A BILL TO BE ENTITLED
AN ACT TO PROVIDE REGULATORY RELIEF FOR LOCAL GOVERNMENTS BY AUTHORIZING CITIES TO RESERVE CERTAIN EASEMENTS WHEN PERMANENTLY CLOSING STREETS AND ALLEYS; BY REPEALING THE REQUIREMENT FOR LICENSING OF GOING OUT OF BUSINESS SALES BY LOCAL GOVERNMENTs; BY PROVIDING FOR ELECTRONIC SUBMISSION OF ABSENTEE BALLOT LISTS BY COUNTY BOARDS OF ELECTION; by authorizing the potential use of new technology for paper ballots; AND BY EXEMPTING LOCAL GOVERNMENT REGULAR PAYROLL AND BENEFITS PAYMENTS FROM PREAUDIT CERTIFICATION REQUIREMENTS.
The General Assembly of North Carolina enacts:

CLARIFY EASEMENT RESERVATION AUTHORITY FOR CITIES CLOSING STREETS AND ALLEYS
SECTION 1.  G.S. 160A‑299 reads as rewritten:
"§ 160A‑299.  Procedure for permanently closing streets and alleys.
…
(f)	A city may reserve a right, title, and interest in any improvements or easements within a street closed pursuant to this section. An easement under this subsection shall include utility, drainage, pedestrian, landscaping, conservation, or other easements considered by the city to be in the public interest. The reservation of an easement under this subsection shall be stated in the order of closing. The reservation also extends to utility improvements or easements owned by private utilities which at the time of the street closing have a utility agreement or franchise with the city.
…."

REPEAL LICENSING FOR GOING OUT OF BUSINESS/DISTRESS SALES
SECTION 2.(a)  G.S. 66‑77 is repealed.
SECTION 2.(b)  G.S. 66‑80 reads as rewritten:
"§ 66‑80.  Continuation of sale or business beyond termination date.
No person shall conduct a closing‑out sale or a sale of goods, wares or merchandise damaged by fire, smoke, water or otherwise or a distress sale beyond the termination date specified for such sale; nor shall any person, upon conclusion of such sale, continue that business which had been represented as closing out or going out of business under the same name, or under a different name, at the same location, or elsewhere in the same city or town where the inventory for such sale was filed for a period of 12 months; nor shall any person, upon conclusion of such sale, continue business contrary to the designation of such sale. As used in this section, the term "person" includes individuals, partnerships, corporations, and other business entities. If a business entity that is prohibited from continuing a business under this section reformulates itself as a new entity or as an individual, whether by sale, merger, acquisition, bankruptcy, dissolution, or any other transaction, for the purpose of continuing the business, the successor entity or individual shall be considered the same person as the original entity for the purpose of this section. If an individual who is prohibited from continuing a business under this section forms a new business entity to continue the business, that entity shall be considered the same person as the individual for the purpose of this section."
SECTION 2.(c)   This section becomes effective July 1, 2015.

ELECTRONIC REPORTING FOR COUNTY BOARDS OF ELECTIONS
SECTION 3.(a)  G.S. 163‑232 reads as rewritten:
"§ 163‑232.  Certified list of executed absentee ballots; distribution of list.
The county board of elections shall prepare, or cause to be prepared, a list in at least quadruplicate, of all absentee ballots returned to the county board of elections to be counted, which have been approved by the county board of elections, and which have been received as of 5:00 p.m. on the day before the election. At the end of the list, the chairman shall execute the following certificate under oath:
"State of North Carolina
County of ______________
I, ______________, chairman of the ____________ County board of elections, do hereby certify that the foregoing is a list of all executed absentee ballots to be voted in the election to be conducted on the ____________ day of ______________, ________, which have been approved by the county board of elections and which have been returned no later than 5:00 p.m. on the day before the election. I certify that the chairman, member, officer, or employee of the board of elections has not delivered ballots for absentee voting to any person other than the voter, by mail or by commercial courier service or in person, except as provided by law, and have not mailed or delivered ballots when the request for the ballot was received after the deadline provided by law.
This the ______ day of ______, ______
____________________
(Signature of chairman of
county board of elections)
Sworn to and subscribed before me this ____________ day of ______, _____.
Witness my hand and official seal.
________________
(Signature of officer
administering oath)
________________
(Title of officer)"
No later than 10:00 a.m. on election day, the county board of elections shall cause one copy of the list of executed absentee ballots, which may be a continuing countywide list or a separate list for each precinct, to be immediately (i) submitted electronically in a manner approved by the State Board of Elections or (ii) deposited as "first‑class" mail to the State Board of Elections. The board shall retain one copy in the board office for public inspection and the board shall cause two copies of the appropriate precinct list to be delivered to the chief judge of each precinct in the county. The county board of elections shall be authorized to call upon the sheriff of the county to distribute the list to the precincts. In addition the county board of elections shall, upon request, provide a copy of the complete list to the chairman of each political party, recognized under the provisions of G.S. 163‑96, represented in the county.
The chief judge shall post one copy of the list immediately in a conspicuous location in the voting place and retain one copy until all challenges of absentee ballots have been heard by the county board of elections. Challenges shall be made to absentee ballots as provided in G.S. 163‑89.
After receipt of the list of absentee voters required by this section the chief judge shall call the name of each person recorded on the list and enter an "A" in the appropriate voting square on the voter's permanent registration record, or a similar entry on the computer list used at the polls. If such person is already recorded as having voted in that election, the chief judge shall enter a challenge which shall be presented to the county board of elections for resolution by the board of elections prior to certification of results by the board.
All lists required by this section shall be retained by the county board of elections for a period of 22 months after which they may then be destroyed."
SECTION 3.(b)  G.S. 163‑232.1(c) reads as rewritten:
"(c)	The board shall post one copy of the most current version of each list in the board office in a conspicuous location for public inspection and shall retain one copy until all challenges of absentee ballots have been heard by the county board of elections. The county board of elections shall cause one copy of each of the final lists of executed absentee ballots required under subsection (a) and subsection (b) of this section to be (i) submitted electronically in a manner approved by the State Board of Elections or (ii) deposited as "first‑class" mail to the State Board of Elections. The final lists shall be electronically submitted or mailed no later than 10:00 a.m. of the next business day following the deadline for receipt of such absentee ballots. Challenges shall be made to absentee ballots as provided in G.S. 163‑89. In addition the county board of elections shall, upon request, provide a copy of each of the lists to the chairman of each political party, recognized under the provisions of G.S. 163‑96, represented in the county."

ALLOW NEW TECHNOLOGY FOR PAPER BALLOTS
SECTION 4.(a)  G.S. 163‑165 reads as rewritten:
"§ 163‑165.  Definitions.
In addition to the definitions stated below, the definitions set forth in Article 15A of Chapter 163 of the General Statutes also apply to this Article. As used in this Article:
(1)	(Effective until January 1, 2018) "Ballot" means an instrument on which a voter indicates that voter's choice for a ballot item so that it may be recorded as a vote for or against a certain candidate or referendum proposal. The term "ballot" may include a paper ballot to be counted by hand, a paper ballot to be counted on an electronic scanner, the face of a lever voting machine, the image on a direct record electronic unit, or a ballot used on any other voting system.
(1)	(Effective January 1, 2018) "Ballot" means an instrument on which a voter indicates that voter's choice for a ballot item so that it may be recorded as a vote for or against a certain candidate or referendum proposal. The term "ballot" may include a paper ballot to be counted by hand, a paper ballot to be counted on an electronic scanner, or a paper ballot used on any other voting system.
(2)	"Ballot item" means a single item on a ballot in which the voters are to choose between or among the candidates or proposals listed.
(3)	"Ballot style" means the version of a ballot within a jurisdiction that an individual voter is eligible to vote. For example, in a county that uses essentially the same official ballot, a group office such as county commissioner may be divided into districts so that different voters in the same county vote for commissioner in different districts. The different versions of the county's official ballot containing only those district ballot items one individual voter may vote are the county's different ballot styles.
(4)	"Election" means the event in which voters cast votes in ballot items concerning proposals or candidates for office in this State or the United States. The term includes primaries, general elections, referenda, and special elections.
(5)	"Official ballot" means a ballot that has been certified by the State Board of Elections and produced by or with the approval of the county board of elections and may include ballots indicating choices of an individual voter selected electronically and printed in the voting place. The term does not include a sample ballot or a specimen ballot.
(5a)	(Effective January 1, 2018) "Paper ballot" means an individual paper document that bears marks made by the voter by hand or through electronic means.
(6)	"Provisional official ballot" means an official ballot that is voted and then placed in an envelope that contains an affidavit signed by the voter certifying identity and eligibility to vote. Except for its envelope, a provisional official ballot shall not be marked to make it identifiable to the voter.
(7)	"Referendum" means the event in which voters cast votes for or against ballot questions other than the election of candidates to office.
(8)	"Voting booth" means the private space in which a voter is to mark an official ballot.
(9)	"Voting enclosure" means the room within the voting place that is used for voting.
(10)	"Voting place" means the building or area of the building that contains the voting enclosure.
(11)	"Voting system" means a system of casting and tabulating ballots. The term includes systems of paper ballots counted by hand as well as systems utilizing mechanical and electronic voting equipment."
SECTION 4.(b)  G.S. 163‑165.5 reads as rewritten:
"§ 163‑165.5.  Contents of official ballots.
(a)	Except as provided in this section, each official ballot shall contain all the following elements:
(1)	The heading prescribed by the State Board of Elections. The heading shall include the term "Official Ballot".
(2)	The title of each office to be voted on and the number of votes allowed in each ballot item.
(3)	The names of the candidates as they appear on their notice of candidacy filed pursuant to G.S. 163‑106 or G.S. 163‑323, or on petition forms filed in accordance with G.S. 163‑122. No title, appendage, or appellation indicating rank, status, or position shall be printed on the official ballot in connection with the candidate's name. Candidates, however, may use the title Mr., Mrs., Miss, or Ms. Nicknames shall be permitted on an official ballot if used in the notice of candidacy or qualifying petition, but the nickname shall appear according to standards adopted by the State Board of Elections. Those standards shall allow the presentation of legitimate nicknames in ways that do not mislead the voter or unduly advertise the candidacy. In the case of candidates for presidential elector, the official ballot shall not contain the names of the candidates for elector but instead shall contain the nominees for President and Vice President which the candidates for elector represent. The State Board of Elections shall establish a review procedure that local boards of elections shall follow to ensure that candidates' names appear on the official ballot in accordance with this subdivision.
(4)	Party designations in partisan ballot items.
(5)	A means by which the voter may cast write‑in votes, as provided in G.S. 163‑123. No space for write‑ins is required unless a write‑in candidate has qualified under G.S. 163‑123 or unless the ballot item is exempt from G.S. 163‑123.
(6)	Instructions to voters, unless the State Board of Elections allows instructions to be placed elsewhere than on the official ballot.
(7)	The printed title and facsimile signature of the chair of the county board of elections.
(b)	Notwithstanding subsection (a) of this section, an official ballot created and printed by use of a voting system in the voting place shall be counted if all of the following apply:
(1)	Each of the following are printed on that official ballot:
a.	The date of the election.
b.	The precinct name or a unique identification code associated with that ballot style.
c.	The choices made by the voter for all ballot items in which the voter cast a vote.
(2)	The electronic display of the voting system seen by the voter contains all of the information required by subsection (a) of this section.
(3)	The voter is capable of reviewing the printed official ballot, and voiding that ballot, prior to casting that voter's ballot.
(4)	The voter's choices in and on the electronic display are removed prior to the next voter using that voting equipment."

PREAUDIT CERTIFICATIONS
SECTION 5.(a)  G.S. 159‑28 reads as rewritten:
"§ 159‑28.  Budgetary accounting for appropriations.
(a)	Incurring Obligations. – No obligation may be incurred in a program, function, or activity accounted for in a fund included in the budget ordinance unless the budget ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. No obligation may be incurred for a capital project or a grant project authorized by a project ordinance unless that project ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay the sums obligated by the transaction. Nothing in this section shall require a contract to be reduced to writing.
(a1)	Preaudit Requirement. – If an obligation is reduced to a written contract or written agreement requiring the payment of money, or is evidenced by a written purchase order for supplies and materials, the written contract, agreement, or purchase order shall include on its face a certificate stating that the instrument has been preaudited to assure compliance with subsection (a) of this section. The certificate, which shall be signed by the finance officer, or any deputy finance officer approved for this purpose by the governing board, shall take substantially the following form:
"This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.
___________________________________
(Signature of finance officer)."

(a2)	Failure to Preaudit. – An obligation incurred in violation of subsection (a) or (a1) of this section is invalid and may not be enforced. The finance officer shall establish procedures to assure compliance with this section, in accordance with any rules adopted by the Local Government Commission.
(b)	Disbursements. – When a bill, invoice, or other claim against a local government or public authority is presented, the finance officer shall either approve or disapprove the necessary disbursement. If the claim involves a program, function, or activity accounted for in a fund included in the budget ordinance or a capital project or a grant project authorized by a project ordinance, the finance officer may approve the claim only if both of the following apply:
(1)	The finance officer determines the amount to be payable.
(2)	The budget ordinance or a project ordinance includes an appropriation authorizing the expenditure and either (i) an encumbrance has been previously created for the transaction or (ii) an unencumbered balance remains in the appropriation sufficient to pay the amount to be disbursed.
The finance officer may approve a bill, invoice, or other claim requiring disbursement from an intragovernmental service fund or trust or agency fund not included in the budget ordinance, only if the amount claimed is determined to be payable. A bill, invoice, or other claim may not be paid unless it has been approved by the finance officer or, under subsection (c) of this section, by the governing board. The finance officer shall establish procedures to assure compliance with this subsection, in accordance with any rules adopted by the Local Government Commission.
(c)	Governing Board Approval of Bills, Invoices, or Claims. – The governing board may, as permitted by this subsection, approve a bill, invoice, or other claim against the local government or public authority that has been disapproved by the finance officer. The governing board may not approve a claim for which no appropriation appears in the budget ordinance or in a project ordinance, or for which the appropriation contains no encumbrance and the unencumbered balance is less than the amount to be paid. The governing board shall approve payment by formal resolution stating the board's reasons for allowing the bill, invoice, or other claim. The resolution shall be entered in the minutes together with the names of those voting in the affirmative. The chairman of the board, or some other member designated for this purpose, shall sign the certificate on the check or draft given in payment of the bill, invoice, or other claim. If payment results in a violation of law, each member of the board voting to allow payment is jointly and severally liable for the full amount of the check or draft given in payment.
(d)	Payment. – A local government or public authority may not pay a bill, invoice, salary, or other claim except by any of the following methods:
(1)	Check or draft on an official depository.
(2)	Bank wire transfer from an official depository.
(3)	Electronic payment or an electronic funds transfer originated by the local government or public authority through an official depository.
(4)	Cash, if the local government has adopted an ordinance authorizing the use of cash, and specifying the limits of the use of cash.
(d1)	Except as provided in this section, each check or draft on an official depository shall bear on its face a certificate signed by the finance officer or a deputy finance officer approved for this purpose by the governing board (or signed by the chairman or some other member of the board pursuant to subsection (c) of this section). The certificate shall take substantially the following form:
"This disbursement has been approved as required by the Local Government Budget and Fiscal Control Act.
________________________________
(Signature of finance officer)."
(d2)	An electronic payment or electronic funds transfer shall be subject to the preaudit process in accordance with this section and any rules adopted by the Local Government Commission. The rules so adopted shall address execution of electronic payment or electronic funds transfer and how to indicate that the finance officer or duly appointed deputy finance officer has performed the preaudit process in accordance with this section. A finance officer or duly appointed deputy finance officer shall be presumed in compliance with this section if the finance officer or duly appointed deputy finance officer complies with the rules adopted by the Local Government Commission.

(e)	Penalties. – If an officer or employee of a local government or public authority incurs an obligation or pays out or causes to be paid out any funds in violation of this section, that officer or employee, and the sureties on any official bond for that officer or employee, are liable for any sums so committed or disbursed. If the finance officer or any duly appointed deputy finance officer gives a false certificate to any contract, agreement, purchase order, check, draft, or other document, the finance officer or duly appointed deputy finance officer, and the sureties on any official bond, are liable for any sums illegally committed or disbursed thereby. The governing board shall determine, by resolution, if payment from the official bond shall be sought and if the governing body will seek a judgment from the finance officer or duly appointed deputy finance officer for any deficiencies in the amount.
(f)	The certifications required by subsections (a1) and (d) of this section shall not apply to any of the following:
(1)	An obligation or a document related to the obligation has been approved by the Local Government Commission.
(2)	Payroll expenditures, including all benefits for employees of the local government.
(3)	Electronic payments, as specified in rules adopted by the Local Government Commission.
(g)	As used in this section, the following terms shall have the following meanings:
(1)	Electronic payment. – Payment by charge card, credit card, debit card, gas card, procurement card, or electronic funds transfer.
(2)	Electronic funds transfer. – A transfer of funds initiated by using an electronic terminal, a telephone, a computer, or magnetic tape to instruct or authorize a financial institution or its agent to credit or debit an account."
SECTION 5.(b)  This section becomes effective July 1, 2015, and applies to expenditures incurred on or after that date.

EFFECTIVE DATE
SECTION 6.  The remainder of this act is effective when it becomes law.