GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 476
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Short Title: DST Technical Corrections/Admin. Changes 2025.-AB |
(Public) |
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Sponsors: |
Representatives Carson Smith and Wheatley (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. |
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Referred to: |
Pensions and Retirement, if favorable, Judiciary 1, if favorable, Rules, Calendar, and Operations of the House |
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March 24, 2025
A BILL TO BE ENTITLED
AN ACT MAKING TECHNICAL CORRECTIONS and administrative changes TO THE LAWS GOVERNING and related to the department of state treasurer.
The General Assembly of North Carolina enacts:
part i. extend the provisional entry period of charter schools in the teachers' and STATE employees' retirement system
SECTION 1.1. G.S. 135‑5.3 reads as rewritten:
"§ 135‑5.3. Optional participation for charter schools operated by private nonprofit corporations or municipalities.
…
(b3) A charter school seeking
to become a participating employer in the Retirement System prior to the end of
the second year of operation shall be granted provisional entry into the
Retirement System for one year. In the event the employee or employer
contributions required under G.S. 135‑8(f) are not received by the
date set by the Board of Trustees, the Board of Trustees may revoke the charter
school's provisional entry into the Retirement System. The Board must notify a
charter school in writing not less than 90 days prior to revoking a charter
school's provisional entry into the Retirement System. One year after the
charter school was granted After the charter school's initial year of provisional
entry into the Retirement System, the charter school shall undergo an actuarial
and financial review as required by the Board of Trustees.Trustees
may extend the charter school's provisional entry by up to two additional years
or the charter school may apply to become a participating employer in the
Retirement System. If the Board of Trustees extends the charter school's
provisional entry under this subsection, then the charter school may apply to
become a participating employer in the Retirement System at any time during the
extended period of provisional entry.
(b4) A charter school seeking
to applying to become a participating employer in the Retirement
System after the end of the initial year of operation but before the end of
the second year of operation may period, or during the extended period,
of provisional entry shall undergo an actuarial review and a financial
review as required by the Board of Trustees prior to entry into the
Retirement System. A charter school seeking to become a participating employer
in the Retirement System after the end of the second year of operation shall
undergo an actuarial and financial review as required by the Board of Trustees
prior to entry into the Retirement System.a decision on the application.
…
(b6) The financial review required under this section will be based on financial statements and independent audit reports or functionally equivalent reports submitted to the Board of Trustees by the charter school. Any charter school that is unable to provide this required information shall not be granted entry into the Retirement System.
…."
SECTION 1.2. This Part applies to any charter schools that seek to become a participating employer in the Teachers' and State Employees' Retirement System, or are in the initial period of provisional entry into the Retirement System, on or after the date that this act becomes law.
part ii. require the board of trustees rather than the state treasurer to determine the reversal of benefits forfeited due to felonious conduct under the teachers' and state employees' retirement SYSTEM, the local governmental retirement system, the consolidated judicial retirement system, and the legislative retirement system
SECTION 2.1.(a) G.S. 135‑18.10A(c) reads as rewritten:
"(c) If a member or
former member whose benefits under the Retirement System were forfeited
under this section, except for the return of member contributions plus
interest, subsequently receives an unconditional pardon of innocence, or the
conviction is vacated or set aside for any reason, then the member or former
member may seek a reversal of the benefit forfeiture by presenting sufficient
evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit
forfeiture is appropriate, then all benefits will be restored upon repayment of
all accumulated contributions plus interest. Repayment of all accumulated
contributions that have been received by the individual under the forfeiture
provisions of this section must be made in a total lump‑sum payment with
interest compounded annually at a rate of six and one‑half percent (6.5%)
for each calendar year from the year of forfeiture to the year of repayment. An
individual receiving a reversal of benefit forfeiture must receive
reinstatement of the service credit forfeited."
SECTION 2.1.(b) G.S. 128‑38.4A(c) reads as rewritten:
"(c) If a member or
former member whose benefits under the Retirement System were forfeited
under this section, except for the return of member contributions plus
interest, subsequently receives an unconditional pardon of innocence, or the
conviction is vacated or set aside for any reason, then the member or former
member may seek a reversal of the benefit forfeiture by presenting sufficient
evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit
forfeiture is appropriate, then all benefits will be restored upon repayment of
all accumulated contributions plus interest. Repayment of all accumulated
contributions that have been received by the individual under the forfeiture
provisions of this section must be made in a total lump‑sum payment with
interest compounded annually at a rate of six and one‑half percent (6.5%)
for each calendar year from the year of forfeiture to the year of repayment. An
individual receiving a reversal of benefit forfeiture must receive
reinstatement of the service credit forfeited."
SECTION 2.1.(c) G.S. 135‑75.1A(c) reads as rewritten:
"(c) If a member or
former member whose benefits under the Retirement System were forfeited
under this section, except for the return of member contributions plus
interest, subsequently receives an unconditional pardon of innocence, or the
conviction is vacated or set aside for any reason, then the member or former
member may seek a reversal of the benefit forfeiture by presenting sufficient
evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit
forfeiture is appropriate, then all benefits will be restored upon repayment of
all accumulated contributions plus interest. Repayment of all accumulated
contributions that have been received by the individual under the forfeiture
provisions of this section must be made in a total lump‑sum payment with
interest compounded annually at a rate of six and one‑half percent (6.5%)
for each calendar year from the year of forfeiture to the year of repayment. An
individual receiving a reversal of benefit forfeiture must receive
reinstatement of the service credit forfeited."
SECTION 2.1.(d) G.S. 120‑4.33A(c) reads as rewritten:
"(c) If a member or
former member whose benefits under the Retirement System were forfeited
under this section, except for the return of member contributions plus
interest, subsequently receives an unconditional pardon of innocence, or the
conviction is vacated or set aside for any reason, then the member or former
member may seek a reversal of the benefit forfeiture by presenting sufficient
evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit
forfeiture is appropriate, then all benefits will be restored upon repayment of
all accumulated contributions plus interest. Repayment of all accumulated
contributions that have been received by the individual under the forfeiture
provisions of this section must be made in a total lump‑sum payment with
interest compounded annually at a rate of six and one‑half percent (6.5%)
for each calendar year from the year of forfeiture to the year of repayment. An
individual receiving a reversal of benefit forfeiture must receive
reinstatement of the service credit forfeited."
part iii. clarification of fees submitted to the state treasurer for the limited practice of out‑of‑state attorneys
SECTION 3.1. G.S. 84‑4.1 reads as rewritten:
"§ 84‑4.1. Limited practice of out‑of‑state attorneys.
Any attorney domiciled in another
state, and regularly admitted to practice in the courts of record of and in
good standing in that state, having been retained as attorney for a party to
any civil or criminal legal proceeding pending in the General Court of Justice
of North Carolina, the North Carolina Utilities Commission, the North Carolina
Industrial Commission, the Office of Administrative Hearings of North Carolina,
or any administrative agency, may, on motion to the relevant forum, be admitted
to practice in that forum for the sole purpose of appearing for a client in the
proceeding. The motion required under this section shall be signed by the
attorney and shall contain or be accompanied by:by all of the
following:
…
(7) A fee in the amount of
two hundred twenty‑five dollars ($225.00) submitted and made payable to
one of the following: (i) for judicial proceedings, the presiding clerk of
court and (ii) for administrative proceedings, the presiding administrative
agency. The clerk of court or administrative agency shall: (i) remit transfer,
by way of the State's electronic accounting system, two hundred dollars
($200.00) of the fee collected to the State Treasurer North Carolina
Administrative Office of the Courts for support of the General Court of
Justice, and (ii) transmit twenty‑five dollars ($25.00) of the fee
collected to the North Carolina State Bar to regulate the practice of out‑of‑state
attorneys as provided in this section.
Compliance with the foregoing requirements does not deprive the court of the discretionary power to allow or reject the application."
part iv. able accounts modification
SECTION 4.1.(a) G.S. 147‑86.73 reads as rewritten:
"§ 147‑86.73. Administration of ABLE Program.
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(e) Claim for Medical
Assistance Benefits. – To the extent provided in subsection 26 U.S.C. §
529A(f) Unless required by federal law, upon the death of a
designated beneficiary, the State shall have not file a claim pursuant
to 20 U.S.C. § 529A(f) for payment from the beneficiary's account in an
amount equal to the total for any medical assistance paid for the
designated beneficiary after the establishment of the account. beneficiary.
The State may shall file its claim for repayment from the
account with the State Treasurer within 60 days of receiving notice from the
State Treasurer of the death of the designated beneficiary. Any remaining funds
in the beneficiary's account shall be distributed as provided in the account
agreement or distributed to the beneficiary's estate if no other designation is
made.
(f) Notice of the Death of a Designated Beneficiary. – Within 30 days of the date the State Treasurer receives notice of the death of a designated beneficiary, the State Treasurer shall provide notice of the designated beneficiary's death to the Department of Health and Human Services, Division of Health Benefits.
…
(g1) Notice for Designated Beneficiary Receiving Medicaid. – The ABLE Account application package approved in accordance with G.S. 147‑86.71(b)(1) shall include notice of the State's right under subsection (e) of this section to file a claim for payment only if required by federal law from a designated beneficiary's ABLE account following the death of a beneficiary who received medical assistance benefits.
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(i) The Department of Health and Human Services shall provide information and assistance to the Department of State Treasurer and shall enter into a data‑sharing agreement with the Department of State Treasurer for the purpose of the ongoing implementation of this act. The Department of State Treasurer shall consult with other departments as needed."
SECTION 4.1.(b) This section is effective when it becomes law and applies to deaths of designated beneficiaries on or after that date.
part v. Correct statutory references to restoration of service as aN employee or teacher in the teachers' and state employees' retirement system
SECTION 5.1.(a) G.S. 120‑32(1) reads as rewritten:
"(1) Determine the number, titles, classification, functions, compensation, and other conditions of employment of the joint legislative service employees of the General Assembly, including but not limited to the following departments:
a. Legislative Services Officer and personnel.
…
Temporary employees The
provisions of G.S. 135‑3(a)(8)c. do not apply to temporary employees
of the General Assembly are exempt from the provisions of G.S. 135‑3(8)c.,
as to with respect to compensation earned in that status.while
a temporary employee of the General Assembly."
SECTION 5.1.(b) G.S. 135‑3(a)(8) reads as rewritten:
"(8) The provisions of
this subsection (8) subdivision shall apply to any member whose
membership is terminated on or after July 1, 1963 and who becomes entitled to
benefits hereunder in accordance with the provisions hereof:all of
the following provisions:
…
c. Should Unless
otherwise provided, if a beneficiary who retired on an early or service
retirement allowance under this Chapter be Article is reemployed
by, or otherwise engaged to perform services for, an employer participating in
the Retirement System on a part time, temporary, interim, or on a fee for
service basis, whether contractual or otherwise, except as provided in G.S.
120-32(1), and if such the beneficiary earns an amount during
the 12 month period immediately following the effective date of retirement or
in any calendar year which exceeds fifty percent (50%) of the reported
compensation, excluding terminal payments, during the 12 months of service
preceding the effective date of retirement, or twenty thousand dollars
($20,000), whichever is greater, as hereinafter indexed, then the retirement
allowance shall be suspended as of the first day of the month following the
month in which the reemployment earnings exceed the amount above, indexed
amount, for the balance of the calendar year, except when unless the
reemployment earnings exceed the amount above indexed amount in
the month of December, in which case December. If the reemployment
earnings exceed the indexed amount in December, then the retirement
allowance shall not be suspended. The A suspended retirement
allowance of the beneficiary shall be reinstated as of January 1 of each year
following suspension. The amount that may be earned before suspension shall be
increased on January 1 of each year by the percentage change between the
December Consumer Price Index in the year prior to retirement and the December
Consumer Price Index in the year most recently ended, calculated to the nearest
tenth of a percent (1/10 of 1%), provided that this percentage change is
positive.
c1. Within 90 days of the end of each month in which a beneficiary is reemployed under the provisions of sub‑subdivision c. of this subdivision, each employer shall provide a report for that month on each reemployed beneficiary, including the terms of the reemployment, the date of the reemployment, and the amount of the monthly compensation. If the required report is not received within the required 90 days, the Board may do any or all of the following:
…
e. Any beneficiary who
retired on an early or service retirement allowance as an employee of any State
department, agency or institution under the Law Enforcement Officers'
Retirement System and becomes employed as an employee by a State department,
agency, or institution as an employer participating in the Retirement System
shall become subject to the provisions of G.S. 135‑3(8)c and
G.S. 135‑3(8)d sub‑subdivisions c. and d. of this
subdivision on and after January 1, 1989.
…."
SECTION 5.1.(c) G.S. 135‑3(b) reads as rewritten:
"(b) Notwithstanding the
provisions of sub‑subdivsions sub‑subdivisions c. and
d. of subdivision (8) (a)(8) of this section to the contrary, a
beneficiary who was a beneficiary retired on an early or service retirement
with the Law Enforcement Officers' Retirement System at the time of the
transfer of law enforcement officers employed by the State and beneficiaries
last employed by the State to this Retirement System on January 1, 1985, and
who also was a contributing member of this Retirement System on January 1,
1985, shall continue to be paid his or her retirement allowance without
restriction and may continue as a member of this Retirement System with all the
rights and privileges appendant to membership."
SECTION 5.1.(d) G.S. 135‑5(hh) reads as rewritten:
"(hh) Notwithstanding any
other provision of this Chapter, from and after July 1, 1983, the retirement
allowance payable to each teacher and State employee, who retired prior to July
1, 1973, and who is in receipt of a reduced retirement allowance based upon 30
or more years of contributing membership service, shall be increased by the
elimination of the reduction factors applicable at the time of their retirement
under G.S. 135-3(8) G.S. 135‑3(a)(8) or
G.S. 135‑5(b3). The provisions of this subsection shall apply
equally to the allowance of a surviving annuitant of a beneficiary."
SECTION 5.1.(e) G.S. 135‑5.1(a)(4) reads as rewritten:
"(4) Field faculty of the
Cooperative Agriculture Extension Service, and tenure track faculty in North
Carolina State University agriculture research programs who are exempt from the
North Carolina Human Resources Act and who are eligible for membership in
the Teachers' and State Employees' Retirement System pursuant to G.S. 135‑3(1),
who in any of the cases described in this subsection (i) who either had
been members of the Optional Retirement Program under the provisions of Chapter
338, Session Laws of 1971, immediately prior to July 1, 1985, or (ii) or
have sought membership as required in subsection (b), below. subsection
(b) of this section. Under the Optional Retirement Program, the State and
the participant shall contribute, to the extent authorized or required, toward
the purchase of such contracts under subsection (b) of this section or
deposited in such trust on the participant's behalf."
SECTION 5.1.(f) G.S. 135‑27(e)(3) reads as rewritten:
"(3) Terminate
contributing membership service and be entitled alternatively to the benefits
and allowances provided under G.S. 135‑3(8) G.S. 135‑3(a)(8)
or G.S. 135‑5(a)."
SECTION 5.1.(g) G.S. 143B‑1491(e) reads as rewritten:
"(e) The members of the
Commission shall receive the salary fixed by the General Assembly in the
Current Operations Appropriations Act and shall receive necessary travel and
subsistence expenses in accordance with the provisions of G.S. 138‑6.
Notwithstanding any other provision of law, the The half‑time
members of the Commission shall not be subject to the provisions of G.S. 135‑3(8)(c).G.S. 135‑3(a)(8)c."
part vI. Correct reference to article 11 of chapter 159 of the general statutes
SECTION 6.1.(a) G.S. 153A‑82 reads as rewritten:
"§ 153A‑82. Powers and duties of manager.
(a) The manager is the chief administrator of county government. The manager is responsible to the board of commissioners for the administration of all departments of county government under the board's general control and has the following powers and duties:
…
(9) The manager shall receive a minimum of six clock hours of education upon the occurrence, or within six months of the occurrence, of any of the following:
a. The Local Government
Commission is exercising its authority under Article 10 11 of
Chapter 159 of the General Statutes with respect to the county.
b. The county has received a
unit letter from the Local Government Commission due to a deficiency in
complying with Chapter 159 of the General Statutes.
…."
SECTION 6.1.(b) G.S. 159‑25 reads as rewritten:
"§ 159‑25. Duties of finance officer; dual signatures on checks; internal control procedures subject to Commission regulation.
…
(d) The Local Government Commission
has the authority to require any finance officer or any other employee who
performs the duties of a finance officer to participate in training related to
the powers, duties, and responsibilities of the finance officer under any of
the following circumstances: (i) the Commission is exercising its authority
under Article 10 11 of this Chapter with respect to the employing
local government or public authority, (ii) the employing local government or
public authority has received a unit letter from the Commission due to a
deficiency in complying with this Chapter, (iii) the employing local government
or public authority has an internal control material weakness or significant
deficiency in the most recently completed financial audit, or (iv) the finance officer
fails to annually meet or attest to the minimum qualifications of the position,
as established by the Commission. The training may be provided by the
Commission, the School of Government at the University of North Carolina, the
North Carolina Community College System, the North Carolina League of
Municipalities, the North Carolina Association of County Commissioners, or
other qualified sources at the choice of the governing board and upon the prior
approval of the Commission. When the Commission requires a finance officer or
other employee to participate in training as authorized in this subsection, the
Commission shall notify the finance officer or other employee and the employing
local government or public authority of the required training. Upon completion
of the required training by the finance officer or other employee, the
employing local government or public authority shall submit, in writing, to the
Commission proof that the training requirements have been satisfied.
(e) The Local Government Commission
may require any local government or public authority to contract with outside
entities in accordance with the terms of subdivision (9) of subsection (a) of
this section if the local government or public authority has received a unit
letter from the Commission due to a deficiency in complying with this
Chapter or the local government or public authority has an internal control
finding in the most recently completed financial audit."
SECTION 6.1.(c) G.S. 160A‑148 reads as rewritten:
"§ 160A‑148. Powers and duties of manager.
(a) The manager shall be the chief administrator of the city. The manager shall be responsible to the council for administering all municipal affairs placed in the manager's charge by the council, and shall have the following powers and duties:
…
(9) The manager shall receive a minimum of six clock hours of education upon the occurrence, or within six months of the occurrence, of any of the following:
a. The Local Government
Commission is exercising its authority under Article 10 11 of
Chapter 159 of the General Statutes with respect to the city.
b. The city has received a unit
letter from the Local Government Commission due to a deficiency in
complying with Chapter 159 of the General Statutes.
…."
part vII. miscellaneous technical and conforming changes
SECTION 7.1. G.S. 120‑4.21(b2)(3) reads as rewritten:
"(3) For a member whose
retirement date occurs on or after his the member's 50th birthday
and before his the member's 60th birthday and upon completion of
20 years of creditable service, computation as in subdivision (2) of this
subsection, reduced by the same percentage as provided for in Article 1 of
Chapter 135 of the General Statutes.under G.S. 135‑5(b21)(2)."
SECTION 7.2. G.S. 120‑4.28 reads as rewritten:
"§ 120‑4.28. Survivor's alternate benefit.
(a) The designated beneficiary of If a
member who dies in service before retirement but after age 60 and after
completing five years of creditable service or after completing 12 years of
creditable service service, then the principal beneficiary designated
by that member to receive a return of accumulated contributions under G.S. 120‑4.25
is entitled to Option 2 prescribed by G.S. 120‑4.26.
(b) In the event that If a retirement
allowance becomes payable under this section to the principal
beneficiary designated to receive a return of accumulated contributions
pursuant to this subsection and that principal beneficiary dies
before the total of the retirement allowances paid equals is equal to
or greater than the amount of those the member's accumulated contributions
over the total of the retirement allowances paid to the beneficiary, contributions,
then the allowance excess of those accumulated contributions over
the total of the retirement allowance paid to the principal beneficiary shall
be paid in a lump sum to the person or persons the member has designated as the
contingent beneficiary for return of accumulated contributions, if the
person or persons contributions under G.S. 120‑4.25.
(c) If a retirement allowance becomes payable under this section and the principal beneficiary is not living at the time the payment falls due, then the retirement allowance shall be paid to the contingent beneficiary designated to receive a return of accumulated contributions under G.S. 120‑4.25. If that contingent beneficiary dies before the total of the retirement allowances paid is equal to or greater than the amount of the member's accumulated contributions, then the excess of those accumulated contributions over the total of the retirement allowances paid to the contingent beneficiary shall be paid in a lump sum to the contingent beneficiary's legal representative.
(d) If no beneficiaries are living at the time
the payment required under this section first falls due, otherwise to
then the allowance shall be paid in a lump sum to the principal
beneficiary's legal representative. In the event that a retirement allowance
becomes payable to the contingent beneficiary designated to receive a return of
accumulated contributions pursuant to subsection (m) of this section and that
beneficiary dies before the total of the retirement allowances paid equals the
amount of the accumulated contributions of the member at the date of the
member's death, the excess of those accumulated contributions over the total of
the retirement allowances paid to the beneficiary shall be paid in a lump sum
to the contingent beneficiary's legal representative."
SECTION 7.3. G.S. 128‑28(c) reads as rewritten:
"(c) Members of Board. –
The Board shall consist of (i) five members of the Board of Trustees of the
Teachers' and State Employees' Retirement System appointed under G.S. 135‑6(b):
the State Treasurer; the Superintendent of Public Instruction; the two members
appointed by the General Assembly; and one of the two members appointed by the
Governor who are not members of the teaching profession or State employees; and
(ii) eight members designated by the Governor:Governor. The members
designated by the Governor are as follows:
(1) One member shall be a
mayor or a member of the governing body of a city or town participating in the
Retirement System;System.
(2) One member shall be a
county commissioner of a county participating in the Retirement System;System.
(3) One member shall be a law‑enforcement
officer employed by an employer participating in the Retirement System;System.
(4) One member shall be a
county manager of a county participating in the Retirement System;System.
(5) One member shall be a
city or town manager of a city or town participating in the Retirement System;System.
(6) One member shall be an
active, Fair Labor Standards Act nonexempt, local governmental employee of an employer;employer.
(7) One member shall be a
retired, Fair Labor Standards Act nonexempt, local governmental employee of an employer;
andemployer.
(8) One member shall be an
active or retired member of the Firemen's North Carolina Firefighters'
and Rescue Squad Workers' Pension Fund.
The Governor shall designate eight
members on April 1 of years in which an election is held for the office of
Governor, or as soon thereafter as possible, and each of the eight
members designated by the Governor shall serve on the Board in addition to the regular
duties of their the member's city, town, or county office:
Provided, that if office. If for any reason any member appointed
pursuant to subdivisions (1) through (6) of this subsection vacates the city,
town, or county office or employment which that the member held
at the time of this designation, then the Governor shall designate
another member to serve until the next regular date for the designation of
members to serve on the Board."
SECTION 7.4. G.S. 128‑26A is redesignated as G.S. 128‑26.1.
SECTION 7.5. G.S. 135‑48.40(d)(10) reads as rewritten:
"(d) Fully Contributory Coverage. – The following persons shall be eligible for coverage under the Plan, on a fully contributory basis, subject to the provisions of G.S. 135‑48.43:
…
(10) Any eligible dependent
child of the deceased retiree, teacher, State employee, member of the General
Assembly, former member of the General Assembly, or Disability Income Plan
beneficiary, provided the child was covered at the time of death of the
retiree, teacher, State employee, member of the General Assembly, former member
of the General Assembly, or Disability Income Plan beneficiary, (or was
in posse at the time and is covered at birth under this Part), Part, or
was covered under the Plan on September 30, 1986. An eligible surviving
dependent child can remain covered until age 26 or indefinitely if certified as
incapacitated under G.S. 135‑44.41(b).G.S. 135‑48.41(b)."
part vIIi. effective date
SECTION 8.1. This act is effective when it becomes law.