A BILL TO BE ENTITLED
AN ACT TO CREATE ADDITIONAL INCENTIVES FOR LOCAL GOVERNMENTS TO COMPLY WITH STATE LAWS RELATED TO IMMIGRATION, to CREATE A Private Cause OF action To remedy local government nonCompliance with state immigration laws, to prohibit unc CONSTITUENT INSTITUTIONS from becoming sanctuary universities, and to direct the department of public safety to enter into a memorandum of agreement with the department of homeland security.
The General Assembly of North Carolina enacts:

PART I. RECODIFICATION OF STATUTE AND REPEAL OF STATUTORY EXCEPTION
SECTION 1.(a)  G.S. 15A‑311 is recodified as G.S. 64‑6 under Article 1 of Chapter 64 of the General Statutes.
SECTION 1.(b)  G.S. 15A‑311, as recodified by subsection (a) of this section, reads as rewritten:
"§ 64‑6.  Certain documents not acceptable as identification.
(a)	The following documents are not acceptable for use in determining a person's actual identity or residency by a justice, judge, clerk, magistrate, law enforcement officer, or other government official:
(1)	A matricula consular or other similar document, other than a valid passport, issued by a consulate or embassy of another country.
(2)	An identity document issued or created by any person, organization, county, city, or other local authority, except where expressly authorized to be used for this purpose by the General Assembly.
(b)	No local government or law enforcement agency may establish, by policy or ordinance, the acceptability of any of the documents described in subsection (a) of this section as a form of identification to be used to determine the identity or residency of any person. Any local government policy or ordinance that contradicts this section is hereby repealed.
	
(d)	If a person is unable to provide allowable documentation of identity and residency, a law enforcement officer or agency may at their discretion, use whatever information or documentation the individual may present as proof of identity or residency and may take a photograph of the person. Any photograph authorized under this subsection and taken by a law enforcement officer or agency:
(1)	Shall only be taken from the neck up.
(2)	Shall be retained by the law enforcement officer or agency until the final disposition of the case.
(3)	Shall not be used for any purpose other than to confirm the identity of the person.
(4)	Shall be destroyed by the law enforcement officer or agency upon the final disposition of the matter.

PART II. CREATION OF ADDITIONAL INCENTIVES FOR LOCAL GOVERNMENTS TO COMPLY WITH STATE LAWS RELATED TO IMMIGRATION and creation of private cause of action
SECTION 2.(a)  Chapter 64 of the General Statutes is amended by adding a new Article to read:
"Article 3.
"Local Government Noncompliance With State Laws Related to Immigration.
"§ 64‑49.  Findings.
The General Assembly finds the following:
(1)	That the policy objectives it seeks to further by enacting State laws applicable to cities, counties, and law enforcement agencies are frustrated when those entities do not uniformly comply with State law.
(2)	That Section 7(1) of Article V and other sections of the North Carolina Constitution grant the General Assembly supreme power and complete discretion over the appropriation of State funds.
(3)	That the General Assembly's power over the appropriation of State funds can be used to create additional incentives for cities, counties, and law enforcement agencies to comply with duly enacted laws.
(4)	That statutorily setting forth the manner in which the General Assembly elects to exercise its discretion with respect to appropriations provides cities, counties, and law enforcement agencies with a measure of predictability that can be useful to those entities in planning and carrying out their functions and duties.
"§ 64‑50.  Definitions.
The following definitions apply in this Article:
(1)	Affected local government. – Any of the following:
a.	A municipality found to be not in compliance with a State law related to immigration.
b.	A municipality in which a municipal law enforcement agency has been found to be not in compliance with a State law related to immigration.
c.	A county found to be not in compliance with a State law related to immigration.
d.	A county in which a county law enforcement agency has been found to be not in compliance with a State law related to immigration.
(2)	Law enforcement agency. – A municipal police department, a county police department, or a sheriff's office.
(3)	State law related to immigration. – G.S. 64‑6(b), 153A‑145.5, or 160A‑205.2.
"§ 64‑51.  Attorney General to prepare form.
(a)	Preparation of Form. – The Attorney General shall prescribe a form for a person to allege that a city, county, or law enforcement agency is not in compliance with a State law related to immigration. The form shall clearly state that completed forms shall be sent to the Attorney General in order to be filed. The form shall be made available to the public on the Attorney General's Web site.
(b)	Certain Information Not Required. – A person shall not be required to list the person's Social Security number on the complaint form or to have the form notarized.
"§ 64‑52.  Filing of statement alleging noncompliance with a State law related to immigration.
Any person with a good‑faith belief that a municipality, county, or law enforcement agency is not in compliance with a State law related to immigration may file a statement with the Attorney General setting forth the basis for that belief. The statement may be on a form prescribed by the Attorney General pursuant to G.S. 64‑51 or may be made in any other form that gives the Attorney General information sufficient to proceed with an investigation under G.S. 64‑53. Nothing in this section shall be construed to prohibit the filing of anonymous statements that are not submitted on a prescribed form.
"§ 64‑53.  Investigation.
(a)	Investigation. – Within 45 days of receipt of a statement filed in accordance with G.S. 64‑52, the Attorney General shall commence an investigation to determine whether the municipality, county, or law enforcement agency is in compliance with a State law related to immigration. Within 60 days of commencing the investigation, the Attorney General shall conclude the investigation and shall issue a written determination on whether the municipality, county, or law enforcement agency is in compliance with a State law related to immigration. The Attorney General shall mail a copy of the written determination by registered or certified mail, return receipt requested, to the municipality, county, or law enforcement agency being investigated.
(b)	Assistance by Law Enforcement. – The Attorney General may request that the State Bureau of Investigation assist in an investigation under this section, and the State Bureau of Investigation shall assist in the investigation when it receives such a request.
(c)	Production of Documents. – A local government or law enforcement agency under investigation pursuant to this section shall produce records or documents related to alleged noncompliance with a State law related to immigration within 10 business days of a request by the Attorney General to do so.
(d)	Confidentiality. – Statements filed with the Attorney General pursuant to G.S. 64‑52 and reports and other investigative documents and records of the Attorney General connected to an investigation under this section shall be confidential and not matters of public record, except when the local government or law enforcement agency under investigation pursuant to this section authorizes in writing that these statements, reports, documents, and records be made public. Once an investigation under this section is complete, or once 60 days have elapsed since the investigation was commenced, whichever is earlier, the statement and all other reports and other investigative documents and records of the Attorney General connected to an investigation under this section, not otherwise privileged or confidential under law, shall be public records.
"§ 64‑54.  Consequences of noncompliance with a State law related to immigration.
(a)	Consequences of Noncompliance Generally. – Upon determination by the Attorney General pursuant to G.S. 64‑53 that an affected local government is not in compliance with a State law related to immigration and after any appeal under G.S. 64‑56 is final, all of the following shall apply:
(1)	The affected local government shall be ineligible to receive distributions under G.S. 105‑113.82, 105‑164.44F, 105‑164.44I, 105‑164.44L, 105‑187.19(b), and 136‑41.1 for one 12‑month period beginning as soon as practicable after the date the Department of Transportation, the State Controller, and the Secretary of Revenue are notified of noncompliance with the State law related to immigration under subdivisions (3) and (4) of this section.
(2)	If, within 60 days of the Attorney General's determination, the affected local government fails to demonstrate to the Attorney General's satisfaction that it is in compliance with all State laws related to immigration, the period of ineligibility shall be extended for an additional 12‑month period.
(3)	The Attorney General shall notify the following entities of the determination that the affected local government is not in compliance with a State law related to immigration and of the duration of the period of ineligibility to receive funds determined pursuant to subdivision (1) of this subsection:
a.	The affected local government.
b.	The chairs of the Appropriations Committees of the Senate and House of Representatives.
c.	The chairs of the Joint Legislative Commission on Governmental Operations.
d.	The Office of State Budget and Management.
e.	The Secretary of Revenue.
(4)	The Office of State Budget and Management shall notify the Department of Transportation and the State Controller of an affected local government's ineligibility to receive the funds described in subdivision (1) of this subsection. The Secretary of Revenue shall withhold any distributions otherwise due to the affected local government under subdivision (1) of this subsection.
(5)	The Department of Transportation, the State Controller, and the Secretary of Revenue shall ensure that the funds described in subdivision (1) of this subsection are not distributed to an affected local government and that the funds are instead distributed to other local governments that are eligible for distributions pursuant to the relevant statute.
(b)	Consequences of Noncompliance; E‑Verify Statutes. – When the Attorney General receives a notification from the Commissioner of Labor pursuant to G.S. 64‑33.1(b) that a municipality or county has violated G.S. 143‑133.3, all of the provisions of subsection (a) of this section shall apply.
(c)	Exceptions. – No enactment by the General Assembly shall be construed as an exception to this section unless it specifically mentions this section.
"§ 64‑55.  Attorney General to maintain copies of orders; reporting.
(a)	Database. – The Attorney General shall maintain a database of the affected local governments that are ineligible to receive the funds described in G.S. 64‑54(a)(1) and shall make the database accessible to the public through the Attorney General's Web site.
(b)	Reporting. – The Attorney General shall report quarterly to the Joint Legislative Commission on Governmental Operations on all of the following:
(1)	The number of statements received by the Attorney General pursuant to G.S. 64‑52.
(2)	The number of investigations performed pursuant to G.S. 64‑53.
(3)	The number of times consequences for noncompliance with a State law related to immigration were imposed pursuant to G.S. 64‑54.
(4)	The names of affected local governments.
"§ 64‑56.  Appeal.
(a)	A determination made by the Attorney General under this Article may be appealed only to the extent and in the manner required by the United States and North Carolina Constitutions. The imposition of consequences for noncompliance with a State law related to immigration pursuant to G.S. 64‑54 shall not occur until an appeal made under this section is final. However, if an appeal under this section is unsuccessful, the length of the period during which an affected local government shall be ineligible to receive the funds described in G.S. 64‑54(a)(1) shall be the same as it would have been had no appeal been made.
(b)	A determination by the Attorney General under this Article that an affected local government is not in compliance with a State law related to immigration shall be final, unless within 15 days after receipt of notice of the determination as provided in G.S. 64‑53, the affected local government appeals the determination by filing a contested case under Article 3 of Chapter 150B of the General Statutes.
(c)	The Attorney General must notify the entities listed in G.S. 64‑54(a)(3) of any unsuccessful appeal by an affected local government. Once notified, the Office of State Budget and Management shall notify the Department of Transportation and the State Controller of the unsuccessful appeal. The period of ineligibility under G.S. 64‑54(a)(1) and (2) shall begin as soon as practicable after the date the Department of Transportation, the State Controller, and the Secretary of Revenue are notified of the unsuccessful appeal.
"§ 64‑57.  Attorney General may designate appointed official to carry out duties.
The Attorney General may designate a person to carry out the Attorney General's duties under this Article. The designee shall be an individual appointed by the Attorney General and shall not be a member of the Council of State or any other elected official.
"§ 64‑58.  Rules.
The Attorney General shall adopt rules needed to implement this Article.
"§ 64‑59.  Private enforcement.
In addition to any other remedies at law or in equity, any person who resides within the jurisdiction of a municipality, county, or law enforcement agency that the person believes is not in compliance with a State law related to immigration may bring an action for declaratory and injunctive relief. Such action shall be filed in the superior court of any county in which the defendant municipality, county, or local law enforcement agency has jurisdiction. The court shall award the prevailing party in an action brought under this section reasonable attorneys' fees and court costs as authorized by law. The court shall impose a civil penalty against any municipality, county, or law enforcement agency that fails to comply with an order issued as a result of an action pursuant to this section in an amount up to ten thousand dollars ($10,000) per day for each day the municipality, county, or local law enforcement agency fails to comply with the order."
SECTION 2.(b)  G.S. 64‑33.1 reads as rewritten:
"§ 64‑33.1  Consequences of violation of G.S. 143‑133.3.
(a)	All Violations. – For any violation of G.S. 143‑133.3, the Commissioner shall notify the board or governing body of the State, or of any institution of the State government, or of any political subdivision of the State, found to have committed the violation that the board or governing body of the State, or of any institution of the State government, or of any political subdivision of the State, is in violation of the applicable statute. The Department of Labor shall maintain a list of any boards or governing bodies of the State, or of any institutions of the State government, or of any political subdivisions of the State, issued notices pursuant to this section and shall make that list available on its Web site.
(b)	Violations by Certain Local Entities. – For a violation of G.S. 143‑133.3 by a municipality or county, the Commissioner shall immediately notify the Attorney General of the violation so that the Attorney General can take action in accordance with G.S. 64‑54(b). Additionally, the Commissioner shall notify the Attorney General if, within 60 days of the Commissioner's determination that there has been a violation, the political subdivision fails to demonstrate to the Commissioner's satisfaction that the political subdivision is in compliance with G.S. 143‑133.3. The Commissioner may hold additional hearings as needed to implement this subsection.
(c)	Violations by Local School Administrative Units. – For a violation of G.S. 143‑133.3 by a local school administrative unit, the Commissioner shall immediately notify the Superintendent of Public Instruction in accordance with G.S. 115C‑52. Additionally, the Commissioner shall notify the Superintendent if, within 60 days of the Commissioner's determination that there has been a violation, the local school administrative unit fails to demonstrate to the Commissioner's satisfaction that the local school administrative unit is in compliance with G.S. 143‑133.3. The Commissioner may hold additional hearings as needed to implement this subsection."
SECTION 2.(c)  G.S. 136‑41.1 is amended by adding a new subsection to read:
"(e)	No city or town shall receive any allocation under this section for any period during which it is ineligible to receive those funds under G.S. 64‑54."
SECTION 2.(d)  G.S. 105‑113.82(a) reads as rewritten:
"(a)	Amount. – Subject to G.S. 64‑54, the Secretary must distribute annually a percentage of the net amount of excise taxes collected on the sale of malt beverages and wine during the preceding 12‑month period ending March 31 to the counties or cities in which the retail sale of these beverages is authorized in the entire county or city. The percentages to be distributed are as follows:
…."
SECTION 2.(e)  G.S. 105‑164.44F(a) reads as rewritten:
"(a)	Amount. – Subject to G.S. 64‑54, the Secretary must distribute part of the taxes imposed by G.S. 105‑164.4(a)(4c) on telecommunications service and ancillary service. The Secretary must make the distribution within 75 days after the end of each calendar quarter. The amount the Secretary must distribute is the following percentages of the net proceeds of the taxes collected during the quarter:
…."
SECTION 2.(f)  G.S. 105‑164.44I(a) reads as rewritten:
"(a)	Distribution. – Subject to G.S. 64‑54, the Secretary must distribute to the counties and cities part of the taxes imposed by G.S. 105‑164.4(a)(4c) on telecommunications service and G.S. 105‑164.4(a)(6) on video programming service. The Secretary must make the distribution within 75 days after the end of each calendar quarter. The amount the Secretary must distribute is the sum of the revenue listed in this subsection. From this amount, the Secretary must first make the distribution required by subsection (b) of this section and then distribute the remainder in accordance with subsections (c) and (d) of this section. The revenue to be distributed under this section consists of the following:
…."
SECTION 2.(g)  G.S. 105‑164.44L(a) reads as rewritten:
"(a)	Distribution. – Subject to G.S. 64‑54, the Secretary must distribute to cities twenty percent (20%) of the net proceeds of the tax collected under G.S. 105‑164.4 on piped natural gas, less the cost to the Department of administering the distribution. Each city's share of the amount to be distributed is its excise tax share calculated under subsection (b) of this section plus its ad valorem share calculated under subsection (c) of this section. A gas city will also receive an amount calculated under subsection (b1) of this section as part of its excise tax share. If the net proceeds of the tax allocated under this section are not sufficient to distribute the excise tax share of each city under subsection (b) of this section and the gas city share under subsection (b1) of this section, the proceeds shall be distributed to each city on a pro rata basis. The Secretary must make the distribution within 75 days after the end of each quarter."
SECTION 2.(h)  G.S. 105‑187.19(b) reads as rewritten:
"(b)	Each quarter, the Secretary shall credit thirty percent (30%) of the net tax proceeds to the General Fund. Subject to G.S. 64‑54, the Secretary shall distribute the remaining seventy percent (70%) of the net tax proceeds among the counties on a per capita basis according to the most recent annual population estimates certified to the Secretary by the State Budget Officer."
SECTION 2.(i)  Article 5 of Chapter 115C of the General Statutes is amended by adding a new section to read as follows:
"§ 115C‑52.  Consequences of noncompliance by a local school administrative unit with E‑verify related to immigration.
(a)	Consequences of Noncompliance; E‑Verify Statutes. – The Commissioner of Labor shall include notice to the Superintendent of Public Instruction when notifying a local board of education pursuant to G.S. 64‑33.1(c) that a local board of education is not in compliance with G.S. 143‑133.3. No State funds shall be allocated to pay the local superintendent's salary for one 12‑month period beginning as soon as practicable after the date the Superintendent of Public Instruction is notified of noncompliance.
(b)	If, within 60 days of the Commissioner of Labor's notice to the Superintendent the local board of education fails to demonstrate to the Commissioner of Labor's satisfaction that it is in compliance with G.S. 143‑133.3, the Commissioner of Labor shall provide notice to the Superintendent of Public Instruction, and no State funds shall be allocated to pay the local superintendent's salary for an additional 12‑month period.
(c)	The Commissioner of Labor shall notify the following entities of the determination that the local board of education is not in compliance with G.S. 143‑133.3 and of the duration of the period of ineligibility for State funds to be used for the salary of the local school superintendent:
(1)	The affected local board of education.
(2)	The chairs of the Appropriations Committees of the Senate and House of Representatives.
(3)	The chairs of the Joint Legislative Commission on Governmental Operations.
(4)	The Office of State Budget and Management.
(5)	The Superintendent of Public Instruction.
(6)	The State Board of Education."

PART III. private right of action to seek declaratory and injunctive relief based on local government adoption of a prohibited sanctuary ordinance
SECTION 3.(a)  G.S. 153A‑145.5 is amended by adding a new subsection to read:
"(c)	In addition to any other remedies at law or in equity, any person who resides within the jurisdiction of a county that the person believes is not in compliance with this section may bring an action for declaratory and injunctive relief in the superior court of the defendant county. The court shall award the prevailing party in an action brought under this subsection reasonable attorneys' fees and court costs as authorized by law. The court shall impose a civil penalty against any county that fails to comply with an order issued as a result of an action pursuant to this section in an amount up to ten thousand dollars ($10,000) per day for each day the county fails to comply with the order."
SECTION 3.(b)  G.S. 160A‑205.2 is amended by adding a new subsection to read:
"(c)	In addition to any other remedies at law or in equity, any person who resides within the jurisdiction of a city that the person believes is not in compliance with this section may bring an action for declaratory and injunctive relief. Such action shall be filed in the superior court of any county in which the defendant city has jurisdiction. The court shall award the prevailing party in an action brought under this subsection reasonable attorneys' fees and court costs as authorized by law. The court shall impose a civil penalty against any city that fails to comply with an order issued as a result of an action pursuant to this section in an amount up to ten thousand dollars ($10,000) per day for each day the city fails to comply with the order."

PART IV. waiver of local government immunity
SECTION 4.(a)  G.S. 153A‑145.5 reads as rewritten:
"§ 153A‑145.5.  Adoption of sanctuary ordinance prohibited; waiver of immunity.
…
(d)	A county in violation of this section shall have waived its governmental immunity as provided in G.S. 153A‑435.1."
SECTION 4.(b)  Article 23 of Chapter 153A of the General Statutes is amended by adding a new section to read as follows:
"§ 153A‑435.1.  Waiver of immunity; sanctuary status.
(a)	A county shall have waived its immunity from civil liability in tort if it does not comply with G.S. 153A‑145.5 and an unauthorized alien commits a crime against a person or property within the corporate limits of the county.
(b)	Immunity shall be waived under subsection (a) of this section even if the county has not purchased insurance as authorized in G.S. 153A‑435."
SECTION 4.(c)  G.S. 160A‑205.2 reads as rewritten:
"§ 160A‑205.2.  Adoption of sanctuary ordinances prohibited; waiver of immunity.
…
(d)	A city in violation of this section shall have waived its governmental immunity as provided in G.S. 160A‑485.1."
SECTION 4.(d)  Article 21 of Chapter 160A of the General Statutes is amended by adding a new section to read as follows:
"§ 160A‑485.1.  Waiver of immunity; sanctuary status.
(a)	A city shall have waived its immunity from civil liability in tort if it does not comply with G.S. 160A‑205.2 and an unauthorized alien commits a crime against a person or property within the corporate limits of the city.
(b)	Immunity shall be waived under subsection (a) of this section even if the city has not purchased insurance as authorized in G.S. 160A‑485 or G.S. 160A‑485.5(a)."

PART V. CREATION OF ADDITIONAL INCENTIVES FOR unc CONSTITUENT institutions TO COMPLY WITH STATE LAWS RELATED TO IMMIGRATION
SECTION 5.  Part 3 of Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑40.13.  Adoption of sanctuary status prohibited; investigation; penalties.
(a)	No constituent institution may have in effect any policy or procedure that limits or restricts the enforcement of federal immigration laws to less than the full extent permitted by federal law.
(b)	To the extent permitted by federal and State law, no constituent institution shall do any of the following related to information regarding the citizenship or immigration status, lawful or unlawful, of any individual:
(1)	Prohibit law enforcement officials or agencies from gathering such information.
(2)	Direct law enforcement officials or agencies not to gather such information.
(3)	Prohibit the communication of such information to federal law enforcement agencies.
(c)	Within 45 days of receipt of a report that a constituent institution is in violation of either or both subsection (a) or (b) of this section, the President shall commence an investigation. The President shall conclude the investigation and make a determination within 60 days of the investigation's commencement. Upon determining a constituent institution is in violation of either or both subsection (a) or (b) of this section, the President shall immediately notify the Board of Governors.
(d)	Upon receipt of a determination from the President under subsection (c) of this section, the Board of Governors shall immediately revoke the constituent institution's status as a special responsibility constituent institution under Part 2A of Article 1 of this Chapter. The revocation shall apply to the current fiscal year. If, within 60 days of the President's determination, the constituent institution fails to demonstrate to the President's satisfaction that it is in compliance with subsections (a) and (b) of this section, the Board of Governors shall extend the revocation of special responsibility constituent institution status for an additional fiscal year."

PART VI. DPS/ICE MOA
SECTION 6.  The Secretary of the Department of Public Safety shall enter into a Memorandum of Agreement (MOA) with the Director of U.S. Immigration and Customs Enforcement (ICE) pursuant to section 287(g) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, as amended, to permit designated State law enforcement officers to perform immigration law enforcement functions. The designated State law enforcement officers shall be required to receive appropriate training as provided by ICE and shall function under the supervision of ICE officers when performing under the MOA.

PART VII. ATTORNEY GENERAL NOTIFICATION TO LOCAL GOVERNMENTS
SECTION 7.  The Attorney General's office shall take reasonable steps to notify local governments of the provisions of this act so that the local governments can take appropriate steps to comply with this act's requirements.

PART VIII. EFFECTIVE DATE
SECTION 8.  Sections 1, 2, and 3 of this act become effective July 1, 2019. The remainder of this act is effective when it becomes law.