A BILL TO BE ENTITLED
AN ACT allowing public employees to take voluntary furloughs to effect necessary economies in state expenditures, thereby reducing the need for reductions in force and mandatory furloughs during the current and any future economic crisis.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 2 of Chapter 126 of the General Statutes is amended by adding a new section to read:
"§ 126‑8.6.  Voluntary furloughs.
(a)	The following definitions apply in this section:
(1)	Essential position. – Any position deemed by the head of a public agency to be necessary to perform the critical functions of that agency to protect the health or safety of the agency's employees, students, clients, or patients or to protect the general public.
(2)	Nonessential position. – Any position in a public agency not designated as an essential position by the head of the public agency.
(3)	Public agency. – A State agency, department, or institution; and the executive, legislative, and judicial branches of State government; The University of North Carolina; the North Carolina Community College System; and local school administrative units.
(4)	Public employee. – An employee employed by a public agency.
(5)	Voluntary furlough. – A temporary voluntary period of leave from employment without pay up to a maximum of 30 days per fiscal year for nonessential positions and a maximum of 10 days per fiscal year for essential positions.
(b)	The Governor may affect necessary economies in State expenditures by authorizing voluntary furloughs of public employees. Prior to authorizing voluntary furlough of public employees, the Governor shall determine that a voluntary furlough program is reasonable and necessary to meet the important public purpose of balancing the budget. The Governor may create incentives to encourage State employees to take voluntary furloughs.
(c)	Notwithstanding any other provision of law, a public employee on a voluntary furlough who is:
(1)	A member of any of the retirement plans administered by the Retirement Systems Division of the Department of the State Treasurer shall be considered in active service during any period of voluntary furlough and shall be entitled to the same benefits to which the public employee was entitled on the workday immediately preceding the furlough. During a voluntary furlough period, the public employer shall pay both employee and employer contributions to the Retirement Systems Division on behalf of the voluntarily furloughed employee as though the employee were in active service.
(2)	A member of the State Health Plan for Teachers and State Employees shall be considered eligible for coverage under the Plan on the same basis as on the workday immediately preceding the furlough. The public employer shall pay contributions on behalf of the voluntarily furloughed employee as though the employee were in active service.
(d)	Public employees in essential positions are eligible to participate in the voluntary furlough program only if specifically authorized by the head of the public agency."
SECTION 2.  G.S. 126‑5 is amended by adding the following subsection to read:
"(c12)	Notwithstanding any other provision of this section, the provisions of G.S. 126‑8.6 shall apply to all exempt and nonexempt employees in the executive, legislative, and judicial branches; to employees of The University of North Carolina; to employees of the North Carolina Community College System; and to employees of local school administrative units."
SECTION 3.  The State Personnel Commission, in consultation with the Office of State Budget and Management, shall adopt emergency rules for the implementation of this act in accordance with G.S. 150B‑21.1A, except that notwithstanding G.S. 150B‑21.1A(d), those emergency rules may remain in effect until July 30, 2010.
SECTION 4.  This act is effective when it becomes law.