A BILL TO BE ENTITLED
AN ACT to provide further REGULATORY RELIEF TO THE CITIZENS OF nORTH CAROLINA by providing for various administrative reforms, by eliminating certain unnecessary or outdated statutes and regulations and modernizing or simplifying cumbersome or outdated regulations, and by making various other statutory changes.
The General Assembly of North Carolina enacts:

PART I.  BUSINESS REGULATION

PROHIBIT CERTAIN HEADLIGHTS/AIRBAGS
SECTION 1.1.(a)  G.S. 20‑131 reads as rewritten:
"§ 20‑131.  Requirements as to headlamps and auxiliary driving lamps.
(a)	The headlamps of motor vehicles shall be so constructed, arranged, and adjusted that, except as provided in subsection (c) of this section, they will at all times mentioned in G.S. 20‑129, and under normal atmospheric conditions and on a level road, produce a driving light sufficient to render clearly discernible a person 200 feet ahead, but any person operating a motor vehicle upon the highways, when meeting another vehicle, shall so control the lights of the vehicle operated by him by shifting, depressing, deflecting, tilting, or dimming the headlight beams in such manner as shall not project a glaring or dazzling light to persons within a distance of 500 feet in front of such headlamp. Every new motor vehicle, other than a motorcycle or motor‑driven cycle, registered in this State after January 1, 1956, which has multiple‑beam road‑lighting equipment shall be equipped with a beam indicator, which shall be lighted whenever the uppermost distribution of light from the headlamps is in use, and shall not otherwise be lighted. Said indicator shall be so designed and located that when lighted it will be readily visible without glare to the driver of the vehicle so equipped.
(b)	Headlamps shall be deemed to comply with the foregoing provisions prohibiting glaring and dazzling lights if none of the main bright portion of the headlamp beams rises above a horizontal plane passing through the lamp centers parallel to the level road upon which the loaded vehicle stands, and in no case higher than 42 inches, 75 feet ahead of the vehicle.
(b1)	No person shall operate a motor vehicle that is equipped with any headlamps that (i) change the original design or performance of the headlamps and (ii) do not comply with Federal Motor Vehicle Safety Standard No. 108, as adopted by the National Highway Traffic Safety Administration. Any person who violates this subsection is guilty of an infraction punishable by a penalty of not more than one hundred dollars ($100.00).
(c)	Whenever a motor vehicle is being operated upon a highway, or portion thereof, which is sufficiently lighted to reveal a person on the highway at a distance of 200 feet ahead of the vehicle, it shall be permissible to dim the headlamps or to tilt the beams downward or to substitute therefor the light from an auxiliary driving lamp or pair of such lamps, subject to the restrictions as to tilted beams and auxiliary driving lamps set forth in this section.
(d)	Whenever a motor vehicle meets another vehicle on any highway it shall be permissible to tilt the beams of the headlamps downward or to substitute therefor the light from an auxiliary driving lamp or pair of such lamps subject to the requirement that the tilted headlamps or auxiliary lamp or lamps shall give sufficient illumination under normal atmospheric conditions and on a level road to render clearly discernible a person 75 feet ahead, but shall not project a glaring or dazzling light to persons in front of the vehicle: Provided, that at all times required in G.S. 20‑129 at least  two lights shall be displayed on the front of and on opposite sides of every motor vehicle other than a motorcycle, road roller, road machinery, or farm tractor.
(e)	No city or town shall enact an ordinance in conflict with this section."
SECTION 1.1.(b)  G.S. 20‑183.3(a)(2) reads as rewritten:
"(a)	Safety. – A safety inspection of a motor vehicle consists of an inspection of the following equipment to determine if the vehicle has the equipment required by Part 9 of Article 3 of this Chapter and if the equipment is in a safe operating condition:
…
(2)	Lights, as required by G.S. 20‑129 or G.S. 20‑129.1. To determine if a vehicle's headlamps are in a safe operating condition that complies with the lighting restrictions in G.S. 20‑131, a safety inspection mechanic must first determine if aftermarket headlamps are installed. If aftermarket headlamps have been installed, the mechanic must inspect the headlamps to verify the headlamps are marked "DOT," indicating compliance with the Federal Motor Vehicle Safety Standard No. 108, as adopted by the National Highway Traffic Safety Administration.
…."
SECTION 1.1.(c)  G.S. 20‑4.01 is amended by adding the following new subdivisions to read:
"§ 20‑4.01.  Definitions.
Unless the context requires otherwise, the following definitions apply throughout this Chapter to the defined words and phrases and their cognates:
…
(4c)	Counterfeit airbag. – A replacement motor vehicle inflatable occupant restraint system, including all component parts, such as the cover, sensors, controllers, inflators, and wiring that bears without authorization a mark identical or substantially similar to the genuine mark of the manufacturer of a motor vehicle.
…
(23a)	Nonfunctional airbag. – A replacement motor vehicle inflatable occupant restraint system, including all component parts, such as the cover, sensors, controllers, inflators, and wiring that has a fault that is detected by the vehicle diagnostic system after the installation procedure is completed. Nonfunctional airbag also means any object, including a counterfeit airbag, repaired airbag, or airbag component, installed to deceive the vehicle owner or operator into believing a functional airbag is installed.
…."
SECTION 1.1.(d)  G.S. 20‑71.4(a) reads as rewritten:
"(a)	It shall be unlawful for any transferor of a motor vehicle to do any of the following:
(1)	Transfer a motor vehicle up to and including five model years old when the transferor has knowledge that the vehicle has been involved in a collision or other occurrence to the extent that the cost of repairing that vehicle, excluding the cost to replace the air bag restraint system, exceeds twenty‑five percent (25%) of its fair market retail value at the time of the collision or other occurrence, without disclosing that fact in writing to the transferee prior to the transfer of the vehicle.
(2)	Transfer a motor vehicle when the transferor has knowledge that the vehicle is, or was, a flood vehicle, a reconstructed vehicle, or a salvage motor vehicle, without disclosing that fact in writing to the transferee prior to the transfer of the vehicle.
(3)	Transfer a motor vehicle when the transferor is a motor vehicle dealer who has knowledge that a counterfeit airbag or a nonfunctional airbag has been installed in the vehicle."
SECTION 1.1.(e)  This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.

UNCLAIMED LIFE INSURANCE BENEFITS
SECTION 1.2.(a)  Article 58 of Chapter 58 of the North Carolina General Statutes is amended by adding a new Part to read:
"Part 7. Unclaimed Life Insurance Benefits.
"§ 58‑58‑360.  Purpose.
This Part shall be known as the "Unclaimed Life Insurance Benefits Act."
"§ 58‑58‑370.  No preemption of Unclaimed Property Act.
Nothing in this Part shall be construed to amend, modify, or supersede the North Carolina Unclaimed Property Act, Article 4 of Chapter 116B of the General Statutes.
"§ 58‑58‑380.  Definitions.
The following definitions apply in this Part:
(1)	Account owner. – The owner of a retained asset account opened after July 1, 2015, by a resident of this State.
(2)	Annuity. – Any active annuity contract issued in this State after July 1, 2015, other than an annuity used to fund an employment‑based retirement plan or program where the insurer is not committed by terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants or that is used to fund a preneed funeral contract as defined in G.S. 90‑210.60.
(3)	Beneficiary. – An individual or other entity entitled to benefits under a policy or annuity.
(4)	Death master file or DMF. – The death master file from the United States Social Security Administration or any other database or service that an insurer may determine is substantially as inclusive as the death master file for determining that a person has reportedly died.
(5)	Death master file match or DMF match. – A search of a DMF that results in a match of a person's Social Security number or name and date of birth.
(6)	Insurer. – Any insurance company authorized to transact life insurance business in this State.
(7)	Person. – The policy insured, annuity owner, annuitant, or account owner, as applicable under the policy, annuity, or retained asset account subject to this Part.
(8)	Policy. – Any policy or certificate of life insurance issued in this State after July 1, 2015, but does not include any policy or certificate of life insurance that provides a death benefit under any of the following:
a.	An employee benefit plan subject to the Employee Retirement Income Security Act of 1974, as periodically amended, compiled at 29 U.S.C. § 1002, et seq.
b.	Any federal employee benefit program.
c.	Government plans or church plans as defined in the Employee Retirement Income Security Act of 1974, as periodically amended, 29 U.S.C. § 1002, et seq.
d.	A policy or certificate of life insurance that is used to fund a preneed funeral contract as defined in G.S. 90‑210.60.
e.	A policy or certificate of credit life or accident and health insurance.
f.	A policy of industrial life insurance as defined in G.S. 58‑58‑5.
(9)	Record‑keeping services. – Those circumstances under which the insurer has agreed with a group life insurance policyholder to be responsible for obtaining, maintaining, and administering in its own systems information about each individual insured under the policyholder's group life insurance contract at least the following information:
a.	Individual insured's Social Security number or name and date of birth.
b.	Beneficiary designation information.
c.	Coverage eligibility.
d.	Benefit amount.
e.	Premium payment status.
"§ 58‑58‑390.  Requirements for insurers.
(a)	To the extent that an insurer's records of its in‑force policies, annuities, and account owners are available electronically, an insurer shall perform a comparison of such in‑force policies, annuities, and account owners against a death master file, on a semiannual basis, to identify potential death master file matches. To the extent that an insurer's records of its in‑force policies, annuities, and account owners are not available electronically, an insurer shall perform a comparison of such in‑force policies, annuities, and account owners against a death master file, on a semiannual basis, to identify potential death master file matches, using the records most easily accessible by the insurer.
(1)	This section shall not apply to policies or annuities for which the insurer has received premiums from outside the policy value or by check, bank draft, payroll deduction, or any other similar method of active premium payment, within the 18 months immediately preceding the death master file comparison.
(2)	An insurer may comply with the requirements of this section by using the full death master file once and thereafter using the death master file update files for future comparisons.
(b)	If an insurer learns of the possible death of a person, through a DMF match or otherwise, then the insurer shall within 90 days complete a good‑faith effort, which shall be documented by the insurer, to do the following:
(1)	Confirm the death of such person against other available records and information.
(2)	Review its records to determine whether such deceased person had purchased any other products with the insurer.
(3)	Determine whether benefits may be due in accordance with any applicable policy, annuity, or retained asset account.
(4)	Provide the appropriate claims forms or instructions to the beneficiary to make a claim and notify the beneficiary of the actions necessary to submit a valid claim.
(c)	Except as prohibited by law, an insurer may disclose only the minimum necessary identifying personal information about such an insured, annuitant, account owner, or beneficiary to a person who the insurer reasonably believes may be able to assist the insurer in locating the beneficiary or a person otherwise entitled to payment of the claims proceeds.
(d)	In the event an insurer is unable to confirm the death of a person following a DMF match, an insurer may determine that no further good‑faith efforts, as described in subsection (b) of this section, are required of it with respect to such policy, annuity, or retained asset account.
(e)	An insurer or its service provider shall not charge any beneficiary or other person who may be entitled to benefits any fees or costs associated with a DMF search or the verification of a DMF match conducted pursuant to this section.
(f)	The benefits from life insurance policies, annuities, or retained asset accounts, any applicable accrued contractual interest, and interest payable under G.S. 58‑58‑110 shall first be payable to the beneficiaries or account owners as provided for in such policies, annuities, or retained asset accounts. In the event the beneficiaries or account owners cannot be found, the benefits and any associated interest shall escheat to the State as unclaimed property as set forth in Article 4 of Chapter 116B of the General Statutes.
(g)	The Commissioner may exempt an insurer from the DMF comparisons required under subsection (a) of this section if the insurer demonstrates to the commissioner's satisfaction that compliance would result in hardship to the insurer.
(h)	Nothing in this section limits an insurer from requiring a valid death certificate as part of any claims validation process or otherwise requiring compliance with the terms and conditions of the policy or annuity relative to filing and payment of claims.
"§ 58‑58‑400.  Noncompliance may constitute unfair claims settlement practice.
A pattern of failures to meet the requirements of this Part may constitute an unfair claims settlement practice under G.S. 58‑3‑100(a)(5) and G.S. 58‑63‑15. Nothing in this Part shall be construed to create or imply a private cause of action for a violation of this Part."
SECTION 1.2.(b)  The Commissioner of Insurance is authorized to promulgate rules under Article 2A of Chapter 150B of the General Statutes to implement Section 1.2(a) of this act, provided such rules shall not impose any duty or requirements not stated in this act.

BAIL BOND SHIELD AMENDMENT
SECTION 1.3.  G.S. 58‑71‑40(d1) reads as rewritten:
"(d1)	While engaged in official duties, a licensee is authorized to carry, possess, and display a shield as described in this subsection. The shield shall fulfill all of the following requirements:
(1)	Be an exact duplicate in size, shape, color, and design of the shield approved under G.S. 74C‑5(12) and pictured in 12 NCAC 07D. 0405 on May 1, 2013, except that the design may be altered by stamping, inlaying, embossing, or engraving to accommodate the license number.
(2)	Include the licensee's last name and corresponding license number in the same locations as the shield referenced in subdivision (1) of this subsection.
(3)	With reference to the shield described in subdivision (1) of this subsection, in lieu of the word "Private," the shield shall have the words "North Carolina," and in lieu of the word "Investigator," the shield shall have the words "Bail Agent."
Any shield that deviates from the design requirements as specified in this section shall be an unauthorized shield and its possession by a licensee shall constitute a violation of the statute by the licensee."

REPEAL UNNECESSARY UTILITIES PROVISION
SECTION 1.4.(a)  G.S. 62‑36.1 is repealed.
SECTION 1.4.(b)  G.S. 62‑36A is repealed.

MERCHANT EXEMPTION FROM LOCKSMITH LICENSING
SECTION 1.5.  G.S. 74F‑16 reads as rewritten:
"§ 74F‑16.  Exemptions.
The provisions of this Chapter do not apply to:
…
(6)	A merchant, or retail or hardware store, when the merchant or store does not purport to be a locksmith and lawfully (i) rekeys a lock at the time of sale of the lock, (ii) duplicates a key, including duplicating a transponder type key that requires programming, or (iii) installs as a service a lock on a door if both the door and lock were purchased from the same merchant.
…."

CLARIFY PROFESSIONAL ENGINEER EXEMPTION
SECTION 1.6.(a)  G.S. 89C‑25 reads as rewritten:
"§ 89C‑25.  Limitations on application of Chapter.
This Chapter shall not prevent the following activities:
(1)	The practice of architecture as defined in Chapter 83A of the General Statutes, landscape architecture as defined in Chapter 89A of the General Statutes, or contracting as defined in Articles 1, 2, 4, and 5 of Chapter 87 of the General Statutes.
(2)	Repealed by Session Laws 2011‑304, s. 7, effective June 26, 2011.
(3)	Repealed by Session Laws 2011‑304, s. 7, effective June 26, 2011.
(4)	Engaging in engineering or land surveying as an employee or assistant under the responsible charge of a professional engineer or professional land surveyor.
(5)	The practice of professional engineering or land surveying by any person not a resident of, and having no established place of business in this State, as a consulting associate of a professional engineer or professional land surveyor licensed under the provisions of this Chapter; provided, the nonresident is qualified for performing the professional service in the person's own state or country.
(6)	Practice by members of the Armed Forces of the United States; employees of the government of the United States while engaged in the practice of engineering or land surveying solely for the government on government‑owned works and projects; or practice by those employees of the Natural Resources Conservation Service, county employees, or employees of the Soil and Water Conservation Districts who have federal engineering job approval authority that involves the planning, designing, or implementation of best management practices on agricultural lands.
	
(7a)	The engineering or surveying activities of a person as defined by G.S. 89C‑3(5) who is engaged in manufacturing, processing, producing, or transmitting and delivering a product, and which activities are reasonably necessary and connected with the primary services performed by individuals regularly employed in the ordinary course of business by the person, provided that the engineering or surveying activity is not a holding out or an offer to the public of engineering or surveying services, as prohibited by this Chapter. The engineering and surveying services may not be offered, performed, or rendered independently from the primary services rendered by the person. For purposes of this subdivision, "activities reasonably necessary and connected with the primary service" include the following:
a.	Installation or servicing of the person's product by employees of the person conducted outside the premises of the person's business.
b.	Design, acquisition, installation, or maintenance of machinery, equipment, or apparatus incidental to the manufacture or installation of the product performed by employees of the person upon property owned, leased, or used by the person.
c.	Research and development performed in connection with the manufacturing, processing, or production of the person's product by employees of the person.
Engineering or surveying activities performed pursuant to this subdivision, where the safety of the public is directly involved, shall be under the responsible charge of a licensed professional engineer or licensed professional surveyor.
(8)	The (i) preparation of fire sprinkler planning and design drawings by a fire sprinkler contractor licensed under Article 2 of Chapter 87 of the General Statutes, or (ii) the performance of internal engineering or survey work by a manufacturing or communications common carrier company, or by a research and development company, or by employees of those corporations provided that the work is in connection with, or incidental to products of, or nonengineering services rendered by those corporations or their affiliates.
(9)	The routine maintenance or servicing of machinery, equipment, facilities or structures, the work of mechanics in the performance of their established functions, or the inspection or supervision of construction by a foreman, superintendent, or agent of the architect or professional engineer, or services of an operational nature performed by an employee of a laboratory, a manufacturing plant, a public service corporation, or governmental operation.
(10)	The design of land application irrigation systems for an animal waste management plan, required by G.S. 143‑215.10C, by a designer who exhibits, by at least three years of relevant experience, proficiency in soil science and basic hydraulics, and who is thereby listed as an Irrigation Design Technical Specialist by the North Carolina Soil and Water Conservation Commission."
SECTION 1.6.(b)  G.S. 89C‑19 reads as rewritten:
"§ 89C‑19.  Public works; requirements where public safety involved.
This State and its political subdivisions such as counties, cities, towns, or other political entities or legally constituted boards, commissions, public utility companies, or authorities, or officials, or employees of these entities shall not engage in the practice of engineering or land surveying involving either public or private property where the safety of the public is directly involved without the project being under the direct supervision of a professional engineer for engineering projects, or a professional land surveyor for land surveying projects, as provided for the practice of the respective professions by this Chapter.
An official or employee of the State or any political subdivision specified in this section, holding the positions set out in this section as of June 19, 1975, shall be exempt from the provisions of this section so long as such official or employee is engaged in substantially the same type of work as is involved in the present position.
Nothing in this section shall be construed to prohibit inspection, maintenance and service work done by employees of the State of North Carolina, any political subdivision of the State, or any municipality including construction, installation, servicing, and maintenance by regular full‑time employees of, secondary roads and drawings incidental to work on secondary roads, streets, street lighting, traffic‑control signals, police and fire alarm systems, waterworks, steam, electric and sewage treatment and disposal plants, the services of superintendents, inspectors or foremen regularly employed by the State of North Carolina or any political subdivision of the State, or municipal corporation.
The provisions in this section shall not be construed to alter or modify the requirements of Article 1 of Chapter 133 of the General Statutes."
SECTION 1.6.(c)  G.S. 143‑64.31 is amended by adding new subsection to read:
"(f)	Except as provided in this subsection, no work product or design may be solicited, submitted, or considered as part of the selection process under this Article; and no costs or fees, other than unit price information, may be solicited, submitted, or considered as part of the selection process under this Article. Examples of prior completed work may be solicited, submitted, and considered when determining demonstrated competence and qualification of professional services; and discussion of concepts or approaches to the project, including impact on project schedules, is encouraged."

ADJUST THE UTILITY REGULATORY FEE
SECTION 1.8.(a)  G.S. 62‑302 reads as rewritten:
"§ 62‑302.  Regulatory fee.
(a)	Fee Imposed. – It is the policy of the State of North Carolina to provide fair regulation of public utilities in the interest of the public, as provided in G.S. 62‑2. The cost of regulating public utilities is a burden incident to the privilege of operating as a public utility. Therefore, for the purpose of defraying the cost of regulating public utilities, every public utility subject to the jurisdiction of the Commission shall pay a quarterly regulatory fee, in addition to all other fees and taxes, as provided in this section. The fees collected shall be used only to pay the expenses of the Commission and the Public Staff in regulating public utilities in the interest of the public.
It is also the policy of the State to provide limited oversight of certain electric membership corporations as provided in G.S. 62‑53. Therefore, for the purpose of defraying the cost of providing the oversight authorized by G.S. 62‑53 and G.S. 117‑18.1, each fiscal year each electric membership corporation whose principal purpose is to furnish or cause to be furnished bulk electric supplies at wholesale as provided in G.S. 117‑16 shall pay an annual fee as provided in this section.
(b)	Public Utility Rate. –
(1)	Repealed by Session Laws 2000‑140, s. 56, effective July 21, 2000.
(2)	For noncompetitive jurisdictional revenues as defined in sub‑subdivision (4)a. of this subsection, the public utility regulatory fee for each fiscal year is the greater of (i) a percentage rate, established by the General Assembly, of each public utility's noncompetitive jurisdictional revenues for each quarter or (ii) six dollars and twenty‑five cents ($6.25) each quarter. For subsection (h) competitive jurisdictional revenues, as defined in sub‑subdivision (4)b. of this subsection, and subsection (m) competitive jurisdictional revenues, as defined in sub‑subdivision (4)c. of this subsection, the public utility regulatory fee for each fiscal year is a percentage rate established by the General Assembly of each public utility's competitive jurisdictional revenues for each quarter.
When the Commission prepares its budget request for the upcoming fiscal year, the Commission shall propose a percentage rate of the public utility regulatory fee. For fiscal years beginning in an odd‑numbered year, that proposed rate shall be included in the budget message the Governor submits to the General Assembly pursuant to G.S. 143C‑3‑5. For fiscal years beginning in an even‑numbered year, that proposed rate shall be included in a special budget message the Governor shall submit to the General Assembly. The General Assembly shall set the percentage rate of the public utility regulatory fee by law.
The percentage rate may not exceed the amount necessary to generate funds sufficient to defray the estimated cost of the operations of the Commission and the Public Staff for the upcoming fiscal year, including a reasonable margin for a reserve fund. The amount of the reserve may not exceed the estimated cost of operating the Commission and the Public Staff for the upcoming fiscal year. In calculating the amount of the reserve, the General Assembly shall consider all relevant factors that may affect the cost of operating the Commission or the Public Staff or a possible unanticipated increase or decrease in North Carolina jurisdictional revenues.
(3)	If the Commission, the Public Staff, or both experience a revenue shortfall, the Commission shall implement a temporary public utility regulatory fee surcharge to avert the deficiency that would otherwise occur. In no event may the total percentage rate of the public utility regulatory fee plus any surcharge established by the Commission exceed twenty‑five hundredths percent (0.25%).
(4)	As used in this section:
a.	"Noncompetitive jurisdictional revenues" means all revenues derived or realized from intrastate tariffs, rates, and charges approved or allowed by the Commission or collected pursuant to Commission order or rule, but not including tap‑on fees or any other form of contributions in aid of construction.
b.	"Subsection (h) competitive jurisdictional revenues" means all revenues derived from retail services provided by local exchange companies and competing local providers that have elected to operate under G.S. 62‑133.5(h).
c.	"Subsection (m) competitive jurisdictional revenues" means all revenues derived from retail services provided by local exchange companies and competing local providers that have elected to operate under G.S. 62‑133.5(m).
…
(e)	Recovery of Fee Increase. – If a utility's regulatory fee obligation is increased, the Commission shall either adjust the utility's rates to allow for the recovery of the increased fee obligation or approve the utility's request for an accounting order allowing deferral of the increase in the fee obligation."
SECTION 1.8.(b)  The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) for each public utility's North Carolina subsection (h) competitive jurisdictional revenues as defined by G.S. 62‑302(b)(4)b. earned during each quarter that begins on or after July 1, 2015, is six hundredths of one percent (0.06%).
SECTION 1.8.(c)  The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) for each public utility's North Carolina subsection (h) competitive jurisdictional revenues as defined by G.S. 62‑302(b)(4)b. earned during each quarter that begins on or after July 1, 2016, is four hundredths of one percent (0.04%).
SECTION 1.8.(d)  The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) for each public utility's North Carolina subsection (m) competitive jurisdictional revenues as defined by G.S. 62‑302(b)(4)c. earned during each quarter that begins on or after July 1, 2015, is five hundredths of one percent (0.05%).
SECTION 1.8.(e)  The percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) for each public utility's North Carolina subsection (m) competitive jurisdictional revenues as defined by G.S. 62‑302(b)(4)c. earned during each quarter that begins on or after July 1, 2016, is two hundredths of one percent (0.02%).
SECTION 1.8.(f)  For the 2015‑2016 and 2016‑2017 fiscal years, the percentage rate to be used in calculating the public utility regulatory fee under G.S. 62‑302(b)(2) for each public utility's North Carolina noncompetitive jurisdictional revenues as defined by G.S. 62‑302(b)(4)a. shall be adjusted to reflect the decrease in the total regulatory fee collected as a result of Section 2 and Section 3 of this act and shall be set to ensure the total regulatory fee collected for each fiscal year is at least an amount sufficient to defray the cost of the operations of the Commission and the Public Staff for the upcoming fiscal year, including a reasonable margin for a reserve fund.
SECTION 1.8.(g)  This section becomes effective July 1, 2015.

SUMMARY EJECTMENT SERVICE OF PROCESS
SECTION 1.9.(a)  G.S. 42‑28 reads as rewritten:
"§ 42‑28.  Summons issued by clerk.
When the lessor or his assignee files a complaint pursuant to G.S. 42‑26 or 42‑27, and asks to be put in possession of the leased premises, the clerk of superior court shall issue a summons requiring the defendant to appear at a certain time and place not to exceed seven days from the issuance of the summons, excluding weekends and legal holidays, to answer the complaint. The plaintiff may claim rent in arrears, and damages for the occupation of the premises since the cessation of the estate of the lessee, not to exceed the jurisdictional amount established by G.S. 7A‑210(1), but if he omits to make such claim, he shall not be prejudiced thereby in any other action for their recovery. After issuance of the summons, the clerk shall either return the summons to the plaintiff or shall forward the summons to the Sheriff, at the election of the plaintiff."
SECTION 1.9.(b)  G.S. 42‑29 reads as rewritten:
"§ 42‑29.  Service of summons.
(a)	The officer receiving the summons shall mail a copy of the summons and complaint to the defendant no later than the end of the next business day or as soon as practicable at the defendant's last known address in a stamped addressed envelope provided by the plaintiff to the action. The officer may, within five days of the issuance of the summons, attempt to telephone the defendant requesting that the defendant either personally visit the officer to accept service, or schedule an appointment for the defendant to receive delivery of service from the officer. If the officer does not attempt to telephone the defendant or the attempt is unsuccessful or does not result in service to the defendant, the officer shall make at least one visit to the place of abode of the defendant within five days of the issuance of the summons, but at least two days prior to the day the defendant is required to appear to answer the complaint, excluding legal holidays, at a time reasonably calculated to find the defendant at the place of abode to attempt personal delivery of service. He then shall deliver a copy of the summons together with a copy of the complaint to the defendant, or leave copies thereof at the defendant's dwelling house or usual place of abode with some person of suitable age and discretion then residing therein. If such service cannot be made the officer shall affix copies to some conspicuous part of the premises claimed and make due return showing compliance with this section.
(b)	As used in this section and for purposes of this Chapter only, the term "officer" means either (i) a person over the age of 21 years who is not a party to the action and is employed by the plaintiff to serve the summons and the complaint in summary ejectment in accordance with this Article or (ii) the sheriff of the county where the premises is located."
SECTION 1.9.(c)  This section becomes effective October 1, 2014.

CLARIFY EFFECTIVE DATE OF DEFINITION OF DISCHARGE OF WASTE
SECTION 1.10.  Section 17 of S.L. 2012‑187 reads as rewritten:
"SECTION 17. Section 11 of this act is effective when it becomes law and applies to contested cases filed or pending on or after that date. Except as otherwise provided, this act is effective when it becomes law."

CLARIFY MEMBERSHIP UNDER INSURANCE GUARANTY ASSOCIATION ACT
SECTION 1.11.(a)  G.S. 58‑48‑20 reads as rewritten:
"§ 58‑48‑20.  Definitions.
As used in this Article:
…
(4)	"Covered claim" means an unpaid claim, including one of unearned premiums, which is in excess of fifty dollars ($50.00) and arises out of and is within the coverage and not in excess of the applicable limits of an insurance policy to which this Article applies as issued by an insurer, if such insurer becomes an insolvent insurer after the effective date of this Article and (i) the claimant or insured is a resident of this State at the time of the insured event; or (ii) the property from which the claim arises is permanently located in this State. "Covered claim" shall not include any amount awarded (i) as punitive or exemplary damages; (ii) sought as a return of premium under any retrospective rating plan; or (iii) due any reinsurer, insurer, insurance pool, or underwriting association, as subrogation or contribution recoveries or otherwise. "Covered claim" also shall not include fines or penalties, including attorneys fees, imposed against an insolvent insurer or its insured or claims of any claimant whose net worth exceeds fifty million dollars ($50,000,000) on December 31 of the year preceding the date the insurer becomes insolvent. The term "covered claim" includes all claims incurred against a workers' compensation group self‑insurer, licensed and regulated under Part 1 of Article 47 of this Chapter, that merged with a member insurer on or after January 1, 1997.
.…"
SECTION 1.11.(b)  G.S. 97‑131 reads as rewritten:
"§ 97‑131.  Creation.
(a)	There is created a nonprofit unincorporated legal entity to be known as the North Carolina Self‑Insurance Security Association. The Association is to provide mechanisms for the payment of covered claims against member self‑insurers, to avoid excessive delay in payment of covered claims, to avoid financial loss to claimants because of the insolvency of a member self‑insurer, to assist the Commissioner in the detection of self‑insurer insolvencies, to fund the Association Aggregate Security System, and to capitalize the Fund to ensure the availability of financial resources to pay covered claims and to fund the activities of the Association.
(b)	All individual self‑insurers and group self‑insurers shall be and remain members of the Association as a condition of being licensed to self‑insure in this State. The Association shall perform its functions under a Plan of Operation established or amended, or both, by the Board and shall exercise its powers through the Board.
(1)	An individual self‑insurer or a group self‑insurer shall be deemed to be a member of the Association for purposes of another member's insolvency, as defined in G.S. 97‑135, when:
a.	The individual self‑insurer or group self‑insurer is a member of the Association when an insolvency occurs, or
b.	The individual self‑insurer or group self‑insurer has been a member of the Association at some point in time during the 12‑month period immediately preceding the insolvency in question.
(2)	An individual self‑insurer or a group self‑insurer shall be deemed to be a member of the Association for purposes of its own insolvency if it is a member when the compensable injury occurs.
(3)	In determining the membership of the Association for the purposes of subdivisions (1) and (2) of this subsection for any date after the effective date of this Article, no individual self‑insurer or group self‑insurer may be deemed to be a member of the Association on any date after the effective date of this Article, unless that employer is on that date licensed as an individual self‑insurer by the Commissioner under Article 5 of this Chapter or a group of employers is at that time licensed as a group self‑insurer by the Commissioner under Article 47 of Chapter 58 of the General Statutes.
(c)	The membership in the Association of an individual self‑insurer or group self‑insurer shall terminate for purposes of another member's insolvency or any other purpose upon the merger of the individual self‑insurer or group self‑insurer to a mutual insurance company pursuant to Article 8 of Chapter 58 of the General Statutes or a stock insurance company pursuant to Article 7 of Chapter 58 of the General Statutes and Article 11 of Chapter 55 of the General Statutes on or after January 1, 1997."

PART II. STATE AND LOCAL GOVERNMENT REGULATION

NOTIFY PROPERTY OWNERS OF RIGHT OF WAY TRANSFERS
SECTION 2.1.(a)  G.S. 136‑66.10 reads as rewritten:
"§ 136‑66.10.  Dedication of right‑of‑way under local ordinances.
(a)	Whenever a tract of land located within the territorial jurisdiction of a city or county's zoning or subdivision control ordinance or any other land use control ordinance authorized by local act is proposed for subdivision or for use pursuant to a zoning or building permit, and a portion of it is embraced within a corridor for a street or highway on a plan established and adopted pursuant to G.S. 136‑66.2, a city or county zoning or subdivision ordinance may provide for the dedication of right‑of‑way within that corridor pursuant to any applicable legal authority, or:
(1)	A city or county may require an applicant for subdivision plat approval or for a special use permit, conditional use permit, or special exception, or for any other permission pursuant to a land use control ordinance authorized by local act to dedicate for street or highway purpose, the right‑of‑way within such corridor if the city or county allows the applicant to transfer density credits attributable to the dedicated right‑of‑way to contiguous land owned by the applicant. No dedication of right‑of‑way shall be required pursuant to this subdivision unless the board or agency granting final subdivision plat approval or the special use permit, conditional use permit, special exception, or permission shall find, prior to the grant, that the dedication does not result in the deprivation of a reasonable use of the original tract and that the dedication is either reasonably related to the traffic generated by the proposed subdivision or use of the remaining land or the impact of the dedication is mitigated by measures provided in the local ordinance.
(2)	If a city or county does not require the dedication of right‑of‑way within the corridor pursuant to subdivision (1) of this subsection or other applicable legal authority, but an applicant for subdivision plat approval or a zoning or building permit, or any other permission pursuant to a land use control ordinance authorized by local act elects to dedicate the right‑of‑way, the city or county may allow the applicant to transfer density credits attributable to the dedicated right‑of‑way to contiguous land that is part of a common development plan or to transfer severable development rights attributable to the dedicated right‑of‑way to noncontiguous land in designated receiving districts pursuant to G.S. 136‑66.11.
(3)	Units of local government that require or accept right‑of‑way dedications under this subsection shall notify the applicant and the property owner when the local government begins review of or negotiations for a right‑of‑way dedication and associated density credit transfer, whichever first occurs. If the property owner is not the applicant, then the property owner shall be given notification of right‑of‑way dedications and any related density credit transfers under this subsection. The notification shall be sent to the last known address for the owner and shall include a copy of this section, and any local ordinances, policies, or procedures governing the calculation and application of the density credit transfer.
(b)	When used in this section, the term "density credit" means the potential for the improvement or subdivision of part or all of a parcel of real property, as permitted under the terms of a zoning and/or subdivision ordinance, and/or other land use control ordinance authorized by local act, expressed in dwelling unit equivalents or other measures of development density or intensity or a fraction or multiple of that potential that may be transferred to other portions of the same parcel or to contiguous land in that is part of a common development plan."
SECTION 2.1.(b)  Section 2.1 becomes effective October 1, 2014, and applies to dedications occurring on or after that date.

DOT CONDEMNATION/CORRIDOR MAP CHANGES
SECTION 2.2.(a)  G.S. 136‑113 reads as rewritten:
"§ 136‑113.  Interest as a part of just compensation.
To said amount awarded as damages by the commissioners or a jury or judge, the judge shall, as a part of just compensation, add interest at the legal rate as provided in G.S. 24‑1 on said amount from the date of taking to the date the judgment is paid; but interest shall not be allowed from the date of deposit on so much thereof as shall have been paid into court as provided in this Article."
SECTION 2.2.(b)  G.S. 136‑119 reads as rewritten:
"§ 136‑119.  Costs and appeal.
(a)	The Department of Transportation shall pay all court costs taxed by the court. Either party shall have a right of appeal to the Supreme Court for errors of law committed in any proceedings provided for in this Article in the same manner as in any other civil actions and it shall not be necessary that an appeal bond be posted.
(b)	The court having jurisdiction of the condemnation action instituted by the Department of Transportation to acquire real property by condemnation shall award the owner of any right, or title to, or interest in, such real property such sum as will in the opinion of the court reimburse such owner for his reasonable cost, disbursements, and expenses, including reasonable attorney fees, appraisal, and engineering fees, actually incurred because of the condemnation proceedings, if any of the following apply:
(1)	The final judgment is that the Department of Transportation cannot acquire real property by condemnation.
(2)	The proceeding is abandoned by the Department of Transportation. 
(3)	The final judgment exceeds the amount of the initial deposit by twenty‑five percent (25%) or more. Attorneys' fees awarded pursuant to this subdivision shall not exceed one‑third of the difference between the judgment award, plus interest, and the initial deposit.
(c)	The judge rendering a judgment for the plaintiff in a proceeding brought under G.S. 136‑111 awarding compensation for the taking of property, shall determine and award or allow to such plaintiff, as a part of such judgment, such sum as will in the opinion of the judge reimburse such plaintiff for his reasonable cost, disbursements and expenses, including reasonable attorney, appraisal, and engineering fees, actually incurred because of such proceeding."
SECTION 2.2.(c)  G.S. 136‑44.51 reads as rewritten:
"§ 136‑44.51.  Effect of transportation corridor official map.
(a)	After a transportation corridor official map is filed with the register of deeds, no building permit shall be issued for any building or structure or part thereof located within the transportation corridor, nor shall approval of a subdivision, as defined in G.S. 153A‑335 and G.S. 160A‑376, be granted with respect to property within the transportation corridor. The Secretary of Transportation or his designee, the director of a regional public transportation authority, or the director of a regional transportation authority, as appropriate, shall be notified within 10 days of all submittals for corridor map determination, as provided in subsections (b) and (c) of this section.
(b)	In any event, no application for building permit issuance or subdivision plat approval for a tract subject to a valid transportation corridor official map shall be delayed by the provisions of this section for more than  one year from the date of its original submittal to the appropriate local jurisdiction. A submittal to the local jurisdiction for corridor map determination shall require only the name of the property owner, the street address of the property parcel, the parcel number or tax identification number, a vicinity map showing the location of the parcel with respect to nearby roads and other landmarks, a sketch of the parcel showing all existing and proposed structures or other uses of the property, and a description of the proposed improvements. If the impact of an adopted corridor on a property submittal for corridor map determination is still being reviewed after the  one‑year period established pursuant to this subsection, the entity that adopted the transportation corridor official map affecting the issuance of building permits or subdivision plat approval shall issue approval for an otherwise eligible request or initiate acquisition proceedings on the affected properties. If the entity that adopted the transportation corridor official map has not initiated acquisition proceedings or issued approval within the time limit established pursuant to this subsection, an applicant within the corridor may treat the real property as unencumbered and free of any restriction on sale, transfer, or use established by this Article.
(c)	No submittal to a local jurisdiction for corridor map determination shall be construed to be an application for building permit issuance or subdivision plat approval. The provisions of this section shall not apply to valid building permits issued prior to August 7, 1987, or to building permits for buildings and structures which existed prior to the filing of the transportation corridor, provided the size of the building or structure is not increased and the type of building code occupancy as set forth in the North Carolina Building Code is not changed."
SECTION 2.2.(d)  Sections 2.2(a) and 2.2(b) of this act become effective July 1, 2014, and apply to condemnation actions filed on or after that date. Sections 2.2(c) and 2.2(d) of this act become effective July 1, 2014.

NOTICE TO CHRONIC VIOLATORS
SECTION 2.5.(a)  G.S. 160A‑200 is repealed.
SECTION 2.5.(b)  G.S. 160A‑200.1 reads as rewritten:
"§ 160A‑200.1.  Annual notice to chronic violators of public nuisance ordinance.
(a)	A city may notify a chronic violator of the city's public nuisance ordinance that, if the violator's property is found to be in violation of the ordinance, the city shall, without further notice in the calendar year in which notice is given, take action to remedy the violation, and the expense of the action shall become a lien upon the property and shall be collected as unpaid taxes. 
(b)	The notice shall be sent by registered or certified mail. When service is attempted by registered or certified mail, a copy of the notice may also be sent by regular mail. Service shall be deemed sufficient if the registered or certified mail is unclaimed or refused, but the regular mail is not returned by the post office within 10 days after the mailing. If service by regular mail is used, a copy of the notice shall be posted in a conspicuous place on the premises affected. 
(c)	A municipality may also give notice to a chronic violator of the municipality's overgrown vegetation ordinance in accordance with this section.
(d)	For purposes of this section, a chronic violator is a person who owns property whereupon, in the previous calendar year, the city gave notice of violation at least three times under any provision of the public nuisance ordinance."

ALLOW FOR DIFFERENTIAL TREATMENT OF FRATERNITIES AND SORORITIES IN ZONING
SECTION 2.6.(a)  G.S. 153A‑340(k) reads as rewritten:
"(k)	With respect to fraternities and sororities, a zoning or unified development ordinance may differentiate in terms of the regulations applicable to fraternities or sororities between those fraternities or sororities that are approved or recognized by a college or university and those that are not only as follows:
(1)	The ordinance shall permit a fraternity or sorority suspended or not recognized at least two years to reestablish approval or recognition.
(2)	The ordinance shall permit a fraternity or sorority seeking approval or recognition at least three years to establish approval or recognition.
(3)	The ordinance shall require that a property may not be occupied successively by a fraternity or sorority seeking to reestablish approval or recognition and a fraternity or sorority seeking approval or recognition, and vice versa, unless the property is occupied by a fraternity or sorority approved or recognized for at least 12 successive months between the two."
SECTION 2.6.(b)  G.S. 160A‑381(g) reads as rewritten:
"(g)	With respect to fraternities and sororities, a zoning or unified development ordinance may differentiate in terms of the regulations applicable to fraternities or sororities between those fraternities or sororities that are approved or recognized by a college or university and those that are not only as follows:
(1)	The ordinance shall permit a fraternity or sorority suspended or not recognized at least two years to reestablish approval or recognition.
(2)	The ordinance shall permit a fraternity or sorority seeking approval or recognition at least three years to establish approval or recognition.
(3)	The ordinance shall require that a property may not be occupied successively by a fraternity or sorority seeking to reestablish approval or recognition and a fraternity or sorority seeking approval or recognition, and vice versa, unless the property is occupied by a fraternity or sorority approved or recognized for at least 12 successive months between the two."

REPEAL PROTEST PETITIONS
SECTION 2.7.(a)  G.S. 160A‑385(a) is repealed.
SECTION 2.7.(b)  G.S. 160A‑386 is repealed.
SECTION 2.7.(c)  G.S. 122C‑403(3) reads as rewritten:
"(3)	Regulate the development of the reservation in accordance with the powers granted in Article 19, Parts 2, 3, 3C, 5, 6, and 7, of Chapter 160A of the General Statutes. The Secretary may not, however, grant a special use permit, a conditional use permit, or a special exception under Part 3 of that Article. In addition, the Secretary is not required to notify landowners of zoning classification actions under G.S. 160A‑384, but the Secretary shall give the mayor of the Town of Butner at least 14 days' advance written notice of any proposed zoning change. The Secretary may designate Advisory establish a board to act like a Board of Adjustment to make recommendations to the Secretary concerning implementation of plans for the development of the reservation. When acting as a Board of Adjustment, Advisory that board shall be subject to subsections (b), (c), (d), (f), and (g) of G.S. 160A‑388."
SECTION 2.7.(d)  This section also repeals any local act authority for submission, review, or action by any municipality upon any zoning protest petition, whether or not enacted as a provision in a municipal charter.

REPEAL OBSOLETE DEPARTMENT OF INSURANCE STATUTES
SECTION 2.9.(a)  G.S. 58‑2‑165(b) reads as rewritten:
"(b)	The Commissioner may require statements under this  section and G.S. 58‑2‑190 to be filed in a format that can be read by electronic data processing equipment, provided that this subsection does not apply to an audited financial statement prepared by a certified public accountant that is submitted by a town or county mutual pursuant to subsection (a1) of this section."
SECTION 2.9.(b)  G.S. 58‑2‑170 is repealed.
SECTION 2.9.(c)  G.S. 58‑3‑191 is repealed.
SECTION 2.9.(d)  G.S. 58‑36‑3(c) is repealed.
SECTION 2.9.(e)  G.S. 58‑40‑130(e) is repealed.
SECTION 2.9.(f)  G.S. 58‑50‑95 is repealed.
SECTION 2.9.(g)  G.S. 58‑67‑140(a)(7) reads as rewritten:
"(7)	Has knowingly published or made to the Department or to the public any false statement or report, including any report or any data that serves as the basis for any report."
SECTION 2.9.(h)  G.S. 135‑48.51(1) is repealed.

POST‑ARREST PHOTOGRAPHIC IMAGES NOT PUBLIC
SECTION 2.10.(a)  G.S. 15A‑502 is amended by adding a new subsection to read:
"(f)	A photograph of a person charged with the commission of a misdemeanor or felony taken by a law enforcement officer or agency pursuant to this section is confidential and exempt from disclosure as a public record under Chapter 132 of the General Statutes, except that the photograph may be disclosed to the public if (i) the person is charged with a felony or (ii) the officer or agency determines that release of the photograph is reasonably necessary to secure the public's safety. Any photograph exempt from disclosure under this subsection shall become public upon conviction of the person charged."
SECTION 2.10.(b)  This section is effective when it becomes law and applies as to persons charged with a misdemeanor or felony on or after that date.

IMPROVE ADMINISTRATIVE PROGRAM MONITORING AT DPI
SECTION 2.11.(a)  The Department of Public Instruction shall increase the efficiency of school transportation services by taking the following actions:
(1)	Reduce the budget rating formula for school bus operations by one percent (1%) annually beginning in fiscal year 2014‑2015 until fiscal year 2018‑2019 when the buffer reaches five percent (5%).
(2)	Limit the statewide inventory of spare school buses that meet the replacement criteria to ten percent (10%) of the total statewide inventory.
(3)	Develop and implement a replacement part inventory management policy that ensures replacement part inventories are reduced to levels that are sufficient to meet the operational requirement of the school bus transportation program. The Department shall report the policy to the Joint Legislative Education Oversight Committee and the Fiscal Research Division by December 31, 2014.
SECTION 2.11.(b)  G.S. 115C‑522 reads as rewritten:
"§ 115C‑522.  Provision of equipment for buildings.
(a)	It shall be the duty of local boards of education to purchase or exchange all supplies, equipment, and materials, and these purchases shall be made in accordance with Article 8 of Chapter 143 of the General Statutes. Except as provided in subsection (a1) of this section, these purchases may be made from contracts made by the Department of Administration. Title to instructional supplies, office supplies, fuel and janitorial supplies, enumerated in the current expense fund budget and purchased out of State funds, shall be taken in the name of the local board of education which shall be responsible for the custody and replacement: Provided, that no contracts shall be made by any local school administrative unit for purchases unless provision has been made in the budget of the unit to pay for the purchases, unless surplus funds are on hand to pay for the purchases, or unless the contracts are made pursuant to G.S. 115C‑47(28) and G.S. 115C‑528 and adequate funds are available to pay in the current fiscal year the sums obligated for the current fiscal year. The State Board of Education shall adopt rules regarding equipment standards for supplies, equipment, and materials related to student transportation. The State Board may adopt guidelines for any commodity that needs safety features. If a commodity that needs safety features is available on statewide term contract, any guidelines adopted by the State Board must at a minimum meet the safety standards of the statewide term contract. Compliance with Article 8 of Chapter 143 of the General Statutes is not mandatory for the purchase of published books, manuscripts, maps, pamphlets, and periodicals.
(1)	Where competition is available, local school administrative units may utilize the:
a.	E‑Quote service of the NC E‑Procurement system as one means of solicitation in seeking informal bids for purchases subject to the bidding requirements of G.S. 143‑131; and
b.	Division of Purchase and Contract's electronic Interactive Purchasing System as one means of advertising formal bids on purchases subject to the bidding requirements of G.S. 143‑129 and applicable rules regarding advertising. This sub‑subdivision does not prohibit a local school administrative unit from using other methods of advertising.
(2)	In order to provide an efficient transition of purchasing procedures, the Secretary of the Department of Administration and the local school administrative units shall establish a local school administrative unit purchasing user group. The user group shall be comprised of a proportionate number of representatives from the Department of Administration and local school administrative unit purchasing and finance officers. The user group shall examine any issues that may arise between the Department of Administration and local school administrative units, including the new relationship between the Department and the local school administrative units, the appropriate exchange of information, the continued efficient use of E‑Procurement, appropriate bid procedures, and any other technical assistance that may be necessary for the purchase of supplies and materials.
(a1)	The Department of Public Instruction, in consultation with the Department of Administration, shall establish term contracts for those school bus replacement parts with statewide annual sales exceeding one hundred thousand dollars ($100,000). Local boards of education shall purchase school bus replacement parts from these contracts unless the purchase price from noncertified sources, including the cost of delivery, is less than the cost under the State term contract and the replacement parts purchased are the same or substantially similar in quality, service, and performance as those items available under the State term contract.
…."
SECTION 2.11.(c)  The Department of Public Instruction shall revise the State inspection process for county school bus maintenance operations to ensure school bus safety and reliability by incorporating school bus inspection, maintenance, and utilization information from the school bus fleet management system to identify noncompliant county school bus maintenance facilities and improve its oversight of local school bus operations. The Department shall report the revised inspection process as well as the associated implementation schedule to the Joint Legislative Education Oversight Committee by December 31, 2014.
SECTION 2.11.(d)  The Department of Public Instruction shall reduce the operational requirements of the Textbook Services program by eliminating the following positions:
Post Title					Position Number
	Accounting Technician			60009643
	Accounting Technician			60009644
	Processing Assistant			60009646
	Stock Clerk II				60009640
	Stock Clerk II				60009642
	Stock Clerk II				60009648
SECTION 2.11.(e)  The Department of Public Instruction shall jointly develop a plan with the Department of Administration to reallocate unneeded textbook warehouse space to other State agencies. The plan shall identify the amount of unneeded space and include estimated cost‑savings resulting from other State agencies using the excess warehouse space instead of leasing space. The Department of Public Instruction and the Department of Administration shall jointly submit the plan to the Joint Legislative Education Oversight Committee and to the Fiscal Research Division by December 31, 2014.
SECTION 2.11.(f)  In order to determine the cost‑effectiveness and continued need for the services provided by the Plant Operation and School Planning sections of the Department of Public Instruction, the Department shall develop and implement a process for monitoring time and resources required for the services provided by these sections and collect and compile information during fiscal year 2014‑2015 from local school boards to measure the benefits the local boards receive from the services provided. The Department shall report its findings to the Joint Legislative Education Oversight Committee and to the Fiscal Research Division by September 1, 2015.
SECTION 2.11.(g)  In order to minimize workers' compensation costs funded by State appropriations, the Department of Instruction shall develop model loss prevention and return‑to‑work programs to be adopted by the State Board of Education to be used by local school boards. The model programs should be designed to reduce the number of injuries resulting in workers' compensation claims and ensure injured employees with workers' compensation claims return to work in accordance with current State Board of Education policy.
SECTION 2.11.(h)  G.S. 115C‑47 is amended by adding a new subdivision to read:
"§ 115C‑47.  Powers and duties generally.
In addition to the powers and duties designated in G.S. 115C‑36, local boards of education shall have the power or duty:
…
(25b)	To Implement Injury Prevention and Return‑to‑Work Programs. – Local board of education shall implement loss prevention and return‑to‑work programs based on models adopted by the State Board of Education.
…."
SECTION 2.11.(i)  G.S. 115C‑12 is amended by adding a new subdivision to read:
"§ 115C‑12.  Powers and duties of the Board generally.
The general supervision and administration of the free public school system shall be vested in the State Board of Education. The State Board of Education shall establish policy for the system of free public schools, subject to laws enacted by the General Assembly. The powers and duties of the State Board of Education are defined as follows:
…
(42)	To Create a Performance Management System. – In order to create an effective performance management system to evaluate the performance of the administrative service programs and activities provided by the Department of Public Instruction, the State Board of Education shall adopt strategic goals to guide those programs and activities toward the achievement of the vision for the public school system."
SECTION 2.11.(j)  G.S. 115C‑21(a) is amended by adding a new subdivision to read:
"§ 115C‑21.  Powers and duties generally.
(a)	Administrative Duties. – Subject to the direction, control, and approval of the State Board of Education, it shall be the duty of the Superintendent of Public Instruction:
…
(8)	To report to the Joint Legislative Education Oversight Committee by December 31, 2014, and annually thereafter on the performance of each administrative support program in the performance management system described in G.S. 115C‑23. The report shall identify the contribution of each administrative program and shall describe how the performance information was used toward the achievement of the strategic goals adopted by the State Board of Education pursuant to G.S. 115C‑12(42)."
SECTION 2.11.(k)  Article 3 of Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C‑23.  Performance management system.
(a)	The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee by December 31, 2014, and annually thereafter on the performance of each strategic objective identified by the State Board of Education pursuant to G.S. 115C‑12(42). The report shall include the following:
(1)	A description of the measures used to evaluate achievement of each strategic objective, to include the performance target, which clearly defines what level of work is desired and can serve as a guidepost for judging whether progress is being made on the schedule and at the levels originally proposed.
(2)	The most recent performance, as identified from each associated performance measure.
(3)	A comparison of the most recent performance with the performance target.
(b)	The Department of Public Instruction shall develop a performance management system for administrative support programs to include processes for identifying and monitoring the following:
(1)	The objectives and associated performance outcomes for each program, including measures and targets to evaluate whether programs are effectively achieving each of the objectives.
(2)	The outputs produced by each program activity to include the number of outputs and associated unit cost, along with targets for activity efficiency improvements.
(3)	Procedures that ensure the efficient and effective use of State resources to perform each activity."
SECTION 2.11.(l)  Sections 2.11(b) and 2.11(h) of this act become effective January 1, 2015. Section 2.11(b) applies to purchases made on or after that date. Section 2.11(d) becomes effective June 30, 2014. The remainder of this section is effective when it becomes law.

COMPLIANCE WITH BUILDING CODE INSPECTION REQUIREMENTS
SECTION 2.13.(a)  G.S. 153A‑360 reads as rewritten:
"§ 153A‑360.  Inspections of work in progress.
Subject to the provisions of G.S. 153A‑352(b), as the work pursuant to a permit progresses, local inspectors shall make as many inspections of the work as may be necessary to satisfy them that it is being done according to the provisions of the applicable State and local laws and local ordinances and regulations and of the terms of the permit. In exercising this power, each member of the inspection department has a right, upon presentation of proper credentials, to enter on any premises within the territorial jurisdiction of the department at any reasonable hour for the purposes of inspection or other enforcement action. If a permit has been obtained by an owner exempt from licensure under G.S. 87‑1(b)(2), no inspection shall be conducted without the owner being personally present, unless the plans for the building were drawn and sealed by an architect licensed pursuant to Chapter 83A of the General Statutes."
SECTION 2.13.(b)  G.S. 160A‑420 reads as rewritten:
"§ 160A‑420.  Inspections of work in progress.
Subject to the provisions of G.S. 160A‑412(b), as the work pursuant to a permit progresses, local inspectors shall make as many inspections thereof as may be necessary to satisfy them that the work is being done according to the provisions of any applicable State and local laws and of the terms of the permit. In exercising this power, members of the inspection department shall have a right to enter on any premises within the jurisdiction of the department at all reasonable hours for the purposes of inspection or other enforcement action, upon presentation of proper credentials. If a permit has been obtained by an owner exempt from licensure under G.S. 87‑1(b)(2), no inspection shall be conducted without the owner being personally present, unless the plans for the building were drawn and sealed by an architect licensed pursuant to Chapter 83A of the General Statutes."

ETHICS REQUIREMENTS FOR CERTAIN CITY OFFICIALS
SECTION 2.14.(a)  Article 5 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A‑88.  Additional ethics requirements for governing boards.
(a)	All members of governing boards of cities and consolidated city‑counties shall complete a statement of economic interest as if that member were a public servant as defined in G.S. 138A‑3. That statement of economic interest shall be filed with the clerk to the board of the governing board on or before April 15 of each year.
(b)	All members of governing boards of cities and consolidated city‑counties shall not mention or permit another person to mention the member's public position in nongovernmental advertising that advances the private interest of the member or others.
(c)	A member shall not use or permit the use of public funds for any advertisement or public service announcement in a newspaper, on the radio, on television, in magazines, or on billboards that contains that member's name, picture, or voice, except in the case of local, State, or national emergency, and only if the announcement is reasonably necessary to the member's official function. This subsection shall not apply to fund‑raising on behalf of and aired on public radio or public television.
(d)	A member shall not use or disclose nonpublic information gained in the course of, or by reason of, the member's official responsibilities in a way that would affect a personal financial interest of the member or any other person.
(e)	This section applies only to cities and city‑counties with a population of more than 75,000 according to the last federal decennial census."
SECTION 2.14.(b)  This section becomes effective October 1, 2014. The statement of interest required by G.S. 160A‑88(a), as enacted by this act, shall be filed with the clerk to the board on or before January 1, 2015.

BUILDING CODE STUDY
SECTION 2.16.  The North Carolina Building Code Council shall undertake a study of the authority granted to local building inspectors in those counties and cities where building plans are reviewed and approved prior to the issuance of a building permit, pursuant to G.S. 153A‑357, 153A‑359, 153A‑360, 153A‑362, 153A‑365, 160A‑417, 160A‑419, 160A‑420, and any other statutes deemed relevant by the Council. The Council shall report to the 2015 General Assembly on its findings and make recommendations on any statutory amendments that are necessary to ensure local field inspectors cannot disregard or independently require changes to any construction plans previously approved by a county or city.

ANIMAL EUTHANASIA REQUIREMENTS
SECTION 2.17.(a)  G.S. 19A‑24 is amended by adding the following new subsections to read:
"§ 19A‑24.  Powers of Board of Agriculture.
…
(e)	A certified euthanasia technician shall correctly calculate chemical agent dosage based upon the species, age, weight, and condition of the animal and record the identification number of the animal, its species, sex, weight, breed description and date, dosages for drugs that are administered, and amounts for drugs wasted.
(f)	When a certified euthanasia technician uses any chemical agent having instructions that direct the amount of the dosage be determined, in whole or in part, upon the animal's weight, the certified euthanasia technician shall weigh the animal to be euthanized using a mechanical or digital scale accurate to plus or minus one pound or plus or minus one half kilogram. If the certified euthanasia technician increases or decreases the dose of the chemical agent from the amount recommended for an animal of a given weight, the technician shall record the amount of chemical agent administered and the reason for administering an amount different from that recommended for an animal of that weight."
SECTION 2.17.(b)  This section becomes effective July 1, 2015.

BRAC RELATED DISCUSSION AND DOCUMENTS
SECTION 2.18.(a)  G.S. 132‑1.2 is amended by adding a new subdivision to read:
"(6)	Reveals documents related to the federal government's process to determine closure or realignment of military installations until a final decision has been made by the federal government in that process."
SECTION 2.18.(b)  G.S. 143‑318.11(a)(4) reads as rewritten:
"(4)	To discuss matters relating to the location or expansion of industries or other businesses in the area served by the public body, including agreement on a tentative list of economic development incentives that may be offered by the public body in negotiations, or to discuss matters relating to military installation closure or realignment. Any action approving the signing of an economic development contract or commitment, or the action authorizing the payment of economic development expenditures, shall be taken in an open session."
SECTION 2.18.(c)  This section becomes effective October 1, 2014, and applies to meetings held or on after that date.

PART III. HEALTH AND SAFETY REGULATION

AUTISM HEALTH INSURANCE COVERAGE
SECTION 3.1.(a)  Article 3 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58‑3‑192.  Coverage for autism spectrum disorders.
(a)	As used in this section, the following definitions apply:
(1)	Applied behavior analysis. – The design, implementation, and evaluation of environmental modifications using behavioral stimuli and consequences to produce socially significant improvement in human behavior, including the use of direct observation, measurement, and functional analysis of the relationship between environment and behavior.
(2)	Autism spectrum disorder. – Any of the pervasive developmental disorders or autism spectrum disorders as defined by the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM) or the most recent edition of the International Statistical Classification of Diseases and Related Health Problems.
(3)	Behavioral health treatment. – Counseling and treatment programs, including applied behavior analysis, that are both of the following:
a.	Necessary to (i) increase appropriate or adaptive behaviors, (ii) decrease maladaptive behaviors, or (iii) develop, maintain, or restore, to the maximum extent practicable, the functioning of an individual.
b.	Provided or supervised by (i) a licensed behavior analyst or (ii) a licensed psychologist or licensed psychological associate, so long as the services performed are commensurate with the psychologist's training and experience.
(4)	Diagnosis of autism spectrum disorder. – Any medically necessary assessments, evaluations, or tests to determine whether an individual has autism spectrum disorder.
(5)	Health benefit plan. – As defined in G.S. 58‑3‑167.
(6)	Pharmacy care. – Medications prescribed by a licensed physician and any health‑related services deemed medically necessary to determine the need for or effectiveness of the medications.
(7)	Psychiatric care. – Direct or consultative services provided by a licensed psychiatrist.
(8)	Psychological care. – Direct or consultative services provided by a licensed psychologist or licensed psychological associate.
(9)	Therapeutic care. – Direct or consultative services provided by a licensed speech therapist, licensed occupational therapist, licensed physical therapist, licensed clinical social worker, or licensed professional counselor.
(10)	Treatment for autism spectrum disorders. – Any of the following care for an individual diagnosed with autism spectrum disorder, or equipment related to that care, ordered by a licensed physician or a licensed psychologist who determines the care to be medically necessary:
a.	Behavioral health treatment.
b.	Pharmacy care.
c.	Psychiatric care.
d.	Psychological care.
e.	Therapeutic care.
(b)	Every health benefit plan shall provide coverage for the screening, diagnosis, and treatment of autism spectrum disorder for individuals 23 years of age or younger. No insurer shall terminate coverage or refuse to issue, amend, or renew coverage to an individual solely because the individual is diagnosed with autism spectrum disorder or has received treatment for autism spectrum disorder. Individuals must have received a diagnosis of autism spectrum disorder prior to the age of eight to qualify for required coverage under this section.
(c)	Coverage under this section may not be subject to any limits on the number of visits an individual may have for treatment of autism spectrum disorder.
(d)	Coverage under this section may not be denied on the basis that the treatments are habilitative or educational in nature.
(e)	Coverage under this section may be subject to co‑payment, deductible, and coinsurance provisions of a health benefit plan that are not less favorable than the co‑payment, deductible, and coinsurance provisions that apply to substantially all medical services covered by the health benefit plan.
(f)	This section shall not be construed as limiting benefits that are otherwise available to an individual under a health benefit plan.
(g)	Coverage for behavioral health treatment under this section may be subject to a maximum benefit of up to thirty‑six thousand dollars ($36,000) per year.
(h)	Except for inpatient services, if an individual is receiving treatment for autism spectrum disorder, an insurer shall have the right to request a review of that treatment not more than once annually, unless the insurer and the individual's licensed physician or the individual's licensed psychologist agree that a more frequent review is necessary. Any such agreement regarding the right to review a treatment plan more frequently shall apply only to a particular insured being treated for an autism spectrum disorder and shall not apply to all individuals being treated for an autism spectrum disorder by a physician or psychologist. The cost of obtaining any review shall be borne by the insurer.
(i)	Nothing in this section shall apply to non‑grandfathered health plans in the individual and small group markets that are subject to the requirement to cover the essential health benefit package under 45 C.F.R. § 147.150(a). For purposes of this subsection, "non‑grandfathered health plan" is a health benefit plan not included in the plans defined under G.S. 58‑50‑110(10a). 
(j)	This section shall not be construed as affecting any obligation to provide services to an individual under an individualized family service plan, an individualized education program, or an individualized service plan.
(k)	The Commissioner of Insurance shall grant a health benefit plan issuer a waiver from the provisions of this section for a health benefit plan if the issuer demonstrates to the Commissioner, by actual claims experience over any consecutive 12‑month period, that compliance with this section has increased the cost of the health benefit plan by an amount of one percent (1%) or greater in the premium rate charged under the health benefit plan over the most recent calendar year."
SECTION 3.1.(b) Article 3 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58‑3‑305.  Report on mandated coverage requirements.
(a)	Each health insurance issuer that issues, sells, offers, or renews a health benefit plan in this State shall submit a biennial report, on or before the first day of May of each odd‑numbered year, to the Commissioner with the following information:
(1)	The cost and utilization information for each of the mandated coverage requirements per number of covered lives per month.
(2)	The number of members covered by the health insurance issuer.
(3)	Any additional information specified in rules adopted by the Commissioner.
(b)	The report required under subsection (a) of this section shall be in detail and form as required by the Commissioner. Information provided in any report required under subsection (a) of this section shall be held confidential by the Commissioner and shall not be considered a public record.
(c)	The Commissioner shall consolidate the information contained in the reports received under subsection (a) of this section and report to the General Assembly, not later than the first day of October of each odd‑numbered year, the following information:
(1)	The mandated coverage requirements contained in the report.
(2)	The average costs of the mandated coverage requirements per number of covered lives per month and the effect of those costs on premium pricing.
(3)	The average utilization of services that are mandated coverage requirements.
(4)	Other such information that the Commissioner deems appropriate.
(d)	As used in this section, the following definitions apply:
(1)	Health benefit plan. – As defined in G.S. 58‑3‑167.
(2)	Mandated coverage requirements. – Benefits specific to care, treatment, and services that an insurer is required to offer, as well as benefits relating to coverage of provider types, cost‑sharing, or reimbursement methods."
SECTION 3.1.(c)  The Commissioner shall adopt rules implementing Section 3.1(b) of this act and may adopt temporary rules as necessary to ensure that the reports required by G.S. 58‑3‑305(a) are received by May 1, 2015.
SECTION 3.1.(d)  Section 3.1(a) of this act becomes effective October 1, 2014, and applies to insurance contracts issued, renewed, or amended on or after that date. The remainder of this section is effective when it becomes law.

BEHAVIOR ANALYST LICENSURE
SECTION 3.2.(a) Chapter 90 of the General Statutes is amended by adding a new Article to read:
"Article 43.
"Behavior Analyst Licensure.
"§ 90‑726.1.  Declaration of purpose.
The practice of behavior analysis in North Carolina is hereby declared to affect the public health, safety, and welfare of citizens of North Carolina and to be subject to regulation to protect the public from (i) the practice of behavior analysis by unqualified persons and (ii) unprofessional, unethical, or harmful conduct by individuals licensed to practice behavior analysis.
"§ 90‑726.2.  Definitions.
The following definitions apply in this Article:
(1)	Board. – The North Carolina Behavior Analyst Board.
(2)	Certifying entity. – The nationally accredited Behavior Analyst Certification Board, Inc., or its successor.
(3)	Licensed assistant behavior analyst. – An individual who is certified by the certifying entity as a Board Certified Assistant Behavior Analyst and to whom a license has been issued pursuant to this Article, if the license is in force and not suspended or revoked, and whose license permits the individual to engage in the practice of behavior analysis under the supervision of a licensed behavior analyst.
(4)	Licensed behavior analyst. – An individual who is certified by the certifying entity as a Board Certified Behavior Analyst and to whom a license has been issued pursuant to this Article, if the license is in force and not suspended or revoked.
(5)	Practice of behavior analysis. – The design, implementation, and evaluation of instructional and environmental modifications to produce socially significant improvements in human behavior. The practice of behavior analysis includes the empirical identification of functional relations between behavior and environmental factors, known as functional assessment and analysis. Behavior analysis interventions are based on scientific research and the direct observation and measurement of behavior and the environment. In the practice of behavior analysis, behavior analysts utilize contextual factors, motivating operations, antecedent stimuli, positive reinforcement, and other consequences to help people develop new behaviors, increase or decrease existing behaviors, and emit behaviors under specific environmental conditions. The practice of behavior analysis expressly excludes psychological testing, cognitive therapy, sex therapy, psychoanalysis, hypnotherapy, and long‑term counseling as treatment modalities.
(6)	Registered Behavior Technician. – An individual who is credentialed by the certifying entity as a Registered Behavior Technician and who acts under the extended authority or direction of a licensed behavior analyst or a licensed assistant behavior analyst.
"§ 90‑726.3.  North Carolina Behavior Analysis Board.
(a)	Establishment. – The North Carolina Behavior Analysis Board is created. The Board shall consist of seven members who shall serve staggered terms. The initial Board shall be selected on or before August 1, 2014, as follows:
(1)	The General Assembly, upon the recommendation of the Speaker of the House of Representatives, shall appoint the following three members:
a.	One behavior analyst, who is certified by the certifying entity as a Board Certified Behavior Analyst, to serve a one‑year term. 
b.	One behavior analyst, who is certified by the certifying entity as a Board Certified Behavior Analyst, to serve a two‑year term. 
c.	One assistant behavior analyst, who is certified by the certifying entity as a Board Certified Assistant Behavior Analyst, to serve a three‑year term.
(2)	The General Assembly, upon the recommendation of the President Pro Tempore of the Senate, shall appoint the following three members:
a.	One assistant behavior analyst, who is certified by the certifying entity as a Board Certified Assistant Behavior Analyst, to serve a one‑year term. 
b.	One behavior analyst, who is certified by the certifying entity as a Board Certified Behavior Analyst, to serve a two‑year term. 
c.	One behavior analyst, who is certified by the certifying entity as a Board Certified Behavior Analyst, to serve a three‑year term.
(3)	The Governor shall appoint one public member to serve a two‑year term.
Upon the expiration of the terms of the initial Board members, each member shall be appointed by the appointing authorities designated in subdivisions (1) through (3) of this subsection for a three‑year term, shall be required to be licensed under this Article, and shall serve until a successor is appointed and qualified. No member may serve more than two consecutive full terms.
(b)	Vacancies. – In the event that a member of the Board cannot complete a term of office, the vacancy shall be filled in the same manner as the original appointment, for the remainder of the unexpired term. No Board member shall participate in any matter before the Board in which the member has a pecuniary interest or similar conflict of interest.
(c)	Removal. – The Board may remove any of its members for neglect of duty, incompetence or unprofessional conduct. A member subject to disciplinary proceedings shall be disqualified from participating in Board business until the charges have been resolved.
(d)	Meetings. – The Board shall elect annually a chair and other officers as it deems necessary to carry out the purposes of this Article. The Board may hold additional meetings upon the call of the chairperson or any two board members. A majority of the Board shall constitute a quorum.
(e)	Per Diem. – Each member of the Board may receive per diem and reimbursement for travel and subsistence set forth in G.S. 93B‑5.
"§ 90‑726.4.  Powers and duties of Board.
The Board shall have the following powers and duties:
(1)	Administer, coordinate, and enforce the provisions of this Article.
(2)	Adopt, amend, or repeal rules to administer and enforce this Article.
(3)	Establish and determine qualification and fitness of applicants for licensure under this Article.
(4)	Issue, renew, and deny, suspend, revoke, or refuse to issue or renew any license under this Article.
(5)	Establish fees for applications, initial and renewal licenses, and other services provided by the Board.
(6)	Discipline persons licensed under this Article.
"§ 90‑726.5.  License application.
(a)	Each individual desiring to obtain a license under this Article shall apply to the Board upon the form and in the manner prescribed by the Board. Each applicant shall furnish evidence satisfactory to the Board that the applicant meets all of the following criteria:
(1)	The individual is of good moral character and conducts his or her professional activities in accordance with accepted professional and ethical standards.
(2)	The individual has not engaged or is not engaged in any practice that would be a ground for denial, revocation, or suspension of a license under G.S. 90‑726.11.
(3)	The individual has submitted the required criminal history record as required by G.S. 90‑726.13.
(3)	The individual is qualified for licensure pursuant to the requirements of this Article.
(b)	A license obtained through fraud or by any false representation is void.
"§ 90‑726.6.  Requirements for licensure as a behavior analyst.
Each applicant shall be issued a license by the Board to engage in the practice of behavior analysis as a licensed behavior analyst if the applicant meets the qualifications set forth in G.S. 90‑726.5(a) and provides satisfactory evidence to the Board of all the following criteria:
(1)	The applicant has passed the certifying entity's Board Certified Behavior Analyst examination.
(2)	The applicant has an active status with the certifying entity as a Board Certified Behavior Analyst.
"§ 90‑726.7.  Requirement of licensure as an assistant behavior analyst.
Each applicant shall be issued a license by the Board to engage in the practice of behavior analysis as a licensed assistant behavior analyst if the applicant meets the qualifications set forth in G.S. 90‑726.5(a) and provides satisfactory evidence to the Board of all the following criteria:
(1)	The applicant has passed the certifying entity's Board Certified Assistant Behavior Analyst examination.
(2)	The applicant has an active status with the certifying entity as a Board Certified Assistant Behavior Analyst.
(3)	The applicant has an ongoing arrangement for supervision by a licensed behavior analyst in a manner consistent with the certifying entity's requirements for supervision of Board Certified Assistant Behavior Analysts.
"§ 90‑726.8.  Renewal of license.
(a)	A license shall be granted under this Article for the period of two years.
(b)	The Board shall renew a license granted under this Article upon completion of the following:
(1)	Proof of completion of any continuing education required by the certifying entity.
(2)	Payment of the renewal fee.
(3)	Evidence of active certification by certifying entity.
(4)	For assistant behavior analysts, evidence of the ongoing arrangement for supervision by a licensed behavior analyst as required by G.S. 90‑726.7.
"§ 90‑726.9.  Temporary licensure.
(a)	An individual residing and practicing behavior analysis in another state and who is certified as Board Certified Behavior Analyst by the certifying entity may apply to the Board for a temporary license to practice behavior analysis in North Carolina. 
(b)	An individual residing and practicing behavior analysis in another state who is actively licensed in another state as a behavior analyst may apply to the Board for a temporary license to practice behavior analysis in North Carolina.
(c)	A temporary license is available only if the behavior analysis services are to be delivered during a limited and defined period of service approved by the Board.
"§ 90‑726.10.  Reciprocity.
(a)	The Board shall issue a license to an individual who is actively licensed as a behavior analyst or assistant behavior analyst in another state that currently imposes comparable licensure requirements as those imposed by this Article and that offers reciprocity to individuals licensed under this Article.
(b)	Applicants for licensure by reciprocity shall submit the following items:
(1)	Proof of ethical compliance.
(2)	Proof of current licensure.
(3)	Proof of current certification by the certifying entity.
(4)	A criminal history record as required by G.S. 90‑726.13.
(5)	Any other eligibility requirement as deemed appropriate by the Board.
"§ 90‑726.11.  Sanction of licensee status.
(a)	The Board may deny or refuse to renew a license, may suspend or revoke a license, or may impose probationary conditions on a license upon demonstration of ineligibility for licensure under this Article, failure to maintain active certification by the certifying entity, falsification of documentation submitted for licensure, or other reasons as specified in rules adopted by the Board.
(b)	The denial, refusal to renew, suspension, revocation, or imposition of a probationary condition upon a license may be ordered by the Board after a hearing is held in accordance with G.S. Chapter 150B of the General Statutes and rules adopted by the Board.
"§ 90‑726.12.  Fees.
The Board may collect fees established by its rules, but those fees shall not exceed the amounts listed below:
(1)	Application fee for licensure	$250.00
(2)	License renewal	$200.00
(3)	Late renewal fee	$50.00
(4)	Reciprocal license application	$250.00
(5)	Temporary license application	$100.00
"§ 90‑726.13.  Criminal history record checks of applicants for licensure.
(a)	All applicants for licensure shall consent to a criminal history record check. Refusal to consent to a criminal history record check may constitute grounds for the Board to deny licensure to an applicant. The Board shall be responsible for providing to the North Carolina Department of Justice the fingerprints of the applicant to be checked, a form signed by the applicant consenting to the criminal history record check and the use of fingerprints and other identifying information required by the State or National Repositories, and any additional information required by the Department of Justice. The Board shall keep all information obtained pursuant to this section confidential.
(b)	The cost of the criminal history record check and the fingerprinting shall be borne by the applicant. The Board shall collect any fees required by the Department of Justice and shall remit the fees to the Department of Justice for expenses associated with conducting the criminal history record check.
(c)	If an applicant's criminal history record reveals one or more criminal convictions, the conviction shall not automatically bar licensure. The Board shall consider all of the following factors regarding the conviction:
(1)	The level of seriousness of the crime.
(2)	The date of the crime.
(3)	The age of the person at the time of conviction.
(4)	The circumstances surrounding the commission of the crime, if known.
(5)	The nexus between the criminal conduct of the person and the job duties of the position to be filled.
(6)	The applicant's prison, jail, probation, parole, rehabilitation, and employment records since the date the crime was committed.
If, after reviewing the factors, the Board determines that any of the grounds to deny licensure exist, the Board may deny licensure of the applicant. The Board may disclose to the applicant information contained in the criminal history record that is relevant to the denial if disclosure of the information is permitted by applicable State and federal law. The Board shall not provide a copy of the criminal history to the applicant. The applicant shall have to right to appear before the Board to appeal the Board's decision. An appearance before the full Board shall constitute an exhaustion of administrative remedies in accordance with Chapter 150B of the General Statutes.
(d)	The Board, its officers, and employees, acting in good faith and in compliance with this section, shall be immune from civil liability for denying licensure to an applicant based on information provided in the applicant's criminal history record."
SECTION 3.2.(b)  Article 43 of Chapter 90 of the General Statutes is amended by adding the following new sections to read:
"§ 90‑726.14.  Prohibited acts and penalties.
(a)	Except as permitted in G.S. 90‑726.16, it shall be a violation of this Article for any person not licensed in accordance with the provisions of this Article to practice behavior analysis or to hold himself or herself out to the public as a person practicing behavior analysis.
(b)	Any person not licensed in accordance with the provisions of this Article practicing behavior analysis or holding himself or herself out to the public as a person practicing behavior analysis in violation of this Article is guilty of a Class 2 misdemeanor. Each violation shall count as a separate offense.
"§ 90‑726.15.  Injunction.
The Board may apply to the superior court for an injunction to prevent violations of this Article or any rules enacted pursuant thereto. The court is empowered to grant such injunctions regardless of whether criminal prosecution or other action has been or may be instituted as a result of such violation. 
"§ 90‑726.16.  Exemptions from licensure.
(a)	A person is exempt from the requirements of this Article if any of the following conditions are met:
(1)	The person is a duly licensed psychologist or psychological associate in this State.
(2)	The person is a Registered Behavior Technician and is acting under the extended authority or direction of a licensed behavior analyst or a licensed assistant behavior analyst.
(3)	The person is a family member, guardian, or other caretaker implementing a behavior analysis treatment plan under the direction of a licensed behavior analyst or a licensed assistant behavior analyst. 
(4)	The person engages in the practice of behavior analysis with nonhuman subjects. This includes, but is not limited to, persons who are animal behaviorists and animal trainers.
(5)	The person provides general behavior analysis services to organizations, so long as the services are for the benefit of the organizations and do not involve direct services to individuals.
(6)	The person is a professional licensed under this Chapter, so long as the licensed professional does not represent that he or she is a licensed behavior analyst or licensed assistant behavior analyst and the services of the licensed professional are within the scope of practice of the license possessed by that professional and the services performed are commensurate with the licensed professional's education, training, and experience.
(7)	The activities are part of a defined college or university course program of study, practicum, or intensive practicum, so long as that person is under direct supervision of a (i) licensed behavior analyst, (ii) an instructor in a course sequence approved by the certifying entity, or (iii) a qualified faculty member.
(8)	The person is pursing experience in behavior analysis consistent with the certifying entity's experience requirements, so long as the person's activities are supervised by a licensed behavior analyst.
(9)	The behavior analysis services are performed with a student while the person is employed by a local board of education as part of the person's position or regular duties of office. Any person exempted from this Article under this subdivision who does not possess a license under this Article shall not provide or offer to provide behavior analysis services to any persons other than students and shall not accept remuneration for providing behavior analysis services other than the remuneration received from the local board of education."
SECTION 3.2.(c)  G.S. 90‑270.4 is amended by adding a new subsection to read:
"(f1)	Nothing in this Article shall be construed to prevent a behavior analyst or an assistant behavior analyst licensed under Article 43 of Chapter 90 of the General Statutes from offering services within the scope of practice authorized by the North Carolina Behavior Analysis Board."
SECTION 3.2.(d)  The North Carolina Behavior Analysis Board shall adopt temporary rules to implement this act no later than November 1, 2014. The temporary rules shall remain in effect until permanent rules that replace the temporary rules become effective.
SECTION 3.2.(e)  Section 3.2(b) and Section 3.2(c) of this act become effective January 1, 2015. The remainder of this act is effective when it becomes law.  

PHARMACY BENEFITS MANAGEMENT REGULATION
SECTION 3.3.(a)  Chapter 58 of the General Statutes is amended by adding a Article to read:
"Article 56A.
"Pharmacy Benefits Management.
"§ 58‑56A‑1.  Definitions.
The following definitions apply in this Article:
(1)	Health benefit plan. – As defined in G.S. 58‑50‑110(11).
(2)	Insurer. – Any entity that provides or offers a health benefit plan.
(3)	Maximum allowable cost price. – The per unit amount that a pharmacy benefits manager reimburses a pharmacy for a prescription drug, excluding dispensing fees, co‑payments, coinsurance, and other cost‑sharing charges, if any.
(4)	Widely available. – Available to all pharmacies in this State for purchase, without limitation, from regional or national wholesalers and not obsolete or temporarily unavailable.
(5)	Pharmacy. – A pharmacy registered with the North Carolina Board of Pharmacy.
(6)	Pharmacy benefits management. – Administration or management of prescription drug benefits, including the following activities:
a.	Retail pharmacy network management.
b.	Pharmacy discount card management.
c.	Claims payment to a retail pharmacy for prescription medications dispensed to covered individuals.
d.	Clinical formulary development and management services, including utilization and quality assurance programs.
e.	Rebate contracting and administration.
f.	Auditing contracted pharmacies.
g.	Establishing pharmacy reimbursement pricing and methodologies.
h.	Determining single‑ and multiple‑source medications.
i.	Mail service pharmacy.
(7)	Pharmacy benefits manager. – A person who contracts a pharmacy on behalf of an insurer or third‑party administrator that provides pharmacy benefit management services.
(8)	Therapeutically equivalent drug substitute. – A drug identified as therapeutically or pharmaceutically equivalent to another drug by the United States Food and Drug Administration.
(9)	Third‑party administrator – As defined in G.S. 58‑56‑2.
"§ 58‑56A‑3.  Maximum allowable cost price.
(a)	A pharmacy benefits manager may not set a maximum allowable cost price if the prescription drug does not have three or more nationally available therapeutically equivalent drug substitutes.
(b)	A pharmacy benefits manager shall remove a maximum allowable cost price for a prescription drug, or modify a maximum allowable cost price, as necessary for a cost of a prescription drug to remain consistent with changes in the national marketplace for prescription drugs. A review of the maximum allowable cost prices for removal or modification made under this subsection must be completed by the pharmacy benefits manager at least once every seven business days and any removal or modification shall occur within seven business days.
(c)	A pharmacy benefits manager shall disclose to all pharmacies with which it contracts the following information:
(1)	At the beginning of each calendar year, the basis of methodology and the sources used to establish the maximum allowable cost prices used by the pharmacy benefits manager. 
(2)	Promptly and in writing, any changes made to the maximum allowable cost prices. 
(3)	At least once every seven business days, the maximum allowable cost price used by the pharmacy benefits manager.
"§ 58‑56A‑5.  Appeals of maximum allowable cost prices.
(a)	A pharmacy benefits manager must provide an appeals procedure to reasonably allow a pharmacy to contest maximum allowable cost prices.
(b)	The appeals procedure required under subsection (a) of this section shall meet the following requirements:
(1)	The pharmacy benefits manager must respond to a pharmacy not more than seven calendar days after a pharmacy contests a maximum allowable cost price.
(2)	The pharmacy benefits manager shall retroactively make adjustments for all pharmacies with which it contracts if an appealing pharmacy is successful in an appeal. Adjustments shall be retroactive to the date of the appealed price change.
"§ 58‑56A‑7.  Disclosure of information.
(a)	A pharmacy benefits manager shall not provide, sell, lease, or rent drug utilization or claims data unless the sale complies with all federal and state laws and the pharmacy benefits manager has obtained written approval for the provision, sale, lease, or rental from the covered individual whose information is to be released.
(b)	A pharmacy benefits manager shall not directly contact a covered individual by any means without the express written permission of the insurer or third party administrator for whom the pharmacy benefit management services are provided.
(c)	No personally identifiable demographic, drug, utilization, or claims data shall be provided by a pharmacy benefits manager to the following entities unless a covered individual has voluntarily elected in writing to release the information:
(1)	A pharmacy owned by, affiliated with, or under contract with the pharmacy benefits manager.
(2)	A pharmacy owned by, affiliated with, or under contract with the insurer or third party administrator for whom the pharmacy benefit management services are provided.
(d)	In addition to the provisions of the Health Insurance Portability and Accountability Act of 1996, P.L. 104‑191, as amended, a pharmacy benefit manager shall not knowingly disclose or use records containing personally identifiable information for marketing a prescribed product to a patient or prescriber.
(e)	This section shall not prevent a prescription benefit manager from disclosing personally identifiable information to the identified individual so long as the information does not included protected information pertaining to any other person.
"§ 58‑56A‑9.  Incentives offered by pharmacy benefit managers.
(a)	Subject to G.S. 58‑51‑37, a pharmacy benefit manager shall not take any action that would restrict a covered individual's choice of pharmacy from which to receive prescription medications.
(b)	A pharmacy benefits manager shall not provide any incentive to a covered individual to use a particular pharmacy, including a particular mail‑order pharmacy. This includes manipulating the amount of the drug co‑payment that it charges in a manner that would encourage covered individuals to receive prescription medication from a mail‑order pharmacy."
SECTION 3.3.(b)  This section becomes effective January 1, 2015, and applies to contracts entered into, renewed, or amended on or after that date.

LIMITED FOOD SERVICES AT LODGING FACILITIES
SECTION 3.4.(a)  G.S. 130A‑247(7) reads as rewritten:
"(7)	"Limited food services establishment" means an establishment as described in G.S. 130A‑248(a4), with food handling operations that are restricted by rules adopted by the Commission pursuant to G.S. 130A‑248(a4) and that prepares or serves food only in conjunction with amateur athletic events. Limited food service establishment also includes lodging facilities that serve only reheated food that has already been pre‑cooked."
SECTION 3.4.(b)  G.S. 130A‑148(a4) reads as rewritten:
"(a4)	For the protection of the public health, the Commission shall adopt rules governing the sanitation of limited food service establishments. In adopting the rules, the Commission shall not limit the number of days that limited food service establishments may operate. Limited food service establishment permits shall be issued only to the following:
(1)	Political subdivisions of the  State.
(2)	Establishments operated by volunteers that prepare or serve food in conjunction with amateur athletic  events.
(3)	Lodging facilities that serve only reheated food that has already been pre‑cooked.
(4)	  Establishments operated by organizations that are exempt from federal income tax under section 501(c)(3) or section 501(c)(4) of the Internal Revenue Code." 
SECTION 3.4.(c)  The Commission for Public Health shall adopt rules to conform to the provisions of this section.  

YOUTH SKIN CANCER PREVENTION
SECTION 3.5.(a)  G.S. 104E‑9.1(a) reads as rewritten:
"(a)	Operators of tanning equipment and owners of tanning facilities subject to rules adopted pursuant to this Chapter shall comply with or ensure compliance with the following:
(1)	The operator shall provide to each consumer a warning statement that defines the potential hazards and consequences of exposure to ultraviolet radiation. Before allowing the consumer's initial use of the tanning equipment, the operator shall obtain the signature of the consumer on the warning statement acknowledging receipt of the warning.
(2)	The operator shall not allow a person under 18 years of age to use tanning equipment.
(3)	Neither an operator nor an owner shall claim or distribute promotional materials that claim that using tanning equipment is safe or free from risk or that using tanning equipment will result in medical or health benefits."
SECTION 3.5.(b)  This section becomes effective July 1, 2014.

NURSING HOME ADMINISTRATOR ACT REVISION
SECTION 3.6.  G.S. 90‑280(a) reads as rewritten:
"(a)	Each applicant for an examination and each applicant for an administrator‑in‑training program and reciprocity endorsement shall pay a processing fee set by the Board not to exceed five hundred dollars ($500.00) plus the actual cost of the exam."

ADA REQUIREMENTS FOR PRIVATE POOLS
SECTION 3.7.(a)  Notwithstanding Section 1109.14 of the 2012 NC State Building Code (Building Code), swimming pools shall be required to be accessible only to the extent required by the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq., and federal rules and regulations adopted pursuant to that Act.
SECTION 3.7.(b)  The Building Code Council shall adopt a rule to amend Section 1109.14 of the 2012 NC State Building Code (Building Code) consistent with Section 3.5(a) of this act.
SECTION 3.7.(c)  Section 3.5(a) of this act expires on the date that the rule adopted pursuant to Section 3.5(b) of this act becomes effective.

REPORT ON SEEK
SECTION 3.8.  The Division of Child Development and Early Education shall report to the Joint Legislative Oversight Committee on Health and Human Services and the 2015 General Assembly prior to statewide implementation of the Subsidized Early Education for Kids (SEEK) system. The report shall be due no later than March 15, 2015, and shall include (i) outcomes of the SEEK system pilot implementation that has been ongoing since 2011 and the current system pilot, (ii) barriers to full implementation, and (iii) plans to ensure effective and efficient statewide implementation.

EXCEPTION TO HOSPITAL AUTHORITY CONFLICT OF INTEREST
SECTION 3.10.  G.S. 131E‑21 is amended by adding a new subsection to read:
"(c1)	Subsection (a) of this section shall not apply if the commissioner or employee is not involved in making or administering the contract. A commissioner or employee is involved in administering the contract if the commissioner or employee oversees the performance of or interprets the contract. A commissioner or employee is involved in making a contract if the commissioner or employee participates in the development of specifications or terms or in the preparation or award of the contract. A commissioner or employee is not involved in making or administering the contract solely because of the performance of ministerial duties related to the contract. A commissioner is also involved in making a contract if the hospital authority takes action on the contract, whether or not the commissioner actually participates in that action, unless the contract is approved under an exception to this section under which the commissioner is allowed to benefit and is prohibited from voting."

REPORT ON MULTIPLICATIVE AUDITING AND MONITORING OF CERTAIN SERVICE PROVIDERS
SECTION 3.11.  No later than December 1, 2014, the Deputy Secretary of Behavioral Health and Developmental Disabilities Services of the Department of Health and Human Services shall report to the Joint Legislative Oversight Committee on Health and Human Services on the status of multiplicative auditing and monitoring of all provider agencies under the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services who have been nationally accredited through a recognized national accrediting body. The report shall include all group home facilities licensed under Chapter 122 of the General Statutes. The report shall include a complete list of all auditing and monitoring and shall provide recommendations to remove all unnecessary regulatory duplication and to enhance efficiency.

END SUNSET FOR FACILITIES THAT USE ALTERNATIVE ELECTRONIC MONITORING SYSTEMS
SECTION 3.12.  Section 4 of S.L. 2009‑490, as amended by S.L. 2012‑15, reads as rewritten:
"SECTION 4. The Department of Health and Human Services, Division of Health Service Regulation shall establish a pilot program to study the use of electronic supervision devices as an alternative means of supervision during sleep hours at facilities for children and adolescents who have a primary diagnosis of mental illness and/or emotional disturbance. The pilot program shall be implemented at a facility currently authorized to waive the requirement set forth in 10A NCAC 27G .1704(c) or any related or subsequent rule or regulation by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services setting minimum overnight staffing requirements. The waiver shall remain in effect, however, the Division reserves the right to rescind the waiver if, at the time of the facility's license renewal, there are outstanding deficiencies that have remained uncorrected upon follow‑up survey, that are related to electronic supervision."

STATE MEDICAID RECREDENTIALING PERIOD
SECTION 3.13.(a)  Section 12H.7 of S.L. 2013‑360 is codified as G.S. 108C‑9(e).
SECTION 3.13.(b)  Effective July 1, 2017, and applying to all recredentialings due on or after that date, G.S. 108C‑9(e), as codified by subsection (a) of this section, reads as rewritten:
"(e)	The Department of Health and Human Services, Division of Medical Assistance, shall charge an application fee of one hundred dollars ($100.00), and the amount federally required, to each provider enrolling in the Medicaid Program for the first time. The fee shall be charged to all providers at recredentialing every five years."

PART IV. SEVERABILITY CLAUSE AND EFFECTIVE DATE
SECTION 4.1.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part declared to be unconstitutional or invalid.
SECTION 4.2.  Except as otherwise provided, this act is effective when it becomes law.