AN ACT to repeal the local government other post‑employment benefits (OPEB) Fund and to allow each unit of local government to establish a separate opeb trust fund that may then be invested by the department of state treasurer.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 159‑30(g) reads as rewritten:
"(g)	A local government, public authority, an entity eligible to participate in the Local Government Employee's Retirement System, or a local school administrative unit may make contributions to  a Local Government Other Post‑Employment Benefits  Trust established  pursuant to G.S. 159‑30.1."
SECTION 2.  G.S. 159‑30.1(b) reads as rewritten:
"(b)	Restrictions. – Monies in an irrevocable trust established under subsection (a) of this section may be appropriated only for the purposes for which the trust was established. Monies in the trust are not subject to the claims of creditors of the entity that established the trust. An entity that establishes a trust may not deposit money in the trust if the total amount held in trust would exceed the entity's actuarial liability, determined in accordance with the standards of the Governmental Accounting Standards Board, for the purposes for which the trust was established. A trust established pursuant to subsection (a) of this section shall be referred to as a Local Government Other Post‑Retirement Benefits Trust, and the assets of that trust may be invested as provided in G.S. 159‑30(c) or deposited with the State Treasurer for investment pursuant to G.S. 147‑69.2(b4)."
SECTION 3.  G.S. 147‑69.2(a) reads as rewritten:
"(a)	This section applies to funds held by the State Treasurer to the credit of each of the following:
…
(17g)	 Funds deposited with the State Treasurer by Local Government Other Post‑Employment Benefits  Trusts pursuant to G.S. 159‑30.1."…."
SECTION 4.  G.S. 147‑69.2(b4) reads as rewritten:
"(b4)	In addition to the investments authorized under subdivisions (b)(1) through (6) of this section, the State Treasurer may invest funds deposited  pursuant to subdivision (17g) of subsection (a) of this section in any of the investments authorized under subdivisions (b)(6c) and (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. Funds deposited pursuant to this subsection by a Local Government Other Post‑Employment Benefits Trust and interest or other investment income earned from those funds shall be prorated and credited to the contributing trust on the basis of the amounts contributed, figured according to sound accounting principles. For investments  under subdivisions (b)(6c) and (b)(8) of this section, the State Treasurer may require a minimum deposit of up to one hundred thousand dollars ($100,000) and may assess fees of up to 15 basis points per annum as a condition of  participation pursuant to this subsection. Fees assessed by the State Treasurer may be used to defray the costs of administering the Fund."
SECTION 5.  G.S. 147‑69.4 is repealed.
SECTION 6.  This act becomes effective July 1, 2010.
In the General Assembly read three times and ratified this the 7th day of July, 2010.

	_____________________________________
		 Walter H. Dalton
	 President of the Senate

	_____________________________________
		 Joe Hackney
	 Speaker of the House of Representatives

	_____________________________________
		 Beverly E. Perdue
	 Governor

Approved __________.m. this ______________ day of ___________________, 2010