A BILL TO BE ENTITLED
AN ACT CONSISTENT WITH THE PROVISIONS OF THE CONFERENCE COMMITTEE SUBSTITUTE AND COMMITTEE REPORT FOR hOUSE BILL 966 OF THE 2019 REGULAR SESSION (1) APPROPRIATING FUNDS TO AWARD LEGISLATIVELY MANDATED SALARY INCREASES IN EACH YEAR OF THE 2019‑2021 FISCAL BIENNIUM TO EMPLOYEES OF THE UNIVERSITY OF NORTH CAROLINA AT A FUNDING LEVEL SUPPORTING A ONE‑HALF OF ONE PERCENT INCREASE AND TO EMPLOYEES OF THE COMMUNITY COLLEGE SYSTEM AT A FUNDING LEVEL SUPPORTING A ONE PERCENT INCREASE PURSUANT TO POLICIES ADOPTED BY THE BOARD OF GOVERNORS OF THE UNIVERSITY OF NORTH CAROLINA AND THE STATE BOARD OF COMMUNITY COLLEGES, RESPECTIVELY, AND ALSO APPROPRIATING FUNDS FOR FACULTY RETENTION AT THE UNIVERSITY OF NORTH CAROLINA IN THE AMOUNT OF SIX MILLION DOLLARS FOR THE 2019‑2020 FISCAL YEAR AND ELEVEN MILLION FOUR HUNDRED THIRTY‑THREE THOUSAND FOUR HUNDRED THIRTEEN DOLLARS FOR THE 2020‑2021 FISCAL YEAR, (2) APPROPRIATING FUNDS FOR THE 2019‑2020 FISCAL YEAR TO PROVIDE A ONE PERCENT SALARY INCREASE FOR NONCERTIFIED PUBLIC SCHOOL EMPLOYEES OR A PRORATED AMOUNT AS APPROPRIATE AND EXPRESSING THE INTENTION OF THE GENERAL ASSEMBLY TO APPROPRIATE FUNDS FOR THE 2020‑2021 FISCAL YEAR TO PROVIDE A ONE PERCENT SALARY INCREASE FOR NONCERTIFIED PUBLIC SCHOOL EMPLOYEES OR A PRORATED AMOUNT AS APPROPRIATE, (3) REQUIRING THE DEPARTMENT OF PUBLIC INSTRUCTION TO STUDY AND REPORT TO THE GENERAL ASSEMBLY ON SCHOOL PSYCHOLOGIST AND SCHOOL COUNSELOR POSITIONS, (4) SETTING THE EMPLOYER CONTRIBUTION RATES FOR RETIREMENT AND RELATED BENEFITS, (5) PROVIDING TWO ONE‑TIME COST‑OF‑LIVING SUPPLEMENTS THAT ARE BOTH IN THE AMOUNT OF ONE‑HALF OF ONE PERCENT OF A BENEFICIARY'S ANNUAL RETIREMENT ALLOWANCE, (6) APPROPRIATING FUNDS TO IMPLEMENT CONNER'S LAW, AND (7) AMENDING SPECIAL INSURANCE BENEFITS OFFERINGS.
The General Assembly of North Carolina enacts:

APPROPRIATIONS
SECTION 1.1.(a)  There is appropriated from the General Fund for the 2019‑2021 fiscal biennium the sum of sixty‑six million one hundred eighty‑two thousand seventy‑eight dollars ($66,182,078) for the 2019‑2020 fiscal year and the sum of one hundred fourteen million four hundred thirty‑four thousand two hundred sixty‑three dollars ($114,434,263) for the 2020‑2021 fiscal year for the costs associated with implementing the salary and benefits provisions of this act, except those as provided by Section 6.1 of this act. These sums are allocated as follows:
Entity	2019‑2020	2019‑2020	2020‑2021	2020‑2021
	Recurring	Nonrecurring	Recurring	Nonrecurring
Community College
System Office	$12,400,000	$1,540,483	$24,800,000	$1,540,483
Department of Public
Instruction	$15,418,772	$10,264,676	$30,837,544	$10,264,676
The University of
North Carolina	$21,000,000	$1,941,512	$41,433,413	$1,941,512
DHHS – Aging and
Adult Services	$0	$3,121	$0	$3,121
DHHS – Central Management
and Support	$0	$63,639	$0	$63,639
DHHS – Child Development
and Early Education	$0	$2,435	$0	$2,435
DHHS – Health Benefits (Medicaid/
Health Choice)	$0	$22,587	$0	$22,587
DHHS – Health Service
Regulation	$0	$23,996	$0	$23,996
DHHS – Mental Health/Dev.Disabl./
Subs. Abuse Serv.	$0	$315,699	$0	$315,699
DHHS – Public Health	$0	$56,446	$0	$56,446
DHHS – Services for the Blind/Deaf/
Hard of Hearing	$0	$4,035	$0	$4,035
DHHS – Social Services	$0	$12,313	$0	$12,313
DHHS – Vocational Rehab.
Services	$0	$17,644	$0	$17,644
Dept. of Agriculture and
Consumer Services	$0	$100,409	$0	$100,409
Dept. of Commerce	$0	$10,175	$0	$10,175
Dept. of Env. Quality	$0	$43,628	$0	$43,628
Dept. of Labor	$0	$19,161	$0	$19,161
Dept. of Natural and
Cultural Resources	$0	$115,402	$0	$115,402
Wildlife Resources Comm.	$0	$11,347	$0	$11,347
Administrative Office
of the Courts	$0	$666,506	$0	$666,506
Indigent Defense Services	$0	$66,165	$0	$66,165
Department of Justice 	$0	$49,793	$0	$49,793
Dept. of Public Safety	$0	$1,683,684	$0	$1,683,684
Dept. of Administration 	$0	$34,709	$0	$34,709
Office of Admin. Hearings	$0	$5,841	$0	$5,841
Auditor	$0	$15,197	$0	$15,197
Office of Budget and
Management	$0	$7,161	$0	$7,161
Controller	$0	$18,400	$0	$18,400
Board of Elections	$0	$7,620	$0	$7,620
General Assembly	$0	$74,420	$0	$74,420
Office of the Governor	$0	$5,006	$0	$5,006
Dept. of Insurance	$0	$41,420	$0	$41,420
Industrial Commission	$0	$5,331	$0	$5,331
Office of the Lt. Governor	$0	$924	$0	$924
Dept. of Military and Veteran
Affairs	$0	$5,915	$0	$5,915
Department of Revenue	$0	$77,639	$0	$77,639
Secretary of State	$0	$13,299	$0	$13,299
Treasurer	$0	$1,359	$0	$1,359
Treasurer – Additional
Retirement Systems	$0	$0	$0	$0
Dept. of Information
Technology	$0	$14,209	$0	$14,209

SECTION 1.1.(b)  There is appropriated from the Highway Fund to the Department of Transportation for the costs associated with implementing the provisions of this act the sum of five hundred thirty thousand six hundred sixty‑nine dollars ($530,669) in nonrecurring funds for the 2019‑2020 fiscal year and the sum of five hundred thirty thousand six hundred sixty‑nine dollars ($530,669) in nonrecurring funds for the 2020‑2021 fiscal year.
SECTION 1.1.(c)  State funds, as defined in G.S. 143C‑1‑1(d)(25), are appropriated for each year of the 2019‑2021 fiscal biennium as agency receipts up to the amounts needed to implement the legislatively mandated salary increases and employee benefit increases provided in this act for each year of the 2019‑2021 fiscal biennium.

TRANSFERS
SECTION 1.2.  There is transferred from the Department of Insurance to the General Fund the sum of forty‑one thousand four hundred twenty dollars ($41,420) for the 2019‑2020 fiscal year and the sum of forty‑one thousand four hundred twenty dollars ($41,420) for the 2020‑2021 fiscal year.
SECTION 1.3.  There is transferred from the Office of the State Treasurer to the General Fund the sum of one thousand three hundred fifty‑nine dollars ($1,359) for the 2019‑2020 fiscal year and the sum of one thousand three hundred fifty‑nine dollars ($1,359) for the 2020‑2021 fiscal year.

NONCERTIFIED PERSONNEL SALARIES
SECTION 2.1.(a)  For the 2019‑2020 fiscal year, beginning July 1, 2019, the annual salary for noncertified public school employees whose salaries are supported from State funds shall be increased as follows:
(1)	For permanent, full‑time employees on a 12‑month contract, by one percent (1%).
(2)	For the following employees, by a prorated and equitable amount based on the amount specified in subdivision (1) of this subsection:
a.	Permanent, full‑time employees on a contract for fewer than 12 months.
b.	Permanent, part‑time employees.
c.	Temporary and permanent hourly employees.
SECTION 2.1.(b)  It is the intent of the General Assembly to increase the annual salary for noncertified public school employees whose salaries are supported from State funds in the 2020‑2021 fiscal year, beginning July 1, 2020, as follows:
(1)	For permanent, full‑time employees on a 12‑month contract, by one percent (1%).
(2)	For the following employees, by a prorated and equitable amount based on the amount specified in subdivision (1) of this subsection:
a.	Permanent, full‑time employees on a contract for fewer than 12 months.
b.	Permanent, part‑time employees.
c.	Temporary and permanent hourly employees.

SCHOOL PSYCHOLOGIST AND SCHOOL COUNSELOR POSITION STUDY
SECTION 2.2.(a)  The Department of Public Instruction shall study and report on school psychologist and school counselor positions. The study and report shall include a review of at least the following information:
(1)	The number of school psychologist and school counselor positions in the State and in each local school administrative unit.
(2)	The allocation of school psychologists and school counselors in each local school administrative unit among schools within those units.
(3)	The methodology each local school administrative unit uses to determine the allocation of school psychologists and school counselors within the unit.
(4)	The density of school psychologists and school counselors in each geographic region of the State.
(5)	The number, percentage, and average salary of school psychologist and school counselor positions funded with State dollars and funded with non‑State dollars.
(6)	The extent to which local school administrative units provide school psychologists and school counselors with local salary supplements and the amounts of those salary supplements.
(7)	Job descriptions posted for school psychologist and school counselor positions as compared to actual duties of school counselors.
SECTION 2.2.(b)  As part of its study, the Department shall promulgate a survey to local school administrative units no later than October 1, 2019, on any topics identified in subsection (a) of this section that can be answered by a local school administrative unit. Local school administrative units shall respond to the survey by December 31, 2019. The Department shall consolidate the information reported by the local school administrative units, provide context and analysis, as necessary, and report the results of its study to the Joint Legislative Education Oversight Committee and the Fiscal Research Division no later than March 1, 2020.

COMMUNITY COLLEGES
SECTION 3.1.(a)  For the 2019‑2021 fiscal biennium, the community college boards of trustees may provide personnel a salary increase pursuant to the policies adopted by the State Board of Community Colleges. Funds for compensation increases may be used for any one or more of the following purposes: (i) merit pay, (ii) across‑the‑board increases, (iii) recruitment bonuses, (iv) retention increases, and (v) any other compensation increase pursuant to policies adopted by the State Board of Community Colleges. The State Board of Community Colleges shall report to the General Assembly and the Fiscal Research Division on the use of these funds by no later than March 1, 2020, and March 1, 2021.
SECTION 3.1.(b)  Effective July 1, 2019, the minimum salaries for nine‑month, full‑time curriculum community college faculty for the 2019‑2021 fiscal biennium are as follows:
Education Level	Minimum Salary
Vocational Diploma/Certificate or Less	$37,581
Associate Degree or Equivalent	38,103
Bachelor's Degree	40,371
Master's Degree or Education Specialist	42,382
Doctoral Degree	45,282
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.

UNIVERSITY OF NORTH CAROLINA SYSTEM
SECTION 3.2.  For the 2019‑2021 fiscal biennium, the Board of Governors of The University of North Carolina may provide employees with salary increases pursuant to the policies adopted by the Board. Funds for compensation increases may be used for any one or more of the following purposes: (i) merit pay, (ii) across‑the‑board increases, (iii) recruitment bonuses, (iv) retention increases, and (v) any other compensation increase pursuant to those policies. The Board of Governors of The University of North Carolina shall report to the General Assembly and the Fiscal Research Division on the compensation increases awarded by no later than March 1, 2020, and March 1, 2021.

ALL STATE‑SUPPORTED PERSONNEL
SECTION 3.3.(a)  The legislative salary increases provided by this act in each year of the 2019‑2021 fiscal biennium do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to June 30, 2019, for the 2019‑2020 fiscal year or June 30, 2020, for the 2020‑2021 fiscal year. For the 2019‑2021 fiscal biennium, payroll checks issued to employees after July 1, 2019, and July 1, 2020, respectively, that represent payment of services provided prior to July 1 of each year shall not be eligible for salary increases provided for in this act.
SECTION 3.3.(b)  This section applies to all employees paid from State funds, whether or not subject to or exempt from the North Carolina Human Resources Act, including employees of public schools, community colleges, and The University of North Carolina.

SPECIAL ANNUAL LEAVE
SECTION 3.4.(a)  A person shall have a one‑time additional five days of annual leave credited on July 1, 2019, if the employee on July 1, 2019, is:
(1)	A full‑time permanent employee of The University of North Carolina eligible to earn annual leave, or
(2)	A full‑time permanent employee of a local community college eligible to earn annual leave.
SECTION 3.4.(b)  The additional leave granted in this section shall be accounted for separately in the same manner as the leave provided by Section 35.26 of S.L. 2018‑5 and shall remain available during the length of the employee's employment, notwithstanding any other limitation on the total number of days of annual leave that may be carried forward. Part‑time permanent employees shall receive a pro rata amount of the five days awarded by this section.
SECTION 3.4.(c)  The additional leave awarded under this section has no cash value and is not eligible for cash in. If not used prior to the time of separation or retirement, the bonus leave cannot be paid out and is lost.
SECTION 3.4.(d)  Notwithstanding any provision of G.S. 126‑8 to the contrary, any vacation leave remaining on December 31 of each year in excess of 30 days shall be reduced by the number of days awarded in this section that were actually used by the employee during the year, such that the calculation of vacation leave days that would convert to sick leave shall reflect a deduction of those days of special annual leave awarded in this section that were used by the employee during the year.
SECTION 3.4.(e)  The number of days awarded by this section that carry forward to each following year shall equal the number of days awarded in this section remaining on December 31 of each year plus the number of days awarded in this section that were deducted from vacation leave in excess of 30 days for the calculation of sick leave.
SECTION 3.4.(f)  No employee may be required to take the additional leave awarded by this section.

REPORT ON USE OF LAPSED SALARY FUNDS
SECTION 3.5.  Until otherwise provided by the General Assembly, the Office of State Budget and Management (OSBM) in conjunction with State agencies, as defined in G.S. 143C‑1‑1(d)(24), shall report on the use of lapsed salary funds at the end of each fiscal year. State agencies shall report to the OSBM on the use of lapsed salary, including all of the following:
(1)	The total amount of accrued lapsed salary funds by funding source.
(2)	The total number of full‑time equivalent positions comprising the lapsed salary funds.
(3)	The total expenditure of lapsed salaries by purpose.
(4)	The legal authorization to expend lapsed salary funds.
The OSBM shall report by October 1 of each year on the use of lapsed salary funds to the Joint Legislative Oversight Committees on Health and Human Services; Education; Justice and Public Safety; Transportation; Information Technology; General Government; and Agriculture and Natural and Economic Resources and the Fiscal Research Division.

ADMINISTRATIVE OFFICE OF THE COURTS COMPENSATION STUDY
SECTION 3.6.(a)  The Administrative Office of the Courts shall study the compensation of administrators, coordinators, and judicial assistants in all district and superior courts. At a minimum, the study shall evaluate the following in regard to these positions:
(1)	Salaries and total compensation compared to employees with similar work requirements in State government and in neighboring states.
(2)	Staffing levels and workload requirements compared to neighboring states.
(3)	Education and experience requirements compared to neighboring states.
(4)	The process for setting salaries and how salary adjustments are made.
SECTION 3.6.(b)  The Administrative Office of the Courts shall report its findings to the Joint Legislative Oversight Committee on Justice and Public Safety and the Fiscal Research Division no later than March 1, 2020.

SALARY‑RELATED CONTRIBUTIONS
SECTION 4.1.(a)  Effective for the 2019‑2021 fiscal biennium, required employer salary‑related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employee's salary. If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary‑related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income benefits.
SECTION 4.1.(b)  Effective July 1, 2019, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2019‑2020 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers	State	ORPs	CJRS	LRS
and State	LEOs
Employees
Retirement	12.14%	12.14%	6.84%	33.57%	22.07%
Disability	0.14%	0.14%	0.14%	0.00%	0.00%
Death	0.16%	0.16%	0.00%	0.00%	0.00%
Retiree Health	6.27%	6.27%	6.27%	6.27%	6.27%
NC 401(k)	0.00%	5.00%	0.00%	0.00%	0.00%

Total Contribution
Rate	18.71%	23.71%	13.25%	39.84%	28.34%

Portion of Rate That
Is Nonrecurring	0.16%	0.16%	0.00%	0.31%	0.33%
The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement.
SECTION 4.1.(c)  Effective July 1, 2020, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2020‑2021 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers	State	ORPs	CJRS	LRS
and State	LEOs
Employees
Retirement	12.14%	12.14%	6.84%	33.57%	22.07%
Disability	0.14%	0.14%	0.14%	0.00%	0.00%
Death	0.16%	0.16%	0.00%	0.00%	0.00%
Retiree Health	6.27%	6.27%	6.27%	6.27%	6.27%
NC 401(k)	0.00%	5.00%	0.00%	0.00%	0.00%

Total Contribution
Rate	18.71%	23.71%	13.25%	39.84%	28.34%

Portion of Rate That
Is Nonrecurring	0.16%	0.16%	0.00%	0.31%	0.33%
The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement.
SECTION 4.1.(d)  If House Bill 226, Regular Session, becomes law, then subsections (b) and (c) of Section 2.17 of that act are repealed.
SECTION 4.1.(e)  If House Bill 226, Regular Session, becomes law, then subsection (b) of this section reads as rewritten:
"SECTION 4.1.(b)  Effective July 1, 2019, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2019‑2020 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers	State	ORPs	CJRS	LRS
and State	LEOs
Employees
Retirement	13.13%	13.13%	6.84%	33.91%	26.79%
Disability	0.10%	0.10%	0.10%	0.00%	0.00%
Death	0.16%	0.16%	0.00%	0.00%	0.00%
Retiree Health	6.47%	6.47%	6.47%	6.47%	6.47%
NC 401(k)	0.00%	5.00%	0.00%	0.00%	0.00%

Total Contribution
Rate	19.86%24.86%13.41%40.38%33.26%

Portion of Rate That
Is Nonrecurring	0.16%	0.16%	0.00%	0.31%	0.33%
The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement."
SECTION 4.1.(f)  If House Bill 226 becomes law, then subsection (c) of this section reads as rewritten:
"SECTION 4.1.(c)  Effective July 1, 2020, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2020‑2021 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers	State	ORPs	CJRS	LRS
and State	LEOs
Employees
Retirement	14.52%	14.52%	6.84%	36.31%	29.33%
Disability	0.10%	0.10%	0.10%	0.00%	0.00%
Death	0.16%	0.16%	0.00%	0.00%	0.00%
Retiree Health	6.82%	6.82%	6.82%	6.82%	6.82%
NC 401(k)	0.00%	5.00%	0.00%	0.00%	0.00%

Total Contribution
Rate	21.60%26.60%13.76%43.13%	36.15%

Portion of Rate That
Is Nonrecurring	0.16%	0.16%	0.00%	0.31%	0.33%
The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement."

PROVIDE ONE‑TIME COST OF LIVING SUPPLEMENTS FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM
SECTION 4.2.(a)  G.S. 135‑5 is amended by adding new subsections to read:
"(xxx)	On or before October 31, 2019, a one‑time cost‑of‑living supplement payment shall be made to or on account of beneficiaries who are living as of September 1, 2019, and whose retirement commenced on or before September 1, 2019. The payment shall be one‑half of one percent (0.50%) of the beneficiary's annual retirement allowance payable as of September 1, 2019, and shall not be prorated for date of retirement commencement. If the beneficiary dies before the payment is made, then the payment shall be payable to the member's legal representative. No beneficiary shall be deemed to have acquired a vested right to any future supplemental payments.
(yyy)	After September 1, 2020, but on or before October 31, 2020, a one‑time cost‑of‑living supplement payment shall be made to or on account of beneficiaries who are living as of September 1, 2020, and whose retirement commenced on or before September 1, 2020. The payment shall be one‑half of one percent (0.50%) of the beneficiary's annual retirement allowance payable as of September 1, 2020, and shall not be prorated for date of retirement commencement. If the beneficiary dies before the payment is made, then the payment shall be payable to the member's legal representative. No beneficiary shall be deemed to have acquired a vested right to any future supplemental payments."
SECTION 4.2.(b)  G.S. 135‑65 is amended by adding new subsections to read:
"(ii)	On or before October 31, 2019, a one‑time cost‑of‑living supplement payment shall be made to or on account of beneficiaries who are living as of September 1, 2019, and whose retirement commenced on or before September 1, 2019. The payment shall be one‑half of one percent (0.50%) of the beneficiary's annual retirement allowance payable as of September 1, 2019, and shall not be prorated for date of retirement commencement. If the beneficiary dies before the payment is made, then the payment shall be payable to the member's legal representative. No beneficiary shall be deemed to have acquired a vested right to any future supplemental payments.
(jj)	After September 1, 2020, but on or before October 31, 2020, a one‑time cost‑of‑living supplement payment shall be made to or on account of beneficiaries who are living as of September 1, 2020, and whose retirement commenced on or before September 1, 2020. The payment shall be one‑half of one percent (0.50%) of the beneficiary's annual retirement allowance payable as of September 1, 2020, and shall not be prorated for date of retirement commencement. If the beneficiary dies before the payment is made, then the payment shall be payable to the member's legal representative. No beneficiary shall be deemed to have acquired a vested right to any future supplemental payments."
SECTION 4.2.(c)  G.S. 120‑4.22A is amended by adding new subsections to read:
"(cc)	In accordance with subsection (a) of this section, on or before October 31, 2019, a one‑time cost‑of‑living supplement payment shall be made to or on account of beneficiaries who are living as of September 1, 2019, and whose retirement commenced on or before September 1, 2019. The payment shall be one‑half of one percent (0.50%) of the beneficiary's annual retirement allowance payable as of September 1, 2019, and shall not be prorated for date of retirement commencement. If the beneficiary dies before the payment is made, then the payment shall be payable to the member's legal representative. No beneficiary shall be deemed to have acquired a vested right to any future supplemental payments.
(dd)	In accordance with subsection (a) of this section, after September 1, 2020, but on or before October 31, 2020, a one‑time cost‑of‑living supplement payment shall be made to or on account of beneficiaries who are living as of September 1, 2020, and whose retirement commenced on or before September 1, 2020. The payment shall be one‑half of one percent (0.50%) of the beneficiary's annual retirement allowance payable as of September 1, 2020, and shall not be prorated for date of retirement commencement. If the beneficiary dies before the payment is made, then the payment shall be payable to the member's legal representative. No beneficiary shall be deemed to have acquired a vested right to any future supplemental payments."
SECTION 4.2.(d)  Notwithstanding any other provision of law to the contrary, in order to administer the one‑time cost‑of‑living supplement for retirees provided for in subsections (a), (b), and (c) of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the corresponding retirement system or pay costs associated with the administration of the payment directly from the retirement assets.

AMEND SPECIAL INSURANCE BENEFITS PLAN OFFERINGS
SECTION 5.1.  G.S. 143‑166.60(d)(1) is repealed.

UNC FACULTY RETENTION
SECTION 5.2.  Of the funds appropriated to The University of North Carolina, six million dollars ($6,000,000) in fiscal year 2019‑2020 and eleven million four hundred thirty‑three thousand four hundred thirteen dollars ($11,433,413) in fiscal year 2020‑2021 shall be used for recruitment and retention of key faculty personnel.

IMPLEMENT CONNER'S LAW
SECTION 6.1.  If House Bill 283, 2019 Regular Session, becomes law, then there is appropriated from the General Fund to the Department of State Treasurer the sum of seven hundred thousand dollars ($700,000) in nonrecurring funds for the 2019‑2020 fiscal year, the sum of three hundred thousand dollars ($300,000) in recurring funds for the 2019‑2020 fiscal year, and the sum of three hundred thousand dollars ($300,000) in recurring funds for the 2020‑2021 fiscal year to pay benefits provided under House Bill 283, 2019 Regular Session.

STATE BUDGET ACT APPLICABILITY
SECTION 7.1.  If any provision of this act and G.S. 143C‑5‑4 are in conflict, the provisions of this act shall prevail. The appropriations and the authorizations to allocate and spend funds which are set out in this act shall remain in effect until the Current Operations Appropriations Act for the applicable fiscal year becomes law, at which time that act shall become effective and shall govern appropriations and expenditures. When the Current Operations Appropriations Act for that fiscal year becomes law, the Director of the Budget shall adjust allotments to give effect to that act from July 1 of the fiscal year.

EFFECTIVE DATE
SECTION 8.1.  Except as otherwise provided, this act becomes effective July 1, 2019.