GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2003

SESSION LAW 2004-203

HOUSE BILL 281

AN ACT to make technical corrections and conforming changes to the general statutes as recommended by the general statutes commission, and to make various other changes to the general statutes and session laws.

The General Assembly of North Carolina enacts:

PART I. TECHNICAL CORRECTIONS RECOMMENDED BY THE GENERAL STATUTES COMMISSION

SECTION 1.  G.S. 14‑402(c)(3) reads as rewritten:

"(c)      The following definitions apply in this section:

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(3)       Crossbow. – A mechanical device consisting of, but not limited to, strings, cables, and prods transversely mounted on either a shoulder or hand‑held stock. This devise device is mechanically held at full or partial draw and released by a trigger or similar mechanism which that is incorporated into a stock or handle. When operated, the crossbow discharges a projectile known as a bolt.

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SECTION 2.  G.S. 20‑7(b1) reads as rewritten:

"(b1)    Application. – To obtain a an identification card, learners permit, or drivers license from the Division, a person shall complete an application form provided by the Division, present at least two forms of identification approved by the Commissioner, be a resident of this State, and and, except for an identification card, demonstrate his or her physical and mental ability to drive safely a motor vehicle included in the class of license for which the person has applied. At least one of the forms of identification shall indicate the applicant's residence address. The Division may copy the identification presented or hold it for a brief period of time to verify its authenticity. To obtain an endorsement, a person shall demonstrate his or her physical and mental ability to drive safely the type of motor vehicle for which the endorsement is required.

The application form shall request all of the following information, and it shall contain the disclosures concerning the request for an applicant's social security number required by section 7 of the federal Privacy Act of 1974, Pub. L. No. 93 579:

(1)       The applicant's full name.

(2)       The applicant's mailing address and residence address.

(3)       A physical description of the applicant, including the applicant's sex, height, eye color, and hair color.

(4)       The applicant's date of birth.

(5)       The applicant's valid social security number.

(6)       The applicant's signature.

If an applicant does not have a valid social security number and is ineligible to obtain one, the applicant shall swear to or affirm that fact under penalty of perjury. In such case, the applicant may provide a valid Individual Taxpayer Identification Number issued by the Internal Revenue Service to that person.

The Division shall not issue an identification card, learners permit, or drivers license to an applicant who fails to provide either the applicant's valid social security number or the applicant's valid Individual Taxpayer Identification Number."

SECTION 3.  G.S. 49‑13.1 is repealed.

SECTION 4.  G.S. 55B‑2(6), as amended by Section 3 of S.L. 2003‑117, reads as rewritten:

"(6)      The term "professional service" means any type of personal or professional service of the public which requires as a condition precedent to the rendering of such service the obtaining of a license from a licensing board as herein defined, and pursuant to the following provisions of the General Statutes: Chapter 83A, "Architects"; Chapter 84, "Attorneys‑at‑Law"; Chapter 93, "Public Accountants"; and the following Articles in Chapter 90: Article 1, "Practice of Medicine," Article 2, "Dentistry," Article 6, "Optometry," Article 7, "Osteopathy," Article 8, "Chiropractic," Article 9A, "Nursing Practice Act," with regard to registered nurses, Article 11, "Veterinarians," Article 12A, "Podiatrists," Article 18A, "Practicing Psychologists," Article 18C, "Marriage and Family Therapy Licensure," Article 18D, "Occupational Therapy," and Article 24, "Licensed Professional Counselors"; Chapter 89C, "Engineering and Land Surveying"; Chapter 89A, "Landscape Architects"; Chapter 90B, "Social Worker Certification and Licensure Act" with regard to Certified Licensed Clinical Social Workers as defined by G.S. 90B‑3; Chapter 89E, "Geologists"; Chapter 89B, "Foresters"; and Chapter 89F, "North Carolina Soil Scientist Licensing Act."

SECTION 5.(a)  G.S. 58‑36‑10(3) reads as rewritten:

"§ 58‑36‑10.  Method of rate making; factors considered.

The following standards shall apply to the making and use of rates:

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(3)       In the case of property insurance rates under this Article, consideration may be given to the experience of property insurance business during the most recent five‑year period for which that experience is available. In the case of property insurance rates under this Article, consideration shall be given to the insurance public protection classifications of fire districts established by the Commissioner. The Commissioner shall establish and modify from time to time insurance public protection districts for all rural areas of the State and for cities with populations of 100,000 or fewer, according to the most recent annual population estimates certified by the State Planning Budget Officer. In establishing and modifying these districts, the Commissioner shall use standards at least equivalent to those used by the Insurance Services Office, Inc., or any successor organization. The standards developed by the Commissioner are subject to Article 2A of Chapter 150B of the General Statutes. The insurance public protection classifications established by the Commissioner issued pursuant to the provisions of this Article shall be subject to appeal as provided in G.S. 58‑2‑75, et seq. The exceptions stated in G.S. 58‑2‑75(a) do not apply.

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SECTION 5.(b)  G.S. 58‑40‑25(4) reads as rewritten:

"§ 58‑40‑25.  Rating methods.

In determining whether rates comply with the standards under G.S. 58‑40‑20, the following criteria shall be applied:

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(4)       In the case of property insurance rates under this Article, consideration shall be given to the insurance public protection classifications of fire districts established by the Commissioner. The Commissioner shall establish and modify from time to time insurance public protection districts for all rural areas of the State and for cities with populations of 100,000 or fewer, according to the most recent annual population estimates certified by the State Planning Budget Officer. In establishing and modifying these districts, the Commissioner shall use standards at least equivalent to those used by the Insurance Services Office, Inc., or any successor organization. The standards developed by the Commissioner are subject to Article 2A of Chapter 150B of the General Statutes. The insurance public protection classifications established by the Commissioner issued pursuant to the provisions of this Article shall be subject to appeal as provided in G.S. 58‑2‑75, et seq. The exceptions stated in G.S. 58‑2‑75(a) do not apply."

SECTION 5.(c)  G.S. 58‑87‑1(b) reads as rewritten:

"(b)      A fire department is eligible for a grant under this section if it meets all of the following conditions:

(1)       It serves a response area of 6,000 or less in population.

(2)       It consists entirely of volunteer members, with the exception that the unit may have paid members to fill the equivalent of three full‑time paid positions.

(3)       It has been certified by the Department of Insurance.

In making the population determination under subdivision (1) of this subsection, the Department shall use the most recent annual population estimates certified by the State Planning Budget Officer."

SECTION 5.(d)  G.S. 105‑113.82(e) reads as rewritten:

"(e)      Population Estimates. – To determine the population of a city or county for purposes of the distribution required by this section, the Secretary shall use the most recent annual estimate of population certified by the State Planning Budget Officer."

SECTION 5.(e)  G.S. 105‑129.3(b1) reads as rewritten:

"(b1)    Data. – In measuring rates of unemployment and per capita income, the Secretary shall use the latest available data published by a State or federal agency generally recognized as having expertise concerning the data. In measuring population and population growth, the Secretary shall use the most recent estimates of population certified by the State Planning Budget Officer."

SECTION 5.(f)  G.S. 105‑129.3A(a) reads as rewritten:

"(a)      Development Zone Defined. – A development zone is an area comprised of one or more contiguous census tracts, census block groups, or both in the most recent federal decennial census that meets all of the following conditions:

(1)       Every census tract and census block group in the zone is located in whole or in part within the primary corporate limits of a city with a population of more than 5,000 according to the most recent annual population estimates certified by the State Planning Budget Officer.

(2)       It has a population of 1,000 or more according to the most recent annual population estimates certified by the State Planning Budget Officer.

(3)       More than twenty percent (20%) of its population is below the poverty level according to the most recent federal decennial census.

(4)       Every census tract and census block group in the zone meets at least one of the following conditions:

a.         More than ten percent (10%) of its population is below the poverty level according to the most recent federal decennial census.

b.         It is immediately adjacent to another census tract or census block group that is in the same zone and has more than twenty percent (20%) of its population below the poverty level according to the most recent federal decennial census.

(5)       None of the census tracts or census block groups in the zone is located in another development zone designated by the Secretary of Commerce."

SECTION 5.(g)  G.S. 105‑164.44F(b) reads as rewritten:

"(b)      Share of Cities Incorporated on or After January 1, 2001. – The share of a city incorporated on or after January 1, 2001, is its per capita share of the amount to be distributed to all cities incorporated on or after this date. This amount is the proportion of the total to be distributed under this section that is the same as the proportion of the population of cities incorporated on or after January 1, 2001, compared to the population of all cities. In making the distribution under this subsection, the Secretary must use the most recent annual population estimates certified to the Secretary by the State Planning Budget Officer."

SECTION 5.(h)  G.S. 105‑187.19(b) reads as rewritten:

"(b)      Each quarter, the Secretary shall credit five percent (5%) of the net tax proceeds to the Solid Waste Management Trust Fund and shall credit twenty‑seven percent (27%) of the net tax proceeds to the Scrap Tire Disposal Account. The Secretary shall distribute the remaining sixty‑eight percent (68%) 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 Planning Budget Officer."

SECTION 5.(i)  G.S. 105‑187.24 reads as rewritten:

"§ 105‑187.24.  Use of tax proceeds.

The Secretary shall distribute the taxes collected under this Article, less the Department of Revenue's allowance for administrative expenses, in accordance with this section. The Secretary may retain the Department's cost of collection, not to exceed two hundred twenty‑five thousand dollars ($225,000) a year, as reimbursement to the Department.

Each quarter, the Secretary shall credit eight percent (8%) of the net tax proceeds to the Solid Waste Management Trust Fund and shall credit twenty percent (20%) of the net tax proceeds to the White Goods Management Account. The Secretary shall distribute the remaining seventy‑two percent (72%) 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 Planning Budget Officer. The Department shall not distribute the tax proceeds to a county when notified not to do so by the Department of Environment and Natural Resources under G.S. 130A‑309.87. If a county is not entitled to a distribution, the proceeds allocated for that county will be credited to the White Goods Management Account.

A county may use funds distributed to it under this section only as provided in G.S. 130A‑309.82. A county that receives funds under this section and that has an interlocal agreement with another unit of local government under which the other unit provides for the disposal of solid waste for the county must transfer the amount received under this section to that other unit. A unit to which funds are transferred is subject to the same restrictions on use of the funds as the county."

SECTION 5.(j)  Effective July 1, 2003, G.S. 105‑472(b) reads as rewritten:

"(b)      Distribution Between Counties and Cities. – The Secretary shall divide the amount allocated to each taxing county among the county and its municipalities in accordance with the method determined by the county. The board of county commissioners shall, by resolution, choose one of the following methods of distribution:

(1)       Per Capita Method. – The net proceeds of the tax collected in a taxing county shall be distributed to that county and to the municipalities in the county on a per capita basis according to the total population of the taxing county, plus the total population of the municipalities in the county. In the case of a municipality located in more than one county, only that part of its population living in the taxing county is considered its "total population". In order to make the distribution, the Secretary shall determine a per capita figure by dividing the amount allocated to each taxing county by the total population of that county plus the total population of all municipalities in the county. The Secretary shall then multiply this per capita figure by the population of the taxing county and by the population of each municipality in the county; each respective product shall be the amount to be distributed to the county and to each municipality in the county. To determine the population of each county and each municipality, the Secretary shall use the most recent annual estimate of population certified by the State Planning Budget Officer.

(2)       Ad Valorem Method. – The net proceeds of the tax collected in a taxing county shall be distributed to that county and the municipalities in the county in proportion to the total amount of ad valorem taxes levied by each on property having a tax situs in the taxing county during the fiscal year next preceding the distribution. For purposes of this section, the amount of the ad valorem taxes levied by a county or municipality includes ad valorem taxes levied by the county or municipality in behalf of a taxing district and collected by the county or municipality. In addition, the amount of taxes levied by a county includes ad valorem taxes levied by a merged school administrative unit described in G.S. 115C‑513 in the part of the unit located in the county. In computing the amount of tax proceeds to be distributed to each county and municipality, the amount of any ad valorem taxes levied but not substantially collected shall be ignored. Each county and municipality receiving a distribution of the proceeds of the tax levied under this Article shall in turn immediately share the proceeds with each district in behalf of which the county or municipality levied ad valorem taxes in the proportion that the district levy bears to the total levy of the county or municipality. Any county or municipality that fails to provide the Department of Revenue with information concerning ad valorem taxes levied by it adequate to permit a timely determination of its appropriate share of tax proceeds collected under this Article may be excluded by the Secretary from each monthly distribution with respect to which the information was not provided in a timely manner, and those tax proceeds shall then be distributed only to the remaining counties or municipalities, as appropriate. For the purpose of computing the distribution of the tax under this subsection to any county and the municipalities located in the county for any month with respect to which the property valuation of a public service company is the subject of an appeal and the Department of Revenue is restrained by law from certifying the valuation to the county and the municipalities in the county, the Department shall use the last property valuation of the public service company that has been certified.

The board of county commissioners in each taxing county shall, by resolution adopted during the month of April of each year, determine which of the two foregoing methods of distribution shall be in effect in the county during the next succeeding fiscal year. In order for the resolution to be effective, a certified copy of it must be delivered to the Secretary in Raleigh within 15 calendar days after its adoption. If the board fails to adopt a resolution choosing a method of distribution not then in effect in the county, or if a certified copy of the resolution is not timely delivered to the Secretary, the method of distribution then in effect in the county shall continue in effect for the following fiscal year. The method of distribution in effect on the first of July of each fiscal year shall apply to every distribution made during that fiscal year."

SECTION 5.(k)  G.S. 136‑202(c) reads as rewritten:

"(c)      The Department, the metropolitan planning organizations, and the Department of Environment and Natural Resources shall jointly evaluate and adjust the regions defined in each regional travel demand model at least once every five years and no later than October 1 of the year following each decennial federal census. The evaluation and adjustment shall be based on decennial census data and the most recent populations estimates certified by the State Planning Budget Officer. The adjustment of these boundaries shall reflect current and projected patterns of population, employment, travel, congestion, commuting, and public transportation use and the effects of these patterns on air quality."

SECTION 5.(l)  G.S. 143‑215.107A(d) reads as rewritten:

"(d)      Additional Counties. – The Commission may require that motor vehicle emissions inspections be performed in counties in addition to those set out in subsection (c) of this section. In determining whether to require that motor vehicle emissions inspections be performed in a county, the Commission may consider the population of, and distribution of population in, the county; the projected change in population of, and distribution of population in, the county; the number of vehicles registered in the county; the projected change in the number of vehicles registered in the county; vehicle miles traveled in the county; the projected change in vehicle miles traveled in the county; current and projected commuting patterns in the county; and the current and projected impact of these factors on attainment of air quality standards in the county and in areas outside the county. The Commission may not require that motor vehicle emissions inspections be performed in any county with a population of less than 40,000 based on the most recent population estimates prepared by the State Planning Budget Officer. The Commission may not require that motor vehicle emissions inspections be performed in any county in which the number of vehicle miles traveled per day is less than 900,000, based on the most recent estimates prepared by the Department of Transportation. In order to disapprove a rule that requires that motor vehicle emissions inspections be performed in one or more additional counties, a bill introduced pursuant to G.S. 150B‑21.3(b) must amend subsection (c) of this section to add one or more other counties in which the total population and vehicle miles traveled per day equal or exceed the total population and vehicle miles traveled in the county or counties listed in the rule that the bill would disapprove."

SECTION 5.(m)  G.S. 160A‑536(c) reads as rewritten:

"(c)      Urban Area Revitalization Defined. – As used in this section, the term "urban area revitalization projects" includes the provision within an urban area of any service or facility that may be provided in a downtown area as a downtown revitalization project under subdivision (a)(2) and subsection (b) of this section. As used in this section, the term "urban area" means an area that (i) is located within a city whose population exceeds 150,000 according to the most recent annual population statistics certified by the State Planning Budget Officer and (ii) meets one or more of the following conditions:

(1)       It is the central business district of the city.

(2)       It consists primarily of existing or redeveloping concentrations of industrial, retail, wholesale, office, or significant employment‑generating uses, or any combination of these uses.

(3)       It is located in or along a major transportation corridor and does not include any residential parcels that are not, at their closest point, within 150 feet of the major transportation corridor right‑of‑way or any nonresidentially zoned parcels that are not, at their closest point, within 1,500 feet of the major transportation corridor right‑of‑way.

(4)       It has as its center and focus a major concentration of public or institutional uses, such as airports, seaports, colleges or universities, hospitals and health care facilities, or governmental facilities."

SECTION 5.(n)  G.S. 162A‑6(a)(14d) reads as rewritten:

"(a)      Each authority created hereunder shall be deemed to be a public instrumentality exercising public and essential governmental functions to provide for the public health and welfare, and each authority is authorized and empowered:

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(14d)   To require the owners of developed property on which there are situated one or more residential dwelling units or commercial establishments located within the jurisdiction of the authority and within a reasonable distance of any waterline or sewer collection line owned, leased as lessee, or operated by the authority to connect the property with the waterline, sewer connection line, or both and fix charges for the connections. The power granted by this subdivision may be exercised by an authority only to the extent that the service, whether water, sewer, or a combination thereof, to be provided by the authority is not then being provided to the improved property by any other political subdivision or by a public utility regulated by the North Carolina Utilities Commission pursuant to Chapter 62 of the General Statutes. In the case of improved property that would qualify for the issuance of a building permit for the construction of one or more residential dwelling units or commercial establishments and where the authority has installed water or sewer lines or a combination thereof directly available to the property, the authority may require payment of a periodic availability charge, not to exceed the minimum periodic service charge for properties that are connected. This subdivision applies only to a water and sewer authority whose membership includes part or all of a county that has a population of at least 40,000 according to the most recent annual population estimates certified by the State Planning Budget Officer.

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SECTION 6.  G.S. 78A‑17 reads as rewritten:

"§ 78A‑17.  Exempt transactions.

Except as otherwise provided in this Chapter, the following transactions are exempted from G.S. 78A‑24 and G.S. 78A‑49(d):

(1)       Any isolated nonissuer transaction, whether effected through a dealer or not;not.

(2)       Any nonissuer distribution other than by a controlling person of an outstanding security if

a.         A recognized securities manual contains the names of the issuer's officers and directors, a balance sheet of the issuer as of a date within 18 months, and a profit and loss statement for either the fiscal year preceding that date or the most recent year of operations, or

b.         A registered dealer files with the Administrator such information relating to the issuer as the Administrator may by rule or order require, or

c.         The security has a fixed maturity or a fixed interest or dividend provision and there has been no default during the current fiscal year or within the three preceding fiscal years, or during the existence of the issuer and any predecessors if less than three years, in the payment of principal, interest, or dividends on the security;security.

(3)       Any nonissuer transaction effected by or through a registered dealer pursuant to an unsolicited order or offer to buy; but the Administrator may by rule require that the customer acknowledge upon a specified form that the sale was unsolicited, and that a signed copy of each such form be preserved by the dealer for a specified period;period.

(4)       Any transaction between the issuer or other person on whose behalf the offering is made and an underwriter, or among underwriters;underwriters.

(5)       Any transaction in a bond or other evidence of indebtedness secured by a lien or security interest in real or personal property, or by an agreement for the sale of real estate or chattels, if the entire security interest or agreement, together with all the bonds or other evidences of indebtedness secured thereby, is offered and sold as a unit;unit.

(6)       Any transaction by an executor, administrator, sheriff, marshal, receiver, trustee in bankruptcy, guardian, or conservator;conservator.

(7)       Any transaction executed by a person holding a bona fide security interest without any purpose of evading this Chapter;Chapter.

(8)       Any offer or sale to an entity which has a net worth in excess of one million dollars ($1,000,000) as determined by generally accepted accounting principles, bank, savings institution, trust company, insurance company, investment company as defined in the Investment Company Act of 1940, pension or profit‑sharing trust, or other financial institution or institutional buyer, or to a dealer, whether the purchaser is acting for itself or in some fiduciary capacity;capacity.

(9)       Any transaction pursuant to an offer directed by the offeror to not more than 25 persons, other than those persons designated in subdivision (8), in this State during any period of 12 consecutive months, whether or not the offeror or any of the offerees is then present in this State, if the seller reasonably believes that all the buyers in this State are purchasing for investment. The Administrator may by rule or order withdraw, amend, or further condition this exemption for any security or security transaction. There is established a fee of one hundred fifty dollars ($150.00) to recover costs for any filing required.

(10)     Any offer or sale of a preorganizational certificate or subscription if: (i) no commission or other remuneration is paid or given directly or indirectly for soliciting any prospective subscriber; (ii) no public advertising or solicitation is used in connection with the offer or sale; (iii) the number of subscribers does not exceed 10 and the number of offerees does not exceed 25; and (iv) no payment is made by any subscriber.

(11)     Any transaction pursuant to an offer to existing security holders of the issuer, including persons who at the time of the transaction are holders of convertible securities, nontransferable warrants, or transferable warrants exercisable within not more than 90 days of their issuance, if (i) no commission or other remuneration (other than a standby commission) is paid or given directly or indirectly for soliciting any security holder in this State, or (ii) the issuer first files a notice specifying the terms of the offer and the Administrator does not by order disallow the exemption within the next 10 full business days;days.

(12)     Any offer (but not a sale) of a security for which registration statements have been filed under both this Chapter and the Securities Act of 1933 if no stop order or refusal order is in effect and no public proceeding or examination looking toward such an order is pending under either act;act.

(13)     Any offer or sale by a domestic entity of its own securities if (i) the entity was organized for the purpose of promoting community, agricultural or industrial development of the area in which the principal office is located, (ii) the offer or sale has been approved by resolution of the county commissioners of the county in which its principal office is located, and, if located in a municipality or within two miles of the boundaries thereof, by resolution of the governing body of such municipality, (iii) no commission or other remuneration is paid or given directly or indirectly for soliciting any prospective buyer in this State, and (iv) the corporation entity is both organized and operated principally to promote some community, industrial, or agricultural development that confers a public benefit rather than organized and operated principally to generate a pecuniary profit;profit.

(14)     Any offer, sale or issuance of securities pursuant to an employees' stock or equity purchase, option, savings, pension, profit‑sharing, or other similar benefit plan that is exempt under the provisions of G.S. 78A‑16(11);G.S.  78A‑16(11).

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SECTION 7.  G.S. 90‑210.69(c) reads as rewritten:

"(c)      In accordance with the provisions of Chapter 150B of the General Statutes, if the Board finds that a licensee, an applicant for a license or an applicant for license renewal is guilty of one or more of the following, the Board may refuse to issue or renew a license or may suspend or revoke a license or place the holder thereof on probation upon conditions set by the Board, with revocation upon failure to comply with the conditions:

(1)       Offering to engage or engaging in activities for which a license is required under this Article but without having obtained such a license.

(2)       Aiding or abetting an unlicensed person, firm, partnership, association, corporation or other entity to offer to engage or engage in such activities.

(3)       A crime involving fraud or moral turpitude by conviction thereof.

(4)       Fraud or misrepresentation in obtaining or receiving a license or in preneed funeral planning.

(5)       False or misleading advertising.

(6)       Violating or cooperating with others to violate any provision of this Article, the rules and regulations of the Board, adopted or the standards set forth in Funeral Industry Practices, 16 C.F.R. 453 (1984), as amended from time to time.

In any case in which the Board is authorized to take any of the actions permitted under this subsection, the Board may instead accept an offer in compromise of the charges whereby the accused shall pay to the Board a penalty of not more than five thousand dollars ($5,000). In any case in which the Board is entitled to place a licensee on a term of probation, the Board may also impose a penalty of not more than five thousand dollars ($5,000) in conjunction with such probation."

SECTION 8.  G.S. 96‑4(t)(2) reads as rewritten:

"(t)       Confidentiality of Records, Reports, and Information Obtained from Claimants, Employers, and Units of Government.

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(2)       Job Service Information. – (i) Except as hereinafter otherwise provided it is unlawful for any person to disclose any information obtained by the North Carolina State Employment Service Division from workers, employers, applicants, or other persons or groups of persons in the course of administering the State Public Employment Service Program. Provided, however, that if all interested parties waive in writing the right to hold such information confidential, the information may be disclosed and used but only for those purposes that the parties and the Commission have agreed upon in writing. (ii) The Employment Service Division shall make public, through the newspapers and any other suitable media, information as to job openings and available applicants for the purpose of supplying the demand for workers and employment. (iii) The Labor Market Information Division shall collect, collate, and publish statistical and other information relating to the work under the Commission's jurisdiction; investigate economic developments, and the extent and causes of unemployment and its remedies with the view of preparing for the information of the General Assembly such facts as in the Commission's opinion may make further legislation desirable. (iv) Except as provided by Commission regulation, any information published pursuant to this subsection (II) subdivision shall not be published in any manner revealing the identity of the applicant or the employing unit.

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SECTION 9.  G.S. 110‑136.13(a) reads as rewritten:

"(a)      For purposes of this section, G.S. 110‑136.11, 110‑136.12, and 110‑14, 110‑136.14, the term "employer" means employer as is defined at 29 U.S.C. § 203(d) in the Fair Labor Standards Act."

SECTION 10.  G.S. 143‑129.8(b) reads as rewritten:

"(b)      Contracts for information technology may be entered into under a request for proposals procedure that satisfies the following minimum requirements:

(1)       Notice of the request for proposals shall be given in accordance with G.S. 143‑129(a).G.S.  143‑129(b).

(2)       Contracts shall be awarded to the person or entity that submits the best overall proposal as determined by the awarding authority. Factors to be considered in awarding contracts shall be identified in the request for proposals."

SECTION 11.  G.S. 147‑69 reads as rewritten:

"§ 147‑69.  Deposits of State funds in banks and savings and loan associations regulated.

Banks and savings and loan associations having State deposits shall furnish to the Auditor of the State, upon his the Auditor's request, a statement of the moneys which have been received and paid by them on account of the treasury. The Treasurer shall keep in his the Treasurer's office a full account of all moneys deposited in and drawn from all banks and savings and loan associations in which he the Treasurer may deposit or cause to be deposited any of the public funds, and such these accounts shall be open to the inspection of the Auditor. The Treasurer shall sign all checks, and no depository bank or savings and loan association shall be authorized to pay checks not bearing his the Treasurer's official signature. The Treasurer is authorized to use a facsimile signature machine or device in affixing his the Treasurer's signature to warrants, checks or any other instrument he the Treasurer is required by law to sign. The Commissioner of Banks and Banks, the bank examiners, and the Commissioner of Banks and the savings and loan examiners, when so required by the State Treasurer, shall keep the State Treasurer fully informed at all times as to the condition of all such these depository banks and savings and loan associations, so as to fully protect the State from loss. The State Treasurer shall, before making deposits in any bank or savings and loan association, require ample security from the bank or savings and loan association for such deposit.these deposits."

SECTION 12.(a)  G.S. 163‑278.39B is recodified as G.S. 163‑278.38Z under Part 1A of Article 22A of Chapter 163 of the General Statutes, so that the recodified section appears as the first section in Part 1A.

SECTION 12.(b)  G.S. 163‑278.6 reads as rewritten:

"§ 163‑278.6.  Definitions.

When used in this Article:

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(2)       The term "broadcasting station" means any commercial radio or television station or community antenna radio or television station. Special definitions of 'radio' and 'television' that apply only in Part 1A of this Article are set forth in G.S. 163‑278.38Z.

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(4)       The term "candidate" means any individual who, with respect to a public office listed in G.S. 163‑278.6(18), has filed a notice of candidacy or a petition requesting to be a candidate, or has been certified as a nominee of a political party for a vacancy, has otherwise qualified as a candidate in a manner authorized by law, or has received funds or made payments or has given the consent for anyone else to receive funds or transfer anything of value for the purpose of exploring or bringing about that individual's nomination or election to office. Transferring anything of value includes incurring an obligation to transfer anything of value. Status as a candidate for the purpose of this Article continues if the individual is receiving contributions to repay loans or cover a deficit or is making expenditures to satisfy obligations from an election already held. Special definitions of 'candidate' and 'candidate campaign committee' that apply only in Part 1A of this Article are set forth in G.S. 163‑278.38Z.

(5)       The term "communications media" or "media" means broadcasting stations, carrier current stations, newspapers, magazines, periodicals, outdoor advertising facilities, billboards, newspaper inserts, and any person or individual whose business is polling public opinion, analyzing or predicting voter behavior or voter preferences. Special definitions of 'print media,' 'radio,' and 'television' that apply only in Part 1A of this Article are set forth in G.S. 163‑278.38Z.

…

(14)     The term "political committee" means a combination of two or more individuals, such as any person, committee, association, organization, or other entity that makes, or accepts anything of value to make, contributions or expenditures and has one or more of the following characteristics:

a.         Is controlled by a candidate;

b.         Is a political party or executive committee of a political party or is controlled by a political party or executive committee of a political party;

c.         Is created by a corporation, business entity, insurance company, labor union, or professional association pursuant to G.S. 163‑278.19(b); or

d.         Has as a major purpose to support or oppose the nomination or election of one or more clearly identified candidates.

Supporting or opposing the election of clearly identified candidates includes supporting or opposing the candidates of a clearly identified political party.

An entity is rebuttably presumed to have as a major purpose to support or oppose the nomination or election of one or more clearly identified candidates if it contributes or expends or both contributes and expends during an election cycle more than three thousand dollars ($3,000). The presumption may be rebutted by showing that the contributions and expenditures giving rise to the presumption were not a major part of activities of the organization during the election cycle. Contributions to referendum committees and expenditures to support or oppose ballot issues shall not be facts considered to give rise to the presumption or otherwise be used in determining whether an entity is a political committee.

If the entity qualifies as a "political committee" under sub‑subdivision a., b., c., or d. of this subdivision, it continues to be a political committee if it receives contributions or makes expenditures or maintains assets or liabilities. A political committee ceases to exist when it winds up its operations, disposes of its assets, and files its final report.

Special definitions of 'political action committee' and 'candidate campaign committee' that apply only in Part 1A of this Article are set forth in G.S. 163‑278.38Z.

(15)     The term "political party" means any political party organized or operating in this State, whether or not that party is recognized under the provisions of G.S. 163‑96. A special definition of 'political party organization' that applies only in Part 1A of this Article is set forth in G.S. 163‑278.38Z.

…."

SECTION 13.(a)  Section 1 of S.L. 2001‑37 is repealed.

SECTION 13.(b)  S.L. 2001‑37 is amended by adding a new section to read:

"SECTION 1.1. G.S. 160A‑58.1(b)(5) does not apply to the Cities of Marion, Oxford, and Rockingham and the Towns of Calabash, Catawba, Dallas, Godwin, Louisburg, Mocksville, Pembroke, Rutherfordton, and Waynesville."

SECTION 13.(c)  G.S. 160A‑58.1(b)(5), as amended by S.L. 2004‑57 and S.L. 2004-99, reads as rewritten: 

"(5)      The area within the proposed satellite corporate limits, when added to the area within all other satellite corporate limits, may not exceed ten percent (10%) of the area within the primary corporate limits of the annexing city.

This subdivision does not apply to the Cities of Claremont, Concord, Conover, Gastonia, Hickory, Locust, Marion, Mount Airy, Mount Holly, New Bern, Newton, Oxford, Randleman, Rockingham, Sanford, Salisbury, Southport, Statesville, and Washington and the Towns of Angier, Bladenboro, Calabash, Catawba, Creswell, Dallas, Fuquay‑Varina, Garner, Godwin, Holly Ridge, Holly Springs, Kenly, Knightdale, Leland, Louisburg, Maiden, Mayodan, Midland, Mocksville, Morrisville, Pembroke, Pine Level, Ranlo, Rolesville, Rutherfordton, Swansboro, Troy, Wallace, Warsaw, Waynesville, Wendell, and Zebulon."

SECTION 13.(d)  G.S. 160A‑58.1(b1) is repealed.

PART II. OTHER CHANGES

SECTION 14.  G.S. 1‑44.2(b) reads as rewritten:

"(b)      Persons claiming ownership contrary to the presumption established in this section shall have a period of one year from the date of enactment of this statute or the abandonment of such easement, whichever later occurs, in which to bring any action to establish their ownership. The presumption established by this section is rebuttable by showing that a party has good and valid title to the land."

SECTION 15.(a)  G.S. 1‑47(1) reads as rewritten:

"§ 1‑47.  Ten years.

Within ten years an action –

(1)       Upon a judgment or decree of any court of the United States, or of any state or territory thereof, from the date of its rendition. entry. No such action may be brought more than once, or have the effect to continue the lien of the original judgment.

…."

SECTION 15.(b)  G.S. 1‑52(8) reads as rewritten:

"§ 1‑52.  Three years.

Within three years an action –

…

(8)       For fees due to a clerk, sheriff or other officer, by the judgment of a court; within three years from the rendition entry of the judgment, or the issuing of the last execution thereon.

…."

SECTION 16.  G.S. 7A‑16 reads as rewritten:

"§ 7A‑16.  Creation and organization.

The Court of Appeals is created effective January 1, 1967. It shall consist initially of six judges, elected by the qualified voters of the State for terms of eight years. The Chief Justice of the Supreme Court shall designate one of the judges as Chief Judge, to serve in such capacity at the pleasure of the Chief Justice. Before entering upon the duties of his office, a judge of the Court of Appeals shall take the oath of office prescribed for a judge of the General Court of Justice.

The Governor on or after July 1, 1967, shall make temporary appointments to the six initial judgeships. The appointees shall serve until January 1, 1969. Their successors shall be elected at the general election for members of the General Assembly in November, 1968, and shall take office on January 1, 1969, to serve for the remainder of the unexpired term which began on January 1, 1967.

Upon the appointment of at least five judges, and the designation of a Chief Judge, the court is authorized to convene, organize, and promulgate, subject to the approval of the Supreme Court, such supplementary rules as it deems necessary and appropriate for the discharge of the judicial business lawfully assigned to it.

Effective January 1, 1969, the number of judges is increased to nine, and the Governor, on or after March 1, 1969, shall make temporary appointments to the additional judgeships thus created. The appointees shall serve until January 1, 1971. Their successors shall be elected at the general election for members of the General Assembly in November, 1970, and shall take office on January 1, 1971, to serve for the remainder of the unexpired term which began on January 1, 1969.

Effective January 1, 1977, the number of judges is increased to 12; and the Governor, on or after July 1, 1977, shall make temporary appointments to the additional judgeships thus created. The appointees shall serve until January 1, 1979. Their successors shall be elected at the general election for members of the General Assembly in November, 1978, and shall take office on January 1, 1979, to serve the remainder of the unexpired term which began on January 1, 1977.

On or after December 15, 2000, the Governor shall appoint three additional judges to increase the number of judges to 15. Each judgeship shall not become effective until the temporary appointment is made, and each appointee shall serve from the date of qualification until January 1, 2005. Those judges' successors shall be elected in the 2004 general election and shall take office on January 1, 2005, to serve terms expiring December 31, 2012.

The Court of Appeals shall sit in panels of three judges each. The Chief Judge insofar as practicable shall assign the members to panels in such fashion that each member sits a substantially equal number of times with each other member. He shall preside over the panel of which he is a member, and shall designate the presiding judge of the other panel or panels.

Three judges shall constitute a quorum for the transaction of the business of the court, except as may be provided in § 7A‑32.G.S.  7A‑32.

In the event the Chief Judge is unable, on account of absence or temporary incapacity, to perform the duties placed upon him as Chief Judge, the Chief Justice shall appoint an acting Chief Judge from the other judges of the Court, to temporarily discharge the duties of Chief Judge."

SECTION 17.  G.S. 7B‑808(b) reads as rewritten:

"(b)      The director of the department of social services shall prepare the predisposition report for the court containing the results of any mental health evaluation of a juvenile under G.S. 7B‑503, a placement plan, and a treatment plan the director deems appropriate to meet the juvenile's needs."

SECTION 18.  The catch line of G.S. 8‑53.5 reads as rewritten:

"§ 8‑53.5.  Communications between licensed marital and family therapist and client(s)."

SECTION 19.(a)  G.S. 14‑202.4 reads as rewritten:

"§ 14‑202.4.  Taking indecent liberties with a student.

(a)       If a defendant, who is a teacher, school administrator, student teacher, school safety officer, or coach, at any age, or who is other school personnel and is at least four years older than the victim, takes indecent liberties with a victim who is a student, at any time during or after the time the defendant and victim were present together in the same school but before the victim ceases to be a student, the defendant is guilty of a Class I felony, unless the conduct is covered under some other provision of law providing for greater punishment. The term "same school" means a school at which the student is enrolled and the defendant is employed, assigned, or volunteers. A person is not guilty of taking indecent liberties with a student if the person is lawfully married to the student.

(b)       If a defendant, who is school personnel, other than a teacher, school administrator, student teacher, school safety officer, or coach, and who is less than four years older than the victim, takes indecent liberties with a student as provided in subsection (a) of this section, the defendant is guilty of a Class A1 misdemeanor.

(c)       Consent is not a defense to a charge under this section.

(d)       For purposes of this section, the following definitions apply:

(1)       "Indecent liberties" means:

a.         Willfully taking or attempting to take any immoral, improper, or indecent liberties with a student for the purpose of arousing or gratifying sexual desire; or

b.         Willfully committing or attempting to commit any lewd or lascivious act upon or with the body or any part or member of the body of a student.

For purposes of this section, the term indecent liberties does not include vaginal intercourse or a sexual act as defined by G.S. 14‑27.1.

(1a) "Same school" means a school at which (i) the student is enrolled or is present for a school‑sponsored or school‑related activity and (ii) the school personnel is employed, volunteers, or is present for a school‑sponsored or school‑related activity.

(2)       "School" means any public school, charter school, or nonpublic school under Parts 1 and 2 of Article 39 of Chapter 115C of the General Statutes.

(3)       "School personnel" means any person included in the definition contained in G.S. 115C‑332(a)(2), and any person who volunteers at a school or a school‑sponsored activity.

(3a)     "School safety officer" means any other person who is regularly present in a school for the purpose of promoting and maintaining safe and orderly schools and includes a school resource officer.

(4)       "Student" means a person enrolled in kindergarten, or in grade one through grade 12 in any school."

SECTION 19.(b)  This section becomes effective December 1, 2004, and applies to offenses committed on or after that date.

SECTION 20.(a)  G.S. 14‑298 reads as rewritten:

"§ 14‑298.  Gaming tables, illegal punchboards, slot machines, and prohibited video game machines to be destroyed by police officers.Seizure of illegal gaming items.

(a) All sheriffs and officers of police are hereby authorized and directed, on information made to them on oathAny law enforcement officer may seize that any gaming table prohibited to be used by G.S. 14‑289 through G.S. 14‑300, any illegal punchboard or illegal slot machine, or any video game machine prohibited to be used by G.S. 14‑306 or G.S. 14‑306.1, that is in the possession or use of any person within the limits of their jurisdiction,jurisdiction when probable cause exists as to the unlawful possession or use.to destroy the same by every means in their power; and they shall call to their aid all the good citizens of the county, if necessary, to effect its destruction.

(b) Any law enforcement agency in possession of an item seized pursuant to subsection (a) of this section shall retain the item pending a disposition order from a district or superior court judge.

(c) At the conclusion of any criminal proceeding regarding an item seized, upon application by the law enforcement agency, district attorney, or owner of the seized item, and after notice and opportunity to be heard by all parties, if the court finds that either of the following occurred or existed at the time the item was seized, the court shall enter an order releasing the item to the law enforcement agency to be destroyed or used for training purposes:

(1) The item was unlawfully possessed.

(2) The item was being unlawfully used with the knowledge of the owner of the item.

If the court does not find that either condition occurred or existed at the time the item was seized, the item shall be ordered released to its owner upon satisfactory proof of ownership."

SECTION 20.(b)  This section becomes effective October 1, 2004.  If Section 3 of Senate Bill 6, 2003 Regular Session, becomes law, this section is repealed.

SECTION 21.  G.S. 14‑401.5 is repealed.

SECTION 22.  G.S. 15‑190 reads as rewritten:

"§ 15‑190.  Person or persons to be designated by warden to execute sentence; supervision of execution; who shall be present.

Some guard or guards or other reliable person or persons to be named and designated by the warden from time to time shall cause the person, convict or felon against whom the death sentence has been so pronounced to be executed as provided by this Article and all amendments thereto. The execution shall be under the general supervision and control of the warden of the penitentiary, who shall from time to time, in writing, name and designate the guard or guards or other reliable person or persons who shall cause the person, convict or felon against whom the death sentence has been pronounced to be executed as provided by this Article and all amendments thereto. At such execution there shall be present the warden or deputy warden or some person designated by the warden in the warden's place, and the surgeon or physician of the penitentiary. Four respectable citizens, two members of the victim's family, the counsel and any relatives of such person, convict or felon and a minister or member of the clergy or religious leader of the person's choosing may be present if they so desire. The names of persons designated to carry out the execution shall be confidential and exempted under Chapter 132 of the General Statutes and are not subject to discovery or introduction as evidence in any proceeding. The Senior Resident Superior Court Judge for Wake County may compel disclosure of names made confidential by this section after making findings that support a conclusion that disclosure is necessary to a proper administration of justice."

SECTION 23.  G.S. 18B‑101(7a) reads as rewritten:

"§ 18B‑101.  Definitions.

As used in this Chapter, unless the context requires otherwise:

…

(7a)     "Historic ABC establishment" means a restaurant or hotel that meets all of the following requirements:

a.         Is on the national register of historic places.places or located within a State historic district.

b.         Is a property designed to attract local, State, national, and international tourists located on a State Route (SR) and with a property line located within 1.5 miles of the intersection of a designated North Carolina scenic byway as defined in G.S. 136‑18(31).

c.         Is located within 15 miles of a national scenic highway.

d.         Is located in a county in which the on‑premises sale of malt beverages or unfortified wine is authorized in two or more cities in the county.

…."

SECTION 24.  G.S. 18B‑600(f) reads as rewritten:

"(f)      Township Elections. – An election may be called on any of the propositions listed in G.S. 18B‑602 in any township located within:

(1)       A county where ABC stores have heretofore been established by petition pursuant to law.

(2)       A county where ABC stores have been established pursuant to law, in which county according to data from the North Carolina Department of Commerce: (i) one‑third or more of the employment is travel related, (ii) spending on travel exceeds four hundred million dollars ($400,000,000) per year, and where the entirety of two townships consists of one island (and several smaller islands not making up more than one percent (1%) of the total land area of the two townships) where that island:

a.         Has a population of 4,000 or over according to the most recent decennial federal census;

b.         Is located with one side facing the ocean and another side facing a coastal sound.

(3) A county where the population of all cities in the county that have previously approved the sale of any kind of alcoholic beverages comprises more than twenty percent (20%) of the total county population as of the most recent federal census.

An election may be called on any of the propositions listed in G.S. 18B‑602(a), (d), and (h) in any township located within a county where the population of all cities in the county that have previously approved the sale of any kind of alcoholic beverages comprises more than twenty percent (20%) of the total county population as of the most recent federal census. In the case of subdivision (2) of this section, an election may be called in the two townships voting together on the proposition contained in G.S. 18B‑602(h).

The election shall be held by the county board of elections upon request of the county board of commissioners or upon petition of twenty‑five percent (25%) of the registered voters of the township, or in the case of subdivision (2) of this section, of the two townships taken together. The election shall be conducted and the results determined in the same manner as county elections held under this Article. For purposes of this Article, townships holding any election under this subsection shall be treated on the same basis as counties, and municipalities located within those townships shall be treated on the same basis as cities. In the case of an election under subdivision (2) of this subsection, the votes of the two townships counted together shall determine the result of the election.

For purposes of this subsection, the name and boundary of a township is as it is shown on the Redistricting Census 2000 TIGER Files with modifications made by the Legislative Services Office on its computer database as of May 1, 2001.

In any township election held under this subsection, the area within any incorporated municipality is excluded, and no permits may be issued under this subsection in any excluded area.

In order for an establishment to qualify for a permit under this subsection, the establishment's gross receipts from food and nonalcoholic beverages shall be greater than its gross receipts from alcoholic beverages."

SECTION 25.(a)  G.S. 18B‑900(a) reads as rewritten:

"(a)      Requirements. – To be eligible to receive and to hold an ABC permit, a person shall:

…

(6)       Not have had an alcoholic beverage permit revoked within three years. years, except where the revocation was based solely on a permittee's failure to pay the annual registration and inspection fee required in G.S. 18B‑903(b1)."

SECTION 25.(b)  G.S. 18B‑903(b1) reads as rewritten:

"(b1)    Registration. – Each person holding a malt beverage, fortified wine, or unfortified wine permit issued pursuant to G.S. 18B‑902(d)(1) through G.S. 18B‑902(d)(6) shall register by May 1 of each year on a form provided by the Commission, in order to provide information needed by the State in enforcing this Chapter and to support the costs of that enforcement. The registration required by this subsection shall be accompanied by an annual registration and inspection fee of two hundred dollars ($200.00) for each permit held. The fee shall be paid by May 1 of each year. A registration fee shall not be refundable. Failure to pay the annual registration and inspection fee shall result in revocation of the permit."

SECTION 26.(a)  G.S. 18B‑1001.1(b) reads as rewritten:

"(b)      A wine shipper permittee that ships to addresses in the State more than 1,000 cases of wine in a calendar year must appoint at least one wholesaler to offer and sell the products of the wine shipper permittee under Article 12 of this Chapter if the wine shipper permittee is contacted by a wholesaler that wishes to sell the products of the wine shipper permittee. This provision shall not be construed to require the wine shipper permittee to appoint the wholesaler that originally contacted the wine shipper permittee. Wine purchased by a resident of the State at the premises of the wine shipper permittee and shipped to an address in the State under G.S. 18B‑109(b)18B‑109(d) shall not be included in calculating the total of 1,000 cases per year."

SECTION 26.(b)  This section is effective on or after October 1, 2003.

SECTION 27.  G.S. 18B‑1006(j)(4) is repealed.

SECTION 28.  G.S. 18B‑1006(m) reads as rewritten:

"(m)     Interstate Interchange Economic Development Zones. –

(1)       The Commission may issue permits listed in G.S. 18B‑1001(10), without approval at an election, to qualified establishments defined in G.S. 18B‑1000(4), (6), and (8) located within one mile of an interstate highway interchange located in a county that:

a.         Has approved the sale of malt beverages, unfortified wine, and fortified wine, but not mixed beverages;

b.         Operates ABC stores;

c.         Borders on another state; and

d.         Lies north and east of the Roanoke River.

(2)       The Commission may issue permits listed in G.S. 18B‑1001(1), (3), (5), and (10) to qualified establishments defined in G.S. 18B‑1000(4), (6), and (8) and may issue permits listed in G.S. 18B‑1001(2) and (4) to qualified establishments defined in G.S. 18B‑1000(3) in any county that qualifies for issuance of permits pursuant to G.S. 18B‑1006(k)(5). These permits may be issued without approval at an election and shall be issued only to qualified establishments that meet any of the following requirements:

a.         Located within one mile of any interstate highway interchange in that county.

b.         Located within one mile of an establishment issued a permit under G.S. 18B‑1006(k)(5).

(3) The Commission may issue permits listed in G.S. 18B‑1001(10), without approval at an election, to qualified establishments defined in G.S. 18B‑1000(4), (6), and (8) located within one mile of an interstate highway interchange located in a county that meets all of the following requirements:

a. Has approved the sale of malt beverages, unfortified wine, fortified wine, but not mixed beverages.

b. Contains one city that has approved the sale of malt beverages, unfortified wine, fortified wine, and mixed beverages.

c. Operates ABC stores.

d. Lies south and west of the Roanoke River and shares a common border with a county qualifying in subdivision (1) of this subsection.

This subsection shall also apply to an establishment in a county included in subdivision (3) of this subsection if the establishment is located within two miles of an interstate highway interchange that is within three miles of the common border described in sub‑ subdivision (3)d. of this subsection."

SECTION 29.  G.S. 18B‑1104(7) reads as rewritten:

"(7)      In areas where the sale is legal, sell the brewery's malt beverages at the brewery upon receiving a permit under G.S. 18B‑1001(1). The brewery also may obtain a malt beverage wholesaler permit to sell, deliver, and ship at wholesale only malt beverages manufactured by the brewery. The authorization of this subdivision applies to a brewery that sells, to consumers at the brewery, to wholesalers, to retailers, and to exporters, fewer than 310,000 gallons of malt beverages produced by it per year. A brewery not exceeding the sales quantity limitations in this subdivision may also sell the malt beverages manufactured by the brewery at not more than three other locations in the State upon obtaining the appropriate permits under G.S. 18B‑1001.  A brewery operating any additional retail location pursuant to this subdivision shall also offer for sale at that location a reasonable selection of competitive malt beverage products."

SECTION 30.  G.S. 30‑3.6(c) reads as rewritten:

"(c)      A written waiver that would have been effective to waive a spouse's right to dissent in estates of decedents dying on or before December 31, 2000, under Article 1 of Chapter 30 of the General Statutes is effective to waive that spouse's right of elective share under this Article for estates of decedent's decedents dying on or after January 1, 2001."

SECTION 31.(a)  G.S. 35A‑1213(b) reads as rewritten:

"(b)      An individual appointed as general guardian or guardian of the estate must be a resident of the State of North Carolina. A nonresident of the State of North Carolina, to be appointed as general guardian, guardian of the person person, or guardian of the estate of a North Carolina resident, must indicate in writing his willingness to submit to the jurisdiction of the North Carolina courts in matters relating to the guardianship and must appoint a resident agent to accept service of process for the guardian in all actions or proceedings with respect to the guardianship. Such appointment must be approved by and filed with the clerk, and any agent so appointed must notify the clerk of any change in the agent's address or legal residence. The clerk may shall require a nonresident guardian of the estate or a nonresident general guardian to post a bond or other security for the faithful performance of the guardian's duties. The clerk may require a nonresident guardian of the person to post a bond or other security for the faithful performance of the guardian's duties."

SECTION 31.(b)  G.S. 35A‑1290(c) reads as rewritten:

"(c)      It is the clerk's duty to remove a guardian guardian or to take other action sufficient to protect the ward's interests in the following cases:

(1)       The guardian has been adjudged incompetent by a court of competent jurisdiction and has not been restored to competence.

(2)       The guardian has been convicted of a felony under the laws of the United States or of any state or territory of the United States or of the District of Columbia and his citizenship has not been restored.

(3)       The guardian was originally unqualified for appointment and continues to be unqualified, or the guardian would no longer qualify for appointment as guardian due to a change in residence, a change in the charter of a corporate guardian, or any other reason.

(4)       The guardian is the ward's spouse and has lost his rights as provided by Chapter 31A of the General Statutes.

(5)       The guardian fails to post, renew, or increase a bond as required by law or by order of the court.

(6)       The guardian refuses or fails without justification to obey any citation, notice, or process served on him in regard to the guardianship.

(7)       The guardian fails to file required accountings with the clerk.

(8)       The clerk finds the guardian unsuitable to continue serving as guardian for any reason.

(9) The guardian is a nonresident of the State and refuses or fails to obey any citation, notice, or process served on the guardian or the guardian's process agent."

SECTION 31.(c)  G.S. 35A‑1291 reads as rewritten:

"§ 35A‑1291.  Interlocutory Emergency removal; interlocutory orders on revocation.

The clerk may remove a guardian without hearing if the clerk finds reasonable cause to believe that an emergency exists that threatens the physical well‑being of the ward or constitutes a risk of substantial injury to the ward's estate. In all cases where the letters of a guardian are revoked, the clerk may, pending the resolution of any controversy in respect to such removal, make such interlocutory orders and decrees as the clerk finds necessary for the protection of the ward or the ward's estate or the other party seeking relief by such revocation."

SECTION 32.(a)  G.S.40A‑3(b) reads as rewritten:

"(b)      Local Public Condemnors.Condemnors – Standard Provision. – For the public use or benefit, the governing body of each municipality or county shall possess the power of eminent domain and may acquire by purchase, gift or condemnation any property, either inside or outside its boundaries, for the following purposes.

(1)       Opening, widening, extending, or improving roads, streets, alleys, and sidewalks. The authority contained in this subsection is in addition to the authority to acquire rights‑of‑way for streets, sidewalks and highways under Article 9 of Chapter 136. The provisions of this subdivision (1) shall not apply to counties.

(2)       Establishing, extending, enlarging, or improving any of the public enterprises listed in G.S. 160A‑311 for cities, or G.S. 153A‑274 for counties.

(3)       Establishing, enlarging, or improving parks, playgrounds, and other recreational facilities.

(4)       Establishing, extending, enlarging, or improving storm sewer and drainage systems and works, or sewer and septic tank lines and systems.

(5)       Establishing, enlarging, or improving hospital facilities, cemeteries, or library facilities.

(6)       Constructing, enlarging, or improving city halls, fire stations, office buildings, courthouse jails and other buildings for use by any department, board, commission or agency.

(7)       Establishing drainage programs and programs to prevent obstructions to the natural flow of streams, creeks and natural water channels or improving drainage facilities. The authority contained in this subdivision is in addition to any authority contained in Chapter 156.

(8)       Acquiring designated historic properties, designated as such before October 1, 1989, or acquiring a designated landmark designated as such on or after October 1, 1989, for which an application has been made for a certificate of appropriateness for demolition, in pursuance of the purposes of G.S. 160A‑399.3, Chapter 160A, Article 19, Part 3B, effective until October 1, 1989, or G.S. 160A‑400.14, whichever is appropriate.

(9)       Opening, widening, extending, or improving public wharves.

The board of education of any municipality or county or a combined board may exercise the power of eminent domain under this Chapter for purposes authorized by other statutes.

The power of eminent domain shall be exercised by local public condemnors under the procedures of Article 3 of this Chapter."

SECTION 32.(b)  G.S. 40A‑3(b1) reads as rewritten:

"(b1)    Local Public Condemnors.Condemnors – Modified Provision for Certain Localities. – For the public use or benefit, the governing body of each municipality or county shall possess the power of eminent domain and may acquire by purchase, gift or condemnation any property or interest therein, either inside or outside its boundaries, for the following purposes.

(1)       Opening, widening, extending, or improving roads, streets, alleys, and sidewalks. The authority contained in this subsection is in addition to the authority to acquire rights‑of‑way for streets, sidewalks and highways under Article 9 of Chapter 136. The provisions of this subdivision (1) shall not apply to counties.

(2)       Establishing, extending, enlarging, or improving any of the public enterprises listed in G.S. 160A‑311 for cities, or G.S. 153A‑274 for counties.

(3)       Establishing, enlarging, or improving parks, playgrounds, and other recreational facilities.

(4)       Establishing, extending, enlarging, or improving storm sewer and drainage systems and works, or sewer and septic tank lines and systems.

(5)       Establishing, enlarging, or improving hospital facilities, cemeteries, or library facilities.

(6)       Constructing, enlarging, or improving city halls, fire stations, office buildings, courthouse jails and other buildings for use by any department, board, commission or agency.

(7)       Establishing drainage programs and programs to prevent obstructions to the natural flow of streams, creeks and natural water channels or improving drainage facilities. The authority contained in this subdivision is in addition to any authority contained in Chapter 156.

(8)       Acquiring designated historic properties, designated as such before October 1, 1989, or acquiring a designated landmark designated as such on or after October 1, 1989, for which an application has been made for a certificate of appropriateness for demolition, in pursuance of the purposes of G.S. 160A‑399.3, Chapter 160A, Article 19, Part 3B, effective until October 1, 1989, or G.S. 160A‑400.14, whichever is appropriate.

(9)       Opening, widening, extending, or improving public wharves.

(10)     Engaging in or participating with other governmental entities in acquiring, constructing, reconstructing, extending, or otherwise building or improving beach erosion control or flood and hurricane protection works, including, but not limited to, the acquisition of any property that may be required as a source for beach renourishment.

(11)     Establishing access for the public to public trust beaches and appurtenant parking areas.

The board of education of any municipality or county or a combined board may exercise the power of eminent domain under this Chapter for purposes authorized by other statutes.

The power of eminent domain shall be exercised by local public condemnors under the procedures of Article 3 of this chapter.

This subsection applies only to Carteret and Dare Counties, the Towns of Atlantic Beach, Carolina Beach, Caswell Beach, Emerald Isle, Holden Beach, Indian Beach, Kill Devil Hills, Kitty Hawk, Kure Beach, Nags Head, North Topsail Beach, Oak Island, Ocean Isle Beach, Pine Knoll Shores, Sunset Beach, Surf City, Topsail Beach, and Wrightsville Beach, and the Village of Bald Head Island."

SECTION 33.  G.S. 40A‑42(a) reads as rewritten:

"(a)      (1)       Standard Provision. – When a local public condemnor is acquiring property by condemnation for a purpose set out in G.S. 40A‑3(b)(1), (4) or (7), or when a city is acquiring property for a purpose set out in G.S. 160A‑311(1), (2), (3), (4), (6), or (7), or when a county is acquiring property for a purpose set out in G.S. 153A‑274(1), (2) or (3), or when a local board of education or any combination of local boards of education is acquiring property for any purpose set forth in G.S. 115C‑517, or when a condemnor is acquiring property by condemnation as authorized by G.S. 40A‑3(c)(8), (9), (10), (12), or (13), title to the property and the right to immediate possession shall vest pursuant to this subsection. Unless an action for injunctive relief has been initiated, title to the property specified in the complaint, together with the right to immediate possession thereof, shall vest in the condemnor upon the filing of the complaint and the making of the deposit in accordance with G.S. 40A‑41.

(2)       Modified Provision for Certain Localities. – When a local public condemnor is acquiring property by condemnation for a purpose set out in G.S. 40A‑3(b1)(1), (4), (7), (10), or (11), or when a city is acquiring property for a purpose set out in G.S. 160A‑311(1), (2), (3), (4), (6), or (7), or when a county is acquiring property for a purpose set out in G.S. 153A‑274(1), (2) or (3), or when a local board of education or any combination of local boards of education is acquiring property for any purpose set forth in G.S. 115C‑517, or when a condemnor is acquiring property by condemnation as authorized by G.S. 40A‑3(c)(8), (9), (10), (12), or (13), title to the property and the right to immediate possession shall vest pursuant to this subsection. Unless an action for injunctive relief has been initiated, title to the property specified in the complaint, together with the right to immediate possession thereof, shall vest in the condemnor upon the filing of the complaint and the making of the deposit in accordance with G.S. 40A‑41.

This subdivision applies only to Carteret and Dare Counties, the Towns of Atlantic Beach, Carolina Beach, Caswell Beach, Emerald Isle, Holden Beach, Indian Beach, Kill Devil Hills, Kitty Hawk, Kure Beach, Nags Head, North Topsail Beach, Oak Island, Ocean Isle Beach, Pine Knoll Shores, Sunset Beach, Surf City, Topsail Beach, and Wrightsville Beach, and the Village of Bald Head Island."

SECTION 34.(a)  G.S. 50B‑3.1(h) reads as rewritten:

"(h)      Disposal of Firearms. – If the defendant does not file a motion requesting the return of any firearms, ammunition, or permits surrendered within the time period prescribed by this section, if the court determines that the defendant is precluded from regaining possession of any firearms, ammunition, or permits surrendered, or if the defendant or third‑party owner fails to remit all fees owed for the storage of the firearms or ammunition within 30 days of the entry of the order granting the return of the firearms, ammunition, or permits, the sheriff who has control of the firearms, ammunition, or permits shall give notice to the defendant, and the sheriff shall apply to the court for an order of disposition of the firearms, ammunition, or permits. The judge, after a hearing, may order the disposition of the firearms, ammunition, or permits in one or more of the ways authorized by law, including subdivision (4), (4a), (5), or (6) of G.S. 14‑269.1. If a sale by the sheriff does occur, any proceeds from the sale after deducting any costs associated with the sale, and in accordance with all applicable State and federal law, shall be provided to the defendant, if requested by the defendant by motion made before the hearing or at the hearing and if ordered by the judge."

SECTION 34.(b)  This section becomes effective December 1, 2004, and applies to offenses committed on or after that date.

SECTION 35.(a)  G.S. 54B‑266(1) is repealed.

SECTION 35.(b)  G.S. 54C‑200(1) is repealed.

SECTION 36.  G.S. 58‑64‑33(a) reads as rewritten:

"(a)      A provider shall maintain after the opening of a facility: an operating reserve equal to fifty percent (50%) of the total operating costs of the facility forecasted for the 12‑month period following the period covered by the most recent disclosure statement filed with the Department. The forecast statements as required by G.S. 58‑64‑20(a)(12) shall serve as the basis for computing the operating reserve. In addition to total operating expenses, total operating costs will include debt service, consisting of principal and interest payments along with taxes and insurance on any mortgage loan or other long‑term financing, but will exclude depreciation, amortized expenses, and extraordinary items as approved by the Commissioner. If the debt service portion is accounted for by way of another reserve account, the debt service portion may be excluded. If a facility maintains an occupancy level in excess of ninety percent (90%), a provider shall only be required to maintain a twenty‑five percent (25%) operating reserve upon approval of the Commissioner, unless otherwise instructed by the Commissioner. The operating reserve must may be funded by cash, by cash equivalents, invested cash, or by investment grade securities, including bonds, stocks, U.S. Treasury obligations, or obligations of U.S. government agencies."

SECTION 37.(a)  G.S. 62‑3(23) reads as rewritten:

"(23)   a.         "Public utility" means a person, whether organized under the laws of this State or under the laws of any other state or country, now or hereafter owning or operating in this State equipment or facilities for:

…

i.          The term "public utility" shall not include the State, the Office of the State Controller, Information Technology Services, or the Microelectronics Center of North Carolina in the provision or sharing of switched broadband telecommunications services with non‑State entities or organizations of the kind or type set forth in G.S. 143B‑426.39.

…."

SECTION 37.(b)  G.S. 147‑33.92 reads as rewritten:

"§ 147‑33.92.  Telecommunications services for local governmental units entities and other entities.

(a)       The State Chief Information Officer shall provide cities, counties, and other local governmental units entities with access to a central telecommunications system or service established under G.S. 147‑33.91 for State agencies. Access shall be provided on the same cost basis that applies to State agencies.

(b)       The State Chief Information Officer shall establish switched broadband telecommunications services and permitpermit, in addition to State agencies, cities, counties, and other local government units, entities, the following organizations and entities to share on a not‑for‑profit basis:

(1)       Nonprofit educational institutions.

(2)       MCNC.

(3)       Research affiliates of MCNC for use only in connection with research activities sponsored or funded, in whole or in part, by MCNC, if such research activities relate to health care or education in North Carolina.

(4)       Agencies of the United States government operating in North Carolina for use only in connection with activities that relate to health care or education in North Carolina.

(5)       Hospitals, clinics, and other health care facilities for use only in connection with activities that relate to health care or education in North Carolina.

Provided, however, that sharing of the switched broadband telecommunications services by State agencies with entities or organizations in the categories set forth in this subsection shall not cause the State, the Office of Information Technology Services, or the MCNC to be classified as a public utility as that term is defined in G.S. 62‑3(23)a.6. Nor shall the State, the Office of Information Technology Services, or the MCNC engage in any activities that may cause those entities to be classified as a common carrier as that term is defined in the Communications Act of 1934, 47 U.S.C. § 153(h). 47 U.S.C. § 153(10). Provided further, authority to share the switched broadband telecommunications services with the non‑State agencies set forth in subdivisions (1) through (5) of this subsection shall terminate one year from the effective date of a tariff that makes the broadband services available to any customer."

SECTION 38.  Article 4 of Chapter 72 of the General Statutes is repealed.

SECTION 39.(a)  G.S. 95‑138 reads as rewritten:

"§ 95‑138.  Civil penalties.

(a) Any employer who willfully or repeatedly violates the requirements of this Article, any standard, rule or order promulgated pursuant to this Article, or regulations prescribed pursuant to this Article, may upon the recommendation of the Director to the Commissioner be assessed by the Commissioner a civil penalty of not more than seventy thousand dollars ($70,000) and not less than five thousand dollars ($5,000) for each willful violation. Any employer who has received a citation for a serious violation of the requirements of this Article or any standard, rule, or order promulgated under this Article or of any regulation prescribed pursuant to this Article, shall be assessed by the Commissioner a civil penalty of up to seven thousand dollars ($7,000) for each serious violation. If the violation is adjudged not to be of a serious nature, then the employer may be assessed a civil penalty of up to seven thousand dollars ($7,000) for each nonserious violation. Any employer who fails to correct a violation for which a citation has been issued under this Article within the period allowed for its correction (which period shall not begin to run until the date of the final order of the Board in the case of any appeal proceedings in this Article initiated by the employer in good faith and not solely for the delay or avoidance of penalties), may be assessed a civil penalty of not more than seven thousand dollars ($7,000). The assessment shall be made to apply to each day during which the failure or violation continues. Any employer who violates any of the posting requirements, as prescribed under the provision[s] of this Article, shall be assessed a civil penalty of not more than seven thousand dollars ($7,000) for the violation. The Commissioner upon recommendation of the Director, or the Board in case of an appeal, shall have authority to assess all civil penalties provided by this Article, giving due consideration to the appropriateness of the penalty with respect to the following factors:

(1) Size of the business of the employer being charged,

(2) The gravity of the violation,

(3) The good faith of the employer, and

(4) The record of previous violations; provided that for purposes of determining repeat violations, only the record within the previous three years is applicable.

The Commissioner shall adopt uniform standards which the Commissioner, the Board, and the hearing examiner shall apply when considering the four factors for determining appropriateness of the penalty. The report of the hearing examiner and the report, decision, or determination of the Board on appeal shall specify the standards applied in determining the reduction or affirmation of the penalty assessed by the Commissioner.

(b) The clear proceeds of all civil penalties and interest recovered by the Commissioner, together with the costs thereof, shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

(a) The Commissioner, upon recommendation of the Director, may assess penalties against any employer who violates the requirements of this Article, or any standard, rule, or order promulgated pursuant to this Article, as follows:

(1) A minimum penalty of five thousand dollars ($5,000) to a maximum penalty of seventy thousand dollars ($70,000) for each willful or repeat violation.

(2) A maximum penalty of seven thousand dollars ($7,000) for each nonserious or serious violation.

(3) A maximum penalty of seven thousand dollars ($7,000) for each day that an employer fails to correct and abate a violation, within the period allowed for its correction and abatement, which period shall not begin to run until the date of the final Order of the Board in the case of any appeal proceedings in this Article initiated by the employer in good faith and not solely for the delay of avoidance of penalties.

(4) A maximum penalty of seven thousand dollars ($7,000) for violating the posting requirements, as required under the provisions of this Article.

(b) The Commissioner shall adopt uniform standards that the Commissioner, the Board, and the hearing examiner shall apply when determining appropriateness of the penalty. The following factors shall be used in determining whether a penalty is appropriate:

(1) Size of the business of the employer being charged.

(2) The gravity of the violation.

(3) The good faith of the employer.

(4) The record of previous violations; provided that for purposes of determining repeat violations, only the record within the previous three years is applicable.

The report of the hearing examiner and the report, decision, or determination of the Board on appeal shall specify the standards applied in determining the reduction or affirmation of the penalty assessed by the Commissioner.

(c) The clear proceeds of all civil penalties and interest recovered by the Commissioner, together with the costs thereof, shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2."

SECTION 39.(b)  This section is effective October 1, 2004, and applies to violations occurring on or after that date.

SECTION 40.  G.S. 105‑129.6(b) reads as rewritten:

"(b)      Reports. – The Department of Revenue shall publish by March 1April 1 of each year the following information itemized by credit and by taxpayer for the 12‑month period ending the preceding December 31:

…."

SECTION 41.  G.S. 108A‑25 is amended by adding a new subsection to read:

"(d) Each Community Care network organization designated by the Department of Health and Human Services as responsible for coordinating the health care of individuals eligible for medical assistance in a county is hereby deemed to be a public agency that is a local unit of government for the sole and limited purpose of all grants‑in‑aid, public assistance grant programs, and other funding programs."

SECTION 42.  G.S. 110‑139.2(b1) reads as rewritten:

"(b1)    The Department of Health and Human Services Child Support Enforcement Agency may notify any financial institution doing business in this State that an obligor who maintains an identified account with the financial institution has a delinquent child support obligation that may be eligible for levy on the account in an amount that satisfies some or all of the delinquency. In order to be able to attach a lien on and levy an obligor's account, the obligor's child support obligation shall be in arrears in an amount not less than the amount of support owed for six months or one thousand dollars ($1,000), whichever is less.

Upon certification of the arrears amount in accordance with G.S. 44‑86(c), the Child Support Agency shall serve or cause to be served upon the obligor and the financial institution a notice as provided by this subsection. The notice shall be served in any manner provided in Rule 4 of the North Carolina Rules of Civil Procedure and Procedure, except that a notice may be served on a financial institution in any other manner that the financial institution has agreed to in writing at any time prior to the time the notice is sent. The notice shall include the name of the obligor, the financial institution where the account is located, the account number of the account to be levied to satisfy the lien, the certified arrears amount, information for the obligor on how to remove the lien or contest the lien in order to avoid the levy, and a copy of the applicable law, G.S. 110‑139.2. Upon service of the notice, the financial institution shall proceed in the following manner:

(1)       Immediately attach a lien to the identified account.

(2)       Notify the Child Support Agency of the balance of the account and date of the lien or that the account does not meet the requirement for levy under this subsection.

In order for an obligor to contest the lien, within 10 days after the obligor is served with the notice, the obligor shall send written notice of the basis of the obligor's contest to the Child Support Agency and shall request a hearing before the district court in the county where the support order was entered. The lien may be contested only on the basis that the arrearage is an amount less than the amount of support owed for six months, or is less than one thousand dollars ($1,000), or the obligor is not the person subject to the court order of support. The district court may assess court costs against the nonprevailing party. If no response is received from the obligor within 10 days of the service of the notice, the Child Support Agency shall notify the financial institution to submit payment, up to the total amount of the child support arrears, if available. This amount is to be applied to the debt of the delinquent obligor.

A financial institution shall not be liable to any person for complying in good faith with this subsection.

This levy procedure is to be available for direct use by all states' child support programs to financial institutions in this State."

SECTION 43.  G.S. 113A‑115.1(b) reads as rewritten:

"(b)      No person shall construct a permanent erosion control structure in an ocean shoreline. The Commission shall not permit the construction of a temporary erosion control structure that consists of anything other than sandbags in an ocean shoreline. This section shall not apply to (i) any permanent erosion control structure that is approved pursuant to an exception set out in a rule adopted by the Commission prior to 1 July 2003 or (ii) any permanent erosion control structure that was originally constructed prior to 1 July 1974 and that has since been in continuous use to protect an inlet that is maintained for navigation. This section shall not be construed to limit the authority of the Commission to adopt rules to designate or protect areas of environmental concern, to govern the use of sandbags, or to govern the use of erosion coastal control structures in estuarine shorelines."

SECTION 44.  G.S. 115C‑84.2(d) reads as rewritten:

"(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. 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. Different opening and closing dates may be fixed for schools in the same administrative unit.

Local boards and individual schools shall give teachers at least 14 calendar days' notice before requiring a teacher to work instead of taking vacation leave on days scheduled in accordance with subdivision (4) or (5) of this subsection. A teacher may elect to waive this notice requirement for one or more such days."

SECTION 45.(a)  G.S. 115C‑238.29D(d) reads as rewritten:

"(d)      The State Board of Education may grant the initial charter for a period not to exceed five 10 years and may renew the charter upon the request of the chartering entity for subsequent periods not to exceed five 10 years each. The State Board of Education shall review the operations of each charter school at least once every five years to ensure that the school is meeting the expected academic, financial, and governance standards.

A material revision of the provisions of a charter application shall be made only upon the approval of the State Board of Education.

It shall not be considered a material revision of a charter application and shall not require the prior approval of the State Board for a charter school to increase its enrollment during the charter school's second year of operation and annually thereafter (i) by up to ten percent (10%) of the school's previous year's enrollment or (ii) in accordance with planned growth as authorized in the charter. Other enrollment growth shall be considered a material revision of the charter application, and the State Board may approve such additional enrollment growth of greater than ten percent (10%) only if the State Board finds that:

(1)       The actual enrollment of the charter school is within ten percent (10%) of its maximum authorized enrollment;

(2)       The charter school has commitments for ninety percent (90%) of the requested maximum growth;

(3)       The board of education of the local school administrative unit in which the charter school is located has had an opportunity to be heard by the State Board of Education on any adverse impact the proposed growth would have on the unit's ability to provide a sound basic education to its students;

(4)       The charter school is not currently identified as low‑performing;

(5)       The charter school meets generally accepted standards of fiscal management; and

(6)       It is otherwise appropriate to approve the enrollment growth."

SECTION 45.(b) G.S. 115C‑238.29F(e)(1) reads as rewritten:

"(1)      An employee of a charter school is not an employee of the local school administrative unit in which the charter school is located. The charter school's board of directors shall employ and contract with necessary teachers to perform the particular service for which they are employed in the school; at least seventy‑five percent (75%) of these teachers in grades kindergarten through five, at least fifty percent (50%) of these teachers in grades six through eight, and at least fifty percent (50%) of these teachers in grades nine through 12 shall hold teacher certificates. All teachers in grades six through 12 who are teaching in the core subject areas of mathematics, science, social studies, and language arts shall be college graduates.

The board also may employ necessary employees who are not required to hold teacher certificates to perform duties other than teaching and may contract for other services. The board may discharge teachers and noncertificated employees."

SECTION 45.(c)  This section is effective when it becomes law.  Subsection (a) of this section applies to charters granted or renewed on or after that date.  Subsection (b) of this section applies to persons employed by charter schools for the 2004‑2005 and subsequent school years.

SECTION 46.  Part 3 of Article 1 of Chapter 116 of the General Statutes is amended by adding the following new section to read:

"§ 116‑40.7.  Internal auditors.

(a) Internal auditors within The University of North Carolina and its constituent institutions shall provide independent reviews and analyses of various functions and programs within The University of North Carolina that will provide management information to promote accountability, integrity, and efficiency within The University of North Carolina.

(b) An internal auditor shall have access to any records, data, or other information of The University of North Carolina or the relevant constituent institution that the internal auditor believes necessary to carry out the internal auditor's duties.

(c) An internal auditor shall maintain, for 10 years, a complete file of all audit reports and reports of other examinations, investigations, surveys, and reviews issued under the internal auditor's authority. Audit work papers and other evidence and related supportive material directly pertaining to the work of that auditor's office shall be retained in accordance with Chapter 132 of the General Statutes. To promote cooperation and avoid unnecessary duplication of audit effort, audit work papers related to issued audit reports shall be, unless otherwise prohibited by law, made available for inspection by duly authorized representatives of the State and federal governments in connection with some matter officially before them. Except as otherwise provided in this subsection, or upon subpoena issued by a duly authorized court or court official, audit work papers shall be kept confidential and shall not be open to examination or inspection under G.S. 132‑6. Audit reports shall be public records to the extent that they do not include information that, under State laws, is confidential and exempt from Chapter 132 of the General Statutes or would compromise the security systems of The University of North Carolina."

SECTION 47.  G.S. 116‑238.1 is amended by adding a new subsection to read:

"(f) Notwithstanding any other provision of this section, no tuition grant awarded to a student under this section shall exceed the cost of tuition of the constituent institution at which the student is enrolled. If a student, who is eligible for a tuition grant under this subsection, also receives a scholarship or other grant covering the cost of tuition at the constituent institution for which the tuition grant is awarded, then the amount of the tuition grant shall be reduced by an appropriate amount determined by the State Education Assistance Authority. The State Education Assistance Authority shall reduce the amount of the tuition grant so that the sum of all grants and scholarship aid covering the cost of tuition received by the student, including the tuition grant under this section, shall not exceed the cost of tuition for the constituent institution at which the student is enrolled."

SECTION 48.  G.S. 116‑243 reads as rewritten:

"§ 116‑243.  Board of directors established; appointments.

A board of directors to govern the operation of the Arboretum is established, to be appointed as follows:

(1)       Two by the Governor, initially, one for a two‑year term, and one for a four‑year term. Successors shall be appointed for four‑year terms;terms.

(2)       Two by the General Assembly, in accordance with G.S. 120‑121, upon the recommendation of the President Pro Tempore of the Senate, initially, one for a two‑year term, and one for a four‑year term. Successors shall be appointed for four‑year terms;terms.

(3)       Two by the General Assembly, in accordance with G.S. 120‑121, upon the recommendation of the Speaker of the House of Representatives, initially, one for a two‑year term, and one for a four‑year term. Successors shall be appointed for four‑year terms;terms.

(4)       The President of The University of North Carolina or his the President's designee to serve ex officio;officio.

(5)       The chancellors, chief executive officers, or their designees of the following institutions of higher education: North Carolina State University, Western Carolina University, The University of North Carolina at Asheville, Mars Hill College, and Warren Wilson College, to serve ex officio;officio.

(6)       The President of Western North Carolina Arboretum, Inc., to serve ex officio;officio.

(7)       Six by the Board of Governors of The University of North Carolina, initially, three for one‑year terms, and three for three‑year terms. Successors shall be appointed for four‑year terms. One shall be an active grower of nursery stock, and one other shall represent the State's garden clubs;clubs.

(8)       The executive director of the Arboretum and the Executive Vice President of Western North Carolina Development Association shall serve ex officio as nonvoting members of the board of directors.

All appointed members may serve two full four‑year terms following the initial appointment and then may not be reappointed until they have been absent for at least one year. Members serve until their successors have been appointed. Appointees to fill vacancies serve for the remainder of the unexpired term. Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120‑122. Initial terms begin July 1, 1986.

The chairman of the board of directors shall be elected biennially by majority vote of the directors.

The executive director of the Arboretum shall report to the board of directors."

SECTION 49.(a)  The title of Article 6 of Chapter 120 of the General Statutes reads as rewritten:

"Article 6.

Acts and Journals.Acts, Journals, and Reports to the General Assembly."

SECTION 49.(b)  Article 6 of Chapter 120 of the General Statutes is amended by adding the following new section to read:

"§ 120‑29.5.  State agency reports to the General Assembly.

Whenever a report is directed by law or resolution to be made to the General Assembly, the State agency preparing the report shall deliver one copy of the report to each of the following officers: the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the House Principal Clerk, and the Senate Principal Clerk; and two copies of the report to the Legislative Library. The State agency is encouraged to inform members of the General Assembly that an electronic copy is available. This section does not affect any responsibilities for depositing documents with the State Library or the State Publications Clearinghouse under Chapter 125 of the General Statutes."

SECTION 49.(c)  This section becomes effective October 1, 2004.

SECTION 50.(a)  G.S. 120‑47.2(d) reads as rewritten:

"(d)      Within 20 days after the convening of each session of the General Assembly, the Secretary of State shall furnish each member of the General Assembly and the State Legislative Library a list of all persons who have registered as lobbyists and whom they represent. A supplemental list shall be furnished periodically each 20 days thereafter as the session progresses."

SECTION 50.(b)  G.S. 147‑16.2 reads as rewritten:

"§ 147‑16.2.  Duration of boards and councils created by executive officials; extensions.

(a)       Any executive order of the Governor that creates a board, committee, council, or commission expires two years after the effective date of the executive order, unless the Governor specifies an expiration date in the order; provided, however, that any such executive order that was in effect on July 1, 1983, expires on June 30, 1985, unless the Governor specified a different expiration date in any such order. The Governor may extend any such executive order before it expires for additional periods of up to two years by doing so in writing; copies of the writing shall be filed by the Governor with the Secretary of State and the State Legislative Library.

(b)       Any other State board, committee, council, or commission created by the Governor or by any other State elective officer specified in Article III of the North Carolina Constitution expires two years after it was created; provided, however, that any such board, committee, council, or commission existing as of July 1, 1984, expires on June 30, 1985, unless it was due to expire on an earlier date. The elective officer creating any such board, committee, council, or commission may extend the board, committee, council, or commission before it expires for additional periods of up to two years by doing so in writing; copies of the writing shall be filed by the elective officer with the Secretary of State and the State Legislative Library.

(c)       Any State board, committee, council, or commission created by any official in the executive branch of State government, other than by those officials specified in subsections (a) and (b), (b) of this section, expires two years after it was created; provided, however, that any board, committee, council, or commission existing as of July 1, 1984, expires on June 30, 1985, unless it was due to expire on an earlier date. The Governor may extend any such board, committee, council, or commission before it expires for additional periods of up to two years by executive order; copies of the executive order shall be filed by the Governor with the Secretary of State and the State Legislative Library.

The words, "official in the executive branch of State government," as used in this section, do not include officials of counties, cities, towns, villages, other municipal corporations or political subdivisions of the State or any agencies of such subdivision, or local boards of education, other local public districts, units or bodies of any kind, or community colleges as defined in G.S. 115D‑ 2(2), or private corporations created by act of the General Assembly.

(d)       Any elective officer specified in subsection (b) of this section and any other official in the executive branch of State government who creates a board, committee, council, or commission shall do so in writing and shall file copies of the writing with the Secretary of State and the State Legislative Library."

SECTION 51.  G.S. 121‑4(16) is repealed.

SECTION 52.(a)  G.S. 131E‑256 is amended by adding the following subsection to read:

"(a1) The Department shall include in the registry a brief statement of any individual disputing the finding entered against the individual in the health care personnel registry pursuant to subdivision (1) of subsection (a) of this section."

SECTION 52.(b)  G.S. 131E‑256(e) reads as rewritten:

"(e)      The Department shall provide an employer or potential employer of any person listed on the Health Care Personnel Registry of information concerning the nature of the finding or allegation and the status of the investigation."

SECTION 52.(c)  G.S. 131E‑256 is amended by adding the following subsection to read:

"(i) In the case of a finding of neglect under subdivision (1) of subsection (a) of this section, the Department shall establish a procedure to permit health care personnel to petition the Department to have his or her name removed from the registry upon a determination that:

(1) The employment and personal history of the nurse aid does not reflect a pattern of abusive behavior or neglect;

(2) The neglect involved in the original finding was a singular occurrence; and

(3) The petition for removal is submitted after the expiration of the one‑year period which began on the date the petitioner's name was added to the registry under subdivision (1) of subsection (a) of this section."

SECTION 53.(a)  G.S. 148‑22.2 reads as rewritten:

"§ 148‑22.2.  Procedure when surgical operations on inmates are necessary.

The medical staff of any penal institution of the State of North Carolina is hereby authorized to perform or cause to be performed by competent and skillful surgeons surgical operations upon any inmate when such operation is necessary for the improvement of the physical condition of the inmate. The decision to perform an operation shall be made by the chief medical officer of the institution, with the approval of the superintendent of the institution, and with the advice of the medical staff of  the institution. No operation shall be performed without the consent of the inmate; or, if the inmate is a minor, without the consent of a responsible member of the inmate's family, a guardian, or one having legal custody of the minor; or, if the inmate be non compos mentis, then the consent of a responsible member of the inmate's family or of a guardian shall be obtained. Any surgical operations on inmates of State penal institutions shall also be subject to the provisions of Article 1A of Chapter 90 of the General Statutes and Statutes, G.S. 90‑21.13G.S. 90‑21.13, and G.S. 90‑21.14.G.S.  90‑21.16.

If the operation on the inmate is determined by the chief medical officer to be an emergency situation in which immediate action is necessary to preserve the life or health of the inmate, and the inmate, if sui juris, is unconscious or otherwise incapacitated so as to be incapable of giving consent or in the case of a minor or inmate non compos mentis, the consent of a responsible member of the inmate's family, guardian, or one having legal custody of the inmate cannot be obtained within the time necessitated by the nature of the emergency situation, then the decision to proceed with the operation shall be made by the chief medical officer and the superintendent of the institution with the advice of the medical staff of the institution.

In all cases falling under this Article, section, the chief medical officer of the institution and the medical staff of the institution shall keep a careful and complete record of the measures taken to obtain the permission for the operation and a complete medical record signed by the medical superintendent or director, the surgeon performing the operation and all surgical consultants of the operation performed."

SECTION 53.(b)  G.S. 148‑46.2 reads as rewritten:

"§ 148‑46.2.  Procedure when consent is refused by prisoner.

When the Secretary of Correction finds as a fact that the injury to any prisoner was willfully and intentionally self‑inflicted and that an operation or treatment is necessary for the preservation or restoration of the health of the prisoner and that the prisoner is competent to act for himself or herself; and that attempts have been made to obtain consent for the proposed operation or treatment but such consent was refused, and the findings have been reduced to writing and entered into the prisoner's records as a permanent part thereof, then the chief medical officer of the prison hospital or prison institution shall be authorized to give or withhold, on behalf of the prisoner, consent to the operation or treatment.

In all cases coming under the provisions of this Article, section, the medical staff of the hospital or institution shall keep a careful and complete medical record of the treatment and surgical procedures undertaken. The record shall be signed by the chief medical officer of the hospital or institution and the surgeon performing any surgery. Any treatment of self‑inflicted injuries shall also be subject to the provisions of G.S. 90‑21.13 and 90‑21.14.G.S.  90‑21.16."

SECTION 54.  G.S. 148‑32.1(a) reads as rewritten:

"(a)      The Department of Correction shall pay each local confinement facility a standard sum set by the General Assembly in its appropriation acts at a per day, per inmate rate, for the cost of providing food, clothing, personal items, supervision and necessary ordinary medical services to those inmates committed to the custody of the local confinement facility to serve criminal sentences of 30 days or more. This reimbursement shall not include any period of detention prior to actual commitment by the sentencing court. The Department shall also pay to the local confinement facility extraordinary medical expenses incurred for the inmates, defined as follows:

(1)       Medical expenses incurred as a result of providing health care to an inmate as an inpatient (hospitalized);

(2)       Other medical expenses when the total cost exceeds thirty‑five dollars ($35.00) per occurrence or illness as a result of providing health care to an inmate as an outpatient (nonhospitalized); and

(3)       Cost of replacement of eyeglasses and dental prosthetic devices if those eyeglasses or devices are broken while the inmate is incarcerated, provided the inmate was using the eyeglasses or devices at the time of his commitment and then only if prior written consent of the Department is obtained by the local facility.

In order to obtain reimbursement for any of the expenses authorized by this section, a local confinement facility shall submit an invoice to the Department within one year of the date of commitment by the sentencing court."

SECTION 55.  G.S. 160A‑176.2 reads as rewritten:

"§ 160A‑176.2.  Ordinances effective in Atlantic Ocean.

(a)       A city may adopt ordinances to regulate and control swimming, personal watercraft operation, surfing and littering in the Atlantic Ocean and other waterways adjacent to that portion of the city within its boundaries or within its extraterritorial jurisdiction; provided, however, nothing contained herein shall be construed to permit any city to prohibit altogether swimming or surfing or to make these activities unlawful.

(b)       Subsection (a) of this section applies to the Towns of Atlantic Beach, Calabash, Cape Carteret, Carolina Beach, Caswell Beach, Duck, Emerald Isle, Holden Beach, Kill Devil Hills, Kitty Hawk, Manteo, Nags Head, Oak Island, Ocean Isle Beach, Southern Shores, Sunset Beach, Topsail Beach, and Wrightsville Beach, and the City of Southport only."

SECTION 56.  G.S. 160A‑635(a) reads as rewritten:

"§ 160A‑635.  Membership; officers; compensation.

(a)       The governing body of an authority is the Board of Trustees. The Board of Trustees shall consist of:

(1)       The mayor of the four cities within the service area that have the largest population, or a member of the city council designated by the city council to serve in the absence of the mayor.

(2)       Two members of the Board of Transportation appointed by the Secretary of Transportation, to serve as ex officio nonvoting members.

(3)       The chair of each Metropolitan Planning Organization in the territorial jurisdiction. The chair of the Metropolitan Planning Organization may appoint the Chair of the Transportation Advisory Committee, or a designee approved by the Transportation Advisory Committee, as his or her designee.

(4)       The chair of the board of commissioners of any county within the territorial jurisdiction or a member of the board of commissioners designated by the board to serve in the absence of the chair, but only if the Board of Trustees by resolution has expanded the Board of Trustees to include the chair of the board of commissioners of that county and the board of commissioners of that county has consented by resolution.

(5)       The chair of the principal airport authority or airport commission of each of the two most populous counties within the territorial jurisdiction, as determined by the most recent decennial federal census. The chair of the airport authority or airport commission may appoint a designee. The designee is not required to be a member of the airport authority or airport commission."

SECTION 57.  G.S. 163‑34 reads as rewritten:

"§ 163‑34.  Power of county board of elections to maintain order.

Each county board of elections shall possess full power to maintain order, and to enforce obedience to its lawful commands during its sessions, and shall be constituted an inferior court for that purpose. If any person shall refuse to obey the lawful commands of any county board of elections, or by disorderly conduct in its hearing or presence shall interrupt or disturb its proceedings, it may, by an order in writing, signed by its chairman, and attested by its secretary, commit the person so offending to the common jail of the county for a period not exceeding 30 days. Such order shall be executed by any sheriff or constable to whom the same shall be delivered, or if a sheriff or constable shall not be present, or shall refuse to act, by any other person who shall be deputed by the county board of elections in writing, and the keeper of the jail shall receive the person so committed and safely keep him for such time as shall be mentioned in the commitment: Provided, that any person committed under the provisions of this section shall have the right to post a two hundred dollar ($200.00) bond with the clerk of the superior court and appeal to the superior court for a trial on the merits of his commitment."

SECTION 58.  G.S. 163‑35(b) reads as rewritten:

"(b)      Appointment, Duties; Termination. – Upon receipt of a nomination from the county board of elections stating that the nominee for director of elections is submitted for appointment upon majority selection by the county board of elections the Executive Director shall issue a letter of appointment of such nominee to the chairman of the county board of elections within 10 days after receipt of the nomination. Thereafter, the county board of elections shall enter in its official minutes the specified duties, responsibilities and designated authority assigned to the director by the county board of elections. A copy of the specified duties, responsibilities and designated authority assigned to the director shall be filed with the State Board of Elections.

The county board of elections may, by petition signed by a majority of the board, recommend to the Executive Director of the State Board of Elections the termination of the employment of the county board's director of elections. The petition shall clearly state the reasons for termination. Upon receipt of the petition, the Executive Director shall forward a copy of the petition by certified mail, return receipt requested, to the county director of elections involved. The county director of elections may reply to the petition within 15 days of receipt thereof. Within 20 days of receipt of the county director of elections' reply or the expiration of the time period allowed for the filing of the reply, the State Executive Director shall render a decision as to the termination or retention of the county director of elections. The decision of the Executive Director of the State Board of Elections shall be final unless the decision is, within 20 days from the official date on which it was made, deferred by the State Board of Elections. If the State Board defers the decision, then the State Board shall make a final decision on the termination after giving the county director of elections an opportunity to be heard and to present witnesses and information to the State Board, and then notify the Executive Director of its decision in writing. Any one or more members of the State Board designated by the remaining members of the State Board may conduct the hearing and make a final determination on the termination. For the purposes of this subsection, the member(s) designated by the remaining members of the State Board shall possess the same authority conferred upon the chairman pursuant to G.S. 163‑23. If the decision, rendered by the State Board of Elections, after the hearing, results in concurrence with the decision entered by the Executive Director, the decision becomes final. If the decision rendered by the Board after the hearing is contrary to that entered by the Executive Director, then the Executive Director shall, within 15 days from the written notification, enter an amended decision consistent with the results of the decision by the State Board of Elections. Elections or its designated member(s).

Upon majority vote on the recommendation of the Executive Director, the State Board of Elections may initiate proceedings for the termination of a county director of elections for just cause. If the State Board votes to initiate proceedings for termination, the State Board shall state the reasons for the termination in writing and send a copy by certified mail, return receipt requested, to the county director of elections. The director has 15 days to reply in writing to the notice. The State Board of Elections shall also notify the chair of the county board of elections and the chair of the county board of commissioners that the State Board has initiated termination proceedings. The State Board shall make a final decision on the termination after giving the county director of elections an opportunity to be heard, present witnesses, and provide information to the State Board. The State Board of Elections shall notify the chair of the county board of elections and the chair of the county board of commissioners that the State Board has initiated termination proceedings. Any one or more members of the State Board designated by the remaining members of the State Board may conduct the hearing and make a final decision. For the purposes of this subsection, the member(s) designated by the remaining members of the State Board shall possess the same authority conferred upon the chairman pursuant to G.S. 163‑23.

A county director of elections may be suspended, with pay, without warning for causes relating to personal conduct detrimental to service to the county or to the State Board of Elections, pending the giving of written reasons, in order to avoid the undue disruption of work or to protect the safety of persons or property or for other serious reasons. Any suspension may be initiated by the Executive Director but may not be for more than five days. Upon placing a county director of elections on suspension, the Executive Director shall, as soon as possible, reduce to writing the reasons for the suspension and forward copies to the county director of elections, the members of the county board of elections, the chair of the county board of commissioners, and the State Board of Elections. If no action for termination has been taken within five days, the county director of elections shall be fully reinstated.

Termination of any county director of elections shall comply with this subsection. For the purposes of this subsection, the individual designated by the remaining four members of the State Board shall possess the same authority conferred upon the chairman pursuant to G.S. 163‑23."

SECTION 59.(a)  G.S. 163‑278.7(b)(7) reads as rewritten:

"(b)      Each appointed treasurer shall file with the Board at the time required by G.S. 163‑278.9(a)(1) a statement of organization that includes:

…

(7)       A listing of all banks, safety deposit boxes, or other depositories used, including the names and numbers of all accounts maintained and the numbers of all such safety deposit boxes used, provided that the Board shall keep any account number included in any report filed after March 1, 2003, and required by this Article confidential except as necessary to conduct an audit or investigation, except as required by a court of competent jurisdiction, or unless confidentiality is waived by the treasurer. Disclosure of an account number in violation of this subdivision shall not give rise to a civil cause of action. This limitation of liability does not apply to the disclosure of account numbers in violation of this subdivision as a result of gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable.

…."

SECTION 59.(b)  This section is effective on and after January 1, 2003.

SECTION 60.  G.S. 163‑278.64(d)(5) reads as rewritten:

"(5)      A candidate and the candidate's committee shall limit the use of all revenues permitted by this subsection to expenditures for campaign‑related purposes only. The Board shall publish guidelines outlining permissible campaign‑related expenditures. In establishing those guidelines, the Board shall differentiate expenditures that reasonably further a candidate's campaign from expenditures for personal use that would be incurred in the absence of the candidacy. In establishing the guidelines, the Board shall review relevant provisions of G.S. 163‑278.42(e), the Federal Election Campaign Act, and rules adopted pursuant to it, and similar provisions in other states."

SECTION 61.  G.S. 168‑2 reads as rewritten:

"§ 168‑2.  Right of access to and use of public places.

Handicapped persons have the same right as the able‑bodied to the full and free use of the streets, highways, sidewalks, walkways, public buildings, public facilities, and all other buildings and facilities, both publicly and privately owned, which serve the public. The Department of Health and Human Services shall develop, print, and promote the publication ACCESS NORTH CAROLINA. It shall make copies of the publication available to the Department of Commerce for its use in Welcome Centers and other appropriate Department of Commerce offices. The Department of Economic and Community Development Commerce shall promote ACCESS NORTH CAROLINA in its publications (including providing a toll‑free telephone line and an address for requesting copies of the publication) and provide technical assistance to the Department of Health and Human Services on travel attractions to be included in ACCESS NORTH CAROLINA. The Department of Commerce shall forward all requests for mailing ACCESS NORTH CAROLINA to the Department of Health and Human Services."

SECTION 62.(a)  G.S. 168‑4.2 reads as rewritten:

"§ 168‑4.2.  May be accompanied by assistance dog.service animal.

Every mobility impaired person, as defined in this section, visually impaired person, as broadly defined to include visual disability, or hearing impaired person, as defined in G.S. 8B‑1(2), or person with a seizure disorder has the right to be accompanied by an assistance dog a service animal especially trained for the purpose of providing assistance to a person with the same impairing condition as the person wishing to be accompanied, in any of the places listed in G.S. 168‑3, and has the right to keep the assistance dog service animal on any premises the person leases, rents, or uses. The person qualifies for these rights upon the showing of a tag, issued by the Department of Health and Human Services, pursuant to under G.S. 168‑4.3, stamped "NORTH CAROLINA ASSISTANCE DOG SERVICE ANIMAL PERMANENT REGISTRATION" and stamped with a registration number, or upon a showing that the dog animal is being trained or has been trained as an assistance dog. An assistance dog a service animal. The service animal may accompany a person in any of the places listed in G.S. 168‑3 but may not occupy a seat in any of these places. The trainer of the assistance dog may be accompanied by the dog service animal may accompany that animal's trainer during training sessions in any of the places listed in G.S. 168‑3.

A mobility impaired person is a person with a physiological deficiency, regardless of its cause, nature, or extent, that renders the individual unable to move about without the aid of crutches, a wheelchair, or other form of support, or that limits the person's functional ability to ambulate, climb, descend, sit, rise, or perform any other related function."

SECTION 62.(b)  G.S. 168‑4.3 reads as rewritten:

"§ 168‑4.3.  Training and registration of assistance dog.service animal.

The Department of Health and Human Services, shall adopt rules for the registration of assistance dogs service animals and shall issue registrations to a visually impaired person, a hearing impaired person, or a mobility impaired person person, or a person with a seizure disorder who makes application for registration of a dog an animal that serves as an assistance dog. a service animal. The rules adopted regarding registration shall require that the dog animal be trained as an assistance dog a service animal by an appropriate agency, and that the certification and registration be permanent for the particular dog animal and need not be renewed while that particular dog animal serves the person applying for registration as an assistance dog. a service animal. No fee may be charged the person for the application, registration, tag, or replacement in the event the original is lost. The Department of Health and Human Services may, by rule, issue a certification or accept the certification issued by the appropriate training facilities."

SECTION 62.(c)  G.S. 168‑4.4 reads as rewritten:

"§ 168‑4.4.  Responsibility for assistance dog.service animal.

The visually impaired person, hearing impaired person, or mobility impaired person person, or person with a seizure disorder who is accompanied by an assistance dog a service animal may not be required to pay any extra compensation for the dog. animal. The person has all the responsibilities and liabilities placed on any person by any applicable law when that person owns or uses any dog, animal, including liability for any damage done by the dog.animal."

SECTION 63.(a)  Section 9.2 of Chapter 707 of the 1963 Session Laws, as amended by S.L. 2002‑66, reads as rewritten:

"Sec. 9.2. Beginning with the 2003‑2004 fiscal year, the base amount of funding for current expense expenditures from local funds shall include the previous years' year's level of current expense expenditures (for example, eight million seven hundred thousand dollars ($8,700,000) in 2002‑2003), multiplied by one plus the average percentage change in local current expense school expenditures for the two most recent available fiscal year  years for low‑wealth counties in North Carolina (all local expenditures shall include local current expense expenditures incurred by charter schools within the appropriate districts), as determined by the Superintendent of Public Instruction or that person's designee. The average percentage change shall be calculated by (i) adding together for each of the two previous fiscal years the total current local expense expenditures for all low‑wealth counties, (ii) dividing each of those totals, respectively, by the number of low‑wealth counties receiving low‑wealth funding in each year to obtain an average low‑wealth county local current expense expenditure for each year, and (iii) comparing the two averages. The average percentage change shall equal the percent difference between the averages for the two years. The resulting product shall then be multiplied by a ratio consisting of the Average Daily Membership used to distribute State funding for the succeeding fiscal year as provided by the Department of Public Instruction, divided by the Average Daily Membership used to distribute funding for the current fiscal year, as determined by the Superintendent of Public Instruction, or that person's designee. The resulting number shall be added to or subtracted from the previous year's amount of current expense expenditures from local funds. This sum The resulting product shall be the required level of current expense funding to be appropriated by the Board of Commissioners from any local sources, including both general and supplemental tax revenues, and not including fines and forfeitures or restricted use sales taxes authorized by Article 40 or 42 of Chapter 105 of the General Statutes."

SECTION 63.(b)  The remainder of Chapter 707 of the 1963 Session Laws is not changed by this section except to the extent any previously enacted provisions for the establishment and funding of current expense expenditures are inconsistent with the provisions of this section.

SECTION 64.(a)  Section 6(a) of Chapter 246, Session Laws of 1991, as rewritten by Section 14 of Chapter 358 of the 1993 Session Laws, reads as rewritten:

"Sec. 6. Orange County Civil Rights Ordinance. (a) The Board of Commissioners of Orange (hereafter 'Board of Commissioners') may adopt an ordinance (hereafter 'the Ordinance') to prohibit discrimination in employment, housing, housing and public accommodations on the basis of race, color, religion, gender, national origin, age, disability, marital status, familial status, and veteran status.

The Board of Commissioners may include in the Ordinance a prohibition of language or conduct or both directed at an individual or at a group of individuals because of that individual's or group of individuals' actual or perceived race, color, religion, gender, national origin, age, disability, marital status, familial status, or veteran status which communicates in a threatening manner words that incite imminent lawless action or which tend to incite an immediate breach of the peace."

SECTION 64.(b)  Section 6(b)(9) of Chapter 246, Session Laws of 1991, as rewritten by Section 14 of Chapter 358 of the 1993 Session Laws, reads as rewritten:

"(b)      The Board of Commissioners may, in the Ordinance, adopt procedures and delegate powers to the Orange County Human Relations Commission (hereafter 'the Commission') which are necessary and proper for carrying out and enforcing the Ordinance. To assist in the enforcement of the Ordinance, the Commission has, but is not limited to, the following powers:

…

(9)       Making application, in its discretion, to the Office of Administrative Hearings for the designation of an administrative law judge to preside over a hearing in cases involving allegedly unlawful employment practices, public accommodations, public accommodations or other conduct made unlawful by subsection (a) of this section after conciliation efforts have failed; and

…."

SECTION 64.(c)  Section 6(d) of Chapter 246, Session Laws of 1991, as rewritten by Section 14 of Chapter 358 of the 1993 Session Laws, reads as rewritten:

"(d)      The administrative law judge may recommend the imposition of mandatory and prohibitory injunctive relief, compensatory damages (which, as provided by the 1991 Civil Rights Act, includes emotional pain, humiliation, embarrassment, and inconvenience), punitive damages, and any other relief the administrative law judge deems appropriate; provided that:

(1)       Punitive damages may be recommended only if the administrative law judge finds that the respondent engaged in a practice made unlawful under the ordinance with malice or with reckless indifference to the protected rights of the complainant; and complainant.

(2) In cases involving unlawful employment practices, the administrative law judge may recommend reinstatement, hiring, and/or back pay.

In all cases wherein the Commission applies to the Office of Administrative Hearings for the designation of an administrative law judge, the Commission shall be the complainant and the case in support of the Commission shall be presented by the Commission's attorney.

The administrative law judge may, in his or her discretion, recommend that the respondent be awarded reasonable costs and attorneys' fees in the event the respondent prevails."

SECTION 65.  S.L. 1997‑182 is repealed. This also repeals G.S. 18B‑1006(l).

SECTION 66.  Section 17.1(f) of S.L. 2000‑138, as amended by S.L. 2002‑180, reads as rewritten:

"SECTION 17.1.(f)  Members of the Commission shall notmay receive per diem or reimbursement for travel or subsistence. From funds appropriated to the General Assembly, the Legislative Services Commission shall allocate funds for the per diem of the Commission established by this Part."

SECTION 67.  Section 7.13(b) of S.L. 2002‑126 reads as rewritten:

"SECTION 7.13.(b)  The Office of State Budget and Management shall issue a Request for Proposals for conduct an analysis of the structure and operation of the Department of Public Instruction that identifies Instruction. The analysis shall identify potential efficiencies and savings in the operations of the Department. The analysis may consider consolidation of functions with other agencies and automation of functions.

The Request for Proposals may include contingency proposals based on potential savings.

The Office of State Budget and Management shall consult with report its findings to the State Board of Education. The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to the award of the contract.by March 15, 2004, on the results of the analysis."

SECTION 68.(a)  Section 61.5 of S.L. 2002‑159 is repealed.

SECTION 68.(b)  Section 1.1 of S.L. 2002‑162 is repealed.

SECTION 69.  The introductory language of the second Section 3 of S.L. 2003‑31 reads as rewritten:

"SECTION 3.3.1.  Section 36(b) of S.L. 2002‑159, as amended by Section 1 of S.L. 2003‑2, reads as rewritten:".

SECTION 70.(a)  G.S. 20‑141(o) reads as rewritten: 

"(o)      A violation of G.S. 20‑123.2 shall be a lesser included offense in any violation of this section. No drivers license points or insurance surcharge shall be assessed on account of a violation of this subsection."

SECTION 70.(b)  This section becomes effective December 1, 2004.

SECTION 71.  Section 2 of S.L. 2003‑128 reads as rewritten:

"SECTION 2.(a) A county county, city, or town may adopt ordinances to regulate the removal and preservation of existing trees and shrubs prior to development within a perimeter buffer zone of up to 50 feet along public roadways and property boundaries adjacent to developed properties and up to 25 feet along property boundaries adjacent to undeveloped properties.

"SECTION 2.(b) Ordinances adopted pursuant to this section shall:

(1)       Provide that the required buffer area shall not exceed twenty percent (20%) of the area of the tract, net of public road rights‑of‑way and any required conservation easements.

(2)       Provide that buffer zones that adjoin public roadways shall be measured from the edge of the public road right‑of‑way.

(3)       Provide that tracts of two acres or less, net of public road rights‑of‑way, that are zoned for single‑family residential use are exempt from the requirements of the ordinances.

(4)       Provide that the ordinances are limited to situations where undeveloped property is planned or zoned in accordance with adopted planning and zoning regulations.

(5)       Provide that a survey of individual trees is not required.

(6)       Include reasonable provisions for access onto and within the subject property.

(7)       Exclude normal forestry activities on property taxed under the present‑use value standard or conducted pursuant to a forestry management plan prepared or approved by a forester registered pursuant to Chapter 89B of the General Statutes. However, for such properties, a county county, city, or town may deny a building permit or refuse to approve a site or subdivision plan for a period of three years following completion of the harvest if all or substantially all of the perimeter buffer trees that should have been protected were removed from the tract of land for which the permit or plan approval is sought. A county county, city, or town may deny a permit or refuse to approve a site or subdivision plan for a period of two years if the owner replants the buffer area within 120 days of harvest with plant material that is consistent with buffer areas required under the county's ordinances.

"SECTION 2.(c)  Before adopting an ordinance under this section, the county board of commissioners or governing body of the city or town shall hold a public hearing on the proposed ordinance. Notice of the public hearing shall be given in accordance with G.S. 153A‑323.153A‑323 or G.S. 160A‑364, as appropriate.

"SECTION 2.(d) This As to county ordinances, this section does not apply to areas located within the corporate limits or extraterritorial planning jurisdiction under Article 19 of Chapter 160A of the General Statutes of any municipality.

"SECTION 2.(e)  This section applies to the Town of Rutherfordton and to Wake County only."

SECTION 72.(a)  G.S. 115C‑264 reads as rewritten:

"§ 115C‑264.  Operation.

In the operation of their public school food programs, the public schools shall participate in the National School Lunch Program established by the federal government. The program shall be under the jurisdiction of the Division of School Food Services of the Department of Public Instruction and in accordance with federal guidelines as established by the Child Nutrition Division of the United States Department of Agriculture.

Each school may, with the approval of the local board of education, sell soft drinks to students so long as soft drinks are not sold (i) during the lunch period, (ii) at elementary schools, or (iii) contrary to the requirements of the National School Lunch Program.

All school food services shall be operated on a nonprofit basis, and any earnings therefrom over and above the cost of operation as defined herein shall be used to reduce the cost of food, to serve better food, or to provide free or reduced‑price lunches to indigent children and for no other purpose. The term "cost of operation" shall be defined as actual cost incurred in the purchase and preparation of food, the salaries of all personnel directly engaged in providing food services, and the cost of nonfood supplies as outlined under standards adopted by the State Board of Education. "Personnel" shall be defined as food service supervisors or directors, bookkeepers directly engaged in food service record keeping and those persons directly involved in preparing and serving food: Provided, that food service personnel shall be paid from the funds of food services only for services rendered in behalf of lunchroom services. Any cost incurred in the provisions and maintenance of school food services over and beyond the cost of operation shall be included in the budget request filed annually by local boards of education with boards of county commissioners. It shall not be mandatory that the provisions of G.S. 115C‑522(a) and 143‑129 be complied with Public schools are not required to comply with G.S. 115C‑522(a) in the purchase of supplies and food for such school food services."

SECTION 72.(b)  Effective June 4, 2003, Section 12 of S.L. 2003‑147 reads as rewritten:

"SECTION 12.  Sections 1 through 8 9 of this act become effective for a local school administrative unit when the unit is certified by the Department of Public Instruction as being E‑Procurement compliant, as provided in Section 9 10 of this act, or April 1, 2004, whichever occurs first. The remainder of this act is effective when it becomes law."

SECTION 73.  Section 2 of S.L. 2003‑194 reads as rewritten:

"SECTION 2.  This act is effective when it becomes law and applies to the 2003‑2004 academic year year, beginning with the Spring 2004 semester, and each subsequent year."

SECTION 74.(a)  The introductory language of Section 26(e) of S.L. 2003‑212 reads as rewritten:

"SECTION 26.(e) G.S. 58‑6‑30 G.S. 58‑15‑30 reads as rewritten:".

SECTION 74.(b)  G.S. 58‑31‑66 reads as rewritten:

"§ 58‑31‑66.  Public construction contract surety bonds.

(a)       Neither the State nor any county, city, or other political subdivision of the State, or any officer, employee, or other person acting on behalf of any such entity shall, with respect to any public building or construction contract, require any contractor, bidder, or proposer to procure a bid bond, payment bond, or performance bond from a particular surety, agent, producer, or broker.

(b) Nothing in this section prohibits an officer or employee acting on behalf of the State or a county, city, or other political subdivision of the State from:

(1) Approving the form, sufficiency, or manner of execution of the surety bonds furnished by the surety selected by the bidder to underwrite the bonds.

(2) Disapproving, on a reasonable, nondiscriminatory basis, the surety selected by the bidder to underwrite the bonds because of the financial condition of the surety.

(c) A violation of this section renders the public building or construction contract void ab initio."

SECTION 74.(c)  Subsection (a) of this section becomes effective January 1, 2004.  Subsection (b) of this section becomes effective October 1, 2004.

SECTION 75.  Section 7.5 of S.L. 2003‑284 reads as rewritten:

"SECTION 7.5.(a)  Funds in the Reserve for Experience Step Increase for Teachers and Principals in Public Schools shall be used for experience step increases for employees of schools operated by a local board of education, the Department of Health and Human Services, the Department of Correction, or the Department of Juvenile Justice and Delinquency Prevention who are paid on the teacher salary schedule or the principal and assistant principal salary schedule.

SECTION 7.5.(b)  Effective July 1, 2003, any permanent certified personnel employed on July 1, 2003, and paid on the teacher salary schedule with 29+ years of experience shall receive a one‑time bonus equivalent to the average increase of the 26 to 29 year steps. Effective July 1, 2003, any permanent personnel employed on July 1, 2003, and paid at the top of the principal and assistant principal salary schedule shall receive a one‑time bonus equivalent to two percent (2%). For permanent part‑time personnel, the one‑time bonus shall be adjusted pro rata. Personnel defined under G.S. 115C‑325(a)(5a) are not eligible to receive the bonus."

SECTION 76.  Section 11.4(e) of S.L. 2003‑284 reads as rewritten:

"SECTION 11.4.(e)  It is the intent of the General Assembly that the funds under subsection (c) subsection (d) of this section are recurring funds."

SECTION 77.  Section 12.6C(a) of S.L. 2003‑284 reads as rewritten:

"SECTION 12.6C.(a)  The North Carolina Industrial Commission may retain the additional revenue generated by raising the fee charged to parties for the filing of compromised settlements from two hundred dollars ($200.00) to an amount that does not exceed two hundred fifty dollars ($250.00) for the purpose of replacing existing computer hardware and software used for the operations of the Commission. These funds may also be used to prepare any assessment of hardware and software needs prior to purchase. The Commission may not retain any fees under this sectionfor the purpose of computer system replacement unless they are in excess of the current two‑hundred‑dollar ($200.00) fee charged by the Commission for filing a compromise settlement."

SECTION 78.  Section 29.21 of S.L. 2003‑284 reads as rewritten:

"SECTION 29.21.  The Joint Legislative Transportation Oversight Committee shall contract with an independent consultant to study the project delivery process of the Department of Transportation. The study shall examine all aspects of the project delivery process, including (i) Department of Transportation planning, design, and contract letting procedures, and (ii) the effect of other resource and regulatory agency decisions and processes on the project delivery process. The study shall identify all significant causes of delay in the project delivery process, and suggest specific, practical solutions to decrease the time it takes to deliver a transportation project from inception to completion. The Committee shall endeavor to complete this study by April 1, 2003. 2004. The provisions of G.S. 120‑32.02 shall apply to any contract with a consultant pursuant to this section."

SECTION 79.  The lead‑in language of Section 46.2 of S.L. 2003‑284 is rewritten to read:

"SECTION 46.2.  Article 9 of Chapter 142 of the General Statutes, as enacted by S.L. 2003‑314, is rewritten to read:".

SECTION 80.  Section 3 of S.L. 2003‑300 reads as rewritten:

"SECTION 3.  Waiver of Deadlines, Fees, and Penalties. – Except as prohibited by the Constitution, the Governor may extend deadlines and waive penalties or fees as is necessary to alleviate hardship created for deployed military personnel serving in Operation Iraqi Freedom. This authority includes the authority to do all of the following:

(1)       Extend for up to 90 days from the end of deployment the validity of a permanent or temporary drivers license issued under G.S. 20‑7 to deployed military personnel.

(2)       Waive civil penalties and restoration fees under G.S. 20‑309 for any deployed military personnel whose motor vehicle liability insurance lapsed during the period of deployment or within 90 days after the military member returned to North Carolina if the military member certifies to the Division of Motor Vehicles that the motor vehicle was not driven on the highway by anyone during the period in which the motor vehicle was uninsured and that the owner now has liability insurance on the motor vehicle.

(3)       Allow up to 90 days from the end of deployment for any deployed military personnel to renew a license as defined in G.S. 93B‑1. an occupational license. During the period of deployment or active duty and until the expiration of the 90‑day period provided for in this subdivision, expired occupational licenses that are within the scope of this act remain valid, as if they had not expired. For the purposes of this section, the term "occupational license" means any license (other than a privilege license), certificate, or other evidence of qualification that an individual is required to obtain before the individual may engage in or represent himself or herself to be a member of a particular profession or occupation.

(4)       Require that any renewal fee applicable to the renewal of a license under subdivision (3) of this section be prorated over the period covered by the license and reduced in proportion to the period of time that the licensee was deployed outside the State."

SECTION 81.  Section 1 of S.L. 2003‑320 reads as rewritten:

"SECTION 1.  Mayland Community College may, with prior approval of the State Board of Community Colleges and notwithstanding G.S. 115D‑15 or Article 12 of Chapter 160A of the General Statutes:

(1)       Notwithstanding the provisions of G.S. 160A‑272, lease the former Lexington Furniture Building for terms it deems appropriate; Lease at private sale the former Lexington Furniture Building for such consideration as it deems sufficient; and

(2)       Sell at private sale the former Hampshire Hosiery Building to Mitchell County Development Foundation, Inc., for such consideration as it deems sufficient."

SECTION 82.  Section 12 of S.L. 2003‑349 reads as rewritten:

"SECTION 12.  Parts 1 and 8 of this act are effective for taxable years beginning on or after January 1, 2003. Part 5 of this act becomes effective July 1, 2003. Part 9 of this act is effective for taxable years beginning on or after January 1, 2003, and shall expire for taxable years beginning on or after January 1, 2005. Part 10 of this act becomes effective January 1, 2004. The remainder of this act is effective when it becomes law."

SECTION 83.  The title of S.L. 2003‑401 is amended by adding the following immediately before the period: "AND PROVIDE ADDITIONAL CONSUMER PROTECTIONS".

SECTION 84.  Sections 75 through 79 of this act become effective July 1, 2004, unless otherwise provided in those sections.  Unless otherwise provided, the remainder of this act is effective when it becomes law.

In the General Assembly read three times and ratified this the 18^th day of July, 2004.

                                                                    s/ Marc Basnight

                                                                         President Pro Tempore of the Senate

                                                                    s/ Richard T. Morgan

                                                                         Speaker of the House of Representatives

                                                                    s/ Michael F. Easley

                                                                         Governor

Approved 7:41 p.m. this 17^th day of August, 2004