A BILL TO BE ENTITLED
AN ACT directing state agencies to adjust employment practices to reduce barriers to employment for individuals with a criminal history.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 6 of Chapter 126 of the General Statutes is amended by adding a new section to read:
"§ 126‑20.  State agency hiring practices; criminal histories.
(a)	Definitions. – The following definitions apply in this section:
(1)	Applicant. – Any individual considered for, or who requests to be considered for, employment with the State or any current State employee considered for, or who requests to be considered for, another position in State employment.
(2)	Criminal History. – A State or federal conviction of a crime, whether a misdemeanor or felony, that bears upon an applicant's fitness for public employment. The term includes a record of arrests that have not resulted in a conviction and those that have resulted in a favorable disposition such as a dismissal or a verdict of not guilty.
(3)	Inquiry. – Any direct or indirect conduct intended to gather information, using any mode of communication.
(b)	Findings and Purpose. – The General Assembly finds that the ability to procure meaningful employment is essential to reinstating good citizenship for individuals who have a criminal record. The General Assembly declares that the State encourages the successful reintegration of people with a criminal history and recognizes that reducing barriers to employment for persons with a criminal history is a matter of statewide concern. The purpose of this section is to implement hiring practices that will increase employment opportunities and will reduce recidivism and improve community stability.
(c)	Scope. – This section applies to all State agencies and positions in State government employment, except that this section does not apply to any of the following:
(1)	A public employer that is required by State or federal law to conduct a criminal history inquiry as a preliminary qualification to be considered for public employment.
(2)	A position that includes law enforcement or public safety.
(3)	A position that involves direct interaction with minors or the elderly.
(d)	Applicant Criminal History. – An applicant shall not be asked to disclose, orally or in writing, information concerning the applicant's criminal record or history, including any inquiry on any employment application, until the applicant (i) has signed the appropriate waiver authorizing release, (ii) is being considered for a specific position, and (iii) has received an interview.
(e)	Considerations. – If a background check has been lawfully completed and a criminal history exists, the following criteria shall be considered by the State agency before either proffering or denying an offer of employment:
(1)	The nature and gravity of the offense.
(2)	The length of time that has elapsed since the offense occurred.
(3)	The age of the person at the time of the conviction.
(4)	Whether the offense is reasonably related to the duties and responsibilities of the employment sought by the applicant.
(5)	Any information pertaining to the degree of rehabilitation that may have taken place in the applicant.
The State agency must inform the applicant of the potential adverse employment decision based on the background check report prior to a final decision and must provide the applicant an opportunity to demonstrate that the applicant was not correctly identified in the background check report or that the report is otherwise inaccurate.
(f)	Record of Arrest. – A record of arrest that did not result in conviction shall not be the basis for disqualification from public employment.
(g)	Violations of This Section. – A grievance concerning an alleged violation of this section may be brought by an applicant under G.S. 126‑34.01 and G.S. 126‑34.02. 
(h)	Data Collection. – The Office of State Human Resources shall do the following:
(1)	Record and log the positions that are statutorily required to conduct background checks prior to a conditional offer of employment.
(2)	Conduct quarterly reviews to determine compliance with this Article and make a report on all such reviews to the General Assembly annually.
(3)	Collect, and make available to the public, data on:
a.	The number of applicants for public employment with criminal histories given conditional offers of employment.
b.	The number of applicants for public employment with criminal histories who are subsequently employed.
c.	The retention rate of public employees with criminal histories.
(i)	Non‑State Employers. – The General Assembly encourages comparable hiring practices among local governments and private employers operating in the State."
SECTION 2.  G.S. 126‑34.02(b) is amended by adding a new subdivision to read:
"(b)	The following issues may be heard as contested cases after completion of the agency grievance procedure and the Office of State Human Resources review:
…
(6)	Criminal History. – A grievance arising under G.S. 126‑20 that is related to an applicant's or State employee's criminal history."
SECTION 3.  G.S. 126‑5 is amended by adding a new subsection to read:
"(c14)	Notwithstanding any other provision of this Chapter, the provisions of G.S. 126‑20 apply to all State employees and applicants for State employment, except as specifically excluded by that section."
SECTION 4.  This act is effective when it becomes law and applies to positions posted for State employment on or after that date.