002,208) in fiscal year 2020‑2021.

SECTION 3.15.(g)  The total State contribution to the North Carolina National Guard Pension Fund shall be eleven million thirty‑one thousand seven hundred fifteen dollars ($11,031,715) in fiscal year 2019‑2020 and eleven million thirty‑one thousand seven hundred fifteen dollars ($11,031,715) in fiscal year 2020‑2021.

 

OSC/SAP‑SKILLED EMPLOYEES SALARY ADJUSTMENTS

SECTION 3.16.  From the funds allocated to the Office of State Controller, the sum of two hundred fifteen thousand dollars ($215,000) shall be used to adjust the salaries of SAP‑skilled employees closer to eighty‑five percent (85%) of the midpoint of average market pay rates.

 

SHORT‑TERM DISABILITY BENEFITS

SECTION 3.17.  Of the funds appropriated in Part I of this act, five one‑hundredths percent (0.05%) of the estimated General Fund payroll for each entity shall be used to pay short‑term disability benefits as required under G.S. 135‑105(d1).

 

part iv. Miscellaneous

 

STATE BUDGET ACT APPLICABILITY

SECTION 4.1.  If any provision of this act and G.S. 143C‑5‑4 are in conflict, the provisions of this act shall prevail. The appropriations and the authorizations to allocate and spend funds which are set out in this act shall remain in effect until the Current Operations Appropriations Act for the applicable fiscal year becomes law, at which time that act shall become effective and shall govern appropriations and expenditures. When the Current Operations Appropriations Act for that fiscal year becomes law, the Director of the Budget shall adjust allotments to give effect to that act from July 1 of the fiscal year.

 

EFFECTIVE DATE

SECTION 4.2.  Except as otherwise provided, this act becomes effective July 1, 2019.

In the General Assembly read three times and ratified this the 28th day of August, 2019.

 

 

                                                                    s/  Philip E. Berger

                                                                         President Pro Tempore of the Senate

 

 

                                                                    s/  Tim Moore

                                                                         Speaker of the House of Representatives

 

 

                                                                    s/  Roy Cooper

                                                                         Governor

 

 

Approved 1:03 p.m. this 30th day of August, 2019