A BILL TO BE ENTITLED
AN ACT to establish the legislative study commission on the state employee grievance process and to set a time limit for the office of administrative hearings in disposing of contested cases under G.S. 126‑34.1.
The General Assembly of North Carolina enacts:
SECTION 1.1.  There is established the Legislative Study Commission on the State Employee Grievance Process. The Study Commission shall study the use of mediation as a means of resolving and streamlining the review of grievances filed by State employees and applicants for State employment. In conducting the study, the Commission shall consider the following issues:
(1)	The results of the pilot mediation program conducted by the Office of State Personnel.
(2)	The use of mediation as a dispute resolution mechanism by State agencies in non‑personnel cases, the court system, and other states.
(3)	The effectiveness of the current internal grievance process in resolving employee disputes and preventing grievances from being appealed.
(4)	The use of mediation either in lieu of, or in addition to, any of the existing steps in the current grievance process to streamline the process.
(5)	The establishment of time limits for the grievance process, with and without mediation, and the qualifications and selection of mediators.
(6)	The productivity costs associated with the current grievance process and whether mediation is an effective method of reducing those costs.
(7)	The extent to which employees perceive the current system as fair and neutral.
(8)	The number of State employee grievance cases appealed to the Office of Administrative Hearings and the causes of any delays in the process of hearing and deciding those cases.
(9)	Any other issues the Commission considers relevant.
SECTION 1.2.  The Commission shall consist of 16 members appointed as follows:
(1)	Four members of the House of Representatives appointed by the Speaker of the House of Representatives.
(2)	Four members of the Senate appointed by the President Pro Tempore of the Senate.
(3)	The Director of the Office of State Personnel or his designee.
(4)	The Chief Administrative Law Judge and Director of the Office of Administrative Hearings or his designee.
(5)	A representative of the State Employees Association of North Carolina appointed by the Speaker of the House of Representatives.
(6)	A representative of the Department of Justice appointed by the President Pro Tempore of the Senate upon the recommendation of the Attorney General.
(7)	A representative of a Historically Black State University appointed by the Speaker of the House of Representatives.
(8)	A representative of The University of North Carolina appointed by the President Pro Tempore of the Senate.
(9)	A representative of a local government appointed by the Speaker of the House of Representatives upon the recommendation of the Association of County Commissioners.
(10)	A representative of a State agency or department appointed by the President Pro Tempore of the Senate upon the recommendation of the Governor.
SECTION 1.3.  The Speaker of the House of Representative shall designate a cochair, and the President Pro Tempore of the Senate shall designate a cochair for the Commission. The Commission may meet at any time upon the joint call of the cochairs. Vacancies on the Commission shall be filled by the same appointing authority as made the initial appointment.
SECTION 1.4.  While in the discharge of its official duties, the Commission may exercise all powers provided for under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4. The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02.
SECTION 1.5.  Subject to the approval of the Legislative Services Commission, the Commission may meet in the Legislative Building or the Legislative Office Building. The Legislative Services Commission, through the Legislative Services Officer, shall assign professional and clerical staff to assist in the work of the Commission. Clerical staff shall be furnished to the Commission through the offices of the House of Representatives and Senate Supervisors of Clerks. Members of the Commission shall receive subsistence and travel expenses at the rates set forth in G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 1.6.  The Commission shall submit a final report of its findings and recommendations, including any legislative recommendations, to the 2005 General Assembly upon the convening of the 2006 Regular Session. Upon the filing of its final report, the Commission shall terminate.
SECTION 1.7.  From the funds appropriated to the General Assembly, the Legislative Services Commission shall allocate funds for the expenses of the Commission established by this act.
SECTION 2.  G.S. 126‑34.1 is amended by adding a new subsection to read:
"(f)	The Office of Administrative Hearings must conduct a contested case hearing and render a decision on cases filed under this section no later than 210 days from the date the case was filed with the Office of Administrative Hearings."
SECTION 3.  This act is effective when it becomes law and applies to State employee grievances that arise on or after that date.