SUMMARIES OF SUBSTANTIVE
RATIFIED LEGISLATION
2013 GENERAL ASSEMBLY
2014 REGULAR SESSION
RESEARCH DIVISION
N.C. GENERAL ASSEMBLY
NOVEMBER 2014
300 copies of this document were published at an estimated cost of or about $3.10 per copy. i
November 2014
To the Members of the 2014 Session of the 2013 General Assembly:
This publication contains summaries of all substantive legislation of general applicability and certain local legislation having general import from the 2014 Regular Session. Most local acts are not analyzed in this publication. Significant appropriations matters related to the subject area specified also are included. For an in-depth review of the appropriations and revenue process, please refer to Overview: Fiscal and Budgetary Actions, prepared by the Fiscal Research Division.
The document is organized alphabetically by subject areas. Where feasible, the subject area is further divided into subgroups. Each subject area also includes a listing of legislative, independent, and agency studies. A bill/session law index listing the page number of each summary is at the end of the publication.
This document is the result of a combined effort by the following staff members of the Research Division: Denise Huntley Adams, Dee Atkinson, Cindy Avrette, Susan Barham, Brenda Carter, Drupti Chauhan, Erika Churchill, Karen Cochrane-Brown, Judy Collier, Heather Fennell, Trina Griffin, Jennifer L. Hillman, Tim Hovis, Jeff Hudson, Amy Jo Johnson, Sara Kamprath, Brad Krehely, Peter Ledford, Mariah Matheson, Theresa Matula, Kara McCraw, Jennifer McGinnis, Harrison Moore, Jennifer Mundt, Bill Patterson, Jan Paul, Giles S. Perry, Patsy Pierce, Kelly Quick Tornow, Wendy Graf Ray, Barbara Riley, Greg Roney, Chris Saunders, and Susan Sitze. Jeff Cherry, Sean Dail, Dan Ettefagh, Luke Gillenwater, Matthew Meinig, Phyllis Pickett, Ben Stanley, and Myra Torain of the Legislative Drafting Division, also contributed to this document. Jennifer Mundt is chief editor of this year’s publication, and Chris Saunders and Sara Kamprath are co-editors. Mariah Matheson, of the Research Division, also helped edit this document. The specific staff members contributing to each subject area are listed directly below the chapter heading for that area. Staff members' initials appear after their names and after each summary to which they contributed. If you would like further information regarding any legislation in the various summaries, please contact the Research Division Office at (919) 733-2578.
This publication also is available on the Internet. Go to the General Assembly’s homepage at http://www.ncleg.net. Click on “Research Division,” then "Publications," then "Summaries of Substantive Ratified Legislation." Each summary is hyperlinked to the final bill text, the bill history, and any applicable fiscal note.
I hope this publication will provide a useful source of information for the members of the General Assembly and the public in North Carolina. We would appreciate receiving any suggestions for this publication's improvement.
Yours truly,
O. Walker Reagan
Director of Research ii
Guide to Staff Initials
(AJJ) Amy Jo Johnson
(BJC) Brenda J. Carter
(BK) Brad Krehely
(BP) Bill Patterson
(BR) Barbara Riley
(BS) Ben Stanley
(CA) Cindy Avrette
(CS) Chris Saunders
(DA) Dee Atkinson
(DC) Drupti Chauhan
(DE) Dan Ettefagh
(DHA) Denise Huntley Adams
(EC) Erika Churchill
(GR) Greg Roney
(GSP) Giles S. Perry
(HF) Heather Fennell
(HM) Harrison Moore
(JFC) Jeff F. Cherry
(JC) Judy Collier
(JH) Jeff Hudson
(JLH) Jennifer Hillman
(JLM) Jennifer McGinnis
(JM) Jennifer Mundt
(JPP) Jan P. Paul
(KCB) Karen Cochrane-Brown
(KM) Kara McCraw
(KQT) Kelly Quick Tornow
(LG) Luke Gillenwater
(MM) Mariah Matheson
(MCM) Matthew C. Meinig
(MT) Myra Torain
(PL) Peter Ledford
(PLP) Patsy L. Pierce
(PBP) Phyllis B. Pickett
(SB) Susan Barham
(SD) Sean Dail
(SK) Sara Kamprath
(SLS) Susan L. Sitze
(TG) Trina Griffin
(TH) Tim Hovis
(TM) Theresa Matula
(WGR) Wendy Graf Ray
iii
TABLE OF CONTENTS
CHAPTER 1: AGRICULTURE AND WILDLIFE 1
ENACTED LEGISLATION ................................................................................................. 1
North Carolina Farm Act of 2014 ............................................................................. 3
Technical and Other Corrections .............................................................................. 5
Regulatory Reform Act of 2014.................................................................................. 5
CHAPTER 2: ALCOHOL BEVERAGE CONTROL 7
ENACTED LEGISLATION ................................................................................................. 7
Regulatory Reform Act of 2014.................................................................................. 8
CHAPTER 3: CHILDREN AND FAMILIES 9
ENACTED LEGISLATION ................................................................................................. 9
Technical and Other Corrections .............................................................................. 9
CHAPTER 4: CIVIL LAW AND PROCEDURE 11
ENACTED LEGISLATION ............................................................................................... 11
Technical and Other Corrections ............................................................................ 12
Regulatory Reform Act of 2014................................................................................ 13
CHAPTER 5: COMMERCIAL LAW AND CONSUMER PROTECTION 15
ENACTED LEGISLATION ............................................................................................... 15
Technical and Other Corrections ............................................................................ 16
CHAPTER 6: COURTS, JUSTICE, AND CORRECTIONS 17
ENACTED LEGISLATION ............................................................................................... 17
Corrections .............................................................................................................. 17
Courts ....................................................................................................................... 19
STUDIES ....................................................................................................................... 23
CHAPTER 7: CRIMINAL LAW AND PROCEDURE 25
ENACTED LEGISLATION ............................................................................................... 25
North Carolina Farm Act of 2014 ........................................................................... 28
Technical and Other Corrections ............................................................................ 28
Regulatory Reform Act of 2014................................................................................ 29
CHAPTER 8: EDUCATION 31
ENACTED LEGISLATION ............................................................................................... 31
Public Schools .......................................................................................................... 31
Higher Education ..................................................................................................... 46
Community Colleges ................................................................................................ 47
Universities .............................................................................................................. 48
STUDIES ....................................................................................................................... 51
Referrals to Existing Commissions/Committees ...................................................... 51 iv
Referrals to Departments, Agencies, Etc. ................................................................ 52
CHAPTER 9: ENVIRONMENT AND NATURAL RESOURCES AND ENERGY 55
ENACTED LEGISLATION ............................................................................................... 55
Air Quality ............................................................................................................... 55
Coastal Issues .......................................................................................................... 56
Energy ...................................................................................................................... 57
Environmental Health .............................................................................................. 60
Fisheries ................................................................................................................... 60
Miscellaneous .......................................................................................................... 62
Parks and Public Spaces .......................................................................................... 64
Solid/Hazardous Waste ............................................................................................ 65
Water Quality/Quantity/Groundwater ..................................................................... 68
STUDIES ....................................................................................................................... 72
Referrals to Departments, Agencies, Etc. ................................................................ 72
CHAPTER 10: FINANCE 75
ENACTED LEGISLATION ............................................................................................... 75
Income Tax Changes ................................................................................................ 75
Sales Tax Changes ................................................................................................... 76
Excise Tax Changes ................................................................................................. 80
Property Tax ............................................................................................................ 81
Local Taxes .............................................................................................................. 82
Miscellaneous .......................................................................................................... 82
STUDIES ....................................................................................................................... 83
Referrals to Existing Commissions/Committees ...................................................... 83
CHAPTER 11: HEALTH AND HUMAN SERVICES 85
ENACTED LEGISLATION ............................................................................................... 85
Technical and Other Corrections ............................................................................ 93
Regulatory Reform Act of 2014................................................................................ 94
STUDIES ....................................................................................................................... 95
New/Independent Studies/Commissions................................................................... 95
Referrals to Existing Commissions/Committees ...................................................... 95
Referrals to Departments, Agencies, Etc. ................................................................ 96
CHAPTER 12: INSURANCE 101
ENACTED LEGISLATION ............................................................................................. 101
North Carolina Farm Act of 2014 ......................................................................... 102
Technical and Other Corrections .......................................................................... 103
Regulatory Reform Act of 2014.............................................................................. 103
CHAPTER 13: LABOR AND EMPLOYMENT 105
ENACTED LEGISLATION ............................................................................................. 105 v
CHAPTER 14: LOCAL GOVERNMENT 109
ENACTED LEGISLATION ............................................................................................. 109
North Carolina Farm Act of 2014 ......................................................................... 112
Technical and Other Corrections .......................................................................... 113
Regulatory Reform Act of 2014.............................................................................. 113
CHAPTER 15: MILITARY, VETERANS, AND INDIAN AFFAIRS 115
ENACTED LEGISLATION ............................................................................................. 115
CHAPTER 16: OCCUPATIONAL BOARDS AND LICENSING 117
ENACTED LEGISLATION ............................................................................................. 117
North Carolina Farm Act of 2014 ......................................................................... 118
Technical and Other Corrections .......................................................................... 119
Regulatory Reform Act of 2014.............................................................................. 120
CHAPTER 17: PROPERTY, TRUSTS, AND ESTATES 123
ENACTED LEGISLATION ............................................................................................. 123
Technical and Other Corrections .......................................................................... 124
Regulatory Reform Act of 2014.............................................................................. 125
CHAPTER 18: RESOLUTIONS 127
JOINT RESOLUTIONS .................................................................................................. 127
CHAPTER 19: RETIREMENT 129
ENACTED LEGISLATION ............................................................................................. 129
CHAPTER 20: STATE GOVERNMENT 135
ENACTED LEGISLATION ............................................................................................. 135
Elections ................................................................................................................. 150
Information Technology ......................................................................................... 151
North Carolina Farm Act of 2014 ......................................................................... 154
Regulatory Reform Act of 2014.............................................................................. 154
Technical and Other Corrections .......................................................................... 156
CHAPTER 21: TRANSPORTATION 159
ENACTED LEGISLATION ............................................................................................. 159
North Carolina Farm Act of 2014 ......................................................................... 166
Technical and Other Corrections .......................................................................... 167
Regulatory Reform Act of 2014.............................................................................. 168
CHAPTER 22: UTILITIES 169
ENACTED LEGISLATION ............................................................................................. 169
Regulatory Reform Act of 2014.............................................................................. 170
INDEX 171 [This page is intentionally left blank]
Chapter 1 Agriculture and Wildlife
Page 1
Chapter 1
Agriculture and Wildlife
Jeff F. Cherry (JFC), Mariah Matheson (MM), Jennifer McGinnis (JLM), Chris Saunders (CS)
Enacted Legislation
Omnibus Tax Law Changes: Agricultural Exemption Certificate
S.L. 2014-3, Part III (HB 1050, Part III). See Finance.
Plant Sciences Research and Innovation Initiative
S.L. 2014-100, Sec. 13.1 (SB 744, Sec. 13.1) directs the Commissioner of Agriculture to jointly develop, with the College of Agriculture and Life Sciences at North Carolina State University (NCSU) and other stakeholders, a formal proposal and economic needs assessment for the establishment of a public/private partnership between NCSU, other academic institutions, agribusiness and bioscience companies, the Department of Agriculture and Consumer Services (DACS), and other State agencies for the "Plant Sciences Research and Innovation Initiative" and for the "Food Processing Initiative." DACS and NCSU must jointly submit a copy of the proposal and report on the results of the economic needs assessment to the Agriculture and Forestry Awareness Study Commission and the General Assembly by January 1, 2015.
This section became effective July 1, 2014. (MM)
Agricultural Well Development as Criteria for Agricultural Water Resources Assistance Program Funding
S.L. 2014-100, Sec. 13.3 (SB 744, Sec. 13.3) clarifies a duty of the Soil and Water Conservation Commission (Commission) with respect to the Agricultural Water Resources Assistance Program, by adding development of agricultural wells to the Commission's responsibility for establishing criteria to allocate funds to local soil and water conservation districts.
This section became effective August 7, 2014. (JLM)
Certification of Private Pesticide Applicators
S.L. 2014-100, Sec. 13.10 (SB 744, Sec. 13.10) and S.L. 2014-103, Sec. 16 (HB 366, Sec. 16), authorize the Pesticide Board to adopt rules to classify private pesticide applicators.
These sections also direct the Structural Pest Control Committee (Committee) to adopt rules regarding ancillary activities that may be performed in association with the control of wood-destroying organisms or household pests, and exempts the Committee from the Administrative Procedure Act for the purpose of issuing these rules.
These sections became effective July 1, 2014. (CS) Chapter 1 Agriculture and Wildlife
Page 2
Increase Fees Associated with National Poultry Improvement Plan
S.L. 2014-100, Sec. 13.11 (SB 744, Sec. 13.11) directs the Department of Agriculture and Consumer Services to charge the following fees for certification in the National Poultry Improvement Plan:
 An initial certification fee of $50 plus $0.10 per bird.
 An annual recertification fee of $10 plus $0.10 per bird.
This section became effective August 7, 2014, and applies to certifications or recertifications issued on or after that date. (CS)
Fees for Forest Management Plans
S.L. 2014-100, Sec. 13.13, (SB 744, Sec. 13.13), as amended by S.L. 2014-120, Sec. 58 (SB 734, Sec. 58), requires the Board of Agriculture (Board) to establish a schedule of fees for the preparation of forest management plans, which may not exceed the amount necessary to offset the costs of the Department of Agriculture and Consumer Services to prepare forest management plans. The Board must: (i) adopt permanent rules by July 1, 2016, but until that date is allowed to set such fees without complying with the rulemaking requirements of the Administrative Procedure Act; and (ii) post the fee schedule on its Web site and provide notice of the schedule to certain persons.
This section became effective July 1, 2014. (JLM)
Tennessee Valley Authority Settlement Funds
S.L. 2014-100, Sec. 13.15 (SB 744, Sec. 13.15) appropriates $500,000 for the 2013-2014 fiscal year to the North Carolina Agricultural Water Resources Assistance Program for specific counties in western North Carolina. This section also appropriates $500,000 for the 2014-2015 fiscal year to WNC Communities to fund lighting efficiency projects for public schools in areas served by that organization, provided that no more than $50,000 may be used for administrative expenses. This section also clarifies that grants awarded for "Environmental Mitigation Projects" from Tennessee Valley Authority Settlement Agreement funds may not be used to purchase conservation easements.
This section became effective July 1, 2014. (CS)
Efficiencies Reporting By Natural and Economic Resources Agencies
S.L. 2014-100, Sec. 14.2A (SB 744, Sec. 14.2A). See State Government.
Wildlife Licensing Changes
S.L. 2014-100, Sec. 14.25 (SB 744, Sec. 14.25) makes clarifying and conforming changes to various wildlife license statutes to make the definitions of "effective date" and "disabled veteran" consistent across all license statutes and to clarify that the age of persons eligible for an Adult Resident Lifetime Sportsman License is between 12 and 70 years old.
This section became effective July 1, 2014. (JFC) Chapter 1 Agriculture and Wildlife
Page 3
Oversight of Cervids
S.L. 2014-100, Sec. 14.26 (SB 744, Sec. 14.26) prohibits the Wildlife Resources Commission (WRC) from issuing a transportation permit for the importation of cervids into the State prior to July 1, 2017. This prohibition does not limit the issuance of new captivity licenses or permits for cervid facilities originating within the State from facilities with an existing captivity license or permit. The WRC must follow the United States Department of Agriculture's Chronic Wasting Disease Program Standards (USDA Standards) in its regulation of cervids. The WRC must allow the sale of antlers, antler velvet, or hides from captive populations of cervids.
No later than March 1, 2015, the WRC must report to the Agriculture and Forestry Awareness Study Commission on the differences between the USDA Standards and rules adopted by the WRC. The report must include a list and a brief summary of rules adopted by the WRC in effect immediately prior to the enactment of this section that are more stringent than the USDA Standards.
This section became effective July 1, 2014. (MM)
Agriculture Gas Expansion Fund
S.L. 2014-100, Sec. 15.13 (SB 744, Sec. 15.13) establishes the Expanded Gas Products Service to Agriculture Fund (Fund) as a special revenue fund in the Department of Commerce (Department) to support eligible projects that would reduce infrastructure costs, increase energy efficiency or reduce energy consumption, reduce energy costs, or enhance the feasibility of the project or the provision of propane gas service. The Department is exempted from the Administrative Procedure Act for the purpose of developing criteria and administering the Fund.
This section became effective July 1, 2014. (CS)
North Carolina Farm Act of 2014
Maintain the Confidentiality of Environmental Investigations for Agricultural Operations and Direct the Department of Environment and Natural Resources to Adopt Rules for a Formal Complaint Procedure
S.L. 2014-103, Sec. 1 (HB 366, Sec. 1). See Environment and Natural Resources and Energy.
Clarify the Authority of Local Governments to Adopt Ordinances Related to Fertilizer
S.L. 2014-103, Sec. 2 (HB 366, Sec. 2). See Local Government.
Study the State's Participation in the Commercial Vehicle Safety Alliance North American Standard Inspection Program
S.L. 2014-103, Sec. 4 (HB 366, Sec. 4). See Transportation.
Clarify the Meaning of the Terms "Planting and Harvesting Season" and "Planting and Harvesting Period" for Purposes Chapter 1 Agriculture and Wildlife
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of Applying Federal Laws or Regulations Relating to Hours of Service Rules for Certain Drivers Transporting Agricultural Products
S.L. 2014-103, Sec. 5 (HB 366, Sec. 5). See Transportation.
Amend the Chairmanship of the Agriculture and Forestry Awareness Study Commission
S.L. 2014-103, Sec. 6 (HB 366, Sec. 6) amends the chairmanship of the Agriculture and Forestry Awareness Study Commission to allow the President Pro Tempore of the Senate and the Speaker of the House of Representatives to appoint one additional member of the Senate and House, respectively, to serve as cochair.
This section became effective August 6, 2014. (CS)
Allow the Commissioner of Agriculture to Appoint Law Enforcement Officers to Carry Out the Law Enforcement Responsibilities of the Department of Agriculture
S.L. 2014-103, Sec. 7 (HB 366, Sec. 7) authorizes the Commissioner of Agriculture to appoint as many Department of Agriculture and Consumer Services (Department) law-enforcement officers as he or she deems necessary to carry out the Department's law-enforcement responsibilities. These officers must meet the training standards of the North Carolina Criminal Justice Education and Training Standards Commission and take the constitutional oath of office.
This section became effective August 6, 2014. (CS)
Amend Horse Industry Promotion Act
S.L. 2014-103, Sec. 8 (HB 366, Sec. 8) amends the definition of "commercial horse feed" under the Horse Industry Promotion Act to include any commercial feed labeled or marketed for equine use.
This section became effective August 6, 2014. (CS)
Pesticide Use for Moles
S.L. 2014-103, Sec. 9 (HB 366, Sec. 9) authorizes the use of any pesticide registered by the Pesticide Board (Board) to control any species of mole other than the Star-Nosed mole if Board rules are followed and hazards to nontarget species are minimized.
This section became effective August 6, 2014. (CS)
Add Agricultural Facilities to First Degree Trespass
S.L. 2014-103, Sec. 10 (HB 366, Sec. 10). See Criminal Law and Procedure. Chapter 1 Agriculture and Wildlife
Page 5
Designate "Got to Be NC" Marketing Campaign as the Official Agricultural Marketing Campaign for the State
S.L. 2014-103, Sec. 15 (HB 366, Sec. 15) and S.L. 2014-100, Sec. 13.4 (SB 744, Sec. 13.4) designate the "Got To Be NC" marketing campaign of the North Carolina Department of Agriculture and Consumer Services as the official agricultural marketing campaign for the State, and adds "seafood" to the list of products promoted by the campaign.
This section became effective August 6, 2014. (CS)
Exempt State Fair Admission Fees from Rule Making
S.L. 2014-103, Sec. 17 (HB 366, Sec. 17) and S.L. 2014-100, Sec. 13.2 (SB 744, Sec. 13.2). See State Government.
Technical and Other Corrections
Clarifying and Conforming Changes to the Statutes Pertaining to the Tobacco Growers Assessment Act
S.L. 2014-115, Sec. 42.7 (HB 1133, Sec. 42.7) clarifies that the assessment in the Tobacco Growers Assessment Act applies to tobacco produced in North Carolina, rather than tobacco marketed in North Carolina.
This section became effective August 11, 2014. (MM)
Regulatory Reform Act of 2014
Speed Limit Waiver in State Parks and Forests
S.L. 2014-120, Sec. 31 (SB 734, Sec. 31). See Transportation.
Scope of Local Authority for Ordinances
S.L. 2014-120, Sec. 32 (SB 734, Sec. 32). See Local Government.
Hunting Trials
S.L. 2014-120, Sec. 36 (SB 734, Sec. 36) directs the Wildlife Resources Commission (WRC) to clarify the rules governing which participants in retriever field trials are required to possess a hunting license, including out-of-state participants, judges, and spectators. The WRC is required to hold public hearings and consult with field trial groups active in the State in developing the rules.
This section became effective September 18, 2014. (JLM)
Chapter 1 Agriculture and Wildlife
Page 6
Chapter 2 Alcohol Beverage Control
Page 7
Chapter 2
Alcohol Beverage Control
Brenda J. Carter (BJC) and Kelly Quick Tornow (KQT)
Enacted Legislation
Omnibus Tax Law Changes: Tax Law Compliance Changes
S.L. 2014-3, Part X (HB 1050, Part X). See Finance.
Alcoholic Beverage Control Commission/Use of Funds Credited to Alcoholic Beverage Control Commission Fund
S.L. 2014-100, Sec. 15.1 (SB 744, Sec. 15.1) provides that moneys in the Alcoholic Beverage Control Commission Fund may be expended only upon an appropriation by an act of the General Assembly.
This section became effective July 1, 2014. (BJC)
Transfer Alcoholic Beverage Control Commission to Department of Public Safety
S.L. 2014-100, Sec. 15.2A (SB 744, Sec. 15.2A) transfers the Alcoholic Beverage Control Commission (Commission) from the Department of Commerce to the Department of Public Safety and makes conforming statutory changes. The Commission will exercise its powers independently of the Secretary of Public Safety.
This section became effective October 1, 2014. (BJC)
Alcoholic Beverage Control Commission/30-Day Suspension of Permit for Certain Criminal Charges
S.L. 2014-100, Sec. 15.2A1 (SB 744, Sec. 15.2A1) requires the Alcoholic Beverage Control (ABC) Commission to immediately suspend an establishment's ABC permits for a period of 30 days if Alcohol Law Enforcement agents or local ABC Board officers provide advance notice to the Commission's Legal Division staff of an ongoing undercover operation and, upon execution of the search warrant resulting from the undercover operation, 5 or more persons are criminally charged with violations of the gambling, disorderly conduct, prostitution, controlled substance, or felony criminal counterfeit trademark laws.
This section became effective October 1, 2014, and applies to criminal charges filed on or after that date. (BJC)
Alcoholic Beverage Control Permit Fee Increase
S.L. 2014-100, Sec. 16B.2 (SB 744, Sec. 16B.2) increases the fees for renewing an Alcoholic Beverage Control permit. Application fees for renewal will be the same amount as the initial fee, except the renewal application fee for a wine shop permit remains at $500. The renewal application fee for each mixed beverages permit and each guest room cabinet permit is Chapter 2 Alcohol Beverage Control
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increased from $750 to $1,000. The annual malt beverage/wine registration and inspection fee is increased from $200 to $400 for each permit held.
This section became effective July 1, 2014, and applies to fees assessed or collected for permits issued or renewed on or after that date. (BJC)
Regulatory Reform Act of 2014
Alcoholic Beverage Control Permits/Schools and Colleges
S.L. 2014-120, Sec. 14 (SB 734, Sec. 14) rewrites the law prohibiting the issuance of permits for the sale of alcoholic beverages to businesses on the campus or property of a public school, college, or university. The section creates an exception that allows restaurants, eating establishments, food businesses, and retail businesses on North Carolina State University's Centennial Campus to obtain a permit to sell alcoholic beverages. The section also rewrites the exception that allows the issuance of permits for the sale of beer and wine at performing arts centers on property owned or leased by a constituent institution of The University of North Carolina by making the exception applicable to all public colleges and universities and removing the 2,000-seat limitation.
This section became effective September 18, 2014. (BJC)
Community College Brewing Course Waiver
S.L. 2014-120, Sec. 17 (SB 734, Sec. 17) authorizes the Alcoholic Beverage Control Commission (Commission) to grant a brewing, distillation, and fermenting course authorization to a college or community college offering the course as part of its curriculum. The college or community college may possess and sell malt beverages manufactured and produced during the course to wholesalers or retailers in limited quantities upon obtaining appropriate permits, and the school may obtain a malt beverage special event permit allowing it to give free tastings or sell its malt beverages at festivals and other similar events approved by the Commission. The sale of products raised or produced incident to the operation of a community college or college brewing, distillation, or fermentation program is exempt from the Umstead Act, a law that generally prohibits the sale of merchandise or services by governmental units in competition with citizens of the State.
This section became effective September 18, 2014. (BJC) Chapter 3 Children and Families
Page 9
Chapter 3
Children and Families
Jan P. Paul (JPP) and Wendy Graf Ray (WGR)
Enacted Legislation
Verification/Jurisdiction in Juvenile Cases
S.L. 2014-16 (HB 1103) amends the statute providing for judicial review of matters prior to an adjudicatory hearing in juvenile cases. This act adds a requirement that the court consider whether the petition seeking adjudication that a juvenile is abused, neglected, or dependent has been properly verified and invokes jurisdiction. A petition initiating a case alleging that a juvenile is abused, neglected, or dependent is required by law to be properly signed and verified to invoke subject matter jurisdiction. Without it, all proceedings in a case are void and judgments entered are without legal effect.
This act became effective October 1, 2014. (WGR)
Disapprove Industrial Commission Rules
S.L. 2014-77, Sec. 8 (SB 794, Sec. 8). See Labor and Employment.
Child Protective Services Improvement Initiative
S.L. 2014-100, Sec. 12C.1 (SB 744, Sec. 12C.1). See Health and Human Services.
Clarify Work First Family Assistance Income Levels
S.L. 2014-100, Sec. 12C.2 (SB 744, Sec. 12C.2) amends the statute that prescribes the maximum net family annual income eligibility standards for Work First Family Assistance.
This section became effective July 1, 2014. (JPP)
Technical and Other Corrections
Guardian Ad Litem Fees
S.L. 2014-115, Sec. 21 (HB 1133, Sec. 21) clarifies that the Office of Indigent Defense Services has the authority to pay the fees of a guardian ad litem who is appointed to represent a parent respondent in an abuse, neglect, or dependency case.
This section became effective August 11, 2014. (WGR)
Address on Child Support Orders
S.L. 2014-115, Sec. 44.5 (HB 1133, Sec. 44.5) requires IV-D child support orders and orders containing income withholding requirements to include the custodial parent's address, or the child's address if the custodial parent and child are at different addresses. An order does not have to contain the address of the parent or child if either of the following apply:
 There is an existing order prohibiting disclosure of the address to the obligor. Chapter 3 Children and Families
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 The court has determined that notice to the obligor is inappropriate because the obligor has made verbal or physical threats that constitute domestic violence.
This section became effective August 11, 2014. (WGR)
Chapter 4 Civil Law and Procedure
Page 11
Chapter 4
Civil Law and Procedure
Brenda J. Carter (BJC), Brad Krehely (BK), Bill Patterson (BP)
Enacted Legislation
Groundwater Contamination Claims/Exemption from Statute of Repose
S.L. 2014-17 (SB 574), as amended by S.L. 2014-44 (SB 58), provides that claims for personal injury or property damage caused by groundwater contaminated by a hazardous substance, pollutant or contaminant, including personal injury or property damage resulting from consumption, exposure or use of water supplied from such contaminated groundwater, is not subject to the 10-year statute of repose. This act does not change existing law relating to product liability actions based upon disease.
This act became effective June 20, 2014, and applies to actions filed, arising, or pending on or after that date. (BP)
Venue for Certain Challenges to Acts of the General Assembly
S.L. 2014-100, Sec. 18B.16 (SB 744, Sec. 18B.16) provides that any claim in a civil proceeding challenging the facial validity of an act of the General Assembly on the basis that the act violates the North Carolina Constitution or federal law must be heard and determined by a three-judge panel of the Superior Court of Wake County appointed by the Chief Justice of the Supreme Court if the challenge to the act's facial validity is raised by the claimant in the claimant's complaint or amended complaint, or by the defendant in the defendant's answer, responsive pleading, or within 30 days of filing the defendant's answer or responsive pleading.
This section provides a direct appeal to the North Carolina Supreme Court from any court order, whether final or interlocutory, holding that an act of the General Assembly is facially invalid on the basis that it violates the North Carolina Constitution or federal law.
For actions to which the State or a political subdivision of the State is a party, this section also provides a right of appeal to the Court of Appeals from an adverse ruling by a trial court:
 Granting or denying interlocutory, temporary or permanent injunctive or declaratory relief restraining the State or one of its political subdivisions from enforcing the act as applied against a party in a civil action, or
 Denying a motion to stay an injunction restraining the State or one of its political subdivisions from enforcing the act as applied against a party in a civil action.
This section's provisions setting forth the procedure for appointment of judges to the three-judge panel became effective September 1, 2014. The remaining provisions of this section became effective August 7, 2014, and apply to any claim asserted in a pleading or amended pleading filed on or after that date challenging the validity of an act of the General Assembly on its face or as applied to a set of factual circumstances on the basis that the act violates the North Carolina Constitution or federal law. (BP)
Pleading Monetary Relief Sought in Cases Designable as Mandatory Complex Business Cases
S.L. 2014-102, Sec. 7 (SB 853, Sec. 7) requires that pleadings setting forth a claim for relief in certain actions eligible for designation as mandatory complex business cases to be heard Chapter 4 Civil Law and Procedure
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by a Business Court Judge must state whether or not the amount of damages sought is equal to or greater than $5 million. This change will facilitate enforcement of the requirement enacted in another section of this act, that such cases having an amount in controversy of at least at least $5 million must be heard by a Business Court Judge. See Courts, Justice, and Corrections.
This section became effective August 6, 2014, and applies to actions commenced on or after that date. (BP)
Delete Statutory Forms/Procedure for Setting Aside Exempt Property
S.L. 2014-107, Part III (SB 773, Part III) deletes the statutory forms for judgment debtors claiming personal and real property exemptions and directs the Administrative Office of the Courts to continue to provide forms for that purpose.
This Part became effective October 1, 2014, and does not affect any debtor's statements issued before that date. (BJC)
Limit Successor Asbestos-Related Liabilities
S.L. 2014-110, Part IV (SB 648, Part IV) limits the liability of a corporation for asbestos-related claims if that liability resulted from the corporation's merger or consolidation with another corporation occurring prior to January 1, 1972. The successor corporation's liability for asbestos-related claims is limited to the fair market value of the gross assets of the corporation from which the asbestos-related liability was assumed at the time of the merger or consolidation.
This Part becomes effective January 1, 2015, and applies to all asbestos claims filed against a successor corporation on or after that date. (BP)
Technical and Other Corrections
Intervention by Legislative Officers in Proceedings Challenging North Carolina Statutes or Constitution Provisions
S.L. 2014-115, Sec. 18 (HB 1133, Sec. 18) amends the law concerning the standing of the Speaker of the House of Representatives and the President Pro Tempore of the Senate to intervene on behalf of the General Assembly as a party in any judicial proceeding challenging a North Carolina statute or provision of the North Carolina Constitution. The section corrects a reference to the rule of civil procedure governing interventions at the trial level and clarifies the procedure by which legislative officers may intervene at the appellate level.
This section became effective August 11, 2014. (BJC)
Pleading Monetary Relief Sought in Cases Asserting Negligence or Punitive Damages Claims
S.L. 2014-115, Sec. 18.5 (HB 1133, Sec. 18.5) amends the requirements for pleadings that set forth a claim for relief. The section provides that in all negligence actions and in all claims for punitive damages in any civil action where the matter in controversy exceeds $25,000, the pleading must not state the demand for monetary relief, but must state that the relief demanded is for damages incurred or to be incurred in excess of $25,000. This change from Chapter 4 Civil Law and Procedure
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$10,000 to $25,000 brings the pleading requirement into conformity with the increase in jurisdictional amounts for district and superior court enacted in 2013.
This section became effective August 11, 2014. (BJC)
Regulatory Reform Act of 2014
Good Samaritan Law
S.L. 2014-120, Sec. 18 (SB 734, Sec. 18) clarifies that a person who provides emergency services voluntarily and without expectation of compensation for those services is protected from liability under the Good Samaritan Law.
This section became effective September 18, 2014. (BK)
Chapter 4 Civil Law and Procedure
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[This page is intentionally left blank] Chapter 5 Commercial Law and Consumer Protection
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Chapter 5
Commercial Law and Consumer Protection
Brad Krehely (BK), Peter Ledford (PL), Bill Patterson (BP), Greg Roney (GR)
Enacted Legislation
Conform Pledge of Joint Account Laws
S.L. 2014-61 (HB 1117) conforms the laws governing the pledge of joint accounts in credit unions, savings and loan associations, and savings banks to the laws governing the pledge of joint accounts in banks. In 2012, the General Assembly enacted the Banking Law Modernization Act that made changes to the statute on joint accounts that governed banks. The changes in the banking statute clarify that, unless otherwise specifically agreed between the bank and all of the joint tenants in writing, a pledge of a joint account by any one of the joint tenants:
 Is a valid pledge and transfer of the account or amount pledged.
 Binds all of the joint tenants.
 Does not operate to sever or terminate the joint ownership.
 Survives the death of any joint tenant.
This act became effective July 7, 2014, and applies to joint accounts created before, on, or after that date. (GR)
Business Court Modernization
S.L. 2014-102, Sec. 6 (SB 853, Sec. 6) simplifies the process by which corporations and limited liability companies that are incorporated or organized in North Carolina can accomplish an internal reorganization through the use of a holding company, by permitting such internal reorganizations to occur without a vote of shareholders under specified conditions.
This section became effective October 1, 2014, and applies to plans of merger adopted on or after that date. (BP)
North Carolina Commerce Protection Act of 2014
S.L. 2014-110, Parts II and III (SB 648, Parts II and III) do the following:
Prevent the Abuse of Patents. – Part II makes a bad faith assertion of patent infringement an unfair and deceptive trade practice. An assertion of patent infringement involves a communication asserting that patent infringement has occurred or that certain entities need to license a patent. This section sets forth various factors that may be considered by the court in determining whether the person making the assertion is doing so in bad faith or in good-faith.
This section specifically exempts assertions concerning drugs and biological products regulated under the Food, Drug, and Cosmetic Act; assertions concerning asexually reproducing plant patents; assertions concerning rights under the Plant Variety Protection Act; assertions concerning usage of pesticide products enforced by the Environmental Protection Agency under federal law; assertions by or on behalf of North Carolina institutions of higher education, technology transfer organizations, or 501(c)(3) nonprofit research organizations; and assertions by an entity primarily engaged in research and development, manufacturing, or the provisions of goods or commercial services or an affiliate of that entity.
If the court determines there is a reasonable likelihood of bad faith patent assertion, the court must require the person making the assertion to post a bond equal to the estimated costs and fees incurred by the target to litigate the claim and the amount likely to be recovered by the Chapter 5 Commercial Law and Consumer Protection
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target due to the State claim created by the act, not to exceed $500,000. The court may waive the requirement where the person making the assertion has assets equal to the amount of the proposed bond or for good cause. The bond does not insulate the person making the assertion from liability above the bond amount, and the bond may be used for amounts awarded but not paid within 30 days of payment being ordered by a court.
Other provisions relating to the civil cause of action include the following:
 The Attorney General is empowered to make rules, conduct investigations, bring civil actions, or enter assurances of discontinuance.
 Targets are authorized to bring an action in Superior Court against the person making the assertion, and damages that may be awarded include equitable relief, damages, costs and fees, and exemplary damages equal to $50,000 or three times the total of damages, costs, and fees, whichever is greater.
 The court is required to join interested parties on motion of the Attorney General or a target if the person making the assertion has no substantial interest in the patent other than making demands or asserting the patent claim in litigation.
 Joined parties may be held jointly and severally liable if the party making the assertion is unable to pay amounts awarded.
 Making a demand to a North Carolina target subjects the person to the jurisdiction of North Carolina courts.
Part II became effective August 6, 2014, and applies to causes of action commenced on or after that date and demands made on or after that date.
Shareholder Assent to Exclusive Forum. – Part III amends the North Carolina Business Corporations Act to provide that a provision in the articles of incorporation or bylaws of a corporation that specifies a forum or venue in North Carolina as the exclusive forum or venue for litigation relating to the internal affairs of the corporation is valid and enforceable.
Part III became effective August 6, 2014. (PL)
Technical and Other Corrections
Amend Definition of "Home Loan"
S.L. 2014-115, Sec. 31 (HB 1133, Sec. 31) amends the definition of "home loan" in the statute dealing with contract rates on home loans secured by first mortgages or first deeds of trust to include loans secured by an equivalent first security interest in a manufactured home. This section removes an ambiguity in the existing statute.
This section became effective August 11, 2014. (BK)
Licensure as a Transitional Mortgage Loan Originator
S.L. 2014-115, Sec. 39 (HB 1133, Sec. 39) clarifies that federally registered loan originators (in addition to those licensed in other states) are eligible to apply for a licensure as a transitional mortgage loan originator.
This section became effective August 11, 2014. (BK) Chapter 6 Courts, Justice, and Corrections
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Chapter 6
Courts, Justice, and Corrections
Brenda J. Carter (BJC), Erika Churchill (EC), Sean Dail (SD), Jennifer Hillman (JLH),
Brad Krehely (BK), Peter Ledford (PL), Bill Patterson (BP), Jan P. Paul (JPP),
Wendy Graf Ray (WGR), Susan L. Sitze (SLS), Kelly Quick Tornow (KQT)
Enacted Legislation
Corrections
Omnibus Tax Law Changes: Tax Vapor Products and Prohibit Use of Vapor Products in Jails
S.L. 2014-3, Part XV (HB 1050, Part XV). See Finance.
Delay Transfer/Cleveland County Correctional Facility
S.L. 2014-19 (HB 183) delays the transfer date of the Cleveland County Correctional Facility to the Board of Trustees of Cleveland Community College until July 1, 2016.
This act became effective June 24, 2014. (KQT)
Jail Dormitory Minimum Standards
S.L. 2014-22 (SB 463). See Local Government.
All Misdemeanants to Serve Sentences in Local Confinement Facilities
S.L. 2014-100, Sec. 16C.1 (SB 744, Sec. 16C.1) eliminates provisions for the serving of misdemeanant sentences in the State prison system, and requires them to be served in local confinement facilities. Misdemeanants with sentences of greater than 90 days will serve their sentences in local confinement facilities that participate in the Statewide Misdemeanant Confinement Program (SMCP). The North Carolina Sheriffs' Association administers the SMCP, a voluntary program that pays counties with surplus jail bed capacity for the housing, transportation, and medical care of misdemeanants.
This section became effective October 1, 2014, and applies to persons placed on probation or sentenced for impaired driving on or after January 1, 2015, and, for all other misdemeanors, to persons placed on probation or sentenced on or after October 1, 2014. (SD)
Remove Limitation on Community Work Crew Fee
S.L. 2014-100, Sec. 16C.2 (SB 744, Sec. 16C.2) removes the maximum amount of $150 per day that the Division of Adult Correction (Division) of the Department of Public Safety may charge to a unit of local government for use of a community work crew. The Division may continue charge a unit of local government the cost to the Division to provide the crew.
This section became effective July 1, 2014. (PL) Chapter 6 Courts, Justice, and Corrections
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Evaluation of Electrical Devices, Appliances, and Equipment Used by the Division of Adult Correction
S.L. 2014-100, Sec. 16C.4 (SB 744, Sec. 16C.4) provides that any electrical devices, appliances, and equipment used by the Division of Adult Correction of the Department of Public Safety (DPS), that are not evaluated by the Central Engineering Section of DPS, must be evaluated by a qualified testing laboratory in the same manner as all other electrical devices, appliances, and equipment.
This section became effective July 1, 2014. (SLS)
Adult and Juvenile Inmate Medical Costs
S.L. 2014-100, Sec. 16C.6 (SB 744, Sec. 16C.6) clarifies that various laws regarding adult inmate medical costs also apply to juvenile inmate medical costs.
This section became effective July 1, 2014. (KQT)
Clarify the Imposition of Confinement in Response to Violations
S.L. 2014-100, Sec. 16C.8 (SB 744, Sec. 16C.8) clarifies that a 90-day term of confinement imposed for a felony probation violation must be served in the custody of the Division of Adult Correction of the Department of Public Safety and may not be reduced by credit for time served, which must instead be applied to the suspended sentence. This section further clarifies that a defendant must serve a period of confinement for a misdemeanor probation violation in the facility where the defendant would have served an active sentence.
This section became effective October 1, 2014, and applies to probation violations occurring on or after that date. (JPP)
Allow the Commissioner of Agriculture to Appoint Law Enforcement Officers to Carry Out the Law Enforcement Responsibilities of the Department of Agriculture
S.L. 2014-103, Sec. 7 (HB 366, Sec. 7). See Agriculture and Wildlife.
Allow Videoconferencing Between a Treatment Facility and a Courtroom in Inpatient Commitment Hearings
S.L. 2014-107, Part VI (SB 773, Part VI) allows interactive videoconferencing for inpatient commitment hearings between a treatment facility where the respondent is being treated and a courtroom.
This section became effective August 6, 2014. (KQT)
Furnishing Tobacco Products, Including Vapor Products, to Inmates
S.L. 2014-115, Sec. 23 (HB 1133, Sec. 23) authorizes local confinement facilities to give or sell vapor products or FDA-approved tobacco cessation products, including over-the-counter Chapter 6 Courts, Justice, and Corrections
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nicotine replacement therapies such as gum, patches, and lozenges, to inmates while in the custody of the local confinement facility.
This section becomes effective December 1, 2014, and applies to offenses committed on or after that date. (KQT)
Send Expunction Order to State Bureau of Investigation
S.L. 2014-115, Sec. 27 (HB 1133, Sec. 27) provides that the clerk of superior court must send a certified copy of an order expunging a conviction to the State Bureau of Investigation (SBI) and requires the SBI to forward the order to the Federal Bureau of Investigation.
This section becomes effective December 1, 2014, and applies to petitions filed on or after that date. (KQT)
Add Retired Qualified Correctional Officers/Course Exemption
S.L. 2014-119, Sec. 7 (HB 369, Sec. 7) adds retired qualified correctional officers to the persons exempt from taking an approved firearms safety and training course in order to obtain a concealed handgun permit.
This section became effective September 18, 2014. (SLS)
For summaries of additional provisions of S.L. 2014-119 (H369), see the Criminal Law and Procedure and State Government Chapters.
Courts
Verification/Jurisdiction in Juvenile Cases
S.L. 2014-16 (HB 1103). See Children and Families.
Statutory Changes Related to the Disposition of Settlement Funds
S.L. 2014-100, Sec. 6.6 (SB 744, Sec. 6.6). See State Government.
Regulation of Unmanned Aircraft Systems
S.L. 2014-100, Secs. 7.11 and 34.30 (SB 744, Secs. 7.11 and 34.30 ). See Criminal Law and Procedure.
Compensation of Court Reporters
S.L. 2014-100, Sec. 18B.3 (SB 744, Sec. 18B.3) amends a provision in the Appropriations Act of 2013 which directed the Administrative Office of the Courts (AOC) to study deployment of court reporters and directed the AOC to report its findings and recommendations to the Joint Legislative Oversight Committee on Justice and Public Safety (Committee) by February 1, 2014. The amendments make the February 1, 2014 report an interim report, and direct the AOC to make a final report of its findings and recommendations to the Committee and the General Assembly by January 1, 2015.
This section became effective July 1, 2014. (PL) Chapter 6 Courts, Justice, and Corrections
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Training for Superior and District Court Judges
S.L. 2014-100, Sec. 18B.5 (SB 744, Sec. 18B.5) mandates that the School of Government at the University of North Carolina at Chapel Hill, in cooperation with various groups including the State Crime Laboratory, ensure that the continuing judicial education programs coordinated by the School of Government incorporate content related to proper custody and handling of biological evidence, including relevant information about the work of the State Crime Laboratory. The topic must also be addressed in continuing legal education programs for superior and district court judges on a regular basis.
This section became effective July 1, 2014. (KQT)
Abolish Four Special Superior Court Judgeships/Provide for Two Additional Business Court Judges/Procedure for Nomination and Confirmation of Special Superior Court Judges
S.L. 2014-100, Sec. 18B.6 (SB 744, Sec. 18B.6) abolishes four existing special superior court judgeships upon the retirement, resignation, removal from office, death, or expiration of the term of the incumbent judge, and creates two new special superior court judgeships with the intention that they be designated as business court judges by the Chief Justice. The two new judgeships are created upon the abolition of two of the four existing judgeships as specified in this section. Effective September 1, 2014, all special superior court judgeships will be filled through a confirmation process in which the Governor nominates a potential judge and the General Assembly confirms or rejects the nominee. If the Governor fails to submit a nominee within a specified period of time, the judgeship will be filled by enactment of a bill.
Except as otherwise provided, this section became effective July 1, 2014. (SD)
Allocation of Assistant District Attorneys
S.L. 2014-100, Sec. 18B.7 (SB 744, Sec. 18B.7) provides that the Administrative Office of the Courts' report to the General Assembly regarding recommendations for the allocation of assistant district attorneys for the upcoming fiscal biennium must include the workload formula established through the National Center for State Courts on which each recommended allocation is based. This section also clarifies that the number of assistant district attorneys allocated to each district attorney is developed by the General Assembly after consulting the workload formula established through the National Center for State Courts.
This section became effective July 1, 2014. (KQT)
Authorize the Court to Assess a Fee for the Costs of the Services of a Private Hospital Performing Toxicological Testing for a Prosecutorial District
S.L. 2014-100, Sec. 18B.14 (SB 744, Sec. 18B.14) requires the district or superior court judge to order payment of $600 in cases where, as part of a defendant's conviction, a private hospital under contract with a prosecutorial district has performed toxicological testing for the presence of alcohol or controlled substances. The $600 cost can be assessed only if the court finds that the work performed by the local hospital is the equivalent of the same kind of work performed by the North Carolina State Crime Laboratory. This section also requires the district or superior court judge, upon conviction of the defendant, to order payment of $600 for the services of an expert witness who is employed by a private hospital performing toxicological testing under Chapter 6 Courts, Justice, and Corrections
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contract with a prosecutorial district and who completes a chemical analysis and provides testimony about that analysis in a defendant's trial. The cost can be assessed only in cases in which the expert witness provides testimony about the chemical analysis in the defendant's trial and can be in addition to any cost assessed for the private hospital's toxicological testing.
This section becomes effective December 1, 2014, and applies to fees assessed or collected on or after that date. (KQT)
Three-Judge Panel to Rule on Claims that an Act of the General Assembly is Facially Invalid on the Basis that the Act Violates the North Carolina Constitution or Federal Law
S.L. 2014-100, Sec. 18B.16 (SB 744, Sec. 18B.16). See Civil Law and Procedure.
Business Court Modernization
S.L. 2014-102, Secs. 1 through 5 (SB 853, Secs. 1 through 5) make the following changes to the law relating to the North Carolina Business Court:
 Provides a direct appeal to the Supreme Court from final judgments and appealable interlocutory orders of a Business Court Judge. This provision became effective October 1, 2014, and applies to actions designated as mandatory complex business cases on or after that date.
 Requires Business Court Judges to issue a written opinion with orders granting or denying motions to dismiss, motions for summary judgment, motions for a new trial, motions for relief from a judgment, or any order finally disposing of a complex business case other than orders affecting a settlement agreement or jury verdict.
 Modifies the procedures for designating cases to be heard by the Business Court, revises the categories of cases that may be so designated, and requires certain categories of cases to be so designated. This provision became effective October 1, 2014, and applies to actions commenced or petitions filed on or after that date.
 Increases the filing fee for complex business court cases from $1,000 to $1,100, and makes this a court cost that is assessable or recoverable in civil actions. This provision became effective October 1, 2014, and applies to actions commenced or petitions filed on or after that date.
 Requires the Administrative Office of the Courts to submit a semiannual report to each member of the General Assembly containing the following information, together with any explanation provided by the Business Court: the number of Business Court cases pending for more than three years; the number of motions pending for more than six months; and cases in which bench trials have been concluded for more than six months without entry of judgment.
Except as otherwise provided, these sections became effective August 6, 2014. (BP)
Grounds for Dismissal of Summary Ejectment Appeal
S.L. 2014-115, Sec. 19 (HB 1133, Sec. 19) allows a plaintiff to serve a motion to dismiss an appeal in a summary ejectment action if the defendant failed to comply with any obligation set forth in the bond, and clarifies that if a defendant is not required to make a payment, failure to pay may not be used by the court as a basis to dismiss the appeal.
This section became effective October 1, 2014, and applies to all actions for summary ejectment filed on or after that date. (BP) Chapter 6 Courts, Justice, and Corrections
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Powers of Magistrates/Open Burning Offenses
S.L. 2014-115, Sec. 20 (HB 1133, Sec. 20) adds misdemeanor or infraction cases involving open burning offenses to the list of cases for which a magistrate may accept written appearances, waivers of trial or hearing and pleas of guilty or admission of responsibility, and to enter judgment and collect fines, penalties, and costs.
This section became effective August 11, 2014. (PL)
Disposition of Seized Firearms
S.L. 2014-115, Sec. 24.5 (HB 1133, Sec. 24.5) amends the statute dealing with disposition of seized firearms when those firearms are no longer being used in a criminal trial by removing the requirement that the court receive a written request from a law enforcement agency before the court may order the firearm turned over to the agency.
This section became effective August 11, 2014. (EC)
Clarify Procedure for Subpoenas to Investigate Financial Exploitation of Disabled and Older Adults
S.L. 2014-115, Sec. 44 (HB 1133, Sec. 44) clarifies the procedures for obtaining and challenging a subpoena to investigate the financial exploitation of disabled and older adults by specifying the following procedures: (i) an investigating entity may obtain a subpoena by filing a petition in district court; (ii) a financial institution may challenge the subpoena by filing a motion based on specified grounds; and (iii) court records of the proceedings are not public documents and must be maintained accordingly.
This section became effective August 11, 2014, and applies to petitions for a subpoena filed on or after that date. (BK)
Remote Testimony by Forensic and Chemical Analysts
S.L. 2014-119, Sec. 8 (HB 369, Sec. 8) authorizes forensic and chemical analysts to testify from a remote location by video transmission if all of the following conditions are met:
 The State has provided a copy of the report to the defendant's attorney or to the defendant if the defendant has no attorney.
 The State notifies the defendant's attorney, or the defendant if the defendant has no attorney, at least 15 business days before the proceeding at which the evidence would be used of its intention to use remote testimony.
 The defendant's attorney, or the defendant if the defendant has no attorney, fails to file a written objection with the court, with a copy to the State, at least five business days before the proceeding at which the testimony will be presented that the defendant objects to the introduction of remote testimony.
This section became effective September 1, 2014, and applies to testimony admitted on or after that date. (SLS)
For summaries of additional provisions of S.L. 2014-119 (H369), see the Criminal Law and Procedure and State Government Chapters. Chapter 6 Courts, Justice, and Corrections
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Studies
Status Reports Filed by Corporations or Disinterested Public Agents Serving as Guardians for Incompetent Wards
S.L. 2014-100, Sec. 12D.4 (SB 744, Sec. 12D.4). See Health and Human Services.
Report on Treatment for Effective Community Supervision Program
S.L. 2014-100, Sec. 16C.7 (SB 744, Sec. 16C.7) requires the Division of Adult Correction of the Department of Public Safety, to include the following information in its annual report on the Treatment for Effective Community Supervision program:
 The amount of any funds carried over from the previous fiscal year.
 Data on each program's utilization, capacity, and completion rates.
 The educational progress and employment status of people who received services.
This section became effective July 1, 2014. (KQT)
Study 340B Drug Pricing Opportunities
S.L. 2014-100, Sec. 16C.13 (SB 744, Sec. 16C.13) requires the Division of Adult Correction of the Department of Public Safety (DPS), in conjunction with the University of North Carolina Health Care System, to study opportunities for the State to obtain savings under the federal 340B Drug Pricing Program on drugs provided to prisoners in State correctional facilities. DPS must report the results of the study by December 1, 2014, to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety and to the General Assembly.
This section became effective July 1, 2014. (KQT)
Final Report on Criminal Case Information System
S.L. 2014-100, Sec. 18A.2 (SB 744, Sec. 18A.2) amends the date on which the report due on the development and implementation of a component of the criminal case information system to be used by public defenders from March 1, 2015, to July 1, 2015, to the Joint Legislative Oversight Committee on Justice and Public Safety and the Appropriations Subcommittee on Justice and Public Safety.
This section became effective July 1, 2014. (EC)
Amend Various Provisions Requiring Reports on the Operations of the Courts
S.L. 2014-100, Sec. 18B.1 (SB 744, Sec. 18B.1) makes changes to reporting requirements dealing with operations of the courts, including the following:
 Provides that the Court Information Technology Fund report is due annually by August 1 of each year to the Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety and the General Assembly. The report must include amounts credited and expended in the preceding fiscal year (was preceding six months). Chapter 6 Courts, Justice, and Corrections
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 Provides that the North Carolina Innocence Inquiry Commission must submit its report annually by February 1 of each year (was beginning January 1, 2008 and annually thereafter).
 Deletes the requirement that all community mediation centers must report annually to the Mediation Network of North Carolina on the program's funding and activities.
 Recodifies provisions dealing with the annual report on Business Court activities.
 Provides that the Office of Indigent Services must report to the Joint Legislative Oversight Committee on Justice and Public Safety and the General Assembly by February 1 of each year on: the volume and cost of cases handled by public defenders and assigned counsel, actions to improve the cost effectiveness of indigent defense services, and recommendations in changes to the law or funding procedures.
 Clarifies that the Office of Indigent Defense Services' requests for proposals from private law firms or not-for-profit organizations to provide for indigent clients must be issued to the Joint Legislative Oversight Committee on Justice and Public Safety and the General Assembly by October 1 of each year.
This section became effective July 1, 2014. (BK)
Annual Report on Criminal Court Cost Waivers
S.L. 2014-100, Sec. 18B.2 (SB 744, Sec. 18B.2) requires the Administrative Office of the Courts (AOC) to aggregate criminal court cost waivers by the district in which the waiver or waivers were granted and by the name of each judge granting a waiver or waivers when the AOC makes its annual report to the General Assembly on waivers of criminal court costs.
This section became effective July 1, 2014. (KQT)
Report on Family Court Programs
S.L. 2014-100, Sec. 18B.4 (SB 744, Sec. 18B.4) makes a report on family court programs by the Administrative Office of the Courts an annual requirement.
This section became effective July 1, 2014. (WGR)
Clerk of Court Report of Disqualifying Conditions for Pistol Purchase Permit to National Instant Criminal Background Check System
S.L. 2014-115, Sec. 23.5 (HB 1133, Sec. 23.5) amends a requirement that when clerks of court receive notice of a matter that would disqualify a person from obtaining a pistol purchase permit, the clerk must transmit that information, within 48 hours of receiving it, to the National Instant Criminal Background Check System (NICS). The requirement was enacted in 2013 and became effective July 1, 2014. The Administrative Office of the Courts (AOC) reported feasibility issues with the reporting requirement as it was originally written. This section amends the requirement to require clerks to transmit only the information that it determines can practicably be transmitted to NICS. The effective date of the reporting requirement is also delayed until January 1, 2015. This section requires AOC to report to the Joint Legislative Oversight Committee on Justice and Public Safety by October 1, 2014, on its findings and recommendations regarding what information can practically be transmitted to NICS by the clerks.
The part of this section that delays the effective date for the reporting requirement became effective July 1, 2014. The amendment to the reporting requirement becomes effective January 1, 2015. The remainder of the section became effective August 11, 2014. (WGR) Chapter 7 Criminal Law and Procedure
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Chapter 7
Criminal Law and Procedure
Brenda J. Carter (BJC), Chris Saunders (CS),
Kelly Quick Tornow (KQT), Susan Sitze (SLS)
Enacted Legislation
Sex Offender/Expand Residential Restrictions
S.L. 2014-21 (HB 777) amends the residential restriction that prohibits a person required to register as a sex offender from residing within 1,000 feet of a site where a school or child care center is located. The act specifies that for purposes of the residential restriction, child care centers include permanent locations of organized clubs of Boys and Girls Clubs of America.
This act became effective June 24, 2014, and applies to all persons registered or required to register on or after that date. This act does not apply to a person who has established a residence prior to the effective date of this act in accordance with applicable law. (BJC)
Background Checks for Firefighters
S.L. 2014-27, Secs. 1 and 2 (HB 698, Secs. 1 and 2). See Labor and Employment.
Regulation of Unmanned Aircraft Systems
S.L. 2014-100, Secs. 7.11 and 34.30 (SB 744, Secs. 7.11 and 34.30 ) regulate the use of unmanned aircraft systems.
Vehicle Management. – Effective July 1, 2014, amends a provision of the 2013 budget which prohibited the operation or procurement of an "unmanned aircraft system" by any State or local governmental entity without the approval of the State Chief Information Officer until July 1, 2015, by extending that requirement until December 31, 2015.
General Prohibitions and Civil Cause of Action. –
 "Unmanned aircraft" is defined as an aircraft operated without the possibility of human intervention from within or on the aircraft and that does not meet the definition of model aircraft. A UAS is the unmanned aircraft and any associated elements that are used to communicate with or control the unmanned aircraft.
 Any person, entity, or State agency is prohibited from using a UAS to:
 Conduct surveillance of (i) a person or a dwelling occupied by a person and that dwelling's curtilage without the person's consent or (ii) private real property without the consent of the owner, easement holder, or lessee of the property.
 Photograph an individual, without the individual's consent, for the purpose of publishing or otherwise publicly disseminating the photograph. This prohibition does not apply to newsgathering, newsworthy events, or events or places to which the general public is invited.
 Exceptions are provided to the aforementioned prohibitions to allow law enforcement to use UAS in the following instances:
 To counter a high risk of a terrorist attack.
 To conduct surveillance in an area within the officer's plain view.
 Pursuant to a search warrant. Chapter 7 Criminal Law and Procedure
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 To prevent imminent danger to life or serious damage to property, to forestall the imminent escape of a suspect or the destruction of evidence, to conduct pursuit of an escapee or suspect, or to facilitate the search for a missing person.
 To photograph gatherings to which the general public is invited on public or private land.
 The use of infrared or other thermal imaging technology is restricted to use for specific purposes.
 Any person who is the subject of unwarranted surveillance or whose photograph was taken in violation of these sections has a civil cause of action against any person, entity or State agency that conducts surveillance or takes photographs. In lieu of actual damages, a person whose photograph is taken may elect to recover $5,000 for each photograph or video that is published or otherwise disseminated, as well as reasonable costs and attorneys' fees and injunctive or other relief as determined by the court.
 Evidence obtained in violation of the prohibitions is not admissible in a criminal prosecution except when obtained under an objectively reasonable, good-faith belief that the actions were lawful.
 Neither State nor private property may be used to launch or recover a UAS without consent, and local governments are given authority to regulate the use of their property for UAS launch and recovery.
These sections became effective October 1, 2014, and apply to acts occurring on or after that date.
Criminal Offenses. –
 Creates a new statute to clarify that crimes committed by use of UAS in airspace in this State are governed by the laws of this State, and conduct by a UAS constitutes a crime by the owner of the UAS.
 Creates the following criminal offenses:
 Class E felony for use or possession of a UAS that has a weapon attached.
 A Class 1 misdemeanor for use of a UAS to fish or hunt.
 A Class H felony for use of a UAS to interfere with, damage, or disrupt a manned aircraft.
 A Class A1 misdemeanor to publish or disseminate recorded images taken using a UAS with infrared or other thermal imaging and revealing individuals, materials, or activities inside of a structure without consent of the property owner.
 A Class 1 misdemeanor for using a UAS to interfere with the lawful taking of wildlife or harass wildlife in order to disrupt the lawful taking of wildlife.
These sections become effective December 1, 2014, and apply to offenses committed on or after that date.
Operation and Licensing of Unmanned Aircraft Systems. –
 Requires the Division of Aviation (Division) of the Department of Transportation to develop a knowledge and skills test for operating a UAS for commercial purposes.
 Requires any agent or agency of the State, or a political subdivision, to complete the test in order to operate a UAS for any purpose and prohibits any operation of a UAS by those persons until the knowledge and skills test has been implemented.
 Requires the Division to develop a licensing system for commercial operation of UAS and sets forth basic requirements for licensure.
 Requires the Division to ensure the licensing system complies with any Federal Aviation Administration (FAA) guidelines, when issued, and to implement the licensing system within 60 days of the FAA lifting the ban on commercial operation.
These sections became effective August 7, 2014. (SLS) Chapter 7 Criminal Law and Procedure
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Criminal Law Changes
S.L. 2014-119, Secs. 1, 2, 3, 5, 6, and 9 through 12 (HB 369, Secs. 1, 2, 3, 5, 6, and 9 through 12) make changes to various criminal laws.
Modify Expunctions. – This section amends the statute controlling expunction after 15 years to prohibit the expunction of felony breaking and entering offenses or an attempt to commit any offense for which expunction of the actual offense could not be granted. This section becomes effective December 1, 2014, and applies to petitions filed on or after that date, but petitions filed prior to that date are not abated by this act.
Conditional Discharge Authorized. – This section creates statutory authorization for the use of conditional discharge for certain offenses. This section becomes effective December 1, 2014.
Possession of Marijuana Paraphernalia/Class 3 Misdemeanor. – This section creates a separate offense for possession of marijuana drug paraphernalia, punishable as a Class 3 misdemeanor. This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.
Penalties for Inmates' Possession of Cell Phones. – This section amends the criminal penalties related to inmates and cell phones. The penalties for giving an inmate of a State prison or local confinement facility a cell phone and possession of a cell phone by an inmate of a local confinement facility are increased from a Class 1 misdemeanor to a Class H felony. This section creates a Class H felony for possession of a cell phone by an inmate in a State prison. This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.
Assault or Threat by an Inmate. – This section creates Class I felonies for assaulting a person, knowingly and willfully making a threat to inflict serious bodily injury upon or kill another person, or mailing any document containing a threat to inflict serious bodily injury or to kill any person when those actions are taken as retaliation against any legislative officer, executive officer, or court officer because of the exercise of that officer's duties. This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.
Detention Officers Authorized to Carry Weapons on Campus. – This section authorizes detention officers employed by and authorized by the sheriff to carry firearms on educational property when acting in the discharge of their official duties. This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.
Clarify Definition of Firearm in Certain Counties. – This section provides that air rifles, air pistols, and BB guns are not included in the definition of "dangerous firearms" in relation to the prohibition on providing dangerous firearms to young children in Anson, Caswell, Chowan, Cleveland, Cumberland, Harnett, Stanly, and Surry Counties. This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.
Proper Implementation of Expunction Laws. – This section amends the statute authorizing expunction of certain felonies after 15 years by repealing the requirement that fingerprints not be removed from the database. This section became effective September 18, 2014 and applies to expunctions issued pursuant to this change before, on, or after that date.
Penalties for Second Offense of Carrying Concealed Firearm. – This section increases the penalty for a second or subsequent offense of carrying a concealed weapon that is a firearm from a Class I felony to a Class H felony. This section also clarifies that a concealed carry permit holder cannot be charged under this statute for simply not having their permit on their person. This section becomes effective December 1, 2014, and applies to offenses committed on or after that date.
For summaries of additional provisions of S.L. 2014-119 (H369), see Courts, Justice, and Corrections and State Government. (SLS)
Chapter 7 Criminal Law and Procedure
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North Carolina Farm Act of 2014
Add Agricultural Facilities to First Degree Trespass
S.L. 2014-103, Sec. 10 (HB 366, Sec. 10) amends the statute for first degree trespass to provide that trespassing in an agricultural facility is a first degree trespass.
This section becomes effective December 1, 2014, and applies to offenses committed on or after that date. (CS)
Require Written Consent to Operate All Terrain Vehicles on Private Property
S.L. 2014-103, Sec. 11 (HB 366, Sec. 11) requires a person, before operating a motorized all terrain vehicle on property not owned by the person, to obtain written consent from the owner of the property. A person given written consent is owed the duty of care that a trespasser would be owed.
This section becomes effective December 1, 2014, and applies to offenses committed on or after that date. (CS)
Technical and Other Corrections
Clarify Pseudoephedrine Possession Penalty
S.L. 2014-115, Sec. 41 (HB 1133, Sec. 41) clarifies language enacted in the 2013 methamphetamine law to ensure that the appropriate criminal penalty is applied to possession of pseudoephedrine by a person with a prior conviction for the possession or manufacture of methamphetamine.
This section became effective October 1, 2014, and applies to offenses committed on or after that date. (SLS)
Repeal Local Firearm Disposition Law
S.L. 2014-115, Sec. 61 (HB 1133, Sec. 61) repeals the portion of a 1965 law that states that the statute regulating confiscating and disposing of deadly weapons does not apply to five counties – Harnett, Pamlico, Perquimans, Scotland, and Warren. The pre-1965 statute continues to apply in those counties, thereby making the statute a uniform state law.
This section became effective August 11, 2014. (SLS)
Habitual Driving While Impaired Restoration Petition After 10 Years
S.L. 2014-115, Sec. 61.5 (HB 1133, Sec. 61.5). See Transportation. Chapter 7 Criminal Law and Procedure
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Regulatory Reform Act of 2014
Clarifying Changes to Statutes Pertaining to the Management of Venomous Snakes and Other Reptiles
S.L. 2014-120, Sec. 39 (SB 734, Sec. 39) clarifies that the North Carolina Museum of Natural Sciences, the North Carolina Zoological Park, or a designated representative must euthanize seized venomous reptiles when a United States Food and Drug Administration-approved antivenin is not readily available and the species is not protected under the federal Endangered Species Act of 1973.
This section became effective September 18, 2014. (KQT)
Statewide Venus Flytrap Penalties
S.L. 2014-120, Sec. 52 (SB 734, Sec. 52) creates a Class F felony for stealing a Venus flytrap plant. This section also makes statewide a current law providing that stealing certain wild plants is a Class 3 misdemeanor with a fine of between $10 and $50 in designated counties and increases the fines for the first offense and subsequent offenses to between $75 and $175.
This section becomes effective December 1, 2014 and applies to offenses committed on or after that date. (KQT) Chapter 7 Criminal Law and Procedure
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Chapter 8 Education
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Chapter 8
Education
Denise Huntley Adams (DHA), Dee Atkinson (DA), Drupti Chauhan (DC),
Kara McCraw (KM), Patsy L. Pierce (PLP)
Enacted Legislation
Public Schools
Omnibus Tax Law Changes: Prepaid Meal Plans
S.L. 2014-3, Part IV (HB 1050, Part IV). See Finance.
Clarify Read to Achieve/School Performance Grades
S.L. 2014-5 (HB 230), as amended by S.L. 2014-115, Sec. 49.5 (HB 1133, Sec. 49.5), makes various changes to the statutes governing the Read to Achieve Program, Advanced Courses, and School Performance Grades, including the following:
Read to Achieve. –
 Directs the State Board of Education (SBE) to (i) provide several valid and reliable alternative assessments of reading comprehension to local school administrative units (LEAs), (ii) approve alternative assessments submitted by LEAs, and (iii) establish achievement level ranges for each approved alternative assessment.
 Clarifies that the student reading portfolio must be compiled during the first half of the school year and that a single piece of evidence may be used to show mastery of up to two standards.
 Provides that reading camps will be provided for at least 72 hours over a period of no less than 3 weeks.
 Requires the kindergarten entry assessment to yield both qualitative and quantitative data in the five essential domains of school readiness.
 Clarifies the good cause exemption from mandatory retention by specifying school years of English instruction for Limited English Proficient students, and a two year delay in educational performance or a two year history of intensive reading intervention for a student with an individualized education program.
 Provides flexibility as to when an alternative assessment may be administered and allows LEAs to develop their own student reading portfolio process, which must be approved by the SBE.
 Clarifies that parents or guardians make the final decision regarding a retained student's participation in a reading camp and that LEAs must provide at least one opportunity for students not participating in a reading camp to demonstrate proficiency prior to being retained.
 Clarifies that a principal can promote a student when that student demonstrates proficiency, even after the midyear promotion cutoff date.
 Provides that teachers and principals must offer information sessions for parents about a student's difficulty with reading development and possibility of retention in addition to any other opportunities for discussion.
 Allows LEAs to admit reading proficient students to reading camps. The LEA may charge an enrollment fee of up to $825.
Advanced Courses. – Chapter 8 Education
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 Extends the reporting date by which the SBE must report to the Joint Legislative Education Oversight Committee on advanced courses in North Carolina from October 1, 2014, to November 15, 2014, and annually thereafter.
School Performance Scores. –
 Changes the school achievement score methodology to a composite approach to weigh each achievement element based on the number of students measured by each element.
 Clarifies that if the growth score depresses the achievement score for schools meeting expected growth, then the achievement score alone can be used to calculate performance.
 Changes the scale for calculating A to F school performance scores from a 10-point scale to a 15-point scale for the 2013-2014 school year.
The act also permits local boards of education to apply to the SBE for a waiver during
the 2014-2015 school year to add five additional testing days for end-of-course and end-of-
semester testing.
This act became effective June 10, 2014. (DHA)
Respect for Student Prayer/Religious Activity
S.L. 2014-13 (SB 370) creates new laws to address the rights of students and school personnel to engage in religious activity in schools.
Student Rights to Engage in Prayer and Religious Activity. –
The act provides that students may voluntarily do any of the following:
 Pray alone or with other students to the same extent as a student is allowed to vocally or silently reflect or speak on nonreligious matters.
 Express, speak to, and share religious viewpoints to the same extent as if they were nonreligious viewpoints.
 Possess or distribute religious literature, subject to reasonable time, place, and manner restrictions to the same extent as nonreligious literature.
 Organize prayer groups and religious gatherings before, during, and after school to the same extent as students are permitted to organize noncurricular student activities and be given the same access to school facilities.
 Express beliefs about religion in homework, artwork, and other assignments free from discrimination based on the religious content of the submission and judged by ordinary academic standards of substance and relevance.
A student may be prohibited from any of the above activities if the actions of the student would do any of the following:
 Infringe on the rights of the school to maintain order and discipline; prevent disruption of the educational process; and determine the educational curriculum and assignments.
 Harass other persons or coerce other students to participate in the activity or otherwise infringe on the rights of other persons.
Religious Activity for School Personnel. –
Local boards of education may not prohibit school personnel from participating in religious activities on school grounds that are initiated by students at reasonable times before or after the instructional day, as long as the activities are voluntary for all parties and do not conflict with the responsibilities or work assignments of the personnel. School employees supervising extracurricular activities, including coaches, may be present while a student or group of students voluntarily prays, and if they are present, must not be disrespectful and may adopt a respectful posture.
Administrative Remedies and Cause of Action for Complaints. –
Local boards of education may establish or make an existing formal grievance process available to allow students or their parents to allege that a right established under the law has been Chapter 8 Education
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violated. The formal grievance process must include the right of appeal to the local board of education. If the local board of education does not provide a formal grievance process, then a prescribed statutory process must be followed. A student who prevails in a court claim brought under this law is entitled to reasonable attorneys' fees and court costs. The Attorney General must intervene and provide legal defense for any actions that include claims challenging this law's constitutionality.
This act became effective June 19, 2014. (DHA)
Military Student Identifier
S.L. 2014-15 (HB 1060) directs the State Board of Education to develop an annual identification process for local school administrative units (LEAs) to identify military-connected students using the Uniform Education Reporting System (UERS). "Military-connected students" are students who have a parent, step-parent, sibling, or any other person who resides in the same household serving in the active or reserve components of the Armed Forces. Effective July 1, 2015, principals may use the UERS to assist in meeting the unique needs of military-connected students.
Except as otherwise provided, this act became effective June 19, 2014, with the annual identification process required beginning with the 2015-2016 academic year. LEAs may use the UERS to commence the annual identification of military-connected students beginning with the 2014-2015 academic year. (PLP)
North Carolina Economic Development Partnership Modifications: Educational Districts
S.L. 2014-18, Sec. 3.4 (HB 1031, Sec. 3.4) aligns the eight educational districts with the geographically uniform zones known as Prosperity Zones created in another section of this act, and aligns representation of the current State Board of Education with the new districts.
This section becomes effective April 1, 2015. (KM)
Clarifying Changes/Special Education Scholarships
S.L. 2014-49 (HB 712) makes numerous changes to the Special Education Scholarships for Children with Disabilities (disability scholarships) and exempts certain schools from the child care licensure requirements.
Disability Scholarships. –
 Definition Changes. – The act adds, amends, and clarifies definitions that apply to disability scholarships.
 Eligibility Changes. – The act makes the following changes to disability scholarship eligibility:
 Removes the requirement that the child with a disability have an individualized education program.
 Removes the requirement that the student be a child with a disability who receives special education or related services on a daily basis.
 Adds the requirement that the student be a child with a disability who is eligible to attend a public school in this State under the general admissions laws.
 Clarifies, among the four alternative requirements for eligibility, the following:
o The student was approved for a disability scholarship for the previous semester rather than having actually received the disability scholarship.
o The student is identified as a child with a disability before the end of the initial year of enrollment in kindergarten or first grade. If this alternative is used to meet eligibility, then the award of the disability scholarship will be Chapter 8 Education
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conditional and documentation must be provided to the State Education Assistance Authority (SEAA) before the end of the year of initial enrollment. Otherwise, no reimbursement can be awarded and the student will not meet the requirement in the following year for having been approved for a disability scholarship in the previous year.
 Individuals with Disabilities in Education Act (IDEA) Information for Parents. – The SEAA must include information on its Web site notifying parents of federal regulations under IDEA that state that a child with a disability who has been parentally placed in a private school does not have an individual right to receive some or all of the special education and related services the child would have received if enrolled in a public school.
 Costs and Reimbursements. – The act makes the following changes regarding costs and reimbursements:
 Clarifies that disability scholarships can only be awarded for reimbursement for (i) tuition; (ii) special education; (iii) related services; and (iv) educational technology.
 Provides that documentation for anticipated costs for each of these items may be submitted to SEAA before the start of a school semester for preapproval.
 Clarifies the documentation that must be provided for specific types of reimbursement.
 Exemptions from Public Records. – Effective July 29, 2013, the disability scholarships and personally identifiable information related to eligible students receiving the disability scholarships are not public records.
 Compliance Monitoring by the State Board of Education. – The State Board of Education must ensure that the local school administrative units do the following:
 Conduct timely evaluations requested by the parent of a child suspected to be a child with a disability.
 Provide reevaluations to children identified with disabilities receiving disability scholarships at the request of the parent to ensure compliance with the requirements of the disability scholarship program.
Exemption from Child Care Licensure Requirements. –
A nonpublic school that operates a child care facility for more than six and one half hours per day, but does not receive NC Pre-K or child care subsidy funding, is exempt from child care licensure requirements.
Except as otherwise provided, this act became effective July 1, 2014. The sections applying to the disability scholarships apply to grants awarded beginning with the 2014-2015 school year. (DC)
Ensuring Privacy of Student Records
S.L. 2014-50 (SB 815) requires the State Board of Education (SBE) to do all of the following:
 Create and make public a data inventory and data elements index for the student information management system (system) used for collection and reporting of student data to the SBE by local boards of education. This includes any personally identifiable student data required to be reported to the State or federal government.
 Develop rules to comply with relevant State and federal privacy laws and policies, including the federal Family Educational Rights and Privacy Act (FERPA).
 Prohibit transfer of personally identifiable student data unless otherwise allowed by law.
 Develop a data security plan for the system covering access, privacy compliance, audits, breach planning, data retention and disposition, and data security policies. Chapter 8 Education
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 Ensure ongoing compliance by the Department of Public Instruction in privacy laws, rules, and policies, including performance of compliance audits.
 Ensure contracts governing databases, assessments, or instructional supports that include student data are outsourced to private vendors have express provisions safeguarding privacy and security and include noncompliance penalties.
 Annually notify the Governor and General Assembly on new student data to be included and changes to existing data collection.
The system may not include the following items about the student or student's family: biometric information; political affiliation; religion; and voting history. Beginning with the 2014-2015 school year, and on an annual basis, local boards of education must provide parents with information on parental rights under federal and State law regarding student records and opt-out opportunities for directory information under FERPA and surveys covered by the federal Protection of Pupil Rights Amendment.
This act became effective July 1, 2014. (DC)
Replace Common Core State Standards with North Carolina's Higher Academic Standards
S.L. 2014-78 (SB 812) directs the State Board of Education (SBE) to continue to exercise its constitutional and statutory authority to adopt academic standards for the public schools, as well as conduct a comprehensive review of the English Language Arts and Mathematics academic standards, including surveying a representative sample of parents, teachers, and the public to determine if those content standards reflect the State's priorities. The SBE is prohibited from entering into agreements or contracts that would cede control of the Standard Course of Study and related assessments, but does not prohibit the use of national or international curricula, such as the Advanced Placement or International Baccalaureate programs.
The act also establishes an 11-member Academic Standards Review Commission (Commission). The Commission is directed to conduct a comprehensive review of all English Language Arts and Mathematics standards that were adopted by the SBE and, at any time prior to termination, recommend to the SBE (i) changes to the standards and (ii) reductions in high-stakes assessments aligned to the standards. The Commission is directed to consider the impact on educators, including professional development needs, when making recommendations. The Commission is directed to hold its first meeting by September 1, 2014, and to submit a final report of its findings and recommendations to the SBE, the Joint Legislative Education Oversight Committee, and the 2016 Session of the 2015 General Assembly. The Commission will terminate on December 31, 2015, or upon the filing of its final report, whichever occurs first.
The SBE is directed to continue to develop and update the North Carolina Standard Course of Study, including a review of standards in other states and national assessments aligned with those standards. The SBE must consult with the Commission prior to making any changes to the standards. The act repeals statutory references to Common Core and prohibits the SBE from purchasing or using any assessment instrument without enactment of legislation authorizing the purchase.
Local boards of education are directed to continue to provide for effective teaching of the current Standard Course of Study until the SBE issues an official notice of changes to the North Carolina Standard Course of Study.
This act became effective July 1, 2014. (DHA)
Education Lottery Funds
S.L. 2014-100, Sec. 5.2 (SB 744, Sec. 5.2). See State Government. Chapter 8 Education
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Extend the Date for School Employees to Qualify for Certain Education-Based Salary Supplements
S.L. 2014-100, Sec. 8.3 (SB 744, Sec. 8.3) provides that, beginning with the 2014-2015 school year, only the following school employees are eligible to be paid on the "M" salary schedule or receive a salary supplement for academic preparation at the six-year degree level or at the doctoral degree level:
 Certified school nurses and instructional support personnel in positions for which a master's degree is required for licensure.
 Teachers and instructional support personnel who were paid on that salary schedule or received that salary supplement prior to the 2014-2015 school year.
 Teachers and instructional support personnel who (i) complete a degree at the master's, six-year, or doctoral degree level for which they completed at least one course prior to August 1, 2013, and (ii) would have qualified for the salary supplement on June 30, 2013.
See also the Studies subheading in this chapter.
This section became effective July 1, 2014. (DHA)
State Board of Education Notification to the General Assembly of Federal Grant Applications
S.L. 2014-100, Sec. 8.9 (SB 744, Sec. 8.9) requires the State Board of Education to provide written notification to the Fiscal Research Division and the General Assembly of its intent to apply for any federal grant prior to submitting the grant application. The notice must include details about the grant and a summary of anticipated policy implications of accepting the grant.
This section became effective July 1, 2014. (DC)
Property Insurance System for Charter Schools
S.L. 2014-100, Sec. 8.10 (SB 744, Sec. 8.10) authorizes the State Board of Education to offer a system of property insurance to approved charter schools.
This section became effective July 1, 2014. (KM)
North Carolina Education Endowment Fund
S.L. 2014-100, Sec. 8.11 (SB 744, Sec. 8.11) establishes the North Carolina Education Endowment Fund (Fund) as a special fund to be used solely for differentiated teacher compensation related directly to improving student academic outcomes in the public schools. Revenue for this Fund may be generated from the sale of "I Support Teachers" special registration plates and the designation of tax refunds. Appropriate language and space must be made available on the State income tax form for the irrevocable designation of returns to be made to the Fund. The General Assembly intends to appropriate the funds to local boards of education to implement differential pay plans for highly effective classroom teachers.
This section became effective July 1, 2014, and the option to contribute tax refunds for the purposes of this section applies for taxable years beginning on or after January 1, 2014. (PLP) Chapter 8 Education
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Clarify Military Service Credit for Newly Hired Educators
S.L. 2014-100, Sec. 8.12 (SB 744, Sec. 8.12) clarifies that the State Board of Education's new rules for placing veterans on the salary pay scale based on their non-teaching work experience applies only to veterans who have not been previously employed by a public school located in North Carolina.
This section became effective July 1, 2014. (DHA)
Driver Education Funding
S.L. 2014-100, Sec. 8.15 (SB 744, Sec. 8.15) makes the following changes to driver education funding:
 Repeals a statutory provision providing for payment of expenses for the driver education program administered by the Department of Public Instruction incurred by the State from the Highway Fund based on an annual appropriation, effective July 1, 2015.
 Requires local boards of education to fund driver education courses from available funds and authorizes local boards to charge participating students a fee of up to $65 to offset costs.
 Indicates the intent of the General Assembly that, beginning with the 2015-2016 school year, the driver education program no longer be paid out of the Highway Fund, but instead be paid from funds available to local boards of education, including fees for instruction for noncredit driver education courses.
Except as otherwise provided, this section became effective July 1, 2014. (KM)
Competitive Grants to Improve After-School Services
S.L. 2014-100, Sec. 8.19 (SB 744, Sec. 8.19) directs the State Board of Education to use $5 million of the funds appropriated for the At-Risk Student Services Alternative School Allotment for the 2014-2015 fiscal year for the After-School Quality Improvement Grant Program (Program) to be administered by the Department of Public Instruction (DPI), and states the intent of the General Assembly to continue appropriating the same amount of money each year of the 2015-2017 fiscal biennium for the Program. The purpose of the Program is to pilot after-school learning programs for at-risk students that raise standards for student academic outcomes. Local school administrative units (LEAs) and nonprofits working with LEAs may participate in the Program and are eligible to receive 2-year grants of up to $500,000 a year based on the number of students served, with an option for a third year of funding. A minimum of 70% of students served by the Program must qualify for free or reduced-price meals. Grants will be matched on the basis of $3.00 in grant funds for every $1.00 in non-grant funds.
Grant recipients must report to DPI after the first year of funding on the progress of the grant, and again after the second year of funding on key performance data. DPI must provide interim reports on the grant program to the Joint Legislative Education Oversight Committee on September 15, 2015 and September 15, 2016, with a final report on the Program on September 15, 2017.
This section became effective July 1, 2014. (DHA)
Schematic Designs/Emergency Access to Schools
S.L. 2014-100, Sec. 8.20 (SB 744, Sec. 8.20) repeals a requirement that a local school administrative unit (LEA) provide schematic designs of school facilities to local law enforcement agencies if the LEA had such diagrams. This section instead requires all LEAs to provide local law enforcement agencies with schematic diagrams and emergency access to key storage devices Chapter 8 Education
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such as KNOX boxes for all school buildings. The Department of Public Instruction (DPI), along with the Department of Public Safety (DPS), must develop standards and guidelines for the preparation and content of the schematic diagrams and LEAs may use these standards in the preparation of their schematic designs.
LEAs must also provide schematic diagrams and emergency response information for the School Risk Management Plan and the School Emergency Response Plan to the Division of Emergency Management in DPS (Division). The Division must ensure that the diagrams and emergency response information are securely stored and distributed as required to first responders, emergency personnel, and school personnel and are approved by DPI.
Schematic diagrams and emergency response information are not considered public records and are not subject to inspection and examination. LEAs have until June 1, 2015, to provide the schematic diagrams.
This section became effective July 1, 2014. (DC)
National Board for Professional Teaching Standards Supplement for Instructional Coaches in Title I Schools
S.L. 2014-100, Sec. 8.21 (SB 744, Sec. 8.21) authorizes the payment of the salary supplement for National Board for Professional Teaching Standards (NBPTS) certification to an individual holding a NBPTS certification who is (i) a State-paid employee in a North Carolina public school, (ii) paid on the teacher salary schedule, and (iii) an instructional coach in a Title I school identified under the federal Elementary and Secondary Education Act of 1965.
This section became effective July 1, 2014. (KM)
Supply of Emergency Epinephrine Auto-Injectors on School Property
S.L. 2014-100, Sec. 8.23 (SB 744, Sec. 8.23) requires all public schools to maintain a supply of at least two epinephrine auto-injectors for use by trained school personnel to provide emergency medical aid to persons suffering from an anaphylactic reaction.
Principals are directed to (i) designate one or more school personnel to receive annual training on appropriate storage and emergency use of epinephrine auto-injectors and (ii) collaborate with school personnel to develop an emergency action plan for the use of epinephrine auto-injectors in an emergency. A school nurse or other trained designated school personnel is directed to obtain a non-specific prescription for epinephrine auto-injectors. This section also provides protection from civil liability to any party for any act authorized by this section or for any omission relating to this act, except in cases of gross negligence, wanton conduct, or intentional wrongdoing. The Department of Public Instruction is responsible for ensuring that charter and regional schools comply with this provision.
The North Carolina Board of Pharmacy, in consultation with the State Board of Education, is directed to adopt rules addressing the authorization for school personnel to obtain a prescription for epinephrine for emergency health situations in public schools. The rules must be adopted within 60 days of August 7, 2014.
Except as otherwise provided, this section became effective November 1, 2014. (DHA)
Opportunity Scholarship Grant Clarifications
S.L. 2014-100, Sec. 8.25 (SB 744, Sec. 8.25) makes numerous changes to the Opportunity Scholarship Grant Program (Program) that include the following:
 The State Education Assistance Authority (SEAA) must begin awarding the scholarship grants by March 15, rather than by March 1 of each year. Chapter 8 Education
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 Effective July 1, 2013, scholarship grant applications and personally identifiable information related to eligible students receiving the scholarship grants are not public records.
 Instead of a random sample of 6%, the SEAA must select and verify information on 6% of the applications annually, including those with apparent errors on the face of the application.
 Nonpublic schools that admit students receiving scholarship grants cannot discriminate with respect to race, color, and national origin.
 Nonpublic schools that admit students receiving scholarship grants must provide criminal background checks conducted for the staff member with the highest decision-making authority to the SEAA.
 The requirements that the SEAA report annually to the Department of Public Instruction on the name and number of students who receive scholarship grants for the current school year and were enrolled the prior semester in a local school administrative unit (LEA) by the previously attended LEA, and the additional requirement that the State Board of Education determine the amount of the reduction for each LEA, are repealed.
 The SEAA annual report to the Joint Legislative Education Oversight Committee on the Program is moved from March 1 to April 1.
The following changes apply only to the award of scholarship grants for the 2015 spring semester:
 The SEAA must make applications available no later than October 1, 2014, with notification of eligibility to parents as soon as practicable.
 In order to be eligible to receive a scholarship grant for the 2015 spring semester, a student must (i) reside in a household with an income level not in excess of the amount required for the student to qualify for the federal free or reduced-price lunch program and (ii) be a full-time student who has not yet received a high school diploma and is attending a public school during the 2014 fall semester.
 The SEAA must give priority in awarding scholarship grants for the 2015 spring semester to eligible students who applied for but did not receive an award for the 2014-2015 school year.
 The SEAA may develop a process for awarding scholarship grants using a random lottery system.
 Scholarship grants awarded for the 2015 spring semester may not exceed $2,100, and no scholarship grant can exceed the required tuition and fees for the nonpublic school the eligible student will attend.
 The SEAA must remit scholarship funds at least once during the 2015 spring semester for endorsement by one of the eligible student's parents or guardians.
For scholarship grant applications received for the 2014-2015 school year or the 2015 spring semester, the SEAA must select and verify no less than 3% of applications, including those with apparent errors on the face of the application. Of the funds appropriated for the scholarship grants for the 2014-2015 fiscal year, any unspent funds in the 2014-2015 fiscal year for this purpose will revert to the General Fund on June 30, 2015.
Except as otherwise provided, this section became effective August 7, 2014. (DC)
Injury Prevention and Return-to-Work Programs
S.L. 2014-100, Sec. 8.26 (SB 744, Sec. 8.26) requires the State Board of Education (SBE) to adopt models for loss prevention and return-to-work programs designed to reduce the number of injuries resulting in workers' compensation claims and to ensure injured employees return to work in accordance with SBE policy. The SBE must develop policies and procedures to ensure that local boards of education implement and comply with loss prevention and return-to-work programs based on those models. Chapter 8 Education
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This section became effective July 1, 2014. (KM)
Department of Public Instruction Response Time
S.L. 2014-100, Sec. 8.28 (SB 744, Sec. 8.28) directs staff at the Department of Public Instruction to respond to requests for information from local schools, charter schools, and regional schools within three business days of receiving the request, whenever practicable. Requests should be fully answered within 14 business days following the initial response, unless there are extraordinary circumstances.
This section became effective July 1, 2014. (PLP)
Extend Reporting for School Performance Scores and Grades
S.L. 2014-100, Sec. 8.30 (SB 744, Sec. 8.30) extends the deadline for the State Board of Education to issue the first annual report cards for school performance scores and grades from August 1, 2014, to no earlier than January 15, 2015.
This section became effective July 1, 2014. (DHA)
Annual Distribution of School Bullying/Cyber-Bullying Policies
S.L. 2014-100, Sec. 8.32 (SB 744, Sec. 8.32) requires a principal to provide the local school administrative unit's policy prohibiting bullying and harassing behavior, including cyber-bullying, to staff, students, and parents at the beginning of the school year.
Charter schools and regional schools are encouraged to adopt policies against bullying or harassing behavior, including cyber-bullying, that are consistent with the School Violence Prevention Act. If a charter school or regional school adopts such a policy, it should distribute the policy at the beginning of the school year to staff, students, and parents.
This section became effective July 1, 2014, and applies beginning with the 2014-2015 school year. (DC)
Clarify School Counselors Work Duties
S.L. 2014-100, Sec. 8.33 (SB 744, Sec. 8.33) clarifies that school counselors, in the 20% of work time they are not required to provide direct services to students, may assist other staff in the coordination of standardized testing. The section removes a requirement that, during that time, a counselor must spend adequate time on school counseling program support activities and program management operations.
The section also repeals a requirement that local boards of education develop transition plans to implement school counselor work duties within existing resources by reassignment of duties previously held by school counselors, using guidelines developed by the State Board of Education.
This section became effective July 1, 2014. (KM)
Funds for Charter School Closure
S.L. 2014-100, Sec. 8.34 (SB 744, Sec. 8.34) directs charter schools to maintain at least $50,000, in the form of several different options, for payment of expenses in the event of dissolution. Allowable options include an escrow account, a letter of credit, a bond, or a deed of trust. Charter schools may not receive State funding unless they have documentation of one of these options. Chapter 8 Education
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This section became effective August 7, 2014, and applies to any charter school submitting an application for an initial or renewal charter on or after that date. (PLP)
Virtual Charter School Pilot Program
S.L. 2014-100, Sec. 8.35 (SB 744, Sec. 8.35) directs the State Board of Education (SBE) to establish a pilot program to authorize the operation of two virtual charter schools serving students in kindergarten through twelfth grade. The SBE is directed to establish an application process for student enrollment in the selected virtual charter schools beginning with the 2015-2016 school year. The pilot program will run for four school years, ending with the 2018-2019 school year.
The virtual charter schools participating in the pilot program are subject to most of the statutes and rules applicable to traditional charter schools, with certain exceptions and additional requirements, including:
 The maximum student enrollment in a participating school is limited to 1,500 in its first year of operation and may increase by 20% a year for each school, up to a maximum of 2,592 in the fourth year of the pilot.
 The maximum overall ratio of teachers to students in grades kindergarten through eighth grade is 1:50, and for ninth through twelfth grade is 1:150.
 Enrolled students who fail to participate may be withdrawn pursuant to notification requirements and protocols adopted by the virtual charter school.
 The participating schools must maintain an administrative office in North Carolina, as well as at least one testing center or meeting place in each of the eight education districts where participating students reside.
 If the school contracts with a third-party for the provision of administrative staff, such staff fulfilling the equivalent positions of superintendent, principal, or business officer must be North Carolina residents.
 All teaching staff must carry the appropriate State certification to instruct courses, and at least 90% of the teaching staff must reside in the State.
 Participating schools must have a withdrawal rate below 25%.
 Participating schools must ensure that each student is assigned a learning coach.
Virtual charter schools participating in the pilot program that are successful in meeting these requirements are eligible to be approved by the SBE without additional application requirements for a charter. Virtual charter schools participating in the pilot program that do not meet these requirements are subject to certain consequences, including the termination of the pilot. The program receives funding in the same way as other charter schools in the State, but does not qualify for State allocations for low-wealth counties supplemental funding and small county supplemental funding. Local funding is limited to no more than $790 per pupil.
The SBE is required to report to the Joint Legislative Education Oversight Committee by November 15, 2016, on the initial implementation of the pilot program, and again by November 15, 2018, on findings from three years of operation of the pilot program.
This section became effective July 1, 2014. (DHA)
Clarify Regional School Cooperative Innovative High School Applications
S.L. 2014-100, Sec. 8.36 (SB 744, Sec. 8.36) provides that regional schools applying to become cooperative innovative high schools (i) are not capped at 100 students per grade level and (ii) do not have to be located on the campus of the partner institution of higher education, regardless of whether a formal resolution waiving the campus location is adopted.
The section designates the Northeast Regional School of Biotechnology and Agriscience as a cooperative innovative high school. In order to maintain this designation beyond the 2014-Chapter 8 Education
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2015 school year, the board of directors of the Northeast Regional School of Biotechnology and Agriscience must apply for approval as a cooperative innovative high school program.
This section became effective July 1, 2014. (DC)
Lease Purchase or Installment Purchase Contracts to Purchase Athletic Lighting
S.L. 2014-100, Sec. 8.38 (SB 744, Sec. 8.38) authorizes local boards of education to purchase or finance the purchase of athletic lighting by lease purchase contracts and installment contracts.
This section became effective July 1, 2014. (KM)
Education of Children in Private Psychiatric Residential Treatment Facilities
S.L. 2014-100, Sec. 8.39 (SB 744, Sec. 8.39) provides for educational services for children placed in private psychiatric residential treatment facilities (PRTFs) by (i) allowing the sharing of information among agencies for educational purposes, (ii) requiring PRTFs to gain approval from the Department of Public Instruction (DPI) as a Nonpublic Exceptional Children's Program as a part of the facility licensure process, and (iii) establishing a process through which PRTFs may obtain State funding to provide educational services. "Educational services" are defined to include appropriate education-related assessment and instruction, including special education and related services to a child with a disability.
This section also directs the Department of Health and Human Services and DPI to submit an initial report by January 1, 2015, and annually thereafter, on the delivery of educational services in PRTFs to the Joint Legislative Education Oversight Committee and the Joint Legislative Committee on Health and Human Services.
This section became effective July 1, 2014. (PLP)
Differentiated Pay for Highly Effective Teachers
S.L. 2014-100, Sec. 8.41 (SB 744, Sec. 8.41) states the intent of the General Assembly to provide local boards of education additional State funds for local programs to provide differentiated pay for highly effective classroom teachers through funds appropriated from the North Carolina Education Endowment Fund.
Local boards of education must submit proposals to the Joint Legislative Education Oversight Committee and the General Assembly by January 15, 2015. Proposals may include performance-based salary increases for teachers rated highly effective on the North Carolina Teacher Evaluation instrument or differentiated bonuses for classroom teachers, including (i) hard-to-staff subject areas, (ii) hard-to-staff schools, (iii) assignment of additional responsibilities, or (iv) assignment as an instructional coach.
This section became effective July 1, 2014. (DHA)
Transfer of Summer Food Service Program to Department of Public Instruction
S.L. 2014-100, Sec. 12E.9 (SB 744, Sec. 12E.9). See Health and Human Services. Chapter 8 Education
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Charter School Modifications
S.L. 2014-101 (SB 793) makes various changes to the laws governing charter schools including the following:
 A teacher employed by the board of directors of a charter school to teach in the charter school may serve as a nonvoting member of that board of directors.
 The State Board of Education (SBE) must make final decisions on the approval or denial of charter applications by August 15 of a calendar year.
 Renewal charters must be for a term of 10 years unless the charter school (i) has not provided financially sound audits for the prior 3 years, (ii) yields student academic outcomes for the past 3 years that are not comparable to the academic outcomes of students in the local school administrative unit (LEA) in which the charter school is located, or (iii) is not in compliance with State or federal law, the school's own bylaws, or the provisions set forth in its charter granted by the SBE.
 Until September 1, 2015, a charter school in operation for less than three years may expand to offer one grade level higher or lower than it currently offers if (i) the student academic outcomes for the year prior to expansion are comparable to the academic outcomes of the LEA in which the charter is located, (ii) the charter has financially sound audits for the year prior to the expansion, and (iii) the charter school is in compliance with State law, federal law, the school's own bylaws, or the provisions of the charter granted by the SBE.
 A charter school may limit admission on the basis of sex if the school's mission is single-sex education.
 Priority enrollment for children of the members of the board of directors of the charter school extends beyond the initial year of operation.
 A charter school and the board of directors are subject to the Public Records Act and the Open Meetings Law. The personnel records of charter school employees directly employed by the board of directors of the charter school are subject to the public records laws in the same manner as employees of traditional public schools. Charter schools are required to use the same schedule for the retention and disposition of records that the Department of Cultural Resources establishes for LEAs.
 LEAs must provide any additional records requested by a charter school to audit and verify the calculation and transfer of the per pupil share of the local current expense fund within the 30 days allocated for transfer of local funds.
 For actions filed on or after August 6, 2014, payments from a judgment for a lawsuit between an LEA and a charter school regarding the per pupil share of the local current expense fund must be paid in full within one year from the entry of the judgment.
 By January 15, 2015, the SBE must adopt a process and rules for a competitive bid process for the assumption of a charter school that has inadequate progress and could have its charter terminated or not renewed by the SBE.
 By December 15, 2014, the SBE must adopt a process and rules for fast-track replications of high quality charter schools currently operating in the State.
 Until July 1, 2015, the Division of Motor Vehicles of the Department of Transportation, may issue permanent plates to a vehicle owned by a charter school and used only for student transportation and official activities.
This act became effective August 6, 2014, and applies beginning with the 2014-2015 school year. (PLP) Chapter 8 Education
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Dropout Prevention/Recovery Pilot Charter School
S.L. 2014-104 (HB 884) repeals the Dropout Recovery Pilot Program enacted by the General Assembly in 2011 and creates a two-year Dropout Prevention and Recovery Pilot Program (Pilot Program) to reengage students and increase graduation rates in North Carolina.
The Pilot Program requires the State Board of Education (SBE) to select one charter school whose enrollment includes only high school students who have (i) dropped out of high school or (ii) transferred from their high school to the charter school. Charter schools must apply no later than August 31, 2014, to participate in the Pilot Program, and the SBE must select the charter school by September 30, 2014.
The selected charter school must develop and implement an alternative accountability model that meets the guidelines adopted by the SBE for alternative learning programs. Funding adjustments for the selected charter school will be made on the basis of the average daily membership in the fifth month of the school year.
The SBE must report to the Joint Legislative Education Oversight Committee (JLEOC) by March 15, 2016, on the outcomes of the Pilot Program. The JLEOC must report to the 2016 Regular Session of the 2015 General Assembly on necessary legislation to transition the Pilot Program into alternative charter schools serving high school students who have dropped out of high school.
The act also requires the SBE and the Charter Schools Advisory Board to jointly report by December 15, 2014, to the General Assembly on the utilization of contracts for personnel services by local boards of education and charter school boards of directors, including both the purposes and the extent of such contracts prevalent in each local school administrative district and charter schools statewide.
This act became effective August 6, 2014. The Pilot Program will begin with the 2014-2015 school year and conclude at the end of the 2015-2016 school year. (KM)
Omnibus Election Clarifications
S.L. 2014-111 (SB 403). See State Government.
Education and Workforce Innovation Program
S.L. 2014-115, Sec. 48 (HB 1133, Sec. 48) clarifies that the North Carolina Education and Workforce Innovation Commission may award grants for new or existing projects.
This section became effective August 11, 2014. (DHA)
Public Records Exemptions
S.L. 2014-115, Sec. 49.2 (HB 1133, Sec. 49.2) states that any test developed, adopted, or provided by the State Board of Education (SB