A BILL TO BE ENTITLED
AN ACT enhancing the effectiveness and efficiency of state government by modernizing the state's system of human resources management and by providing flexibility for executive branch reorganization and restructuring.
The General Assembly of North Carolina enacts:

PART I. ORGANIZATIONAL AND ADMINISTRATIVE CHANGES
SECTION 1.1.  G.S. 126‑3(a) reads as rewritten:
"(a)	There is hereby established the Office of State Personnel (hereinafter referred to as 'the Office') which shall be placed 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 Office of State Personnel shall exercise all of its statutory powers in this Chapter, which shall be under the administration and supervision of a State Personnel Director (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 by the Governor. The Director shall serve at the pleasure of the Governor."
SECTION 1.2.  G.S. 126‑3(b)(8) reads as rewritten:
"(8)	Developing criteria and standards to measure the level of compliance or noncompliance with established Commission policies, rules, procedures, criteria, and standards in agencies, departments, and institutions to which authority has been delegated for classification, salary administration, performance management, development, evaluation, and other decentralized programs, and determining through routine monitoring and periodic review process, that agencies, departments, and institutions are in compliance or noncompliance with established Commission policies, rules, procedures, criteria, and standards."
SECTION 1.3.  G.S. 126‑4(5) reads as rewritten:
"§ 126‑4.  Powers and duties of State Personnel Commission.
Subject to the approval of the Governor, the State Personnel Commission shall establish policies and rules governing each of the following:
…
(5)	Hours and days of work, holidays, vacation, sick leave, and other matters pertaining to the conditions of employment. The legal public holidays established by the Commission as paid holidays for State employees shall include Martin Luther King, Jr.'s Birthday and Veterans Day. The Commission shall not provide for more than 12 paid holidays per year, with three paid holidays being given for Christmas."
SECTION 1.4.  This Part is effective when it becomes law.

PART II. STATE PERSONNEL COMMISSION CHANGES
SECTION 2.1.  G.S. 126‑2 reads as rewritten:
"§ 126‑2.  State Personnel Commission.
(a)	There is hereby established the State Personnel Commission (hereinafter referred to as "the Commission").
						
(b1)	The Commission shall consist of nine members, appointed as follows:
(1)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives who shall be an attorney licensed to practice law in North Carolina.
(2)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate who shall be an attorney licensed to practice law in North Carolina.
(3)	One member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives who shall be from private business or industry and who shall have a working knowledge of, or practical experience in, human resources management.
(4)	One member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate who shall be from private business or industry and who shall have a working knowledge of, or practical experience in, human resources management.
(5)	One member who is a veteran of the Armed Forces of the United States appointed by the Governor upon the nomination of the Veterans Affairs Commission and who is a State employee subject to this Chapter serving in a nonexempt supervisory position. The member may not be a human resources professional.
(6)	One member appointed by the Governor who is a State employee subject to this Chapter serving in a nonexempt nonsupervisory position. The member may not be a human resources professional. The Governor shall consider nominations submitted by the State Employees Association of North Carolina.
(7)	One member appointed by the Governor upon the recommendation of the North Carolina Association of County Commissioners who is a local government employee subject to this Chapter serving in a supervisory position. The member may not be a human resources professional.
(8)	One member appointed by the Governor upon the recommendation of the North Carolina Association of County Commissioners who is a local government employee subject to this Chapter serving in a nonsupervisory position. The member may not be a human resources professional.
(9)	One member of the public at large appointed by the Governor.
(c)	Each member of the Commission shall be appointed for a term of four years. Members of the Commission may serve no more than two consecutive terms. Appointments by the General Assembly shall be made in accordance with G.S. 120‑121, and vacancies in those appointments shall be filled in accordance with G.S. 120‑122. Vacancies in appointments made by the Governor occurring prior to the expiration of a term shall be filled by appointment for the unexpired term.
(d)	No member of the Commission may serve on a case where there would be a conflict of interest. The appointing authority may at any time remove any Commission member for cause.
(e)	Members of the Commission who are State or local government employees subject to this Chapter shall be entitled to administrative leave without loss of pay for all periods of time required to conduct the business of the Commission.
(f)	Five members of the Commission shall constitute a quorum.
(g)	The Governor shall designate one member of the Commission as chair.
(h)	The Commission shall meet quarterly, and at other times at the call of the chair."
SECTION 2.2.  The terms of the two attorney members appointed under G.S. 126‑2(b)(1), serving on the Commission on January 1, 2013, shall expire on June 30, 2013. The terms of the persons from private business or industry appointed under G.S. 126‑2(b)(2), serving on the Commission on January 1, 2013, shall expire on June 30, 2014. The terms of the two State employees appointed under G.S. 126‑2(b)(3), serving on the Commission on January 1, 2013, shall expire on June 30, 2013. The terms of the two local government employees appointed under G.S. 126‑2(b)(4), serving on the Commission on January 1, 2013, shall expire on June 30, 2014. The term of the public at‑large member appointed under G.S. 126‑2(b)(5), serving on the Commission on January 1, 2013, shall expire June 30, 2013. If the terms of office eliminated in this act have not been set out, then the appointing authorities shall determine by July 1, 2013, which terms to eliminate to achieve the membership totals pursuant to this act. After determining which terms to eliminate, the appointing authority shall notify in writing all the persons and entities required to receive notification pursuant to G.S. 143‑47.7.
SECTION 2.3.  This Part is effective when it becomes law.

PART Iii. probationary and career state employees
SECTION 3.1.  G.S. 126‑1.1 reads as rewritten:
"§ 126‑1.1.  Career State employee defined.
(a)	For the purposes of this Chapter, unless the context clearly indicates otherwise, "career State employee" means a State employee or an employee of a local entity who is covered by this Chapter pursuant to G.S. 126‑5(a)(2) who:
(1)	Is in a permanent position, and
(2)	Has been continuously employed by the State of North Carolina or a local entity as provided in G.S. 126‑5(a)(2) in a position subject to the State Personnel Act for the immediate 24 preceding months.
(b)	As used in this Chapter, "probationary State employee" means a State employee who is in a probationary appointment and is exempt from the provisions of the State Personnel Act only because the employee has not been continuously employed by the State for the time period required by subsection (a) of this section."
SECTION 3.2.  G.S. 126‑15.1 is repealed.
SECTION 3.3.  This Part is effective when it becomes law.

PART Iv. EXEMPT POSITION MODIFICATIONS
SECTION 4.1.  G.S. 126‑5(d)(1) reads as rewritten:
"(d)	(1)	Exempt Positions in Cabinet Department. – Subject to the provisions of this Chapter, which is known as the State Personnel Act, the Governor may designate a total of 1,500 exempt positions throughout the following departments and offices:
a.	Department of Administration.
b.	Department of Commerce.
c.	Repealed by Session Laws 2012‑83, s. 7, effective June 26, 2012, and by Session Laws 2012‑142, s. 25.2E(a), effective January 1, 2013.
d.	Department of Public Safety.
e.	Department of Cultural Resources.
f.	Department of Health and Human Services.
g.	Department of Environment and Natural Resources.
h.	Department of Revenue.
i.	Department of Transportation.
j.	Repealed by Session Laws 2012‑83, s. 7, effective June 26, 2012, and by Session Laws 2012‑142, s. 25.2E(a), effective January 1, 2013.
k.	Office of Information Technology Services.
l.	Office of State Budget and Management.
m.	Office of State Personnel.
"
SECTION 4.2.  G.S. 147‑33.77(a) reads as rewritten:
"(a)	The State Chief Information Officer may appoint a Chief Deputy Information Officer. The salary of the Chief Deputy Information Officer shall be set by the State Chief Information Officer. The State Chief Information Officer may appoint all employees, including legal counsel, necessary to carry out the powers and duties of the office. These employees shall be subject to the State Personnel Act, except that employees in positions designated as exempt under G.S. 126‑5(d)(1) are not subject to the Act, in accordance with the provisions of that section."
SECTION 4.3.  G.S. 126‑5(e) is repealed.
SECTION 4.4.  G.S. 126‑5(f) is repealed.
SECTION 4.5.  G.S. 126‑5(d)(5) reads as rewritten:
"(d)	…
(5)	Creation, Transfer, or Reorganization. – The Governor, elected department head, or State Board of Education may designate as exempt a position that is created or transferred to a different department, or is located in a department in which reorganization has occurred, after October 1 of the year in which the oath of office is administered to the Governor. The designation must be made in a letter to the State Personnel Director, the Speaker of the North Carolina House of Representatives, and the President of the North Carolina Senate within 180 days after such position is created, transferred, or in which reorganization has occurred."
SECTION 4.6.  This Part becomes effective June 30, 2013, with the repeal of the provisions in G.S. 126‑5(e) and G.S. 126‑5(f) applying as to State employees hired on or after that date.

PART V. REDUCTIONS IN FORCE
SECTION 5.1.  G.S. 126‑7.1 reads as rewritten:
"§ 126‑7.1.  Posting requirement; State employees receive priority consideration; reduction‑in‑force; Work First hiring.
…
(e)	If a State employee subject to this section:
(1)	Applies for another position of State employment that would constitute a promotion; and
(2)	Has substantially equal qualifications as an applicant who is not a State employee;
then the State employee shall receive priority consideration over the applicant who is not a State employee. This priority consideration shall not apply when the only applicants considered for the vacancy are current State employees.
(f)	If a State employee who has been separated due to reduction in force or who has been given notice of imminent separation due to reduction in force:
(1)	Applies for another position of State employment equal to or lower in salary grade than the position held by the employee at the time of notification or separation; and
(2)	Has substantially equal qualifications as any other applicant;
then within all State agencies, the State employee who has been notified of or separated due to a reduction in force shall receive priority consideration over all other applicants. This priority shall remain in effect for a period of 12 months from the date the employee receives notification of separation by reduction in force. State employees separated due to reduction in force shall receive higher priority than other applicants with employment or reemployment priorities, except that the reemployment priority created by G.S. 126‑5(e)(1) shall be considered as equal.
(f1)	If a State employee who has been separated due to reduction in force or who has been given notice of imminent separation due to reduction in force accepts or rejects an offer for a position of State employment that is equal to or higher than the position held or equal to or higher than the salary earned by the employee at the time of separation or notification, then the employee's acceptance or rejection of that offer shall satisfy and terminate the one‑time, 12‑month priority granted by subsection (f) of this section.
…."
SECTION 5.2.  This Part is effective when it becomes law and applies to reductions in force implemented on or after that date.

PART VI. EMPLOYEE GRIEVANCES
SECTION 6.1.  Article 8 of Chapter 126 of the General Statutes reads as rewritten:
"Article 8.
"Employee Appeals of Grievances and Disciplinary Action.
"§ 126‑34.01  Grievance; resolution.
Any State employee having a grievance arising out of or due to the employee's employment shall first discuss the problem or grievance with the employee's supervisor, unless the problem or grievance is with the supervisor. Then the employee shall follow the grievance procedure approved by the State Personnel Commission. The proposed agency final decision shall not be issued nor become final until reviewed and approved by the Office of State Personnel. The agency grievance procedure and Office of State Personnel review shall be completed within 90 days from the date the grievance is filed.
"§ 126‑34.02  Grievance appeal process; grounds.
(a)	Once a final agency decision has been issued in accordance with G.S. 126‑34.01, an applicant for State employment, a State employee, or former State employee may file a contested case in the Office of Administrative Hearings under Article 3 of Chapter 150B of the General Statutes. The contested case must be filed within 30 days of receipt of the final agency decision. Except for cases of extraordinary cause shown, the Office of Administrative Hearings shall hear and issue a final decision in accordance with G.S. 150B‑34 within 180 days from the commencement of the case. In deciding cases under this section, the Office of Administrative Hearings may grant the following relief:
(1)	Reinstate any employee to the position from which the employee has been removed.(2)	Order the employment, promotion, transfer, or salary adjustment of any individual to whom it has been wrongfully denied.
(3)	Direct other suitable action to correct the abuse which may include the requirement of payment for any loss of salary which has resulted from the improper action of the appointing authority.
An aggrieved party in a contested case under this section shall be entitled to judicial review of a final decision by appeal to the Court of Appeals as provided in G.S. 7A‑29(a). The procedure for the appeal shall be as provided by the rules of appellate procedure. The appeal shall be taken within 30 days of receipt of the written notice of final decision. A notice of appeal shall be filed with the Office of Administrative Hearings and served on all parties to the contested case hearing.
(b)	The following issues may be heard as contested cases after completion of the agency grievance procedure and the Office of State Personnel review:
(1)	Discrimination or harassment. – An applicant for State employment, a State employee, or former State employee may allege discrimination or harassment based on race, religion, color, national origin, sex, age, disability, genetic information, or political affiliation if the employee believes that he or she has been discriminated against in his or her application for employment or in the terms and conditions of the employee's employment, or in the termination of his or her employment.
(2)	Retaliation. – An applicant for State employment, a State employee, or former State employee may allege retaliation for protesting discrimination based on race, religion, color, national origin, sex, age, disability, political affiliation, or genetic information if the employee believes that he or she has been retaliated against in his or her application for employment or in the terms and conditions of the employee's employment, or in the termination of the employee's employment.
(3)	Just cause for dismissal, demotion, or suspension. – A career State employee may allege that he or she was dismissed, demoted, or suspended for disciplinary reasons without just cause. A dismissal, demotion, or suspension which is not imposed for disciplinary reasons shall not be considered a disciplinary action within the meaning of this section. However, in contested cases conducted pursuant to this section, an employee may appeal an involuntary nondisciplinary separation due to an employee's unavailability in the same fashion as if it were a disciplinary action, but the agency shall only have the burden to prove that the employee was unavailable. In cases of such disciplinary action the employee shall, before the action is taken, be furnished with a statement in writing setting forth the specific acts or omissions that are the reasons for the disciplinary action and the employee's appeal rights. The employee shall be permitted 15 days from the date the statement is delivered to appeal under the agency grievance procedure. However, an employee may be suspended without warning pending the giving of written reasons in order to avoid undue disruption of work, to protect the safety of persons or property, or for other serious reasons.
(4)	Veteran's preference. – An applicant for State employment or a State employee may allege that he or she was denied veteran's preference in violation of the law.
(5)	Failure to post or give priority consideration. – An applicant for State employment or a State employee may allege that he or she was denied hiring or promotion because a position was not posted in accordance with this Chapter or because he or she was denied hiring or promotion as a result of a failure to give priority consideration for promotion or reemployment as required by G.S. 126‑7.1.
(6)	Whistleblower. – A whistleblower grievance as provided for in this Chapter.
(c)	Any issue for which an appeal to the Office of Administrative Hearings has not been specifically authorized by this section shall not be grounds for a contested case hearing.
(d)	In contested cases conducted pursuant to this section, the burden of showing that a career State employee was discharged, demoted, or suspended for just cause rests with the employer. In all other contested cases, the burden of proof rests on the employee.
(e)	The Office of Administrative Hearings may award attorneys' fees to an employee where reinstatement or back pay is ordered or where an employee prevails in a whistleblower grievance. The remedies provided in this subsection in a whistleblower appeal shall be the same as those provided in G.S. 126‑87.
(f)	The Office of Administrative Hearings shall report to the Office of State Personnel and the Joint Legislative Administrative Procedure Oversight Committee on the number of cases filed under this section and on the number of days between filing and closing of each case. The report shall be filed on a semiannual basis.
""																											"§ 126‑34.2.  Alternative dispute resolution.
In its discretion, the Commission may adopt alternative dispute resolution procedures for the resolution of matters constituting and not constituting grounds for a grievance under this Article. Any matters not constituting grounds for an appeal under G.S. 126‑34.02 shall not be heard by the Office of Administrative Hearings as a contested case.
			"§ 126‑34.3.  Judicial review of fee awards.
With respect to a decision of the Office of Administrative Hearings assessing or refusing to assess reasonable witness fees or a reasonable attorneys' fee, the decision shall be subject to judicial review in accordance with G.S. 126‑34.02(a). The reviewing court may reverse or modify the decision of the Office of Administrative Hearings if the decision is unreasonable or the award is inadequate. An employee who obtains a reversal or modification of the Office of Administrative Hearings' decision in an appeal under this section shall be entitled to recover court costs and a reasonable attorneys' fee for representation in connection with the appeal.
"§ 126‑35.  Just cause; disciplinary actions for State employees.
(a)	No career State employee subject to the State Personnel Act shall be discharged, suspended, or demoted for disciplinary reasons, except for just cause. In cases of such disciplinary action, the employee shall, before the action is taken, be furnished with a statement in writing setting forth  the specific acts or omissions that are the reasons for the disciplinary action and the employee's appeal rights. The employee shall be permitted 15 days from the date the statement is delivered to appeal to the head of the agency through the agency grievance procedure for a final agency decision. However, an employee may be suspended without warning for causes relating to personal conduct detrimental to State service, pending the giving of written reasons, in order to avoid undue disruption of work or to protect the safety of persons or property or for other serious reasons. If the employee is not satisfied with the final agency decision or is unable, within a reasonable period of time, to obtain a final agency decision, the employee may appeal to the Office of Administrative Hearings. Such appeal shall be filed not later than 30 days after receipt of notice of the final agency decision. The State Personnel Commission may adopt, subject to the approval of the Governor, rules that define just cause.
			"
"				
""
"		"					""""""SECTION 6.2.  G.S. 126‑7.2 is repealed.
SECTION 6.3.  G.S. 126‑14.1(c) reads as rewritten:
"(c)	A State employee subject to the Personnel Act, probationary State employee, or temporary State employee, who without probable cause falsely accuses a person of violating this section shall be subject to discipline or change in employment status in accordance with the provisions of G.S. 126‑34.02 and may, as otherwise provided by law, be subject to criminal penalties for perjury or civil liability for libel, slander, or malicious prosecution."
SECTION 6.4.  G.S. 7A‑29(a) reads as rewritten:
"(a)	From any final order or decision of the North Carolina Utilities Commission not governed by subsection (b) of this section, the Department of Health and Human Services under G.S. 131E‑188(b), the North Carolina Industrial Commission, the North Carolina State Bar under G.S. 84‑28, the Property Tax Commission under G.S. 105‑290 and G.S. 105‑342, the Commissioner of Insurance under G.S. 58‑2‑80, the State Board of Elections under G.S. 163‑127.6, the Office of Administrative Hearings under G.S. 126‑34.02, or the Secretary of Environment and Natural Resources under G.S. 104E‑6.2 or G.S. 130A‑293, appeal as of right lies directly to the Court of Appeals."
SECTION 6.5.  This Part is effective when it becomes law and applies to grievances filed on or after that date.

PART VII. OTHER MODERNIZING AND conforming CHANGES
SECTION 7.1.  G.S. 126‑16 reads as rewritten:
"§ 126‑16.  Equal opportunity for employment and compensation by State departments and agencies and local political subdivisions.
All State agencies, departments, and institutions and all local political subdivisions of North Carolina shall give equal opportunity for employment and compensation, without regard to race, religion, color, national origin, sex, age, disability, or genetic information to all persons otherwise qualified."
SECTION 7.2.  G.S. 126‑16.1 reads as rewritten:
"§ 126‑16.1.  Equal employment opportunity training.
Each State agency, department, and institution and The University of North Carolina shall enroll each newly appointed supervisor or manager within one year of appointment in the Equal Employment Opportunity training offered or approved by the Office of State Personnel.
		"
SECTION 7.3.  G.S. 126‑19 reads as rewritten:
"§ 126‑19.  Equal employment opportunity plans; reports; maintenance of services by State Personnel Director.
(a)	Each member of the Council of State under G.S. 143A‑11, each of the principal departments enumerated in G.S. 143B‑6, The University of North Carolina, the judicial branch, and the legislative branch, shall develop and submit on an annual basis an Equal Employment Opportunity plan which 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 State Personnel Director for review and approval on or before March 1, of each year.
	
(c)	The State Personnel Director will provide services of Equal Employment Opportunity technical assistance, training, oversight, monitoring, evaluation, support programs, and reporting to assure that State government's work force is diverse at all occupational levels. These services shall be provided by qualified personnel."
SECTION 7.4.  G.S. 126‑25 reads as rewritten:
"§ 126‑25.  Remedies of employee objecting to material in file.
(a)	An employee, former employee, or applicant for employment who objects to material in the employee's file may place in his or her file a written statement relating to the material the employee considers to be inaccurate or misleading.
(b)	An employee, former employee, or applicant for employment who objects to material in the employee's file because he or she considers it inaccurate or misleading may seek the removal of such material from the file in accordance with a grievance procedure established by that department. If the agency determines that material in the employee's file is inaccurate or misleading, the agency shall remove or amend the inaccurate material to ensure that the file is accurate. Nothing in this subsection shall be construed to permit an employee to appeal the contents of a performance appraisal or written disciplinary action."
SECTION 7.5.  G.S. 126‑6.2 reads as rewritten:
"§ 126‑6.2.  Reports.
(a)	Beginning January 1, 1998, and quarterly thereafter, the head of each State agency, department, or institution employing State employees subject to the State Personnel Act shall report to the Office of State Personnel on the following:
(1)	The costs associated with the defense or settlement of administrative grievances and lawsuits filed by current or former State employees and applicants for State employment, including the costs of settlements, attorneys' fees, litigation expenses, damages, or awards incurred by the respective State agencies, departments, and institutions. The report shall include an explanation of the fiscal impact of these costs upon the operations of the State agency, department, or institution.
(2)	Any other human resources functions or actions as may be requested by the Director of the Office of State Personnel in order for the Office to evaluate the efficiency, productivity, and compliance of a State agency, department, or institution with policies including, but not limited to, the compensation of State employees, voluntary shared‑leave programs, equal employment opportunity plans and programs, and work options programs.
(b)	Beginning May 1, 1998, and annually thereafter, the State Personnel Commission shall report to the Joint Legislative Commission on Governmental Operations on the costs associated with the defense or settlement of lawsuits, and upon request, on the results of any other reports regarding human resources action or functions pursuant to subsection (a) of this section.
	"
SECTION 7.6.  G.S. 126‑14.4 is repealed.
SECTION 7.7.  G.S. 126‑79 is repealed.
SECTION 7.8.  G.S. 126‑8.3(c) reads as rewritten:
"(c)	The State Personnel Commission, the State Board of Education, and the State Board of Community Colleges and all State agencies, departments, and institutions shall annually report to the Office of State Personnel on the voluntary shared leave program. For the prior fiscal year, the report shall include the total number of days or hours of vacation leave and sick leave donated and used by voluntary shared leave recipients and the total cost of the vacation leave and sick leave donated and used."
SECTION 7.9.(a)  G.S. 126‑7(b) is repealed.
SECTION 7.9.(b)  Article 2 of Chapter 126 of the General Statutes is amended by adding a new section to read:
"§ 126‑7.3.  Annual compensation surveys.
To guide the Governor and the General Assembly in making decisions regarding the compensation of State employees, the Office of State Personnel shall conduct annual compensation surveys. The Commission shall present the results of the compensation survey to the Appropriations Committees of the House of Representatives and the Senate no later than two weeks after the convening of the legislature in odd‑numbered years and May 1st of even‑numbered years."
SECTION 7.10.  G.S. 126‑86 reads as rewritten:
"§ 126‑86.  Civil actions for injunctive relief or other remedies.
Any State employee injured by a violation of G.S. 126‑85 who is not subject to Article 8 of this Chapter may maintain an action in superior court for damages, an injunction, or other remedies provided in this Article against the person or agency who committed the violation within one year after the occurrence of the alleged violation of this Article; provided, however, any claim arising under Article 21 of Chapter 95 of the General Statutes may be maintained pursuant to the provisions of that Article only and may be redressed only by the remedies and relief available under that Article."
SECTION 7.11.  This Part is effective when it becomes law.

part ViiI. reorganization through reduction program
SECTION 8.1.  The Office of State Personnel, in conjunction with the Office of State Budget and Management (OSBM), may develop the Reorganization Through Reduction Program (RTR). The RTR shall be one option available for reorganization and restructuring of the departments and offices listed in G.S. 126‑5(d)(1), as amended by Section 4.1 of this act. The RTR is authorized to serve as an employee volunteer separation program to accomplish reorganization and restructuring needs in the specified departments and offices through policies approved by the State Personnel Commission (SPC). The SPC policy shall detail the following:
(1)	The approach to be used in identifying the organizational units.
(2)	The process for identifying employees who may volunteer.
(3)	The availability of severance and other related assistance.
SECTION 8.2.  Severance and any other payments made pursuant to the implementation of the RTR program will not exceed funds appropriated for that purpose.
SECTION 8.3.  This Part is effective when it becomes law and expires June 30, 2014. The Office of State Personnel and the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations on January 31, 2014, April 30, 2014, and September 1, 2014.

PART IX. RENAMING/STATE HUMAN RESOURCES COMMISSION AND OFFICE OF STATE HUMAN RESOURCES
SECTION 9.1.(a)  Chapter 126 of the General Statutes, the State Personnel Act, is hereby renamed and may be cited as the "North Carolina Human Resources Act."
SECTION 9.1.(b)  The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:
(1)	The State Personnel Commission is renamed the "North Carolina Human Resources Commission."
(2)	The Office of State Personnel is renamed the "North Carolina Office of State Human Resources."
(3)	The State Personnel Director is renamed the "Director of the North Carolina Office of State Human Resources."
SECTION 9.1.(c)  Modification of References. – The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary. The affected statutes may include, but are not limited to, the statutes tabulated below:
– Referring to the State Personnel Act:
1.	G.S. 7A‑171	Duty hours, salary, and travel expenses within county.
2.	G.S. 7A‑751	Agency head; powers and duties; salaries of Chief Administrative Law Judge and other administrative law judges.
3.	G.S. 7A‑760	Number and status of employees; staff assignments; role of State Personnel Commission.
4.	G.S. 18C‑120	Selection of the Director; powers and duties.
5.	G.S. 18C‑173	Limits on compensation increases.
6.	G.S. 58‑2‑10	Salary of Commissioner.
7.	G.S. 58‑71‑5	Commissioner of Insurance to administer Article; rules and regulations; employees; evidence of Commissioner's actions.
8.	G.S. 58‑86‑15	Director.
9.	G.S. 62‑12	Organization of Commission; adoption of rules and regulations therefor.
10.	G.S. 88B‑6	Board office, employees, funds, budget requirements.
11.	G.S. 90‑270.4	Exemptions to this Article.
12.	G.S. 95‑2	Election of Commissioner; term; salary; vacancy.
13.	G.S. 97‑78	Salaries and expenses; administrator, executive secretary, deputy commissioners, and other staff assistance; annual report.
14.	G.S. 106‑11	Salary of Commissioner of Agriculture.
15.	G.S. 113A‑258	Clean Water Management Trust Fund: Executive Director and staff.
16.	G.S. 114‑7	Salary of the Attorney General.
17.	G.S. 115C‑20	Office and salary.
18.	G.S. 115D‑5	Administration of institutions by State Board of Community Colleges; personnel exempt from State Personnel Act; extension courses; tuition waiver; in‑plant training; contracting, etc., for establishment and operation of extension units of the community college system; use of existing public school facilities.
19.	G.S. 116‑11	Powers and duties generally.
20.	G.S. 116‑30.4	Position management.
21.	G.S. 120‑36.1	Fiscal Research Division of Legislative Services Commission established.
22.	G.S. 120‑79	Commission staffing.
23.	G.S. 122A‑4	North Carolina Housing Finance Agency.
24.	G.S. 122D‑5	Officers and employees; administration of Chapter.
25.	G.S. 122E‑4	North Carolina Housing Partnership created; compensation; organization.
26.	G.S. 126‑1.1	Career State employee defined.
27.	G.S. 126‑2	State Personnel Commission.
28.	G.S. 126‑5	Employees subject to Chapter; exemptions.
29.	G.S. 126‑6.2	Reports.
30.	G.S. 126‑30	Fraudulent disclosure and willful nondisclosure on application for State employment; penalties.
31.	G.S. 126‑34.1	Grounds for contested case under the State Personnel Act defined.
32.	G.S. 126‑35	Just cause; disciplinary actions for State employees.
33.	G.S. 126‑56	Status of employees of other governments.
34.	G.S. 126‑75	Work options for State employees.
35.	G.S. 135‑5.1	Optional retirement program for The University of North Carolina.
36.	G.S. 135‑48.23	Executive Administrator.
37.	G.S. 136‑4	Chief Engineer.
38.	G.S. 138‑4	Governor to set salaries of administrative officers; exceptions; longevity pay.
39.	G.S. 138A‑3	Definitions.
40.	G.S. 140‑5.15	Director of Museum of Art; appointment; dismissal; powers and duties; staff.
41.	G.S. 143‑166.41	Special separation allowance.
42.	G.S. 143‑641	Powers and duties of the Commission.
43.	G.S. 143A‑9	Appointment of officers and employees; salaries of department heads.
44.	G.S. 143A‑10	Governor; continuation of powers and duties; staff.
45.	G.S. 143B‑5	Governor; continuation of powers and duties.
46.	G.S. 143B‑9	Appointment of officers and employees.
47.	G.S. 143B‑10	Powers and duties of heads of principal departments.
48.	G.S. 143B‑74.2	U.S.S. North Carolina Battleship Commission – employees.
49.	G.S. 143B‑131.9	Roanoke Island Commission staff.
50.	G.S. 143B‑146.7	Consequences for personnel at low‑performing schools.
51.	G.S. 143B‑426.11	Powers of Agency.
52.	G.S. 143B‑426.38	Organization and operation of office.
53.	G.S. 147‑33	Compensation and expenses of Lieutenant Governor.
54	G.S. 147‑33.76	Qualification, appointment, and duties of the State Chief Information Officer.
55.	G.S. 147‑33.77	Office of Information Technology Services; organization and operation.
56.	G.S. 147‑35	Salary of Secretary of State.
57.	G.S. 147‑64.1	Salary of State Auditor.
58.	G.S. 147‑64.10	Powers of appointment.
59. G.S. 147‑65	Salary of State Treasurer.
60. G.S. 153A‑77	Authority of boards of commissioners in certain counties over commissions, boards, agencies, etc.
61.	G.S. 153A‑92	Compensation.
– Referring to the State Personnel Commission:
1.	G.S. 7A‑343.1	Distribution of copies of the appellate division reports.
2.	G.S. 7A‑760	Number and status of employees; staff assignments; role of State Personnel Commission.
3.	G.S. 20‑187.3	Quotas prohibited.
4.	G.S. 53C‑2‑3	The Office of the Commissioner of Banks.
5.	G.S. 58‑32‑10	Powers and duties of Commission.
6.	G.S. 90B‑10	Exemption from certain requirements.
7.	G.S. 96‑29	Openings listed by State agencies.
8.	G.S. 97‑77	North Carolina Industrial Commission created; members appointed by Governor; terms of office; chairman.
9.	G.S. 108A‑9	Duties and responsibilities.
10.	G.S. 108A‑12	Appointment.
11.	G.S. 108A‑13	Salary.
12.	G.S. 108A‑14	Duties and responsibilities.
13.	G.S. 115C‑12	Powers and duties of the Board generally.
14.	G.S. 115C‑12.2	Voluntary shared leave.
15. G.S. 115C‑84.2	School calendar.
16. G.S. 115C‑272	Residence, oath of office, and salary of superintendent.
17.	G.S. 115C‑285	Salary.
18.	G.S. 115C‑316	Salary and vacation.
19.	G.S. 115D‑25.3	Voluntary shared leave.
20.	G.S. 120‑123	Service by members of the General Assembly on certain boards and commissions.
21.	G.S. 122C‑121	Area director.
22.	G.S. 122C‑154	Personnel.
23.	G.S. 126‑1	Purpose of Chapter; application to local employees.
24.	G.S. 126‑2	State Personnel Commission.
25.	G.S. 126‑4	Powers and duties of State Personnel Commission.
26.	G.S. 126‑5	Employees subject to Chapter; exemptions.
27.	G.S. 126‑6.2	Reports.
28.	G.S. 126‑7	Annual Compensation Survey.
29.	G.S. 126‑7.1	Posting requirement; State employees receive priority consideration; reduction‑in‑force; Work First hiring.
30.	G.S. 126‑8	Minimum leave granted State employees.
31.	G.S. 126‑8.3	Voluntary shared leave.
32.	G.S. 126‑8.5	Discontinued service retirement allowance and severance wages for certain State employees.
33.	G.S. 126‑9	County or municipal employees may be made subject to rules adopted by local governing body.
34.	G.S. 126‑10	Personnel services to local governmental units.
35.	G.S. 126‑11	Local personnel system may be established; approval and monitoring; rules and regulations.
36.	G.S. 126‑14.2	Political hirings limited.
37.	G.S. 126‑14.3	Open and fair competition.
38.	G.S. 126‑14.4	Remedies.
39.	G.S. 126‑19	Equal employment opportunity plans; reports; maintenance of services by State Personnel Director.
40.	G.S. 126‑23	Certain records to be kept by State agencies open to inspection.
41.	G.S. 126‑25	Remedies of employee objecting to material in file.
42.	G.S. 126‑26	Rules and regulations.
43.	G.S. 126‑30	Fraudulent disclosure and willful nondisclosure on application for State employment; penalties.
44.	G.S. 126‑34.2	Alternative dispute resolution.
45.	G.S. 126‑35	Just cause; disciplinary actions for State employees.
46.	G.S. 126‑58	Administration.
47.	G.S. 126‑74	Work Options Program established.
48.	G.S. 126‑75	Work options for State employees.
49.	G.S. 126‑76	Promoting Work Options Program.
50.	G.S. 126‑77	Authority of agencies to participate.
51.	G.S. 126‑78	Administration.
52.	G.S. 126‑79	Report required.
53.	G.S. 126‑82	State Personnel Commission to provide for preference.
54.	G.S. 138A‑24	Contents of statement.
55.	G.S. 143‑27.2	Discontinued service retirement allowance and severance wages for certain State employees.
56.	G.S. 143‑554	Right of employee appeal.
57.	G.S. 143‑583	Model program; technical assistance; reports.
58.	G.S. 143‑584	State agency safety and health committees.
59.	G.S. 143B‑10	Powers and duties of heads of principal departments.
60.	G.S. 148‑118.8	Appointment, salary, and authority of Executive Director and inmate grievance examiners.
61.	G.S. 150B‑2	Definitions.
– Referring to the State Personnel Director:
1.	G.S. 20‑79.5	Special registration plates for elected and appointed State government officials.
2.	G.S. 95‑127	Definitions.
3.	G.S. 126‑3	Office of State Personnel established and responsibilities outlined; administration and supervision; appointment, compensation and tenure of Director.
4.	G.S. 126‑4	Powers and duties of State Personnel Commission.
5.	G.S. 126‑5	Employees subject to Chapter; exemptions.
6.	G.S. 126‑8.5	Discontinued service retirement allowance and severance wages for certain State employees.
7.	G.S. 126‑9	County or municipal employees may be made subject to rules adopted by local governing body.
8.	G.S. 126‑19	Equal employment opportunity plans; reports; maintenance of services by State Personnel Director.
9.	G.S. 126‑74	Work Options Program established.
10.	G.S. 143‑27.2	Discontinued service retirement allowance and severance wages for certain State employees.
11.	G.S. 143‑345.23	Suggestion and review process; role of agency coordinator and agency evaluator.
– Referring to the Office of State Personnel:
1.	G.S. 7A‑102	Assistant and deputy clerks; appointment; number; salaries; duties.
2.	G.S. 7A‑343.1	Distribution of copies of the appellate division reports.
3.	G.S. 15‑203	Duties of the Secretary of Public Safety; appointment of probation officers; reports; requests for extradition.
4.	G.S. 88B‑6	Board office, employees, funds, budget requirements.
5.	G.S. 90B‑10	Exemption from certain requirements.
6.	G.S. 116‑14	President and staff.
7.	G.S. 116‑30.1	Special responsibility constituent institutions.
8.	G.S. 116‑30.4	Position management.
9.	G.S. 116‑37	University of North Carolina Health Care System.
10.	G.S. 116‑40.6	East Carolina University Medical Faculty Practice Plan.
11.	G.S. 122C‑120.1	Job classifications; director and finance officer.
12.	G.S. 122C‑121	Area director.
13.	G.S. 122C‑154	Personnel.
14.	G.S. 126‑1	Purpose of Chapter; application to local employees.
15.	G.S. 126‑3	Office of State Personnel established and responsibilities outlined; administration and supervision; appointment, compensation and tenure of Director.
16.	G.S. 126‑6.2	Reports.
17.	G.S. 126‑7.1	Posting requirement; State employees receive priority consideration; reduction‑in‑force; Work First hiring.
18.	G.S. 126‑10	Personnel services to local governmental units.
19.	G.S. 126‑11	Local personnel system may be established; approval and monitoring; rules and regulations.
20.	G.S. 126‑16.1	Equal employment opportunity training.
21.	G.S. 126‑22	Personnel files not subject to inspection under § 132‑6.
22.	G.S. 126‑74	Work Options Program established.
23.	G.S. 128‑15.3	Discrimination against handicapped prohibited in hiring; recruitment, etc., of handicapped persons.
24.	G.S. 135‑4	Creditable service.
25.	G.S. 138A‑3	Definitions.
26.	G.S. 143‑49	Powers and duties of Secretary.
27.	G.S. 143‑64.70	Personal service contracts – reporting requirements.
28.	G.S. 143‑215.107C	State agency goals, plans, duties, and reports.
29.	G.S. 143‑345.21	State employee suggestion program.
30.	G.S. 143‑345.22	Allocation of suggestion program funds; nonmonetary recognition.
31.	G.S. 143‑345.23	Suggestion and review process; role of agency coordinator and agency evaluator.
32.	G.S. 143‑345.24	State Suggestion Review Committee.
33.	G.S. 143‑345.25	Innovations deemed property of the State; effect of decisions regarding bonuses.
34.	G.S. 143‑583	Model program; technical assistance; reports.
35.	G.S. 143B‑10	Powers and duties of heads of principal departments.
36.	G.S. 143B‑53.2	Salaries, promotions, and leave of employees of the North Carolina Department of Cultural Resources.
37.	G.S. 143B‑146.21	Policies, reports, and other miscellaneous provisions.
38.	G.S. 143B‑394.15	Commission established; purpose; membership; transaction of business.
39.	G.S. 143B‑417	North Carolina Internship Council creation; powers and duties.
40.	G.S. 143B‑806	Duties and powers of the Division of Juvenile Justice of the Department of Public Safety.
41.	G.S. 147‑54.3	Land records management program.
42.	G.S. 148‑22.1	Educational facilities and programs for selected inmates.
SECTION 9.2.  No action or proceeding pending on the effective date of this section, brought by or against the State Personnel Commission, the Director of the Office of State Personnel, or the Office of State Personnel, shall be affected by any provision of this section, but the same may be prosecuted or defended in the new name of the Commission, Director, and Office. In these actions and proceedings, the renamed Commission, Director, or Office shall be substituted as a party upon proper application to the courts or other public bodies.
SECTION 9.3.  Any business or other matter undertaken or commanded by the former State Personnel Commission, State Personnel Director, or Office of State Personnel regarding any State program, office, or contract or pertaining to or connected with their respective functions, powers, obligations, and duties that are pending on the date this act becomes effective may be conducted and completed by the Commission, Director, or Office in the same manner and under the same terms and conditions and with the same effect as if conducted and completed by the formerly named commission, director, or office.
SECTION 9.4.  This Part is effective when it becomes law.

Part X. Effective Date
SECTION 10.  Unless otherwise provided, this act is effective when it becomes law.