House Bill 153-Third Edition

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H 3

HOUSE BILL 153

Committee Substitute Favorable 3/31/11
Third Edition Engrossed 4/6/11

Short Title: No Public Retirement for Convicted Felons.		(Public)
Sponsors:
Referred to:

February 22, 2011

A BILL TO BE ENTITLED

AN ACT to prohibit a person who has been convicted of a felony from receiving retirement benefits from the TEachers' and State Employees' Retirement System, the local governmental employees' retirement system, the consolidated judicial retirement system, or the legislative retirement system.

The General Assembly of North Carolina enacts:

SECTION 1. Article 1 of Chapter 135 of the General Statutes is amended by adding a new section to read:

"§ 135-18.11. Forfeiture of retirement benefits for certain felonies related to employment or holding office.

(a) Except as provided in G.S. 135-4(ii), the Board of Trustees shall not pay any retirement benefits or allowances, except for a return of member contributions plus interest, to any member who is convicted of any felony under federal law or the laws of this State if all of the following apply:

(1) The offense is committed while the member is an employee, a teacher, or an elected or appointed officer of a participating employer.

(2) The individual's conduct is directly related to the individual's office or employment.

(b) Subdivision (a)(2) of this section shall apply to felony convictions where the court finds under G.S. 15A-1340.16(d)(9) or other applicable state or federal procedure that the individual's conduct is directly related to the individual's office or employment.

(c) If a member or former member whose benefits under the System were forfeited under this section, except for the return of member contributions plus interest, subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set aside for any reason, then the member or former member may seek a reversal of the benefit forfeiture by presenting sufficient evidence to the State Treasurer. If the State Treasurer determines a reversal of the benefit forfeiture is appropriate, then all benefits will be restored upon payment of all accumulated contributions plus interest. Repayment of all accumulated contributions that have been received by the individual under the forfeiture provisions of this section must be made in a total lump sum payment with interest compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit forfeiture must receive reinstatement of the service credit forfeited."

SECTION 2. G.S. 135-4 is amended by adding a new subsection to read:

"(ii) If a member who is an employee, a teacher, or an officer of a participating employer and has not vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 135-18.11 for acts committed after July 1, 2011, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is an employee or a teacher and has vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 135-18.11 for acts committed after July 1, 2011, then that member is not entitled to any creditable service that accrued after July 1, 2011."

SECTION 3. Article 3 of Chapter 128 of the General Statutes is amended by adding a new section to read:

"§ 128-38.5. Forfeiture of retirement benefits for certain felonies related to employment or holding office.

(a) Except as provided in G.S. 128-26(x), the Board of Trustees shall not pay any retirement benefits or allowances, except for a return of member contributions plus interest, to any member who is convicted of any felony under federal law or the laws of this State if all of the following apply:

(1) The offense is committed while the member is an employee, a teacher, or an officer of a participating employer.

(2) The individual's conduct is directly related to the individual's office or employment.

SECTION 4. G.S. 128-26 is amended by adding a new subsection to read:

"(x) If a member who is an employee or an elected or appointed officer of the employer and has not vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 126-38.5 for acts committed after July 1, 2011, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is an employee or a teacher and has vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 126-38.5 for acts committed after July 1, 2011, then that member is not entitled to any creditable service that accrued after July 1, 2011."

SECTION 5. Article 4 of Chapter 135 of the General Statutes is amended by adding a new section to read:

"§ 135-75.2. Forfeiture of retirement benefits for certain felonies related to employment or holding office.

(a) Except as provided in G.S. 135-56(j), the Board of Trustees shall not pay any retirement benefits or allowances, except for a return of member contributions plus interest, to any member who is convicted of any felony under federal law or the laws of this State if all of the following apply:

(1) The offense is committed while the member is a judge, a district attorney, a clerk of superior court, a public defender, or the Director of Indigent Defense Services.

(2) The individual's conduct is directly related to the individual's office or employment.

SECTION 6. G.S. 135-56 is amended by adding a new subsection to read:

"(j) If a member who is a judge, district attorney, clerk of superior court, public defender, or the Director of Indigent Defense Services and has not vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 135-75.2 for acts committed after July 1, 2011, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is a judge, district attorney, clerk of superior court, public defender, or the Director of Indigent Defense Services and has vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 135-75.2 for acts committed after July 1, 2011, then that member is not entitled to any creditable service that accrued after July 1, 2011."

SECTION 7. Article 1A of Chapter 120 of the General Statutes is amended by adding a new section to read:

"§ 120-4.34. Forfeiture of retirement benefits for certain felonies related to employment or holding office.

(a) Except as provided in G.S. 120-4.12(g), the Board of Trustees shall not pay any retirement benefits or allowances, except for a return of member contributions plus interest, to any member who is convicted of any felony under federal law or the laws of this State if all of the following apply:

(1) The offense is committed while the member is serving as a member of the General Assembly.

(2) The individual's conduct is directly related to the individual's office or employment.

SECTION 8. G.S. 120-4.12 is amended by adding a new subsection to read:

"(g) If a member who has not vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 120-4.34 for acts committed after July 1, 2011, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is a present member of the General Assembly and has vested in this System on July 1, 2011, is convicted of an offense listed in G.S. 120-4.34 for acts committed after July 1, 2011, then that member is not entitled to any creditable service that accrued after July 1, 2011."

SECTION 9. G.S. 15A-1340.16(d)(9) reads as rewritten:

"(d) Aggravating Factors. - The following are aggravating factors:

…

(9) The defendant held public elected or appointed office or public employment at the time of the offense and the offense directly related to the conduct of the ~~office.~~office or employment.

…."

SECTION 10. G.S. 15A-1340.16 is amended by adding a new subsection to read:

"(f) If the court determines that an aggravating factor under subdivision (d)(9) of this section has been proven, the court shall notify the State Treasurer of the fact of the conviction as well as the finding of the aggravating factor. The indictment charging the defendant with the underlying offense must include notice that the State seeks to prove the defendant acted in accordance with subdivision (d)(9) of this section and that the State will seek to prove that as an aggravating factor."

SECTION 11. The State Treasurer shall negotiate a memorandum of agreement with the United States Attorneys for the Eastern, Middle, and Western Districts of North Carolina whereby the prosecutors will notify the State Treasurer of convictions under G.S. 135-18.11(b), 128-38.5(b), 135-75.2(b), and 120-4.34(b).

SECTION 12. This act becomes effective July 1, 2011, and applies to offenses committed on or after that date.