North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S363 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 363
	3	+	S D
	4	+	SENATE BILL DRS55014-MRp-21C
	5	+
5	6
6	7
7	8		Short Title: DST Technical Corrections/Admin. Changes 2025.-AB (Public)
8	9		Sponsors: Senators Alexander, Ford, and Hanig (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 24, 2025~~
11		-	~~S363 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS55014 -MRp-21C
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT MAKING TECHNICAL CORRECTIONS AND ADMINISTRATIVE CHANGES 2
14	15		TO THE LAWS GOVERNING AND RELATED TO THE DEPARTMENT OF STATE 3
15	16		TREASURER. 4
16	17		The General Assembly of North Carolina enacts: 5
17	18		6
18	19		PART I. EXTEND THE PROVISIONAL ENTRY PERIOD OF CHARTER SCHOOLS 7
19	20		IN THE TEACHERS' AND STATE EMPLOYEES ' RETIREMENT SYSTEM 8
20	21		SECTION 1.1. G.S. 135-5.3 reads as rewritten: 9
21	22		"§ 135-5.3. Optional participation for charter schools operated by private nonprofit 10
22	23		corporations or municipalities. 11
23	24		… 12
24	25		(b3) A charter school seeking to become a participating employer in the Retirement 13
25	26		System prior to the end of the second year of operation shall be granted provisional entry into the 14
26	27		Retirement System for one year. In the event the employee or employer contributions required 15
27	28		under G.S. 135-8(f) are not received by the date set by the Board of Trustees, the Board of 16
28	29		Trustees may revoke the charter school's provisional entry into the Retirement System. The 17
29	30		Board must notify a charter school in writing not less than 90 days prior to revoking a charter 18
30	31		school's provisional entry into the Retirement System. One year after the charter school was 19
31	32		granted After the charter school's initial year of provisional entry into the Retirement System, the 20
32	33		charter school shall undergo an actuarial and financial review as required by the Board of 21
33	34		Trustees.Trustees may extend the charter school's provisional entry by up to two additional years 22
34	35		or the charter school may apply to become a participating employer in the Retirement System. If 23
35	36		the Board of Trustees extends the charter school's provisional entry under this subsection, then 24
36	37		the charter school may apply to become a participating employer in the Retirement System at 25
37	38		any time during the extended period of provisional entry. 26
38	39		(b4) A charter school seeking to applying to become a participating employer in the 27
39	40		Retirement System after the end of the initial year of operation but before the end of the second 28
40	41		year of operation may period, or during the extended period, of provisional entry shall undergo 29
41	42		an actuarial review and a financial review as required by the Board of Trustees prior to entry into 30
42	43		the Retirement System. A charter school seeking to become a participating employer in the 31
43	44		Retirement System after the end of the second year of operation shall undergo an actuarial and 32
44	45		financial review as required by the Board of Trustees prior to entry into the Retirement System.a 33
45	46		decision on the application. 34
46		-	… 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 363-First Edition
	47	+	… 35
	48	+	FILED SENATE
	49	+	Mar 20, 2025
	50	+	S.B. 363
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS55014-MRp-21C
48	53		(b6) The financial review required under this section will be based on financial statements 1
49	54		and independent audit reports or functionally equivalent reports submitted to the Board of 2
50	55		Trustees by the charter school. Any charter school that is unable to provide this required 3
51	56		information shall not be granted entry into the Retirement System. 4
52	57		…." 5
53	58		SECTION 1.2. This Part applies to any charter schools that seek to become a 6
54	59		participating employer in the Teachers' and State Employees' Retirement System, or are in the 7
55	60		initial period of provisional entry into the Retirement System, on or after the date that this act 8
56	61		becomes law. 9
57	62		10
58	63		PART II. REQUIRE THE BOARD OF TRUSTEES RATHER THAN THE STATE 11
59	64		TREASURER TO DETERMINE THE REVERSAL OF BENEFITS FORFEITED DUE 12
60	65		TO FELONIOUS CONDUCT UNDER THE TEACHERS ' AND STATE EMPLOYEES ' 13
61	66		RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL RETIREMENT SYSTEM, 14
62	67		THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE 15
63	68		LEGISLATIVE RETIREMENT SYSTEM 16
64	69		SECTION 2.1.(a) G.S. 135-18.10A(c) reads as rewritten: 17
65	70		"(c) If a member or former member whose benefits under the Retirement System were 18
66	71		forfeited under this section, except for the return of member contributions plus interest, 19
67	72		subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 20
68	73		aside for any reason, then the member or former member may seek a reversal of the benefit 21
69	74		forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 22
70	75		Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 23
71	76		benefits will be restored upon repayment of all accumulated contributions plus interest. 24
72	77		Repayment of all accumulated contributions that have been received by the individual under the 25
73	78		forfeiture provisions of this section must be made in a total lump-sum payment with interest 26
74	79		compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 27
75	80		the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 28
76	81		forfeiture must receive reinstatement of the service credit forfeited." 29
77	82		SECTION 2.1.(b) G.S. 128-38.4A(c) reads as rewritten: 30
78	83		"(c) If a member or former member whose benefits under the Retirement System were 31
79	84		forfeited under this section, except for the return of member contributions plus interest, 32
80	85		subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 33
81	86		aside for any reason, then the member or former member may seek a reversal of the benefit 34
82	87		forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 35
83	88		Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 36
84	89		benefits will be restored upon repayment of all accumulated contributions plus interest. 37
85	90		Repayment of all accumulated contributions that have been received by the individual under the 38
86	91		forfeiture provisions of this section must be made in a total lump-sum payment with interest 39
87	92		compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 40
88	93		the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 41
89	94		forfeiture must receive reinstatement of the service credit forfeited." 42
90	95		SECTION 2.1.(c) G.S. 135-75.1A(c) reads as rewritten: 43
91	96		"(c) If a member or former member whose benefits under the Retirement System were 44
92	97		forfeited under this section, except for the return of member contributions plus interest, 45
93	98		subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 46
94	99		aside for any reason, then the member or former member may seek a reversal of the benefit 47
95	100		forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 48
96	101		Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 49
97	102		benefits will be restored upon repayment of all accumulated contributions plus interest. 50
98	103		Repayment of all accumulated contributions that have been received by the individual under the 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 363-First Edition~~ Page 3
	104	+	DRS55014-MRp-21C Page 3
100	105		forfeiture provisions of this section must be made in a total lump-sum payment with interest 1
101	106		compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 2
102	107		the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 3
103	108		forfeiture must receive reinstatement of the service credit forfeited." 4
104	109		SECTION 2.1.(d) G.S. 120-4.33A(c) reads as rewritten: 5
105	110		"(c) If a member or former member whose benefits under the Retirement System were 6
106	111		forfeited under this section, except for the return of member contributions plus interest, 7
107	112		subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 8
108	113		aside for any reason, then the member or former member may seek a reversal of the benefit 9
109	114		forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 10
110	115		Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 11
111	116		benefits will be restored upon repayment of all accumulated contributions plus interest. 12
112	117		Repayment of all accumulated contributions that have been received by the individual under the 13
113	118		forfeiture provisions of this section must be made in a total lump-sum payment with interest 14
114	119		compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 15
115	120		the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 16
116	121		forfeiture must receive reinstatement of the service credit forfeited." 17
117	122		18
118	123		PART III. CLARIFICATION OF FEES SUBMITTED TO THE STATE TREASURER 19
119	124		FOR THE LIMITED PRACTICE OF OUT -OF-STATE ATTORNEYS 20
120	125		SECTION 3.1. G.S. 84-4.1 reads as rewritten: 21
121	126		"§ 84-4.1. Limited practice of out-of-state attorneys. 22
122	127		Any attorney domiciled in another state, and regularly admitted to practice in the courts of 23
123	128		record of and in good standing in that state, having been retained as attorney for a party to any 24
124	129		civil or criminal legal proceeding pending in the General Court of Justice of North Carolina, the 25
125	130		North Carolina Utilities Commission, the North Carolina Industrial Commission, the Office of 26
126	131		Administrative Hearings of North Carolina, or any administrative agency, may, on motion to the 27
127	132		relevant forum, be admitted to practice in that forum for the sole purpose of appearing for a client 28
128	133		in the proceeding. The motion required under this section shall be signed by the attorney and 29
129	134		shall contain or be accompanied by:by all of the following: 30
130	135		… 31
131	136		(7) A fee in the amount of two hundred twenty-five dollars ($225.00) submitted 32
132	137		and made payable to one of the following: (i) for judicial proceedings, the 33
133	138		presiding clerk of court and (ii) for administrative proceedings, the presiding 34
134	139		administrative agency. The clerk of court or administrative agency shall: (i) 35
135	140		remit transfer, by way of the State's electronic accounting system, two hundred 36
136	141		dollars ($200.00) of the fee collected to the State Treasurer North Carolina 37
137	142		Administrative Office of the Courts for support of the General Court of 38
138	143		Justice, and (ii) transmit twenty-five dollars ($25.00) of the fee collected to 39
139	144		the North Carolina State Bar to regulate the practice of out-of-state attorneys 40
140	145		as provided in this section. 41
141	146		Compliance with the foregoing requirements does not deprive the court of the discretionary 42
142	147		power to allow or reject the application." 43
143	148		44
144	149		PART IV. ABLE ACCOUNT S MODIFICATION 45
145	150		SECTION 4.1.(a) G.S. 147-86.73 reads as rewritten: 46
146	151		"§ 147-86.73. Administration of ABLE Program. 47
147	152		… 48
148	153		(e) Claim for Medical Assistance Benefits. – To the extent provided in subsection 26 49
149	154		U.S.C. § 529A(f) Unless required by federal law, upon the death of a designated beneficiary, the 50
150	155		State shall have not file a claim pursuant to 20 U.S.C. § 529A(f) for payment from the 51 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 363-First Edition~~
	156	+	Page 4 DRS55014-MRp-21C
152	157		beneficiary's account in an amount equal to the total for any medical assistance paid for the 1
153	158		designated beneficiary after the establishment of the account. beneficiary. The State may shall 2
154	159		file its claim for repayment from the account with the State Treasurer within 60 days of receiving 3
155	160		notice from the State Treasurer of the death of the designated beneficiary. Any remaining funds 4
156	161		in the beneficiary's account shall be distributed as provided in the account agreement or 5
157	162		distributed to the beneficiary's estate if no other designation is made. 6
158	163		(f) Notice of the Death of a Designated Beneficiary. – Within 30 days of the date the 7
159	164		State Treasurer receives notice of the death of a designated beneficiary, the State Treasurer shall 8
160	165		provide notice of the designated beneficiary's death to the Department of Health and Human 9
161	166		Services, Division of Health Benefits. 10
162	167		… 11
163	168		(g1) Notice for Designated Beneficiary Receiving Medicaid. – The ABLE Account 12
164	169		application package approved in accordance with G.S. 147-86.71(b)(1) shall include notice of 13
165	170		the State's right under subsection (e) of this section to file a claim for payment only if required 14
166	171		by federal law from a designated beneficiary's ABLE account following the death of a beneficiary 15
167	172		who received medical assistance benefits. 16
168	173		… 17
169	174		(i) The Department of Health and Human Services shall provide information and 18
170	175		assistance to the Department of State Treasurer and shall enter into a data-sharing agreement with 19
171	176		the Department of State Treasurer for the purpose of the ongoing implementation of this act. The 20
172	177		Department of State Treasurer shall consult with other departments as needed." 21
173	178		SECTION 4.1.(b) This section is effective when it becomes law and applies to deaths 22
174	179		of designated beneficiaries on or after that date. 23
175	180		24
176	181		PART V. CORRECT STATUTORY REFERENCES TO RESTORATION OF SERVICE 25
177	182		AS AN EMPLOYEE OR TEACHER IN THE TEACHERS ' AND STATE EMPLOYEES ' 26
178	183		RETIREMENT SYSTEM 27
179	184		SECTION 5.1.(a) G.S. 120-32(1) reads as rewritten: 28
180	185		"(1) Determine the number, titles, classification, functions, compensation, and 29
181	186		other conditions of employment of the joint legislative service employees of 30
182	187		the General Assembly, including but not limited to the following departments: 31
183	188		a. Legislative Services Officer and personnel. 32
184	189		… 33
185	190		Temporary employees The provisions of G.S. 135-3(a)(8)c. do not apply to 34
186	191		temporary employees of the General Assembly are exempt from the 35
187	192		provisions of G.S. 135-3(8)c., as to with respect to compensation earned in 36
188	193		that status.while a temporary employee of the General Assembly." 37
189	194		SECTION 5.1.(b) G.S. 135-3(a)(8) reads as rewritten: 38
190	195		"(8) The provisions of this subsection (8) subdivision shall apply to any member 39
191	196		whose membership is terminated on or after July 1, 1963 and who becomes 40
192	197		entitled to benefits hereunder in accordance with the provisions hereof:all of 41
193	198		the following provisions: 42
194	199		… 43
195	200		c. Should Unless otherwise provided, if a beneficiary who retired on an 44
196	201		early or service retirement allowance under this Chapter be Article is 45
197	202		reemployed by, or otherwise engaged to perform services for, an 46
198	203		employer participating in the Retirement System on a part time, 47
199	204		temporary, interim, or on a fee for service basis, whether contractual 48
200	205		or otherwise, except as provided in G.S. 120-32(1), and if such the 49
201	206		beneficiary earns an amount during the 12 month period immediately 50
202	207		following the effective date of retirement or in any calendar year which 51 General Assembly Of North Carolina Session 2025
203		-	~~Senate Bill 363-First Edition~~ Page 5
	208	+	DRS55014-MRp-21C Page 5
204	209		exceeds fifty percent (50%) of the reported compensation, excluding 1
205	210		terminal payments, during the 12 months of service preceding the 2
206	211		effective date of retirement, or twenty thousand dollars ($20,000), 3
207	212		whichever is greater, as hereinafter indexed, then the retirement 4
208	213		allowance shall be suspended as of the first day of the month following 5
209	214		the month in which the reemployment earnings exceed the amount 6
210	215		above, indexed amount, for the balance of the calendar year, except 7
211	216		when unless the reemployment earnings exceed the amount above 8
212	217		indexed amount in the month of December, in which case December. 9
213	218		If the reemployment earnings exceed the indexed amount in 10
214	219		December, then the retirement allowance shall not be suspended. The 11
215	220		A suspended retirement allowance of the beneficiary shall be 12
216	221		reinstated as of January 1 of each year following suspension. The 13
217	222		amount that may be earned before suspension shall be increased on 14
218	223		January 1 of each year by the percentage change between the 15
219	224		December Consumer Price Index in the year prior to retirement and 16
220	225		the December Consumer Price Index in the year most recently ended, 17
221	226		calculated to the nearest tenth of a percent (1/10 of 1%), provided that 18
222	227		this percentage change is positive. 19
223	228		c1. Within 90 days of the end of each month in which a beneficiary is 20
224	229		reemployed under the provisions of sub-subdivision c. of this 21
225	230		subdivision, each employer shall provide a report for that month on 22
226	231		each reemployed beneficiary, including the terms of the 23
227	232		reemployment, the date of the reemployment, and the amount of the 24
228	233		monthly compensation. If the required report is not received within the 25
229	234		required 90 days, the Board may do any or all of the following: 26
230	235		… 27
231	236		e. Any beneficiary who retired on an early or service retirement 28
232	237		allowance as an employee of any State department, agency or 29
233	238		institution under the Law Enforcement Officers' Retirement System 30
234	239		and becomes employed as an employee by a State department, agency, 31
235	240		or institution as an employer participating in the Retirement System 32
236	241		shall become subject to the provisions of G.S. 135-3(8)c and 33
237	242		G.S. 135-3(8)d sub-subdivisions c. and d. of this subdivision on and 34
238	243		after January 1, 1989. 35
239	244		…." 36
240	245		SECTION 5.1.(c) G.S. 135-3(b) reads as rewritten: 37
241	246		"(b) Notwithstanding the provisions of sub-subdivsions sub-subdivisions c. and d. of 38
242	247		subdivision (8) (a)(8) of this section to the contrary, a beneficiary who was a beneficiary retired 39
243	248		on an early or service retirement with the Law Enforcement Officers' Retirement System at the 40
244	249		time of the transfer of law enforcement officers employed by the State and beneficiaries last 41
245	250		employed by the State to this Retirement System on January 1, 1985, and who also was a 42
246	251		contributing member of this Retirement System on January 1, 1985, shall continue to be paid his 43
247	252		or her retirement allowance without restriction and may continue as a member of this Retirement 44
248	253		System with all the rights and privileges appendant to membership." 45
249	254		SECTION 5.1.(d) G.S. 135-5(hh) reads as rewritten: 46
250	255		"(hh) Notwithstanding any other provision of this Chapter, from and after July 1, 1983, the 47
251	256		retirement allowance payable to each teacher and State employee, who retired prior to July 1, 48
252	257		1973, and who is in receipt of a reduced retirement allowance based upon 30 or more years of 49
253	258		contributing membership service, shall be increased by the elimination of the reduction factors 50
254	259		applicable at the time of their retirement under G.S. 135-3(8) G.S. 135-3(a)(8) or G.S. 135-5(b3). 51 General Assembly Of North Carolina Session 2025
255		-	Page 6 ~~Senate Bill 363-First Edition~~
	260	+	Page 6 DRS55014-MRp-21C
256	261		The provisions of this subsection shall apply equally to the allowance of a surviving annuitant of 1
257	262		a beneficiary." 2
258	263		SECTION 5.1.(e) G.S. 135-5.1(a)(4) reads as rewritten: 3
259	264		"(4) Field faculty of the Cooperative Agriculture Extension Service, and tenure 4
260	265		track faculty in North Carolina State University agriculture research programs 5
261	266		who are exempt from the North Carolina Human Resources Act and who are 6
262	267		eligible for membership in the Teachers' and State Employees' Retirement 7
263	268		System pursuant to G.S. 135-3(1), who in any of the cases described in this 8
264	269		subsection (i) who either had been members of the Optional Retirement 9
265	270		Program under the provisions of Chapter 338, Session Laws of 1971, 10
266	271		immediately prior to July 1, 1985, or (ii) or have sought membership as 11
267	272		required in subsection (b), below. subsection (b) of this section. Under the 12
268	273		Optional Retirement Program, the State and the participant shall contribute, 13
269	274		to the extent authorized or required, toward the purchase of such contracts 14
270	275		under subsection (b) of this section or deposited in such trust on the 15
271	276		participant's behalf." 16
272	277		SECTION 5.1.(f) G.S. 135-27(e)(3) reads as rewritten: 17
273	278		"(3) Terminate contributing membership service and be entitled alternatively to the 18
274	279		benefits and allowances provided under G.S. 135-3(8) G.S. 135-3(a)(8) or 19
275	280		G.S. 135-5(a)." 20
276	281		SECTION 5.1.(g) G.S. 143B-1491(e) reads as rewritten: 21
277	282		"(e) The members of the Commission shall receive the salary fixed by the General 22
278	283		Assembly in the Current Operations Appropriations Act and shall receive necessary travel and 23
279	284		subsistence expenses in accordance with the provisions of G.S. 138-6. Notwithstanding any other 24
280	285		provision of law, the The half-time members of the Commission shall not be subject to the 25
281	286		provisions of G.S. 135-3(8)(c).G.S. 135-3(a)(8)c." 26
282	287		27
283	288		PART VI. CORRECT REFERENCE TO ARTICLE 11 OF CHAPTER 159 OF THE 28
284	289		GENERAL STATUTES 29
285	290		SECTION 6.1.(a) G.S. 153A-82 reads as rewritten: 30
286	291		"§ 153A-82. Powers and duties of manager. 31
287	292		(a) The manager is the chief administrator of county government. The manager is 32
288	293		responsible to the board of commissioners for the administration of all departments of county 33
289	294		government under the board's general control and has the following powers and duties: 34
290	295		… 35
291	296		(9) The manager shall receive a minimum of six clock hours of education upon 36
292	297		the occurrence, or within six months of the occurrence, of any of the 37
293	298		following: 38
294	299		a. The Local Government Commission is exercising its authority under 39
295	300		Article 10 11 of Chapter 159 of the General Statutes with respect to 40
296	301		the county. 41
297	302		b. The county has received a unit letter from the Local Government 42
298	303		Commission due to a deficiency in complying with Chapter 159 of the 43
299	304		General Statutes. 44
300	305		…." 45
301	306		SECTION 6.1.(b) G.S. 159-25 reads as rewritten: 46
302	307		"§ 159-25. Duties of finance officer; dual signatures on checks; internal control procedures 47
303	308		subject to Commission regulation. 48
304	309		… 49
305	310		(d) The Local Government Commission has the authority to require any finance officer 50
306	311		or any other employee who performs the duties of a finance officer to participate in training 51 General Assembly Of North Carolina Session 2025
307		-	~~Senate Bill 363-First Edition~~ Page 7
	312	+	DRS55014-MRp-21C Page 7
308	313		related to the powers, duties, and responsibilities of the finance officer under any of the following 1
309	314		circumstances: (i) the Commission is exercising its authority under Article 10 11 of this Chapter 2
310	315		with respect to the employing local government or public authority, (ii) the employing local 3
311	316		government or public authority has received a unit letter from the Commission due to a deficiency 4
312	317		in complying with this Chapter, (iii) the employing local government or public authority has an 5
313	318		internal control material weakness or significant deficiency in the most recently completed 6
314	319		financial audit, or (iv) the finance officer fails to annually meet or attest to the minimum 7
315	320		qualifications of the position, as established by the Commission. The training may be provided 8
316	321		by the Commission, the School of Government at the University of North Carolina, the North 9
317	322		Carolina Community College System, the North Carolina League of Municipalities, the North 10
318	323		Carolina Association of County Commissioners, or other qualified sources at the choice of the 11
319	324		governing board and upon the prior approval of the Commission. When the Commission requires 12
320	325		a finance officer or other employee to participate in training as authorized in this subsection, the 13
321	326		Commission shall notify the finance officer or other employee and the employing local 14
322	327		government or public authority of the required training. Upon completion of the required training 15
323	328		by the finance officer or other employee, the employing local government or public authority 16
324	329		shall submit, in writing, to the Commission proof that the training requirements have been 17
325	330		satisfied. 18
326	331		(e) The Local Government Commission may require any local government or public 19
327	332		authority to contract with outside entities in accordance with the terms of subdivision (9) of 20
328	333		subsection (a) of this section if the local government or public authority has received a unit letter 21
329	334		from the Commission due to a deficiency in complying with this Chapter or the local government 22
330	335		or public authority has an internal control finding in the most recently completed financial audit." 23
331	336		SECTION 6.1.(c) G.S. 160A-148 reads as rewritten: 24
332	337		"§ 160A-148. Powers and duties of manager. 25
333	338		(a) The manager shall be the chief administrator of the city. The manager shall be 26
334	339		responsible to the council for administering all municipal affairs placed in the manager's charge 27
335	340		by the council, and shall have the following powers and duties: 28
336	341		… 29
337	342		(9) The manager shall receive a minimum of six clock hours of education upon 30
338	343		the occurrence, or within six months of the occurrence, of any of the 31
339	344		following: 32
340	345		a. The Local Government Commission is exercising its authority under 33
341	346		Article 10 11 of Chapter 159 of the General Statutes with respect to 34
342	347		the city. 35
343	348		b. The city has received a unit letter from the Local Government 36
344	349		Commission due to a deficiency in complying with Chapter 159 of the 37
345	350		General Statutes. 38
346	351		…." 39
347	352		40
348	353		PART VII. MISCELLANEOUS TECHNICAL AND CONFORMING CHANGES 41
349	354		SECTION 7.1. G.S. 120-4.21(b2)(3) reads as rewritten: 42
350	355		"(3) For a member whose retirement date occurs on or after his the member's 50th 43
351	356		birthday and before his the member's 60th birthday and upon completion of 44
352	357		20 years of creditable service, computation as in subdivision (2) of this 45
353	358		subsection, reduced by the same percentage as provided for in Article 1 of 46
354	359		Chapter 135 of the General Statutes.under G.S. 135-5(b21)(2)." 47
355	360		SECTION 7.2. G.S. 120-4.28 reads as rewritten: 48
356	361		"§ 120-4.28. Survivor's alternate benefit. 49
357	362		(a) The designated beneficiary of If a member who dies in service before retirement but 50
358	363		after age 60 and after completing five years of creditable service or after completing 12 years of 51 General Assembly Of North Carolina Session 2025
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	364	+	Page 8 DRS55014-MRp-21C
360	365		creditable service service, then the principal beneficiary designated by that member to receive a 1
361	366		return of accumulated contributions under G.S. 120-4.25 is entitled to Option 2 prescribed by 2
362	367		G.S. 120-4.26. 3
363	368		(b) In the event that If a retirement allowance becomes payable under this section to the 4
364	369		principal beneficiary designated to receive a return of accumulated contributions pursuant to this 5
365	370		subsection and that principal beneficiary dies before the total of the retirement allowances paid 6
366	371		equals is equal to or greater than the amount of those the member's accumulated contributions 7
367	372		over the total of the retirement allowances paid to the beneficiary, contributions, then the 8
368	373		allowance excess of those accumulated contributions over the total of the retirement allowance 9
369	374		paid to the principal beneficiary shall be paid in a lump sum to the person or persons the member 10
370	375		has designated as the contingent beneficiary for return of accumulated contributions, if the person 11
371	376		or persons contributions under G.S. 120-4.25. 12
372	377		(c) If a retirement allowance becomes payable under this section and the principal 13
373	378		beneficiary is not living at the time the payment falls due, then the retirement allowance shall be 14
374	379		paid to the contingent beneficiary designated to receive a return of accumulated contributions 15
375	380		under G.S. 120-4.25. If that contingent beneficiary dies before the total of the retirement 16
376	381		allowances paid is equal to or greater than the amount of the member's accumulated 17
377	382		contributions, then the excess of those accumulated contributions over the total of the retirement 18
378	383		allowances paid to the contingent beneficiary shall be paid in a lump sum to the contingent 19
379	384		beneficiary's legal representative. 20
380	385		(d) If no beneficiaries are living at the time the payment required under this section first 21
381	386		falls due, otherwise to then the allowance shall be paid in a lump sum to the principal beneficiary's 22
382	387		legal representative. In the event that a retirement allowance becomes payable to the contingent 23
383	388		beneficiary designated to receive a return of accumulated contributions pursuant to subsection 24
384	389		(m) of this section and that beneficiary dies before the total of the retirement allowances paid 25
385	390		equals the amount of the accumulated contributions of the member at the date of the member's 26
386	391		death, the excess of those accumulated contributions over the total of the retirement allowances 27
387	392		paid to the beneficiary shall be paid in a lump sum to the contingent beneficiary's legal 28
388	393		representative." 29
389	394		SECTION 7.3. G.S. 128-28(c) reads as rewritten: 30
390	395		"(c) Members of Board. – The Board shall consist of (i) five members of the Board of 31
391	396		Trustees of the Teachers' and State Employees' Retirement System appointed under 32
392	397		G.S. 135-6(b): the State Treasurer; the Superintendent of Public Instruction; the two members 33
393	398		appointed by the General Assembly; and one of the two members appointed by the Governor 34
394	399		who are not members of the teaching profession or State employees; and (ii) eight members 35
395	400		designated by the Governor:Governor. The members designated by the Governor are as follows: 36
396	401		(1) One member shall be a mayor or a member of the governing body of a city or 37
397	402		town participating in the Retirement System;System. 38
398	403		(2) One member shall be a county commissioner of a county participating in the 39
399	404		Retirement System;System. 40
400	405		(3) One member shall be a law-enforcement officer employed by an employer 41
401	406		participating in the Retirement System;System. 42
402	407		(4) One member shall be a county manager of a county participating in the 43
403	408		Retirement System;System. 44
404	409		(5) One member shall be a city or town manager of a city or town participating in 45
405	410		the Retirement System;System. 46
406	411		(6) One member shall be an active, Fair Labor Standards Act nonexempt, local 47
407	412		governmental employee of an employer;employer. 48
408	413		(7) One member shall be a retired, Fair Labor Standards Act nonexempt, local 49
409	414		governmental employee of an employer; andemployer. 50 General Assembly Of North Carolina Session 2025
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	415	+	DRS55014-MRp-21C Page 9
411	416		(8) One member shall be an active or retired member of the Firemen's North 1
412	417		Carolina Firefighters' and Rescue Squad Workers' Pension Fund. 2
413	418		The Governor shall designate eight members on April 1 of years in which an election is held 3
414	419		for the office of Governor, or as soon thereafter as possible, and each of the eight members 4
415	420		designated by the Governor shall serve on the Board in addition to the regular duties of their the 5
416	421		member's city, town, or county office: Provided, that if office. If for any reason any member 6
417	422		appointed pursuant to subdivisions (1) through (6) of this subsection vacates the city, town, or 7
418	423		county office or employment which that the member held at the time of this designation, then the 8
419	424		Governor shall designate another member to serve until the next regular date for the designation 9
420	425		of members to serve on the Board." 10
421	426		SECTION 7.4. G.S. 128-26A is redesignated as G.S. 128-26.1. 11
422	427		SECTION 7.5. G.S. 135-48.40(d)(10) reads as rewritten: 12
423	428		"(d) Fully Contributory Coverage. – The following persons shall be eligible for coverage 13
424	429		under the Plan, on a fully contributory basis, subject to the provisions of G.S. 135-48.43: 14
425	430		… 15
426	431		(10) Any eligible dependent child of the deceased retiree, teacher, State employee, 16
427	432		member of the General Assembly, former member of the General Assembly, 17
428	433		or Disability Income Plan beneficiary, provided the child was covered at the 18
429	434		time of death of the retiree, teacher, State employee, member of the General 19
430	435		Assembly, former member of the General Assembly, or Disability Income 20
431	436		Plan beneficiary, (or was in posse at the time and is covered at birth under this 21
432	437		Part), Part, or was covered under the Plan on September 30, 1986. An eligible 22
433	438		surviving dependent child can remain covered until age 26 or indefinitely if 23
434	439		certified as incapacitated under G.S. 135-44.41(b).G.S. 135-48.41(b)." 24
435	440		25
436	441		PART VIII. EFFECTIVE DATE 26
437	442		SECTION 8.1. This act is effective when it becomes law. 27