Compendium 2015-2016

North Carolina Student
Legislature
Compendium 2015-2016
Governor: Ridge Parker, Secretary of State: Joshua Fritz
North Carolina Student Legislature

Charter Members
2015-2016
Campbell University
University of North Carolina Charlotte
University of North Carolina Chapel Hill
Elon University
Lenoir-Rhyne
Office of the Secretary of State,

April 10th, 2016
The North Carolina Student Legislature (NCSL) is a nonprofit, taxexempt organization whose primary purpose is to educate college and
university students in North Carolina about State Government. One of
the chief educational tools we have is the Annual Legislative Session,
held in Raleigh every year at the Old Capitol. The Compendium,
published after each Session, is a compilation of all of the bills,
resolutions, and issue analysis papers that have been researched
during the year and passed at monthly Interim Councils as well as
Session.
Like its predecessors, the 1986 Compendium is a presentation of
NCSLs output of research and is not intended to influence pending
legislation in the North Carolina General Assembly. NCSL is not a
lobbying group; it serves as a forum for ideas and discussion. We hope
the examination of issues contained in this Compendium will aid in
informing the general public, legislators, and members of State
Government of some of the problems that face North Carolina
presently and in the future.
I personally hope that this Compendium is informative as to the
concerns of the University Students of the great State of North
Carolina.
Sincerely,
Joshua David Fritz

Secretary of State
Office of the Lieutenant Governor

April 7th, 2016
My Fellow Delegates,
I would like to welcome you to our 79th Annual Session.
As the 79th year of this historic organization comes to a close
I want you to all look back and congratulate yourself on the
hard work and dedication you have put in. Never before has
this organization faced such overwhelming and harrowing
odds. However, never before has such a fine group of people
fought so hard to save this organization. Moving forward I
am untroubled. The survival of this organization has never
been less of a worry, I know that by your hard work this
organization will survive and continue to thrive. I hope you
all look around and take in this week. It is an effort borne of
countless hours of work and determination and would not be
possible without you. I thank you for allowing me to serve as
your Lt. Governor for these few short months, it has been my
honor, enjoy these four days you have earned it. I hope that
in 20 years I will see you all here again for the 100 th annual
session.
Sincerely,
Johnathan Cort Lesnik

Lieutenant Governor
4
Office of the Governor

April 7th, 2016
My Fellow Delegates,
Welcome to our 79th Annual Session! I hope that you are
all ready to work hard this week to accomplish our goals. It
has been an honor serving as your governor this year and I
would like to sincerely thank each of you for giving me this
opportunity. NCSL is an organization that has been close to
my heart for many years and will continue to be so after I
leave the organization this year.
I hope you all enjoy this years session and get as much
out of it as possible. I encourage everyone to participate to
the fullest and enjoy every moment of this wonderful
experience. Session is truly one of my favorite parts of the
legislative year. Session is your opportunity to really make a
difference and show all the hard work that you have put in
this year. Have a great week and dont squander this
opportunity. I sincerely hope you enjoy session and
appreciate all the hard work that has gone in over the year
to make this week possible. Without you all it would be
impossible to have such a fantastic session. It has truly been
an honor serving as your Governor and I look forward to
enjoying my last NCSL session with you. I hope that each of
you continue to work hard and make this organization as
great as it can be.
Sincerely,
Ridge Tyler Parker
Governor
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Table of Contents
1.
2.
3.
4.
5.
History of the North Carolina Student Legislature...page 7

List of the Officers for the 2015-16page 11
House Bills12
Senate Bills88
History
The North Carolina Student Legislature Assembly first convened
at 2:00 pm on November 12, 1937 in the House Chamber of the State
Capitol. This first Session was organized by N.C. State College
professor Edwin H Paget, a debate coach, who had observed the
Kansas Student Legislature while touring with his team. Intrigued with
the idea, he returned to North Carolina and issued invitation to a state
speech competition at which state and national issues would be
discussed. Phi Kappa Delta fraternity at N.C. State offered to host the
assembly, and positive responses flooded Paget from across North
Carolina. In fact, every college with an active team which an invitation
was issued accepted, including Winthrop College in South Carolina.
One Hundred and twenty-one students from eighteen schools
attended this first meeting of the S.L.A. Governor Clyde Hoey
welcomed the group to Raleigh, and Secretary of State Thad Eure
served as honorary parliamentarian. Even in its first year, the
Assembly considered rather controversial issues. The students passed
a bill providing the Governor with veto power, and a resolution was
defeated urging President Roosevelt to seek a third term of office.
Other bills introduced included higher appropriations for education
(Mars Hill), stronger English requirements for high school graduates
(N.C. State), and compulsory sterilization of habitual criminals, mental
defectives and diseased incurables (Wake Forest). The media followed
the Assembly closely, and much of the Roosevelt debate was broadcast
live on WPTF and WRAL.
1938-1944.
The State Student Legislature quickly grew to
over 200 members and was soon referred to as the largest assembly
of its kind in the nation. The two-day Sessions were held in October or
November and were arranged by Phi Kappa Delta fraternity. Praise for
the organization was abundant, and top state officials urged the
creation of student legislatures in other states. One 1939 News and
Observer article noted that: Truly untrammeled by personal interests,
lobbyists or other pressure group, the straight-forward discussion by
college students provided less mockery than many a real General
Assembly.
Legislation passed by the students during these years included
succession for the Governor (1939), creation of a standard nine-month
school term with twelve grades (1940), compulsory military training of
men 18-21 after the war (1943), lowering of the voting age to 18
(1944), and allowing women to serve on North Carolina juries (1944).
1945-1947.
UNC student Buddy Glenn proposed in 1945
that Negro college students by invited to attend the Tenth Annual
Session the next year. Reaction to the resolution (which passed 110 to
48) was widespread and immediate.
Top state officials warned
that the students were moving too quickly, and that their actions could
be reason for dissolving the assembly. Opposition to the integration act
prompted UNC President Frank Porter Graham to issue a statement in
support of the students. Since rumors suggested that the students
creating the motion were Communists or Northerners, or both, Graham
spoke to this issue. He explained that the UNC students were from
North Carolina and that the motivation would have passed even
without their votes. Graham added: These students in large majority
are serious minded and studious, with a high sense of sobriety, with a
fine sense of decency, and a responsible sense of freedom.
Five black colleges were represented among the twenty-four
institutions that attended the 1946 Session. Although the media gave
attention to the workings of the assembly, a number of novel issues
were discussed. As a News & Observer headline read, Liberal
Tendencies Shown in Measures Passed by Student Legislature. One bill
that passed urged the formation of two four-year medical schools in
the state, one for whites and one for blacks. For the first time the
Student Legislature was completely student organized. Founder Edwin
Paget, as well as Phi Kappa Delta fraternity, withdrew after the 1945
Session.
On October 30, 1947, the Executive Committee of the N.C.
Student Legislative Council called off the proposed 1947 Session and
voted to dissolve the Council. Although the reasons cited were
administrative, the state president granted that the racial question
had a large part to play in the action. In fact, an investigation had
been launched to study the original integration motion. One student
commented that the origin of the resolution had been traced to New
York.
Response to the Committees action was immediate. Other
schools announced that the administrative difficulties descried were
false and that no notice was given of the meeting at which the
Assembly was dissolved. UNC hosted a meeting on November 9 at
which plans were adopted to continue with the proposed Session.
Although permission was granted to use the Hall of the House, The
8
Senate Chamber was denied because of its use by the State Education
Commission. On November 21 the 11th Annual Assembly was
postponed until the spring of 1948, no reasons given.
1948-1956. The Student Legislature became increasingly
concerned with state issues during these years. Attendance at the
annual meetings was well over 200 students. Attendance at the annual
meetings was well over 200 students.
Resolutions introduced included eliminating segregation on

public carriers, in restrooms, and in public library reading rooms (Shaw1949); requiring remembers of the University Board of Trustees to
retire upon reaching 65 (1952); revoking the license of drivers found to
be under the influence of intoxicants (Linoir-Rhyne-1954); enacting a
state minimum wage law (1956); and requiring birth certificates as
proof of age before marriage ceremonies (1956). An interesting note is
that at least a fourth of the 1949 Student Legislature was female while
there were only two women in the actual General Assembly.
1957-1959.
The Assembly again drew criticism when it
rescinded the laws and constitutional provisions against interracial
marriages. In response the Council of State decide to require letters of
sponsorship from the heads of at least half of the participating colleges
before granting use of the Capitol for the 1958 Session. Although
permission was granted, a snowstorm forced the Assembly to cancel
the Session at the last minute. Active students during these years
included some who have gone on to prestigious public careers,
including James B Hunt; H Edward Knox; Jane Smith Patterson; John C
Brooks; and Thomas O Gilmore.
1960-1971.
Because of its liberal views, the Student
Legislature was banned from the State Capitol. In these years, the SSL
met in Raleigh hotels and continued to discuss controversial issues.
The organization legalized abortions in 1962; prohibited the Ku Klux
Klan from the State Fair in 1967; and passed other legislation on
kindergartens, a state lottery, liquor-by-drink, and civil rights. Also at
this time the Student Legislature became more of a year-round
organization with committees which carefully prepared for Session.
1972-1983. In 1972 the structure of the SSL was altered
drastically. The name of the group was changed to the North Carolina
Student Legislature (NCSL), and the elected officers changed from a
President, Vice President, and Secretary to a Governor, Lt. Governor,
9
Secretary of State, and Attorney General. Incorporation of the

organization as a tax-exempt, non-profit, educational corporation
allowed the group to solicit tax-exempt contributions.
The length of Sessions as well as work done outside of Session
increased. Sessions lengthened from three days to five. Monthly
Interim Councils (originally for officers) became well-attached
meetings with resolutions, speakers, receptions, and workshops.
An interest in seeing NCSL legislation enacted into state or
national law became a concern. The Compendium was brought before
legislative committees. Numerous NCSL members have served on
state boards and commissions. Also, the creation of an internship
program gave high school students the opportunity to learn about
legislative processes.
1984-present.
The emphasis of the Student Legislature during
the last few years has been on professionalism and stability. Great care
has been given to modeling the legislative processes of state
government in detail. In addition, government and business leaders are
kept closely informed of NCSL events and opinions.
Debate and research are presently at their highest level in the
Student Legislature. Issues for resolutions and bills are thoroughly
prepared, often month in advance.
As the Golden Anniversary of NCSL has drawn closer, priority has
been placed on establishing ties with NCSLs past and future. Alumni
names and addresses, as well as the history of our organization, have
been carefully compiled and computerized. Our newsletter, The
Quarterly, allows NCSL friends to keep aware of our activities.
10
The Student Legislature has seen many exciting changes during

the last 80 years. But the functions of NCSL have remained the same
to provide a voice for the college population of our state and to allow
hands on experience in state government for young people. By
maintaining these two goals throughout the years, the North Carolina
Student Legislature has earned the rank of the oldest, as well as the
premiere, Student Legislature of the country.
Sincerely,
Joshua David Fritz
NCSL Historian
North Carolina Student Legislature

2015-2016
Executive Officers
Ridge Tyler Parker,
Johnathan Cort Lesnik ,
Governor
Helen Dichelle Helms,
Joshua David Fritz,
State
Lilly Stell,
Recruitment
Tyler Michael Stallings,
Governor
Lieutenant
Attorney General
Secretary
Secretary
of
of
Treasurer
Annual Session Officers

Helen Dichelle Helms,
Speaker of the House

11
Mathew Ellis,
Johnathan Cort Lesnik,
Senate
Andr Jefferies,
tempore
Speaker Pro-tempore
President of the
President
Pro-
AGENDA SUBJECT TO CHANGE WITHOUT NOTICE
NORTH CAROLINA
STUDENT LEGISLATURE
12
House of Representatives
Bills
SPEAKER OF THE HOUSE ----------------------Helen
Helms
SPEAKER PRO-TEMPORE-----------------------Matthew
Ellis
IN THE NORTH CAROLINA STUDENT LEGISLATURE
79TH ANNUAL SESSION
13
NCSL HB 001
Short Title: The United We Stand Act

House Sponsor: Matthew Ellis & Brandon Hendricks
Senate Sponsor: _
Referred To: Justice
A BILL TO BE ENTITLED
AN ACT TO IMPROVE THE RELATIONSHIP BETWEEN LAW ENFORCEMENT
AND THE REPRESENTED NORTH CAROLINA COMMUNITY
The North Carolina Student Legislature Enacts:

Section 1. G.S. 14-223 reads as rewritten:
14-223. Resisting officers.
If any person shall willfully and unlawfully resist, delay or obstruct a public officer in
discharging or attempting to discharge a duty of his office, he shall be guilty of a Class 2
misdemeanor. A person resisting his or her own personal arrest shall not carry any
penalty so long as there is no other charge being brought against the individual at the time
of the arrest. It shall be illegal to arrest someone solely for resisting their own personal
arrest. These conditions do not apply to the delay or obstruction of a public officer
administering justice for another individual or group of individuals.
Section 2. Chapter 15A of the General Statutes is amended as rewritten:
15A-201. Definitions.
The following definitions apply in this Article:
(1) Body-worn camera. An operational video camera provided by a law
enforcement agency and affixed to a law enforcement officer's uniform and
positioned in a way that allows the video camera to capture interactions the law
enforcement officer has with the public. The video camera shall include a
microphone or other mechanism for allowing audio capture. This term does not
include cameras privately owned and provided by a law enforcement officer.
(2) Dashboard camera. A device or system installed or used in a law
enforcement vehicle that electronically records images depicting activities that
take place during a traffic stop, vehicle pursuit, vehicle search, and other
14
interaction with the public that is within the range of the camera. This term does
not include body-worn cameras.
(3) Law enforcement agency. Any duly accredited State or local government
agency possessing authority to enforce the criminal laws of the State. For
purposes of this Article, this term does not include local law enforcement agencies
located in a county with a population of less than 200,000, as determined by the
most recent decennial federal census.
(4) Law enforcement officer. Any employee of a law enforcement agency who
(i) is actively serving in a position with primary duties and responsibilities for the
prevention and detection of crime or the general enforcement of the criminal laws
of the State, (ii) possesses the power of arrest by virtue of an oath administered
under the authority of the State, and (iii) is primarily assigned to patrol duties. For
purposes of this Article, this term also includes on-duty State correctional officers.
(5) Law enforcement vehicle. A motor vehicle owned, operated, or otherwise
controlled by a law enforcement agency, the State, or a political subdivision of the
State, and used primarily for traffic stops. This term does not include law
enforcement vehicles used primarily for surveillance or undercover operations.
(6) Recordable interaction. An interaction between a law enforcement officer, in
his or her official capacity, and a member or members of the public, including an
inmate or inmates of a State correctional facility. This term includes traffic stops;
arrests; searches; interrogations not covered under G.S. 15A-211; interviews with
victims and witnesses; and pursuits.
(7) Recording. A visual and audio recording captured by a body-worn camera.
15A-202. Body-worn cameras required for law enforcement officers.
(a) _ Requirement. Except as otherwise provided in subsection (b) of this section, a
law enforcement officer shall wear and activate a body-worn camera during any
recordable interaction. Except when doing so would be unsafe, impracticable, or
impossible, a law enforcement officer shall inform the person or people the law
enforcement officer is interacting with that the interaction is being recorded. A law
enforcement officer shall not deactivate a body-worn camera until (i) the conclusion of
the recordable interaction, (ii) the law enforcement officer has left the scene, (iii) a
supervisor, while being recorded, authorizes the law enforcement officer to deactivate the
body-worn camera, or (iv) an exception listed in subsection (b) of this section authorizes
deactivation. Prior to deactivating a body-worn camera, a law enforcement officer shall
announce that he or she is deactivating the body-worn camera and the reason why he or
she is deactivating the body-worn camera. A law enforcement officer shall note in any
incident report prepared after a recordable interaction that a recording was made.
(b) _ Exceptions. A law enforcement officer shall not be required to activate a bodyworn camera in any of the following places or situations:
(1) Interactions with confidential informants and undercover officers.
15
(2) During routine, non-law enforcement related activities, including when a law
enforcement officer is engaged in a personal conversation, when a law
enforcement officer is using a rest room or bathroom, or when a law enforcement
officer is dressing or undressing in a locker room or dressing room.
(3) When a law enforcement officer is providing training or making a presentation
to the public.
(4) When entering a private residence under unofficial circumstances, unless
written or on-camera consent is given by the owner or the occupier of the
residence.
(5) When a law enforcement officer is conducting a strip search, unless written or
on-camera consent is given by the person being strip searched.
(6) Interactions with a victim or witness, unless written or on-camera consent is
given by the victim or witness.
(c) _ Evidence. If otherwise admissible, a recording captured by a body-worn camera
pursuant to this section may be used as evidence in any relevant administrative, civil, or
criminal proceeding. No recording made from a body-worn camera can be used by a
department or other law enforcement official to punish an officer for using his or her
reasonable use of discretion to not charge a suspect for a violation.
(d) _ Public Access. Notwithstanding G.S. 132-1.4, 153A-98, 160A-168, or any other
provision of law to the contrary, a law enforcement agency may must disclose or provide
a copy of any recording captured by a body-worn camera under this section to any person
who submits a written request to the law enforcement agency. Prior to disclosing or
providing a copy of a recording captured by a body-worn camera under this section, a law
enforcement agency may redact any portion of the recording that (i) a law enforcement
officer is not required to record under subsection (b) of this section or (ii) is otherwise
prohibited by law from being disclosed. A law enforcement agency shall provide a
written statement to the person who requested access to the recording explaining why
portions of a recording are redacted or why the law enforcement agency is declining to
disclose or provide a copy of the recording. Nothing in this subsection shall be construed
to alter or supersede the requirement in subsection (f) of this section that a law
enforcement agency retain an original, unredacted recording. Any person who is denied
access to a recording under this subsection, or an unredacted recording under this
subsection, may apply to the appropriate division of the General Court of Justice for an
order compelling disclosure or copying, and the court shall have jurisdiction to issue the
order. An action brought pursuant to this subsection shall be set down for immediate
hearing, and subsequent proceedings in the action shall be accorded priority by the trial
and appellate courts. Unless otherwise prohibited by law, and upon a showing of good
cause by the person seeking access, the court may issue an order compelling disclosure or
copying of portions or all of a recording captured by a body-worn camera under this
section.
16
(e) _ Retention. A law enforcement agency shall retain an original, unredacted

recording captured by a body-worn camera pursuant to this section for the later of (i) 60
days from the date of the recording, (ii) the period specified in a court order, or (iii) 10
days from the date an administrative, civil, or criminal proceeding in which the recording
was used as evidence concludes. If there is an ongoing criminal investigation in which a
recoding may be used as evidence in a case, that recording until the end of the trial, the
case is dismissed, or the investigation is dropped.
(f) _ Training. A law enforcement agency shall provide training to a law enforcement
officer on how to operate a body-worn camera prior to the law enforcement officer
wearing and activating a body-worn camera.
(g) _ Policy. The Department of Justice shall develop a model policy or policies for
law enforcement agencies to use in implementing the provisions of this section. A policy
developed pursuant to this subsection shall include disciplinary action for failing to
activate a body-worn camera as required by subsection (a) of this section, up to and
including immediate dismissal from employment. A policy developed pursuant to this
subsection may include standards more stringent than the standards required under this
section.
15A-203. Use of dashboard cameras in law enforcement vehicles.
(a) _ Requirement. If a law enforcement vehicle is equipped with a dashboard camera
with sound recording capabilities, and except as provided in subsection (b) of this
section, a law enforcement officer shall activate the dashboard camera when engaging in
a traffic stop, vehicle pursuit, vehicle search, or other interaction with the public that is
within the range of the camera. Except when doing so would be unsafe, impracticable, or
impossible, a law enforcement officer shall inform the person or people the law
enforcement officer is interacting with that the interaction is being recorded. A law
enforcement officer shall not deactivate a dashboard camera until (i) the conclusion of the
traffic stop, vehicle pursuit, vehicle search, or other interaction with the public, (ii) the
law enforcement officer has left the scene, (iii) a supervisor, while being recorded,
authorizes the law enforcement officer to deactivate the dashboard camera, or (iv) an
exception listed in subsection (b) of this section authorizes deactivation. Prior to
deactivating a dashboard camera, a law enforcement officer shall announce that he or she
is deactivating the dashboard camera and the reason why he or she is deactivating the
dashboard camera. A law enforcement officer shall note in any incident report prepared
after an interaction with the public that a recording was made using a dashboard camera.
(b) _ Exceptions. To the extent that they are applicable, a law enforcement officer
shall not be required to activate a dashboard camera in any of the places or situations
listed in subsection (b) of G.S. 15A-202.
(c) _ Other Requirements. The requirements listed in subsections (c) through (h) of
G.S. 15A-202 shall apply to the use of dashboard cameras under this section. Any
17
reference to body-worn cameras in subsections (c) through (i) of G.S. 15A-202 shall be
deemed to be a reference to dashboard cameras for purposes of this subsection.
(d) _ Construction. Nothing in this section shall be construed to require the
installation of a dashboard camera in a law enforcement vehicle.
Section 3. Notwithstanding G.S.143C-5-2, there is appropriated from the General
Fund to the Governor's Crime Commission within the Department of Public Safety the
sum of five million dollars ($5,000,000) in nonrecurring funds for the 2016-2017 fiscal
year to provide grants to law enforcement agencies for the purposes of purchasing and
maintaining body-worn cameras, as required by Section 2 of this act.
Section 4. The Governor's Crime Commission shall develop the guidelines and
procedures for the administration and distribution of grants under this section.
Section 5. Section 1, Section 3, and Section 4 of this act shall become effective
upon ratification. Section 2 of this act shall become effective upon January 1st, 2017.
18
79TH ANNUAL SESSION
NCSL HB 002
Short Title:
Support for Bully Victims in Public Schools
House Sponsor:
Il-Woong Oh
Senate Sponsor:
Referred To: Education
AN ACT TO PROVIDE SUPPORT TO BULLY VICTIMS IN PUBLIC SCHOOLS.

Section 1. 115C-300. In-service training.
(1) Local boards of education are authorized to provide for the professional growth of teachers while
in service and to pass rules and regulations requiring teachers to cooperate with their
superintendent for the improvement of instruction in the classroom and for promoting community
improvement. (1955, c. 1372, art. 5, s. 29; 1981, c. 423, s. 1.)
(2) Every public school will have at least one mandatory support group for students who are victims
as well as students being accused of bullying, in order that the victims will have an option to seek
support if they are bullied. All teachers and staff in every public school will be required to take a
mandatory class, whenever hired to work at a public school; this class will cover how to identify
bullying and the proper methods to approach and correct any type of bullying done from one
individual to another. This class will include working with previously bullied students in order to
gain perspective; teachers and staff will observe the short- and long- term effects of bullying on
students lives. Each individual school board will decide the curriculum for this class.
Section 2. This Act is effective upon the next academic school year upon ratification.
19
79TH ANNUAL SESSION
NCSL HB 003
Short Title: Online Voter Registration Act

House Sponsor: Vincent Cahill
Senate Sponsor:
Referred To: Rules
AN ACT UPDATING THE STATE BOARD OF ELECTIONS ONLINE SYSTEM TO
FACILITATE ONLINE VOTER REGISTRATION

Section 1. Chapter 163, Article 7A of the General Statutes rereads as written:
163-82.11. Establishment of statewide computerized voter registration.
(a)
Statewide System as Official List. The State Board of Elections shall develop
and implement a statewide computerized voter registration system to facilitate voter registration
and to provide a central database containing voter registration information for each county. The
system shall serve as the single system for storing and managing the official list of registered
voters in the State. The system shall serve as the official voter registration list for the conduct of
all elections in the State. This system shall feature an online interface through which voters can
fully complete the voter registration process or update their voter registration information. The
system shall encompass both software development and purchasing of the necessary hardware for
the central and distributed-network systems.
(b)
Uses of Statewide System. The State Board of Elections shall develop and
implement the system so that each county board of elections can do all the following:
(1)
Verify that an applicant to register in its county is not also registered in

another county.
(2)
Be notified automatically that a registered voter in its county has

registered to vote in another county.
(3)
Receive automatically data about a person who has applied to vote at a

drivers license office or at another public agency that is authorized to
accept voter registration applications.
20
(c)
Compliance With Federal Law. The State Board of Elections shall update the
statewide computerized voter registration list and database to meet the requirements of section
303(a) of the Help America Vote Act of 2002 and to reflect changes when citizenship rights are
restored under G.S. 13-1.
(d)
Role of County and State Boards of Elections. Each county board of elections
shall be responsible for registering voters within its county according to law. Each county board
of elections shall maintain its records by using the statewide computerized voter registration
system in accordance with rules promulgated by the State Board of Elections. Each county board
of elections shall enter through the computer system all additions, deletions, and changes in its
list of registered voters promptly to the statewide computer system.
(e)
Cooperation on List for Jury Commission. The State Board of Elections shall
assist the Division of Motor Vehicles in providing to the county jury commission of each county,
as required by G.S. 20-43.4, a list of all registered voters in the county and all persons in the
county with drivers license records. The list of registered voters provided by the State Board of
Elections shall not include any registered voter who has been inactive for eight years or more.
(1993 (Reg. Sess., 1994), c. 762, s. 2; 2003-226, s. 6; 2007-512, s. 4.)
Section 2. This Act shall be effective upon enrollment.
21
79TH ANNUAL SESSION
NCSL HB 004
Short Title: Limit Contributions by State Vendors

House Sponsor: Chase Johnson
Senate Sponsor:
Referred To: Rules
AN ACT TO LIMIT CAMPAIGN CONTRIBUTIONS BY INDIVIDUALS WHO DIRECTLY
AND SUBSTAINALLY BENEFIT FROM CONTRACTS WITH THE STATE TO CANDIATE
CAMPAIGN COMMITTEES.

Section 1. Article 22A of Chapter 163 of the General Statues is amended by adding a
new section to read:
163-278.13D. Limitation on contributions from State vendors.
(a)
(b)
No vendor of this State may make a contribution greater than five hundred dollars ($500.00) per
election to a candidate or candidate campaign committee for a public office if the public office
has authority over the contract with the vendor.
For purposes of this section, the term vendor shall mean any of the following:
(1)
An individual with a contract greater than twenty-five thousand dollars
($25,000) with any state government office.
(2)
An individual employed by a corporation or person with a contract

greater than twenty-five thousand dollars ($25,000) with any state
government office in any of the following capacities:
a.
Will derive a direct financial benefit from the contract. Direct

financial benefit exists only if the individual (i) has more than
ten percent (10%) beneficial ownership in a party to the contract
or (ii) acquires property under the contract.
b.
Oversees the performance of the contract and has authority to

make decisions regarding the contract or to interpret the contract.
c.
Participates in the development of specifications or terms and in

the preparation or award of the contract.
22
(3)
An individual who is a member of a board, commission or other

body of a corporation with a contract greater than twenty-five
thousand dollars ($25,000) with any state government office that
takes action on the contract.
Section 2. This Act is effective January 1st, 2017 and applies to contributions made on or
after that date.
79TH ANNUAL SESSION
23
NCSL HB 005
Short Title: Policies That Encourage High School to Work Partnerships

House Sponsor: Emma Frantz
Senate Sponsor:
AN ACT DIRECTING LOCAL BOARDS OF EDUCATION TO ADOPT AND IMPLEMENT
POLICIES THAT ENCOURAGE HIGH SCHOOL TO WORK PARTNERSHIPS.

Section 1. G.S. 115C-47 reads as rewritten:
115C-47. In addition to the powers and duties designated in G.S. 115C-36, local boards of
education shall have the power or duty:
(a) To Encourage High School to Work Partnerships. Each local board of education
shall encourage high schools and local businesses to partner, specifically target students who may
not seek higher education targeting all students without exception to race, gender, or other
discriminatory categories to ensure overall adequate awareness, understanding, and sufficiency,
and facilitate high school to work partnerships. Local businesses shall be encouraged to work
with local high schools to create opportunities for students to complete a job shadow, internship,
or apprenticeship, or service learning opportunity. Students may also be encouraged to tour the
local business or clinic, meet with employees, and participate in career and technical student
organizations. Waiver forms may be developed in collaboration with participating businesses for
the protection of both the students and the businesses.
(b) Each local board of education shall encourage high schools to designate multiple the
Career Development Coordinators or other designees of the local Career and Technical Education
administrators to be the point persons for local businesses to contact. If the persons selected is a
teacher, the teacher shall work with the principal and the local Career and Technical Education
administrator to find time in the school day to contact businesses and develop opportunities for
students. The high school shall include a variety of trades and skilled labor positions for students
to interact with and shadow and shall encourage students who may be interested in a jobshadowing work-based learning opportunity to pursue and set up the job shadow position. Each
Career Development Coordinator shall ensure a mandatory meeting with students at the
beginning of each school year in order to analyze and evaluate progress throughout their high
school career. Program-based assessments shall ensure that each student has continuing
knowledge and access to resources that could inform them about work-based learning
24
opportunities in high school and the benefits these opportunities offer, as well as what to expect
and opportunities upon completion of high school that can include continuing education or
entrance into the workforce.
(c) Each local board of education shall develop a policy with provisions for students who
are absent from school while doing a job shadow to make up the work. Students shall not be
counted as absent when participating in these work-based learning opportunities or in Career and
Technical Education student organization activities. Local boards may work with the local
businesses to determine maximum numbers of days and hours to be used for job-shadowing
activities work-based learning career opportunities, with a minimum of six weeks.
(d) Each local board of education shall develop a curriculum that integrates subjectmatter learning and extends to work-based learning experiences. Career-related activities shall be
integrated into all aspects of the curriculum. Teachers shall attend annual development sessions to
stay attuned with the current demands and skills that universities and employers look for in order
to incorporate these into academic curriculum as well.
Section 2. This act is effective when it becomes law and applies beginning with the 20162017 school year.
25
79TH ANNUAL SESSION
NCSL HB 006
Short Title: Human Resource Center/ Homeless persons.

House Sponsor: Jose Montano
Senate Sponsor:
AN ACT TO PROVIDE ADDITIONAL AID FOR EMPLOYMENT PROGRAMS IN LIGHT
OF THE INCREASING POPULATION OF HOMELESS PEOPLE IN HOMELESS SHELTERS
IN NORTH CAROLINA
PART I. EQUALITY
126-16. Equal opportunity for employment and compensation by State departments and
agencies and local political subdivisions.
All State agencies, departments, and institutions and all local political subdivisions of
North Carolina shall give equal opportunity for employment and compensation, without
regard to race, religion, color, national origin, sex, age, disability, or genetic information,
regardless of actual or perceived housing status, or low income to all persons otherwise
qualified. (1971, c. 823; 1975, c. 158; 1977, c. 866, s. 7; 1979, c. 862, s. 3; 1983 (Reg.
Sess., 1984), c. 1116, s. 111; 1985, c. 571, s. 2; 1991, c. 65, s. 6; 2013-382, s. 7.1.)
PART II. HOMELESS VETERANS BENEFITS

26
165-6. Powers and duties of the Department.

In furtherance of the stated purpose of this Article, the Department is hereby authorized
and empowered to do the following:
(1) To assist veterans, their families, and dependents in the presentation,
processing, proof, and establishment of such claims, privileges, rights, and
benefits as they may be entitled to under federal, State, or local laws, rules, and
regulations.
(2) To aid persons in active military service and their dependents with problems
arising out of said service which come reasonably within the purview of the
Department's program of assistance.
(3) To collect data and information as to the facilities and services available to
veterans, their families, and dependents and to cooperate with agencies
furnishing information or services throughout the State in order to inform such
agencies regarding the availability of (i) education, training and retraining
facilities, (ii) health, medical, rehabilitation, and housing services and facilities,
(iii) employment and reemployment services, (iv) provisions of federal, State,
and local laws, rules, and regulations affording rights, privileges, and benefits to
veterans, their families, and dependents, and in respect to such other matters of
similar, related, or appropriate nature not herein set out.
(4) To establish such field offices, facilities and services throughout the State as
may be necessary to carry out the purposes of this Article.
(5) To cooperate, as the Department deems appropriate, with governmental,
private, and civic agencies, homeless services, social service organizations and
instrumentalities in securing services or benefits for veterans, their families,
dependents and beneficiaries.
(6) To accept any property, funds, service, or facilities from any source, public or
private, granted in aid or furtherance of the administration of the provisions of
this Article.
(7) To enter into any contract or agreement with any person, firm, or corporation,
or governmental agency or instrumentality in furtherance of the purposes of this
Article, and to make all rules and regulations necessary for the proper and
effective administration of its duties.
(8) It shall be the duty of the Department to train, assist, and provide guidance to
the employees of any county, city, town, or Indian tribe who are engaged in
veterans service. Authority is hereby granted the governing body of any county,
city or town to appropriate such amounts as it may deem necessary to provide a
veterans service program and the expenditure of such funds is hereby declared to
be for a public purpose; such program shall be operated in affiliation with this
Department as set forth above and in compliance with Department policies and
procedures.
27

96-21. Duties concerning veterans and worker profiling.
The duties of the Employment Security Section include the following:
(1) To cooperate with all State and federal agencies in attempting to secure
employment and fair treatment employment and reemployment, housing services,
rehabilitation, and fair treatment for military veterans and disabled veterans
military veterans, disabled veterans, and homeless veterans.
(2) To cooperate with the Opening Doors: Federal Strategic Plan to Prevent and
End Homelessness for military veterans, disabled veterans, and homeless
veterans to establish permanent housing options on or off abandoned military
bases.
(3) To establish and use a worker profiling system that complies with 42 U.S.C.
503(a)(10) to identify claimants for benefits whom the Section must refer to
reemployment services in accordance with that law. (1921, c. 131, s. 3; C.S., s.
7312(c); Ex. Sess. 1936, c. 1, s. 12; 1979, c. 660, s. 26; 1993 (Reg. Sess., 1994),
c. 680, s. 6; 2011-401, s. 2.22.)
PART III. HOMELESS CHILDREN AND SCHOOL

115C-366. Assignment of student to a particular school.
(a1) Children living in and cared for and supported by an institution established,
operated, or incorporated for the purpose of rearing and caring , caring, or housing for
children who do not live with their parents are considered legal residents of the local
school administrative unit in which the institution is located. These children are eligible
for admission to the public schools of the local school administrative unit as provided in
this section.
(a2) It is the policy of the State that every child of a homeless individual and every
homeless child and youth has access to a free, appropriate public education. The State
Board of Education and every local board of education shall ensure compliance with the
federal McKinney-Vento Homeless Education Assistance Improvements Act of 2001. A
local board of education shall not charge a homeless child or youth tuition for enrollment.
An unaccompanied youth or a homeless child's or youth's parent, guardian, or legal
custodian may apply to the State Board of Education for a determination of whether a
particular local board of education shall enroll the homeless child or youth, and this
determination shall be binding on the local board of education, subject to judicial review.
PART IV. HUMAN RESOURCE

Section 5. G.S. 126-3 reads as written:
28
126-3. Office of State Human Resources established and responsibilities outlined;

Administration and supervision; appointment, compensation and tenure of
Director.
(a) There is hereby established the Office of State Human Resources (hereinafter referred
to as "the Office") which shall be placed for organizational purposes within the Office of
the Governor. Notwithstanding the provisions of North Carolina State government
reorganization as of January 1, 1975, and specifically notwithstanding the provisions of
Chapter 864 of the 1971 North Carolina Session Laws, Chapter 143A of the General
Statutes, the Office of State Human Resources shall exercise all of its statutory powers in
this Chapter, which shall be under the administration and supervision of a Director of the
Office of State Human Resources (hereinafter referred to as "the Director") appointed by
the Governor and subject to the supervision of the Commission for purposes of this
Chapter. The salary of the Director shall be fixed by the Governor. The Director shall
serve at the pleasure of the Governor.
(b) The Office shall be responsible for the following activities, and such other activities
as specified in this Chapter:
(1) Providing policy and rule development for the Commission and implementing
and administering all policies, rules, and procedures established by the
Commission.
(2) Providing training in personnel management to agencies, departments, and
institutions including train-the-trainer programs for those agencies, departments,
and institutions who request such training and where sufficient staff and expertise
exist to provide the training within their respective agencies, departments, and
institutions.
(3) Providing technical assistance in the management of personnel programs and
activities to agencies, departments, and institutions.
(4) Negotiating decentralization agreements with all agencies, departments, and
institutions where it is cost-effective to include delegation of authority for certain
classification and corresponding salary administration actions and other
personnel programs to be specified in the agreements.
(5) Administering such centralized programs and providing services as approved
by the Commission which have not been transferred to agencies, departments,
and institutions or where this authority has been rescinded for noncompliance.
(6) Providing approval authority of personnel actions involving classification and
compensation where such approval authority has not been transferred by the
Commission to agencies, departments, and institutions or where such authority
has been rescinded for noncompliance.
(7) Maintaining a computer database of all relevant and necessary information on
employees and positions within agencies, departments, and institutions in the
State's personnel system.
29
(8) Developing criteria and standards to measure the level of compliance or

noncompliance with established Commission policies, rules, procedures, criteria,
and standards in agencies, departments, and institutions to which authority has
been delegated for classification, salary administration, performance
management, development, evaluation, and other decentralized programs, and
determining through routine monitoring and periodic review process, that
agencies, departments, and institutions are in compliance or G.S. 126-3 Page 2
noncompliance with established Commission policies, rules, procedures, criteria,
and standards.
(9) Implementing corrective actions in cases of noncompliance.
(10) Administering the State employee suggestion program (NC-Thinks). (1965,
c. 640, s. 2; 1975, c. 667, s. 5; 1983, c. 717, s. 40; 1983 (Reg. Sess., 1984), c.
1034, s. 164; 1997-349, s. 2; 2011-224,
Section 6. G.S. 55A-5-01 reads as written:
55A-5-01. Registered office and registered agent.
Each corporation must maintain a registered office and registered agent as required by
Article 4 of Chapter 55D of the General Statutes and is subject to service on the Secretary
of State under that Article. (1955, c. 1230; 1957, c. 979, s. 20; 1993, c. 398, s. 1; 1995, c.
400, s. 1; 2000-140, s. 101(d); 2001-358, s. 48(a); 2001-387, s. 173; 2001-413, s. 6.)
Section 7. G.S. 55A-16-01 reads as written:

55A-16-01. Corporate records.
(a) A corporation shall keep as permanent records minutes of all meetings of its members
and board of directors, a record of all actions taken by the members or directors without a
meeting pursuant to G.S. 55A-7-04, 55A-7-08, or 55A-8-21, and a record of all actions
taken by committees of the board of directors in place of the board of directors on behalf
of the corporation.
(b) A corporation shall maintain appropriate accounting records.
(c) A corporation or its agent shall maintain a record of its members, in a form that
permits preparation of a list of the names and addresses of all members, in alphabetical
order by class, showing the number of votes each member is entitled to cast.
(d) A corporation shall maintain its records in written form or in another form capable of
conversion into written form within a reasonable time.
(e) A corporation shall keep a copy of the following records at its principal office:
(1) Its articles of incorporation or restated articles of incorporation and all
amendments to them currently in effect;
(2) Its bylaws or restated bylaws and all amendments to them currently in effect;
30
(3) Resolutions adopted by its members or board of directors relating to the

number or classification of directors or to the characteristics, qualifications,
rights, limitations, and obligations of members or any class or category of
members;
(4) The minutes of all membership meetings, and records of all actions taken by
the members without a meeting pursuant to G.S. 55A-7-04 or G.S. 55A-7-08, for
the past three years;
(5) All written communications to members generally within the past three years,
and the financial statements, if any, that have been furnished or would have been
required to be furnished to a member upon demand under G.S. 55A-16-20 during
the past three years;
(6) A list of the names and business or home addresses of its current directors and
officers; and
(7) Repealed by Session Laws 1995, c. 539, s. 29, effective July 29, 1995. (1955,
c. 1230; 1969, c. 875, s. 6; 1985 (Reg. Sess., 1986), c. 801, s. 31; 1993, c. 398, s.
1; 1995, c. 539, s. 29.)
PART V. EFFECTIVE DATE

Section 8. This Act becomes effective January 1, 2017,
31
79TH ANNUAL SESSION
NCSL HB 007
Short Title: Employee Discrimination Restitution Act

Senate Sponsor:
AN ACT CLARIFYING THE ROLE OF THE STATE JUDICIARY IN EMPLOYEE
DISCRIMINATION LITIGATION

Section 1. Chapter 49A of the General Statutes rereads as written:
" 143-422.3. Investigations; conciliations.
The Human Relations Commission in the Department of Administration shall have the
authority to receive charges of discrimination from the Equal Employment Opportunity
Commission pursuant to an agreement under Section 709(b) of Public Law 88-352, as amended
by Public Law 92-261, and investigate and conciliate charges of discrimination. Throughout this
process, the agency shall use its good offices to effect an amicable resolution of the charges of
discrimination. This Article does not create, and shall not be construed to create or support, a
statutory or common law private right of action, and no person may bring any civil action based
upon the public policy expressed herein."
32
79TH ANNUAL SESSION
NCSL HB 008
Short Title:
North Carolina Education Lottery
House Sponsor:
Anthony Johnson / Vincent Piombino
Senate Sponsor:
Referred To: Rules
AN ACT TO SHOW A BILL WITH GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2005 H D HOUSE BILL 1023 Full text of the North Carolina State Lottery
Act, House Bill 1023 (S.L. 2005-344), as amended by Section 31.1 of Senate Bill 622
(S.L. 2005-276) Short Title: North Carolina State Lottery Act. (Public) Sponsors:
Referred to: March 31, 2005 1 A BILL TO BE ENTITLED 2 AN ACT TO ESTABLISH
A STATE LOTTERY TO GENERATE FUNDS TO 3 FURTHER THE GOAL OF
PROVIDING ENHANCED EDUCATIONAL 4 OPPORTUNITIES SO THAT ALL
STUDENTS IN THE PUBLIC SCHOOLS 5 CAN ACHIEVE THEIR FULL
POTENTIAL, TO SUPPORT SCHOOL 6 CONSTRUCTION, TO FUND COLLEGE
AND UNIVERSITY SCHOLARSHIPS, 7 AND TO MAKE CONFORMING
CHANGES TO THE GENERAL STATUTES. 8 The General Assembly of North
Carolina enacts: 9 10 THIS VERSION SHOWS HOUSE BILL 1023 AS ENACTED
(S.L. 2005-344), ALONG 11 WITH THE CHANGES MADE BY PART XXXI
(SECTION 31.1) OF SENATE BILL 12 622, S.L.. 2005-276 (THE BUDGET). IT IS AN
ENGROSSMENT, TO SHOW WHAT 13 THE NORTH CAROLINA STATE LOTTERY
ACT LOOKS LIKE WITH THE TWO 14 ACTS COMPILED TOGETHER. 15 16
SECTION 1. PROMOTE MORE TRANSPARENCY WITHIN THE NC EDUCATION
LOTTERY OF THE STATUTES MAKING PUBLICLY AVAILABLE THE ALLOTMENT
FROM THE MONEY THAT ARE FUNDED THROUGHOUT THE NC STATE
EDUCATION SYSTEM. NORTH CAROLINA LOTTERY ACKNOWLEDGE TO THE
PUBLIC OF THE MONTHLY, QUARTERLY, AND YEARLY STATISTICS OF SELLS
FOR TO BE ALLOTTED TO EACH DIVISION OF THE RECEIPTS OF THE NC
EDUCATION LOTTERY MAKING AVAILABLE EVERY FUND OR PROCEEDS OF
LOTTERY FUNDS TO MEET THE PUBLICS INTEREST. . The General Statutes are
amended by adding a new Chapter to 17 read: 18 "Chapter 18C. 19 "North Carolina State
Lottery. 20 "Article 1. 21 "General Provisions and Definitions. 22 " 18C-101. Citation.
23 This Chapter shall be known and may be cited as the North Carolina State Lottery 24
Act. 25 " 18C-102. Purpose and intent. General Assembly of North Carolina Session
2005 Page 2 House Bill 1023 H1023-CSLB-94 [v.10] 1 The General Assembly declares
that the purpose of this Chapter is to establish a 2 State-operated lottery to generate funds
for the public purposes described in this 3 Chapter. 4 " 18C-103. Definitions. 5 As used
33
in this Chapter, unless the context requires otherwise: 6 (1) 'Commission' means the
North Carolina State Lottery Commission. 7 (2) 'Commissioner' means a member of the
Commission. 8 (3) 'Director' means the person selected by the Commission to be the
chief 9 administrator of the North Carolina State Lottery. 10 (4) 'Game' or 'lottery game'
means any procedure or amusement 11 authorized by the Commission where prizes are
distributed among 12 persons who have paid, or unconditionally agreed to pay, for tickets
or 13 shares that provide the opportunity to win those prizes and does not 14 utilize a
video gaming machine as defined in G.S. 14-306.1(c). 15 (5) 'Lottery' means any lottery
game or series of games established and 16 operated pursuant to this Chapter. 17 (6)
'Lottery contractor' means a person other than a lottery retailer with 18 whom the
Commission has contracted for the purpose of providing 19 goods or services to the
Commission. 20 (7) 'Person' means any natural person or corporation, limited liability 21
company, trust, association, partnership, joint venture, subsidiary, or 22 other business
entity. 23 (8) 'Retailer', 'lottery retailer', or 'lottery game retailer' means a person 24 with
whom the Commission has contracted to sell tickets or shares in 25 lottery games. 26 (9)
'Share' means any method of participation in a lottery game, other than 27 by a ticket
purchased on an equivalent basis with a ticket. 28 (10) 'Ticket' means any tangible
evidence authorized by the Commission to 29 demonstrate participation in a lottery
game. 30 (11) 'Vendor' or 'lottery vendor' means any person other than a lottery 31 retailer
who submits a bid, proposal, or offer to procure a contract for 32 goods or services for
the Commission. 33 " 18C-104 through 18C-109: Reserved for future codification
purposes. 34 "Article 2. 35 "North Carolina State Lottery Commission. 36 " 18C-110.
Establishment of the North Carolina State Lottery Commission to be 37 a self-supporting
agency of the State. 38 There is created the North Carolina State Lottery Commission to
establish and 39 oversee the operation of a Lottery. The Commission shall be located in
the Department 40 of Commerce for budgetary purposes only; otherwise, the
Commission shall be an 41 independent, self-supporting, and revenue-raising agency of
the State. The Commission 42 shall reimburse other governmental entities that provide
services to the Commission. 43 " 18C-111. Commission membership; appointment;
selection of chair; vacancies; 44 removal; meetings; compensation. General Assembly of
North Carolina Session 2005 H1023-CSLB-94 [v.10] House Bill 1023 Page 3 1 (a) The
Commission shall consist of nine members, five of whom shall be 2 appointed by the
Governor, two of whom shall be appointed by the General Assembly 3 upon the
recommendation of the President Pro Tempore of the Senate, and two of 4 whom shall be
appointed by the General Assembly upon the recommendation of the 5 Speaker of the
House of Representatives. The Governor shall select the chair of the 6 Commission from
among its membership, who shall serve at the pleasure of the 7 Governor. 8 (b) Of the
initial appointees of the Governor, three members shall serve a term of 9 one year, one
member shall serve a term of two years, and one member shall serve a 10 term of three
years. Of the initial appointees of the General Assembly upon the 11 recommendation of
the President Pro Tempore of the Senate, one member shall serve a 12 term of two years,
and one member shall serve a term of three years. Of the initial 13 appointees of the
General Assembly upon the recommendation of the Speaker of the 14 House of
Representatives, one member shall serve a term of two years, and one member 15 shall
serve a term of three years. All succeeding appointments shall be for terms of five 16
years. Members shall not serve for more than two successive terms. 17 (c) Vacancies
34
shall be filled by the appointing authority for the unexpired portion 18 of the term in
which they occur. 19 (d) The Commission shall meet at least quarterly upon the call of
the chair. A 20 majority of the total membership of the Commission shall constitute a
quorum. 21 (e) Members of the Commission shall receive per diem, subsistence, and
travel 22 as provided in G.S. 138-5 and G.S. 138-6. 23 " 18C-112. Qualifications of
Commissioners. 24 (a) Of the members of the Commission appointed by the Governor, at
least one 25 member shall have a minimum of five years' experience in law enforcement.
26 (b) Of the members appointed by the General Assembly upon the 27 recommendation
of the President Pro Tempore of the Senate, one member shall be a 28 certified public
accountant. 29 (c) Of the members of the Commission appointed by the General
Assembly upon 30 the recommendation of the Speaker of the House of Representatives,
one member shall 31 have retail sales experience as an owner or manager. 32 (d) In
making appointments to the Commission, the appointing authorities shall 33 consider the
composition of the State with regard to geographic representation and 34 gender, ethnic,
racial, and age composition. 35 " 18C-113. Meetings; records. 36 (a) Meetings of the
Commission shall be subject to Article 33C of Chapter 143 37 of the General Statutes. 38
(b) Except as provided in this Article, records of the Commission shall be open 39 and
available to the public in accordance with Chapter 132 of the General Statutes. 40 (c)
Personnel records of the Commission are subject to Article 7 of Chapter 126 41 of the
General Statutes. 42 " 18C-114. Powers and duties of the Commission. 43 (a) The
Commission shall have the following powers and duties: General Assembly of North
Carolina Session 2005 Page 4 House Bill 1023 H1023-CSLB-94 [v.10] 1 (1) To specify
the types of lottery games and gaming technology to be 2 used in the Lottery. 3 (2) To
prescribe the nature of lottery advertising which shall comply with 4 the following: 5 a.
All advertising shall include resources for responsible gaming 6 information. 7 b. No
advertising may intentionally target specific groups or 8 economic classes. 9 c. No
advertising may be misleading, deceptive, or present any 10 lottery game as a means of
relieving any person's financial or 11 personal difficulties. 12 d. No advertising may have
the primary purpose of inducing 13 persons to participate in the Lottery. 14 (3) To specify
the number and value of prizes for winning tickets or shares 15 in lottery games,
including cash prizes, merchandise prizes, prizes 16 consisting of deferred payments or
annuities, and prizes of tickets or 17 shares in the same lottery game or other lottery
games. 18 (4) To specify the rules of lottery games and the method for determining 19
winners of lottery games. 20 (5) To specify the retail sales price for tickets or shares for
lottery games. 21 (6) To establish a system to claim prizes, including determining the
time 22 periods within which prizes must be claimed, to verify the validity of 23 tickets
or shares claimed to win prizes, and to effect payment of those 24 prizes. 25 (7) To
conduct a background investigation, including a criminal history 26 record check, of
applicants for the position of Director, which may 27 include a search of the State and
National Repositories of Criminal 28 Histories based on the fingerprints of applicants. 29
(8) To charge a fee of lottery vendors not to exceed the cost of the 30 criminal record
check of the lottery vendor. 31 (9) To specify the manner of distribution, dissemination,
or sale of lottery 32 tickets or shares to lottery game retailers or directly to the public. 33
(10) To determine the incentives, if any, for any lottery employees, lottery 34 vendors,
lottery contractors, or electronic computer terminal operators. 35 (11) To specify the
authority, compensation, and role of the Director, and 36 to specify the authority,
35
selection, and role of the other employees of 37 the Commission. All of the following
apply to all employees of the 38 Commission: 39 a. No employee of the Commission
may have a financial interest 40 in any lottery vendor or lottery contractor, other than an
interest 41 as part of a mutual fund. 42 b. No employee of the Commission with decisionmaking 43 authority shall participate in any decision involving the retailer 44 or vendor
with whom the employee has a financial interest. General Assembly of North Carolina
Session 2005 H1023-CSLB-94 [v.10] House Bill 1023 Page 5 1 c. No employee of the
Commission who leaves the employment of 2 the Commission may represent any vendor
or retailer before the 3 Commission for a period of one year following termination of 4
employment with the Commission. 5 d. A background investigation shall be conducted on
each 6 applicant for employment with the Commission. 7 e. The Commission shall bond
all employees with access to lottery 8 funds or revenue or security. 9 (12) To approve and
authorize the Director to enter into agreements with 10 other states to operate and
promote multistate lotteries consistent with 11 the purposes set forth in this Chapter. 12
(13) Any other powers necessary for the Commission to carry out its 13 responsibilities
under this Chapter. 14 (b) Article 3D of Chapter 147 of the General Statutes shall not
apply to the 15 Commission. 16 " 18C-115. Reports. 17 The Commission shall send
quarterly and annual reports on the operations of the 18 Commission to the Governor,
State Treasurer, and to the General Assembly. The reports 19 shall include complete
statements of lottery revenues, prize disbursements, expenses, 20 net revenues, and all
other financial transactions involving lottery funds, including the 21 occurrence of any
audit. 22 " 18C-116. Audits. 23 The State Auditor shall conduct annual audits of all
accounts and transactions of the 24 Commission and any other special post audits the
State Auditor considers to be 25 necessary. 26 " 18C-117 through 18C-119: Reserved
for future codification purposes. 27 "Article 3. 28 "North Carolina State Lottery Director.
29 " 18C-120. Selection of the Director; powers and duties. 30 (a) The Commission
shall select a Director to operate and administer the Lottery 31 and to serve as the
Secretary of the Commission. Except as to the provisions of Articles 32 6 and 7 of
Chapter 126 of the General Statutes, the Director shall be exempt from the 33 State
Personnel Act. 34 (b) The Director shall have the following powers and duties, under the
35 supervision of the Commission: 36 (1) To provide for the reporting of payment of
lottery game prizes to State 37 and federal tax authorities and for the withholding of State
and federal 38 income taxes from lottery game prizes as provided in State and federal 39
law. 40 (2) To conduct a background investigation, including a criminal history 41 record
check, of applicants for employment with the Commission, 42 lottery retailers, and
lottery contractors, which may include a search of 43 the State and National Repositories
of Criminal Histories based on the 44 fingerprints of applicants. General Assembly of
North Carolina Session 2005 Page 6 House Bill 1023 H1023-CSLB-94 [v.10] 1 (3) To set
the salaries of all Commission employees, subject to the 2 approval of the Commission.
Except for the provisions of Articles 6 3 and 7 of Chapter 126 of the General Statutes, all
employees of the 4 Commission shall be exempt from the State Personnel Act. 5 (4) To
enter into contracts with lottery retailers and lottery contractors 6 upon approval by the
Commission. 7 (5) To provide for the security and accuracy in the operation and 8
administration of the Commission and the Lottery, including 9 examining the background
of all prospective employees, lottery 10 vendors, lottery contractors, and lottery retailers.
11 (6) To coordinate and collaborate with the appropriate law enforcement 12 authorities
36
regarding investigations of violations of the laws relating to 13 the operation of the

Lottery and make reports to the Commission 14 regarding those investigations. 15 (7) To
confer with the Commission on the operation and administration of 16 the Lottery and
make available for inspection by the Commission all 17 books, records, files, documents,
and other information of the Lottery. 18 (8) To study the operation and administration of
other lotteries and to 19 collect demographic and other information concerning the
Lottery and 20 make recommendations to improve the operation and administration of 21
the Lottery to the Commission, to the Governor, and to the General 22 Assembly. 23 (9)
To provide monthly financial reports to the Commission of all lottery 24 revenues, prize
disbursements, expenses, net revenues, and all other 25 financial transactions involving
lottery funds. 26 (10) To enter into agreements with other states to operate and promote
27 multistate lotteries consistent with the purposes set forth in this 28 Chapter and upon
the approval of the Commission. 29 " 18C-121. Accountability; books and records.
Making public knowledge the proceeds of the North Carolina Education Fund with its
flexibility and allotted funds for use throughout the state benefits all North Carolinians
by adding this accountability to the fund and transparency be presented to the public.30
The Director shall have made and kept books and records that accurately and 31
completely reflect each day's transactions, including the distribution of tickets or shares
32 to lottery game retailers, receipt of funds, prize claims, prizes paid directly by the 33
Commission, expenses, and all other financial transactions involving lottery funds 34
necessary to permit preparation of financial statements that conform with generally 35
accepted accounting principles. 36 " 18C-122. Independent audits. 37 (a) At the
beginning of each calendar year, the Commission shall engage an 38 independent firm
experienced in security procedures, including computer security and 39 systems security,
to conduct a comprehensive study and evaluation of all aspects of 40 security in the
operation of the Commission and of the Lottery. At a minimum, such a 41 security
assessment should include a review of network vulnerability, application 42 vulnerability,
application code review, wireless security, security policy and processes, 43
security/privacy program management, technology infrastructure and security controls,
44 security organization and governance, and operational effectiveness. General
Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10] House Bill 1023 Page
7 1 (b) The portion of the security audit report containing the overall evaluation of 2 the
Commission and of lottery games in terms of each aspect of security shall be 3 presented
to the Commission, to the Governor, and to the General Assembly. 4 (c) The portion of
the security audit report containing specific recommendations 5 shall be confidential,
shall be presented only to the Director and to the Commission, and 6 shall be exempt
from Chapter 132 of the General Statutes. The Commission may hear 7 the report of such
an audit, discuss, and take action on any recommendations to address 8 that audit under
G.S. 143-318.11(a)(1). 9 (d) Biennially at the end of the fiscal year, the Commission shall
engage an 10 independent auditing firm that has experience in evaluating the operation of
lotteries to 11 perform an audit of the Lottery. The results of this audit shall be presented
to the 12 Commission, to the Governor, and to the General Assembly. 13 " 18C-123
through 18C-129: Reserved for future codification purposes. 14 "Article 4. 15 "Operation
of Lottery. 16 " 18C-130. Types of lottery games; lottery games and lottery advertising;
certain 17 disclosures and information to be provided. 18 (a) The Commission shall
determine the type of lottery games that may be used 19 in the Lottery. Games may
37
include instant lotteries, online games, games played on 20 computer terminals or other
devices, and other games traditional to a lottery or that have 21 been conducted by any
other state government-operated lottery. 22 (b) In lottery games using tickets, each ticket
in a particular game shall have 23 printed on it a unique number distinguishing it from
every other ticket in that lottery 24 game and an abbreviated form of the game-play rules,
including resources for 25 responsible gaming information. In lottery games using
tickets, each ticket may have 26 printed on it a depiction of one or more cartoon
characters, whose primary appeal is not 27 to minors. In lottery games using tickets with
preprinted winners, the overall estimated 28 odds of winning prizes shall be printed on
each ticket. No name or photograph of a 29 current or former elected official shall appear
on the tickets of any lottery game 30 (c) In games using electronic computer terminals or
other devices to play lottery 31 games, no coins or currency shall be dispensed to players
from those electronic 32 computer terminals or devices. 33 (d) No games shall be based
on the outcome of a particular sporting event or on 34 the results of a series of sporting
events. 35 (e) Lottery advertising shall be tastefully designed and presented in a manner
to 36 minimize the appeal of lottery games to minors. The use of cartoon characters or of
37 false, misleading, or deceptive information in lottery advertising is prohibited. All 38
advertising promoting the sale of lottery tickets or shares for a particular game shall 39
include the actual or estimated overall odds of winning the game. 40 (f) The Commission
shall make available a detailed tabulation of the estimated 41 number of prizes of each
particular prize denomination that are expected to be awarded 42 in each lottery game or
the estimated odds of winning these prizes at the time that 43 lottery game is offered for
sale to the public. General Assembly of North Carolina Session 2005 Page 8 House Bill
1023 H1023-CSLB-94 [v.10] 1 (g) The Commission shall, in consultation with the
Department of Health and 2 Human Services, develop and provide information to the
public about gambling 3 addiction and treatment. 4 " 18C-131. Sales and sale price of
tickets and shares; sales to minors prohibited. 5 (a) The Commission may sell tickets and
shares directly to the public, contract 6 with lottery game retailers to sell tickets and
shares, or distribute tickets or shares 7 through any other method authorized by the
Commission. 8 (b) No ticket or share in a lottery game shall be sold or resold for more
than the 9 retail sales price established by the Commission. 10 (c) The minimum retail
price of each ticket or share in any lottery game shall be 11 fifty cents (50). The
minimum retail price shall not apply to any discounts or 12 promotions authorized by the
Commission for a particular lottery game. 13 (d) It shall be unlawful for a person to sell a
lottery ticket or share to a person 14 under the age of 18 years. No person under the age
of 18 years shall purchase a lottery 15 ticket or share. A person who violates this
subsection shall be guilty of a Class 1 16 misdemeanor. 17 (e) It shall be a defense for the
person who sold a ticket or share in violation of 18 subsection (d) of this section if the
person does either of the following: 19 (1) Shows that the purchaser produced a drivers
license, a special 20 identification card issued under G.S. 20-37.7, a military
identification 21 card, or a passport, showing the purchaser to be at least 18 years old 22
and bearing a physical description of the person named on the card that 23 reasonably
describes the purchaser. 24 (2) Produces evidence of other facts that reasonably indicated
at the time 25 of sale that the purchaser was at least 18 years old. 26 " 18C-132.
Procedures for drawings and claiming prizes; payment of prizes; 27 protection of
information concerning certain prize winners. 28 (a) If a lottery game uses a daily or less
38
frequent drawing of winning numbers, a 29 drawing among entries, or a drawing among

finalists, all of the following conditions 30 shall be met: 31 (1) The drawings shall be
open to the public. 32 (2) The drawings shall be witnessed by an independent certified
public 33 accountant. 34 (3) Any equipment used in the drawings shall be inspected by
the 35 independent certified public accountant and an employee of the 36 Commission
both before and after the drawings. 37 (4) Audio and visual records of the drawings and
inspections shall be 38 made. 39 (b) Prizes that remain unclaimed after the period set by
the Commission for 40 claiming the prizes shall not be considered abandoned property. If
a valid claim is not 41 made for a prize within the applicable period, the unclaimed prize
money shall be 42 handled in accordance with Article 35A of Chapter 115C of the
General Statutes. 43 (c) After the expiration of the claim period for prizes for each lottery
game, the 44 Commission shall make available a detailed tabulation of the total number
of prizes of General Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10]
House Bill 1023 Page 9 1 each prize denomination that was actually claimed and paid
directly by the 2 Commission. 3 (d) No prize shall be paid for a lottery ticket or share that
is stolen, counterfeit, 4 altered, fraudulent, unissued, produced or issued in error,
unreadable, not received or 5 recorded by the Commission by the applicable deadlines,
lacking in captions that 6 conform and agree with the play symbols as appropriate to the
lottery game involved, or 7 not in compliance with any additional specific rules and
public or confidential 8 validation and security tests appropriate to the particular game
involved. 9 (e) No valid claim for a prize in any lottery game shall be paid more than
once. 10 The Director, Commission, and the State shall be discharged of all liability upon
11 payment of a prize. 12 (f) Winners of less than six hundred dollars ($600.00) shall be
permitted to claim 13 prizes from any of the following: 14 (1) The same lottery game
retailer who sold the winning ticket or share. 15 (2) Any other lottery retailer. 16 (3) The
Commission. 17 (g) Winners of six hundred dollars ($600.00) or more shall claim prizes
directly 18 from the Commission. 19 (h) The right of any person to a prize shall not be
assignable. Payment of any 20 prize may be paid to the estate of a deceased prizewinner
or to a person designated 21 pursuant to a court order. 22 (i) No ticket or share in a lottery
game shall be purchased by, and no prize shall 23 be paid to, a member of the
Commission, the Director, or employee of the Commission, 24 or to any spouse, parent,
or child living in the same household as a person disqualified 25 by this subsection. 26 (j)
No prize shall be paid to a person under the age of 18. 27 (k) If a prize winner submits to
the Commission a copy of a protective order 28 without attachments, if any, issued to that
person under G.S. 50B-3 or a lawful order of 29 any court of competent jurisdiction
restricting the access or contact of one or more 30 persons with that prize winner or a
current and valid Address Confidentiality Program 31 authorization card issued pursuant
to the provisions of Chapter 15C of the General 32 Statutes, that prize winner's
identifying information shall be treated as confidential 33 information under G.S. 132-1.2
as long as the protective order remains in effect or the 34 prize winner remains a certified
program participant in the Address Confidentiality 35 Program. That prize winner's
identifying information shall be available for inspection 36 by a law enforcement agency
or by a person identified in a court order if inspection of 37 the address by that person is
directed by that court order. 38 (l) All prizes are subject to the State income tax. 39 "
18C-133. Lottery game-play rules and winner validation procedures. 40 (a) By
purchasing a ticket or share in a lottery game, a player agrees to abide by, 41 and be
39
bound by, the game-play rules adopted by the Commission that apply to any 42 particular
lottery game involved. 43 (b) All players acknowledge that the determination of whether
the player is a 44 winner is subject to the game-play rules and the winner validation
procedures and General Assembly of North Carolina Session 2005 Page 10 House Bill
1023 H1023-CSLB-94 [v.10] 1 confidential validation tests established by the
Commission for the particular lottery 2 game involved. 3 " 18C-134. Setoff for debt
collection against lottery prizes. 4 (a) Purpose. The Commission must establish a debt
set-off program by which 5 lottery prize payments may be used to satisfy a debt owed or
collected by a claimant 6 agency that is at least fifty dollars ($50.00). The collection
remedy under this section is 7 in addition to and not in substitution for any other remedy
available by law. 8 (b) Notification. A claimant agency seeking to attempt collection of
a debt 9 through setoff must notify the Commission in writing and supply information
necessary 10 to identify the debtor. The claimant agency may include with the
notification the date, if 11 any, that the debt is expected to expire. The agency must notify
the Commission in 12 writing when a debt has been paid or is no longer owed the agency.
A local agency may 13 not submit a debt for collection under this section until it has met
the requirements of 14 G.S. 105A-5, and it must submit the debt to the Commission
through one of the entities 15 listed in G.S. 105A-3(b1). 16 (c) Setoff. The Commission
must match the information submitted by the 17 claimant agency with persons who are
entitled to a State lottery prize payment in an 18 amount of six hundred dollars ($600.00)
or more. If there is a match, the Commission 19 must set off the debt against the lottery
winnings to which the debtor would otherwise 20 be entitled. When there are multiple
claims to be set off, the priority in claims to set off 21 is the same as provided in G.S.
105A-12. The winnings that exceed the amount of the 22 debt, if any, must be paid to that
person. The Commission must mail the debtor written 23 notice that the setoff has
occurred and must transfer the net proceeds collected to the 24 claimant agency. If the
claimant agency is a State agency, that agency must credit the 25 amount received to a
non reverting trust account and must follow the procedure set in 26 G.S. 105A-8. 27 (d)
Collection Assistance Fee. To recover the costs incurred by the 28 Commission in
collecting debts under this section, a collection assistance fee of five 29 dollars ($5.00)
may be imposed on each debt collected through setoff. The Commission 30 must collect
this fee as part of the debt and retain it. To recover the costs incurred by 31 local agencies
in submitting debts for collection under this section, a collection 32 assistance fee of
fifteen dollars ($15.00) may be imposed on each local agency debt 33 collected through
setoff. The Commission must collect this fee as part of the debt and 34 remit it to the
clearinghouse that submitted the debt. The collection assistance fees do 35 not apply to
child support debts. If the Commission is able to collect only part of a debt 36 through
setoff, the Commission's collection assistance fee has priority over the local 37 collection
assistance fee and over the remainder of the debt. The local collection 38 assistance fee
has priority over the remainder of the debt. 39 (e) Confidentiality. Notwithstanding any
confidentiality statute of a claimant 40 agency, the exchange of information among the
Commission, the claimant agency, the 41 organization submitting debts on behalf of a
local agency, and the debtor necessary to 42 implement this section is lawful. The
information an agency or organization obtains 43 from the Commission in accordance
with the exemption in this subsection may be used General Assembly of North Carolina
Session 2005 H1023-CSLB-94 [v.10] House Bill 1023 Page 11 1 by the agency or
40
organization only in the pursuit of its debt collection duties and 2 practices. 3 (f)
Definitions. The definitions in G.S. 105A-2 apply in this section. 4 " 18C-135
through 18C-139: Reserved for future codification purposes. 5 "Article 5. 6 "Lottery
Game Retailers. 7 " 18C-140. Contracting with lottery game retailers. 8 The
Commission may contract with lottery game retailers to sell tickets or shares for 9 lottery
games upon such terms and conditions as it considers appropriate. The contract 10
entered into between the Commission and the lottery game retailer shall be considered a
11 permit for purposes of Chapter 18B of the General Statutes. No contract to act as a 12
lottery game retailer is assignable or transferable. All contracts with lottery game 13
retailers shall provide that the Director may terminate the contract if the lottery game 14
retailer violates a provision of this Chapter. 15 " 18C-141. Selection of lottery game
retailers. 16 (a) The Director shall recommend to the Commission those persons with
whom 17 to contract as lottery game retailers. To the extent practicable, the Director shall
meet 18 the minority participation goals under Article 8 of Chapter 143 of the General
Statutes. 19 (b) The Director may not recommend contracting with any of the following:
20 (1) A natural person under 21 years of age. This minimum age shall not 21 prohibit
employees of a lottery game retailer who are under 21 years of 22 age from selling lottery
tickets or shares during their employment. 23 (2) A person who would be engaged
exclusively in the business of selling 24 lottery tickets or shares or operating electronic
computer terminals or 25 other devices solely for entertainment. 26 (3) A person who is
not current in filing all applicable tax returns to the 27 State and in payment of all taxes,
interest, and penalties owed to the 28 State, excluding items under formal appeal under
applicable statutes. 29 Upon request of the Director, the Department of Revenue shall
provide 30 this information about a specific person to the Commission. 31 (4) A person
who resides in the same household as a member of the 32 Commission, the Director, or
any other employee of the Commission. 33 (c) Upon approval of the Commission, the
Director shall enter into a contract 34 with the person to sell tickets or shares upon such
terms and conditions as the 35 Commission directs. 36 " 18C-142. Compensation for
lottery game retailers. 37 The amount of compensation paid to lottery game retailers for
their sales of lottery 38 tickets or shares shall be seven percent (7%) of the retail price of
the tickets or shares 39 sold for each lottery game. The Commission shall require
submission of reports and 40 remission of lottery revenues to the Commission on a timely
basis. 41 " 18C-143. Responsibilities of lottery game retailers. 42 (a) A lottery game
retailer shall comply with all provisions of this Article and the 43 contract with the
Commission. General Assembly of North Carolina Session 2005 Page 12 House Bill
1023 H1023-CSLB-94 [v.10] 1 (b) A lottery game retailer shall sell no lottery tickets or
shares unless the retailer 2 conspicuously displays a certificate of authority, signed by the
Director, to sell lottery 3 tickets or shares. The Commission shall issue a certificate of
authority to each lottery 4 game retailer for purposes of display for each retail outlet
owned or operated by the 5 lottery game retailer. No certificate is assignable or
transferable. 6 (c) A lottery game retailer shall furnish an appropriate bond or letter of
credit, if 7 so requested by the Director. The Commission may authorize the Director to
purchase 8 blanket bonds covering the activities of any or all lottery game retailers. 9 (d)
The Commission shall adopt rules to establish procedures governing how the 10 lottery
game retailers: 11 (1) Account for all tickets or shares in their custody, including tickets
and 12 shares sold. 13 (2) Account for the money collected from the sale of tickets and
41
shares. 14 (3) Remit funds to the Commission, provided that all payments shall be in 15
the form of electronic fund transfers or other recorded financial 16 instruments as
authorized by the Commission and approved by the 17 Director. 18 (e) No lottery retailer
or applicant to be a lottery retailer shall pay, give, or make 19 any economic opportunity,
gift, loan, gratuity, special discount, favor, hospitality, or 20 service, excluding food and
beverages having an aggregate value not exceeding one 21 hundred dollars ($100.00) in
any calendar year, to the Director, to any member or 22 employee of the Commission, or
to any member of the immediate family residing in the 23 same household as one of these
individuals. 24 " 18C-144 through 18C-149: Reserved for future codification purposes.
25 "Article 6. 26 "Lottery Vendors and Lottery Contractors. 27 " 18C-150.
Procurements. 28 The Commission shall be exempt from Article 3 of Chapter 143 of the
General 29 Statutes but may use the services of the Department of Administration in
procuring 30 goods and services for the Commission. 31 " 18C-151. Contracts. 32 (a)
Except as otherwise specifically provided in this subsection for contracts for 33 the
purchase of services, apparatus, supplies, materials, or equipment, Article 8 of 34 Chapter
143 of the General Statutes, including the provisions relating to minority 35 participation
goals, shall apply to contracts entered into by the Commission. If this 36 subsection and
Article 8 of Chapter 143 are in conflict, the provisions of this subsection 37 shall control.
In recognition of the particularly sensitive nature of the Lottery and the 38 competence,
quality of product, experience, and timeliness, fairness, and integrity in the 39 operation
and administration of the Lottery and maximization of the objective of raising 40
revenues, a contract for the purchase of services, apparatus, supplies, materials, or 41
equipment requiring an estimated aggregate expenditure of ninety thousand dollars 42
($90,000) or more may be awarded by the Commission only after the following have 43
occurred: General Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10]
House Bill 1023 Page 13 1 (1) The Commission has invited proposals to be submitted by
2 advertisement by electronic means or advertisement in a newspaper 3 having general
circulation in the State of North Carolina and 4 containing the following information: 5 a.
The time and place where a complete description of the 6 services, apparatus, supplies,
materials, or equipment may be 7 had. 8 b. The time and place for opening of the
proposals. 9 c. A statement reserving to the Commission the right to reject any 10 or all
proposals. 11 (2) Proposals may be rejected for any reason determined by the 12
Commission to be in the best interest of the Lottery. 13 (3) All proposals shall be
accompanied by a bond or letter of credit in an 14 amount equal to not less than five
percent (5%) of the proposal and the 15 fee to cover the cost of the criminal record check
conducted under 16 G.S. 114-19.6. 17 (4) The Commission has complied with the
minority participation goals of 18 G.S. 143-128.2 and G.S. 143-128.3. 19 (5) The
Commission may not award a contract to a lottery vendor who has 20 been convicted of a
felony or any gambling offense in any state or 21 federal court of the United States within
10 years of entering into the 22 contract, or employs officers and directors who have been
convicted of 23 a felony or any gambling offense in any state or federal court of the 24
United States within 10 years of entering into the contract. 25 (6) The Commission shall
investigate and compare the overall business 26 practices, ethical reputation, criminal
record, civil litigation, 27 competence, integrity, background, and regulatory compliance
record 28 of lottery vendors. 29 (7) The Commission may engage an independent firm
experienced in 30 evaluating government procurement proposals to aid in evaluating 31
42
proposals for a major procurement. 32 (8) The Commission shall award the contract to
the responsible lottery 33 vendor who submits the best proposal that maximizes the
benefits to 34 the State. 35 (b) Upon the completion of the bidding process, a contract
may be awarded to a 36 lottery contractor with whom the Commission has previously
contracted for the same 37 purposes. 38 (c) Before a contract is awarded, the Director
shall conduct a thorough 39 background investigation of all of the following: 40 (1) The
vendor to whom the contract is to be awarded. 41 (2) Any parent or subsidiary
corporation of the vendor to whom the 42 contract is to be awarded. General Assembly of
North Carolina Session 2005 Page 14 House Bill 1023 H1023-CSLB-94 [v.10] 1 (3) All
shareholders with a five percent (5%) or more interest in the 2 vendor or parent or
subsidiary corporation of the vendor to whom the 3 contract is to be awarded. 4 (4) All
officers and directors of the vendor or parent or subsidiary 5 corporation of the vendor to
whom the contract is to be awarded. 6 (d) The Commission may terminate the contract,
without penalty, of a lottery 7 contractor that fails to comply with the Commission's
instruction to implement the 8 recommendations of the State Auditor or an independent
auditor in an audit conducted 9 of Lottery security or operations. 10 (e) After entering
into a contract with a lottery contractor, the Commission shall 11 require the lottery
contractor to periodically update the information required to be 12 disclosed under G.S.
18C-149. Any contract with a lottery contractor who does not 13 periodically update the
required disclosures may be terminated by the Commission. 14 (f) No lottery system
vendor nor any applicant for a contract may pay, give, or 15 make any economic
opportunity, gift, loan, gratuity, special discount, favor, hospitality, 16 or service,
excluding food and beverages having an aggregate value not exceeding one 17 hundred
dollars ($100.00) in any calendar year, to the Director, any member or 18 employee of the
corporation, or a member of the immediate family residing in the same 19 household as
any of these individuals. 20 " 18C-152. Investigation of lottery vendors. 21 (a) Lottery
vendors shall cooperate with the Director in completing any 22 investigation required
under G.S. 18C-151(c), including any appropriate investigation 23 authorizations needed
to facilitate these investigations. 24 (b) The Commission shall adopt rules that provide for
disclosures of information 25 required to be disclosed under subsection (c) of this section
by lottery vendors to ensure 26 that the vendors provide all the information necessary to
allow for a full and complete 27 evaluation by the Director and Commission of the
competence, integrity, background, 28 and character of the lottery vendors. Information
shall be disclosed for the following: 29 (1) If the vendor is a corporation, the officers,
directors, and each 30 stockholder in that corporation; however, in the case of owners of
31 equity securities of a publicly traded corporation, only the names and 32 addresses of
those known to the corporation to own beneficially five 33 percent (5%) or more of the
securities need be disclosed. 34 (2) If the vendor is a trust, the trustee and all persons
entitled to receive 35 income or benefits from the trust. 36 (3) If the vendor is an
association, the members, officers, and directors. 37 (4) If the vendor is a partnership or
joint venture, all of the general 38 partners, limited partners, or joint venturers. 39 (5) For
any vendor, any person who can exercise control or authority, or 40 both, on behalf of the
vendor. 41 (c) For purposes of this subsection, the term "vendor" shall include the vendor
42 and each of the persons applicable under subsection (b) of this section. At a minimum,
43 the vendor required to disclose information for a thorough background investigation
44 under G.S. 18C-151 shall do all of the following: General Assembly of North Carolina
43
Session 2005 H1023-CSLB-94 [v.10] House Bill 1023 Page 15 1 (1) Disclose the
vendor's name, phone number, and address. 2 (2) Disclose all the states and jurisdictions
in which the vendor does 3 business and the nature of the business for each state or
jurisdiction. 4 (3) Disclose all the states and jurisdictions in which the vendor has 5
contracts to supply gaming goods or services, including lottery goods 6 and services, and
the nature of the goods or services involved for each 7 state or jurisdiction. 8 (4) Disclose
all the states and jurisdictions in which the vendor has applied 9 for, has sought renewal
of, has received, has been denied, has pending, 10 or has had revoked a lottery or gaming
license or permit of any kind or 11 had fines or penalties assessed on a license, permit,
contract, or 12 operation and the disposition of such in each such state or jurisdiction. 13
If any lottery or gaming license, permit, or contract has been revoked 14 or has not been
renewed or any lottery or gaming license, permit, or 15 application has been either denied
or is pending and has remained 16 pending for more than six months, all of the facts and
circumstances 17 underlying the failure to receive that license shall be disclosed. 18 (5)
Disclose the details of any finding or plea, conviction, or adjudication 19 of guilt in a
state or federal court of the vendor for any felony or any 20 other criminal offense other
than a minor traffic violation. 21 (6) Disclose the details of any bankruptcy, insolvency,
reorganization, or 22 corporate or individual purchase or takeover of another corporation,
23 including bonded indebtedness, or any pending litigation of the 24 vendor. 25 (7) If at
least twenty-five percent (25%) of the cost of a vendor's contract 26 is subcontracted, the
vendor shall disclose all of the information 27 required by this section for the
subcontractor as if the subcontractor 28 were itself a vendor. 29 (8) Make any additional
disclosures and information the Commission 30 determines to be appropriate for the
contract involved. 31 (d) All documents compiled by the Director in conducting the
investigation of 32 the lottery vendors shall be held as confidential information under
Chapter 132 of the 33 General Statutes. 34 " 18C-153 through 18C-159: Reserved for
future codification purposes. 35 "Article 7. 36 "North Carolina State Lottery Fund. 37 "
18C-160. North Carolina State Lottery Fund. 38 An enterprise fund, to be known as the
North Carolina State Lottery Fund, is created 39 within the State treasury. The North
Carolina State Lottery Fund is appropriated to the 40 Commission and may be expended
without further action of the General Assembly for 41 the purposes of operating the
Commission and the lottery games. 42 " 18C-161. Types of income to the North
Carolina State Lottery Fund. 43 The following revenues shall be deposited in the North
Carolina State Lottery Fund: 44 (1) All proceeds from the sale of lottery tickets or shares.
General Assembly of North Carolina Session 2005 Page 16 House Bill 1023 H1023CSLB-94 [v.10] 1 (2) The funds for initial start-up costs provided by the State. 2 (3) All
other funds credited or appropriated to the Commission from any 3 source. 4 (4) Interest
earned by the North Carolina State Lottery Fund. 5 " 18C-162. Allocation of revenues. 6
(a) To the extent practicable, the Commission shall allocate revenues to the 7 North
Carolina State Lottery Fund in the following manner: 8 (1) At least fifty percent (50%) of
the total annual revenues, as described 9 in this Chapter, shall be returned to the public in
the form of prizes. 10 (2) At least thirty-five percent (35%) of the total annual revenues,
as 11 described in this Chapter, shall be transferred as provided in 12 G.S. 18C-164. 13
(3) No more than eight percent (8%) of the total annual revenues, as 14 described in this
Chapter, shall be allocated for payment of expenses 15 of the Lottery. Advertising
expenses shall not exceed one percent (1%) 16 of the total annual revenues. 17 (4) No
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more than seven percent (7%) of the total annual revenues, as 18 described in this
Chapter, shall be allocated for compensation paid to 19 lottery game retailers. 20 (b) To
the extent that the expenses of the Commission are less than eight percent 21 (8%) of
total annual revenues, the Commission may allocate any surplus funds: 22 (1) To increase
prize payments; or 23 (2) To the benefit of the public purposes as described in this
Chapter. 24 (c) Unclaimed prize money shall be held separate and apart from the other 25
revenues and allocated as follows: 26 (1) Fifty percent (50%) to enhance prizes under
subdivision (a)(1) of this 27 section. 28 (2) Fifty percent (50%) to the Education Lottery
Fund to be allocated in 29 accordance with G.S. 18C-164(c). 30 " 18C-163. Expenses of
the Lottery. 31 Expenses of the Lottery may include any of the following: 32 (1) The
costs incurred in operating and administering the Commission, 33 including initial startup costs. 34 (2) The costs resulting from any contracts entered into for the purchase or 35
lease of goods or services required by the Commission. 36 (3) A transfer of one million
dollars ($1,000,000) annually to the 37 Department of Health and Human Services for
gambling addiction 38 education and treatment programs. 39 (4) The costs of supplies,
materials, tickets, independent studies and 40 audits, data transmission, advertising,
promotion, incentives, public 41 relations, communications, bonding for lottery game
retailers, printing, 42 and distribution of tickets and shares. 43 (5) The costs of
reimbursing other governmental entities for services 44 provided to the Commission.
General Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10] House Bill
1023 Page 17 1 (6) The costs for any other goods and services needed to accomplish the 2
purposes of this Chapter. 3 " 18C-164. Transfer of net revenues. 4 (a) The funds
remaining in the North Carolina State Lottery Fund after receipt of 5 all revenues to the
Lottery Fund and after accrual of all obligations of the Commission 6 for prizes and
expenses shall be considered to be the net revenues of the North Carolina 7 State Lottery
Fund. The net revenues of the North Carolina State Lottery Fund shall be 8 transferred
periodically to the Education Lottery Fund, which shall be created in the 9 State treasury.
10 (b) From the Education Lottery Fund, the Commission shall transfer a sum equal 11 to
five percent (5%) of the net revenue of the prior year to the Education Lottery 12 Reserve
Fund. A special revenue fund for this purpose shall be established in the State 13 treasury
to be known as the Education Lottery Reserve Fund, and that fund shall be 14 capped at
fifty million dollars ($50,000,000). Monies in the Education Lottery Reserve 15 Fund
may be appropriated only as provided in subsection (e) of this section. 16 (c) The
Commission shall distribute the remaining net revenue of the Education 17 Lottery Fund,
as follows, in the following manner: 18 (1) A sum equal to fifty percent (50%) to support
reduction of class size in 19 early grades to class size allotments not exceeding 1:18 in
order to 20 eliminate achievement gaps and to support academic prekindergarten 21
programs for at-risk four-year-olds who would otherwise not be served 22 in a highquality education program in order to help those 23 four-year-olds be prepared
developmentally to succeed in school. 24 (2) A sum equal to forty percent (40%) to the
Public School Building 25 Capital Fund in accordance with G.S. 115C-546.2. 26 (3) A
sum equal to ten percent (10%) to the State Educational Assistance 27 Authority to fund
college and university scholarships in accordance 28 with Article 35A of Chapter 115C of
the General Statutes. 29 (d) Of the sums transferred under subsection (c) of this section,
the General 30 Assembly shall appropriate the funds annually based upon estimates of
lottery net 31 revenue to the Education Lottery Fund provided by the Office of State
45
Budget and 32 Management and the Fiscal Research Division of the North Carolina
General Assembly. 33 (e) If the actual net revenues are less than the appropriation for that
given year, 34 then the Governor may transfer from the Education Lottery Reserve Fund
an amount 35 sufficient to equal the appropriation by the General Assembly. If the
monies available in 36 the Education Lottery Reserve Fund are insufficient to reach a full
appropriation, the 37 Governor shall transfer monies in order of priority, to the following:
38 (1) To support academic prekindergarten programs for at-risk 39 four-year-olds who
would otherwise not be served in a high-quality 40 education program in order to help
those four-year-olds be prepared 41 developmentally to succeed in school. 42 (2) To
reduce class size. 43 (3) To provide financial aid for needy students to attend college.
General Assembly of North Carolina Session 2005 Page 18 House Bill 1023 H1023CSLB-94 [v.10] 1 (4) To the Public School Building Capital Fund to be spent in
accordance 2 with this section. 3 (f) If the actual net revenues exceed the amounts
appropriated in that fiscal year, 4 the excess net revenues shall remain in the Education
Lottery Fund, and then be 5 transferred as follows: 6 (1) Fifty percent (50%) to the Public
School Building Capital Fund to be 7 spent in accordance with this section. 8 (2) Fifty
percent (50%) to the State Educational Assistance Authority to be spent 9 in accordance
with this section. 10 " 18C-165 through 18C-169: Reserved for future codification
purposes. 11 "Article 8. 12 "Miscellaneous. 13 " 18C-170. Preemption of local
regulation. 14 A county or municipality shall not enact any ordinance or regulation
relating to the 15 Lottery, and this Chapter preempts all existing county or ordinances or
regulations that 16 would impose additional restrictions or requirements in the operation
of the Lottery. To 17 the extent that this Chapter conflicts with any local act, this Chapter
prevails to the 18 extent of the conflict. 19 " 18C-171. Lawful activity. 20 Other than
this Chapter, any other public or local law, ordinance, or regulation 21 providing any
penalty, restriction, regulation, or prohibition for the manufacture, 22 transportation,
storage, distribution, advertising, possession, or sale of any lottery tickets 23 or shares, or
for the operation of any lottery game shall not apply to the operation of the 24
Commission or lottery games established by this Chapter where the penalty, restriction,
25 regulation, or prohibition applies only to the Lottery as operated by the North Carolina
26 State Lottery Commission. 27 " 18C-172 through 18C-179: Reserved for future
codification purposes. 28 SECTION 2. Chapter 115C of the General Statutes is amended
by adding a 29 new Article to read: 30 "Article 35A. 31 "College Scholarships. 32 "
115C-499.1. Definitions. 33 The following definitions apply to this Article: 34 (1)
Academic year. A period of time in which a student is expected to 35 complete the
equivalent of at least two semesters' or three quarters' 36 academic work. 37 (2)
Authority. The State Education Assistance Authority created by 38 Article 23 of
Chapter 116 of the General Statutes. 39 (3) Eligible postsecondary institution. A school
that is: 40 a. A constituent institution of The University of North Carolina as 41 defined
in G.S. 116-2(4); 42 b. A community college as defined in G.S. 115D-2(2); or 43 c. A
nonpublic postsecondary institution as defined in 44 G.S. 116-22(1) or 116-43.5(a)(1).
General Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10] House Bill
1023 Page 19 1 (4) Matriculated status. Being recognized as a student in a defined 2
program of study leading to a degree, diploma, or certificate at an 3 eligible
postsecondary institution. 4 (5) Scholarship. A scholarship for education awarded under
this Article. 5 (6) Title IV. Title IV of the Higher Education Act of 1965, as amended, 6
46
20 U.S.C. 1070, et seq. 7 " 115C-499.2. Eligibility requirements for a scholarship. 8 In

order to be eligible to receive a scholarship under this Article, a student seeking a 9
degree, diploma, or certificate at an eligible postsecondary institution must meet all of 10
the following requirements: 11 (1) Only needy North Carolina students are eligible to
receive 12 scholarships. For purposes of this subsection, "needy North Carolina 13
students" are those eligible students whose expected family 14 contribution under the
federal methodology does not exceed five 15 thousand dollars ($5,000). 16 (2) The
student must meet all other eligibility requirements for the federal 17 Pell Grant, with the
exception of the expected family contribution. 18 (3) The student must qualify as a legal
resident of North Carolina and as a 19 resident for tuition purposes in accordance with
definitions of 20 residency that may from time to time be adopted by the Board of 21
Governors and published in the residency manual of the Board of 22 Governors. 23 (4)
The student must meet enrollment standards by being admitted, 24 enrolled, and
classified as an undergraduate student in a matriculated 25 status at an eligible
postsecondary institution. 26 (5) In order to continue to be eligible for a scholarship for
the student's 27 second and subsequent academic years, the student must meet 28
achievement standards by maintaining satisfactory academic progress 29 in a course of
study in accordance with the standards and practices 30 used for federal Title IV
programs by the eligible postsecondary 31 institution in which the student is enrolled. 32
(6) A student may not receive a scholarship under this Article for more 33 than four full
academic years. 34 " 115C-499.3. Scholarship amounts; amounts dependent on net
income available. 35 (a) Subject to the amount of net income available under Chapter
18C of the 36 General Statutes, a scholarship awarded under this Article to a student at an
eligible 37 postsecondary institution shall be based upon the enrollment status and
expected family 38 contribution of the student and shall not exceed four thousand dollars
($4,000) per 39 academic year, including any federal Pell Grant, to be used for the costs
of attendance 40 as defined for federal Title IV programs. 41 (b) Subject to the maximum
amounts provided in this section, the Authority shall 42 have the power to determine the
actual scholarship amounts disbursed to students in any 43 given year based on the
amount of net income available under Chapter 18C of the 44 General Statutes. If the net
income available is not sufficient to fully fund the General Assembly of North Carolina
Session 2005 Page 20 House Bill 1023 H1023-CSLB-94 [v.10] 1 scholarships to the
maximum amount, all scholarships shall be reduced equally, to the 2 extent practicable,
so that every eligible applicant shall receive the same scholarship 3 amount. 4 (c) The
minimum award of a scholarship under this Article shall be one hundred 5 dollars
($100.00). 6 " 115C-499.4. Scholarship administration; reporting requirements. 7 (a)
The scholarships provided for in this Article shall be administered by the 8 Authority
under rules adopted by the Authority in accordance with the provisions of this 9 Article.
10 (b) The Authority shall report no later than June 1, 2008, and annually thereafter 11 to
the Joint Legislative Education Oversight Committee. The report shall contain, for 12 the
previous academic year, the amount of scholarship and grant money disbursed, the 13
number of students eligible for the funds, the number of eligible students receiving the 14
funds, and a breakdown of the eligible postsecondary institutions that received the 15
funds. 16 (c) The Authority may use up to one and one-half percent (1.5%) of the funds
17 transferred in accordance with Chapter 18C of the General Statutes for administrative
18 purposes. 19 (d) Scholarship funds unexpended shall remain available for future
47
scholarships 20 to be awarded under this Article." 21 SECTION 3.(a) G.S. 14-289 reads
as rewritten: 22 " 14-289. Advertising lotteries. 23 Except as provided in Chapter 18C of
the General Statutes or in connection with a 24 lawful raffle as provided in Part 2 of this
Article, if anyone by writing or printing or by 25 circular or letter or in any other way,
advertise or publish advertises or publishes an 26 account of a lottery, whether within or
without this State, stating how, when or where 27 the same is to be or has been
drawn, or what are the prizes therein or any of them, or the 28 price of
a ticket or any share or interest therein, or where or how it may be
obtained, he 29 shall be guilty of a Class 2 misdemeanor. News
medium as defined in G.S. 8-53.11 shall 30 be exempt from this
section provided the publishing is in connection with a lawful 31
activity of the news medium." 32 SECTION 3.(b) G.S. 14-290 reads as
rewritten: 33 " 14-290. Dealing in lotteries. 34 Except as provided in
Chapter 18C of the General Statutes or in connection with a 35 lawful
raffle as provided in Part 2 of this Article, if any person shall open, set
on foot, 36 carry on, promote, make or draw, publicly or privately, a
lottery, by whatever name, 37 style or title the same may be
denominated or known; or if any person shall, by such 38 way and
means, expose or set to sale any house, real estate, goods, chattels,
cash, 39 written evidence of debt, certificates of claims or any other
thing of value whatsoever, 40 every person so offending shall be guilty
of a Class 2 misdemeanor which may include 41 a fine not to exceed
two thousand dollars ($2,000). Any person who engages in 42
disposing of any species of property whatsoever, including money and
evidences of 43 debt, or in any manner distributes gifts or prizes upon
tickets, bottle crowns, bottle caps, 44 seals on containers, other
devices or certificates sold for that purpose, shall be held General
Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10] House
Bill 1023 Page 21 1 liable to prosecution under this section. Any person
who shall have in his possession 2 any tickets, certificates or orders
used in the operation of any lottery shall be held liable 3 under this
section, and the mere possession of such tickets shall be prima facie
evidence 4 of the violation of this section. This section shall not apply
to the possession of a lottery 5 ticket or share for a lottery game being
lawfully conducted in another state." 6 SECTION 3.(c) G.S. 14-291
reads as rewritten: 7 " 14-291. Selling lottery tickets and acting as
agent for lotteries. 8 Except as provided in Chapter 18C of the General
Statutes or in connection with a 9 lawful raffle as provided in Part 2 of
this Article, if any person shall sell, barter or 10 otherwise dispose of
any lottery ticket or order for any number of shares in any lottery, 11
or shall in anywise be concerned in such lottery, by acting as agent in
the State for or on 12 behalf of any such lottery, to be drawn or paid
either out of or within the State, such 13 person shall be guilty of a
Class 2 misdemeanor." 14 SECTION 3.(d) G.S. 14-291.1 reads as
rewritten: 15 " 14-291.1. Selling 'numbers' tickets; possession prima
facie evidence of violation. 16 Except as provided in Chapter 18C of
48
the General Statutes, in connection with a 17 lawful lottery conducted

in another state, or in connection with a lawful raffle as 18 provided in
Part 2 of this Article, if any person shall sell, barter or cause to be sold
or 19 bartered, any ticket, token, certificate or order for any number or
shares in any lottery, 20 commonly known as the numbers or butter
and egg lottery, or lotteries of similar 21 character, to be drawn or paid
within or without the State, such person shall be guilty of 22 a Class 2
misdemeanor. Any person who shall have in his possession any tickets,
23 tokens, certificates or orders used in the operation of any such
lottery shall be guilty 24 under this section, and the possession of such
tickets shall be prima facie evidence of 25 the violation of this section."
26 SECTION 3.(e) G.S. 14-292 reads as rewritten: 27 " 14-292.
Gambling. 28 Except as provided in Chapter 18C of the General
Statutes or in Part 2 of this 29 Article, any person or organization that
operates any game of chance or any person who 30 plays at or bets on
any game of chance at which any money, property or other thing of 31
value is bet, whether the same be in stake or not, shall be guilty of a
Class 2 32 misdemeanor. This section shall not apply to a person who
plays at or bets on any 33 lottery game being lawfully conducted in
any state." 34 SECTION 3.(f) G.S. 14-293 reads as rewritten: 35 " 14293. Allowing gambling in houses of public entertainment; penalty. 36
If Except as provided in Chapter 18C of the General Statutes, if any
keeper of an 37 ordinary or other house of entertainment, or of a
house wherein alcoholic beverages are 38 retailed, shall knowingly
suffer any game, at which money or property, or anything of 39 value,
is bet, whether the same be in stake or not, to be played in any such
house, or in 40 any part of the premises occupied therewith; or shall
furnish persons so playing or 41 betting either on said premises or
elsewhere with drink or other thing for their comfort 42 or subsistence
during the time of play, he shall be guilty of a Class 2 misdemeanor.
Any 43 person who shall be convicted under this section shall, upon
such conviction, forfeit his 44 license to do any of the businesses
mentioned in this section, and shall be forever General Assembly of
North Carolina Session 2005 Page 22 House Bill 1023 H1023-CSLB-94
[v.10] 1 debarred from doing any of such businesses in this State. The
court shall embody in its 2 judgment that such person has forfeited his
license, and no board of county 3 commissioners, board of town
commissioners or board of aldermen shall thereafter have 4 power or
authority to grant to such convicted person or his agent a license to do
any of 5 the businesses mentioned herein." 6 SECTION 3.(g) G.S. 14299 reads as rewritten: 7 " 14-299. Property exhibited by gamblers to
be seized; disposition of same. 8 All Except as provided in Chapter 18C
of the General Statutes or in G.S. 14-292, all 9 moneys or other
property or thing of value exhibited for the purpose of alluring persons
10 to bet on any game, or used in the conduct of any such game,
including any motor 11 vehicle used in the conduct of a lottery within
49
the purview of G.S. 14-291.1, shall be 12 liable to be seized by any

court of competent jurisdiction or by any person acting under 13 its
warrant. Moneys so seized shall be turned over to and paid to the
treasurer of the 14 county wherein they are seized, and placed in the
general fund of the county. Any 15 property seized which is used for
and is suitable only for gambling shall be destroyed, 16 and all other
property so seized shall be sold in the manner provided for the sale of
17 personal property by execution, and the proceeds derived from said
sale shall (after 18 deducting the expenses of keeping the property and
the costs of the sale and after 19 paying, according to their priorities
all known prior, bona fide liens which were created 20 without the
lienor having know
ge or notice that the motor vehicle or other property 21 was being used or to
be used in connection with the conduct of such game or lottery) be 22 turned
over and paid to the treasurer of the county wherein the property was seized,
to 23 be placed by said treasurer in the general fund of the county." 24
SECTION 5. G.S. 66-58(b) reads as rewritten: 25 "(b) The provisions of
subsection (a) of this section shall not apply to: 26 27 (23) The North
Carolina State Lottery Commission." 28 SECTION 6. Part 2 of Article 4 of
Chapter 114 is amended by adding a new 29 section to read: 30 " 11419.16. Criminal record checks for the North Carolina State Lottery 31
Commission and its Director. 32 The Department of Justice may provide to the
North Carolina State Lottery 33 Commission and to its Director from the State
and National Repositories of Criminal 34 Histories the criminal history of any
prospective employee of the Commission and any 35 prospective lottery
vendor. The North Carolina State Lottery Commission or its Director 36 shall
provide to the Department of Justice, along with the request, the fingerprints
of the 37 prospective employee of the Commission, or of the prospective
lottery vendor, a form 38 signed by the prospective employee of the
Commission, or of the prospective vendor 39 consenting to the criminal
record check and use of fingerprints and other identifying 40 information
required by the State and National Repositories, and any additional 41
information required by the Department of Justice. The fingerprints of the
prospective 42 employee of the Commission, or prospective lottery vendor,
shall be forwarded to the 43 State Bureau of Investigation for a search of the
State's criminal history record file, and 44 the State Bureau of Investigation
shall forward a set of fingerprints to the Federal General Assembly of North
Carolina Session 2005 H1023-CSLB-94 [v.10] House Bill 1023 Page 23 1
Bureau of Investigation for a national criminal history record check. The North
Carolina 2 State Lottery Commission and its Director shall remit any
fingerprint information 3 retained by the Commission to alcohol law
enforcement agents appointed under Article 4 5 of Chapter 18B of the
General Statutes and shall keep all information obtained 5 pursuant to this
section confidential. The Department of Justice shall charge a 6 reasonable
fee only for conducting the checks of the national criminal history records 7
authorized by this section. 8 SECTION 7. G.S. 116B-54 is amended by adding
50
a new subsection to read: 9 "(f) A lottery prize that remains unclaimed after
the period set by the North 10 Carolina State Lottery Commission for claiming
those prizes shall not constitute 11 abandoned property." 12 SECTION 8. G.S.
120-123 is amended by adding a new subdivision at the 13 end to read: 14
"(78) The North Carolina State Lottery Commission, as established in 15
Chapter 18C of the General Statutes." 16 SECTION 9. G.S. 126-5(c1) reads as
rewritten: 17 "(c1) Except as to the provisions of Articles 6 and 7 of this
Chapter, the provisions 18 of this Chapter shall not apply to: 19 (1)
Constitutional officers of the State. 20 (2) Officers and employees of the
Judicial Department. 21 (3) Officers and employees of the General Assembly.
22 (4) Members of boards, committees, commissions, councils, and advisory
23 councils compensated on a per diem basis. 24 (5) Officials or employees
whose salaries are fixed by the General 25 Assembly, or by the Governor, or
by the Governor and Council of 26 State, or by the Governor subject to the
approval of the Council of 27 State. 28 (6) Employees of the Office of the
Governor that the Governor, at any 29 time, in the Governor's discretion,
exempts from the application of the 30 provisions of this Chapter by means of
a letter to the State Personnel 31 Director designating these employees. 32
(7) Employees of the Office of the Lieutenant Governor, that the 33
Lieutenant Governor, at any time, in the Lieutenant Governor's 34 discretion,
exempts from the application of the provisions of this 35 Chapter by means of
a letter to the State Personnel Director 36 designating these employees. 37
(8) Instructional and research staff, physicians, and dentists of The 38
University of North Carolina. 39 (9) Employees whose salaries are fixed under
the authority vested in the 40 Board of Governors of The University of North
Carolina by the 41 provisions of G.S. 116-11(4), 116-11(5), and 116-14. 42
(10) Repealed by Session Laws 1991, c. 84, s. 1. General Assembly of North
Carolina Session 2005 Page 24 House Bill 1023 H1023-CSLB-94 [v.10] 1 (11)
North Carolina School of Science and Mathematics' employees whose 2
salaries are fixed in accordance with the provisions of 3 G.S. 116-235(c)(1)
and G.S. 116-235(c)(2). 4 (12), (13) Repealed by Session Laws 2001-474, s.
15, effective November 5 29, 2001. 6 (14) Employees of the North Carolina
State Ports Authority. 7 (15) Employees of the North Carolina Global TransPark
Authority. 8 (16) The executive director and one associate director of the
North Carolina 9 Center for Nursing established under Article 9F of Chapter
90 of the 10 General Statutes. 11 (17) Repealed by Session Laws 2004-129, s.
37, effective July 1, 2004. 12 (18) Employees of the Tobacco Trust Fund
Commission established in 13 Article 75 of Chapter 143 of the General
Statutes. 14 (19) Employees of the Health and Wellness Trust Fund
Commission 15 established in Article 21 of Chapter 130A of the General
Statutes. 16 (20) Employees of the North Carolina Rural Redevelopment
Authority 17 created in Part 2D of Article 10 of Chapter 143B of the General
18 Statutes. 19 (21) Employees of the Clean Water Management Trust Fund.
20 (22) Employees of the North Carolina Turnpike Authority. 21 (23) The
Executive Administrator and the Deputy Executive Administrator 22 of the
Teachers' and State Employees' Comprehensive Major Medical 23 Plan. 24
(24) The North Carolina State Lottery Director and employees of the North 25
51
Carolina State Lottery." 26 SECTION 10. G.S. 147-69.2(a) reads as rewritten:

27 "(a) This section applies to funds held by the State Treasurer to the credit
of: 28 (1) The Teachers' and State Employees' Retirement System, 29 (2) The
Consolidated Judicial Retirement System, 30 (3) The Teachers' and State
Employees' Hospital and Medical Insurance 31 Plan, 32 (4) The General
Assembly Medical and Hospital Care Plan, 33 (5) The Disability Salary
Continuation Plan, 34 (6) The Firemen's and Rescue Workers' Pension Fund,
35 (7) The Local Governmental Employees' Retirement System, 36 (8) The
Legislative Retirement System, 37 (9) The Escheat Fund, 38 (10) The
Legislative Retirement Fund, 39 (11) The State Education Assistance
Authority, 40 (12) The State Property Fire Insurance Fund, 41 (13) The Stock
Workers' Compensation Fund, 42 (14) The Mutual Workers' Compensation
Fund, 43 (15) The Public School Insurance Fund, 44 (16) The Liability
Insurance Trust Fund, General Assembly of North Carolina Session 2005
H1023-CSLB-94 [v.10] House Bill 1023 Page 25 1 (17) Trust funds of The
University of North Carolina and its constituent 2 institutions deposited with
the State Treasurer pursuant to 3 G.S. 116-36.1, 4 (17a) North Carolina
Veterans Home Trust Fund, 5 (17b) North Carolina National Guard Pension
Fund, 6 (17c) Retiree Health Premium Reserve Account, and 7 (17d) The
Election Fund.Fund, 8 (17e) The North Carolina State Lottery Fund, and 9 (18)
Any other special fund created by or pursuant to law for purposes 10 other
than meeting appropriations made pursuant to the Executive 11 Budget Act."
12 SECTION 10.1(a) G.S. 18B-101 is amended by adding a new subdivision to
13 read: 14 "(8a) 'Lottery law' or 'lottery laws' means any provision of
Chapter 18C of 15 the General Statutes and the rules issued by the Lottery
Commission 16 under the authority of Chapter 18C of the General Statutes."
17 SECTION 10.1(b) G.S. 18B-500(b) reads as rewritten: 18 "(b) Subject
Matter Jurisdiction. After taking the oath prescribed for a peace 19 officer,
an alcohol law-enforcement agent shall have authority to arrest and take
other 20 investigatory and enforcement actions for any criminal offense. The
primary 21 responsibility of an agent shall be enforcement of the ABC laws
laws, lottery laws, and 22 Article 5 of Chapter 90 (The Controlled Substances
Act); however, an agent may 23 perform any law-enforcement duty assigned
by the Secretary of Crime Control and 24 Public Safety or the Governor." 25
SECTION 10.1(c) G.S. 18B-500(d) reads as rewritten: 26 "(d) Service of
Commission Orders. Alcohol law-enforcement agents may serve 27 and
execute notices, orders, or demands issued by the Alcoholic Beverage Control
28 Commission or the North Carolina State Lottery Commission for the
surrender of 29 permits or relating to any administrative proceeding. While
serving and executing such 30 notices, orders, or demands, alcohol lawenforcement agents shall have all the power 31 and authority possessed by
law-enforcement officers when executing an arrest warrant." 32 SECTION
10.2(a) Effective for taxable years beginning on or after January 33 1, 2005,
Article 4A of Chapter 105 of the General Statutes is amended by adding a
new 34 section to read: 35 " 105-163.2B. North Carolina State Lottery
Commission must withhold taxes. 36 The North Carolina State Lottery
Commission, established by Chapter 18C of the 37 General Statutes, must
52
deduct and withhold State income taxes from the payment of 38 winnings
that are reportable to the Internal Revenue Service under section 3406 of the
39 Code. The amount of taxes to be withheld is seven percent (7%) of the
winnings. The 40 Commission must file a return and pay the withheld taxes in
the time and manner 41 required under G.S. 105-163.6 as if the winnings
were wages. The taxes the 42 Commission withholds are held in trust for the
Secretary." 43 SECTION 10.2(b) G.S. 105-259(b) is amended by adding a new
subdivision 44 to read: General Assembly of North Carolina Session 2005
Page 26 House Bill 1023 H1023-CSLB-94 [v.10] 1 "(b) Disclosure Prohibited.
An officer, an employee, or an agent of the State 2 who has access to tax
information in the course of service to or employment by the State 3 may not
disclose the information to any other person unless the disclosure is made for
4 one of the following purposes: 5 6 (33) To provide to the North Carolina
State Lottery Commission the 7 information required under G.S. 18C-141." 8
SECTION 10.3. G.S. 105-134 reads as rewritten: 9 " 105-134. Purpose. 10
The general purpose of this Part is to impose a tax for the use of the State 11
government upon the taxable income collectible annually: 12 (1) Of every
resident of this State. 13 (2) Of every nonresident individual deriving income
from North Carolina sources 14 attributable to the ownership of any interest
in real or tangible personal property in this 15 State or deriving State,
deriving income from a business, trade, profession, or 16 occupation carried
on in this State.State, or deriving income from gambling activities in 17 this
State." 18 SECTION 10.4 Effective for taxable years beginning on or after
January 1, 19 2005, G.S. 105-134.5(b) reads as rewritten: 20 "(b)
Nonresidents. For nonresident individuals, the term "North Carolina taxable
21 income" means the taxpayer's taxable income as determined under the
Code, adjusted as 22 provided in G.S. 105-134.6 and G.S. 105-134.7,
multiplied by a fraction the 23 denominator of which is the taxpayer's gross
income as determined under the Code, 24 adjusted as provided in G.S. 105134.6 and G.S. 105-134.7, and the numerator of which 25 is the amount of
that gross income, as adjusted, that is derived from North Carolina 26 sources
and is attributable to the ownership of any interest in real or tangible
personal 27 property in this State or State, is derived from a business, trade,
profession, or 28 occupation carried on in this State.State, or is derived from
gambling activities in this 29 State." 30 SECTION 11.1. G.S. 150B-1(c) reads
as rewritten: 31 "(c) Full Exemptions. This Chapter applies to every agency
except: 32 (1) The North Carolina National Guard in exercising its courtmartial 33 jurisdiction. 34 (2) The Department of Health and Human Services
in exercising its 35 authority over the Camp Butner reservation granted in
Article 6 of 36 Chapter 122C of the General Statutes. 37 (3) The Utilities
Commission. 38 (4) The Industrial Commission. 39 (5) The Employment
Security Commission. 40 (6) The State Board of Elections in administering the
HAVA 41 Administrative Complaint Procedure of Article 8A of Chapter 163 of
42 the General Statutes. 43 (7) The North Carolina State Lottery." General
Assembly of North Carolina Session 2005 H1023-CSLB-94 [v.10] House Bill
1023 Page 27 1 SECTION 12. The first security audit required under G.S. 18C123(a) shall 2 be conducted at the beginning of the first calendar year after
53
the effective date of this 3 act. The first audit required under G.S. 18C-123(d)
shall be conducted at the end of the 4 first fiscal year after the effective date
of this act. 5 SECTION 13. The Department of Health and Human Services
shall study 6 the effects of the establishment and operation of the North
Carolina State Lottery on the 7 incidence of gambling addiction in this State.
The Department shall report the results of 8 its study, including any proposed
legislation, to the Joint Legislative Health Care 9 Oversight Committee, the
Senate Appropriations Committee on Health and Human 10 Services, the
House of Representatives Appropriations Subcommittee on Health and 11
Human Services, and the Fiscal Research Division not later than January 1,
2007. 12 SECTION 14. Nothing in this act shall be construed to obligate the
General 13 Assembly to appropriate funds to implement this act. 14 SECTION
15. The State Treasurer shall lend to the North Carolina State 15 Lottery
Commission, at a rate of interest comparable to short-term rates in the
private 16 capital market and with repayment terms satisfactory to both
parties, sufficient funds to 17 cover initial operating expenses of the
Commission, except that the total amount 18 borrowed by the Commission
shall not exceed ten million dollars ($10,000,000). The 19 borrowed funds
shall be deposited in the North Carolina State Lottery Fund and shall be 20
available for expenditure for the purposes set forth in this act without further
action by 21 the General Assembly. The Commission shall repay any funds
lent to it pursuant to this 22 section within twenty-four months after the
effective date of this act. 23 SECTION 15.1. Notwithstanding G.S. 18C-164, as
enacted by Section 1 of 24 this act, all net revenues for fiscal year 2005-2006
shall be transferred to the Education 25 Lottery Reserve Fund. 26 SECTION
15.2. G.S. 115C-546.2 is amended by adding a new subsection to 27 read: 28
"(d) Monies transferred into the Fund in accordance with Chapter 18C of the
29 General Statutes shall be allocated for capital projects for school
construction projects 30 as follows: 31 (1) A sum equal to sixty-five percent
(65%) of those monies transferred in 32 accordance with G.S. 18C-164 shall
be allocated on a per average 33 daily membership basis according to the
average daily membership for 34 the budget year as determined and
certified by the State Board of 35 Education. 36 (2) A sum equal to thirty-five
percent (35%) of those monies transferred in 37 accordance with G.S. 18C164 shall be allocated to those local school 38 administrative units located in
whole or part in counties in which the 39 effective county tax rate as a
percentage of the effective State average 40 tax rate is greater than one
hundred percent (100%), with the following 41 definitions applying to this
subdivision: 42 a. "Effective county tax rate" means the actual county tax
rate 43 multiplied by a three-year weighted average of the most recent 44
annual sales assessment ratio studies. General Assembly of North Carolina
Session 2005 Page 28 House Bill 1023 H1023-CSLB-94 [v.10] 1 b. "State
average effective tax rate" means the average effective 2 county tax rates
for all counties. 3 c. "Sales assessment ratio studies" means sales
assessment ratio 4 studies performed by the Department of Revenue under 5
G.S. 105-289(h). 6 (3) No county shall have to provide matching funds
required under 7 subsection (c) of this section. 8 (4) A county may use
54
monies in this Fund to pay for school construction 9 projects in local school
administrative units and to retire indebtedness 10 incurred for school
construction projects incurred on or after January 11 1, 2003. 12 (5) A county
may not use monies in this Fund to pay for school technology 13 needs." 14
SECTION 15.3. Notwithstanding G.S. 18C-162(c), the General Assembly 15
shall transfer the unclaimed prize money from the North Carolina State
Lottery Fund to 16 the Escheat Fund in an amount equal to the principal
transferred from the Escheat Fund 17 for scholarships in fiscal years 20032004, 2004-2005, 2005-2006, and 2006-2007 until 18 the Escheat Fund is
repaid for any amounts of principal appropriated in those fiscal 19 years, if
any. 20 SECTION 16. Except as otherwise provided in this act, it is effective
when 21 it becomes law.
ONE ENACTING CLAUSE AND WHEREAS CLAUSES.

14-177. This Bill of the North Carolina Education Lottery promotes more funding
accountability and transparency of funding for each NC Education Lottery with Regards To make
publicly available The Allotment From That is Distributed Throughout The NC State Education
System. Making public the expenditures of private companies receiving the money should be
made public the expenditures.managing companies shall make funds available for viewing in
annual budget reports of all transactions of NC Education Lottery transactions for public viewing.
Section 2. This Act is pursuant to the provisions in the North Carolina State Lottery Act
and the Appropriations Act of 2005 and is effective immediately up ratification.
55

79TH ANNUAL SESSION
NCSL HB 009
Short Title: Taxation on Tobacco Products

House Sponsor: Andrew Frey
Senate Sponsor:
Referred To: Agriculture
AN ACT TO INCREASE TAXATION ON TOBACCO PRODUCTS IN NORTH
CAROLINA.

Section 1. G.S 105-113.5. reads as rewritten:
105-113.5. A tax is levied on the sale or possession for sale in this State, by a
distributor, of all cigarettes at the rate of two and one-fourth cents (2.25) 4 cents (6) per
individual cigarette. (1969, c. 1075, s. 2; c. 1246, s. 1; 1991, c. 689, s. 262; 2004-170, s.
5; 2005-276, s. 34.1(a), (b); 2009-451, s. 27A.5(a).
Section 2. G.S. 105-113.35. Reads as rewritten:
105-113.35. Tax on tobacco products other than cigarettes.
(a) Tax on Tobacco Products. - An excise tax is levied on tobacco products other
than cigarettes and vapor products at the rate of twelve and eight-tenths percent (12.8%)
twenty percent (20%) of the cost price of the products.
(a1) Tax on Vapor Products. - An excise tax is levied on vapor products at the rate
of five cents (5) twenty cents (20) per fluid milliliter of consumable product. All
invoices for vapor products issued by manufacturers must state the amount of
consumable product in milliliters.
Section 3. G.S. 105-113.35. Reads as rewritten:
(a) Two percent (2%) of increased sales tax is to be held for tobacco farm subsidies.
Section 4. This Act becomes effective on January 1, 2017.

56
79TH ANNUAL SESSION
NCSL HB 010
Short Title: Const. Amend.-Reserve Lottery Funds Teachers Salaries

House Sponsor: Vincent Piombino
Senate Sponsor:
AN ACT TO AMEND THE NORTH CAROLINA CONSTITUTION TO REQUIRE A
SPECIFIC PORTION OF LOTTERY PROCEEDS TO BE ALLOCATED TO TEACHERS
SALARIES AND HIGHER EDUCATION ASSISTANCE PROGRAMS.

PART I. CONSTITUTIONAL AMENDMENT
SECTION 1.(a) Article V of the Constitution of North Carolina is amended by adding a new
section to read:
"Sec. 15. Use of Lottery Funds.
Of the total annual net revenues of any lottery operated by the State a number equivalent to the
necessary amount to accommodate a raise in K-12 teachers with a bachelors degree salary to the
national average of fifty seven thousand three hundred and seventy nine dollars ($57,379). (ii)
With all other revenue allotted to need-based and merit-based assistance for higher 10 education
programs operated in this State.
SECTION 1. (b) The amendment set out in subsection (a) of this section shall be
Submitted to the qualified voters of the State at a statewide general election to be conducted on
November 3, 2016, which election shall be conducted under the laws then governing elections in
the State. Ballots, voting systems, or both may be used in accordance with Chapter 163 of the
General Statutes. The question to be used in the voting systems and ballots shall be:
57
"[ ] FOR [ ] AGAINST

A constitutional amendment providing that the necessary amount of the annual net revenues of
any lottery operated by the State shall be used to fund a raise in teachers salaries and remaining
amount shall be used to fund need-based and merit-based assistance for higher education
programs operated in this State."
" 18C-164. Transfer of net revenues.
(a) The funds remaining in the North Carolina State Lottery Fund after receipt of all revenues to the
Lottery Fund and after accrual of all obligations of the Commission for prizes and expenses shall
be considered to be the net revenues of the North Carolina State Lottery Fund. The net revenues
of the North Carolina State Lottery Fund shall be transferred four times a year to the Education
Lottery Fund, which shall be created in the State treasury.
(b) From the Education Lottery Fund, the Office of State Budget and Management shall transfer a
sum equal to five percent (5%) of the net revenue of the prior year to the Education Lottery
Reserve Fund. A special revenue fund for this purpose shall be established in the State General
Assembly of North Carolina Session 2015 Page 2 S602 [Edition 1] treasury to be known as the
Education Lottery Reserve Fund, and that fund shall be capped at fifty million dollars
($50,000,000). Monies in the Education Lottery Reserve Fund may be appropriated only as
provided in subsection (e) of this section
(c) The General Assembly shall appropriate the remaining net revenue of the Education Lottery Fund
annually in the Current Operations Appropriations Act for education-related 6 purposes, based
upon estimates of lottery net revenue to the Education Lottery Fund provided 7 by the Office of
State Budget and Management and the Fiscal Research Division of the 8 Legislative Services
Commission. as follows: (i) Of the total annual net revenues of any lottery operated by the State a
number equivalent to the necessary amount to accommodate a raise in K-12 teachers with a
bachelors degree salary to the national average of fifty seven thousand three hundred and seventy
nine dollars ($57,379). (ii) With all other revenue allotted to need-based and merit-based
assistance for higher 10 education programs operated in this State.
(d) A security interest shall not be granted in funds 11 appropriated pursuant to this subsection.
(e) ."
Section 2. If a majority of votes cast on the question are in favor of the 16 amendment set
out in Section 1(a) of this act, the State Board of Elections shall certify the 17 amendment to the
Secretary of State. The amendment shall become effective upon such 18 certification. The
Secretary of State shall enroll the amendment so certified among the 19 permanent records of that
office.
Section 2 of this act is effective when it becomes law.
58
79TH ANNUAL SESSION
NCSL HB 011
Short Title: Equal Employment Practices Act

Senate Sponsor:
AN ACT EXPANDING THE SCOPE OF CHARACTERISTICS PROTECTED BY NONDISCRIMINATION HIRING PRACTICES

143-422.2
Legislative declaration.
It is the public policy of this State to protect and safeguard the right and opportunity of all
persons to seek, obtain and hold employment without discrimination or abridgement on account
of race, religion, color, national origin, age, sex, sexual orientation, gender identity, marital status
or handicap by employers which regularly employ 15 or more employees.
It is recognized that the practice of denying employment opportunity and discriminating
in the terms of employment foments domestic strife and unrest, deprives the State of the fullest
utilization of its capacities for advancement and development, and substantially and adversely
affects the interests of employees, employers, and the public in general. (1977, c. 726, s. 1.)
59
79TH ANNUAL SESSION
NCSL HB 012
Short Title: A Humane Society Act

House Sponsor: Erin Harris & Brandon Hendricks
Senate Sponsor: _
AN ACT TO FURTHER PUNISH ABUSERS OF ANIMALS

14-360. Cruelty to animals; construction of section.
(a)
If any person shall intentionally overdrive, overload, wound, injure, torment, kill, or
deprive of necessary sustenance, or cause or procure to be overdriven, overloaded, wounded,
injured, tormented, killed, or deprived of necessary sustenance, any animal, every such offender
shall for every such offense be guilty of a Class 1 misdemeanor I felony.
(a1) If any person shall maliciously kill, or cause or procure to be killed, any animal by
intentional deprivation of necessary sustenance, that person shall be guilty of a Class H G felony.
(b)
If any person shall maliciously torture, mutilate, maim, cruelly beat, disfigure, poison, or
kill, or cause or procure to be tortured, mutilated, maimed, cruelly beaten, disfigured, poisoned,
or killed, any animal, every such offender shall for every such offense be guilty of a Class H F
felony. However, nothing in this section shall be construed to increase the penalty for
cockfighting provided for in G.S. 14-362.
(c)
As used in this section, the words "torture", "torment", and "cruelly" include or refer to
any act, omission, or neglect causing or permitting unjustifiable pain, suffering, or death. As used
in this section, the word "intentionally" refers to an act committed knowingly and without
justifiable excuse, while the word "maliciously" means an act committed intentionally and with
malice or bad motive. As used in this section, the term "animal" includes every living vertebrate
in the classes Amphibia, Reptilia, Aves, and Mammalia except human beings. However, this
section shall not apply to the following activities:
(1)
The lawful taking of animals under the jurisdiction and regulation of the Wildlife
Resources Commission, except that this section shall apply to those birds other than
60
pigeons exempted by the Wildlife Resources Commission from its definition of "wild
birds" pursuant to G.S. 113-129(15a).
(2)
Lawful activities conducted for purposes of biomedical research or training or for
purposes of production of livestock, poultry, or aquatic species.
(2a) Lawful activities conducted for the primary purpose of providing food for human
or animal consumption.
(3)
Activities conducted for lawful veterinary purposes.
(4)
The lawful destruction of any animal for the purposes of protecting the public,
other animals, property, or the public health.
(5)
The physical alteration of livestock or poultry for the purpose of conforming with
breed or show standards.
14-361. Instigating or promoting cruelty to animals.
If any person shall willfully set on foot, or instigate, or move to, carry on, or promote, or engage
in, or do any act towards the furtherance of any act of cruelty to any animal, he shall be guilty of
a Class 1 A1 misdemeanor.
Section 3. G.S. 14-361.1 reads as rewritten:
14-361.1. Abandonment of animals.
Any person being the owner or possessor, or having charge or custody of an animal, who
willfully and without justifiable excuse abandons the animal is guilty of a Class 2 1 misdemeanor.
14-362. Cockfighting.
A person who instigates, promotes, conducts, is employed at, allows property under his
ownership or control to be used for, participates as a spectator at, or profits from an exhibition
featuring the fighting of a cock is guilty of a Class H G felony. A lease of property that is used or
is intended to be used for an exhibition featuring the fighting of a cock is void, and a lessor who
knows this use is made or is intended to be made of his property is under a duty to evict the lessee
immediately.
14-362.1. Animal fights and baiting, other than cock fights, dog fights and dog baiting.
(a)
A person who instigates, promotes, conducts, is employed at, provides an animal for,
allows property under his ownership or control to be used for, or profits from an exhibition
featuring the fighting or baiting of an animal, other than a cock or a dog, is guilty of a Class 2
misdemeanor H felony. A lease of property that is used or is intended to be used for an exhibition
featuring the fighting or baiting of an animal, other than a cock or a dog, is void, and a lessor who
knows this use is made or is intended to be made of his property is under a duty to evict the lessee
immediately.
61
(b)
A person who owns, possesses, or trains an animal, other than a cock or a dog, with the
intent that the animal be used in an exhibition featuring the fighting or baiting of that animal or
any other animal is guilty of a Class 2 misdemeanor H felony.
(c)
A person who participates as a spectator at an exhibition featuring the fighting or baiting
of an animal, other than a cock or a dog, is guilty of a Class 2 misdemeanor I felony.
(d)
A person who commits an offense under subsection (a) within three years after being
convicted of an offense under this section is guilty of a Class I F felony.
(e)
This section does not prohibit the lawful taking or training of animals under the
jurisdiction and regulation of the Wildlife Resources Commission.
14-362.2. Dog fighting and baiting.
(a)
A person who instigates, promotes, conducts, is employed at, provides a dog for, allows
property under the person's ownership or control to be used for, gambles on, or profits from an
exhibition featuring the baiting of a dog or the fighting of a dog with another dog or with another
animal is guilty of a Class H F felony. A lease of property that is used or is intended to be used for
an exhibition featuring the baiting of a dog or the fighting of a dog with another dog or with
another animal is void, and a lessor who knows this use is made or is intended to be made of the
lessor's property is under a duty to evict the lessee immediately.
(b)
A person who owns, possesses, or trains a dog with the intent that the dog be used in an
exhibition featuring the baiting of that dog or the fighting of that dog with another dog or with
another animal is guilty of a Class H F felony.
(c)
A person who participates as a spectator at an exhibition featuring the baiting of a dog or
the fighting of a dog with another dog or with another animal is guilty of a Class H felony.
(d)
This section does not prohibit the use of dogs in the lawful taking of animals under the
jurisdiction and regulation of the Wildlife Resources Commission.
(e)
This section does not prohibit the use of dogs in earthdog trials that are sanctioned or
sponsored by entities approved by the Commissioner of Agriculture that meet standards that
protect the health and safety of the dogs. Quarry at an earthdog trial shall at all times be kept
separate from the dogs by a sturdy barrier, such as a cage, and have access to food and water.
(f)
This section does not apply to the use of herding dogs engaged in the working of
domesticated livestock for agricultural, entertainment, or sporting purposes.
14-362.3. Restraining dogs in a cruel manner.
A person who maliciously restrains a dog using a chain or wire grossly in excess of the size
necessary to restrain the dog safely is guilty of a Class 1 A1 misdemeanor. For purposes of this
section, "maliciously" means the person imposed the restraint intentionally and with malice or
bad motive.
62
14-363.1. Living baby chicks or other fowl, or rabbits under eight weeks of age; disposing
of as pets or novelties forbidden.
If any person, firm or corporation shall sell, or offer for sale, barter or give away as premiums
living baby chicks, ducklings, or other fowl or rabbits under eight weeks of age as pets or
novelties, such person, firm or corporation shall be guilty of a Class 3 2 misdemeanor. Provided,
that nothing contained in this section shall be construed to prohibit the sale of nondomesticated
species of chicks, ducklings, or other fowl, or of other fowl from proper brooder facilities by
hatcheries or stores engaged in the business of selling them for purposes other than for pets or
novelties.
Section 9. No commercial pet food shall be permitted for sale if it contains any or all of
the following: euthanized cats and dogs, plastics, insecticide, dead zoo animals, spoiled
supermarket food, slaughterhouse waste, restaurant grease, road kill, distiller fermentation waste,
contaminated grain middlings, animal collars and tags, or dying, diseased, and and/or disabled
farm animals. Any individual, business, or company who sells of such food shall be guilty of a
Class A1 misdemeanor.
Section 10. This act shall become effective one (1) month after ratification.
79TH ANNUAL SESSION
63
NCSL HB 013
Short Title: An Act to Maintain Requirements and Experience for Felony Cases
House Sponsor: Marshall Stookey
Senate Sponsor:
Referred to: Justice
AN ACT TO REQUEST THE NORTH CAROLINA SUPREME COURT TO ADOPT
RULES ESTABLISHING MINIMUM STANDARDS FOR DEFENSE ATTORNEYS
HANDLING FELONY CASES.
The General Assembly of North Carolina enacts:

SECTION 1. The Supreme Court is respectfully requested to adopt rules to improve
North Carolina's system of capital punishment by establishing minimum standards of training and
experience for defense attorneys handling felony cases. These rules should specify the minimum
number of years of legal experience and the minimum amount of felony case experience required
of any defense attorney participating in the trial of a felony case, and may also require specialized
training in capital case litigation for any or all of those participants in capital trials.
SECTION 2. G.S. 7A-498.5(c) reads as rewritten:
(1) The Commission shall develop standards governing the provision of service under this Article.
The standards shall include: Standards for maintaining and operating regional and district public
defender offices and appellate defender offices, including requirements regarding qualifications,
training, and size of the legal and supporting staff.
(2) Standards prescribing minimum experience, training, and other qualifications for appointed
counsel.
(3) Standards for public defender and appointed counsel caseloads. These standards are to be a
cap on the number of felony cases public defenders may take in a year congruent with the
American Bar Associations cap of one hundred and fifty (150) felony cases in one year per
attorney.
(4) Standards for the performance of public defenders and appointed counsel;
(5) Standards for the independent, competent, and efficient representation of clients whose cases
present conflicts of interest, in both the trial and appellate courts;
(6) Standards for providing and compensating experts and others who provide services related to
legal representation;
64
(7) Standards for qualifications and performance in capital cases; cases, consistent with any
rules adopted by the Supreme Court; and
(8) Standards for determining indigency and for assessing and collecting the costs of legal
representation and related services
SECTION 3. This act is effective when it becomes law.
SECTION 4. To increase the Budget of the Indigent defense services by $2,000,000
65
79TH ANNUAL SESSION
NCSL HB 014
Short Title: The Reconceptualization of Therapeutic Jurisprudence Act

House Sponsor: Brandon Hendricks
Senate Sponsor: _
AN ACT TO AMEND THE NORTH CAROLINA DRUG TREATMENT COURT ACT OF 1995

Section 1. G.S. 7A-797 reads as rewritten:
7A-797. Eligible population; drug treatment court procedures.
The Director of the Administrative Office of the Courts, in conjunction with the State Drug
Treatment Court Advisory Committee, shall develop criteria for eligibility and other procedural
and substantive guidelines for drug treatment court operation, with exception to certain
circumstances related to the eligibility for offenders convicted solely for a crime(s) of possession
for personal use. Any person convicted solely for a crime(s) of paraphernalia or possession for
personal use shall be guaranteed the option to participate in the drug treatment court program, but
will only be provided with this guarantee once in their lifetime.
Section 2. G.S. 7A-799 reads as rewritten:
7A-799. Treatment not guaranteed.
Nothing contained in this Article shall confer a right or an expectation of a right to treatment for a
defendant or offender within the criminal or juvenile justice system or a respondent in a juvenile
petition for abuse, neglect, or both.
Section 3. Failure to comply with the rules and regulations set forth by the Drug
Treatment Court may result in expulsion from the program and subsequent full penalty of the law
for which the individual was originally convicted.
Section 4. Any and all rights and privileges that had been revoked upon conviction shall
be restored upon successful completion of the program.
Section 4. This act is effective upon January 1st of 2017.
66
79TH ANNUAL SESSION
67
NCSL HB 015
Short Title: Sunshine Transparency Act

Senate Sponsor:
AN ACT PROTECTING THE RIGHTS OF EMPLOYEES TO REPORT UNLAWFUL
BEHAVIOR

(a)
Any person who intentionally gains access to the nonpublic areas of another's premises
and engages in an act that exceeds the person's authority to enter those areas is liable to the owner
or operator of the premises for any damages sustained. For the purposes of this section,
"nonpublic areas" shall mean those areas not accessible to or not intended to be accessed by the
general public.
(b)
For the purposes of this section, an act that exceeds a person's authority to enter the
nonpublic areas of another's premises is any of the following:
(1)
An employee who enters the nonpublic areas of an employer's premises for a
reason other than a bona fide intent of seeking or holding employment or doing business with the
employer and thereafter without authorization captures or removes the employer's data, paper,
records, or any other documents and uses the information to breach the person's duty of loyalty to
the employer.
(2)
An employee who intentionally enters the nonpublic areas of an employer's
premises for a reason other than a bona fide intent of seeking or holding employment or doing
business with the employer and thereafter without authorization records images or sound
occurring within an employer's premises and uses the recording to breach the person's duty of
loyalty to the employer.
(3)
Knowingly or intentionally placing on the employer's premises an unattended
camera or electronic surveillance device and using that device to record images or data.
(4)
Conspiring in organized retail theft, as defined in Article 16A of Chapter 14 of
the General Statutes.
68
(5)
property.
An act that substantially interferes with the ownership or possession of real
(c)
Any person who intentionally directs, assists, compensates, or induces another person to
violate this section shall be jointly liable.
(d)
A court may award to a party who prevails in an action brought pursuant to this section
one or more of the following remedies:
(1)
Equitable relief.
(2)
Compensatory damages as otherwise allowed by State or federal law.
(3)
Costs and fees, including reasonable attorneys' fees.
(4)
Exemplary damages as otherwise allowed by State or federal law in the
amount of five thousand dollars ($5,000) for each day, or portion thereof,
that a defendant has acted in violation of subsection (a) of this section.
(e)
Nothing in this section shall be construed to diminish the protections provided to
employees under Article 21 of Chapter 95 or Article 14 of Chapter 126 of the General Statutes,
nor may any party who is covered by these Articles be liable under this section.
(f)
This section shall not apply to:
(1)
Any governmental agency or law enforcement officer engaged in a lawful
investigation of the premises or the owner or operator of the premises.
(2)
Any individual, group, or organization acting in a manner intended to expose
criminal behavior that is detrimental to the public interest with regards to the health and safety of
people, animals, and industry.
(g)
Nothing in this section shall be construed to limit any other remedy available at
common law or provided by the General Statutes. (2015-50, s. 1.)
79TH ANNUAL SESSION
NCSL HB 016
69
Short Title: [W2] In-State Tuition/D.A.C.A Recipients

House Sponsor[W3] : Jessica Calderon Alvarado
Senate Sponsor[W4] :
Referred To[W5] : Education
AN ACT TO GRANT IN-STATE TUITION FOR RECEPIENTS OF DEFERRED ACTION FOR
CHILHOOD ARRIVALS AT A NORTH CAROLINA INSTUTION OF HIGHER EDUCATION.
[J6]

Section 1. [S E F7] G.S. 116-143.1 reads as amended by adding new subsections to read:
(n) Notwithstanding any other previsions of this section, an individual who meets all of
the following qualifications shall be granted in-state tuition status:
(1)
The individual was granted Deferred Action for Childhood Arrivals and has been approved for
Employment Authorization.
(2)
The individual resided in the state of North Carolina for a minimum of five consecutive years
prior to applying to a North Carolina institution of higher education.
(3)
The individual graduated from a secondary or high school within North Carolina with a Grade
Point Average of 3.0.
(4)
The individual attended North Carolina schools for a minimum of four consecutive years prior to
their secondary or high school graduation.
(5)
The individual filed an affidavit with the higher education institution to which they applied
stating that the individual has filed an application to legalize his or her immigration status or will
file an application as soon as he or she is eligible to do so.
(6)
The individual satisfies the admission standards for the higher education institution to which the
person applied.
Section 2[S E F8] . This Act becomes effective January 1, 2017, and shall apply to each of the
following academic years thereafter.
70
79TH ANNUAL SESSION
NCSL H[J1] B 017
Short Title: Child Placement
71
House Sponsor : Kevin Countiss

Senate Sponsor:
Referred To :Justice
[J6]
AN ACT TO ESTABLISH CHILD PLACEMENT PROCEDURES.
The North Carolina Student Legislature Enacts: 48-2-100. Jurisdiction.

(a)
Adoption shall be by a special proceeding before the clerk of superior court. Also,
Should be heard with an additional jury panel of 5
(b)
Except as provided in subsection (c) of this section, jurisdiction over adoption
proceedings commenced under this Chapter exists if, at the commencement of the
proceeding:
(1)
The adoptee has lived in this State for at least the six consecutive months
immediately preceding the filing of the petition or from birth;
(2)
The prospective adoptive parent has lived in or been domiciled in this State for at
least the six consecutive months immediately preceding the filing of the petition; or
(3)
An agency licensed by this State or a county department of social services in this
State has legal custody of the adoptee.
(c)
The courts of this State shall not exercise jurisdiction under this Chapter if at the
time the petition for adoption is filed, a court of any other state is exercising jurisdiction
substantially in conformity with the Uniform Child-Custody Jurisdiction and
Enforcement Act, Article 2 of Chapter 50A of the General Statutes. However, this
subsection shall not apply if prior to the decree of adoption being granted, the court of the
other state dismisses its proceeding or releases its exclusive, continuing jurisdiction.
(1949, c. 300; 1963, c. 699; 1967, c. 619, ss. 1-3; c. 693; c. 880, s. 3; 1969, c. 21, ss. 3-6;
1971, c. 233, s. 1; c. 395; c. 1231, s. 1; 1973, c. 849, s. 3; c. 1354, ss. 1-4; 1975, c. 91;
1979, c. 107, s. 6; 1981, c. 657; 1983, c. 454, s. 6; 1989, c. 208; c. 727, s. 219(4); 1993, c.
553, s. 14; 1995, c. 88, ss. 3, 4; c. 457, s. 2; 1999-223, s. 8; 2007-151, s. 2; 2015-54, s. 3.)
Section 1. [S E F7] G.S. 14-177 reads as rewritten:

48-2-100. [S E F8] If any person shall commit the crime against nature, with mankind or [S E F9]
beast, he shall be punished as a Class I felon.
Section 2[S E F10] . This Act is effective upon three (3) days [J11] from ratification.
72

79TH ANNUAL SESSION
NCSL HB 018
Short Title: Spouses Informed Consent on Abortion
House Sponsor: Matthew Ellis
73
Senate Sponsor:
Referred To:Justice
AN ACT TO SHARE PARENTAL CONSENT ON ABORTION.
The North Carolina Student Legislature enacts:

SECTION 7.(b) G.S. 90-21.82 reads as rewritten:
" 90-21.82. Informed consent to abortion.
No abortion shall be performed upon a woman in this State without her voluntary and
informed consent. Except in the case of a medical emergency, consent to an abortion is
voluntary and informed only if all of the following conditions are satisfied:
(1)
At least 72 hours prior to the abortion, a physician or qualified professional has

orally informed the woman, by telephone or in person, of all of the following:
If the physician or qualified professional does not know the

information required in sub-subdivisions a., f., or g. of this
subdivision, the woman shall be advised that this information will be
directly available from the physician who is to perform the abortion.
However, the fact that the physician or qualified professional does not
know the information required in sub-subdivisions a., f., or g. shall not
restart the 72-hour period. The information required by this
subdivision shall be provided in English and in each language that is
the primary language of at least two percent (2%) of the State's
population. The information may be provided orally either by
telephone or in person, in which case the required information may be
based on facts supplied by the woman to the physician and whatever
other relevant information is reasonably available. The information
required by this subdivision may not be provided by a tape recording
but shall be provided during a consultation in which the physician is
able to ask questions of the patient and the patient is able to ask
questions of the physician. If, in the medical judgment of the
physician, a physical examination, tests, or the availability of other
information to the physician subsequently indicates a revision of the
information previously supplied to the patient, then that revised
74
information may be communicated to the patient at any time before

the performance of the abortion. Nothing in this section may be
construed to preclude provision of required information in a language
understood by the patient through a translator.
(2)
The physician or qualified professional has informed the woman, either by
telephone or in person, of each of the following at least 72 hours before the abortion:
a.
b.
c.
That medical assistance benefits may be available for prenatal

care, childbirth, and neonatal care.
That public assistance programs under Chapter 108A of the
General Statutes may or may not be available as benefits under
federal and State assistance programs.
That the father is liable to assist in the support of the child, even
if the father has offered to pay for the abortion.
d.
That the woman has other alternatives to abortion, including

keeping the baby or placing the baby for adoption.
e.
That the woman has the right to review the printed materials
described in G.S. 90-21.83, that these materials are available
on a State-sponsored Web site, and the address of the Statesponsored Web site. The physician or a qualified professional
shall orally inform the woman that the materials have been
provided by the Department and that they describe the unborn
child and list agencies that offer alternatives to abortion. If the
woman chooses to view the materials other than on the Web
site, the materials shall either be given to her at least 72 hours
before the abortion or be mailed to her at least 72 hours before
the abortion by certified mail, restricted delivery to addressee.
f.
That the woman is free to withhold or withdraw her consent to

the abortion at any time before or during the abortion without
affecting her right to future care or treatment and without the
loss of any State or federally funded benefits to which she
might otherwise be entitled. The information required by this
subdivision shall be provided in English and in each language
that is the primary language of at least two percent (2%) of the
State's population. The information required by this subdivision
may be provided by a tape recording if provision is made to
record or otherwise register specifically whether the woman
does or does not choose to have the printed materials given or
mailed to her. Nothing in this subdivision shall be construed to
prohibit the physician or qualified professional from e-mailing
75
a Web site link to the materials described in this subdivision or

G.S. 90-21.83.
(3)
If the woman is married at the time in which she wishes to have an
abortion, the voluntary and informed consent of the spouse must be obtained. If the
consent of the spouse is not obtained and the abortion is completed then the spouse would
be entitled to a marriage annulment.
79TH ANNUAL SESSION
NCSL HB 019
Short Title: Marijuana Possession

House Sponsor: Derrick Rector
Senate Sponsor:
76
Referred To:Justice
AN ACT TO ALTER MARIJUANA PERSECUTION CHARGES
[J6]

90-113.22. Possession of drug paraphernalia.
(a)
It is unlawful for any person to knowingly use, or to possess with intent to
use, drug paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture,
compound, convert, produce, process, prepare, test, analyze, package, repackage,
store, contain, or conceal a controlled substance other than marijuana which it
would be unlawful to possess, or to inject, ingest, inhale, or otherwise introduce into
the body a controlled substance other than marijuana which it would be unlawful to
possess.
(b)
Issued.
Violation of this section is a Class 1 misdemeanor A fine of $250 Will Be
(c)
Prior to searching a person, a person's premises, or a person's vehicle, an
officer may ask the person whether the person is in possession of a hypodermic
needle or other sharp object that may cut or puncture the officer or whether such a
hypodermic needle or other sharp object is on the premises or in the vehicle to be
searched. If there is a hypodermic needle or other sharp object on the person, on the
person's premises, or in the person's vehicle and the person alerts the officer of that
fact prior to the search, the person shall not be charged with or prosecuted for
possession of drug paraphernalia for the needle or sharp object, or for residual
amounts of a controlled substance contained in the needle or sharp object. The
exemption under this subsection does not apply to any other drug paraphernalia that
may be present and found during the search. For purposes of this subsection, the
term "officer" includes "criminal justice officers" as defined in G.S. 17C-2(3) and a
"justice officer" as defined in G.S. 17E-2(3). (1981, c. 500, s. 1; 1993, c. 539, s.
624; 1994, Ex. Sess., c. 24, s. 14(c); 2013-147, s. 1; 2014-119, s. 3(a); 2015-284, s.
2.)
90-95. Violations; penalties.
(a)
Except as authorized by this Article, it is unlawful for any person:
(1)
To manufacture, sell or deliver, or possess with intent to manufacture, sell
or deliver, a controlled substance;
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(2)
To create, sell or deliver, or possess with intent to sell or deliver, a
counterfeit controlled substance;
(3)
To possess a controlled substance.
(b)
Except as provided in subsections (h) and (i) of this section, any person
who violates G.S. 90-95(a)(1) with respect to:
(1)
A controlled substance classified in Schedule I or II shall be punished as a
Class H felon, except as follows: (i) the sale of a controlled substance classified in
Schedule I or II shall be punished as a Class G felony, and (ii) the manufacture of
methamphetamine shall be punished as provided by subdivision (1a) of this
subsection.
(1a)
The manufacture of methamphetamine shall be punished as a Class C
felony unless the offense was one of the following: packaging or repackaging
methamphetamine, or labeling or relabeling the methamphetamine container. The
offense of packaging or repackaging methamphetamine, or labeling or relabeling the
methamphetamine container shall be punished as a Class H felony.
(2)
A controlled substance classified in Schedule III, IV, V, or VI shall be
punished as a Class I felon, except that the sale of a controlled substance classified
in Schedule III, IV, V, or VI shall be punished as a Class H felon. The transfer of
less than 5 grams of marijuana or less than 2.5 grams of a synthetic cannabinoid or
any mixture containing such substance for no remuneration shall not constitute a
delivery in violation of G.S. 90-95(a)(1).
(c)
felon.
Any person who violates G.S. 90-95(a)(2) shall be punished as a Class I
(d)
Except as provided in subsections (h) and (i) of this section, any person
who violates G.S. 90-95(a)(3) with respect to:
(1)
A controlled substance classified in Schedule I shall be punished as a Class I
felon. However, if the controlled substance is MDPV and the quantity of the MDPV
is 1 gram or less, the violation shall be punishable as a Class 1 misdemeanor.
(2)
A controlled substance classified in Schedule II, III, or IV shall be guilty
of a Class 1 misdemeanor. If the controlled substance exceeds four tablets, capsules,
or other dosage units or equivalent quantity of hydromorphone or if the quantity of
the controlled substance, or combination of the controlled substances, exceeds one
hundred tablets, capsules or other dosage units, or equivalent quantity, the violation
shall be punishable as a Class I felony. If the controlled substance is
methamphetamine, amphetamine, phencyclidine, or cocaine and any salt, isomer,
salts of isomers, compound, derivative, or preparation thereof, or coca leaves and
any salt, isomer, salts of isomers, compound, derivative, or preparation of coca
leaves, or any salt, isomer, salts of isomers, compound, derivative or preparation
78
thereof which is chemically equivalent or identical with any of these substances

(except decocanized coca leaves or any extraction of coca leaves which does not
contain cocaine or ecgonine), the violation shall be punishable as a Class I felony.
(3)
A controlled substance classified in Schedule V shall be guilty of a Class 2
misdemeanor;
(4)
A controlled substance classified in Schedule VI shall be guilty of a Class
3 misdemeanor, but any sentence of imprisonment imposed must be suspended and
the judge may not require at the time of sentencing that the defendant serve a period
of imprisonment as a special condition of probation. If the quantity of the controlled
substance exceeds one-half of an ounce (avoirdupois) of marijuana, 7 grams of a
synthetic cannabinoid or any mixture containing such substance, or one-twentieth of
an ounce (avoirdupois) of the extracted resin of marijuana, commonly known as
hashish, the violation shall be punishable as a Class 1 misdemeanor. If the quantity
of the controlled substance exceeds one and one-half ounces (avoirdupois) of
marijuana, 21 grams of a synthetic cannabinoid or any mixture containing such
substance, or three-twentieths of an ounce (avoirdupois) of the extracted resin of
marijuana, commonly known as hashish, or if the controlled substance consists of
any quantity of synthetic tetrahydrocannabinols or tetrahydrocannabinols isolated
from the resin of marijuana, the violation shall be punishable as a Class I felony.
(d1)
to:
(1)
Except as authorized by this Article, it is unlawful for any person
a.
Possess an immediate precursor chemical with intent to manufacture a
controlled substance; or
b.
Possess or distribute an immediate precursor chemical knowing, or having
reasonable cause to believe, that the immediate precursor chemical will be used to
manufacture a controlled substance; or
c.
Possess a pseudoephedrine product if the person has a prior conviction for
the possession of methamphetamine, possession with the intent to sell or deliver
methamphetamine, sell or deliver methamphetamine, trafficking methamphetamine,
possession of an immediate precursor chemical, or manufacture of
methamphetamine. The prior conviction may be from any jurisdiction within the
United States.
Except where the conduct is covered under subdivision (2) of this subsection, any
person who violates this subdivision shall be punished as a Class H felon.
(2)
Except as authorized by this Article, it is unlawful for any person to:
a.
Possess an immediate precursor chemical with intent to manufacture
methamphetamine; or
79
b.
Possess or distribute an immediate precursor chemical knowing, or having
reasonable cause to believe, that the immediate precursor chemical will be used to
manufacture methamphetamine.
Any person who violates this subdivision shall be punished as a Class F felon.
(d2)
The immediate precursor chemicals to which subsection (d1) of this
section applies are those immediate precursor chemicals designated by the
Commission pursuant to its authority under G.S. 90-88, and the following (until
otherwise specified by the Commission):
(1)
Acetic anhydride.
(2)
Acetone.
(2a)
Ammonium nitrate.
(2b)
Ammonium sulfate.
(3)
Anhydrous ammonia.
(4)
Anthranilic acid.
(5)
Benzyl chloride.
(6)
Benzyl cyanide.
(7)
2-Butanone (Methyl Ethyl Ketone).
(8)
Chloroephedrine.
(9)
Chloropseudoephedrine.
(10)
D-lysergic acid.
(11)
Ephedrine.
(12)
Ergonovine maleate.
(13)
Ergotamine tartrate.
(13a)
Ether based starting fluids.
(14)
Ethyl ether.
(15)
Ethyl Malonate.
(16)
Ethylamine.
(17)
Gamma-butyrolactone.
(18)
Hydrochloric Acid. (Muriatic Acid).
(19)
Iodine.
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(20)
Isosafrole.
(21)
Sources of lithium metal.
(22)
Malonic acid.
(23)
Methylamine.
(24)
Methyl Isobutyl Ketone.
(25)
N-acetylanthranilic acid.
(26)
N-ethylephedrine.
(27)
N-ethylepseudoephedrine.
(28)
N-methylephedrine.
(29)
N-methylpseudoephedrine.
(30)
Norpseudoephedrine.
(30a)
Petroleum based organic solvents such as camping fuels and lighter fluids.
(31)
Phenyl-2-propane.
(32)
Phenylacetic acid.
(33)
Phenylpropanolamine.
(34)
Piperidine.
(35)
Piperonal.
(36)
Propionic anhydride.
(37)
Pseudoephedrine.
(38)
Pyrrolidine.
(39)
Red phosphorous.
(40)
Safrole.
(40a)
Sodium hydroxide (Lye).
(41)
Sources of sodium metal.
(42)
Sulfuric Acid.
(43)
Tetrachloroethylene.
(44)
Thionylchloride.
(45)
Toluene.
81
(e)
The prescribed punishment and degree of any offense under this Article
shall be subject to the following conditions, but the punishment for an offense may
be increased only by the maximum authorized under any one of the applicable
conditions:
(1),
(2) Repealed by Session Laws 1979, c. 760, s. 5.
(3)
If any person commits a Class 1 misdemeanor under this Article and if he
has previously been convicted for one or more offenses under any law of North
Carolina or any law of the United States or any other state, which offenses are
punishable under any provision of this Article, he shall be punished as a Class I
felon. The prior conviction used to raise the current offense to a Class I felony shall
not be used to calculate the prior record level.
(4)
If any person commits a Class 2 misdemeanor, and if he has previously
been convicted for one or more offenses under any law of North Carolina or any law
of the United States or any other state, which offenses are punishable under any
provision of this Article, he shall be guilty of a Class 1 misdemeanor. The prior
conviction used to raise the current offense to a Class 1 misdemeanor shall not be
used to calculate the prior conviction level.
(5)
Any person 18 years of age or over who violates G.S. 90-95(a)(1) by
selling or delivering a controlled substance to a person under 16 years of age but
more than 13 years of age or a pregnant female shall be punished as a Class D felon.
Any person 18 years of age or over who violates G.S. 90-95(a)(1) by selling or
delivering a controlled substance to a person who is 13 years of age or younger shall
be punished as a Class C felon. Mistake of age is not a defense to a prosecution
under this section. It shall not be a defense that the defendant did not know that the
recipient was pregnant.
(6)
For the purpose of increasing punishment under G.S. 90-95(e)(3) and (e)
(4), previous convictions for offenses shall be counted by the number of separate
trials at which final convictions were obtained and not by the number of charges at a
single trial.
(7)
If any person commits an offense under this Article for which the
prescribed punishment requires that any sentence of imprisonment be suspended,
and if he has previously been convicted for one or more offenses under any law of
North Carolina or any law of the United States or any other state, which offenses are
punishable under any provision of this Article, he shall be guilty of a Class 2
misdemeanor.
(8)
Any person 21 years of age or older who commits an offense under G.S.
90-95(a)(1) on property used for a child care center, or for an elementary or
secondary school or within 1,000 feet of the boundary of real property used for a
child care center, or for an elementary or secondary school shall be punished as a
82
Class E felon. For purposes of this subdivision, the transfer of less than five grams
of marijuana for no remuneration shall not constitute a delivery in violation of G.S.
90-95(a)(1). For purposes of this subdivision, a child care center is as defined in
G.S. 110-86(3)a., and that is licensed by the Secretary of the Department of Health
and Human Services.
(9)
Any person who violates G.S. 90-95(a)(3) on the premises of a penal
institution or local confinement facility shall be guilty of a Class H felony.
(10)
Any person 21 years of age or older who commits an offense under G.S.
90-95(a)(1) on property that is a public park or within 1,000 feet of the boundary of
real property that is a public park shall be punished as a Class E felon. For purposes
of this subdivision, the transfer of less than five grams of marijuana for no
remuneration shall not constitute a delivery in violation of G.S. 90-95(a)(1).
(f)
Any person convicted of an offense or offenses under this Article who is
sentenced to an active term of imprisonment that is less than the maximum active
term that could have been imposed may, in addition, be sentenced to a term of
special probation. Except as indicated in this subsection, the administration of
special probation shall be the same as probation. The conditions of special probation
shall be fixed in the same manner as probation, and the conditions may include
requirements for rehabilitation treatment. Special probation shall follow the active
sentence. No term of special probation shall exceed five years. Special probation
may be revoked in the same manner as probation; upon revocation, the original term
of imprisonment may be increased by no more than the difference between the
active term of imprisonment actually served and the maximum active term that
could have been imposed at trial for the offense or offenses for which the person
was convicted, and the resulting term of imprisonment need not be diminished by
the time spent on special probation.
(g)
Whenever matter is submitted to the North Carolina State Crime
Laboratory, the Charlotte, North Carolina, Police Department Laboratory or to the
Toxicology Laboratory, Reynolds Health Center, Winston-Salem for chemical
analysis to determine if the matter is or contains a controlled substance, the report of
that analysis certified to upon a form approved by the Attorney General by the
person performing the analysis shall be admissible without further authentication
and without the testimony of the analyst in all proceedings in the district court and
superior court divisions of the General Court of Justice as evidence of the identity,
nature, and quantity of the matter analyzed. Provided, however, the provisions of
this subsection may be utilized by the State only if:
(1)
The State notifies the defendant at least 15 business days before the
proceeding at which the report would be used of its intention to introduce the report
into evidence under this subsection and provides a copy of the report to the
defendant, and
83
(2)
The defendant fails to file a written objection with the court, with a copy
to the State, at least five business days before the proceeding that the defendant
objects to the introduction of the report into evidence.
If the defendant's attorney of record, or the defendant if that person has no attorney,
fails to file a written objection as provided in this subsection, then the objection
shall be deemed waived and the report shall be admitted into evidence without the
testimony of the analyst. Upon filing a timely objection, the admissibility of the
report shall be determined and governed by the appropriate rules of evidence.
Nothing in this subsection precludes the right of any party to call any witness or to
introduce any evidence supporting or contradicting the evidence contained in the
report.
(g1)
Procedure for establishing chain of custody without calling unnecessary
witnesses. (1)
For the purpose of establishing the chain of physical custody or control of
evidence consisting of or containing a substance tested or analyzed to determine
whether it is a controlled substance, a statement signed by each successive person in
the chain of custody that the person delivered it to the other person indicated on or
about the date stated is prima facie evidence that the person had custody and made
the delivery as stated, without the necessity of a personal appearance in court by the
person signing the statement.
(2)
The statement shall contain a sufficient description of the material or its
container so as to distinguish it as the particular item in question and shall state that
the material was delivered in essentially the same condition as received. The
statement may be placed on the same document as the report provided for in
subsection (g) of this section.
(3)
The provisions of this subsection may be utilized by the State only if:
a.
The State notifies the defendant at least 15 days before trial of its intention
to introduce the statement into evidence under this subsection and provides the
defendant with a copy of the statement, and
b.
The defendant fails to notify the State at least five days before trial that the
defendant objects to the introduction of the statement into evidence.
If the defendant's attorney of record, or the defendant if that person has no attorney,
fails to file a written objection as provided in this subsection, then the objection
shall be deemed waived and the statement shall be admitted into evidence without
the necessity of a personal appearance by the person signing the statement. Upon
filing a timely objection, the admissibility of the report shall be determined and
governed by the appropriate rules of evidence.
84
(4)
Nothing in this subsection precludes the right of any party to call any
witness or to introduce any evidence supporting or contradicting the evidence
contained in the statement.
(h)
Notwithstanding any other provision of law, the following provisions
apply except as otherwise provided in this Article.
(1)
Any person who sells, manufactures, delivers, transports, or possesses in
excess of 10 pounds (avoirdupois) of marijuana shall be guilty of a felony which
felony shall be known as "trafficking in marijuana" and if the quantity of such
substance involved:
a.
Is in excess of 10 pounds, but less than 50 pounds, such person shall be
punished as a Class H felon and shall be sentenced to a minimum term of 25 months
and a maximum term of 39 months in the State's prison and shall be fined not less
than five thousand dollars ($5,000); Shall Be fined $100-$5000
b.
Is 50 pounds or more, but less than 2,000 pounds, such person shall be
punished as a Class G felon and shall be sentenced to a minimum term of 35 months
than twenty-five thousand dollars ($25,000); Shall Be fined $100-$10,000
c.
Is 2,000 pounds or more, but less than 10,000 pounds, such person shall be
punished as a Class F felon and shall be sentenced to a minimum term of 70 months
than fifty thousand dollars ($50,000); Shall Be fined $100-$15,000
d.
Is 10,000 pounds or more, such person shall be punished as a Class D
felon and shall be sentenced to a minimum term of 175 months and a maximum
term of 222 months in the State's prison and shall be fined not less than two hundred
thousand dollars ($200,000). Shall Be fined $100- $25,000
(1a)
For the purpose of this subsection, a "dosage unit" shall consist of 3 grams
of synthetic cannabinoid or any mixture containing such substance. Any person who
sells, manufactures, delivers, transports, or possesses in excess of 50 dosage units of
a synthetic cannabinoid or any mixture containing such substance, shall be guilty of
a felony, which felony shall be known as "trafficking in synthetic cannabinoids,"
and if the quantity of such substance involved:
a.
Is in excess of 50 dosage units, but less than 250 dosage units, such person
shall be punished as a Class H felon and shall be sentenced to a minimum term of
25 months and a maximum term of 39 months in the State's prison and shall be
fined not less than five thousand dollars ($5,000);
b.
Is 250 dosage units or more, but less than 1250 dosage units, such person
shall be punished as a Class G felon and shall be sentenced to a minimum term of
85
35 months and a maximum term of 51 months in the State's prison and shall be
fined not less than twenty-five thousand dollars ($25,000);
c.
Is 1250 dosage units or more, but less than 3750 dosage units, such person
shall be punished as a Class F felon and shall be sentenced to a minimum term of 70
months and a maximum term of 93 months in the State's prison and shall be fined
not less than fifty thousand dollars ($50,000);
d.
Is 3750 dosage units or more, such person shall be punished as a Class D
felon and shall be sentenced to a minimum term of 175 months and a maximum
term of 222 months in the State's prison and shall be fined not less than two hundred
thousand dollars ($200,000).
(2)
Any person who sells, manufactures, delivers, transports, or possesses
1,000 tablets, capsules or other dosage units, or the equivalent quantity, or more of
methaqualone, or any mixture containing such substance, shall be guilty of a felony
which felony shall be known as "trafficking in methaqualone" and if the quantity of
such substance or mixture involved:
a.
Is 1,000 or more dosage units, or equivalent quantity, but less than 5,000
dosage units, or equivalent quantity, such person shall be punished as a Class G
felon and shall be sentenced to a minimum term of 35 months and a maximum term
of 51 months in the State's prison and shall be fined not less than twenty-five
thousand dollars ($25,000);
b.
Is 5,000 or more dosage units, or equivalent quantity, but less than 10,000
dosage units, or equivalent quantity, such person shall be punished as a Class F
of 93 months in the State's prison and shall be fined not less than fifty thousand
dollars ($50,000);
c.
Is 10,000 or more dosage units, or equivalent quantity, such person shall
be punished as a Class D felon and shall be sentenced to a minimum term of 175
not less than two hundred thousand dollars ($200,000).
(3)
Any person who sells, manufactures, delivers, transports, or possesses 28
grams or more of cocaine and any salt, isomer, salts of isomers, compound,
derivative, or preparation thereof, or any coca leaves and any salt, isomer, salts of
isomers, compound, derivative, or preparation of coca leaves, and any salt, isomer,
salts of isomers, compound, derivative or preparation thereof which is chemically
equivalent or identical with any of these substances (except decocainized coca
leaves or any extraction of coca leaves which does not contain cocaine) or any
mixture containing such substances, shall be guilty of a felony, which felony shall
be known as "trafficking in cocaine" and if the quantity of such substance or
mixture involved:
86
a.
Is 28 grams or more, but less than 200 grams, such person shall be
than fifty thousand dollars ($50,000);
b.
than one hundred thousand dollars ($100,000);
c.
Is 400 grams or more, such person shall be punished as a Class D felon
and shall be sentenced to a minimum term of 175 months and a maximum term of
222 months in the State's prison and shall be fined at least two hundred fifty
(3a)
Repealed by Session Laws 1999-370, s. 1, effective December 1, 1999.
(3b)
grams or more of methamphetamine or any mixture containing such substance shall
be guilty of a felony which felony shall be known as "trafficking in
methamphetamine" and if the quantity of such substance or mixture involved:
a.
b.
punished as a Class E felon and shall be sentenced to a minimum term of 90 months
c.
Is 400 grams or more, such person shall be punished as a Class C felon
(3c)
grams or more of amphetamine or any mixture containing such substance shall be
guilty of a felony, which felony shall be known as "trafficking in amphetamine",
and if the quantity of such substance or mixture involved:
a.
punished as a Class H felon and shall be sentenced to a minimum term of 25 months
than five thousand dollars ($5,000);
87
b.
than twenty-five thousand dollars ($25,000);
c.
Is 400 grams or more, such person shall be punished as a Class E felon
120 months in the State's prison and shall be fined at least one hundred thousand
dollars ($100,000).
(3d)
grams or more of MDPV or any mixture containing such substance shall be guilty
of a felony, which felony shall be known as "trafficking in MDPV," and if the
quantity of such substance or mixture involved:
a.
b.
c.
(3e)
grams or more of mephedrone or any mixture containing such substance shall be
guilty of a felony, which felony shall be known as "trafficking in mephedrone," and
if the quantity of such substance or mixture involved:
a.
b.
c.
88
(4)
Any person who sells, manufactures, delivers, transports, or possesses four
grams or more of opium or opiate, or any salt, compound, derivative, or preparation
of opium or opiate (except apomorphine, nalbuphine, analoxone and naltrexone and
their respective salts), including heroin, or any mixture containing such substance,
shall be guilty of a felony which felony shall be known as "trafficking in opium or
heroin" and if the quantity of such controlled substance or mixture involved:
a.
Is four grams or more, but less than 14 grams, such person shall be
b.
Is 14 grams or more, but less than 28 grams, such person shall be punished
as a Class E felon and shall be sentenced to a minimum term of 90 months and a
maximum term of 120 months in the State's prison and shall be fined not less than
one hundred thousand dollars ($100,000);
c.
Is 28 grams or more, such person shall be punished as a Class C felon and
shall be sentenced to a minimum term of 225 months and a maximum term of 282
months in the State's prison and shall be fined not less than five hundred thousand
dollars ($500,000).
(4a)
tablets, capsules, or other dosage units, or the equivalent quantity, or more, of
Lysergic Acid Diethylamide, or any mixture containing such substance, shall be
guilty of a felony, which felony shall be known as "trafficking in Lysergic Acid
Diethylamide". If the quantity of such substance or mixture involved:
a.
Is 100 or more dosage units, or equivalent quantity, but less than 500
dosage units, or equivalent quantity, such person shall be punished as a Class G
of 51 months in the State's prison and shall be fined not less than twenty-five
thousand dollars ($25,000);
b.
Is 500 or more dosage units, or equivalent quantity, but less than 1,000
dosage units, or equivalent quantity, such person shall be punished as a Class F
of 93 months in the State's prison and shall be fined not less than fifty thousand
dollars ($50,000);
c.
Is 1,000 or more dosage units, or equivalent quantity, such person shall be
punished as a Class D felon and shall be sentenced to a minimum term of 175
not less than two hundred thousand dollars ($200,000).
89
(4b)
or more tablets, capsules, or other dosage units, or 28 grams or more of 3,4methylenedioxyamphetamine (MDA), including its salts, isomers, and salts of
isomers, or 3,4-methylenedioxymethamphetamine (MDMA), including its salts,
isomers, and salts of isomers, or any mixture containing such substances, shall be
guilty of a felony, which felony shall be known as "trafficking in MDADMA." If
the quantity of the substance or mixture involved:
a.
Is 100 or more tablets, capsules, or other dosage units, but less than 500
tablets, capsules, or other dosage units, or 28 grams or more, but less than 200
grams, the person shall be punished as a Class G felon and shall be sentenced to a
minimum term of 35 months and a maximum term of 51 months in the State's
prison and shall be fined not less than twenty-five thousand dollars ($25,000);
b.
Is 500 or more tablets, capsules, or other dosage units, but less than 1,000
tablets, capsules, or other dosage units, or 200 grams or more, but less than 400
grams, the person shall be punished as a Class F felon and shall be sentenced to a
prison and shall be fined not less than fifty thousand dollars ($50,000);
c.
Is 1,000 or more tablets, capsules, or other dosage units, or 400 grams or
more, the person shall be punished as a Class D felon and shall be sentenced to a
prison and shall be fined not less than two hundred fifty thousand dollars
($250,000).
(5)
Except as provided in this subdivision, a person being sentenced under this
subsection may not receive a suspended sentence or be placed on probation. The
sentencing judge may reduce the fine, or impose a prison term less than the
applicable minimum prison term provided by this subsection, or suspend the prison
term imposed and place a person on probation when such person has, to the best of
his knowledge, provided substantial assistance in the identification, arrest, or
conviction of any accomplices, accessories, co-conspirators, or principals if the
sentencing judge enters in the record a finding that the person to be sentenced has
rendered such substantial assistance.
(6)
Sentences imposed pursuant to this subsection shall run consecutively
with and shall commence at the expiration of any sentence being served by the
person sentenced hereunder.
(i)
The penalties provided in subsection (h) of this section shall also apply to
any person who is convicted of conspiracy to commit any of the offenses described
in subsection (h) of this section. (1971, c. 919, s. 1; 1973, c. 654, s. 1; c. 1078; c.
1358, s. 10; 1975, c. 360, s. 2; 1977, c. 862, ss. 1, 2; 1979, c. 760, s. 5; 1979, 2nd
Sess., c. 1251, ss. 4-7; 1983, c. 18; c. 294, s. 6; c. 414; 1985, c. 569, s. 1; c. 675, ss.
1, 2; 1987, c. 90; c. 105, ss. 4, 5; c. 640, ss. 1, 2; c. 783, s. 4; 1989, c. 641; c. 672; c.
90
690; c. 770, s. 68; 1989 (Reg. Sess., 1990), c. 1024, s. 17; c. 1039, s. 5; c. 1081, s. 2;
1991, c. 484, s. 1; 1993, c. 538, s. 30; c. 539, s. 1358.1; 1994, Ex. Sess., c. 11, s. 1;
c. 14, ss. 46, 47; c. 24, s. 14(b); 1996, 2nd Ex. Sess., c. 18, s. 20.13(c); 1997-304, ss.
1, 2; 1997-443, s. 19.25(b), (u), (ii); 1998-212, s. 17.16(e); 1999-165, s. 4; 1999370, s. 1; 2000-140, s. 92.2(d); 2001-307, s. 1; 2001-332, s. 1; 2004-178, ss. 3, 4, 5,
6; 2007-375, s. 1; 2009-463, ss. 1, 2; 2009-473, s. 7; 2011-12, ss. 2-4, 6-8; 2011-19,
s. 5; 2012-188, s. 5; 2013-124, s. 1; 2013-171, ss. 7, 8; 2014-115, s. 41(a); 2015-32,
s. 1; 2015-173, s. 4.)
90-113.22. If any person shall commit the crime, he shall be charged as a Class I
Misdemeanor.
Section 2. This Act is effective upon three (3) days from ratification.
NORTH CAROLINA
STUDENT LEGISLATURE
91
Senate
Bills
LT. GOVERNOR ----------------------------Johnathan Lesnik
PRESIDENT PRO-TEM-----------------------Andre Jefferies

79TH ANNUAL SESSION
NCSL SB 001
92
Short Title: Alcohol Privatization Act

House Sponsor:
Senate Sponsor: Andre Jefferies, President Pro Tempore
Referred To: Transportation
A BILL TO BE ENACTED
AN ACT TO UPDATE THE PRODUCTION, SALE, CONSUMPTION, AND
POSSESSION OF ALCOHOLIC BEVERAGES IN NORTH CAROLINA
Section 1: G.S. 18B-100-209 reads as rewritten:
This Chapter is intended to establish a uniform system of control over regulate private
industry over the sale, purchase, transportation, manufacture, consumption, and possession of
alcoholic beverages in North Carolina, and to provide procedures to insure the proper
administration of the ABC alcohol laws under a uniform system throughout the State. This
Chapter shall be liberally construed to the end that the sale, purchase, transportation,
manufacture, consumption, and possession of alcoholic beverages shall be prohibited except as
authorized in this Chapter.
Except as provided in this Chapter, local ordinances establishing different rules on the
manufacture, sale, purchase, transportation, possession, consumption, or other use of alcoholic
beverages, or requiring additional permits or fees, are prohibited. (1937, c. 49, s. 1; 1971, c. 872,
s. 1; 1981, c. 412, s. 2.)
Section 2: G.S. 18B-102 reads as rewritten:
18B-102. Manufacture, sale, etc., forbidden except as expressly authorized.
(a)
General Prohibition. - It shall be unlawful for any person or private company to
manufacture, sell, transport, import, deliver, furnish, purchase, consume, or possess any alcoholic
beverages except as authorized by the ABC law.
(b)
Violation a Class 1 Misdemeanor. - Unless a different punishment is otherwise
expressly stated, any person who violates if it is a business then the NC ALE agency can take the
state issued liquor licenses for noncompliance. In addition the court may impose the provisions
of G.S. 18B-202 and of G.S. 18B-503, 18B-504, and 18B-505. (1923, c. 1, s. 1; C.S., s. 3411(a);
1937, c. 49, s. 24; c. 411; 1939, c. 158, s. 501; 1941, c. 339, ss. 1, 3, 4; 1945, c. 780; c. 903, ss. 1,
3, 10; 1971, c. 872, s. 1; 1973, c. 476, s. 193; c. 1014; 1975, c. 329; c. 411, s. 2; 1977, 2nd Sess.,
c. 1138, s. 1; 1979, c. 683, s. 1; 1981, c. 412, s. 2; 1989, c. 800, s. 1; 1993, c. 539, s. 310; 1994,
Ex. Sess., c. 14, s. 29; c. 24, s. 14(c).)
18B-304. Sale and possession for sale.
93
(a)
Offense. It shall be unlawful for any person or private company to sell any
alcoholic beverage, or possess any alcoholic beverage for sale, without first obtaining the
applicable ABC permit and revenue licenses.
(b) Prima Facie Evidence. Possession of the following amounts of alcoholic beverages,
without a permit authorizing that possession, shall be prima facie evidence that the possessor is
possessing those alcoholic beverages for sale:
(1) More than 80 liters of malt beverages, other than draft malt beverages in
kegs;
(2) More than eight liters of spirituous liquor; or
(3) Any amount of nontaxpaid alcoholic beverages. (1913, c. 44, s. 2; 1915, c. 97,
s. 8; 1923, c. 1, ss. 2, 6, 10; C.S., ss. 3379, 3411(b), (f), (j); 1937, c. 49, ss. 13,
15; 1945, c. 635; 1949, c. 1251, s. 2; 1951, c. 850; 1955, c. 560; 1957, c. 984; c.
1235, s. 1; 1963, c. 932; 1967, c. 222, ss. 4, 6; 1969, c. 789; 1971, c. 872, s. 1;
1975, c. 654, s. 4; 1977, c. 176, ss. 1-3; 1981, c. 412, s. 2; c. 747, s. 42; 1989, c.
553, s. 2; 1993, c. 508, s. 3.)
18B-200. North Carolina Alcoholic Beverage Control Commission.
(a)
Creation of Commission; compensation. The North Carolina Alcoholic Beverage
Control Commission is created to consist of a chairman and two associate members. The
Commission shall be administratively located within the Department of Public Safety but shall
exercise its powers independently of the Secretary of Public Safety. The chairman shall devote his
full time to his official duties and receive a salary fixed by the General Assembly in the Current
Operations Appropriations Act. The associate members shall be compensated for per diem,
subsistence and travel as provided in Chapter 138 of the General Statutes.
(b)
Appointment of Members. Members of the Commission shall be appointed by the
Governor to serve at his pleasure.
(c)
Vacancy. The Governor shall fill any vacancy on the Commission by appointing a
successor to serve at the Governor's pleasure. If the chairman's seat becomes vacant, the
Governor may designate either the new member or an existing member of the Commission as the
chairman.
(d)
Employees. The Commission may authorize the chairman to employ, discharge, and
otherwise supervise subordinate personnel of the Commission.
The Commission shall appoint at least one employee to make investigations, hold hearings
requested under G.S. 18B-1205, and represent the Commission in contested case hearings or
perform any other duties authorized by Chapter 150B. (1937, c. 49, ss. 2, 3; c. 411; 1939, c. 185,
s. 5; 1941, c. 107, s. 5; 1963, c. 916, s. 1; 1965, c. 1102, ss. 1, 2; 1969, c. 294, ss. 1, 2; 1971, c.
872, s. 1; 1979, c. 336; 1981, c. 412, s. 2; 1983, c. 717, s. 4; 1983 (Reg. Sess., 1984), c. 1034, s.
164; 1987, c. 827, s. 1; 1993, c. 415, s. 3; 2014-100, s. 15.2A(d).)
18B-201. Conflict of interest; gifts.
(a)
Financial Interests Restricted. No person shall be appointed to or employed by the
Commission, a local board, or the ALE Branch if that person or a member of that person's family
94
related to that person by blood or marriage to the first degree has or controls, directly or
indirectly, a financial interest in any commercial alcoholic beverage enterprise, including any
business required to have an ABC permit. The Commission may exempt from this provision any
person, other than a Commission member, when the financial interest in question is so
insignificant or remote that it is unlikely to affect the person's official actions in any way.
Exemptions may be granted only to individuals, not to groups or classes of people, and each
exemption shall be in writing, be available for public inspection, and contain a statement of the
financial interest in question.
(b)
Self-dealing. The provisions of G.S. 14-234 shall apply to the Commission and local
boards.
(c)
Dealing for Family Members. Neither the Commission nor any local board shall
contract or otherwise deal in any business matter so that a member, member's spouse or any
person related to the member by blood to a degree of first cousin or closer in any way financially
benefits, directly or indirectly, from the transaction unless:
(1) The member who financially benefits from the transaction or whose spouse or relative
financially benefits from the transaction abstains from participating in any way, including voting,
in the decision;
(2) The minutes of the meeting at which the final decision is reached specifically note the
member who is financially benefited or whose spouse or relative is financially benefited and the
amount involved in each transaction;
(3) The next annual audit of the Commission or local board specifically notes the member
and the amount involved in each transaction occurring during the year covered by the audit; and
(4) If the transaction is by a local board, the Commission is notified at least two weeks
before final board approval of the transaction.
(d)
Gifts Generally. The provisions of G.S. 133-32 shall apply to the Commission and local
boards.
(e)
Conflicts of Interest for the Commission. The provisions of Article 4 of Chapter 138A
of the General Statutes shall apply to the Commission.
(f) Conflicts of Interest for Local Boards. Except as permitted under subsection (h) of this
section, a local ABC board member shall not knowingly use the local ABC board member's
position on the board in any way that will result in financial benefit to the local ABC board
member, the local ABC board member's spouse, any person related to the local ABC board
member by blood to a degree of first cousin or closer, or any business with which the local ABC
board member is associated.
(g)
For purposes of subsection (f) of this section, "business with which associated" shall have
the same meaning as in G.S. 138A-3(3). For purposes of this section, "financial benefit" shall
mean a direct pecuniary gain or loss, or a direct pecuniary loss to a business competitor.
(h)
Notwithstanding subsection (f) of this section, a local ABC board member may
participate in an action of the local ABC board under any of the following circumstances except
as specifically limited:
95
(1) The financial benefit that accrues to the local ABC board member, the local ABC
board member's spouse or any person related to the local ABC board member by blood to a
degree of first cousin or closer, or a business with which the local ABC board member is
associated is one that is accrued as a member of a profession, occupation, or general class and is
no greater than that which could reasonably be foreseen to accrue to all members of that
profession, occupation, or general class.
(2) The financial benefit derived by a local ABC board member, the local ABC board
member's spouse or any person related to the local ABC board member by blood to a degree of
first cousin or closer, or a business with which the local ABC board member is associated is one
that would be enjoyed to an extent no greater than that which other citizens of the State would or
could enjoy.
(3) The financial benefit derived by a local ABC board member, the local ABC board
member's spouse or any person related to the local ABC board member by blood to a degree of
first cousin or closer, or a business with which the local ABC board member is so remote,
tenuous, insignificant, or speculative that a reasonable person would conclude under the
circumstances that the local ABC board member's ability to protect the public interest and
perform the local ABC board member's duties would not be compromised.
(4) When an action affects or would affect the local ABC board member's compensation
as a local ABC board member.
(5) Before the local ABC board member participated in the action, the board member
requested and received from the ABC Commission a written advisory opinion that authorized the
participation. In authorizing the participation under this subdivision, the ABC Commission shall
consider the need for the local ABC board member's particular contribution, such as special
knowledge of the subject matter and the effective functioning of the local ABC board.
(6) When action is ministerial only and does not require the exercise of discretion.
(7) When the local ABC board records in its minutes that it cannot obtain a quorum in
order to take the action because the local ABC board member is disqualified from acting, the
local ABC board member may be counted for purposes of a quorum but shall otherwise abstain
from taking any further action.
(i)
Nothing in this section shall allow participation in an action prohibited by G.S. 14-234 or
G.S. 133-32.
(j)
A local board member shall not improperly use or improperly disclose any confidential
information.
(k)
A local board member shall have an affirmative duty to promptly disclose in writing to
the local board any conflict of interest or potential conflict of interest. (1981, c. 412, s. 2; 1993, c.
415, s. 4; 2010-122, s. 2; 2011-145, s. 19.1(q); 2014-100, s. 17.1(xxx).)
18B-202. Discharge upon conviction.
In addition to imposing any other penalty authorized by law, a judge may remove from office or
discharge from employment any Commission or local board member or employee, or any ALE
agent, who is convicted of a violation of any provision of this Chapter or of any felony and may
declare that person ineligible for membership or employment with the Commission, any local
96
board, or the ALE Branch, for a period of not longer than three years. Conviction of a crime
under this Chapter or of any felony shall also be grounds for the Commission to remove from
office or discharge from employment any local board member or employee. In addition to
imposing any other penalty authorized by law, a judge may prohibit an individual convicted of a
violation of this Chapter, or of any felony, from participating in any contract to enforce the ABC
laws for a local board if that individual is a designated officer of an agency which holds a contract
to enforce the ABC laws for a local board. A judge may also prohibit an individual convicted of a
violation of this Chapter, or of any felony, from being designated as an officer that enforces the
ABC law under a contract with any local board for a period of not longer than three years. (1981,
c. 412, s. 2; 2010-122, s. 3; 2011-145, s. 19.1(q); 2014-100, s. 17.1(xxx).)
18B-203. Powers and duties of the Commission.
(a)
Powers. The Commission shall have authority to:

(1) Administer the ABC laws;
(2) Provide for enforcement of the ABC laws, in conjunction with the ALE Branch;
(3) Set the prices of alcoholic beverages sold in local ABC stores as provided in Article 8;
(4) Require reports and audits from local boards as provided in G.S. 18B-205;
(5) Determine what brands of alcoholic beverages may be sold in this State;
(6) Contract for State ABC warehousing, as provided in G.S. 18B-204;
(7) Dispose of damaged alcoholic beverages, as provided in G.S. 18B-806;
(8) Remove for cause any member or employee of a local board;
(9) Supervise or disapprove purchasing by any local board and inspect all records of
purchases by local boards;
(10) Approve or disapprove rules adopted by any local board;
(11) Approve or disapprove the opening and location of ABC stores, as provided in
Article 8;
(12) Issue ABC permits, and impose sanctions against permittees;
(13) Provide for the testing of alcoholic beverages, as provided in G.S. 18B-206;
(14) Fix the amount of bailment charges and bailment surcharges to be assessed on liquor
shipped from a Commission warehouse;
(15) Collect bailment charges and bailment surcharges from local boards;
(16) Notwithstanding any law to the contrary, enter into contracts for design and
construction of a warehouse or warehouses and supervise work and materials used in the
construction, as provided in G.S. 18B-204;
(17) Provide for the distribution of spirituous liquor to installations of the Armed Forces
of the United States within this State for resale on the installation and to the Eastern Band
97
of Cherokee Indians for resale on Indian Country lands within this State under the
jurisdiction of the Eastern Band of Cherokee Indians.
(18) Provide for the distribution and posting of warning signs to local ABC boards
regarding the dangers of alcohol consumption during pregnancy as required under G.S.
18B-808;
(19) Recognize the holder of a wine importer permit or nonresident wine vendor permit
as a primary American source of supply for the wine of a winery. To be considered a
primary American source of supply, a wine importer must establish that it has lawfully
purchased the wine from the winery, or from an agent of the winery, and by written
contract or otherwise has been authorized by the winery to distribute the wine to
wholesalers in the United States.
(20) Promulgate rules to establish performance standards for local boards. Performance
standards established pursuant to this subdivision shall include, but not be limited to,
standards that address enforcement of ABC laws, store appearance, operating efficiency,
solvency, and customer service.
(21) Promulgate rules to establish mandatory training requirements for local board
members, finance officers, and general managers. If personal attendance is required, the
Commission shall not require more than four hours of training and shall provide up to
two hours of training at convenient locations around the State in conjunction with ethics
training.
(22) Provide for the purchase of spirituous liquor from another ABC board by mixed
beverage permittees when an ABC system becomes insolvent, closes, or is closed by the
Commission and the county or municipality in which the system is located has approved
the sale of mixed beverages.
(b)
Implied Powers. The Commission shall have all other powers which may be reasonably
implied from the granting of the express powers stated in subsection (a), or which may be
incidental to, or convenient for, performing the duties given to the Commission. (1937, NC
General Statutes - Chapter 18B Article 2 5 c. 49, s. 4; cc. 237, 411; 1945, c. 954; 1949, c. 974, s.
9; 1961, c. 956; 1963, c. 426, s. 12; c. 916, s. 2; c. 1119, s. 1; 1965, c. 1063; c. 1102, s. 3; 1967, c.
222, s. 2; c. 1240, s. 1; 1971, c. 872, s. 1; 1973, c. 28; c. 473, s. 1; c. 476, s. 133; c. 606; c. 1288,
s. 1; cc. 1369, 1396; 1975, cc. 240, 453, 640; 1977, c. 70, ss. 15.1, 15.2, 16; c. 176, ss. 2, 6; 1977,
2nd Sess., c. 1138, ss. 3, 4, 18; 1979, c. 384, s. 1; c. 445, s. 5; c. 482; c. 801, s. 4; 1981, c. 412, s.
2; c. 747, s. 38; 1981 (Reg. Sess., 1982), c. 1285, s. 2; 1987, c. 136, s. 1; 2003-339, s. 1; 2006227, s. 10; 2010-122, s. 4; 2011-145, s. 19.1(q); 2011-183, s. 20; 2011-333, s. 2; 2014-100, s.
17.1(xxx).)
18B-204. State warehouse.
(a)
Contracting for Private Warehouse. The Commission shall provide for the receipt,
storage, and distribution of spirituous liquor by one of the following methods:
(1) By negotiated contract with a privately owned warehouse;
(2) By negotiated contract with privately owned warehouses in several regions of the
State. The Commission shall choose locations for the warehouses to promote efficient
98
distribution of spirituous liquor to all local boards, to maintain control of that liquor, and
to insure the Commission's supervision of warehousing procedures; or
(3) By the construction of a warehouse, and by contracting for receipt, storage and
distribution of spirituous liquor by an independent contractor, by negotiated contract or by the use
of procedures for purchase and contract by State agencies, for the operation of that warehouse.
(b)
Audits and Inspections. Contracts entered into pursuant to this section shall provide the
following:
(1) That an annual audited financial statement be prepared and submitted to the
Commission by the person contracting with the Commission;
(2) That all warehouse records be available for inspection at all times by the Commission
and the Department of Revenue; and
(3) That all warehouse accounts relating to the receipt, storage, or distribution of
spirituous liquor be subject to audit by the State Auditor.
(c)
Emergency or Temporary Operation. If the independent operator of a warehouse
changes, or if some other occurrence results in substantially impeded distribution of spirituous
liquor from a warehouse, the Commission may operate that warehouse on an interim emergency
or temporary basis.
(d)
Rules. The Commission may adopt rules regarding warehouse operations, and
violations of those rules by a party with whom the Commission contracts shall be grounds for
termination by the Commission of a contract entered into under this section. (1937, c. 49, s. 4; cc.
237, 411; 1945, c. 954; 1949, c. 974, s. 9; 1961, c. 956; 1963, c. 426, s. 12; c. 916, s. 2; c. 1119, s.
1; 1965, c. 1063; c. 1102, s. 3; 1967, c. 222, s. 2; c. 1240, s. 1; 1971, c. 872, s. 1; 1973, c. 28; c.
473, s. 1; c. 476, s. 133; c. 606; c. 1288, s. 1; cc. 1369, 1396; 1975, cc. 240, 453, 640; 1977, c. 70,
ss. 15.1, 15.2, 16; c. 176, ss. 2, 6; 1977, 2nd Sess., c. 1138, ss. 3, 4, 18; 1979, c. 384, s. 1; c. 445,
s. 5; c. 482; c. 801, s. 4; 1981, c. 412, s. 2; 1981 (Reg. Sess., 1982), c. 1285, s. 3; 1987, c. 136, s.
2.)
18B-205. Accounts and reports required.
(a)
Accounts and Reports. The Commission may require local boards to submit quarterly
mixed beverage reports, quarterly and annual audits, monthly sales records, and any other reports
or audits relating to the operations of the local ABC systems.
(b)
Accounting System. The Commission may require local boards to use generally
accepted accounting standards and a chart of accounts prescribed by the Commission in the
operation of ABC stores, and to record all information necessary and useful to the Commission in
auditing the operation of ABC systems and administering the ABC law.
(c)
Audits. The Commission may audit the operation of any local ABC store or board, and
the books of those stores and boards shall remain open to the Commission for inspection. (1937,
c. 49, s. 4; cc. 237, 411; 1945, c. 954; 1949, c. 974, s. 9; 1961, c. 956; 1963, c. 426, s. 12; c. 916,
s. 2; c. 1119, s. 1; 1965, c. 1063; c. 1102, s. 3; 1967, c. 222, s. 2; c. 1240, s. 1; 1971, c. 872, s. 1;
1973, c. 28; c. 473, s. 1; c. 476, s. 133; c. 606; c. 1288, s. 1; cc. 1369, 1396; 1975, cc. 240, 453,
640; 1977, c. 70, ss. 15.1, 15.2, 16; c. 176, ss. 2, 6; 1977, 2nd Sess., c. 1138, ss. 3, 4, 18; 1979, c.
384, s. 1; c. 445, s. 5; c. 482; c. 801, s. 4; 1981, c. 412, s. 2.)
99
18B-206. Standards for alcoholic beverages.

(a)
Authority to Set Standards. The Commission may set standards and adopt rules for malt
beverages, unfortified wine, fortified wine, and spirituous liquor to protect the public against
beverages containing harmful or impure substances, beverages containing an improper balance of
substances as determined by the Commission, spurious or imitation beverages, and beverages
unfit for human consumption. In setting standards and in issuing rules relating to them, the
Commission may follow federal guidelines for standards of identity, labeling and advertising
contained in Title 27 of the Code of Federal Regulations, or may adopt more restrictive standards.
(b)
Effective Date of Standards. A person possessing alcoholic beverages which do not
meet a new standard set by the Commission shall have 60 days after the effective date of the
standard to sell or otherwise dispose of those alcoholic beverages.
(c)
Testing. The Commission may test malt beverages, unfortified wine, fortified wine, and
spirituous liquor possessed or offered for sale in this State to determine whether they meet the
standards set by the Commission. If the Commission chooses to test an alcoholic beverage, that
test may be performed by the Commission, the Commission may arrange for the State Chemist to
perform the testing, or the Commission may have the testing performed in some other manner.
The manufacturer of tested alcoholic beverages shall pay the costs of the test. In lieu of testing an
alcoholic beverage, the Commission may rely on testing by a federal agency or an agency of
another state or may accept test results from a federal agency, an agency of another state, or the
manufacturer of the alcoholic beverage or his authorized agent. A manufacturer who submits test
results shall also submit a fee of ten dollars ($10.00) for each test result to cover administrative
costs. (1939, c. 158, s. 514; 1943, c. 400, s. 6; 1949, c. 974, s. 14; 1953, c. 1207, ss. 2-4; 1957, c.
1440; 1963, c. 426, ss. 4, 5; 1971, c. 872, s. 1; 1977, c. 70, s. 20.4; 1981, c. 412, s. 2.)
18B-207. Rules.
The Commission shall have authority to adopt, amend, and repeal rules to carry out the provisions
of this Chapter. Those rules shall become effective when adopted and filed pursuant to the
provisions of Chapter 150B of the General Statutes. (1937, c. 49, s. 4; cc. 237, 411; 1945, NC
General Statutes - Chapter 18B Article 2 7 c. 954; 1949, c. 974, s. 9; 1961, c. 956; 1963, c. 426, s.
12; c. 916, s. 2; c. 1119, s. 1; 1965, c. 1063; c. 1102, s. 3; 1967, c. 222, s. 2; c. 1240, s. 1; 1971, c.
872, s. 1; 1973, c. 28; c. 473, s. 1; c. 476, s. 133; c. 606; c. 1288, s. 1; cc. 1369, 1396; 1975, cc.
240, 453, 640; 1977, c. 70, ss. 15.1, 15.2, 16; c. 176, ss. 2, 6; 1977, 2nd Sess., c. 1138, ss. 3, 4, 18;
1979, c. 384, s. 1; c. 445, s. 5; c. 482; c. 801, s. 4; 1981, c. 412, s. 2; 1987, c. 827, s.1.)
18B-208. ABC Commission bonds and funds.
(a)
Issuance of Bonds. As a means of raising the funds needed from time to time in the
design, acquisition, construction, equipping, maintenance and operation of a warehouse under
G.S. 18B-204(a)(3), the Commission may, with the approval of the Governor, at one time or from
time to time issue negotiable revenue bonds of the Commission. The issuance of revenue bonds
shall not directly or indirectly or contingently obligate the State to levy or to pledge any form of
taxation or to make any appropriation for their payment. Revenue bonds issued pursuant to this
subsection shall be repaid from the bailment surcharge as provided in subsection (b). These bonds
and the income from them are exempt from all taxation within the State.
100
(b)
Special Fund. A special fund in the office of the State Treasurer, the ABC Commission
Fund, is created. On and after November 1, 1982, all moneys derived from the collection of
bailment charges and bailment surcharges shall be deposited in the ABC Commission Fund for
the purpose of carrying out the provisions of this Chapter. The ABC Commission Fund shall be
subject to the provisions of the State Budget Act except that no unexpended surplus of this fund
shall revert to the General Fund. The Commission shall fix the level of the bailment surcharges at
an amount calculated to cover operating expenses of the Commission and the retirement of bonds
issued for construction of a Commission warehouse and offices. Upon payment of the bonds
issued pursuant to this section, the Commission shall reduce the bailment surcharge to an amount
no greater than necessary to pay operating expenses of the Commission as authorized by the
General Assembly. All moneys credited to the ABC Commission Fund shall be used to carry out
the intent and purposes of the ABC law in accordance with plans approved by the North Carolina
ABC Commission and the Director of the Budget. The moneys in the Fund shall be expended
only upon an appropriation by an act of the General Assembly. (1981 (Reg. Sess., 1982), c. 1285,
s. 4; 1983, c. 761, s. 133; 1987, c. 832, s. 1; 1989, c. 800 s. 6; 2006-203, s. 13; 2014-100, s. 15.1.)
18B-209 through 18B-299. Reserved for future codification purposes.
Section 3: G.S. 18B-501 reads as rewritten:
18B-501. Local ABC officers.
(a)
Appointment. Except as provided in subsection (f), each local board shall hire one or
more ABC enforcement officers. Local ABC enforcement officers shall be designated as "ABC
Officers". The local board may designate one officer as the chief ABC officer for that board.
(b)
Subject Matter Jurisdiction. After taking the oath prescribed for a peace officer, a local
ABC officer may arrest and take other investigatory and enforcement actions for any criminal
offense; however, the primary responsibility of a local ABC officer is enforcement of the ABC
laws and Article 5 of Chapter 90 (The Controlled Substances Act).
(c)
Territorial Jurisdiction. A local ABC officer has jurisdiction anywhere in the county in
which he is employed except that a city ABC officer's territorial jurisdiction is subject to any
limitation included in any local act governing that city ABC system. A local ABC officer may
pursue outside his normal territorial jurisdiction anyone who commits an offense within that
jurisdiction, as provided in G.S. 15A-402(d).
(d)
Assisting Other Local Agencies. The local ABC officers employed by a local board
shall constitute a "law-enforcement agency" for purposes of G.S. 160A-288, and a local board
shall have the same authority as a city or county governing body to approve cooperation between
law-enforcement agencies under that section.
(e)
Assisting State and Federal Enforcement. A local ABC officer may assist State and
federal law-enforcement agencies in the investigation of criminal offenses in North Carolina,
under the following conditions:
(1) The local board employing the officer has adopted a resolution approving such
assistance and stating the conditions under which it may be provided;
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(2) The State or federal agency has made a written request for assistance from that local
board, either for a particular investigation or for any investigation that might require assistance
within a certain period of time;
(3) The local ABC officer is supervised by someone in the requesting agency; and
(4) As soon as practical after the assistance begins, an acknowledgement of the action is
placed in the records of the local board.
A local ABC officer shall have territorial jurisdiction throughout North Carolina while
assisting a State or federal agency under this section. While providing that assistance the officer
shall continue to be considered an employee of the local board for purposes of salary, worker's
compensation, and other benefits, unless a different arrangement is negotiated between the local
board and the requesting agency.
(f)
Contracts with Other Agencies. Instead of hiring local ABC officers, a local board may
contract to pay its enforcement funds to a sheriff's department, city police department, or other
local law-enforcement agency for enforcement of the ABC laws within the law-enforcement
agency's territorial jurisdiction. Enforcement agreements may be made with more than one
agency at the same time. When such a contract for enforcement exists, the designated officers of
the contracting law-enforcement agency shall have the same authority to inspect under G.S. 18B502 that an ABC officer employed by that local board would have. An agency contracted to
provide ABC law enforcement shall designate no more than five officers to conduct inspections
pursuant to this section and G.S. 18B-502. If a city located in two or more counties approves the
sale of some type of alcoholic beverage pursuant to the provisions of G.S. 18B-600(e4), and there
are no local ABC boards established in the city and one of the counties in which the city is
located, the local ABC board of any county in which the city is located may enter into an
enforcement agreement with the city's police department for G.S. 18B-501 Page 2 enforcement of
the ABC laws within the entire city, including that portion of the city located in the county of the
ABC board entering into the enforcement agreement.
(f1)
Accountability; Enforcement Reports. To ensure accountability to the appointing
authority and the Commission, every local board's ABC officers and those law enforcement
agencies subject to an enforcement agreement entered into pursuant to subsection (f) of this
section shall report to the local board, by the fifth business day of each month, on a form
developed by the Commission, the following:
(1) The number of arrests made for ABC law, Controlled Substance Act, or other
violations, by category, at ABC permitted outlets.
(2) The number of arrests made for ABC law, Controlled Substance Act, or other
violations, by category, at other locations.
(3) The number of agencies assisted with ABC law or controlled substance related
matters.
(4) The number of alcohol education and responsible server programs presented.
The local board shall submit a copy of the enforcement report to the appointing authority and the
Commission not later than five business days after receipt of the enforcement report by the local
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board. The Commission shall publish this information, by local board and enforcement agency,
on a public Internet Web site maintained by the Commission.
(g)
Discharge. Local ABC officers and the designated officers of agencies which contract
with local boards for enforcement of the ABC laws are subject to the discharge and ineligibility
provisions of G.S. 18B-202. (1949, c. 1251, s. 4; 1961, c. 645; 1963, c. 426, s. 2; 1967, c. 868;
1971, c. 872, s. 1; 1973, c. 29; 1977, c. 908; 1981, c. 412, s. 2; 1993, c. 193, s. 2; 1995, c. 466, ss.
3, 4; 2010-122, ss. 5, 6, 7(a).)
Section 4: G.S. 18B-700 706 reads as rewritten:
18B-700. Appointment and organization of local ABC boards.
(a)
Membership. A local ABC board shall consist of three or five members appointed for
three-year terms unless the board is a board for a merged ABC system under G.S. 18B-703 and a
different size membership has been provided for as part of the negotiated merger. If the board is a
three-member board, one member of the initial board of a newly created ABC system shall be
appointed for a three-year term, one member for a two-year term, and one member for a one-year
term. If the board is a five-member board, one member of the initial board of a newly created
ABC system shall be appointed for a three-year term, two members for two-year terms, and two
members for one-year terms. As the terms of initial board members expire, their successors shall
each be appointed for three-year terms. If a board is initially a three-member board and the
appointing authority determines a five-member board is preferable, the terms of the two new
members shall be for three years. If a local board has five members and the appointing authority
determines a three-member board is preferable, the appointing authority shall not reduce the size
of the board except upon the expiration of a member's term and only with the approval of the
Commission. The appointing authority shall designate one member of the local board as
chairman.
(a1)
Mission. The mission of local ABC boards and their employees shall be to serve their
localities responsibly by controlling the sale of spirituous liquor and promoting customer-friendly,
modern, and efficient stores.
(b)
City Boards. City ABC board members shall be appointed by the city governing body,
unless a different method of appointment is provided in a local act enacted before the effective
date of this Chapter. (c) County Boards. County ABC board members shall be appointed by the
board of county commissioners, unless a different method of appointment is provided in a local
act enacted before the effective date of this Chapter.
(d)
Qualifications. The appointing authority shall appoint members of a local board on the
basis of the appointees' interest in public affairs, good judgment, knowledge, ability, and good
moral character.
(e)
Vacancy. A vacancy on a local board shall be filled by the appointing authority for the
remainder of the unexpired term. If the chairman's seat becomes vacant, the appointing authority
may designate either the new member or an existing member of the local board to complete the
chairman's term.
(f)
Removal. A member of a local board may be removed for cause at any time by the
appointing authority. Local board members are subject to the removal provisions of G.S. 18B202.
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(g)
Compensation of Board Members. A local board member shall receive compensation in
an amount not to exceed one hundred fifty dollars ($150.00) per board meeting unless a different
level of monetary compensation is approved by the appointing authority. If a different level is
approved by the appointing authority, the appointing authority shall notify the Commission of the
approved level of compensation in writing. Any change in compensation approved by the
appointing authority shall be reported to the Commission in writing within 30 days of the
effective date of the change. No local board member shall receive any nonmonetary
compensation or benefits unless specifically authorized by this section.
(g1)
Compensation of General Managers of Local Boards. The salary authorized for the
general manager, as defined in G.S. 18B-101, of a local board shall not exceed the salary
authorized by the General Assembly for the clerk of superior court of the county in which the
appointing authority was originally incorporated unless such compensation is otherwise approved
by the appointing authority. The local board shall provide the appointing authority's written
confirmation of such approval to the Commission. Any change in compensation approved by the
appointing authority shall be reported to the Commission in writing within 30 days of the
effective date of the change. The general manager of a local board may receive any other benefits
to which all employees of the local board are entitled. The salary authorized for other employees
of a local board may not exceed that of the general manager.
(g2)
Travel Allowance and Per Diem Rates. Approved travel on official business by the
members and employees of local boards shall be reimbursed pursuant to G.S. 138-6 unless the
local board adopts a travel policy that conforms to the travel policy of the appointing authority
and such policy is approved by the appointing authority. The local board shall annually provide
the appointing authority's written confirmation of such approval to the Commission and a copy of
the travel policy authorized by the appointing authority. Any excess expenses not covered by the
local board's travel policy shall only be paid with the written authorization of the appointing
authority's finance officer. A copy of the written authorization for excess expenses shall be
submitted to the Commission by the local board within 30 days of approval.
(h)
Conflict of Interest. The provisions of G.S. 18B-201 shall apply to local board members
and employees.
(i)
Bond. Each local board member and the employees designated as the general manager
and finance officer of the local board shall be bonded in an amount not less than fifty thousand
dollars ($50,000) secured by a corporate surety, for the faithful performance of his duties. A
public employees' blanket position bond in the required amount satisfies the requirements of this
subsection. The bond shall be payable to the local board and shall be approved by the appointing
authority for the local board. The appointing authority may increase the amount of the bond
required for any member or employee who handles board funds.
(j)
Limited Liability. A person serving as a member of a local ABC board shall be immune
individually from civil liability for monetary damages, except to the extent covered by insurance,
for any act or failure to act arising out of this service, except where the person:
(1) Was not acting within the scope of his official duties;
(2) Was not acting in good faith;
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(3) Committed gross negligence or willful or wanton misconduct that resulted in the
damage or injury;
(4) Derived an improper personal financial benefit from the transaction; or
(5) Incurred the liability from the operation of a motor vehicle. The immunity in this
subsection is personal to the members of local ABC boards, and does not immunize the local
ABC board for liability for the acts or omissions of the members of the local ABC board.
(k)
Nepotism. Members of an immediate family shall not be employed within the local
board if such employment will result in one member of the immediate family supervising another
member of the immediate family, or if one member of the immediate family will occupy a
position which has influence over another member's employment, promotion, salary
administration, or other related management or personnel considerations. This subsection applies
to local board members and employees.
For the purpose of this subsection, the term "immediate family" includes wife, husband,
mother, father, brother, sister, son, daughter, grandmother, grandfather, grandson, and
granddaughter. Also included are the step-, half-, and in-law relationships. It also includes other
people living in the same household, who share a relationship comparable to immediate family
members, if either occupies a position which requires influence over the other's employment,
promotion, salary administration, or other related management or personnel considerations.
(l) Local Acts. Notwithstanding the provisions of any local act, this section applies to all local
boards. (1981, c. 412, s. 2; c. 747, s. 50; 1981 (Reg. Sess., 1982), c. 1262, s. 10; 1989, c. 800, s.
19; 2010-122, ss. 9-16.)
18B-701. Powers and duties of local ABC boards.
(a)
Powers. A local board shall have authority to:
(1) Buy, sell, transport, and possess alcoholic beverages as necessary for the operation of
its ABC stores;
(2) Adopt rules for its ABC system, subject to the approval of the Commission;
(3) Hire and fire employees for the ABC system;
(4) Designate one employee as manager of the ABC system and determine his
responsibilities;
(5) Require bonds of employees as provided in the rules of the Commission;
(6) Operate ABC stores as provided in Article 8;
(7) Issue purchase-transportation permits as provided in Article 4;
(8) Employ local ABC officers or make other provision for enforcement of ABC laws as
provided in Article 5;
(9) Borrow money as provided in G.S. 18B-702;
(10) Buy and lease real and personal property, and receive property devised or given, as
necessary for the operation of the ABC system;
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(11) Invest surplus funds as provided in G.S. 18B-702;

(12) Dispose of property in the same manner as a city council may under Article 12 of
Chapter 160A of the General Statutes; and
(13) Perform any other activity authorized or required by the ABC law.
(b)
Duties. A local board shall have the duty to comply with all rules adopted by the
Commission pursuant to this Chapter and meet all standards for performance and training
established by the Commission pursuant to G.S. 18B-203(a)(20) and (21). Failure to comply with
Commission rules shall be cause for removal. (1937, c. 49, ss. 10, 12; cc. 411, 431; 1939, c. 98;
1957, cc. 1006, 1334; 1963, c. 1119, s. 2; 1967, c. 1178; 1969, cc. 118, 902; 1971, c. 872, s. 1;
1973, cc. 85, 185; c. 1000, ss. 1, 2; 1977, c. 618; 1979, c. 467, s. 20; c. 617; 1981, c. 412, s. 2;
2010-122, s. 17; 2011-284, s. 13.)
18B-702. Financial operations of local boards.
(a)
Generally. A local board may transact business as a corporate body, except as limited
by this section. A local board shall not be considered a public authority under G.S. 159-7(b)(10).
(b)
Budget Officer. The general manager of the local board shall be the budget officer for
the local board. In the absence of a general manager, a local board may impose the duties of
budget officer on the chairman or any member of the local board or any other employee of the
board.
(c)
Annual Balanced Budget. Each local board shall operate under an annual balanced
budget administered in accordance with this section. A budget is balanced when the sum of
estimated gross revenues and both restricted and unrestricted funds are equal to appropriations.
Expenditures shall not exceed the amount of funds received or in reserve for the purpose to which
the funds are appropriated. It is the intent of this section that all monies received and expended by
a local board should be included in the budget. Therefore, notwithstanding any other provision of
law, no local board may expend any monies, regardless of their source, except in accordance with
a budget adopted under this section. The budget of a local board shall cover a fiscal year
beginning July 1 and ending June 30.
(d)
Preparation and Submission of Budget and Budget Message. Upon receipt of the budget
requests and revenue estimates and the financial information supplied by the finance officer, the
budget officer shall prepare a budget for consideration by the local board in such form and detail
as may have been prescribed by the budget officer or the local board. The budget, together with a
budget message, shall be submitted to the local board, the appointing authority, and the
Commission not later than June 1. The budget and budget message should, but need not, be
submitted at a formal meeting of the board. The budget message should contain a concise
explanation of the goals fixed by the budget for the budget year, explain important features of the
activities anticipated in the budget, set forth the reasons for stated changes from the previous year
in appropriation levels, and explain any major changes in fiscal policy.
(e)
Filing and Publication of the Budget. On the same day the budget officer submits the
budget to the local board, the budget officer shall make a copy for public inspection, and it shall
remain available for public inspection until the budget is adopted. The budget officer shall make a
copy of the budget available to all news media in the county. The budget officer shall also publish
a statement that the budget has been submitted to the local board and is available for public
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inspection in the office of the general manager of the local board. The statement shall also give
notice of the time and place of the budget hearing required by subsection (f) of this section.
(f)
Budget Hearings. Before adopting the budget, the board shall hold a public hearing at
which time any persons who wish to be heard on the budget may appear.
(g)
Adoption of Budget. Not earlier than 10 days after the day the budget is presented to
the board and not later than July 1, the local board shall adopt a budget making appropriations for
the budget year in such sums as the board may consider sufficient and proper, whether greater or
less than the sums recommended in the budget. The budget shall authorize all financial
transactions of the local board. The budget may be in any form that the board considers most
efficient in enabling it to make the fiscal policy decisions embodied therein, but it shall make
appropriations by department, function, or project and show revenues by major source. The
following directions and limitations shall bind the local board in adopting the budget:
(1)
The full amount estimated by the finance officer to be required for debt service
during the budget year shall be appropriated.
(2)
The full amount of any deficit in each fund shall be appropriated.
(3)
Working capital funds set aside pursuant to G.S. 18B-805 shall be established by
rule of the Commission. "Working capital" means the total of cash, investments, and
inventory less all unsecured liabilities. Gross sales means gross receipts from the sale of
alcoholic beverages less distributions as defined in G.S. 18B-805(b)(2), (3), (4), and (5).
Any expenditure to be charged against working capital funds shall be authorized by
resolution of the local board, which resolution shall be deemed an amendment to the
budget setting up an appropriation for the object of expenditure authorized. The local
board may authorize the budget officer to authorize expenditures from working capital
funds subject to such limitations and procedures as it may prescribe. Any such
expenditure shall be deemed an amendment and reported to the board at its next regular
meeting and recorded in the minutes.
(4)
Estimated revenues shall include only those revenues reasonably expected to be
realized in the budget year.
(5)
Sufficient funds to meet the amounts to be paid during the fiscal year under
continuing contracts previously entered into shall be appropriated unless such contract
reserves to the local board the right to limit or not to make such appropriation.
(6)
The sum of estimated net revenues and appropriated fund balance in each fund
shall be equal to appropriations in that fund. Appropriated fund balance in a fund shall not exceed
the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred
revenues arising from cash receipts, as those figures stand at the close of the fiscal year next
preceding the budget year. The budget shall be entered in the minutes of the local board and
within five days after adoption, and copies thereof shall be filed with the finance officer, the
budget officer, the appointing authority, and the Commission.
(h)
Amendments to the Budget. Except as otherwise restricted by law, the local board may
amend the budget at any time after adoption, in any manner, so long as the budget, as amended,
continues to satisfy the requirements of this section. The local board by appropriate resolution
may authorize the budget officer to transfer monies from one appropriation to another within the
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same fund subject to such limitations and procedures as it may prescribe. Any such transfers shall
be reported to the local board at its next regular meeting and shall be entered in the minutes.
Amendments to the adopted budget shall also be provided to the appointing authority and the
Commission.
(i)
Interim Budget. In case the adoption of the budget is delayed until after July 1, the
local board shall make interim appropriations for the purpose of paying salaries, debt service
payments, and the usual ordinary expenses of the local board for the interval between the
beginning of the budget year and the adoption of the budget. Interim appropriations so made shall
be charged to the proper appropriations in the adopted budget.
(j)
Finance Officer. Except as otherwise provided, the local board shall designate (i) a
part-time or full-time employee of the board other than the general manager or (ii) the finance
officer of the appointing authority with consent of the appointing authority to be the finance
officer for the local board. The Commission, for good cause shown, may grant a waiver to allow
the general manager of a board also to be the finance officer. Good cause includes, but is not
limited to, the fact that the board operates no more than two stores, and any approval for the
general manager also to be the finance officer shall apply until the board operates more than two
stores; in any event, the approval shall be effective for 36 months. The Commission may grant
one or more waivers to a board.
(k)
Duties and Powers of the Finance Officer. The finance officer for a local board shall:
(1)
Keep the accounts of the local board in accordance with generally accepted
principles of governmental accounting and the rules and regulations of the Commission.
(2)
Disburse all funds of the local board in strict compliance with this Chapter, the
budget, preaudit obligations, and disbursements as required by this section.
(3)
As often as may be requested by the local board or the general manager, prepare
and file with the board a statement of the financial condition of the local board.
(4)
Receive and deposit all monies accruing to the local board, or supervise the
receipt and deposit of money by other duly authorized employees.
(5)
Maintain all records concerning the debt and other obligations of the local board,
determine the amount of money that will be required for debt service or the payment of
other obligations during each fiscal year, and maintain all funds.
(6)
Supervise the investment of idle funds of the local board pursuant to subsection
(t) of this section.
The finance officer shall perform such other duties as may be assigned by law, by the
general manager, budget officer, or local board, or by rules and regulations of the Commission. (l)
Accounting System. Each local board shall establish and maintain an accounting
system designed to show in detail its assets, liabilities, equities, revenues, and expenditures. The
system shall also be designed to show appropriations and estimated revenues as established in the
budget originally adopted and subsequently amended.
(m)
Incurring Obligations. No obligation may be incurred in a program, function, or activity
accounted for in a fund included in the budget unless the budget includes an appropriation
authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to
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pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. No
obligation may be incurred for a capital project unless the budget authorizes the obligation and an
unencumbered balance remains in the appropriation sufficient to pay the sums obligated by the
transaction. If an obligation is evidenced by a contract or agreement requiring the payment of
money or by a purchase order for supplies and materials, the contract, agreement, or purchase
order shall include on its face a certificate stating that the instrument has been preaudited to
assure compliance with this subsection. The certificate, which shall be signed by the finance
officer or any deputy finance officer approved for this purpose by the local board, shall take
substantially the following form:
"This instrument has been preaudited in the manner required by G.S. 18B-702.
_______________________ (Signature of finance officer).
" An obligation incurred in violation of this subsection is invalid and may not be
enforced. The finance officer shall establish procedures to assure compliance with this subsection.
(n) Disbursements. When a bill, invoice, or other claim against a local board is presented, the
finance officer shall either approve or disapprove the necessary disbursement. If the claim
involves a program, function, or activity accounted for in a fund included in the budget or a
capital project or a grant project authorized by the budget, the finance officer may approve the
claim only if:
(1) The finance officer determines the amount to be payable; and
(2) The budget includes an appropriation authorizing the expenditure and either (i) an
encumbrance has been previously created for the transaction or (ii) an unencumbered
balance remains in the appropriation sufficient to pay the amount to be disbursed.
A bill, invoice, or other claim may not be paid unless it has been approved by the finance officer
or, under subsection (o) of this section, by the local board. The finance officer shall establish
procedures to assure compliance with this subsection.
(o)
Local Board Approval of Bills, Invoices, or Claims. The local board may, as permitted
by this subsection, approve a bill, invoice, or other claim against the local board that has been
disapproved by the finance officer. It may not approve a claim for which no appropriation appears
in the budget, or for which the appropriation contains no encumbrance and the unencumbered
balance is less than the amount to be paid. The local board shall approve payment by formal
resolution stating the board's reasons for allowing the bill, invoice, or other claim. The resolution
shall be entered in the minutes together with the names of those voting in the affirmative. The
chairman of the board or some other member designated for this purpose shall sign the certificate
on the check or draft given in payment of the bill, invoice, or other claim. If payment results in a
violation of law, each member of the board voting to allow payment is jointly and severally liable
for the full amount of the check or draft given in payment.
(p)
Checks or Drafts Signed by Finance Officer. Except as otherwise provided by law, all
checks or drafts on an official depository shall be signed by the finance officer or a properly
designated deputy finance officer. The chairman of the local board or general manager of the
local board shall countersign these checks and drafts. The Commission may waive the
requirements of this subsection if the board determines that the internal control procedures of the
unit or authority will be satisfactory in the absence of dual signatures.
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(q)
Payment of a Bill, Invoice, Salary, or Claim. A local board may not pay a bill, invoice,
salary, or other claim except by a check or draft on an official depository or by a bank wire
transfer from an official depository. Except as provided in this subsection, each check or draft on
an official depository shall bear on its face a certificate signed by the finance officer or a deputy
finance officer approved for this purpose by the local board (or signed by the chairman or some
other member of the board pursuant to subsection (o) of this section). The certificate shall take
substantially the following form "This disbursement has been approved in the manner required by
G.S. 18B-702. _______________________ (Signature of finance officer)."
No certificate is required on payroll checks or drafts on an imprest account in an official
depository if the check or draft depositing the funds in the imprest account carried a signed
certificate. No certificate is required for expenditures of fifty dollars ($50.00) or less from a petty
cash fund, provided the expenditure is accounted for by a receipt for the expended item.
(r)
Borrowing Money. A local board may borrow money only for the purchase of land,
buildings, equipment and stock needed for the operation of its ABC system. A local board may
pledge a security interest in any real or personal property it owns other than alcoholic beverages.
A city or county whose governing body appoints a local board shall not in any way be held
responsible for the debts of that board.
(s)
Audits. A local board shall submit to the appointing authority and Commission an
annual independent audit of its operations, performed in accordance with generally accepted
accounting standards and in compliance with a chart of accounts prescribed by the Commission.
The audit report shall contain a summary of the requirements of this Chapter, or of any local act
applicable to that local board, concerning the distribution of profits of that board and a
description of how those distributions have been made, including the names of recipients of the
profits and the activities for which the funds were distributed. A local board shall also submit to
any other audits and submit any reports demanded by the appointing authority or the
Commission.
(t)
Deposits and Investments. A local board may deposit monies at interest in any bank or
trust company in this State in the form of savings accounts or certificates of deposit. Investment
deposits shall be secured as provided in G.S. 159-31(b) and the reports required by G.S. 159-33
shall be submitted. A local board may invest all or part of the cash balance of any fund as
provided in G.S. 159-30(c) and (d), and may deposit any portion of those funds for investment
with the State Treasurer in the same manner as State boards and commissions under G.S. 14769.3.
(u)
Compliance with Commission Rules. The Commission shall adopt, and each local
board shall comply with, fiscal control rules concerning the borrowing of money, maintenance of
working capital, investments, appointment of a budget officer, appointment of a financial officer,
daily deposit of funds, bonding of employees, auditing of operations, and the schedule, manner
and other procedures for distribution of profits. The Commission may also adopt any other rules
concerning the financial operations of local boards which are needed to assure the proper
accountability of public funds. The Commission may vary these rules and regulations according
to any other criteria reasonably related to the purpose or complexity of the financial operations
involved. The Commission has the authority to inquire into and investigate the internal control
procedures of a local board and may require any modifications in internal control procedures
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which, in the opinion of the Commission, are necessary or desirable to prevent embezzlements or
mishandling of public monies.
(v)
Penalties. If a board member or employee of a local board incurs an obligation or pays
out or causes to be paid out any funds in violation of this section, the member or employee and
the sureties on the official bond are liable for any sums so committed or disbursed. If the finance
officer or any properly designated deputy finance officer gives a false certificate to any contract,
agreement, purchase order, check, draft, or other document, the finance officer and the sureties on
the official bond are liable for any sums illegally committed or disbursed thereby.
(w)
Applicability of Criminal Statutes. The provisions of G.S. 14-90 and G.S. 14-254 shall
apply to any person appointed to or employed by a local board, and any person convicted of a
violation of G.S. 14-90 or G.S. 14-254 shall be punished as a Class H felon.
(x)
Local Acts. Notwithstanding the provisions of any local act, this section applies to all
local boards. (1937, c. 49, ss. 10, 12; cc. 411, 431; 1939, c. 98; 1957, cc. 1006, 1335; 1963, c.
1119, s. 2; 1967, c. 1178; 1969, cc. 118, 902; 1971, c. 872, s. 1; 1973, cc. 85, 185; c. 1000, ss. 1,
2; 1977, c. 618; 1979, c. 467, s. 20; c. 617; 1981, c. 412, s. 2; 1981 (Reg. Sess., 1982), c. 1262, s.
11; 1991, c. 459, s. 2; 2010-122, s. 18; 2012-4, s. 2.)
18B-703. Merger of local ABC operations.
(a)
Conditions for Merger. Any city governing body or board of county commissioners
may merge its ABC system with the system of one or more other cities or counties if:
(1) Stores operated by the systems of those jurisdictions serve the same general area or
are in close proximity to each other; and
(2) The merger is approved by the Commission.
(b)
Appointment of Board. Upon merger of ABC systems, the local boards for those
systems shall be replaced by one board appointed jointly by the appointing authorities for the
previous boards.
(c)
Distribution of Profits. Before merger, the cities or counties involved shall agree upon a
formula for distribution of the profits of the new merged ABC system, based as closely as
practicable on the distribution previously authorized for the separate systems. This formula for
distribution shall be subject to approval by the Commission.
(d)
Enforcement. Local officers hired by the local ABC board for the merged ABC system
shall have the same territorial jurisdiction that officers for each of the merged boards would have.
(e)
Dissolution. With the approval of the Commission, the cities or counties that have
merged their ABC systems may dissolve the merged operation at any time and resume their prior
separate operations.
(f)
Other Details Negotiated. Issues not addressed in this section concerning the merger or
dissolution of ABC systems, such as the method of appointment of the merged board, the size of
the merged board, or the procedure for dissolution, may be negotiated by the affected cities and
counties, subject to the approval of the Commission.
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(g)
Operation Follows General Law. Except as otherwise provided in this section, the
authority and operation of any local board established under this section shall be the same as for
any other local board.
(h)
Agreement for Joint Store Operations. With the approval of the Commission, two or
more governing bodies of counties and/or municipalities with ABC systems may enter into a
written agreement whereby one or more ABC stores located within the counties and/or
municipalities that are parties to the agreement shall be controlled and operated by the local ABC
board specified in the agreement, even though said ABC store or stores are located outside the
boundaries of the county or municipality of the local ABC board that will be operating the ABC
store or stores that are subject to the agreement. The provisions of this section shall be effective
as to such agreements insofar as is applicable. Issues not addressed in this section shall be
negotiated by the parties, subject to the approval of the Commission. (1981, c. 412, s. 2; c. 747, s.
51; 2001-128, s. 1.)
18B-704. Removal of local board members and employees.
(a)
Improper Influence. Neither the Commission nor its individual members shall attempt
to coerce any appointing authority to appoint a particular person as a member of a local board or
attempt to coerce a local board to employ any particular applicant.
(b)
Purpose. This section is intended to provide a uniform system of removal for
appointing authorities and the Commission.
(c)
Cause for Removal. (i) Disqualification of a local board member or employee under the
law, (ii) a violation of the ABC laws, (iii) failure to complete training required by this Chapter or
the Commission, or (iv) engaging in any conduct constituting moral turpitude or which brings the
local board or the ABC system into disrepute is cause for the Commission to remove any member
or employee of a local board. The employment or retention of any employee who is known to be
disqualified under the law to hold a position with a local board is cause for the Commission to
remove the board members involved.
(d)
Removal Process. The Commission or appointing authority shall provide, in writing, to
the local board member or employee the findings of fact upon which the decision for removal is
based. The Commission or appointing authority shall also provide the local board member or
employee with notice of the availability of a hearing before the Commission to review the
removal.
(e)
Removal Hearing. Any local board member or employee removed from office or
discharged by the Commission or the appointing authority may request a hearing before the
Commission. Such a request operates to stay the action of the Commission or the appointing
authority with regard to the matter until after the hearing, unless the Commission finds that the
public interest requires immediate action. At the hearing, the employee or the employee's counsel
may examine all evidence used against the employee and present evidence in the employee's own
behalf. A removal hearing is not subject to the provisions of Chapter 150B of the General
Statutes. All hearings shall be conducted informally and in such manner as to preserve the
substantial rights of the parties.
(f)
Hearing Procedure. The Commission shall hold the hearing required by subsection (e)
of this section within 15 days of the member's or employee's request for a hearing. The standard
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of review by the Commission is de novo. The Commission or appointing authority shall be

represented by a Commission hearing officer. The Commission shall discharge the member or
employee if two-thirds of the Commission's members vote for removal. The Commission shall
make findings of fact. The Commission may adopt the findings of fact of the Commission or the
appointing authority, may add new findings of fact to the original findings of fact, or may
substitute new findings of fact for the original findings of fact. The Commission shall make
conclusions of law and shall issue a written decision to the member or employee of the local
board, and to the appointing authority, within 15 days of the hearing.
(g)
Commission Authority. The Commission shall have the sole power, in its discretion, to
determine if cause exists for removal of a local board member or employee who has requested a
hearing before the Commission. The Commission's decision in a removal hearing is final.
(h)
Appeal. A local board member or employee may appeal the Commission's final
decision to the Court of Appeals. The standard of review for an appeal shall be abuse of
discretion. The sole remedy for a local board member or employee shall be the reinstatement of
the board member or employee to the local board with back pay. All awards for back pay shall be
paid by the local board from which the board member or employee was removed.
(i)
Removal Hearing Not a Substitute for Termination of Employee. Nothing in this
section replaces or is intended to replace a local board's policy regarding the termination of an
employee for personnel reasons. The removal process under this section is reserved solely for the
appointing authority or the Commission to remove a board member or employee for cause.
(j)
local boards. (2010-122, s. 19.)
18B-705. Compliance with performance standards; remedies.
(a)
Local Board Compliance. The Commission shall establish performance standards
pursuant to G.S. 18B-203(a)(20). The Commission shall ensure that all local boards comply with
established performance standards by conducting regular or special audits, conducting
performance evaluations, or taking other measures, which may include inspections by
Commission auditors or alcohol law enforcement agents.
(b)
Performance Improvement Plans. The Commission, upon determining that a local
board is failing to meet performance standards established pursuant to G.S. 18B-203(a)(20), shall
meet with the chair of the local board and the appointing authority and issue a statement of
findings. The appointing authority, in consultation with the Commission and the local board, shall
develop and deliver a performance improvement plan to the local board within 60 days of the
meeting with the Commission. The performance improvement plan shall include, but not be
limited to, recommendations for improved performance based on the performance standards
established by the Commission. The plan shall also state a period of time in which the
performance improvements are to occur and what action will be taken by the Commission if
performance standards are not met within the given time limits. The appointing authority shall
allow up to, but no more than, 12 months' time to the local board to implement and show
improvement under the performance improvement plan. The local appointing authority, in
consultation with the Commission and upon good cause shown, may allow up to an additional
six-month period of time for the local board to meet all requirements in the performance
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improvement plan and to establish that the performance standards established by the Commission
are met.
(c)
Remedies. If the Commission determines that the established performance standards
identified in the statement of findings cannot be met after a performance improvement plan has
been implemented and adequate time has been given, but in no case less than 12 months, the
Commission shall take appropriate action to avoid insolvency. This action may include closing
the board pursuant to G.S. 18B-801(d), closing a store or multiple stores, or merging the local
board with another local board in order to maintain solvency. The Commission may also seize the
assets of the local board and liquidate any assets necessary to satisfy any debt in order to maintain
the solvency of the local board. Prior to taking action pursuant to this subsection, the Commission
shall issue a notice of intent to take such action to the appointing authority and the local board.
(d)
local boards. (2010-122, s. 20.)
18B-706. Ethics requirements for local boards.
(a)
Each local board shall adopt a policy containing a code of ethics, consistent with the
provisions of G.S. 18B-201, to guide actions by the local board members and employees of the
local board in the performance of their official duties. The policy shall address at least all of the
following:
(1) The need to obey all applicable laws regarding official actions taken as a local board
member or employee.
(2) The need to uphold the integrity and independence of the local board member or
employee's position.
(3) The need to avoid impropriety in the exercise of official duties.
(4) The need to faithfully perform the duties of the position.
(5) The need to conduct the affairs of the board in an open and public manner, including
complying with all applicable laws governing open meetings and public records.
(b)
Each member of a local board shall receive a minimum of two hours of ethics education
within 12 months after initial appointment to the office and again within 12 months after each
subsequent appointment to the office. The ethics education shall cover laws and principles that
govern conflicts of interest and ethical standards of conduct for local ABC boards. The education
may be provided by the Commission or another qualified source approved by the Commission.
The local board shall maintain a record verifying receipt of the ethics education by each member
of the local board. The local board may require appropriate ethics training and education for
employees of the local ABC board.
(c)
The Commission shall develop a model ethics policy that local ABC boards may adopt
to be in compliance with this section. (2010-122, s. 21.)
18B-707. Reserved for future codification purposes.
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Section 5: G.S. 18B-800 809 reads as rewritten:

18B-800. Sale of alcoholic beverages in ABC stores.
(a)
Spirituous Liquor. Except as provided in Article 10 of this Chapter and G.S. 18B1105(a), spirituous liquor may be sold only in ABC stores operated by local boards.
(b)
Fortified Wine. In addition to spirituous liquor, ABC stores may sell fortified wine.
ABC stores may also sell wine products, irrespective of alcohol content by volume, which were
classified as fortified wine by the ABC Commission prior to July 7, 2004.
(c)
Commission Approval. No ABC store may sell any alcoholic beverage which has not
been approved by the Commission for sale in this State.
(d)
Expired.
(e)
Each ABC store shall display spirits which are distilled in North Carolina in an area
dedicated solely to North Carolina products. (1981, c. 412, s. 2; 1985, c. 59, s. 1; 1989, c. 800, s.
21; 2004-135, s. 4; 2010-31, s. 14.12(a); 2015-98, s. 4(f).)
18B-801. Location, opening, and closing of stores.
(a)
Number of Stores. Each local board shall have the authority and duty to operate one
ABC store. Additional stores may be operated with the approval of the Commission.
(b)
Location of Stores. A local board may choose the location of the ABC stores within its
jurisdiction, subject to the approval of the Commission. In making its decision on a location, the
Commission may consider:
(1) Whether the health, safety, or general welfare of the community will be adversely
affected.
(2) Whether the citizens of the community or city in which the proposed store is to be
located voted for or against ABC stores in the last election on the question.
(3) The proximity of the new location to existing ABC stores operated by the local board
or any other board.
(b1)
Notwithstanding subsection (b) of this section, no local board may establish an ABC
store at any location within the corporate limits of a municipality if the governing body of the
municipality has passed a resolution objecting to the location of the proposed ABC store and the
resolution is based upon information and evidence presented to the governing body of the
municipality at a public hearing. If a municipality objects to the location of a proposed ABC
store, the local board may request the Commission to approve the proposed ABC store location
notwithstanding the objection of the municipality. The Commission shall have final authority to
determine if the operation of an ABC store at the contested proposed location is suitable.
Upon notice given to the Commission by an affected municipality, any statutory and
administrative time limits allowed for objections to, or public hearings concerning the location of,
an ABC store shall be extended by 45 days to allow a municipality sufficient time to conduct a
public hearing and submit its objection and resolution to the Commission.
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(c)
Closing of Stores. Subject to the provisions of subsection (a) of this section, a local
board may close a store, or the Commission may order a local board to close any store when the
local board or the Commission determines that:
(1) Repealed by Session Laws 2010-122, s. 23, effective October 1, 2010.
(2) The store is not operated in accordance with the ABC law; or NC General Statutes.
(3) The continued operation of that store will adversely affect the health, safety, or
general welfare of the community in which the store operates.
(d)
Insolvent ABC System. If an ABC system is insolvent, the local board may apply to the
Commission for an order to close the system. Upon receipt of an application, or upon its own
motion, the Commission shall investigate the system, and if it finds that further operation of the
ABC stores will not be profitable, it may order the system closed. If the Commission orders a
local system to close, the Commission may:
(1) After consultation with the local board, its creditors, and other interested parties,
schedule a phase out of the system's business activities;
(2) Represent the local board in negotiations with creditors and other interested parties;
(3) Require an accounting or auditing of the local system;
(4) Take possession or arrange for the disposition of any liquor for which the local board
has not paid;
(5) Apply to the Superior Court to be appointed as receiver for the local board with all
powers and duties of a receiver for a corporation under Article 38 of Chapter 1 of the General
Statutes, except that the Commission shall not be required to post the bond required by G.S. 1504; or
(6) Take any other reasonable steps to promote an orderly closing of the system. (1981, c.
412, s. 2; 1987, c. 135; 1989, c. 770, s. 6; 2009-36, s. 1; 2010-122, ss. 22, 23.)
18B-802. When stores operate.
(a)
Time. No ABC store shall be open, and no ABC store employee shall sell alcoholic
beverages, between 9:00 P.M. and 9:00 A.M. The local board shall otherwise determine opening
and closing hours of its stores.
(b)
Days. No ABC store shall be open, and no ABC store employee shall sell alcoholic
beverages, on any Sunday, New Year's Day, Fourth of July, Labor Day, Thanksgiving Day, or
Christmas Day. A local board may otherwise determine the days on which its stores shall be
closed. (1981, c. 412, s. 2.)
18B-803. Store management.
(a)
Manager. A local board shall provide for the management of each store operated by it.
The board shall employ at least one manager for each store, who shall operate the store pursuant
to the directions of that board.
(b)
Bonding of Manager. Each store manager shall be bonded in an amount not less than
fifty thousand dollars ($50,000) secured by a corporate surety, for the honest performance of his
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duties. A public employees' blanket position bond, honesty form, in the required amount satisfies
the requirements of this subsection. The bond shall be payable to the local board and shall be
approved by the appointing authority for the local board. The appointing authority may increase
the amount of bond required for store managers under this subsection.
(c)
Bonding of Other Employees. A local board or the appointing authority may require
any of its other employees who handle funds to obtain bonds. The amount and form of those
bonds shall be determined by the local board.
(d)
local boards. (1981, c. 412, s. 2; 1981 (Reg. Sess., 1982), c. 1262, s. 12; 2010-122, s. 24.)
18B-804. Alcoholic beverage pricing.
(a) Uniform Price of Spirituous Liquor. The retail price of spirituous liquor sold in ABC stores
and permitted distilleries shall be uniform throughout the State, unless otherwise provided by the
ABC law.
(b) Sale Price of Spirituous Liquor. The sale of spirituous liquor, including antique spirituous
liquor, sold at the uniform State price shall consist of the following components:
(1) The distiller's or the antique spirituous liquor seller's price.
(2) The freight and bailment charges of the State warehouse as determined by the
Commission.
(3) A markup for local boards as determined by the Commission.
(4) The tax levied under G.S. 105-113.80(c), which shall be levied on the sum of
subdivisions (1), (2), and (3).
(5) An additional markup for local boards equal to three and one-half percent (3 1/2%) of
the sum of subdivisions (1), (2), and (3).
(6) A bottle charge of one cent (1) on each bottle containing 50 milliliters or less and
five cents (5) on each bottle containing more than 50 milliliters. (6a) The bailment surcharge.
(6b) An additional bottle charge for local boards of one cent (1) on each bottle
containing 50 milliliters or less and five cents (5) on each bottle containing more than 50
milliliters.
(7) A rounding adjustment, the formula of which may be determined by the Commission,
so that the sale price will be divisible by five.
(8) If the spirituous liquor is sold to a mixed beverage permittee for resale in mixed
beverages, a charge of twenty dollars ($20.00) on each four liters and a proportional sum on
lesser quantities.
(9) If the spirituous liquor is sold to a guest room cabinet permittee for resale, a charge of
twenty dollars ($20.00) on each four liters and a proportional sum on lesser quantities.
(b1)
Price of Spirituous Liquor Sold at Distillery. When the holder of a distillery permit sells
spirituous liquor distilled at the distillery pursuant to G.S. 18B-1105(a)(4), the retail price of the
spirituous liquor shall be the uniform State price set by subsection (a) of this section. However,
117
the holder of the distillery permit shall not be required to remit the components of the price set
forth by subdivisions (2), (3), (5), (6), (6a), (6b), and (7) of subsection (b) of this section.
(c)
Sale Price of Fortified Wine. The sale price of fortified wine shall include the tax levied
by G.S. 105-113.80(b), as well as State and local sales taxes.
(d)
Repealed by Session Laws 1985, c. 59, s. 2. (1937, c. 49, s. 4; cc. 237, 411; 1945, c. 954;
1949, c. 974, s. 9; 1961, c. 956; 1963, c. 426, s. 12; c. 916, s. 2; c. 1119, s. 1; 1965, c. 1063; c.
1102, s. 3; 1967, c. 222, s. 2; c. 1240, s. 1; 1971, c. 872, s. 1; 1973, c. 28; c. 473, s. 1; c. 476, s.
133; c. 606; c. 1288, s. 1; cc. 1369, 1396; 1975, cc. 240, 453, 640; 1977, c. 70, ss. 15.1, 15.2, 16;
c. 176, ss. 2, 6; 1977, 2nd Sess., c. 1138, ss. 3, 4, 18; 1979, c. 384, s. 1; c. 445, s. 5; c. 482; c. 801,
s. 4; 1981, c. 412, s. 2; 1981 (Reg. Sess., 1982), c. 1285, s. 5; 1983, c. 713, ss. 100, 101;1985, c.
59, s. 2; c. 68, s. 1; c. 114, ss. 7-9; 1991, c. 565, ss. 4, 7; c. 689, ss. 304, 305; 1991 (Reg. Sess.,
1992), c. 920, s. 3; 2015-98, ss. 1(e), 4(g); 2015-262, s. 3(b).)
18B-805. Distribution of revenue.
(a)
Gross Receipts. As used in this section, "gross receipts" means all revenue of a local
board, including proceeds from the sale of alcoholic beverages, investments, interest on deposits,
and any other source.
(b)
Primary Distribution. Before making any other distribution, a local board shall first pay
the following from its gross receipts:
(1) The board shall pay the expenses, including salaries, of operating the local ABC
system.
(2) Each month the local board shall pay to the Department of Revenue the taxes due the
Department. In addition to the taxes levied under Chapter 105 of the General Statutes, the local
board shall pay to the Department one-half of both the mixed beverages surcharge required by
G.S. 18B-804(b)(8) and the guest room cabinet surcharge required by G.S. 18B-804(b)(9).
(3) Each month the local board shall pay to the Department of Health and Human
Services five percent (5%) of both the mixed beverages surcharge required by G.S. 18B-804(b)
(8) and the guest room cabinet surcharge required by G.S. 18B-804(b)(9). The Department of
Health and Human Services shall spend those funds for the treatment of alcoholism or substance
abuse, or for research or education on alcohol or substance abuse.
(4) Each month the local board shall pay to the county commissioners of the county
where the charge is collected the proceeds from the bottle charge required by G.S. 18B-804(b)(6),
to be spent by the county commissioners for the purposes stated in subsection (h) of this section.
(c)
Other Statutory Distributions. After making the distributions required by subsection (b),
a local board shall make the following quarterly distributions from the remaining gross receipts:
(1)
Before making any other distribution under this subsection, the local board shall
set aside the clear proceeds of the three and one-half percent (3 1/2%) markup provided
for in G.S. 18B-804(b)(5) and the bottle charge provided for in G.S. 18B-804(b)(6b), to
be distributed as part of the remaining gross receipts under subsection (e) of this section.
(2)
The local board shall spend for law enforcement an amount set by the board
which shall be at least five percent (5%) of the gross receipts remaining after the
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distribution required by subdivision (1). The local board may contract with the ALE
Branch to provide the law enforcement required by this subdivision. Notwithstanding the
provisions of any local act, this provision shall apply to all local boards.
(3)
The local board shall spend, or pay to the county commissioners to spend, for the
purposes stated in subsection (h), an amount set by the board which shall be at least seven
percent (7%) of the gross receipts remaining after the distribution required by subdivision
(1). This provision shall not be applicable to a local board which is subject to a local act
setting a different distribution.
(d)
Working Capital. After making the distributions provided for in subsections (b) and (c),
the local board may set aside a portion of the remaining gross receipts, within the limits set by the
rules of the Commission, as cash to operate the ABC system. With the approval of the appointing
authority for the board, the local board may also set aside a portion of the remaining gross
receipts as a fund for specific capital improvements.
(e)
Other Distributions. After making the distributions provided in subsections (b), (c), and
(d), the local board shall pay each quarter the remaining gross receipts to the general fund of the
city or county for which the board is established, unless some other distribution or some other
schedule is provided for by law. If the governing body of each city and county receiving revenue
from an ABC system agrees, those governing bodies may alter at any time the distribution to be
made under this subsection or under any local act. Copies of the governing body resolutions
agreeing to a new distribution formula and a copy of the approved new distribution formula shall
be submitted to the Commission for review and audit purposes. If any one of the governing
bodies later withdraws its consent to the change in distribution, profits shall be distributed
according to the original formula, beginning with the next quarter.
(f)
Surcharge Profit Shared. When, pursuant to G.S. 18B-603(d1), spirituous liquor is
bought at a city ABC store by a mixed beverages permittee for premises located outside the city,
the local board operating the store at which the sale is made shall retain seventy-five percent
(75%) of the local share of both the mixed beverages surcharge required by G.S. 18B-804(b)(8)
and the guest room cabinet surcharge required by G.S. 18B-804(b)(9) and the remaining twentyfive percent (25%) shall be divided equally among the local ABC boards for all other cities in the
county that have authorized the sale of mixed beverages. When, pursuant to G.S. 18B-603(e),
spirituous liquor is bought at a city ABC store by a mixed beverages permittee for premises
located at an airport outside the city, the local share of both the mixed beverages surcharge
required by G.S. 18B-804(b)(8) and the guest room cabinet surcharge required by G.S. 18B804(b)(9) shall be divided equally among the local ABC boards for all cities in the county that
have authorized the sale of mixed beverages.
(g)
Quarterly Distributions. When this section requires a distribution to be made quarterly,
at least ninety percent (90%) of the estimated distribution shall be paid to the recipient by the
local board within 30 days of the end of that quarter. Adjustments in the amount to be distributed
resulting from the closing of the books and from audit shall be made with the next quarterly
payment.
(h)
Expenditure of Alcoholism Funds. Funds distributed under subdivisions (b)(4) and (c)
(3) of this section shall be spent for the treatment of alcoholism or substance abuse, or for
research or education on alcohol or substance abuse. The minutes of the board of county
commissioners or local board spending funds allocated under this subsection shall describe the
119
activity for which the funds are to be spent. Any agency or person receiving funds from the
county commissioners or local board under this subsection shall submit an annual report to the
board of county commissioners or local board from which funds were received, describing how
the funds were spent.
(i)
Calculation of Statutory Distributions When Liquor Sold at Less Than Uniform Price.
If a local board sells liquor at less than the uniform State price, distributions required by
subsections (b) and (c) shall be calculated as though the liquor was sold at the uniform price.
(1981, c. 412, s. 2; c. 747, s. 52; 1983, c. 713, ss. 102-104; 1985 (Reg. Sess., 1986), c. 1014, s.
116; 1991, c. 459, s. 3; c. 689, s. 306; 1991 (Reg. Sess., 1992), c. 920, s. 4; 1993, c. 415, s. 27;
1997-443, s. 11A.118(a); 1999-462, s. 8; 2011-145, s. 19.1(q); 2014-100, s. 17.1(xxx).)
18B-806. Damaged alcoholic beverages.
(a)
Owned by Local Board. All damaged alcoholic beverages owned by a local board shall
be destroyed, given to a public or private hospital for medicinal use only, or given to the
Commission.
(b)
Not Owned by Local Board. The Commission shall dispose of all damaged alcoholic
beverages which are:
(1) Owned by the Commission;
(2) Damaged while in the State warehouse; or
(3) Damaged while in transit between the State warehouse and a local board.
The Commission shall dispose of the alcoholic beverages by giving them to a public or private
hospital for medicinal use only, by selling them to a military installation, or by destroying them.
(c)
Sale Procedure. If damaged alcoholic beverages are sold under subsection (b), sale shall
be by:
(1) Advertisement for sealed bids;
(2) Negotiated offer, advertisement and upset bids; or
(3) Exchange.
Funds derived from the sale of damaged alcoholic beverages shall be paid to the general fund of
the State.
(d)
Records. Local boards and the Commission shall keep detailed records of all disposals
of damaged alcoholic beverages, including brand, quantity and disposition. (1981, c. 412, s. 2.)
18B-807. Rules.
The Commission may adopt rules concerning the organization and operation of self-service ABC
stores, the size of ABC store signs, the display of alcoholic beverages, solicitation in and around
ABC stores, and any other subject relating to the efficient operation of ABC stores. (1981, c. 412,
s. 2.)
18B-808. Warning signs regarding dangers of alcohol consumption during pregnancy
required; posting.
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(a)
Each ABC store shall display or cause to be displayed warning signs that meet the
requirements of this section on the store's premises to inform the public of the effects of alcohol
consumption during pregnancy.
(b)
The Commission shall develop the warning signs in accordance with subsection (c) of
this section and provide for their distribution and replacements to local ABC boards subject to the
requirement of this section. The Commission may charge a reasonable fee, not to exceed twentyfive dollars ($25.00), for each sign, including replacement signs.
(c)
The signs required by this section shall:
(1)
Be composed of black, capital letters printed on white paper at the minimum
weight of one hundred ten pound index. The letters comprising the word "WARNING" shall be
highlighted black lettering and shall be larger than all other lettering on the sign.
(2) Contain the message: "WARNING Pregnancy and alcohol do not mix. Drinking
alcohol during pregnancy can cause birth defects."
(3) The size of the sign shall be at least eight and one-half inches by 14 inches.
(4) Contain a graphic depiction of the message to assist nonreaders in understanding the
message. The depiction of a pregnant female shall be universal and shall not reflect a specific
race or culture.
(5) Be in both English and Spanish.
(d)
A local ABC board shall ensure that each ABC store manager displays the warning sign
in an open and prominent place in the store within 30 days of receipt of the sign from the
Commission. (2003-339, s. 2.)
18B-809 through 18B-899. Reserved for future codification purposes
Section 3: G.S. Article 6H 136-89.180 - 136-89.220 reads as rewritten
136-89.180. Legislative findings.
The General Assembly finds that the existing State road system is becoming increasingly
congested and overburdened with traffic in many areas of the State; that the sharp surge of
vehicle miles traveled is overwhelming the State's ability to build and pay for adequate road
improvements; and that an adequate answer to this challenge will require the State to be
innovative and utilize several new approaches to transportation improvements in North
Carolina.
Toll funding of highway and bridge construction is feasible in North Carolina and can
contribute to addressing the critical transportation needs of the State. A toll program can
speed the implementation of needed transportation improvements by funding some projects
with tolls. (2002-133, s. 1.)
136-89.181. Definitions.
The following definitions apply to this Article:
(1) Department. The North Carolina Department of Transportation.
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(2) Turnpike Authority. The public agency created by this Article.

(3) Authority Board. The governing board of the Turnpike Authority.
(4) Turnpike project. Either of the following: a. A road, bridge, or tunnel project planned,
or planned and constructed, in accordance with the provisions of this Article. b. A segment
of the State highway system the Authority Board converts to a tolled highway pursuant to
the authorization in G.S. 136-89.187.
(5) Turnpike system. All Turnpike projects. (2002-133, s. 1; 2008-225, s. 3.)
136-89.182. North Carolina Turnpike Authority.
(a) Creation. There is created a body politic and corporate to be known as the "North
Carolina Turnpike Authority". The Authority is constituted as a public agency, and the
exercise by the Authority of the powers conferred by this Article in the construction,
operation, and maintenance of toll roads and bridges shall be deemed and held to be the
performance of an essential governmental function.
(b) Administrative Placement. The Authority shall be located within the Department of
Transportation and shall be subject to and under the direct supervision of the Secretary of
Transportation.
(c) Authority Board. The North Carolina Turnpike Authority shall be governed by a ninemember Authority Board consisting of two members appointed by the General Assembly
upon the recommendation of the President Pro Tempore of the Senate in accordance with
G.S. 120-121, two members appointed by the General Assembly upon the recommendation
of the Speaker of the House of Representatives in accordance with G.S. 120-121, four
members appointed by the Governor, and the Secretary of NC General Statutes - Chapter
136 Article 6H 2 Transportation. Each appointing authority shall appoint members who
reside in diverse regions of the State. The Chair of the Authority shall be selected by the
Authority Board.
(d) Board of Transportation Members. Members of the North Carolina Board of
Transportation may serve as members of the Authority Board.
(e) Staggered Terms. One of the initial appointments to the Authority Board by the
General Assembly upon the recommendation of the President Pro Tempore of the Senate,
one of the initial appointments to the Authority Board by the General Assembly upon the
recommendation of the Speaker of the House of Representatives, and three of the initial
appointments of the Governor shall be appointed to terms ending January 14, 2007. One of
the initial appointments to the Authority Board by the General Assembly upon the
recommendation of the President Pro Tempore of the Senate, one of the initial appointments
to the Authority Board by the General Assembly upon the recommendation of the Speaker
of the House of Representatives, and one of the initial appointments of the Governor shall
be appointed to terms ending January 14, 2005. The Secretary of Transportation shall serve
as an ex officio voting member of the Board. Thereafter, at the expiration of each stipulated
term of office, all appointments shall be to a term of four years from the date of the
expiration of the term.
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(f) Vacancies. All members of the Authority Board shall remain in office until their
successors are appointed and qualified. The original appointing authority may appoint a
member to serve out the unexpired term of any member.
(g) Removal of Board Members. Each member of the Authority Board, notwithstanding
subsection (e) of this section, shall serve at the pleasure of the appointing authority. The
Chair of the Authority serves at the pleasure of the Authority Board.
(h) Conflicts of Interest, Ethics. Members of the Authority Board shall be subject to the
provisions of G.S. 136-13, 136-13.1, and 136-14.
(i) Compensation. The appointed members of the Authority Board shall receive no salary
for their services but shall be entitled to receive per diem and travel allowances in
accordance with the provisions of G.S. 138-5 and G.S. 138-6 as appropriate.
(j) Bylaws. The Authority Board shall adopt, change, or amend bylaws with respect to the
calling of meetings, quorums, voting procedures, the keeping of records, and other
organizational, staffing, and administrative matters as the Authority Board may determine.
Any bylaws, or subsequent changes or amendments to the bylaws, shall be included in the
Annual Report as required by G.S. 136-89.193.
(k) Executive Director and Administrative Employees. The Authority Board shall appoint
an Executive Director, whose salary shall be fixed by the Authority, to serve at its pleasure.
The Executive Director shall be the Authority's chief administrative officer and shall be
responsible for the daily administration of the toll roads and bridges constructed,
maintained, or operated pursuant to this Article. The Executive Director or his designee
shall appoint, employ, dismiss, and, within the limits approved by the Authority Board, fix
the compensation of administrative employees as the Executive Director deems necessary to
carry out this Article.
(l) Office. The offices of the Authority may be housed in one or more facilities of the
Department of Transportation. (2002-133, s. 1; 2009-343, ss. 1, 2; 2011-145, s. 28.35(c).)
136-89.183. Powers of the Authority.
(a) The Authority shall have all of the powers necessary to execute the provisions of this
Article, including the following:
(1) The powers of a corporate body, including the power to sue and be sued, to make
contracts, to adopt and use a common seal, and to alter the adopted seal as needed.
(2) To study, plan, develop, and undertake preliminary design work on Turnpike Projects.
At the conclusion of these activities, the Turnpike Authority is authorized to design,
establish, purchase, construct, operate, and maintain no more than eleven projects, which
shall include the following:
a. Triangle Expressway, including segments also known as N.C. 540, Triangle Parkway, and
the Western Wake Freeway in Wake and Durham Counties. The described segments
constitute one project.
b. Repealed by Session Laws 2013-183, s. 5.1, effective July 1, 2013.
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c. Monroe Connector/Bypass.
d., e. Repealed by Session Laws 2013-183, s. 5.1, effective July 1, 2013.
f. Repealed by Session Laws 2008-225, s. 4, effective August 17, 2008.
(3) Repealed by Session Laws 2005-275, s. 2, effective August 12, 2005.
(4) To rent, lease, purchase, acquire, own, encumber, dispose of, or mortgage real or
personal property, including the power to acquire property by eminent domain pursuant to
G.S. 136-89.184.
(5) To fix, revise, charge, retain, enforce, and collect tolls and fees for the use of the
Turnpike Projects. Thirty days prior to the effective date of any toll or fee for use of a
Turnpike Facility, the Authority shall submit a description of the proposed toll or fee to the
Board of Transportation, the Joint Legislative Transportation Oversight Committee and the
Joint Legislative Commission on Governmental Operations for review.
(6) To issue bonds or notes of the Authority as provided in this Article.
(6a) To invest the proceeds of bonds or notes of the Authority that are pending disbursement
or other idle funds of the Authority in any investment authorized by G.S. 159-30.
(7) To establish, construct, purchase, maintain, equip, and operate any structure or facilities
associated with the Turnpike System. NC General Statutes - Chapter 136 Article 6H 4 (8) To
pay all necessary costs and expenses in the formation, organization, administration, and
operation of the Authority.
(9) To apply for, accept, and administer loans and grants of money or real or personal
property from any federal agency, the State or its political subdivisions, local governments,
or any other public or private sources available.
(10) To adopt, alter, or repeal its own bylaws or rules implementing the provisions of this
Article, in accordance with the review and comment requirements of G.S. 136-89.182(j).
(11) To utilize employees of the Department; to contract for the services of consulting
engineers, architects, attorneys, real estate counselors, appraisers, and other consultants; to
employ administrative staff as may be required in the judgment of the Authority; and to fix
and pay fees or compensation to the Department, contractors, and administrative
employees from funds available to the Authority.
(12) To receive and use appropriations from the State and federal government.
(13) To adopt procedures to govern its procurement of services and delivery of Turnpike
Projects.
(14) To perform or procure any portion of services required by the Authority.
(15) To use officers, employees, agents, and facilities of the Department for the purposes and
upon the terms as may be mutually agreeable.
(16) To contract for the construction, maintenance, and operation of a Turnpike Project.
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(17) To enter into partnership agreements with the Department of Transportation,

agreements with political subdivisions of the State, and agreements with private entities,
and to expend such funds as it deems necessary, pursuant to such agreements, for the
purpose of financing the cost of acquiring, constructing, equipping, operating, or
maintaining any Turnpike Project. An agreement entered under this subdivision requires
the concurrence of the Board of Transportation if the Department of Transportation is a
party to the agreement.
(18) To utilize incentives in any contract for development or construction of a Turnpike
Project, in order to promote expedited delivery of the project.
(19) To enter into reciprocal toll enforcement agreements with other toll agencies, as
provided in G.S. 136-89.220.
(b) To execute the powers provided in subsection (a) of this section, the Authority shall
determine its policies by majority vote of the members of the Authority Board present and
voting, a quorum having been established. Once a policy is established, the Authority Board
shall communicate it to the Executive Director or the Executive Director's designee, who
shall have the sole and exclusive authority to execute the policy of the Authority. No
member of the Authority Board shall have the responsibility or NC General Statutes Chapter 136 Article 6H 5 authority to give operational directives to any employee of the
Authority other than the Executive Director or the Director's designee. (2002-133, s. 1;
2005-275, s. 2; 2006-228, s. 5; 2006-230, s. 1(b); 2008-225, s. 4; 2011-7, s. 1; 2011-145, s.
28.32(e); 2011-391, s. 56; 2012-85, s. 9; 2013-94, s. 1; 2013-183, ss. 5.1, 5.3; 2015-241, ss.
29.12(a), 29.15A.)
136-89.183A. Accelerated Pilot Toll Bridge Project.
(a) Findings. The General Assembly finds that there is a need for a bridge connecting the
Currituck County mainland to the Currituck County Outer Banks; that the bridge should
be implemented as a toll bridge; that the bridge should be implemented in a manner that
protects the natural environment and quality of life on the Outer Banks; and that the
character of the existing road system in Currituck County and Dare County Outer Banks
should be preserved.
(b) Contract to Construct Accelerated Pilot Toll Bridge Project. The Authority shall
contract with a single private firm to design, obtain all necessary permits for, and construct
the toll bridge described in G.S. 136-89.183(a)(2), known as the Mid-Currituck Bridge, in
order to provide accelerated, efficient, and cost-effective completion of the project.
(c) Preconstruction Participation. In addition to the authority granted by G.S. 136-89.191,
the Department shall participate in the cost of preconstruction activities related to the
project described in this section, if requested by the Authority.
(d) Environmental Protection. The Authority shall ensure that the Mid-Currituck Bridge
is implemented in a manner that accomplishes all of the following: (1) Ensures the
preservation of water quality in Currituck Sound. (2) Mitigates the environmental impact of
the bridge on the Currituck County mainland and the Outer Banks. (3) Reduces traffic
congestion and vehicle miles traveled, and preserves the character of the existing road
system, in Dare County and Currituck County on the Outer Banks.
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(e) Report on Project. The Authority shall report to the Joint Legislative Transportation
Oversight Committee on December 1, 2005, and each December 1 thereafter until
completion, on the progress of the accelerated pilot toll bridge project described in this
section. (2005-275, s. 3; 2008-225, s. 11.)
136-89.183B. Accelerated Herbert C. Bonner Bridge Replacement Project.
(a) Contract for Accelerated Construction of the Herbert C. Bonner Replacement Bridge
Project. The Department of Transportation shall implement all reasonable measures to
expedite completion of environmental reviews required by the National Environmental
Policy Act. Within 90 days of receiving an approved Record of Decision from the Federal
Highway Administration, the Department shall contract with a single private firm to design
and build a replacement bridge for the Herbert C. Bonner Bridge at Oregon Inlet, in
accordance with G.S. 136-28.11, in order to expedite and accelerate the efficient, cost
effective completion of the project.
(b) Replacement Bridge; Termini. The General Assembly recommends that the
replacement bridge constructed pursuant to this section shall be located with north and
south termini located in general proximity to the termini of the existing Herbert C. Bonner
Bridge. It is recognized, however, that the preferred alternative for the bridge location
cannot be determined prior to compliance with all federal and State laws and regulations.
NC General Statutes - Chapter 136 Article 6H 6
(c) Department to Report on Project. The Department shall report to the Joint Legislative
Transportation Oversight Committee on December 1, 2005, and each December 1 thereafter
until completion, on the progress of the accelerated bridge project described in this section.
(2005-275, s. 6(b); 2005-382, s. 3.)
136-89.183C. Accelerated Yadkin River Veterans Memorial Bridge Replacement Project.
(a) Contract for Accelerated Construction of the Yadkin River Veterans Memorial Bridge
Replacement Bridge Project. The Authority shall study, plan, develop, undertake
preliminary design work, and analyze and list all necessary permits, in preparation for
construction of a replacement bridge and approaches for the Yadkin River Veterans
Memorial Bridge over the Yadkin River and between Rowan and Davidson Counties, in
order to provide accelerated, efficient, and cost-effective completion of the project.
(b) Replacement Bridge; Termini. The bridge constructed pursuant to this section shall be
a replacement bridge, with north and south termini located in general proximity to the
termini of the existing Yadkin River Veterans Memorial Bridge. (2007-299, s. 1; 2012-42, s.
3.)
136-89.184. Acquisition of real property.
(a) General. The Authority may acquire public or private real property by purchase,
negotiation, gift, or devise, or condemnation that it determines to be necessary and
convenient for the construction, expansion, enlargement, extension, improvement, or
operation of a Turnpike Project. When the Authority acquires real property owned by the
State, the Secretary of the Department of Administration shall execute and deliver to the
Authority a deed transferring fee simple title to the property to the Authority.
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(b) Condemnation. To exercise the power of eminent domain, the Authority shall
commence a proceeding in its name and shall follow the procedure set forth in Article 9 of
Chapter 136 of the General Statutes. (2002-133, s. 1.)
136-89.185. Taxation of property of Authority.
Property owned by the Authority is exempt from taxation in accordance with Section 2 of
Article V of the North Carolina Constitution. (2002-133, s. 1.)
136-89.186. Audit.
The operations of the Authority shall be subject to the oversight of the State Auditor
pursuant to Article 5A of Chapter 147 of the General Statutes. (2002-133, s. 1.)
136-89.187. Conversion of free highways prohibited.
The Authority Board is prohibited from converting any segment of the nontolled State
Highway System to a toll facility, except for a segment of N.C. 540 under construction as of
July NC General Statutes - Chapter 136 Article 6H 7 1, 2006, located in Wake County and
extending from the N.C. 54 exit on N.C. 540 to the N.C. 55 exit on N.C. 540. No segment
may be converted to a toll route pursuant to this section unless first approved by the
Metropolitan Planning Organization (MPO) or Rural Planning Organization (RPO) of the
area in which that segment is located. (2002-133, s. 1; 2006-228, s. 3; 2008-225, s. 5.)
136-89.188. Use of revenues.
(a) Revenues derived from Turnpike Projects authorized under this Article shall be used
only for the following: (1) Authority administration costs. (2) Turnpike Project
development, right-of-way acquisition, design, construction, operation, maintenance,
reconstruction, rehabilitation, and replacement. (3) Debt service on the Authority's revenue
bonds or related purposes such as the establishment of debt service reserve funds. (4) Debt
service, debt service reserve funds, and other financing costs related to any of the following:
a. A financing undertaken by a private entity under a partnership agreement with the entity
for a Turnpike Project. b. Private activity bonds issued under law related to a Turnpike
Project. c. Any federal or State loan, line of credit, or loan guarantee relating to a Turnpike
Project. (5) A return on investment of any private entity under a partnership agreement
with the entity for a Turnpike Project. (6) Any other uses granted to a private entity under a
partnership agreement with the entity for a Turnpike Project.
(b) The Authority may use up to one hundred percent (100%) of the revenue derived from a
Turnpike Project for debt service on the Authority's revenue bonds or for a combination of
debt service and operation and maintenance expenses of the Turnpike Projects.
(c) The Authority shall use not more than five percent (5%) of total revenue derived from
all Turnpike Projects for Authority administration costs. (d) Notwithstanding the provisions
of subsections (a) and (b) of this section, toll revenues generated from a converted segment
of the State highway system previously planned for operation as a nontoll facility shall only
be used for the funding or financing of the right of way acquisition, construction, expansion,
operations, maintenance, and Authority administration costs associated with the converted
segment or a contiguous toll facility. (2002-133, s. 1; 2006-228, s. 4; 2013-183, s. 5.4.)
136-89.189. Turnpike Authority revenue bonds.
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The Authority shall be a municipality for purposes of Article 5 of Chapter 159 of the
General Statutes, the State and Local Government Revenue Bond Act, and may issue
revenue bonds pursuant to that Act to pay all or a portion of the cost of a Turnpike Project
or to refund any previously issued bonds. In connection with the issuance of revenue bonds,
the Authority shall have all powers of a municipality under the State and Local Government
Revenue Bond Act, and revenue bonds issued by the Authority shall be entitled to the
protection of all provisions of the State and Local Government Revenue Bond Act. Except
as provided in this section, the provisions of Chapter 159 of the General Statutes, the Local
Government Finance Act, apply to revenue bonds issued by the Turnpike Authority. (1) The
term of a lease between the Turnpike Authority and the Department executed prior to July
27, 2009, for all or any part of a Turnpike Project may exceed 40 years, as agreed by the
Authority and the Department. (2) The maturity date of a refunding bond may extend to
the earlier of the following: a. Forty years from the date of issuance of the refunding bond.
b. The date the Turnpike Authority determines is the maturity date required for the
Turnpike Project funded with the refunding bonds to generate sufficient revenues to retire
the refunding bonds and any other outstanding indebtedness issued for that Project. The
Authority's determination of the appropriate maturity date is conclusive and binding. In
making its determination, the Authority may take into account appropriate financing terms
and conventions. (2002-133, s. 1; 2009-56, s. 2; 2010-165, s. 10.)
136-89.190. Sale of Turnpike Authority revenue bonds.
Revenue bonds of the Authority issued pursuant to G.S. 136-89.189 and the State and Local
Government Revenue Bond Act shall be sold in accordance with and pursuant to Article 7
of Chapter 159 of the General Statutes. (2002-133, s. 1.)
136-89.191. Cost participation by Department of Transportation.
The Department of Transportation may participate in the cost of preconstruction activities,
construction, maintenance, or operation of a Turnpike Project. (2002-133, s. 1.)
136-89.192. Applicability of formula.
Only those funds applied to a Turnpike Project from the State Highway Fund, State
Highway Trust Fund, or federal-aid funds that might otherwise be used for other roadway
projects within the State, and are otherwise already subject to the formula under G.S. 136189.11 shall be included in the formula. NC General Statutes - Chapter 136 Article 6H 9
Other revenue from the sale of the Authority's bonds or notes, project loans, or toll
collections shall not be included in the formula. (2002-133, s. 1; 2013-183, s. 4.6.)
136-89.193. Annual plan of work; annual and quarterly reports.
(a) Annual Plan of Work. The Authority shall annually develop a plan of work for the
fiscal year, describing the activities and projects to be undertaken, accompanied by a
budget. This annual plan of work shall be subject to the concurrence of the Board of
Transportation.
(b) Annual Reports. The Authority shall, promptly following the close of each fiscal year,
submit an annual report of its activities for the preceding fiscal year and an annual audit of
its books and accounts for the preceding fiscal year to the Governor, the General Assembly,
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and the Department of Transportation. The report and audit shall be submitted no later
than October 31 of the fiscal year in which the report and audit are completed.
(c) Semiannual Reports. The Authority shall submit semiannual reports to the Joint
Legislative Transportation Oversight Committee, and more frequent reports if requested.
The reports shall summarize the Authority's activities during the preceding six months, and
shall contain any information about the Authority's activities that is requested by the
Committee.
(d) Report Prior to Let of Contracts. The Authority shall consult with and report to the
Joint Legislative Transportation Oversight Committee and the Joint Legislative
Commission on Governmental Operations prior to the letting of any contract for Turnpike
Project construction authorized under G.S. 136-183(a)(2).
(e) Repealed by Session Laws 2011-145, s. 28.35(a), effective July 1, 2011. (2002-133, s. 1;
2011-145, s. 28.35(a); 2014-58, s. 3.)
136-89.194. Laws applicable to the Authority; exceptions.
(a) Motor Vehicle Laws. The Turnpike System shall be considered a "highway" as defined
in G.S. 20-4.01(13) and a "public vehicular area" as defined in G.S. 20-4.01(32). All law
enforcement and emergency personnel, including the State Highway Patrol and the Division
of Motor Vehicles, shall have the same powers and duties on the Turnpike System as on any
other highway or public vehicular area.
(b) Applicable Contracting. For the purposes of implementing this Article, the Authority
shall solicit competitive proposals for the construction of Turnpike Projects in accordance
with the provisions of Article 2 of this Chapter. Contracts for professional engineering
services and other kinds of professional or specialized services necessary in connection with
construction of Turnpike Projects shall be solicited in accordance with procedures utilized
by the Department of Transportation. Cost estimates prepared for the purpose of
comparing bids for a Turnpike project are confidential and may not be disclosed until after
the opening of bids for the project. NC General Statutes - Chapter 136 Article 6H 10
(c) Alternative Contracting Methods. Notwithstanding the provisions of subsection (b) of
this section, the Authority may authorize the use of alternative contracting methods if: (1)
The authorization applies to an individual project; (2) The Authority has concluded, and
documented in writing, that the alternative contracting method is necessary because the
project cannot be completed utilizing the procedures of Article 2 of this Chapter within the
necessary time frame or available funding or for other reasons the Authority deems in the
public interest; (3) The Authority has provided, to the extent possible, for the solicitation of
competitive proposals prior to awarding a contract; and (4) The approved alternative
contracting method provides for reasonable compliance with the disadvantaged business
participation goals of G.S. 136-28.4.
(d) Entry for Surveys. The Turnpike Authority and its employees and contractors shall
have the same right of entry for surveys, borings, soundings, or examinations as granted the
Department of Transportation in G.S. 136-120.
(e) Plans and Contract Documents. The requirements for registering right-of-way plans
set in G.S. 136-19.4 apply to right-of-way plans of the Turnpike Authority. In applying G.S.
129
136-19.4 to the Authority, references to the "Department" are considered references to the
"Turnpike Authority" and references to the "Board" are considered references to the
"Authority Board." Diaries and analyses for contracts of the Turnpike Authority are
subject to the same restrictions on disclosure that apply to diaries and analyses for contracts
of the Department under G.S. 136-28.5.
(f) Construction Claims. G.S. 136-29 applies to the adjustment and resolution of Turnpike
project construction claims. In applying G.S. 136-29 to the Turnpike Authority, references
to the "Department of Transportation," the "Chief Engineer," and a "State highway" are
considered references to the "Turnpike Authority," the "chief engineer of the Turnpike
Authority," and a "Turnpike project."
(g) Contract Exemptions. The following provisions concerning the purchase of goods and
services by a State agency do not apply to the Turnpike Authority: (1) Article 3 of Chapter
143 of the General Statutes. The Authority may use the services of the Department of
Administration in procuring goods and services that are not specific to establishing and
operating a toll revenue system. However, the Authority shall: (i) submit all proposed
contracts for supplies, materials, printing, equipment, and contractual services that exceed
one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or
the Attorney General's designee for review as provided in G.S. 114-8.3; and, (ii) include in
all proposed contracts to be awarded by the Authority under this subdivision a standard
clause which provides that the State Auditor and internal auditors of the Authority may
audit the records of the contractor during NC General Statutes - Chapter 136 Article 6H 11
and after the term of the contract to verify accounts and data affecting fees and
performance. The Authority shall not award a cost plus percentage of cost agreement or
contract for any purpose. (2) Article 14 of Chapter 143B of the General Statutes. The
Authority may use the services of the Department of Information Technology in procuring
goods and services that are not specific to establishing and operating a toll revenue system.
However, all contract information for contracts for information technology are subject to
disclosure in accordance with Article 14 of Chapter 143B of the General Statutes.
(h) APA. Chapter 150B of the General Statutes does not apply to the Turnpike Authority,
except as provided in this section and G.S. 136-89.218. (2002-133, s. 1; 2006-228, s. 6; 2008225, s. 6; 2010-194, s. 20.1; 2011-326, s. 15(u); 2012-85, s. 8; 2015-241, s. 7A.4(m).)
136-89.195. Internet report of funds expended.
The Department shall publish and update annually on its Internet web site a record of all
expenditures of the Authority for highway construction, maintenance, and administration.
The record shall include a total expenditure amount by county. For each Turnpike Project,
the record shall include a readily identifiable project name or location, the nature of the
project, the amount of the project, the contractor for the project, the date of project letting,
and the actual or expected project completion date. (2002-133, s. 1.)
136-89.196. Removal of tolls.
The Authority shall, upon fulfillment of and subject to any restrictions included in the
agreements entered into by the Authority in connection with the issuance of the Authority's
revenue bonds, remove tolls from a Turnpike Project. (2002-133, s. 1.)
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136-89.197. Maintenance of nontoll routes.

The Department shall maintain an existing, alternate, comparable nontoll route
corresponding to each Turnpike Project constructed pursuant to this Article. (2002-133, s.
1.)
136-89.198. Authority to toll existing interstate highways.
(a) General. Notwithstanding any other provision of this Article, the Authority may collect
tolls on any existing interstate highway for which the United States Department of
Transportation has granted permission by permit, or any other lawful means, to do so. The
revenue generated from the collected tolls shall be used by the Authority to repair and
maintain the interstate on which the tolls were collected. These revenues shall not be used to
repair, maintain, or upgrade any State primary or secondary road adjacent to or connected
with the interstate highways.
(b) Method. The Authority shall establish toll locations on the permitted interstate
highway in accordance with federal guidelines. Toll locations shall be erected at or near the
NC General Statutes - Chapter 136 Article 6H 12 borders of the State and at such other
locations that are not impracticable, unfeasible, or that would result in an unsafe or
hazardous condition.
(c) Severability. If any provision of this section or its application is held invalid, the
invalidity does not affect other provisions or applications of this section that can be given
effect without the invalid provisions or application, and to this end the provisions of this
section are severable. (2005-276, s. 28.21(b).)
136-89.199. Designation of high-occupancy toll and managed lanes.
Notwithstanding any other provision of this Article, the Authority may designate one or
more lanes of any highway, or portion thereof, within the State, including lanes that may
previously have been designated as HOV lanes under G.S. 20-146.2, as high-occupancy toll
(HOT) or other type of managed lanes; provided, however, that such designation shall not
reduce the number of existing non-toll general purpose lanes. In making such designations,
the Authority shall specify the high-occupancy requirement or other conditions for use of
such lanes, which may include restricting vehicle types, access controls, or the payment of
tolls for vehicles that do not meet the high-occupancy requirements or conditions for use.
(2013-183, s. 5.5; 2013-410, s. 38(e).) 136-89.200: Reserved for future codification
purposes.
136-89.201: Reserved for future codification purposes.
131

136-89.209: Reserved for future codification purposes. Part 2. Collection of Tolls on
Turnpike Projects.
The definitions in G.S. 136-89.181 and the following definitions apply in this Article:
(1) Reserved.
(2) Open road toll. A toll payable under an open road tolling system.
(3) Open road tolling system. A system of collecting a toll for the use of a highway that
does not provide a way to pay the toll in cash while traveling on the highway. (2008-225, s.
2; 2013-410, s. 12.)
136-89.211. Tolls for use of Turnpike project.
In exercising its authority under G.S. 136-89.183 to set tolls for the use of a Turnpike
project, the Authority may not do any of the following: (1) Set open road tolls that vary for
the same class of motor vehicle depending on the method by which the Authority identifies a
motor vehicle that drives on the Turnpike project. This does not preclude the Authority
from allowing a discount for a motor vehicle equipped with an electronic toll collection
transponder or a motor vehicle that has prepaid its toll. (2) Exempt a motor vehicle that is
not a law enforcement vehicle, an emergency fire or rescue vehicle, or an emergency
medical services vehicle from the requirement of paying a toll for the use of a Turnpike
project. (2008-225, s. 2; 2010-133, s. 2.)
136-89.212. Payment of toll required for use of Turnpike project.
(a) A motor vehicle that is driven on a Turnpike project is subject to a toll imposed by the
Authority for the use of the project. If the toll is an open road toll, the person who is the
registered owner of the motor vehicle is liable for payment of the toll unless the registered
owner establishes that the motor vehicle was in the care, custody, and control of another
person when it was driven on the Turnpike project.
(b) A person establishes that a motor vehicle was in the care, custody, and control of another
person when it was driven on a Turnpike project by submitting to the Authority a sworn
affidavit stating one of the following: (1) The name and address of the person who had the
care, custody, and control of the motor vehicle when it was driven. If the motor vehicle was
leased or rented under a long-term lease or rental, as defined in G.S. 105-187.1, the affidavit
must be supported by a copy of the lease or rental agreement or other written evidence of
the agreement. NC General Statutes - Chapter 136 Article 6H 14 (2) The motor vehicle was
stolen. The affidavit must be supported by an insurance or police report concerning the
theft or other written evidence of the theft. (3) The person transferred the motor vehicle to
another person by sale or otherwise before it was driven on the Turnpike project. The
affidavit must be supported by insurance information, a copy of the certificate of title, or
other evidence of the transfer.
(c) If a person establishes that a motor vehicle was in the care, custody, and control of
another person under subsection (b) of this section, the other person shall be liable for the
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payment of the toll, and the Authority may send a bill to collect and enforce the toll in
accordance with this Article; provided, however, that such other person may contest such
toll in accordance with this Article. (2008-225, s. 2; 2013-183, s. 5.6.)
136-89.213. Administration of tolls and requirements for open road tolls.
(a) Administration. The Authority is responsible for collecting tolls on Turnpike projects.
In exercising its authority under G.S. 136-89.183 to perform or procure services required by
the Authority, the Authority may contract with one or more providers to perform part or all
of the collection functions and may enter into agreements to exchange information,
including confidential information under subsection (a1) of this section, that identifies
motor vehicles and their owners with one or more of the following entities: the Division of
Motor Vehicles of the Department of Transportation, another state, another toll operator, a
toll collection-related organization, or a private entity that has entered into a partnership
agreement with the Authority pursuant to G.S. 136-89.183(a)(17). Further, the Authority
may assign its authority to fix, revise, charge, retain, enforce, and collect tolls and fees
under this Article to a private entity that has entered into a partnership agreement with the
Authority pursuant to G.S. 136-89.183(a)(17).
(a1) Identifying information obtained by the Authority through an agreement is not a public
record and is subject to the disclosure limitations in 18 U.S.C. 2721, the federal Driver's
Privacy Protection Act. The Authority shall maintain the confidentiality of all information
required to be kept confidential under 18 U.S.C. 2721(a), as well as any financial
information, transaction history, and information related to the collection of a toll or user
fee from a person, including, but not limited to, photographs or other recorded images or
automatic vehicle identification or driver account information generated by radiofrequency identification or other electronic means. Notwithstanding the provisions of this
section: (1) The account holder may examine his own account information, and the
Authority may use the account information only for purposes of collecting and enforcing
tolls. (2) A party, by authority of a proper court order, may inspect and examine confidential
account information.
(b) Open Road Tolls. If a Turnpike project uses an open road tolling system, the Authority
must operate a facility that is in the immediate vicinity of the Turnpike project NC General
Statutes - Chapter 136 Article 6H 15 or provide an alternate means to accept cash payment
of the toll and must place signs on the Turnpike project that give drivers the following
information: (1) Notice that the driver is approaching a highway for which a toll is required.
Signs providing this information must be placed before the toll is incurred. (2) The methods
by which the toll may be paid. (3) If applicable, directions to the nearby facility that accepts
cash payment of the toll. (2008-225, s. 2; 2012-78, s. 12; 2013-183, s. 5.6.)
136-89.214. Bill for unpaid open road toll.
(a) Bill. If a motor vehicle travels on a Turnpike project that uses an open road tolling
system and a toll for traveling on the project is not paid prior to travel or at the time of
travel, the Authority must send a bill by first-class mail to the registered owner of the motor
vehicle or the person who had care, custody, and control of the vehicle as established under
G.S. 136-89.212(b) for the amount of the unpaid toll. The Authority must send the bill
within 90 days after the travel occurs, or within 90 days of receipt of a sworn affidavit
submitted under G.S. 136-89.212(b) identifying the person who had care, custody, and
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control of the motor vehicle. If a bill is not sent within the required time, the Authority
waives collection of the toll. The Authority must establish a billing period for unpaid open
road tolls that is no shorter than 15 days. A bill for a billing period must include all unpaid
tolls incurred by the same person during the billing period.
(b) Information on Bill. A bill sent under this section must include all of the following
information: (1) The name and address of the registered owner of the motor vehicle that
traveled on the Turnpike project or of the person identified under G.S. 136-89.212(b). (2)
The date the travel occurred, the approximate time the travel occurred, and each segment
of the Turnpike project on which the travel occurred. (3) An image of the registration plate
of the motor vehicle, if the Authority captured an electronic image of the motor vehicle
when it traveled on the Turnpike project. (4) The amount of the toll due and an explanation
of how payment may be made. (5) The date by which the toll must be paid to avoid the
imposition of a processing fee under G.S. 136-89.215 and the amount of the processing fee.
(6) A statement that a vehicle owner who has unpaid tolls is subject to a civil penalty and
may not renew the vehicle's registration until the tolls and civil penalties are paid. (7) A
clear and concise explanation of how to contest liability for the toll. NC General Statutes Chapter 136 Article 6H 16 (8) If applicable, a copy of the affidavit submitted under G.S.
136-89.212(b) identifying the person with care, custody, and control of the motor vehicle.
(2008-225, s. 2; 2010-133, s. 3; 2013-183, s. 5.6.)
136-89.215. Required action upon receiving bill for open road toll and processing fee for
unpaid toll.
(a) Action Required. A person who receives a bill from the Authority for an unpaid open
road toll must take one of the following actions within 30 days of the date of the bill: (1) Pay
the bill. (2) Send a written request to the Authority for a review of the toll.
(b) Fee. If a person does not take one of the actions required under subsection (a) of this
section within the required time, the Authority may add a processing fee to the amount the
person owes. The processing fee may not exceed six dollars ($6.00). A person may not be
charged more than forty-eight dollars ($48.00) in processing fees in a 12-month period. The
Authority must set the processing fee at an amount that does not exceed the costs of
collecting the unpaid toll. (2008-225, s. 2; 2010-133, s. 4; 2013-183, s. 5.6.)
136-89.216. Civil penalty for failure to pay open road toll.
(a) Penalty. A person who receives two or more bills for unpaid open road tolls and who
has not paid the amount due on those bills within 30 days is subject to a civil penalty of
twenty-five dollars ($25.00). Only one penalty may be assessed in a six-month period.
(b) Payment. The Authority must send a notice by first-class mail to a person who is
assessed a civil penalty under this section. A person who is assessed a civil penalty must pay
the unpaid toll for which the civil penalty was imposed, the amount of any processing fee
due, and the civil penalty within 30 days of the date of the notice.
(c) Penalty Proceeds. A civil penalty imposed under this section is payable to the
Authority. The clear proceeds of a civil penalty imposed under this section must be credited
to the Civil Penalty and Forfeiture Fund established in G.S. 115C-457.1. The guidelines used
by the Office of State Budget and Management to determine an agency's actual costs of
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collecting a civil penalty and the clear proceeds of the civil penalty apply to the
determination of the clear proceeds of a civil penalty imposed under this section. (2008-225,
s. 2; 2010-133, s. 5.)
136-89.217. Vehicle registration renewal blocked for unpaid open road toll.
(a) Registration Block. Failure of a person to pay an open road toll billed to the person
under G.S. 136-89.214, any processing fee added under G.S. 136-89.215, and any civil
penalty imposed under G.S. 136-89.216, as well as any toll, processing fee, or civil penalty
owed to another tolling jurisdiction with which the Authority has a valid NC General
Statutes - Chapter 136 Article 6H 17 reciprocal toll enforcement agreement under G.S. 13689.220, is grounds under G.S. 20-54 to withhold the registration renewal of a motor vehicle
registered in that person's name. The Authority must notify the Commissioner of Motor
Vehicles of a person who owes a toll, a processing fee, or a civil penalty. When notified, the
Commissioner of Motor Vehicles must withhold the registration renewal of any motor
vehicle registered in that person's name.
(b) Repealed by S.L. 2010-133, s. 6, effective December 1, 2010. (2008-225, s. 2; 2010-133, s.
6; 2012-85, s. 10.)
136-89.218. Procedures for contesting liability for unpaid open road toll.
(a) Informal Review. A person who receives a bill for an unpaid open road toll and who
disputes liability for the toll may contest the toll by sending to the Authority a request for
review of the toll. The person may include a sworn affidavit described in G.S. 136-89.212
that establishes that someone else had the care, custody, and control of the motor vehicle
subject to the toll when the toll was incurred. The person must send the request for review
to the Authority within 30 days of the date of the bill sent by the Authority. A person who
does not send a request for review to the Authority within this time limit waives the right to
a review. If a person sends a timely request for review to the Authority, the Authority may
not collect the disputed toll and any processing fee added to the bill for the toll until the
conclusion of the review process in this section.
(b) Administrative Hearing. If the Authority conducts an informal review under
subsection (a) of this section and determines that the person who requested the review is
liable for the toll, the Authority must send the person a notice informing the person of the
Authority's determination. The person may contest this determination by filing a petition
for a contested case hearing at the Office of Administrative Hearings in accordance with
Article 3 of Chapter 150B of the General Statutes.
(c) Judicial Review. Article 4 of Chapter 150B of the General Statutes governs judicial
review of a final decision made in a contested case authorized under subsection (b) of this
section. (2008-225, s. 2; 2010-133, s. 7.)
136-89.220. Reciprocal toll enforcement agreements.
The Authority may enter into reciprocal agreement with other tolling jurisdictions to
enforce toll violations. Such an agreement shall provide that, when another toll agency
certifies that the registered owner of a vehicle registered in this State has failed to pay a toll,
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processing fee, or civil penalty due to that toll agency, the unpaid toll, processing fee, or civil
penalty may be enforced by the Authority placing a renewal block as if it were an unpaid
toll, processing fee, or civil penalty owed to this State under G.S. 136-89.217. Such
agreement shall only be enforceable, however, if all of the following are true: NC General
Statutes - Chapter 136 Article 6H 18
(1) The other toll agency has its own effective reciprocal procedure for toll violation
enforcement and does, in fact, reciprocate in enforcing toll violations within this State by
withholding the registration renewal of registered owners of motor vehicles from the state of
the other toll agency.
(2) The other toll agency provides due process and appeal protections to avoid the likelihood
that a false, mistaken, or unjustified claim will be pursued against the owner of a vehicle
registered in this State.
(3) The owner of a vehicle registered in this State may present evidence to the other toll
agency by mail or other means to invoke rights of due process without having to appear
personally in the jurisdiction where the violation allegedly occurred.
(4) The reciprocal violation enforcement arrangement between the Authority and the other
toll agency provides that each party shall charge the other for costs associated with
registration holds in their respective jurisdictions. (2012-85, s. 11.)
Section 6: This Act is effective upon the date of April 25, 2016 when the next Senate and
House of Representatives is to convene.

78TH ANNUAL SESSION
NCSL SB 002
Short Title: An Act to Repeal HB 2
House Sponsor: Tori Southerland
Senate Sponsor: Joshua Glover
_
_
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AN ACT RESTORING POWER TO LOCAL GOVERNMENTS AND RESTORING
APPROPRIATE ACCOMMODATIONS FOR TRANSGENDER PERSONS IN PUBLIC
FACILITIES
Section 1. G.S. 115C-47 is amended by removing subdivision 63:
In addition to the powers and duties designated in G.S. 115C-36, local boards of
education shall have the power or duty:
"(63) To Establish Single-Sex Multiple Occupancy Bathroom and Changing Facilities.
Local boards of education shall establish single-sex multiple occupancy bathroom and
changing facilities as provided in G.S. 115C-521.2."
Section 2. Article 37 of Chapter 115C of the General Statutes is amended by removing
section 115C-521.2:
115C-521.2 Single-sex multiple occupancy bathroom and changing facilities.
(a) Definitions. The following definitions apply in this section:
(1) Biological sex. The physical condition of being male or female, which is
stated on a person's birth certificate.
(2) Multiple occupancy bathroom or changing facility. A facility designed or
designated to be used by more than one person at a time where students may be
in various states of undress in the presence of other persons. A multiple
occupancy bathroom or changing facility may include, but is not limited to, a
school restroom, locker room, changing room, or shower room.
(3) Single occupancy bathroom or changing facility. A facility designed or
designated to be used by only one person at a time where students may be in
various states of undress. A single occupancy bathroom or changing facility may
include, but is not limited to, a single stall restroom designated as unisex or for
use based on biological sex.
(b) Single-Sex Multiple Occupancy Bathroom and Changing Facilities. Local boards of
education shall require every multiple occupancy bathroom or changing facility that is
designated for student use to be designated for and used only by students based on their
biological sex.
(c) Accommodations Permitted. Nothing in this section shall prohibit local boards of
education from providing accommodations such as single occupancy bathroom or
changing facilities or controlled use of faculty facilities upon a request due to special
circumstances, but in no event shall that accommodation result in the local boards of
education allowing a student to use a multiple occupancy bathroom or changing facility
designated under subsection (b) of this section for a sex other than the student's biological
sex.
(d) Exceptions. This section does not apply to persons entering a multiple occupancy
bathroom or changing facility designated for use by the opposite sex:
(1) For custodial purposes.
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(2) For maintenance or inspection purposes.

(3) To render medical assistance.
(4) To accompany a student needing assistance when the assisting individual is
an employee or authorized volunteer of the local board of education or the
student's parent or authorized caregiver.
(5) To receive assistance in using the facility.
(6) To accompany a person other than a student needing assistance.
(7) That has been temporarily designated for use by that person's biological sex."
Section 3. Chapter 143 of the General Statutes is amended by removing Article 81
which reads:
"Article 81.
"Single-Sex Multiple Occupancy Bathroom and Changing Facilities.
" 143-760. Single-sex multiple occupancy bathroom and changing facilities.
(a) Definitions. The following definitions apply in this section:
(1) Biological sex. The physical condition of being male or female, which is
stated on a person's birth certificate.
(2) Executive branch agency. Agencies, boards, offices, departments, and
institutions of the executive branch, including The University of North Carolina
and the North Carolina Community College System.
(3) Multiple occupancy bathroom or changing facility. A facility designed or
designated to be used by more than one person at a time where persons may be in
various states of undress in the presence of other persons. A multiple occupancy
bathroom or changing facility may include, but is not limited to, a restroom,
locker room, changing room, or shower room.
(4) Public agency. Includes any of the following:
a. Executive branch agencies.
b. All agencies, boards, offices, and departments under the direction and
control of a member of the Council of State.
c. "Unit" as defined in G.S. 159-7(b)(15).
d. "Public authority" as defined in G.S. 159-7(b)(10).
e. A local board of education.
f. The judicial branch.
g. The legislative branch.
h. Any other political subdivision of the State.
(5) Single occupancy bathroom or changing facility. A facility designed or
designated to be used by only one person at a time where persons may be in
various states of undress. A single occupancy bathroom or changing facility may
include, but is not limited to, a single stall restroom designated as unisex or for
use based on biological sex.
(b) Single-Sex Multiple Occupancy Bathroom and Changing Facilities. Public agencies
shall require every multiple occupancy bathroom or changing facility to be designated for
and only used by persons based on their biological sex.
(c) Accommodations Permitted. Nothing in this section shall prohibit public agencies
from providing accommodations such as single occupancy bathroom or changing
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facilities upon a person's request due to special circumstances, but in no event shall that
accommodation result in the public agency allowing a person to use a multiple occupancy
bathroom or changing facility designated under subsection (b) of this section for a sex
other than the person's biological sex.
(d) Exceptions. This section does not apply to persons entering a multiple occupancy
bathroom or changing facility designated for use by the opposite sex:
(1) For custodial purposes.
(2) For maintenance or inspection purposes.
(3) To render medical assistance.
(4) To accompany a person needing assistance.
(5) That has been temporarily designated for use by that person's biological sex."
(a) This Article shall be known and may be cited as the "Wage and Hour Act."
(b) The public policy of this State is declared as follows: The wage levels of employees,
hours of labor, payment of earned wages, and the well-being of minors are subjects of
concern requiring legislation to promote the general welfare of the people of the State
without jeopardizing the competitive position of North Carolina business and industry.
The General Assembly declares that the general welfare of the State requires the
enactment of this law under the police power of the State.
(c) The provisions of this Article supersede and preempt any ordinance, regulation,
resolution, or policy adopted or imposed by a unit of local government or other political
subdivision of the State that regulates or imposes any requirement upon an employer
pertaining to compensation of employees, such as the wage levels of employees, hours of
labor, payment of earned wages, benefits, leave, or well-being of minors in the
workforce. This subsection shall not apply to any of the following:
(1) A local government regulating, compensating, or controlling its own
employees.
(2) Economic development incentives awarded under Part 2H of Article 10 of
Chapter 143B of the General Statutes.
(3) Economic development incentives awarded under Article 1 of Chapter 158 of
the General Statutes.
(4) A requirement of federal community development block grants.
(5) Programs established under G.S. 153A-376 or G.S. 160A-456."
(a) It is the public policy of this State to protect and safeguard the right and opportunity
of all persons to seek, obtain and hold employment without discrimination or
abridgement on account of race, religion, color, national origin, age, biological sex,
sexual orientation, gender identity or handicap by employers which regularly employ 15
or more employees.
(b) It is recognized that the practice of denying employment opportunity and
discriminating in the terms of employment foments domestic strife and unrest, deprives
the State of the fullest utilization of its capacities for advancement and development, and
substantially and adversely affects the interests of employees, employers, and the public
in general.
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(c) The General Assembly declares that the regulation of discriminatory practices in
employment is properly an issue of general, statewide concern, such that this Article and
other applicable provisions of the General Statutes supersede and preempt any ordinance,
regulation, resolution, or policy adopted or imposed by a unit of local government or
other political subdivision of the State that regulates or imposes any requirement upon an
employer pertaining to the regulation of discriminatory practices in employment, except
such regulations applicable to personnel employed by that body that are not otherwise in
conflict with State law."
Section 6. Chapter 143 of the General Statutes is amended by removing Article 49B
which reads:
Article 49B
Equal Access to Public Accommodations
" 143-422.10. Short title.
This Article shall be known and may be cited as the Equal Access to Public
Accommodations Act.
" 143-422.11. Legislative declaration.
(a) It is the public policy of this State to protect and safeguard the right and
opportunity of all individuals within the State to enjoy fully and equally the
goods, services, facilities, privileges, advantages, and accommodations of places
of public accommodation free of discrimination because of race, religion, color,
national origin, or biological sex, provided that designating multiple or single
occupancy bathrooms or changing facilities according to biological sex, as
defined in G.S. 143-760(a)(1), (3), and (5), shall not be deemed to constitute
discrimination.
(b) The General Assembly declares that the regulation of discriminatory practices
in places of public accommodation is properly an issue of general, statewide
concern, such that this Article and other applicable provisions of the General
Statutes supersede and preempt any ordinance, regulation, resolution, or policy
adopted or imposed by a unit of local government or other political subdivision
of the State that regulates or imposes any requirement pertaining to the regulation
of discriminatory practices in places of public accommodation.
" 143-422.12. Places of public accommodation defined.
For purposes of this Article, places of public accommodation has the same
meaning as defined in G.S. 168A-3(8), but shall exclude any private club or other
establishment not, in fact, open to the public.
" 143-422.13. Investigations; conciliations.
The Human Relations Commission in the Department of Administration shall
have the authority to receive, investigate, and conciliate complaints of
discrimination in public accommodations. Throughout this process, the Human
Relations Commission shall use its good offices to effect an amicable resolution
of the complaints of discrimination. This Article does not create, and shall not be
construed to create or support, a statutory or common law private right of action,
and no person may bring any civil action based upon the public policy expressed
herein."
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Section 7. This act is effective when it becomes law and applies to any action taken on or
after that date, to any ordinance, resolution, regulation, or policy adopted or amended on
or after that date, and to any contract entered into on or after that date.

79TH ANNUAL SESSION
NCSL SB 003
Short Title: NC Scrap Tire

House Sponsor:
Senate Sponsor: Andre Jefferies, President Pro Tempore
Referred To: Transportation
141
A BILL TO BE ENACTED
AN ACT TO REPEAL ARTICLE 5B SCRAP TIRE DISPOSAL TAX

Section 1: G.S. Article 5B 105-187.15 105-187.19 reads as rewritten:
The definitions in G.S. 105-164.3 apply to this Article, except that the term "sale" does
not include lease or rental, and the following definitions apply to this Article:
(1) Scrap tire. A tire that is no longer suitable for its original, intended purpose
because of wear, damage, or defect.
(2) Tire. A continuous solid or pneumatic rubber covering encircling a wheel.
(1991, c. 221, s. 1.)
105-187.16. Tax imposed.
(a)
(b)
Levy. A privilege tax is imposed on a tire retailer at a percentage rate of the sales price of each
new tire sold at retail by the retailer. A privilege tax is imposed on a tire retailer and on a tire
wholesale merchant at a percentage rate of the sales price of each new tire sold by the retailer or
wholesale merchant to a wholesale merchant or retailer for placement on a vehicle offered for
sale, lease, or rental by the retailer or wholesale merchant. An excise tax is imposed on a new tire
purchased for storage, use, or consumption in this State or for placement in this State on a vehicle
offered for sale, lease, or rental. This excise tax is a percentage rate of the purchase price of the
tire. These taxes are in addition to all other taxes.
Rate. The percentage rate of the taxes imposed by subsection (a) of this section is set
by the following table; the rate is based on the bead diameter of the new tire sold
or purchased: Bead Diameter of Tire Percentage Rate Less than 20 inches 2% At
least 20 inches 1%. (1991, c. 221, s. 1; 1993, c. 548, s. 1; 1997-209, s. 1; 2001414, s. 22; 2002-10, s. 1.)
105-187.17. Administration.
The privilege tax this Article imposes on a tire retailer who sells new tires at retail is an
additional State sales tax and the excise tax this Article imposes on the storage, use, or
consumption of a new tire in this State is an additional State use tax. Except as otherwise
provided in this Article, these taxes shall be collected and administered in the same manner as the
State sales and use taxes imposed by Article 5 of this Chapter. As under Article 5 of this Chapter,
the additional State sales tax paid when a new tire is sold is a credit against the additional State
use tax imposed on the storage, use, or consumption of the same tire.
The privilege tax this Article imposes on a tire retailer and on a tire wholesale merchant
who sell new tires for placement in this State on a vehicle offered for sale, lease, or rental is a tax
on the wholesale sale of the tires. This tax and the excise tax this Article imposes on a new tire
purchased for placement in this State on a vehicle offered for sale, lease, or rental shall, to the
extent practical, be collected and administered as if they were additional State sales and use taxes.
The privilege tax paid when a new tire is sold for placement on a vehicle offered for sale, lease,
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or rental is a credit against the use tax imposed on the purchase of the same tire for placement in
this State on a vehicle offered for sale, lease, or rental. (1991, c. 221, s. 1.)
105-187.18. Exemptions.
(a) The taxes imposed by this Article do not apply to:
(1) Bicycle tires and other tires for vehicles propelled by human power.
(2) Recapped tires.
(3) Tires sold for placement on newly manufactured vehicles.
(b) Except for the exemption for sales a state cannot constitutionally tax, the exemptions
and refunds allowed in Article 5 of this Chapter do not apply to the taxes imposed by this
Article. (1991, c. 221, s. 1; 1991 (Reg. Sess., 1992), c. 867, s. 1; 1993, c. 364, s. 2; 2003416, s. 19(a); 2010-166, s. 3.4.)
105-187.19. Use of tax proceeds.
(a)
The Secretary shall distribute the taxes collected under this Article, less the
allowance to the Department of Revenue for administrative expenses, in accordance with this
section. The Secretary may retain the cost of collection by the Department, not to exceed four
hundred twenty-five thousand dollars ($425,000) a year, as reimbursement to the Department.
(b)
Each quarter, the Secretary shall credit thirty percent (30%) of the net tax
proceeds to the General Fund. 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.
(c)
A county may use funds distributed to it under this section only as provided in
G.S. 130A-309.54. A county that receives funds under this section and that has an agreement with
another unit of local government under which the other unit of local government provides for the
disposal of solid waste for the county shall transfer the amount received under this section to the
other unit of local government. A unit of local government to which funds are transferred is
subject to the same restrictions on use of the funds as the county. (1991, c. 221, s. 1; 1993, c. 485,
s. 13; c. 548, ss. 2, 8; 1997-209, ss. 1, 3; 2004-203, s. 5(h); 2007-153, s. 1; 2007-323, s. 24.2;
2009-451, s. 13.3B(a); 2013-360, s. 14.16(a).)
Section 2: G.S. Article 5A 105-187.3. Rate of tax and 105-187.9. Disposition of tax proceeds
reads as rewritten:
(a1)
Tax Rate. The tax rate is three five percent (3%5%). The maximum tax is two
thousand seven-hundred fifty dollars ($2,000 $2,750) for each certificate of title issued for a
Class A or Class B motor vehicle that is a commercial motor vehicle, as defined in G.S. 20-4.01,
and for each certificate of title issued for a recreational vehicle. The tax is payable as provided in
G.S. 105-187.4.
105-187.9. Disposition of tax proceeds.
(a)
Distribution. Taxes collected under this Article at the rate of eight percent (8%) shall be
credited to the General Fund. Taxes collected under this Article at the rate of three five percent
(3% 5%) shall be credited to the North Carolina Highway Trust Fund.
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(b)
Repealed by Session Laws 2010-31, s. 28.7(i), and Session Laws 2013-183, s. 4.1,
effective July 1, 2013.
(c)
Repealed by Session Laws 2013-183, s. 4.1, effective July 1, 2013. (1989, c. 692, s. 4.1;
c. 799, s. 33; 1993, c. 321, s. 164(a); 2001-424, s. 34.24(c); 2001-513, s. 15; 2008-107, s. 25.5(a),
(c), (e); 2010-31, s. 28.7(f), (h)-(j); 2011-145, ss. 28.33(c), (d); 2011-391, s. 57; 2012-142, s.
24.8(b); 2013-183, s. 4.1.)
Section 3 : G.S. Article 6H 136-89.180 - 136-89.220 reads as rewritten
136-89.180. Legislative findings.
The General Assembly finds that the existing State road system is becoming increasingly
congested and overburdened with traffic in many areas of the State; that the sharp surge of
vehicle miles traveled is overwhelming the State's ability to build and pay for adequate road
improvements; and that an adequate answer to this challenge will require the State to be
innovative and utilize several new approaches to transportation improvements in North Carolina.
Toll funding of highway and bridge construction is feasible in North Carolina and can contribute
to addressing the critical transportation needs of the State. A toll program can speed the
implementation of needed transportation improvements by funding some projects with tolls.
(2002-133, s. 1.)
The following definitions apply to this Article:
(1) Department. The North Carolina Department of Transportation.
(2) Turnpike Authority. The public agency created by this Article.
(3) Authority Board. The governing board of the Turnpike Authority.
(4) Turnpike project. Either of the following: a. A road, bridge, or tunnel project planned, or
planned and constructed, in accordance with the provisions of this Article. b. A segment of the
State highway system the Authority Board converts to a tolled highway pursuant to the
authorization in G.S. 136-89.187.
(5) Turnpike system. All Turnpike projects. (2002-133, s. 1; 2008-225, s. 3.)
136-89.182. North Carolina Turnpike Authority.
(a) Creation. There is created a body politic and corporate to be known as the "North Carolina
Turnpike Authority". The Authority is constituted as a public agency, and the exercise by the
Authority of the powers conferred by this Article in the construction, operation, and maintenance
of toll roads and bridges shall be deemed and held to be the performance of an essential
governmental function.
(b) Administrative Placement. The Authority shall be located within the Department of
Transportation and shall be subject to and under the direct supervision of the Secretary of
Transportation.
(c) Authority Board. The North Carolina Turnpike Authority shall be governed by a ninemember Authority Board consisting of two members appointed by the General Assembly upon
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the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121,
two members appointed by the General Assembly upon the recommendation of the Speaker of the
House of Representatives in accordance with G.S. 120-121, four members appointed by the
Governor, and the Secretary of NC General Statutes - Chapter 136 Article 6H 2 Transportation.
Each appointing authority shall appoint members who reside in diverse regions of the State. The
Chair of the Authority shall be selected by the Authority Board.
(d) Board of Transportation Members. Members of the North Carolina Board of Transportation
may serve as members of the Authority Board.
(e) Staggered Terms. One of the initial appointments to the Authority Board by the General
Assembly upon the recommendation of the President Pro Tempore of the Senate, one of the initial
appointments to the Authority Board by the General Assembly upon the recommendation of the
Speaker of the House of Representatives, and three of the initial appointments of the Governor
shall be appointed to terms ending January 14, 2007. One of the initial appointments to the
Authority Board by the General Assembly upon the recommendation of the President Pro
Tempore of the Senate, one of the initial appointments to the Authority Board by the General
Assembly upon the recommendation of the Speaker of the House of Representatives, and one of
the initial appointments of the Governor shall be appointed to terms ending January 14, 2005. The
Secretary of Transportation shall serve as an ex officio voting member of the Board. Thereafter, at
the expiration of each stipulated term of office, all appointments shall be to a term of four years
from the date of the expiration of the term.
(f) Vacancies. All members of the Authority Board shall remain in office until their successors
are appointed and qualified. The original appointing authority may appoint a member to serve out
the unexpired term of any member.
(g) Removal of Board Members. Each member of the Authority Board, notwithstanding
subsection (e) of this section, shall serve at the pleasure of the appointing authority. The Chair of
the Authority serves at the pleasure of the Authority Board.
(h) Conflicts of Interest, Ethics. Members of the Authority Board shall be subject to the
provisions of G.S. 136-13, 136-13.1, and 136-14.
(i) Compensation. The appointed members of the Authority Board shall receive no salary for
their services but shall be entitled to receive per diem and travel allowances in accordance with
the provisions of G.S. 138-5 and G.S. 138-6 as appropriate.
(j) Bylaws. The Authority Board shall adopt, change, or amend bylaws with respect to the
calling of meetings, quorums, voting procedures, the keeping of records, and other organizational,
staffing, and administrative matters as the Authority Board may determine. Any bylaws, or
subsequent changes or amendments to the bylaws, shall be included in the Annual Report as
required by G.S. 136-89.193.
(k) Executive Director and Administrative Employees. The Authority Board shall appoint an
Executive Director, whose salary shall be fixed by the Authority, to serve at its pleasure. The
Executive Director shall be the Authority's chief administrative officer and shall be responsible
for the daily administration of the toll roads and bridges constructed, maintained, or operated
pursuant to this Article. The Executive Director or his designee shall appoint, employ, dismiss,
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and, within the limits approved by the Authority Board, fix the compensation of administrative
employees as the Executive Director deems necessary to carry out this Article.
(l) Office. The offices of the Authority may be housed in one or more facilities of the
Department of Transportation. (2002-133, s. 1; 2009-343, ss. 1, 2; 2011-145, s. 28.35(c).)
136-89.183. Powers of the Authority.
(a) The Authority shall have all of the powers necessary to execute the provisions of this Article,
including the following:
(1) The powers of a corporate body, including the power to sue and be sued, to make contracts, to
adopt and use a common seal, and to alter the adopted seal as needed.
(2) To study, plan, develop, and undertake preliminary design work on Turnpike Projects. At the
conclusion of these activities, the Turnpike Authority is authorized to design, establish, purchase,
construct, operate, and maintain no more than eleven projects, which shall include the following:
a. Triangle Expressway, including segments also known as N.C. 540, Triangle Parkway, and the
Western Wake Freeway in Wake and Durham Counties. The described segments constitute one
project.
b. Repealed by Session Laws 2013-183, s. 5.1, effective July 1, 2013.
c. Monroe Connector/Bypass.
d., e. Repealed by Session Laws 2013-183, s. 5.1, effective July 1, 2013.
f. Repealed by Session Laws 2008-225, s. 4, effective August 17, 2008.
(3) Repealed by Session Laws 2005-275, s. 2, effective August 12, 2005.
(4) To rent, lease, purchase, acquire, own, encumber, dispose of, or mortgage real or personal
property, including the power to acquire property by eminent domain pursuant to G.S. 13689.184.
(5) To fix, revise, charge, retain, enforce, and collect tolls and fees for the use of the Turnpike
Projects. Thirty days prior to the effective date of any toll or fee for use of a Turnpike Facility, the
Authority shall submit a description of the proposed toll or fee to the Board of Transportation, the
Joint Legislative Transportation Oversight Committee and the Joint Legislative Commission on
Governmental Operations for review.
(6) To issue bonds or notes of the Authority as provided in this Article.
(6a) To invest the proceeds of bonds or notes of the Authority that are pending disbursement or
other idle funds of the Authority in any investment authorized by G.S. 159-30.
(7) To establish, construct, purchase, maintain, equip, and operate any structure or facilities
associated with the Turnpike System. NC General Statutes - Chapter 136 Article 6H 4 (8) To pay
all necessary costs and expenses in the formation, organization, administration, and operation of
the Authority.
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(9) To apply for, accept, and administer loans and grants of money or real or personal property
from any federal agency, the State or its political subdivisions, local governments, or any other
public or private sources available.
(10) To adopt, alter, or repeal its own bylaws or rules implementing the provisions of this Article,
in accordance with the review and comment requirements of G.S. 136-89.182(j).
(11) To utilize employees of the Department; to contract for the services of consulting engineers,
architects, attorneys, real estate counselors, appraisers, and other consultants; to employ
administrative staff as may be required in the judgment of the Authority; and to fix and pay fees
or compensation to the Department, contractors, and administrative employees from funds
available to the Authority.
(12) To receive and use appropriations from the State and federal government.
(13) To adopt procedures to govern its procurement of services and delivery of Turnpike Projects.
(14) To perform or procure any portion of services required by the Authority.
(15) To use officers, employees, agents, and facilities of the Department for the purposes and
upon the terms as may be mutually agreeable.
(16) To contract for the construction, maintenance, and operation of a Turnpike Project.
(17) To enter into partnership agreements with the Department of Transportation, agreements with
political subdivisions of the State, and agreements with private entities, and to expend such funds
as it deems necessary, pursuant to such agreements, for the purpose of financing the cost of
acquiring, constructing, equipping, operating, or maintaining any Turnpike Project. An agreement
entered under this subdivision requires the concurrence of the Board of Transportation if the
Department of Transportation is a party to the agreement.
(18) To utilize incentives in any contract for development or construction of a Turnpike Project,
in order to promote expedited delivery of the project.
(19) To enter into reciprocal toll enforcement agreements with other toll agencies, as provided in
G.S. 136-89.220.
(b) To execute the powers provided in subsection (a) of this section, the Authority shall determine
its policies by majority vote of the members of the Authority Board present and voting, a quorum
having been established. Once a policy is established, the Authority Board shall communicate it
to the Executive Director or the Executive Director's designee, who shall have the sole and
exclusive authority to execute the policy of the Authority. No member of the Authority Board
shall have the responsibility or NC General Statutes - Chapter 136 Article 6H 5 authority to give
operational directives to any employee of the Authority other than the Executive Director or the
Director's designee. (2002-133, s. 1; 2005-275, s. 2; 2006-228, s. 5; 2006-230, s. 1(b); 2008-225,
s. 4; 2011-7, s. 1; 2011-145, s. 28.32(e); 2011-391, s. 56; 2012-85, s. 9; 2013-94, s. 1; 2013-183,
ss. 5.1, 5.3; 2015-241, ss. 29.12(a), 29.15A.)
136-89.183A. Accelerated Pilot Toll Bridge Project.
(a) Findings. The General Assembly finds that there is a need for a bridge connecting the
Currituck County mainland to the Currituck County Outer Banks; that the bridge should be
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implemented as a toll bridge; that the bridge should be implemented in a manner that protects the
natural environment and quality of life on the Outer Banks; and that the character of the existing
road system in Currituck County and Dare County Outer Banks should be preserved.
(b) Contract to Construct Accelerated Pilot Toll Bridge Project. The Authority shall contract
with a single private firm to design, obtain all necessary permits for, and construct the toll bridge
described in G.S. 136-89.183(a)(2), known as the Mid-Currituck Bridge, in order to provide
accelerated, efficient, and cost-effective completion of the project.
(c) Preconstruction Participation. In addition to the authority granted by G.S. 136-89.191, the
Department shall participate in the cost of preconstruction activities related to the project
described in this section, if requested by the Authority.
(d) Environmental Protection. The Authority shall ensure that the Mid-Currituck Bridge is
implemented in a manner that accomplishes all of the following: (1) Ensures the preservation of
water quality in Currituck Sound. (2) Mitigates the environmental impact of the bridge on the
Currituck County mainland and the Outer Banks. (3) Reduces traffic congestion and vehicle miles
traveled, and preserves the character of the existing road system, in Dare County and Currituck
County on the Outer Banks.
(e) Report on Project. The Authority shall report to the Joint Legislative Transportation
Oversight Committee on December 1, 2005, and each December 1 thereafter until completion, on
the progress of the accelerated pilot toll bridge project described in this section. (2005-275, s. 3;
2008-225, s. 11.)
136-89.183B. Accelerated Herbert C. Bonner Bridge Replacement Project.
(a) Contract for Accelerated Construction of the Herbert C. Bonner Replacement Bridge Project.
The Department of Transportation shall implement all reasonable measures to expedite
completion of environmental reviews required by the National Environmental Policy Act. Within
90 days of receiving an approved Record of Decision from the Federal Highway Administration,
the Department shall contract with a single private firm to design and build a replacement bridge
for the Herbert C. Bonner Bridge at Oregon Inlet, in accordance with G.S. 136-28.11, in order to
expedite and accelerate the efficient, cost effective completion of the project.
(b) Replacement Bridge; Termini. The General Assembly recommends that the replacement
bridge constructed pursuant to this section shall be located with north and south termini located in
general proximity to the termini of the existing Herbert C. Bonner Bridge. It is recognized,
however, that the preferred alternative for the bridge location cannot be determined prior to
compliance with all federal and State laws and regulations. NC General Statutes - Chapter 136
Article 6H 6
(c) Department to Report on Project. The Department shall report to the Joint Legislative
Transportation Oversight Committee on December 1, 2005, and each December 1 thereafter until
completion, on the progress of the accelerated bridge project described in this section. (2005-275,
s. 6(b); 2005-382, s. 3.)
136-89.183C. Accelerated Yadkin River Veterans Memorial Bridge Replacement Project.
(a) Contract for Accelerated Construction of the Yadkin River Veterans Memorial Bridge
Replacement Bridge Project. The Authority shall study, plan, develop, undertake preliminary
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design work, and analyze and list all necessary permits, in preparation for construction of a
replacement bridge and approaches for the Yadkin River Veterans Memorial Bridge over the
Yadkin River and between Rowan and Davidson Counties, in order to provide accelerated,
efficient, and cost-effective completion of the project.
(b) Replacement Bridge; Termini. The bridge constructed pursuant to this section shall be a
replacement bridge, with north and south termini located in general proximity to the termini of
the existing Yadkin River Veterans Memorial Bridge. (2007-299, s. 1; 2012-42, s. 3.)
136-89.184. Acquisition of real property.
(a) General. The Authority may acquire public or private real property by purchase, negotiation,
gift, or devise, or condemnation that it determines to be necessary and convenient for the
construction, expansion, enlargement, extension, improvement, or operation of a Turnpike
Project. When the Authority acquires real property owned by the State, the Secretary of the
Department of Administration shall execute and deliver to the Authority a deed transferring fee
simple title to the property to the Authority.
(b) Condemnation. To exercise the power of eminent domain, the Authority shall commence a
proceeding in its name and shall follow the procedure set forth in Article 9 of Chapter 136 of the
General Statutes. (2002-133, s. 1.)
136-89.185. Taxation of property of Authority.
Property owned by the Authority is exempt from taxation in accordance with Section 2 of Article
V of the North Carolina Constitution. (2002-133, s. 1.)
136-89.186. Audit.
The operations of the Authority shall be subject to the oversight of the State Auditor pursuant to
Article 5A of Chapter 147 of the General Statutes. (2002-133, s. 1.)
136-89.187. Conversion of free highways prohibited.
The Authority Board is prohibited from converting any segment of the nontolled State Highway
System to a toll facility, except for a segment of N.C. 540 under construction as of July NC
General Statutes - Chapter 136 Article 6H 7 1, 2006, located in Wake County and extending from
the N.C. 54 exit on N.C. 540 to the N.C. 55 exit on N.C. 540. No segment may be converted to a
toll route pursuant to this section unless first approved by the Metropolitan Planning Organization
(MPO) or Rural Planning Organization (RPO) of the area in which that segment is located. (2002133, s. 1; 2006-228, s. 3; 2008-225, s. 5.)
136-89.188. Use of revenues.
(a) Revenues derived from Turnpike Projects authorized under this Article shall be used only for
the following: (1) Authority administration costs. (2) Turnpike Project development, right-of-way
acquisition, design, construction, operation, maintenance, reconstruction, rehabilitation, and
replacement. (3) Debt service on the Authority's revenue bonds or related purposes such as the
establishment of debt service reserve funds. (4) Debt service, debt service reserve funds, and
other financing costs related to any of the following: a. A financing undertaken by a private entity
under a partnership agreement with the entity for a Turnpike Project. b. Private activity bonds
issued under law related to a Turnpike Project. c. Any federal or State loan, line of credit, or loan
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guarantee relating to a Turnpike Project. (5) A return on investment of any private entity under a
partnership agreement with the entity for a Turnpike Project. (6) Any other uses granted to a
private entity under a partnership agreement with the entity for a Turnpike Project.
(b) The Authority may use up to one hundred percent (100%) of the revenue derived from a
Turnpike Project for debt service on the Authority's revenue bonds or for a combination of debt
service and operation and maintenance expenses of the Turnpike Projects.
(c) The Authority shall use not more than five percent (5%) of total revenue derived from all
Turnpike Projects for Authority administration costs. (d) Notwithstanding the provisions of
subsections (a) and (b) of this section, toll revenues generated from a converted segment of the
State highway system previously planned for operation as a nontoll facility shall only be used for
the funding or financing of the right of way acquisition, construction, expansion, operations,
maintenance, and Authority administration costs associated with the converted segment or a
contiguous toll facility. (2002-133, s. 1; 2006-228, s. 4; 2013-183, s. 5.4.)
136-89.189. Turnpike Authority revenue bonds.
The Authority shall be a municipality for purposes of Article 5 of Chapter 159 of the General
Statutes, the State and Local Government Revenue Bond Act, and may issue revenue bonds
pursuant to that Act to pay all or a portion of the cost of a Turnpike Project or to refund any
previously issued bonds. In connection with the issuance of revenue bonds, the Authority shall
have all powers of a municipality under the State and Local Government Revenue Bond Act, and
revenue bonds issued by the Authority shall be entitled to the protection of all provisions of the
State and Local Government Revenue Bond Act. Except as provided in this section, the
provisions of Chapter 159 of the General Statutes, the Local Government Finance Act, apply to
revenue bonds issued by the Turnpike Authority. (1) The term of a lease between the Turnpike
Authority and the Department executed prior to July 27, 2009, for all or any part of a Turnpike
Project may exceed 40 years, as agreed by the Authority and the Department. (2) The maturity
date of a refunding bond may extend to the earlier of the following: a. Forty years from the date
of issuance of the refunding bond. b. The date the Turnpike Authority determines is the maturity
date required for the Turnpike Project funded with the refunding bonds to generate sufficient
revenues to retire the refunding bonds and any other outstanding indebtedness issued for that
Project. The Authority's determination of the appropriate maturity date is conclusive and binding.
In making its determination, the Authority may take into account appropriate financing terms and
conventions. (2002-133, s. 1; 2009-56, s. 2; 2010-165, s. 10.)
136-89.190. Sale of Turnpike Authority revenue bonds.
Revenue bonds of the Authority issued pursuant to G.S. 136-89.189 and the State and Local
Government Revenue Bond Act shall be sold in accordance with and pursuant to Article 7 of
Chapter 159 of the General Statutes. (2002-133, s. 1.)
136-89.191. Cost participation by Department of Transportation.
The Department of Transportation may participate in the cost of preconstruction activities,
construction, maintenance, or operation of a Turnpike Project. (2002-133, s. 1.)
136-89.192. Applicability of formula.
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Only those funds applied to a Turnpike Project from the State Highway Fund, State Highway
Trust Fund, or federal-aid funds that might otherwise be used for other roadway projects within
the State, and are otherwise already subject to the formula under G.S. 136-189.11 shall be
included in the formula. NC General Statutes - Chapter 136 Article 6H 9 Other revenue from the
sale of the Authority's bonds or notes, project loans, or toll collections shall not be included in the
formula. (2002-133, s. 1; 2013-183, s. 4.6.)
136-89.193. Annual plan of work; annual and quarterly reports.
(a) Annual Plan of Work. The Authority shall annually develop a plan of work for the fiscal
year, describing the activities and projects to be undertaken, accompanied by a budget. This
annual plan of work shall be subject to the concurrence of the Board of Transportation.
(b) Annual Reports. The Authority shall, promptly following the close of each fiscal year,
submit an annual report of its activities for the preceding fiscal year and an annual audit of its
books and accounts for the preceding fiscal year to the Governor, the General Assembly, and the
Department of Transportation. The report and audit shall be submitted no later than October 31 of
the fiscal year in which the report and audit are completed.
(c) Semiannual Reports. The Authority shall submit semiannual reports to the Joint Legislative
Transportation Oversight Committee, and more frequent reports if requested. The reports shall
summarize the Authority's activities during the preceding six months, and shall contain any
information about the Authority's activities that is requested by the Committee.
(d) Report Prior to Let of Contracts. The Authority shall consult with and report to the Joint
Legislative Transportation Oversight Committee and the Joint Legislative Commission on
Governmental Operations prior to the letting of any contract for Turnpike Project construction
authorized under G.S. 136-183(a)(2).
(e) Repealed by Session Laws 2011-145, s. 28.35(a), effective July 1, 2011. (2002-133, s. 1;
2011-145, s. 28.35(a); 2014-58, s. 3.)
136-89.194. Laws applicable to the Authority; exceptions.
(a) Motor Vehicle Laws. The Turnpike System shall be considered a "highway" as defined in
G.S. 20-4.01(13) and a "public vehicular area" as defined in G.S. 20-4.01(32). All law
enforcement and emergency personnel, including the State Highway Patrol and the Division of
Motor Vehicles, shall have the same powers and duties on the Turnpike System as on any other
highway or public vehicular area.
(b) Applicable Contracting. For the purposes of implementing this Article, the Authority shall
solicit competitive proposals for the construction of Turnpike Projects in accordance with the
provisions of Article 2 of this Chapter. Contracts for professional engineering services and other
kinds of professional or specialized services necessary in connection with construction of
Turnpike Projects shall be solicited in accordance with procedures utilized by the Department of
Transportation. Cost estimates prepared for the purpose of comparing bids for a Turnpike project
are confidential and may not be disclosed until after the opening of bids for the project. NC
General Statutes - Chapter 136 Article 6H 10
(c) Alternative Contracting Methods. Notwithstanding the provisions of subsection (b) of this
section, the Authority may authorize the use of alternative contracting methods if: (1) The
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authorization applies to an individual project; (2) The Authority has concluded, and documented
in writing, that the alternative contracting method is necessary because the project cannot be
completed utilizing the procedures of Article 2 of this Chapter within the necessary time frame or
available funding or for other reasons the Authority deems in the public interest; (3) The
Authority has provided, to the extent possible, for the solicitation of competitive proposals prior
to awarding a contract; and (4) The approved alternative contracting method provides for
reasonable compliance with the disadvantaged business participation goals of G.S. 136-28.4.
(d) Entry for Surveys. The Turnpike Authority and its employees and contractors shall have the
same right of entry for surveys, borings, soundings, or examinations as granted the Department of
Transportation in G.S. 136-120.
(e) Plans and Contract Documents. The requirements for registering right-of-way plans set in
G.S. 136-19.4 apply to right-of-way plans of the Turnpike Authority. In applying G.S. 136-19.4 to
the Authority, references to the "Department" are considered references to the "Turnpike
Authority" and references to the "Board" are considered references to the "Authority Board."
Diaries and analyses for contracts of the Turnpike Authority are subject to the same restrictions
on disclosure that apply to diaries and analyses for contracts of the Department under G.S. 13628.5.
(f) Construction Claims. G.S. 136-29 applies to the adjustment and resolution of Turnpike
project construction claims. In applying G.S. 136-29 to the Turnpike Authority, references to the
"Department of Transportation," the "Chief Engineer," and a "State highway" are considered
references to the "Turnpike Authority," the "chief engineer of the Turnpike Authority," and a
"Turnpike project."
(g) Contract Exemptions. The following provisions concerning the purchase of goods and
services by a State agency do not apply to the Turnpike Authority: (1) Article 3 of Chapter 143 of
the General Statutes. The Authority may use the services of the Department of Administration in
procuring goods and services that are not specific to establishing and operating a toll revenue
system. However, the Authority shall: (i) submit all proposed contracts for supplies, materials,
printing, equipment, and contractual services that exceed one million dollars ($1,000,000)
authorized by this subdivision to the Attorney General or the Attorney General's designee for
review as provided in G.S. 114-8.3; and, (ii) include in all proposed contracts to be awarded by
the Authority under this subdivision a standard clause which provides that the State Auditor and
internal auditors of the Authority may audit the records of the contractor during NC General
Statutes - Chapter 136 Article 6H 11 and after the term of the contract to verify accounts and data
affecting fees and performance. The Authority shall not award a cost plus percentage of cost
agreement or contract for any purpose. (2) Article 14 of Chapter 143B of the General Statutes.
The Authority may use the services of the Department of Information Technology in procuring
goods and services that are not specific to establishing and operating a toll revenue system.
However, all contract information for contracts for information technology are subject to
disclosure in accordance with Article 14 of Chapter 143B of the General Statutes.
(h) APA. Chapter 150B of the General Statutes does not apply to the Turnpike Authority, except
as provided in this section and G.S. 136-89.218. (2002-133, s. 1; 2006-228, s. 6; 2008-225, s. 6;
2010-194, s. 20.1; 2011-326, s. 15(u); 2012-85, s. 8; 2015-241, s. 7A.4(m).)
136-89.195. Internet report of funds expended.
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The Department shall publish and update annually on its Internet web site a record of all
expenditures of the Authority for highway construction, maintenance, and administration. The
record shall include a total expenditure amount by county. For each Turnpike Project, the record
shall include a readily identifiable project name or location, the nature of the project, the amount
of the project, the contractor for the project, the date of project letting, and the actual or expected
project completion date. (2002-133, s. 1.)
136-89.196. Removal of tolls.
The Authority shall, upon fulfillment of and subject to any restrictions included in the agreements
entered into by the Authority in connection with the issuance of the Authority's revenue bonds,
remove tolls from a Turnpike Project. (2002-133, s. 1.)
136-89.197. Maintenance of nontoll routes.
The Department shall maintain an existing, alternate, comparable nontoll route corresponding to
each Turnpike Project constructed pursuant to this Article. (2002-133, s. 1.)
136-89.198. Authority to toll existing interstate highways.
(a) General. Notwithstanding any other provision of this Article, the Authority may collect tolls
on any existing interstate highway for which the United States Department of Transportation has
granted permission by permit, or any other lawful means, to do so. The revenue generated from
the collected tolls shall be used by the Authority to repair and maintain the interstate on which the
tolls were collected. These revenues shall not be used to repair, maintain, or upgrade any State
primary or secondary road adjacent to or connected with the interstate highways.
(b) Method. The Authority shall establish toll locations on the permitted interstate highway in
accordance with federal guidelines. Toll locations shall be erected at or near the NC General
Statutes - Chapter 136 Article 6H 12 borders of the State and at such other locations that are not
impracticable, unfeasible, or that would result in an unsafe or hazardous condition.
(c) Severability. If any provision of this section or its application is held invalid, the invalidity
does not affect other provisions or applications of this section that can be given effect without the
invalid provisions or application, and to this end the provisions of this section are severable.
(2005-276, s. 28.21(b).)
136-89.199. Designation of high-occupancy toll and managed lanes.
Notwithstanding any other provision of this Article, the Authority may designate one or more
lanes of any highway, or portion thereof, within the State, including lanes that may previously
have been designated as HOV lanes under G.S. 20-146.2, as high-occupancy toll (HOT) or other
type of managed lanes; provided, however, that such designation shall not reduce the number of
existing non-toll general purpose lanes. In making such designations, the Authority shall specify
the high-occupancy requirement or other conditions for use of such lanes, which may include
restricting vehicle types, access controls, or the payment of tolls for vehicles that do not meet the
high-occupancy requirements or conditions for use. (2013-183, s. 5.5; 2013-410, s. 38(e).) 13689.200: Reserved for future codification purposes.
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136-89.209: Reserved for future codification purposes. Part 2. Collection of Tolls on Turnpike
Projects.
The definitions in G.S. 136-89.181 and the following definitions apply in this Article:
(1) Reserved.
(2) Open road toll. A toll payable under an open road tolling system.
(3) Open road tolling system. A system of collecting a toll for the use of a highway that does not
provide a way to pay the toll in cash while traveling on the highway. (2008-225, s. 2; 2013-410, s.
12.)
136-89.211. Tolls for use of Turnpike project.
In exercising its authority under G.S. 136-89.183 to set tolls for the use of a Turnpike project, the
Authority may not do any of the following: (1) Set open road tolls that vary for the same class of
motor vehicle depending on the method by which the Authority identifies a motor vehicle that
drives on the Turnpike project. This does not preclude the Authority from allowing a discount for
a motor vehicle equipped with an electronic toll collection transponder or a motor vehicle that has
prepaid its toll. (2) Exempt a motor vehicle that is not a law enforcement vehicle, an emergency
fire or rescue vehicle, or an emergency medical services vehicle from the requirement of paying a
toll for the use of a Turnpike project. (2008-225, s. 2; 2010-133, s. 2.)
136-89.212. Payment of toll required for use of Turnpike project.
(a) A motor vehicle that is driven on a Turnpike project is subject to a toll imposed by the
Authority for the use of the project. If the toll is an open road toll, the person who is the
registered owner of the motor vehicle is liable for payment of the toll unless the registered owner
establishes that the motor vehicle was in the care, custody, and control of another person when it
was driven on the Turnpike project.
(b) A person establishes that a motor vehicle was in the care, custody, and control of another
person when it was driven on a Turnpike project by submitting to the Authority a sworn affidavit
stating one of the following: (1) The name and address of the person who had the care, custody,
and control of the motor vehicle when it was driven. If the motor vehicle was leased or rented
under a long-term lease or rental, as defined in G.S. 105-187.1, the affidavit must be supported by
a copy of the lease or rental agreement or other written evidence of the agreement. NC General
Statutes - Chapter 136 Article 6H 14 (2) The motor vehicle was stolen. The affidavit must be
supported by an insurance or police report concerning the theft or other written evidence of the
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theft. (3) The person transferred the motor vehicle to another person by sale or otherwise before it
was driven on the Turnpike project. The affidavit must be supported by insurance information, a
copy of the certificate of title, or other evidence of the transfer.
(c) If a person establishes that a motor vehicle was in the care, custody, and control of another
person under subsection (b) of this section, the other person shall be liable for the payment of the
toll, and the Authority may send a bill to collect and enforce the toll in accordance with this
Article; provided, however, that such other person may contest such toll in accordance with this
Article. (2008-225, s. 2; 2013-183, s. 5.6.)
136-89.213. Administration of tolls and requirements for open road tolls.
(a) Administration. The Authority is responsible for collecting tolls on Turnpike projects. In
exercising its authority under G.S. 136-89.183 to perform or procure services required by the
Authority, the Authority may contract with one or more providers to perform part or all of the
collection functions and may enter into agreements to exchange information, including
confidential information under subsection (a1) of this section, that identifies motor vehicles and
their owners with one or more of the following entities: the Division of Motor Vehicles of the
Department of Transportation, another state, another toll operator, a toll collection-related
organization, or a private entity that has entered into a partnership agreement with the Authority
pursuant to G.S. 136-89.183(a)(17). Further, the Authority may assign its authority to fix, revise,
charge, retain, enforce, and collect tolls and fees under this Article to a private entity that has
entered into a partnership agreement with the Authority pursuant to G.S. 136-89.183(a)(17).
(a1) Identifying information obtained by the Authority through an agreement is not a public
record and is subject to the disclosure limitations in 18 U.S.C. 2721, the federal Driver's
Privacy Protection Act. The Authority shall maintain the confidentiality of all information
required to be kept confidential under 18 U.S.C. 2721(a), as well as any financial information,
transaction history, and information related to the collection of a toll or user fee from a person,
including, but not limited to, photographs or other recorded images or automatic vehicle
identification or driver account information generated by radio-frequency identification or other
electronic means. Notwithstanding the provisions of this section: (1) The account holder may
examine his own account information, and the Authority may use the account information only
for purposes of collecting and enforcing tolls. (2) A party, by authority of a proper court order,
may inspect and examine confidential account information.
(b) Open Road Tolls. If a Turnpike project uses an open road tolling system, the Authority must
operate a facility that is in the immediate vicinity of the Turnpike project NC General Statutes Chapter 136 Article 6H 15 or provide an alternate means to accept cash payment of the toll and
must place signs on the Turnpike project that give drivers the following information: (1) Notice
that the driver is approaching a highway for which a toll is required. Signs providing this
information must be placed before the toll is incurred. (2) The methods by which the toll may be
paid. (3) If applicable, directions to the nearby facility that accepts cash payment of the toll.
(2008-225, s. 2; 2012-78, s. 12; 2013-183, s. 5.6.)
136-89.214. Bill for unpaid open road toll.
(a) Bill. If a motor vehicle travels on a Turnpike project that uses an open road tolling system
and a toll for traveling on the project is not paid prior to travel or at the time of travel, the
Authority must send a bill by first-class mail to the registered owner of the motor vehicle or the
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person who had care, custody, and control of the vehicle as established under G.S. 136-89.212(b)
for the amount of the unpaid toll. The Authority must send the bill within 90 days after the travel
occurs, or within 90 days of receipt of a sworn affidavit submitted under G.S. 136-89.212(b)
identifying the person who had care, custody, and control of the motor vehicle. If a bill is not sent
within the required time, the Authority waives collection of the toll. The Authority must establish
a billing period for unpaid open road tolls that is no shorter than 15 days. A bill for a billing
period must include all unpaid tolls incurred by the same person during the billing period.
(b) Information on Bill. A bill sent under this section must include all of the following
information: (1) The name and address of the registered owner of the motor vehicle that traveled
on the Turnpike project or of the person identified under G.S. 136-89.212(b). (2) The date the
travel occurred, the approximate time the travel occurred, and each segment of the Turnpike
project on which the travel occurred. (3) An image of the registration plate of the motor vehicle, if
the Authority captured an electronic image of the motor vehicle when it traveled on the Turnpike
project. (4) The amount of the toll due and an explanation of how payment may be made. (5) The
date by which the toll must be paid to avoid the imposition of a processing fee under G.S. 13689.215 and the amount of the processing fee. (6) A statement that a vehicle owner who has unpaid
tolls is subject to a civil penalty and may not renew the vehicle's registration until the tolls and
civil penalties are paid. (7) A clear and concise explanation of how to contest liability for the toll.
NC General Statutes - Chapter 136 Article 6H 16 (8) If applicable, a copy of the affidavit
submitted under G.S. 136-89.212(b) identifying the person with care, custody, and control of the
motor vehicle. (2008-225, s. 2; 2010-133, s. 3; 2013-183, s. 5.6.)
136-89.215. Required action upon receiving bill for open road toll and processing fee for
unpaid toll.
(a) Action Required. A person who receives a bill from the Authority for an unpaid open road
toll must take one of the following actions within 30 days of the date of the bill: (1) Pay the bill.
(2) Send a written request to the Authority for a review of the toll.
(b) Fee. If a person does not take one of the actions required under subsection (a) of this section
within the required time, the Authority may add a processing fee to the amount the person owes.
The processing fee may not exceed six dollars ($6.00). A person may not be charged more than
forty-eight dollars ($48.00) in processing fees in a 12-month period. The Authority must set the
processing fee at an amount that does not exceed the costs of collecting the unpaid toll. (2008225, s. 2; 2010-133, s. 4; 2013-183, s. 5.6.)
136-89.216. Civil penalty for failure to pay open road toll.
(a) Penalty. A person who receives two or more bills for unpaid open road tolls and who has not
paid the amount due on those bills within 30 days is subject to a civil penalty of twenty-five
dollars ($25.00). Only one penalty may be assessed in a six-month period.
(b) Payment. The Authority must send a notice by first-class mail to a person who is assessed a
civil penalty under this section. A person who is assessed a civil penalty must pay the unpaid toll
for which the civil penalty was imposed, the amount of any processing fee due, and the civil
penalty within 30 days of the date of the notice.
(c) Penalty Proceeds. A civil penalty imposed under this section is payable to the Authority. The
clear proceeds of a civil penalty imposed under this section must be credited to the Civil Penalty
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and Forfeiture Fund established in G.S. 115C-457.1. The guidelines used by the Office of State
Budget and Management to determine an agency's actual costs of collecting a civil penalty and
the clear proceeds of the civil penalty apply to the determination of the clear proceeds of a civil
penalty imposed under this section. (2008-225, s. 2; 2010-133, s. 5.)
136-89.217. Vehicle registration renewal blocked for unpaid open road toll.
(a) Registration Block. Failure of a person to pay an open road toll billed to the person under
G.S. 136-89.214, any processing fee added under G.S. 136-89.215, and any civil penalty imposed
under G.S. 136-89.216, as well as any toll, processing fee, or civil penalty owed to another tolling
jurisdiction with which the Authority has a valid NC General Statutes - Chapter 136 Article 6H
17 reciprocal toll enforcement agreement under G.S. 136-89.220, is grounds under G.S. 20-54 to
withhold the registration renewal of a motor vehicle registered in that person's name. The
Authority must notify the Commissioner of Motor Vehicles of a person who owes a toll, a
processing fee, or a civil penalty. When notified, the Commissioner of Motor Vehicles must
withhold the registration renewal of any motor vehicle registered in that person's name.
(b) Repealed by S.L. 2010-133, s. 6, effective December 1, 2010. (2008-225, s. 2; 2010-133, s. 6;
2012-85, s. 10.)
136-89.218. Procedures for contesting liability for unpaid open road toll.
(a) Informal Review. A person who receives a bill for an unpaid open road toll and who disputes
liability for the toll may contest the toll by sending to the Authority a request for review of the
toll. The person may include a sworn affidavit described in G.S. 136-89.212 that establishes that
someone else had the care, custody, and control of the motor vehicle subject to the toll when the
toll was incurred. The person must send the request for review to the Authority within 30 days of
the date of the bill sent by the Authority. A person who does not send a request for review to the
Authority within this time limit waives the right to a review. If a person sends a timely request for
review to the Authority, the Authority may not collect the disputed toll and any processing fee
added to the bill for the toll until the conclusion of the review process in this section.
(b) Administrative Hearing. If the Authority conducts an informal review under subsection (a)
of this section and determines that the person who requested the review is liable for the toll, the
Authority must send the person a notice informing the person of the Authority's determination.
The person may contest this determination by filing a petition for a contested case hearing at the
Office of Administrative Hearings in accordance with Article 3 of Chapter 150B of the General
Statutes.
(c) Judicial Review. Article 4 of Chapter 150B of the General Statutes governs judicial review
of a final decision made in a contested case authorized under subsection (b) of this section. (2008225, s. 2; 2010-133, s. 7.)
136-89.220. Reciprocal toll enforcement agreements.
The Authority may enter into reciprocal agreement with other tolling jurisdictions to enforce toll
violations. Such an agreement shall provide that, when another toll agency certifies that the
registered owner of a vehicle registered in this State has failed to pay a toll, processing fee, or
civil penalty due to that toll agency, the unpaid toll, processing fee, or civil penalty may be
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enforced by the Authority placing a renewal block as if it were an unpaid toll, processing fee, or
civil penalty owed to this State under G.S. 136-89.217. Such agreement shall only be enforceable,
however, if all of the following are true: NC General Statutes - Chapter 136 Article 6H 18
(1) The other toll agency has its own effective reciprocal procedure for toll violation enforcement
and does, in fact, reciprocate in enforcing toll violations within this State by withholding the
registration renewal of registered owners of motor vehicles from the state of the other toll agency.
(2) The other toll agency provides due process and appeal protections to avoid the likelihood that
a false, mistaken, or unjustified claim will be pursued against the owner of a vehicle registered in
this State.
(3) The owner of a vehicle registered in this State may present evidence to the other toll agency
by mail or other means to invoke rights of due process without having to appear personally in the
jurisdiction where the violation allegedly occurred.
(4) The reciprocal violation enforcement arrangement between the Authority and the other toll
agency provides that each party shall charge the other for costs associated with registration holds
in their respective jurisdictions. (2012-85, s. 11.)
Section 4: This Act is effective upon the date of April 25, 2016 when the next
Senate and House of Representatives is to convene.

79TH ANNUAL SESSION
NCSL SB 004
Short Title: Prison Labor
House Sponsor:
158
Senate Sponsor: Justin Moose

A BILL CONCERNING PRISON LABOR
148-26. State policy on employment of prisoners.
(a)
It is declared to be the public policy of the State of North Carolina that all ablebodied prison inmates shall be required to perform diligently all work assignments
provided for them. The failure of any inmate to perform such a work assignment may
result in disciplinary action. Work assignments and employment shall be for the public or
private benefit to reduce the cost of maintaining the inmate population while enabling
inmates to acquire or retain skills and work habits needed to secure honest employment
after their release.
In exercising his power to enter into contracts to supply inmate labor as provided
by this section, the Secretary of Public Safety shall not assign any inmate to work under
any such contract, unless it is through a private transaction with the prison where all
proceeds are returned to the prison in return for the labor of the inmate, who is eligible
for work release as provided in this Article, study release as provided by G.S. 148-4(4),
or who is eligible for a program of vocational rehabilitation services through the State
Vocational Rehabilitation Agency, unless suitable work release employment or
educational opportunity cannot be found for the inmate, and the inmate is not eligible for
a program of vocational rehabilitation services through the State Vocational
Rehabilitation Agency, and shall not agree to supply inmate labor for any project or
service unless it meets all of the following criteria:
(1)
The project or service involves a type of work by which inmates
can develop a skill to better equip themselves to return to society;
(2)
The project or service is of benefit to the citizens of North Carolina
or units of State or local government thereof, regardless of whether the project or
service is performed on public or private property;
(3)
Repealed by Session Laws 1977, c. 824, s. 2.
(4)
Wages shall be paid in an amount not exceeding one dollar ($1.00)
per day per inmate by the local or State contracting agency.
(5)
In the event that a private contract is formed with the prison for the
use of inmate labor all but the first criteria.
(6)
No amount of labor will exceed 20 hours per day per inmate.
(b)
As many minimum custody prisoners as are available and fit for road
work or the work specified within a private contract with the prison, who cannot
appropriately be placed on work release, study release, or other full-time programs, and
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as many medium custody prisoners as are available, fit for road work or the work
specified within a private contract with the prison and can be adequately guarded during
such work without reducing security levels at prison units, shall be employed in the
maintenance and construction of public roads or the work specified within a private
contract with the prison of the State. The number and location of prisoners to be kept
available for work on the public roads or the work specified within a private contract with
the prison shall be agreed upon by the governing authorities of the Department of
Transportation and the Division of Adult Correction of the Department of Public Safety
far enough in advance of each budget to permit proper provisions to be made in the
request for appropriations submitted by the Department of Transportation and any private
individual or organization maintaining contracts with the prison. Any dispute between the
Departments will be resolved by the Governor. Prisoners so employed shall be
compensated, except in the event of labor being provided by through a private contract
with the prison, at rates fixed by the Division of Adult Correction of the Department of
Public Safety's rules and regulations for work performed; provided, that no prisoner
working on the public roads under the provisions of this section shall be paid more than
one dollar ($1.00) per day from funds provided by the Department of Transportation to
the Division of Adult Correction of the Department of Public Safety for this purpose. The
Division of Adult Correction of the Department of Public Safety and the Department of
Transportation shall develop a program to be implemented no later than July 1, 1982, to
the extent money is herein appropriated, which shall include:
(1)
The use of portable toilets for inmate road crews.
(c)
As many of the male prisoners available and fit for forestry work shall be
employed in the development and improvement of state-owned forests as can be used for
this purpose by the agencies controlling these forests. G.S. 148-26 Page 2
(d)
The remainder of the able-bodied inmates of the State prison system shall
be employed so far as practicable in prison industries and agriculture, giving preference
to the production of food supplies and other articles needed by state-supported
institutions or activities.
(e)
The Division of Adult Correction of the Department of Public Safety may
make such contracts with departments, institutions, agencies, and political subdivisions of
the State for the hire of prisoners to perform other appropriate work as will help to make
the prisons as nearly self-supporting as is consistent with the purposes of their creation.
The Division of Adult Correction of the Department of Public Safety may contract with
any person or any group of persons for the hire of prisoners for forestry work, soil
erosion control, water conservation, hurricane damage prevention, or any similar work
certified by the Secretary of Environmental Quality as beneficial in the conservation of
the natural resources of this State. All contracts for the employment of prisoners shall
provide that they shall be fed, clothed, quartered, guarded, and otherwise cared for by the
Division of Adult Correction of the Department of Public Safety. Such work may include
but is not limited to work with State or local government agencies in cleaning,
160
construction, landscaping and maintenance of roads, parks, nature trails, bikeways,

cemeteries, landfills or other government-owned or operated facilities.
(e1) The Division of Adult Correction of the Department of Public Safety may
establish work assignments for inmates or allow inmates to volunteer in service projects
that benefit units of State or local government or 501(c)(3) entities that serve the citizens
of this State or serve the interests of a private entity with a contract with the prison. The
work assignments may include the use of inmate labor and the use of Division of Adult
Correction of the Department of Public Safety resources in the production of finished
goods. Any products made pursuant to this section shall not be subject to the provisions
of Article 3A of Chapter 143 of the General Statutes and may be donated to the
government unit or 501(c)(3) organization at no cost.
(f)
Adult inmates of the State prison system shall be prohibited from working
at or being on the premises of any schools or institutions operated or administered by the
Youth Development Section of the Division of Juvenile Justice of the Department of
Public Safety unless a complete sight and sound barrier is erected and maintained during
the course of the labor performed by the adult inmates.
(g)
The Division of Adult Correction of the Department of Public Safety shall
establish rules, standards, and procedures for establishing inmate labor services contracts
with any county or municipality expressing interest in contracting for inmate labor.
(1933, c. 172, ss. 1, 14; 1957, c. 349, s. 5; 1967, c. 996, s. 13; 1971, c. 193; 1973, c. 1262,
s. 86; 1975, c. 278; c. 506, ss. 1, 2; c. 682, s. 2; c. 716, s. 7; 1977, c. 771, s. 4; c. 802, s.
25.36; c. 824, ss. 1-3; 1981, c. 516; 1981 (Reg. Sess., 1982), c. 1400; 1989, c. 727, s.
218(156); 1997-443, s. 11A.123; 1999-237, s. 18.21; 2001-95, s. 8; 2007-398, s. 1; 2011145, s. 19.1(h), (i), (l); 2012-83, ss. 59, 61; 2015-241, s. 14.30(v).)

79TH ANNUAL SESSION
NCSL SB 005
Short Title: Police Reform and Reduction of Civil Forfeiture Act
House Sponsor: Joseph Schulte
Senate Sponsor: Bobby King
161
ADVOCATING THE REDUCTION OF BOTH THE 1033 PROGRAM, AND CIVIL
FORFEITURE FOR THE STATE OF NORTH CAROLINA
Section 1.
74E-7. For the purposes of this resolution, the North Carolinian Government will define lethal
weapons as military grade assault rifles, armored vehicles, military-grade ammunition which
includes armor/car piercing rounds, military-grade helicopters.
(b.) The North Carolinian Government under this bill will restrict the transfer of lethal weaponry,
with the exception of knives, and less-than lethal chemical weapons to local law enforcement;
however police departments shall be able to keep their current stockpile with the ability to
purchase ammunition, particlarly for those weapons. Local law enforcement shall have the ability
to transfer or transport weaponry to other local law enforcement branches, currently in their
position.
160A-183 Non-Lethal Weapons would be defined as Tear Gas, Rubber Bullet weapons, pepperfilled rounds, sound cannons, sticky foam, and Rock Salt rounds.
(d.) The federal transfer of tear gas launchers to State Troopers of North Carolina will be
restricted.
(e.) The State of North Carolina will restrict transfers of the aforementioned Less-than-lethal
weapons to local police
74E-7, 160A-183.This act will not apply to local and statewide branches of the Special
Weapons and Tactics (SWAT) Team.
(b.) The weapons transferred from the Department of Defense to the SWAT Teams and State
Troopers must stay in that unit, and must not be lended to other, namely local police departments.
1A-1 The State of North Carolina will also restrict the applicability of civil forfeiture to cases
in which the person is accused of a crime, or is guilty of a crime. Cases in which the person of
Interest was found not guilty must have their lawful property returned to within the span of 72
hours. Relatives of the convicted who would like confiscated assets returned must apply for their
property to be returned which, barring extreme circumstances, must be returned to the applicants
in the span of two weeks.
1A-1, Article 1. During the seizure of property statewide, North Carolinian police forces must
be required to notify citizens of what is being taken, and the property in question will be held
until the it can be determined the property in question was not in connection with criminal
activities.
(b.) Subsequently, the property must be returned to its rightful owner if proven not to be
connected with criminal activity within the span of 72 hours, not including if sent via mail.
(c.) If owners of the property arrive to a police station in which their property is stationed, the
property must be given upon request, providing there is no connection with criminal activity.
162
(d.) Police who seize property under the guise of civil forfeiture must record the testimony of the
owners of such property for the purpose of full clarity.
(e.) If proven that the property has a direct correlation to criminal activity, the property must stay
in police custody. If such property is a vital tool, as is a car, or house, relatives of the prior owner
must fill out a form, and pay a fine ranging from $150-$500.
(f.) The cost that is attributed to the fees charged would be meant to pay for the expunging of
incriminating substances from housing (i.e. ridding a house seized of all illegal narcotics),
cleaning a car as means of removing all contraband from the vehicle.
(g.) The contraband that would be kept would include weapons federally banned in the Unites
States of America, such as Ballistics Knives and Swordsticks, firearms that are possibly linked to
criminal activity, and DEA schedule-one drugs.
Ratification. This bill will take effect July 1st 2017 after ratification.

79TH ANNUAL SESSION
NCSL SB 006
Short Title: Smoking Laws
House Sponsor:
Senate Sponsor: Justin Moose
A BILL CONCERNING
163
THE REPEAL OF UNREASONABLE SMOKING LAWS

130A-491. Legislative findings and intent.
(a)
Findings. - The General Assembly finds that secondhand smoke has been
proven to cause cancer, heart disease, and asthma attacks in both smokers and
nonsmokers. In 2006, a report issued by the United States Surgeon General stated that the
scientific evidence indicates that there is no risk-free level of exposure to secondhand
smoke.
(b)
Intent. - It is the intent of the General Assembly to protect the health of
individuals in public places and places of employment and riding in State government
vehicles from the risks related to secondhand smoke. It is further the intent of the General
Assembly to allow local governments to adopt local laws governing smoking within their
jurisdictions that are more restrictive than the State law. (2007-193, s. 1; 2008-149, s. 1;
2009-27, s. 1.)
130A-492. Definitions.
The following definitions apply in this Article:
(1)
"Bar". - An establishment with a permit to sell alcoholic beverages
pursuant to subdivision (1), (3), (5), or (10) of G.S. 18B-1001.
(2)
"Cigar bar". - An establishment with a permit to sell alcoholic
beverages pursuant to subdivision (1), (3), (5), or (10) of G.S. 18B1001 that satisfies all of the following:
a.
Generates sixty percent (60%) or more of its quarterly gross
revenue from the sale of alcoholic beverages and twenty-five
percent (25%) or more of its quarterly gross revenue from the
sale of cigars;
b.
Has a humidor on the premises; and
c.
Does not allow individuals under the age of 21 to enter the
premises.
Revenue generated from other tobacco sales, including cigarette
vending machines, shall not be used to determine whether an
establishment satisfies the definition of cigar bar.
(3)
"Employee". - A person who is employed by an employer, or who
contracts with an employer or third person to perform services for an
employer, or who otherwise performs services for an employer with or
without compensation.
(4)
"Employer". - An individual person, business, association, political
subdivision, or other public or private entity, including a nonprofit
entity, that employs or contracts for or accepts the provision of
services from one or more employees.
(5)
"Enclosed area". - An area with a roof or other overhead covering of
any kind and walls or side coverings of any kind, regardless of the
presence of openings for ingress and egress, on all sides or on all sides
but one.
(6)
"Grounds". - An unenclosed area owned, leased, or occupied by State
or local government.
164
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
"Local government". - A local political subdivision of this State, an

airport authority, or an authority or body created by an ordinance, joint
resolution, or rules of any such entity.
"Local government building". - A building owned, leased as lessor, or
the area leased as lessee and occupied by a local government.
"Local vehicle". - A passenger-carrying vehicle owned, leased, or
otherwise controlled by local government and assigned permanently or
temporarily by local government to local government employees,
agencies, institutions, or facilities for official local government
business.
"Lodging establishment". - An establishment that provides lodging for
pay to the public.
"Private club". - A country club or an organization that maintains
selective members, is operated by the membership, does not provide
food or lodging for pay to anyone who is not a member or a member's
guest, and is either incorporated as a nonprofit corporation in
accordance with Chapter 55A of the General Statutes or is exempt
from federal income tax under the Internal Revenue Code as defined in
G.S. 105-130.2(1). For the purposes of this Article, private club
includes country club.
"Private residence". - A private dwelling that is not a child care
facility, as defined in G.S. 110-86(3), and not a long-term care facility,
as defined in G.S. 131E-14.3(a)(1).
"Private vehicle". - A privately owned vehicle that is not used for
commercial or employment purposes.
"Public place". - An enclosed area to which the public is invited or in
which the public is permitted.
"Restaurant". - A food or lodging establishment that prepares and
serves drink or food as regulated by the Commission pursuant to Part 6
of Article 8 of this Chapter.
"Smoking". - The use or possession of a lighted cigarette, lighted
cigar, lighted pipe, or any other lighted tobacco product.
"State government". - The political unit for the State of North
Carolina, including all agencies of the executive, judicial, and
legislative branches of government.
"State government building". - A building owned, leased as lessor, or
the area leased as lessee and occupied by State government.
"State vehicle". - A passenger-carrying vehicle owned, leased, or
otherwise controlled by the State and assigned permanently or
temporarily to a State employee or State agency or institution for
official State business.
"Tobacco shop". - A business establishment, the main purpose of
which is the sale of tobacco, tobacco products, and accessories for
such products, that receives no less than seventy-five percent (75%) of
its total annual revenues from the sale of tobacco, tobacco products,
and accessories for such products, and does not serve food or alcohol
165
on its premises. (2007-193, s. 1; 2008-149, s. 2; 2009-27, s. 1; 2009550, s. 6(a).)

130A-493. Smoking prohibited in State government buildings and State vehicles.
(a)
Notwithstanding Article 64 of Chapter 143 of the General Statutes pertaining
to State-controlled buildings, smoking is prohibited inside State government buildings
except as provided in subsection (b) of this section.
(b)
Smoking is permitted inside State government buildings that are used for
medical or scientific research to the extent that smoking is an integral part of the research.
Smoking permitted under this subsection shall be confined to the area where the research
is being conducted.
(c)
The individual in charge of the State government building or the individual's
designee shall post signs in conspicuous areas of the building. The signs shall state that
"smoking is prohibited" and may include the international "No Smoking" symbol, which
consists of a pictorial representation of a burning cigarette enclosed in a red circle with a
red bar across it. In addition, the individual in charge of the building or the individual's
designee shall:
(1)
Direct a person who is smoking inside the building to extinguish the
lighted smoking product.
(2)
In a State psychiatric hospital, provide written notice to individuals
upon admittance that smoking is prohibited inside the building and
obtain the signature of the individual or the individual's representative
acknowledging receipt of the notice.
(c1)
Smoking is prohibited inside State vehicles. The individual or the individual's
designee in charge of assigning the vehicle shall place one or more signs in conspicuous
areas of the vehicle. The signs shall state that "smoking is prohibited" and may include
the international "No Smoking" symbol, which consists of a pictorial representation of a
burning cigarette enclosed in a red circle with a red bar across it. If the vehicle is used for
undercover law enforcement operations, a sign is not required to be placed in the vehicle
as provided in this subsection.
(d)
Notwithstanding G.S. 130A-25, a violation of Article 23 of this Chapter shall
not be punishable as a criminal violation. (2007-193, s. 1; 2007-459, s. 4.1; 2008-149, s.
3; 2009-27, s. 1.)
130A-494. Other prohibitions.
Nothing in this Article repeals any other law prohibiting smoking, nor does it limit
any law allowing regulation or prohibition of smoking on walkways or on the grounds of
buildings. (2007-193, ss. 1, 3.2.)
130A-495. Rules.
The Commission shall adopt rules to implement this Part. (2007-193, s. 1.)
Part 1C. Smoking Prohibited in Restaurants and Bars.
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130A-496. Smoking prohibited in restaurants and bars.

(a)
Notwithstanding Article 64 of Chapter 143 of the General Statutes, smoking is
prohibited in all enclosed areas of restaurants and bars, except as provided in subsection
(b) of this section.
(b)
Smoking may be permitted in the following places:
(1)
A designated smoking guest room in a lodging establishment. No
greater than twenty percent (20%) of a lodging establishment's guest
rooms may be designated smoking guest rooms.
(2)
A cigar bar if smoke from the cigar bar does not migrate into an
enclosed area where smoking is prohibited pursuant to this Article. A
cigar bar that begins operation after July 1, 2009, may only allow
smoking if it is located in a freestanding structure occupied solely by
the cigar bar and smoke from the cigar bar does not migrate into an
enclosed area where smoking is prohibited pursuant to this Article. To
qualify under this subsection, the cigar bar must satisfactorily report
on a quarterly basis to the Department, on a form prescribed by the
Department, the revenue generated from the sale of alcoholic
beverages and cigars as a percentage of quarterly gross revenue. The
Department shall determine whether any additional documentation is
required of the cigar bar to authenticate or verify revenue data
submitted by the cigar bar. This subdivision shall not apply to any
business that is established for the purpose of avoiding compliance
with this Article.
(3)
A private club. (2009-27, s. 1.)
130A-497. Implementation and enforcement.
(a)
A person who manages, operates, or controls a restaurant or bar in which
smoking is prohibited shall:
(1)
Conspicuously post signs clearly stating that smoking is prohibited.
The signs may include the international "No Smoking" symbol, which
consists of a pictorial representation of a burning cigarette enclosed in
a red circle with a red bar across it.
(2)
Remove all indoor ashtrays and other smoking receptacles.
(3)
Direct a person who is smoking to extinguish the lighted tobacco
product.
(b)
Continuing to smoke in a nonsmoking area described in this Part following
oral or written notice by the person in charge of the area or the person's designee
constitutes an infraction, and the person committing the infraction may be punished by a
fine of not more than fifty dollars ($50.00).
(c)
Conviction of an infraction under this section has no consequence other than
payment of a penalty. A person found responsible for a violation of this section may not
be assessed court costs.
(d)
Notwithstanding G.S. 130A-25, a violation of this Part shall not be punishable
as a misdemeanor.
(e)
Administrative penalties imposed under G.S. 130A-22(h1) against a person
who manages, operates, or controls a restaurant or bar and fails to comply with the
167
provisions of this Article and the rules adopted by the Commission to implement the
provisions of this Article shall only be enforced by a local health director.
(f)
The Commission shall adopt rules to implement the provisions of this
Article. (2009-27, s. 1.)
Part 2. Local Government Regulation of Smoking.
130A-498. Local governments may restrict smoking in public places.
(a)
Except as otherwise provided in subsection (b1) of this section, and
notwithstanding any other provision of Article 64 of Chapter 143 of the General Statutes
to the contrary, a local government may adopt and enforce ordinances, board of health
rules, and policies restricting or prohibiting smoking that are more restrictive than State
law and that apply in local government buildings, on local government grounds, in local
vehicles, or in public places. A rule or policy adopted on and after July 1, 2009 pursuant
to this subsection by a local board of health or an entity exercising the powers of a local
board of health must be approved by an ordinance adopted by the Board of County
Commissioners of the county to which the rule applies. The definitions set forth in G.S.
130A-492 in Part 1A of this Article apply to this section and shall apply to any local
ordinance, rule, or law adopted by a local government under this section.
(b)
Repealed by Session Laws 2009-27, s. 1, effective January 2, 2010.
(b1)
A local ordinance or other rules, laws, or policies adopted under this section
may not restrict or prohibit smoking in the following places:
(1)
A private residence.
(2)
A private vehicle.
(3)
A tobacco shop if smoke from the business does not migrate into an
tobacco shop that begins operation after July 1, 2009, may only allow
the tobacco shop and smoke from the shop does not migrate into an
enclosed area where smoking is prohibited pursuant to this Article.
(4)
All of the premises, facilities, and vehicles owned, operated, or leased
by any tobacco products processor or manufacturer, or any tobacco
leaf grower, processor, or dealer.
(5)
A designated smoking guest room in a lodging establishment. No
greater than twenty percent (20%) of a lodging establishment's guest
rooms may be designated smoking guest rooms.
(6)
A cigar bar if smoke from the cigar bar does not migrate into an
cigar bar that begins operation after July 1, 2009, may only allow
the cigar bar and smoke from the cigar bar does not migrate into an
enclosed area where smoking is prohibited pursuant to this Article. To
qualify under this subsection, the cigar bar must satisfactorily report
on a quarterly basis to the Department, on a form prescribed by the
Department, the revenue generated from the sale of alcoholic
beverages and cigars as a percentage of quarterly gross revenue. The
168
Department shall determine whether any additional documentation is

required of the cigar bar to authenticate or verify revenue data
submitted by the cigar bar. This subdivision shall not apply to any
business that is established for the purpose of avoiding compliance
with this Article.
(7)
A private club.
(8)
A motion picture, television, theater, or other live production set. This
exemption applies only to the actor or performer portraying the use of
tobacco products during the production.
(c)
(c1)
Continuing to smoke in violation of a local ordinance or other rules, laws, or
policies adopted under this section constitutes an infraction, and the person committing
the infraction may be punished by a fine of not more than fifty dollars ($50.00).
Conviction of an infraction under this section has no consequence other than payment of
a penalty. A person smoking in violation of a local ordinance or other rules, laws, or
policies adopted under this section may not be assessed court costs.
(d)
(d1) Notwithstanding G.S. 130A-25 or any other provision of law, a violation of a
local ordinance, rule, law, or policy adopted under this section shall not be punishable as
a misdemeanor.
(d2) A local government may enforce an ordinance, rule, law, or policy under this
section against a person who manages, operates, or controls a public place only as
provided in G.S. 130A-22(h1).
(e)
A county ordinance adopted under this section is subject to the provisions of
G.S. 153A-122. (2007-193, ss. 2, 3.1; 2007-484, s. 31.7; 2008-95, s. 1; 2008-149, s. 4;
2009-27, s. 1.)
79TH ANNUAL SESSION
NCSL SB 007
Short Title: Quarterly Schooling Act
House Sponsor:
Senate Sponsor: _Brianna Davis
AN ACT TO IMPLEMENT QUARTERLY SCHOOLING IN NORTH CAROLINA
The North Carolina Legislature Enacts:
115C-84.2. School Calendar.
169
(a)
School Calendar. - Each local board of education shall adopt a school calendar
consisting of 215 days all of which shall fall within the fiscal year. A school calendar
shall include the following:
(1)
A minimum of 185 days or 1,025 hours of instruction covering at least nine
calendar months. The local board shall designate when the instructional days shall occur.
The number of instructional hours in an instructional day may vary according to local
board policy and does not have to be uniform among the schools in the administrative
unit. Local boards may approve school improvement plans that include days with varying
amounts of instructional time. If school is closed early due to inclement weather, the day
and the scheduled amount of instructional hours may count towards the required
minimum to the extent allowed by State Board policy. The school calendar shall include a
plan for making up days and instructional hours missed when schools are not opened due
to inclement weather.
(1a)
Repealed by Session Laws 2004-180, s. 1, effective August 9, 2004.
(2)
A minimum of 10 annual vacation leave days.
(3)
The same or an equivalent number of legal holidays occurring within the school
calendar as those designated by the State Human Resources Commission for State
employees.
(4)
Repealed by Session Laws 2011-145, s. 7.29(a), effective July 1, 2011.
(5)
The remaining days scheduled by the local board in consultation with each
school's principal for use as teacher workdays, additional instructional days, or other
lawful purposes. Before consulting with the local board, each principal shall work with
the school improvement team to determine the days to be scheduled and the purposes for
which they should be scheduled. Days may be scheduled and planned for different
purposes for different personnel and there is no requirement to schedule the same dates
for all personnel. In order to make up days for school closing because of inclement
weather, the local board may designate any of the days in this subdivision as additional
make-up days to be scheduled after the last day of student attendance.
Local boards and individual schools are encouraged to use the calendar flexibility in
order to meet the annual performance standards set by the State Board. Local boards of
education shall consult with parents and the employed public school personnel in the
development of the school calendar.
Local boards shall designate at least two days scheduled under subdivision (5) of this
subsection as days on which teachers may take accumulated vacation leave. Local boards
may designate the remaining days scheduled in subdivision (5) of this subsection as days
on which teachers may take accumulated vacation leave, but local boards shall give
teachers at least 14 calendar days' notice before requiring a teacher to work instead of
taking vacation leave on any of these days. A teacher may elect to waive this notice
requirement for one or more of these days.
(b)
Limitations. - The following limitations apply when developing the school
calendar:
(1)
The total number of teacher workdays for teachers employed for a 10 month term
shall not exceed 195 days.
170
(2)
The calendar shall include at least 42 consecutive days when teacher attendance
is not required unless: (i) the school is a year-round school; or (ii) the teacher is employed
for a term in excess of 10 months. At the request of the local board of education or of the
principal of a school, a teacher may elect to work on one of the 42 days when teacher
attendance is not required in lieu of another scheduled workday. The calendar shall
include 30 days where teachers and students take leave during the summer break to start
the closest Monday to June 14 and end the closest Monday to July 14. Breaks should be
equal on a quarterly track. The transition to quarterly schooling can be done with the
disgression of local boards. Within five years time after enacting this legislation, a full
transition should be complete and the track of quarterly schooling must persist.
45 day term with 10 days of break after the first 3 terms. The last term will have a 30 day
break to accommodate a shorter summer.
(3)
School shall not be held on Sundays.
(4)
Veterans Day shall be a holiday for all public school personnel and for all
students enrolled in the public schools.
(c)
Emergency Conditions. - During any period of emergency in any section of the
State where emergency conditions make it necessary, the State Board of Education may
order general, and if necessary, extended recesses or adjournment of the public schools.
(d)
Opening and Closing Dates. - Local boards of education shall determine the dates
of opening and closing the public schools under subdivision (a)(1) of this section. The
terms are those laid out in sub-section 2 of this bill. Except for year-round schools, the
opening date for students shall be no earlier than the Monday closest to August 26, and
the closing date for students shall be no later than the Friday closest to June 11. On a
showing of good cause, the State Board of Education may waive the requirement that the
opening date for students be no earlier than the Monday closest to August 26 and may
allow the local board of education to set an opening date no earlier than the Monday
closest to August 19, to the extent that school calendars are able to provide sufficient days
to accommodate anticipated makeup days due to school closings. A local board may
revise the scheduled closing date if necessary in order to comply with the minimum
requirements for instructional days or instructional time. For purposes of this subsection,
the term "good cause" means that schools in any local school administrative unit in a
county have been closed eight days per year during any four of the last 10 years because
of severe weather conditions, energy shortages, power failures, or other emergency
situations.
The required opening and closing dates under this subsection shall not apply to any
school that a local board designated as having a modified calendar for the 2003-2004
school year or to any school that was part of a planned program in the 2003-2004 school
year for a system of modified calendar schools, so long as the school operates under a
modified calendar.
(e)
Nothing in this section prohibits a local board of education from offering
supplemental or additional educational programs or activities outside the calendar
adopted under this section. (1997-443, s. 8.38(c); 1998-212, s. 9.18(b); 1999-373, s. 1;
1999-463, Ex. Sess., s. 7A; 2003-8, s. 1; 2003-131, s. 1; 2004-180, s. 1; 2004-203, s. 44;
171
2006-264, s. 25; 2010-10, s. 1(a); 2010-114, s. 1; 2011-93, s. 1; 2011-145, ss. 7.13(c), (d),
7.29(a); 2011-391, s. 14(b); 2012-142, s. 7A.11(a); 2012-145, s. 2.5; 2013-382, s. 9.1(c).)
172

79TH ANNUAL SESSION
NCSL SB 008
Short Title:
Pupil Spending Overhaul
House Sponsor: Vincent Piombino

Senate Sponsor: Graham Allen
Referred To:
Part 2. School-Based Management.
115C-105.25. Budget flexibility.
(a) Consistent with improving student performance, a local board shall provide maximum
flexibility to schools in the use of funds to enable the schools to accomplish their goals.
(b) Subject to the following limitations, local boards of education may transfer and may
approve transfers of funds between funding allotment categories:
(c) Furthermore it is in the interest of the state to increase current funding by 2% until the
state reaches the current national average spending at ten thousand, seven hundred or to
raise the percent until thje amount of spending matches the national average with changes
due to inflation and changing spending rates, one hundred seventy four dollars (174.00),
of the current funding per student, eight thousand six hundred and two dollars (8,620.00),
yearly until the state reaches the current national average spending at ten thousand seven
hundred dollars (10,700).
(1a) Funds for children with disabilities, career and technical education, and other
purposes may be transferred only as permitted by federal law and the conditions of
federal grants or as provided through any rules that the State
Board of Education adopts to ensure compliance with federal regulations. (2), (2a)
Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013.
(3) No funds shall be transferred into the central office administration allotment
category.
(3a) No funds shall be transferred out of the teacher assistants allotment category. (4), (5)
Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013.
1. (5a) Positions allocated for classroom teachers may be converted to dollar
equivalents to contract for visiting international exchange teachers. These positions shall
be converted at the statewide average salary for classroom teachers, including benefits.
The converted funds shall be used only to cover the costs associated with bringing
visiting international exchange teachers to the local school administrative unit through a
State-approved visiting international exchange teacher program and supporting the
visiting exchange teachers.
173
1. (5b) Except as provided in subdivision (5a) of this subsection, positions allocated for
classroom teachers and instructional support personnel may be converted to dollar
equivalents for any purpose authorized by the policies of the State Board of Education.
These positions shall be converted at the salary on the first step of the "A" Teachers
Salary Schedule. Certified position allotments shall not be transferred to dollars to hire
the same type of position.
2. (5c) Funds allocated for school building administration may be converted for any purpose
authorized by the policies of the State Board of Education. For funds related to principal
positions, the salary transferred shall be based on the first step of the Principal III Salary
Schedule. For funds related to assistant principal months of employment, the salary
transferred shall be based on the first step of the Assistant Principal Salary Schedule.
Certified position allotments shall not be transferred to dollars to hire the same type of
position.
(6) through (9) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013.
1. (10) Funds to carry out the elements of the Excellent Public Schools Act that are
contained in Section 7A.1 of S.L. 2012-142 shall not be transferred.
2. (11) (Effective July 1, 2016, and applicable with the 2016-2017 school year see
Editor's note for repeal) No funds shall be transferred into the driver education allotment
category.
(c) To ensure that parents, educators, and the general public are informed on how State
funds have been used to address local educational priorities, each local school
administrative unit shall publish the following information on its Web site by October 15
of each year:
G.S. 115C-105.25 Page 1
G.S. 115C-105.25
Page 2
(1) (2) (3) (4)
(5)
A description of each program report code, written in plain English, and a summary of
the prior fiscal year's expenditure of State funds within each program report code.
A description of each object code within a program report code, written in plain English,
and a summary of the prior fiscal year's expenditure of State funds for each object code.
A description of each allotment transfer that increased or decreased the initial allotment
amount by more than five percent (5%) and the educational priorities that necessitated the
transfer.
A description of any transfer of funds from the textbooks and digital resources allotment
into another allotment category with an explanation of why the transfer from the
textbooks and digital resources allotment was made to a different allotment category.
A chart that clearly reflects how the local school administrative unit spent State funds.
(1995 (Reg. Sess., 1996), c. 716, s. 3; 1996, 2nd Ex. Sess., c. 18, ss. 18.24(h)-(k); 1998212, s. 9.20(b); 1999-237, s. 8.25(c); 2001-424, s. 28.22; 2005-276, s. 7.22(a); 2006-69,
s. 3(b); 2011-145, s. 7.13(g); 2011-391, s. 14(b); 2013-360, s. 8.14; 2015-241, ss. 8.33,
8.39(c), 8.47(a).)
Section 2. This Act is effective upon January first (1st) of the following year from
ratification.
174
175

79TH ANNUAL SESSION
NCSL SB 009
Short Title: Religious Freedom for Office
House Sponsor:
Senate Sponsor: Patrick L. Guin
Referred To: Rules
A BILL TO REPEAL
RELIGIOUS QUALIFICATIONS FOR PUBLIC OFFICES
Section 1: N.C. Constitution Article VI 8 is amended and reads as
rewritten:
8. Disqualifications for office.
The following persons shall be disqualified for office:
First, any person who shall deny the being of Almighty God.
Second First, with respect to any office that is filled by election by the people, any person
who is not qualified to vote in an election for that office.
Third Second, any person who has been adjudged guilty of treason or any other felony
against this State or the United States, or any person who has been adjudged guilty of a
felony in another state that also would be a felony if it had been committed in this State,
or any person who has been adjudged guilty of corruption or malpractice in any office, or
any person who has been removed by impeachment from any office, and who has not
been restored to the rights of citizenship in the manner prescribed by law.
176

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North Carolina Student

North Carolina Student Legislature

Office of the Secretary of State,

Joshua David Fritz

Office of the Lieutenant Governor

Johnathan Cort Lesnik

Office of the Governor

Ridge Tyler Parker

History of the North Carolina Student Legislature...page 7

Resolutions introduced included eliminating segregation on

Secretary of State, and Attorney General. Incorporation of the

The Student Legislature has seen many exciting changes during

North Carolina Student Legislature

Annual Session Officers

Speaker of the House

AGENDA SUBJECT TO CHANGE WITHOUT NOTICE

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION

Short Title: The United We Stand Act

The North Carolina Student Legislature Enacts:

(e) _ Retention. A law enforcement agency shall retain an original, unredacted

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION

Support for Bully Victims in Public Schools

The North Carolina Student Legislature Enacts:

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION

Short Title: Online Voter Registration Act

The North Carolina Student Legislature Enacts:

Verify that an applicant to register in its county is not also registered in

Be notified automatically that a registered voter in its county has

Receive automatically data about a person who has applied to vote at a

Section 2. This Act shall be effective upon enrollment.

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION

Short Title: Limit Contributions by State Vendors

The North Carolina Student Legislature Enacts:

An individual employed by a corporation or person with a contract

Will derive a direct financial benefit from the contract. Direct

Oversees the performance of the contract and has authority to

Participates in the development of specifications or terms and in

An individual who is a member of a board, commission or other

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION

Short Title: Policies That Encourage High School to Work Partnerships

The North Carolina Student Legislature Enacts:

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION

Short Title: Human Resource Center/ Homeless persons.

The North Carolina Student Legislature Enacts:

PART II. HOMELESS VETERANS BENEFITS

165-6. Powers and duties of the Department.

Section 3. G.S. 96-21 reads as rewritten:

PART III. HOMELESS CHILDREN AND SCHOOL

PART IV. HUMAN RESOURCE

126-3. Office of State Human Resources established and responsibilities outlined;

(8) Developing criteria and standards to measure the level of compliance or

Section 7. G.S. 55A-16-01 reads as written:

(3) Resolutions adopted by its members or board of directors relating to the

PART V. EFFECTIVE DATE

IN THE NORTH CAROLINA STUDENT LEGISLATURE

79TH ANNUAL SESSION