A BILL TO BE ENTITLED
AN ACT TO reform financial reporting OF OCCUPATIONAL LICENSING BOARDS.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 93B‑1 reads as rewritten:
"§ 93B‑1.  Definitions; list of occupational licensing boards.
(a)	As used in this Chapter, "license" means any license, certificate, or other evidence of qualification which an individual is required to obtain before he or she may engage in or represent himself or herself to be a member of a particular profession or occupation. A "license" does not include a privilege license.
(b)	As used in this Chapter, "occupational licensing board" means any of the following:
(1)	Acupuncture Licensing Board.
(2)	Board of Examiners for Speech and Language Pathologists and Audiologists.
(3)	Board of Law Examiners.
(4)	Board of Podiatry Examiners.
(5)	Cape Fear Navigation and Pilotage Commission.
(6)	Midwifery Joint Subcommittee.
(7)	Morehead City Navigation and Pilotage Commission.
(8)	North Carolina Appraisal Board.
(9)	North Carolina Auctioneers Commission.
(10)	North Carolina Board for Licensing of Geologists.
(11)	North Carolina Board for Licensing of Soil Scientists.
(12)	North Carolina Board of Architecture.
(13)	North Carolina Board of Athletic Trainer Examiners.
(14)	North Carolina Board of Cosmetic Art Examiners.
(15)	North Carolina Board of Dietetics/Nutrition.
(16)	North Carolina Board of Electrolysis Examiners.
(17)	North Carolina Board of Funeral Service.
(18)	North Carolina Board of Landscape Architects.
(19)	North Carolina Board of Licensed Professional Counselors.
(20)	North Carolina Board of Massage and Bodywork Therapy.
(21)	North Carolina Board of Nursing.
(22)	North Carolina Board of Occupational Therapy.
(23)	North Carolina Board of Pharmacy.
(24)	North Carolina Board of Physical Therapy Examiners.
(25)	North Carolina Cemetery Commission.
(26)	North Carolina Interpreter and Transliterator Licensing Board.
(27)	North Carolina Irrigation Contractors' Licensing Board.
(28)	North Carolina Landscape Contractors' Licensing Board.
(29)	North Carolina Locksmith Licensing Board.
(30)	North Carolina Marriage and Family Therapy Licensure Board.
(31)	North Carolina Medical Board.
(32)	North Carolina On‑Site Wastewater Contractors and Inspectors Certification Board.
(33)	North Carolina Psychology Board.
(34)	North Carolina Real Estate Commission.
(35)	North Carolina Recreational Therapy Licensure Board.
(36)	North Carolina Respiratory Care Board.
(37)	North Carolina Social Work Certification and Licensure Board.
(38)	North Carolina State Bar.
(39)	North Carolina State Board of Dental Examiners.
(40)	North Carolina State Board of Examiners for Nursing Home Administrators.
(41)	North Carolina State Board of Examiners in Optometry.
(42)	North Carolina State Board of Examiners of Fee‑Based Practicing Pastoral Counselors.
(43)	North Carolina State Board of Opticians.
(44)	North Carolina State Hearing Aid Dealers and Fitters Board.
(45)	North Carolina Substance Abuse Professional Practice Board.
(46)	North Carolina Veterinary Medical Board.
(47)	State Board of Barber Examiners.
(48)	State Board of Certified Public Accountant Examiners.
(49)	State Board of Chiropractic Examiners.
(50)	State Board of Environmental Health Specialist Examiners.
(51)	State Board of Examiners for Engineers and Surveyors.
(52)	State Board of Examiners of Electrical Contractors.
(53)	State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors.
(54)	State Board of Refrigeration Examiners.
(55)	State Board of Registration for Foresters.
(56)	State Licensing Board for General Contractors."
SECTION 2.  G.S. 143B‑426.39 reads as rewritten:
"§ 143B‑426.39.  Powers and duties of the State Controller.
The State Controller shall:
(1)	Prescribe, develop, operate, and maintain in accordance with generally accepted principles of governmental accounting, a uniform state accounting system for all state agencies. The system shall be designed to assure compliance with all legal and constitutional requirements including those associated with the receipt and expenditure of, and the accountability for public funds. The State Controller may elect to review a State agency's compliance with prescribed uniform State accounting system standards, as well as applicable legal and constitutional requirements related to compliance with such standards.
(2)	On the recommendation of the State Auditor, prescribe and supervise the installation of any changes in the accounting systems of an agency that, in the judgment of the State Controller, are necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable and meaningful statements and reports. The State Controller shall be responsible for seeing that a new system is designed to accumulate information required for the preparation of budget reports and other financial reports.
…
(19)	Develop and prescribe a uniform format for the reporting of the annual financial audits required by G.S. 93B‑2(b). The State Controller shall prescribe the form of the audit reports, the categories and line items to be reported, the accounting method to be used by the occupational licensing boards, and any other criteria the State Controller deems necessary."
SECTION 3.  In developing the financial audit reporting format for occupational licensing boards required by Section 2 of this act, the State Controller shall consult with the State Auditor and solicit feedback from occupational licensing boards. The State Controller shall make the financial audit reporting format effective for reports submitted for the 2019‑2020 fiscal year at the latest.
SECTION 4.  Chapter 93B of the General Statutes is amended by adding a new section to read:
"§ 93B‑2.1.  Fiscal year.
Each occupational licensing board shall operate based on a fiscal year beginning on July 1 and ending on June 30."
SECTION 5.  The State Controller shall consider whether to integrate occupational licensing board financial audit reports into any new standard accounting system or accounting software acquired and utilized by the State.
SECTION 6.  G.S. 93B‑2 reads as rewritten:
"§ 93B‑2.  Annual reports and audits required; contents; open to inspection; sanction for failure to report.
(a)	No later than October 31 of each year, each occupational licensing board shall file electronically with the Secretary of State, the Attorney General, and the Joint Legislative Administrative Procedure Oversight Committee an annual report containing all of the following information:
(1)	The address of the board, and the names of its members and officers.
(1a)	The total number of licensees supervised by the board.
(2)	The number of persons who applied to the board for examination.
(3)	The number who were refused examination.
(4)	The number who took the examination.
(5)	The number to whom initial licenses were issued.
(5a)	The number who failed the examination.
(6)	The number who applied for license by reciprocity or comity.
(7)	The number who were granted licenses by reciprocity or comity.
(7a)	The number of official complaints received involving licensed and unlicensed activities.
(7b)	The number of disciplinary actions taken against licensees, or other actions taken against nonlicensees, including injunctive relief.
(8)	The number of licenses suspended or revoked.
(9)	The number of licenses terminated for any reason other than failure to pay the required renewal fee.
(10)	The substance of any anticipated request by the occupational licensing board to the General Assembly to amend statutes related to the occupational licensing board.
(11)	The substance of any anticipated change in rules adopted by the occupational licensing board or the substance of any anticipated adoption of new rules by the occupational licensing board.
(b)	No later than October 31 of each year, each occupational licensing board shall conduct an annual financial audit of its operations and provide an electronic copy of the audit to the State Auditor, the State Controller, the Office of State Budget and Management, and the Joint Legislative Administrative Procedure Oversight Committee. The audit shall be conducted in compliance with the Generally Accepted Government Auditing Standards developed by the United States Government Accountability Office and provided in a form as prescribed by the State Controller pursuant to G.S. 143B‑426.39.
(c)	The reports required by this section shall be open to public inspection.
(d)	The Joint Legislative Administrative Procedure Oversight Committee shall notify any board that fails to file the reports required by this section. Failure of a board to comply with the reporting requirements of this section by October 31 of each year shall result in a suspension of the board's authority to expend any funds until such time as the board files the required reports. Suspension of a board's authority to expend funds under this subsection shall not affect the board's duty to issue and renew licenses or the validity of any application or license for which fees have been tendered in accordance with law. Each board shall adopt rules establishing a procedure for implementing this subsection and shall maintain an escrow account into which any fees tendered during a board's period of suspension under this subsection shall be deposited."
SECTION 7.  G.S. 93B‑4 reads as rewritten:
"§ 93B‑4.  Audit of Occupational Licensing Boards by the State Auditor; payment of costs.
	The State Auditor shall audit occupational licensing boards from time to time to ensure their proper operation. The books, records, and operations of each occupational licensing board shall be subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes. In accordance with G.S. 147‑64.7(b), the State Auditor may contract with independent professionals to meet the requirements of this section. The State Auditor may perform an audit pursuant to this section upon the recommendation of the Joint Legislative Administrative Procedure Oversight Committee.
	"
SECTION 8.  Section 4 of this act becomes effective July 1, 2019, and applies to the fiscal year beginning on that date. The remainder of this act is effective when it becomes law.