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SUMMARIES OF SUBSTANTIVE RATIFIED LEGISLATION - 2006
SUMMARIES OF SUBSTANTIVE
RATIFIED LEGISLATION
2005 GENERAL ASSEMBLY
2006 REGULAR SESSION
RESEARCH DIVISION
N. C. GENERAL ASSEMBLY
NOVEMBER 2006
350 copies of this document were published at an estimated cost of or about $ 8.50 per
copy.
November 2006
To the Members of the 2006 Session of the 2005 General Assembly:
This publication contains summaries of all substantive legislation of general applicability
and certain local legislation having general import from the 2006 Regular Session. Most local
acts are not analyzed in this publication. Significant appropriations matters related to the
subject area specified are also 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. This year we have included in the appendix a list of the
studies and reports authorized by the 2006 General Assembly. 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: Dee Atkinson, Cindy Avrette, Brenda Carter, Drupti Chauhan, Erika Churchill,
Karen Cochrane- Brown, Judy Collier, Tim Dodge, Bill Gilkeson, George Givens, Kory Goldsmith,
Trina Griffin, Tim Hovis, Jeff Hudson, Denise Huntley, Shirley Iorio, Sara Kamprath, Jeff
Hudson, Brad Krehely, Theresa Matula, Jennifer McGinnis, Joe Moore, Jennifer Mundt, Shawn
Parker, Howard Alan Pell, Giles S. Perry, Ben Popkin, Wendy Graf Ray, Walker Reagan, Barbara
Riley, Steve Rose, and Susan Sitze. Canaan Huie, Dan Ettefagh, and Emily Johnson of the Bill
Drafting Division and Martha Walston, of the Fiscal Research Division also contributed to this
document. Jennifer McGinnis is chief editor of this year’s publication, and Hal Pell is co- editor.
Lucy Anders, Brad Krehely, and Jennifer Mundt 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 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 document is also available on the World Wide Web. Go to the General Assembly’s
homepage at http:// www. ncga. state. nc. us. Click on " Legislative Publications." It is listed under
Research. Each summary is hyperlinked to the final bill text, the bill history, and any applicable
fiscal note.
It is hoped that this document 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,
Terrence D. Sullivan
Director of Research
Guide to Staff Initials
( BC) Brenda Carter
( BG) Bill Gilkeson
( BO) Brad Krehely
( BP) Ben Popkin
( BR) Barbara Riley
( CA) Cindy Avrette
( CH) Canaan Huie
( DA) Dee Atkinson
( DE) Dan Ettefagh
( DC) Drupti Chauhan
( DH) Denise Huntley
( EC) Erika Churchill
( EJ) Emily Johnson
( GG) George Givens
( GSP) Giles S. Perry
( HAP) Howard Alan Pell
( JC) Judy Collier
( JH) Jeff Hudson
( JHM) Joe Moore
( JLM) Jennifer McGinnis
( JM) Jennifer Mundt
( KCB) Karen Cochrane- Brown
( KG) Kory Goldsmith
( MW) Martha Walston
( SI) Shirley Iorio
( SK) Sara Kamprath
( SP) Shawn Parker
( SR) Steve Rose
( SS) Susan Sitze
( TD) Tim Dodge
( TG) Trina Griffin
( TH) Tim Hovis
( TM) Theresa Matula
( WGR) Wendy Graf Ray
( WR) Walker Reagan
i
TABLE OF CONTENTS
CHAPTER 1: AGRICULTURE AND WILDLIFE...................................................... 1
ENACTED LEGISLATION .................................................................................................. 1
Agriculture ................................................................................................................ 1
Animals and Wildlife................................................................................................. 3
STUDIES........................................................................................................................ 4
Legislative Research Commission ............................................................................ 4
Referrals to Departments, Agencies, Etc. ................................................................. 5
CHAPTER 2: ALCOHOLIC BEVERAGE CONTROL............................................. 7
ENACTED LEGISLATION .................................................................................................. 7
CHAPTER 3: CHILDREN AND FAMILIES............................................................... 9
ENACTED LEGISLATION .................................................................................................. 9
STUDIES....................................................................................................................... 10
Legislative Research Commission .......................................................................... 10
New/ Independent Studies/ Commissions.................................................................. 10
CHAPTER 4: CIVIL LAW AND PROCEDURE....................................................... 11
ENACTED LEGISLATION ................................................................................................ 11
CHAPTER 5: COMMERCIAL LAW AND CONSUMER PROTECTION........... 13
ENACTED LEGISLATION ................................................................................................ 13
CHAPTER 6: CONSTITUTION AND ELECTIONS ............................................... 19
ENACTED LEGISLATION ................................................................................................ 19
CHAPTER 7: COURTS, JUSTICE, AND CORRECTIONS.................................... 29
ENACTED LEGISLATION ................................................................................................ 29
STUDIES....................................................................................................................... 33
Legislative Research Commission .......................................................................... 33
New/ Independent Studies/ Commissions.................................................................. 33
Referrals to Existing Commissions/ Committees ..................................................... 34
Referrals to Departments, Agencies, Etc. ............................................................... 34
CHAPTER 8: CRIMINAL LAW AND PROCEDURE............................................. 37
ENACTED LEGISLATION ................................................................................................ 37
CHAPTER 9: EDUCATION........................................................................................ 49
ENACTED LEGISLATION ................................................................................................ 49
Public Schools......................................................................................................... 49
Higher Education.................................................................................................... 56
Community Colleges ............................................................................................... 57
Universities ............................................................................................................. 58
ii
STUDIES....................................................................................................................... 62
New/ Independent Studies/ Commissions.................................................................. 62
Referrals to Existing Commissions/ Committees ..................................................... 63
Referrals to Departments, Agencies, Etc. ............................................................... 63
CHAPTER 10: ENVIRONMENT AND NATURAL RESOURCES........................ 67
ENACTED LEGISLATION ................................................................................................ 67
Animal Waste Management .................................................................................... 67
Climate Change ...................................................................................................... 67
Coastal Development.............................................................................................. 67
Environmental Health............................................................................................. 68
Fisheries.................................................................................................................. 69
Miscellaneous ......................................................................................................... 69
Parks and Public Spaces......................................................................................... 74
Solid/ Hazardous Waste........................................................................................... 74
Water Quality/ Quantity/ Groundwater .................................................................... 75
Renewable Energy/ Alternative Fuels...................................................................... 82
STUDIES....................................................................................................................... 83
New/ Independent Studies/ Commissions.................................................................. 83
Referrals to Existing Commissions/ Committees ..................................................... 84
Referrals to Departments, Agencies, Etc. ............................................................... 85
CHAPTER 11: FINANCE ............................................................................................ 87
ENACTED LEGISLATION ................................................................................................ 87
STUDIES....................................................................................................................... 99
Referrals to Existing Commissions/ Committees ..................................................... 99
CHAPTER 12: HEALTH AND HUMAN SERVICES ............................................ 101
ENACTED LEGISLATION .............................................................................................. 101
STUDIES..................................................................................................................... 111
Legislative Research Commission ........................................................................ 111
New/ Independent Studies/ Commissions................................................................ 111
Referrals to Existing Commissions/ Committees ................................................... 112
Referrals to Departments, Agencies, Etc. ............................................................. 113
CHAPTER 13: INSURANCE..................................................................................... 115
ENACTED LEGISLATION .............................................................................................. 115
Auto Insurance ...................................................................................................... 116
Health and Life Insurance .................................................................................... 117
Workers' Compensation/ Unemployment Insurance.............................................. 119
Miscellaneous ....................................................................................................... 120
STUDIES..................................................................................................................... 120
Legislative Research Commission ........................................................................ 120
New/ Independent Studies/ Commissions................................................................ 120
iii
CHAPTER 14: LABOR AND EMPLOYMENT...................................................... 123
ENACTED LEGISLATION .............................................................................................. 123
General Labor and Employment........................................................................... 123
Governmental Employment................................................................................... 124
STUDIES..................................................................................................................... 127
Legislative Research Commission ........................................................................ 127
New/ Independent Studies/ Commissions................................................................ 128
Referrals to Existing Commissions/ Committees ................................................... 129
CHAPTER 15: LOCAL GOVERNMENT................................................................ 131
ENACTED LEGISLATION .............................................................................................. 131
CHAPTER 16: MILITARY, VETERANS', AND INDIAN AFFAIRS .................. 135
ENACTED LEGISLATION .............................................................................................. 135
Military and Veterans' Affairs .............................................................................. 135
Indian Affairs ........................................................................................................ 136
CHAPTER 17: OCCUPATIONAL BOARDS AND LICENSING......................... 137
ENACTED LEGISLATION .............................................................................................. 137
STUDIES..................................................................................................................... 143
Referrals to Existing Commissions/ Committees ................................................... 143
CHAPTER 18: PROPERTY, TRUSTS, AND ESTATES ....................................... 145
ENACTED LEGISLATION .............................................................................................. 145
CHAPTER 19: RESOLUTIONS................................................................................ 149
Joint Resolutions................................................................................................... 149
CHAPTER 20: RETIREMENT ................................................................................. 153
ENACTED LEGISLATION .............................................................................................. 153
CHAPTER 21: SENIOR CITIZENS ......................................................................... 155
ENACTED LEGISLATION .............................................................................................. 155
STUDIES..................................................................................................................... 158
Legislative Research Commission ........................................................................ 158
Referrals to Existing Commissions/ Committees ................................................... 158
Referrals to Departments, Agencies, Etc. ............................................................. 159
CHAPTER 22: STATE GOVERNMENT................................................................. 161
ENACTED LEGISLATION .............................................................................................. 161
Agencies and Departments ................................................................................... 161
Capital Facilities and State Property ................................................................... 165
Boards, Commissions, and Committees................................................................ 166
Budget Process and Use of State Funds ............................................................... 168
Purchase and Contract ......................................................................................... 171
iv
Miscellaneous ....................................................................................................... 171
CHAPTER 23: TRANSPORTATION....................................................................... 173
ENACTED LEGISLATION .............................................................................................. 173
Department of Transportation .............................................................................. 173
Drivers Licenses.................................................................................................... 175
License Plates/ Vehicle Registration ..................................................................... 176
Motor Vehicle Law................................................................................................ 177
Toll Roads ............................................................................................................. 178
Other ..................................................................................................................... 178
STUDIES..................................................................................................................... 179
Legislative Research Commission ........................................................................ 179
New/ Independent Studies/ Commissions................................................................ 179
Referrals to Existing Commissions/ Committees ................................................... 180
Referrals to Departments, Agencies, Etc. ............................................................. 180
CHAPTER 24: UTILITIES ........................................................................................ 182
ENACTED LEGISLATION .............................................................................................. 182
STUDIES..................................................................................................................... 182
CHAPTER 25: VETOED LEGISLATION............................................................... 185
APPENDIX: STUDIES AND REPORTS AUTHORIZED BY 2005 SESSION
............................................................................ ERROR! BOOKMARK NOT DEFINED.
STUDIES & REPORTS INDEX................................. ERROR! BOOKMARK NOT DEFINED.
INDEX............................................................... ERROR! BOOKMARK NOT DEFINED.
Chapter 1 Agriculture and Wildlife
Page 1
Chapter 1
Agriculture and Wildlife
Erika Churchill ( EC), Tim Dodge ( TD), Barbara Riley ( BR)
Enacted Legislation
Agriculture
Amend Taxation of Logging Machinery
S. L. 2006- 19 ( HB 1938). See Finance.
Department of Commerce Report on Agribusiness Funds
S. L. 2006- 66, Sec. 12.7 ( SB 1741, Sec. 12.7) requires the Department of Commerce
( Department) to report by May 1, 2007, to the House Appropriations Subcommittee on Natural
and Economic Resources, the Senate Appropriations Committee on Natural and Economic
Resources, and the Fiscal Research Division, on all funds available for companies and
organizations designed to promote agribusiness in the State. The report must include:
Information on all Department economic incentive funds, including Commerce State
Aid funds.
Information on the number of agribusinesses and organizations that applied for State
funds through the Department or other organizations.
An evaluation, to be conducted with the Department of Agriculture and Consumer
Services, of the use of economic incentive programs designed specifically for
agribusiness.
A plan to implement economic incentive programs designed specifically for
agribusinesses and the estimated cost of the programs, including sources of funding
such as federal, State, and grant funds.
The Department of Agriculture and Consumer Services, the Rural Economic Development
Center, the University system, and State agencies are to provide the Department of Commerce
with information as requested for the report.
This section became effective July 1, 2006. ( BR)
Agrarian Growth Zones – Bill Lee
S. L. 2006- 66, Sec. 24.16 ( SB 1741, Sec. 24.16). See Finance.
Community Conservation Assistance Program
S. L. 2006- 78 ( HB 2129). See Environment and Natural Resources.
Enhance Embargo Authority/ Protect Food Supply
S. L. 2006- 80 ( HB 2200) authorizes the Secretary of Environment and Natural Resources
or a local health director to exercise embargo authority concerning food or drink in an establish-ment
( restaurants and hotels) subject to regulation by the Department of Environment and
Chapter 1 Agriculture and Wildlife
Page 2
Natural Resources ( DENR), or subject to an investigation by the local health director in the case
of communicable diseases. When such action
is taken, the Department of Agriculture and Consumer Services ( Department) must be
notified. It is unlawful to dispose of the embargoed food or drink without proper authority.
G. S. 130A- 25 provides that a violation of Chapter 130A of the General Statutes is a
misdemeanor. G. S. 14- 3 provides that an unclassified misdemeanor is a Class 1 misdemeanor. If
no specific punishment is prescribed and the offense is infamous, done in secrecy and malice, or
with deceit and intent to defraud, it is a Class H felony.
The act also requires the Department, DENR, and the Department of Health and Human
Services to jointly develop a plan to protect the food supply from intentional contamination.
The study required in Section 2 of the act became effective July 10, 2006. The remainder
of this act becomes effective December 1, 2006 and applies to offenses committed on or after
that date. ( BR)
Various Transportation/ Motor Vehicle Law Changes
S. L. 2006- 135 ( HB 1399). See Transportation.
Dairy Stabilization and Growth Program
S. L. 2006- 139 ( SB 1156) adds the North Carolina Dairy Stabilization and Growth Act to
Chapter 106 of the General Statutes. The purpose of the act is to establish a price floor for milk
that would enable dairy farmers to cover their production costs, and in doing so, reverse the
decline in the dairy industry in the State.
The program provides for payments from the Dairy Stabilization and Growth Fund to
North Carolina dairy farmers when the price of milk per hundredweight falls below the average
United States Department of Agriculture federal milk market order Class I price mover for the
past 10 years less 50 cents. To be eligible to receive payments, a Grade A milk producer must be
in compliance with the federal Grade A milk regulations. Non- Grade A producers must be in
compliance with Article 26 of Chapter 106 of the General Statutes and the rules implementing
that article.
The act also directs the Commissioner of Agriculture to file an annual report with the
Chairs of the House Appropriations Subcommittee on Natural and Economic Resources and the
Senate Appropriations Subcommittee on Natural and Economic Resources, the Chair of the House
Agriculture Committee and the Chair of the Senate Committee on Agriculture, Environment and
Natural Resources. The report is to cover the short- term and long- term problems of maintaining
a viable dairy industry in North Carolina, ways to sustain the dairy industry in the State, the
effectiveness of the dairy stabilization and growth program in achieving it goals, including
maintaining a local supply of fresh milk for processing and attracting new farmers into dairying
and preserving green space.
This act became effective July 19, 2006. ( BR)
State Energy Use Planning/ Energy Assistance
S. L. 2006- 206, Part III ( SB 2051, Part III). See Environment and Natural Resources.
Exempt Agri- Tourism from Privilege Tax
S. L. 2006- 216 ( HB 143). See Finance.
Chapter 1 Agriculture and Wildlife
Page 3
Revise 2006 Budget Act/ Tobacco Escrow Assignments
S. L. 2006- 221, Sec. 3A ( SB 198, Sec. 3A) adds Section 6.19( d) to the Budget Act, S. L.
2006- 66. This section amends S. L. 2006- 203, which, in part, recodified the Executive Budget Act
as Chapter 143C of the General Statutes. One section of Article 1 of Chapter 143 that should
have been transferred in the recodification, was inadvertently omitted. Section 6.19( d) adds that
section to Chapter 143C as G. S. 143C- 9.3A. The statute allows tobacco product manufacturers to
make an irrevocable assignment of funds placed in escrow pursuant to the provisions of G. S. 66-
281, which require tobacco product manufacturers that did not participate in the Master Settle-ment
Agreement to place funds in escrow based upon cigarette sales in the State.
This section became effective July 1, 2006. ( BR)
Animals and Wildlife
Protection of Animals
S. L. 2006- 113 ( HB 2098) amends Article 1 of Chapter 19A of the General Statutes, which
provides a civil remedy for animal cruelty. The act clarifies that when a preliminary injunction is
issued giving the plaintiff possession of an animal, the plaintiff takes possession as custodian. As
custodian, the plaintiff may obtain veterinary care for the animal. The plaintiff must attempt to
consult with the defendant regarding such care; however, the plaintiff does not need the
defendant's consent to act. Plaintiff, however, may not have an animal euthanized without the
written consent of the defendant, or a court order upon findings that the animal is terminally ill
or injured. If the plaintiff prevails in the civil action, the court may include the costs of care for
the animal as part of the costs allowed to the plaintiff.
The act also amends Article 6 of Chapter 19A of the General Statutes, which provides for
the care of animals that have been used illegally. The law requires the owner of an animal that
has been taken into custody in connection with an arrest for cruelty, violation of the dangerous
dog statutes, or the commencement of a civil action by a county or municipality for cruelty, to
deposit funds for the animal's care if an animal shelter takes custody of the animal pending
disposition of the case. The amendment also provides for a hearing to determine the need to
take the animal into custody during the pendency of the litigation. A person who is acquitted of
charges, or found not to have committed animal cruelty in a civil action, is entitled to a refund of
the deposit remaining after any withdrawals from the deposit.
Finally, the act amends the dog fighting criminal statute to provide that it applies to
fights between dogs and other animals, as well as fights between two or more dogs. The law,
however, does not prohibit the use of dogs in the lawful taking of animals under the jurisdiction
of the Wildlife Resources Commission.
This act becomes effective December 1, 2006 and applies to actions commenced on or
after that date. ( BR)
Amend Boating Safety/ Vessel Titling Law
S. L. 2006- 185 ( SB 948) makes the following changes to the laws related to boating
safety and vessel titling:
Fee Increases. -
Increases the fee for a transfer of certificate of title from $ 10 to $ 20.
Increases the fee for issuance of a duplicate certificate of number from $ 2 to $ 5.
Boating Safety. -
Formalizes the framework for the Wildlife Resources Commission ( WRC) to
implement and coordinate boating safety education courses, to designate boating
Chapter 1 Agriculture and Wildlife
Page 4
safety instructors, and to issue boating safety certification cards to persons who
complete an approved course.
Clarifies boating safety requirements by authorizing the WRC to adopt rules to
conform to the Federal Boat Safety Act of 1971 and federal regulations adopted
pursuant to the Act.
Amends the incident reporting requirements for operators of a vessel that is involved
in a collision, accident, casualty or other occurrence involving a vessel to require
reporting of disappearance indicating death or injury, in addition to other reporting
requirements, and to raise the physical damage threshold for reporting accidents
from $ 500 to $ 2,000.
Provides that law enforcement vessels may use a blue flashing light and sirens
whenever they are engaged in law enforcement or public safety activities. Establishes
penalties for operating a siren or blue light on a vessel that is not a law enforcement
vessel or other official emergency vessel.
Requires a vessel to slow to a no- wake speed when passing near a law enforcement
vessel that is displaying a flashing blue light.
Vessel Titling. -
Requires the titling of all motorized vessels or sailboats 14 feet or longer and any
personal watercraft at the time an application for a new certificate of number in this
State is submitted and at the time ownership of a vessel is being transferred. The act
also allows ( but does not require) the titling of other vessels.
Replaces the term " vessel registration" with " certificate of number" as used to
provide identification numbers for vessels registered in the State. A certificate of
number is issued on an annual basis and serves as a registration number for vessels.
Establishes a mechanism for canceling the certificate of title or certificate of number
for destroyed or junked vessels and directs WRC to adopt rules to establish a
mechanism by which a person may acquire ownership of an abandoned vessel.
Clarifies the responsibilities and requirements for vessel agents, removes the
requirement that vessel agents provide a security bond, and adds penalty provisions
for actions taken by vessel agents that constitute criminal activity.
Makes numerous additional clarifying, conforming, and technical changes.
This act becomes effective January 1, 2007, and applies to offenses committed on and
after that date. ( TD)
Amend Environment and Natural Resources Laws
S. L. 2006- 255, Secs. 6, 8, and 9 ( SB 1587, Secs. 6, 8, and 9). See Environment and
Natural Resources.
Studies
Legislative Research Commission
Membership of the Wildlife Resources Commission
S. L. 2006- 248, Sec. 2.1( 9) q. ( HB 1723, Sec. 2.1( 9) q.) provides that the Legislative
Research Commission may study the membership of the Wildlife Resources Commission.
This section became effective August 16, 2006. ( BR)
Chapter 1 Agriculture and Wildlife
Page 5
Referrals to Departments, Agencies, Etc.
Sunday Hunting
S. L. 2006- 248 Part XIII ( HB 1723, Part XIII) directs the Wildlife Resources Commission
( Commission) to study the issue of allowing hunting on Sundays at a limited number of State
game lands. In conducting its study, the Commission must consider, but is not limited to, the
following issues:
Individual game land suitability for Sunday hunting.
Allowable hunting activities, including methods of taking and the use of dogs.
Limiting hunting privileges to avoid conflict with religious services.
The needs of persons pursuing non- hunting outdoor recreational activities.
The Commission is to seek the input of representatives of interested parties, including
landowners, conservation organizations, agricultural organizations, religious organizations,
hunting clubs and organizations, and controlled hunting preserve operators. The Commission is
to report its findings to the Joint Legislative Commission on Governmental Operations by March
15, 2007.
This part became effective August 16, 2006. ( BR)
Study Inherently Dangerous Animals
S. L. 2006- 248, Part XXXII ( HB 1723, Part XXXII) directs the Department of Environment
and Natural Resources, in consultation with the North Carolina Zoological Park and the Wildlife
Resources Commission, to study the need to protect the public against the health and safety risks
posed by inherently dangerous animals, and to propose a means of best providing that protection
to the public, while also protecting the welfare of inherently dangerous animals. The Department
is to report its findings to the General Assembly no later than the convening of the 2007 General
Assembly.
This part became effective August 16, 2006. ( BR)
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 1 Agriculture and Wildlife
Page 6
Chapter 2 Alcoholic Beverage Control
Page 7
Chapter 2
Alcoholic Beverage Control
Brenda Carter ( BC), Denise Huntley ( DH), Howard Alan Pell ( HAP), Susan Sitze ( SS)
Enacted Legislation
Repeal Sunset of Open Container Law
S. L. 2006- 66, Sec. 21.7 ( SB 1741, Sec. 21.7) repeals the expiration date of the State's
open container law. The act makes it unlawful for a person to possess an alcoholic beverage
other than in the unopened manufacturer's original container, or to consume an alcoholic
beverage in the passenger area of a motor vehicle while the motor vehicle is on a highway or the
right- of- way of a highway. An exception applies to motor homes and certain vehicles for hire.
The provision became effective September 1, 2000 and was scheduled to expire on September
30, 2006.
This section became effective July 1, 2006. ( BC)
Aircraft Mechanics' Lien/ Winemaking
S. L. 2006- 222, Part II ( SB 2010, Part II) provides for the licensing of commercial
establishments in which customers may purchase ingredients and rent equipment, time, and
space to make unfortified wine on the premises for the customer's personal and family use,
similar to the existing brew- on- premises permit for making malt beverages. The permit holder is
not permitted to engage in the actual production or manufacture of wine, except for testing
equipment or recipes and samples. All wine produced must be removed from the premises by the
customer. The fee for the permit is $ 400.
This part became effective August 10, 2006. ( BC)
Various Alcoholic Beverage Control Law Changes
S. L. 2006- 227 ( HB 1025) makes various changes to the laws concerning alcoholic
beverages.
See summary for S. L. 2006- 222, Part II ( above).
Wine Shipper Packager Permits. - The act authorizes the issuance of a wine shipper
packager permit to a USDA- approved company specializing in warehousing and contract
packaging. The holder of the permit may provide services for the warehousing, packaging, and
shipment of wine on behalf of a winery. The fee for the permit is $ 100.
University- Owned Golf Courses. - The act amends the law that restricts the sale of
malt beverages and wine on the campus or property of public schools and colleges. The act
provides an exception for any golf courses owned or leased by constituent institutions of The
University of North Carolina and open to the public for use.
ABC Sales to Rail Lines. - The act provides that any ABC- licensed wholesaler or retailer
may sell or deliver malt beverages or wine to a rail line that carries at least 60,000 passengers
annually.
Wine Shop Permit Changes. - The act removes a provision that limited the sale of
wine for on- premises consumption to those amounts remaining in opened bottles upon the
conclusion of an authorized wine tasting, and that limited individual servings to 4 ounces per
glass. The act exempts wine shops that do not prepare or sell food from certain sanitation
regulations.
Chapter 2 Alcoholic Beverage Control
Page 8
Primary Source. - The act gives the ABC Commission authority to recognize the holder
of a wine importer permit or nonresident wine vendor as a primary American source of supply for
the wine of a winery. This requires that the wine importer or nonresident wine vendor establish
that it has lawfully purchased the wine from the winery or its agent, and has been authorized by
the winery to distribute the wine to wholesalers in the U. S. A wine importer may import and sell
to wholesalers only wine for which it is a primary American source of supply, and a nonresident
wine vendor may sell, deliver, and ship into this State only wine for which it is a primary
American source of supply. A wine wholesaler must receive its wine from a primary American
source of supply for the wine, or from another wholesaler when specified conditions are met.
Distribution of Wine Taxes. - The act provides that, effective July 1, 2007, the
Secretary of Revenue will credit $ 200,000 to the Department of Commerce on a quarterly basis
from the net proceeds of the excise tax collected on unfortified wine. These funds are allocated
to the North Carolina Wine and Grape Growers Council for promotion of the State's wine and
grape industry and to contract for research and development services to improve viticulture and
enology practices in the State.
This act became effective August 10, 2006. ( BC)
Governor's Driving While Impaired Task Force
Recommendations
S. L. 2006- 253, Sec. 3 ( HB 1048, Sec. 3). See Criminal Law and Procedure.
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 3 Children and Families
Page 9
Chapter 3
Children and Families
Drupti Chauhan ( DC), Erika Churchill ( EC), Ben Popkin ( BP), Wendy Graf Ray ( WGR)
Enacted Legislation
Partnership for Children/ Board Appointment
S. L. 2006- 20 ( SB 329). See State Government.
Clarify School Admissions Procedures
S. L. 2006- 65 ( HB 1074). See Education.
Rewrite Special Education Laws
S. L. 2006- 69 ( HB 1908). See Education.
Schoolchildren's Health Act
S. L. 2006- 143 ( HB 1502). See Education.
Departments of Social Services Disclosure of Information/
Abuse/ Neglect
S. L. 2006- 205 ( SB 1216). See Health and Human Services.
Public Housing Authority/ Target Incomes
S. L. 2006- 219 ( HB 767). See Health and Human Services.
Vision Care Program Changes
S. L. 2006- 240 ( HB 2699). See Health and Human Services.
Protect Children/ Sex Offender Law Changes
S. L. 2006- 247, Sec. 11 ( HB 1896, Sec. 11). See Criminal Law and Procedure.
Chapter 3 Children and Families
Page 10
Studies
Legislative Research Commission
Post- Adoption Contact
S. L. 2006- 248, Sec. 2.1.( m) ( HB 1723, Sec. 2.1.( m)) states that the Legislative Research
Commission may study the topic of post- adoption contacts and communications.
This section became effective August 16, 2006. ( DC)
New/ Independent Studies/ Commissions
Smart Start and Child Care Funding Study
S. L. 2006- 248, Part XXVI ( HB 1723, Part XXVI) creates the Smart Start and Child Care
Funding Study Commission. The Commission must examine the funding of the North Carolina
Partnership for Children and consider the current funding system, strategies for achieving full
funding, funding equity among counties and local partnerships, and any other relevant
information in providing services to young children and families.
This part became effective August 16, 2006. ( DC)
Study Commission on Day Care and Related Programs
S. L. 2006- 248, Part LVI ( HB 1723, Part LVI) creates the Legislative Study Commission on
Day Care and Related Programs. The purpose of the Commission is to ( i) assess the shortfalls
and benefits of various day care and related programs, ( ii) consider needed adjustments and
program consolidations to realize the maximum benefit to the State's children and families, ( iii)
consider how day care and related programs affect economic development, and ( iv) review any
other relevant issues.
This part became effective August 16, 2006. ( DC)
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 4 Civil Law and Procedure
Page 11
Chapter 4
Civil Law and Procedure
Brenda Carter ( BC), Karen Cochrane- Brown ( KCB), Bill Gilkeson ( BG), Kory Goldsmith ( KG), Trina
Griffin ( TG), Tim Hovis ( TH), Denise Huntley ( DH), Howard Alan Pell ( HAP), Wendy Graf Ray
( WGR), Walker Reagan ( WR), Steve Rose ( SR), Susan Sitze ( SS)
Enacted Legislation
Amend the Forfeiture of Property Rights Law
S. L. 2006- 107 ( SB 1378) amends the " Slayer" statute found in Article 3 of Chapter 31A of
the General Statutes to include a person who is found in a civil action brought within two years
after the death of the decedent, to have willfully and unlawfully killed the decedent or procured
the killing. This definition supplanted language in the statute that provided a " slayer" included a
person ( i) found to have willfully and unlawfully killed the decedent in a civil action brought
within one year of the death of the decedent, and ( ii) that died before being tried for the offense
and settlement of the estate. The two- year period is tolled during any criminal action.
The act clarifies that the burden of proof is on the party seeking to establish that the
killing was willful and unlawful. The act also amends the definition of " slayer" to include a
juvenile who is adjudicated delinquent by reason of committing an act that, if committed by an
adult, would make the adult a principal or accessory before the fact of the willful and unlawful
killing of another person. The act clarifies that the term “ slayer” does not include a person who is
found not guilty by reason of insanity of being a principal or accessory before the fact of the
willful and unlawful killing of another person.
The act changes the law to allow a person whose culpable negligence causes the death
of a decedent to succeed to any property passing by reason of the death of the decedent.
Accordingly, a conviction for involuntary manslaughter would not result in a forfeiture of property
rights.
This act became effective July 13, 2006 and applies to property passing from decedents
dying on or after that date. ( DH)
Protection of Animals
S. L. 2006- 113, Sec. 1 and 2 ( HB 2098, Sec. 1 and 2). See Agriculture and Wildlife.
Motor Vehicle Self- Insurers
S. L. 2006- 145 ( SB 277). See Insurance.
Lapse in Liability Insurance
S. L. 2006- 213 ( SB 881). See Insurance.
Eminent Domain Restrictions
S. L. 2006- 224 ( HB 1965). See Property, Trusts, and Estates.
Chapter 4 Civil Law and Procedure
Page 12
Unincorporated Nonprofit Association Act/ General Statutes
Commission Technical Corrections
S. L. 2006- 226 ( SB 1479). See Commercial Law and Consumer Protection.
Increase Penalties for CAMA Violations
S. L. 2006- 229 ( HB 1523). See Environment and Natural Resources.
Trusts and Estates Technical Changes
S. L. 2006- 259, Sec. 13 ( SB 1523, Sec. 13). See Property, Trusts, and Estates.
Appellate Counsel in Civil Commitment Actions
S. L. 2006- 264, Sec. 61 ( SB 602, Sec. 61). See Health and Human Services.
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 5 Commercial Law and Consumer Protection
Page 13
Chapter 5
Commercial Law and Consumer Protection
Karen Cochrane- Brown ( KCB), Tim Hovis ( TH), Denise Huntley ( DH),
Wendy Graf Ray ( WGR), Walker Reagan ( WR), Steve Rose ( SR)
Enacted Legislation
Amend Transition Provisions Article 9/ Uniform Commercial
Code
S. L. 2006- 11 ( SB 1377) amends G. S. 25- 9- 705 to resolve a problem caused by possible
different interpretations of this section as applied to a particular group of “ affected” UCC- 1
financing statements. The statute is part of the transition provisions from former Article 9 to the
Revised Article 9 of the Uniform Commercial Code ( Chapter 25 of the General Statutes) which
became effective July 1, 2001. Both articles cover security interests in personal property.
The act adds a new subsection ( g), to provide that the lapse date of June 30, 2006, in
subdivision ( c)( 2), does not apply to affected financing statements, and that a continuation
statement with respect to an affected financing statement is effective if it is filed before the
normal lapse date but no earlier than December 30, 2005, or six months before the normal lapse
date, whichever is earlier. This change preserves the existing six- month window within which to
file a continuation statement and also makes valid all continuations of affected financing
statements filed during the time period beginning December 30, 2005, through June 30, 2006.
The act clarifies that the changes made by the act do not make ineffective a continuation
statement that was already filed and effective on the effective date of the act.
This act became effective June 14, 2006. ( WR)
S Corporation Income Tax Adjustments
S. L. 2006- 17 ( HB 1898). See Finance.
Enhance Embargo Authority/ Protect Food Supply
S. L. 2006- 80 ( HB 2200). See Agriculture and Wildlife.
Insurance Technical Corrections/ Manufacturers Licensing
Law
S. L. 2006- 105, Sec. 2.3 ( SB 615, Sec. 2.3) amends Article 12 of Chapter 20 of the
General Statutes, Manufacturers Licensing Law. Existing law requires a new motor vehicle dealer,
motor vehicle sales representative, manufacturer, factory branch, factory representative, distribu-tor,
distributor branch, distributor representative, or wholesaler to obtain a license by filing an
application with the Division of Motor Vehicles. As a condition of obtaining a license, a motor
vehicle dealer, manufacturer, factory branch, distributor, distributor branch, or wholesaler must
furnish a corporate surety bond of $ 50,000 for one established salesroom and $ 25,000 for each
additional salesroom for motor vehicle dealers. For all others required to post a corporate surety
bond, the amount of the bond is $ 50,000 for one place of business and $ 25,000 for each
additional place of business. The bond may be cancelled only if the bonded person stops
engaging in business or the license is denied, suspended, or revoked.
Chapter 5 Commercial Law and Consumer Protection
Page 14
This section allows cancellation of the corporate surety bond either for nonpayment of
premium, or because of a " substantial and material misrepresentation or nondisclosure of a
material fact" in obtaining or renewing the bond. Notice must be delivered or mailed to the
license holder and the Commissioner of Motor of Vehicles not less than 30 days prior to
cancellation. Notice must be given or mailed to the license holder by certified mail.
The section also allows a corporate surety to refuse renewal of the bond 30 days prior to
the premium anniversary date by giving 30- days written notice of nonrenewal to the license
holder and the Commissioner of Motor Vehicles. Notice must be given or mailed to the license
holder by certified mail.
This section became effective October 1, 2006. ( TH)
Revise Articles 1 and 7 of the Uniform Commercial Code
S. L. 2006- 112 ( SB 1555) replaces current Article 1 of Chapter 25 of the General Statutes
( Uniform Commercial Code ( UCC)) with Revised Article 1 of the UCC. Article 1 contains
provisions, including definitions, which apply throughout the UCC. The revised article reflects the
substantial revisions made to other UCC articles over the last 20 years; updates the style;
eliminates obsolete provisions; reorganizes in part; and makes clarifying and substantive
changes, some of which are necessary to accommodate electronic commerce.
The act replaces current Article 7 of Chapter 25 with Revised Article 7 of the UCC. Article
7 covers bills of lading and warehouse receipts. The revision also primarily reflects changes
necessary to accommodate electronic documents. The act makes conforming amendments to
other articles in Chapter 25 and to other sections in the General Statutes. The act also repeals
Article 5 of Chapter 27 of the General Statutes, the former Uniform Warehouse Receipts Act,
which contained the obsolete criminal provisions of the chapter.
This act became effective October 1, 2006. ( WR)
Debt Collection Licensing Changes
S. L. 2006- 134 ( HB 1388) authorizes the Commissioner of Insurance ( Commissioner) to
issue a collection agency permit to an alien, or non- US, corporation if the corporation is owned or
majority- controlled by a parent entity that is incorporated or organized in the United States, and
the alien corporation can service accounts held only by an affiliate or subsidiary of the parent
entity. The act also requires that:
The Department of Insurance be given notice if the alien corporation is sold.
The alien corporation must file a bond of double the amount of a US corporation.
The alien corporation must make records available to the Commissioner in North
Carolina.
The parent entity must agree to cure any violation committed by the alien
corporation.
Service of process on the parent entity is sufficient service of process on the alien
corporation.
The alien corporation must maintain a trust account with a bank located in the US or
in a bank approved by the Commissioner.
This act became effective October 1, 2006. ( KCB)
Video Service Competition Act
S. L. 2006- 151 ( HB 2047). See Finance.
Chapter 5 Commercial Law and Consumer Protection
Page 15
Service Members and Veterans/ Identity Theft
S. L. 2006- 158 ( HB 2883). See Military, Veterans, and Indian Affairs.
Amend Identity Theft Protection Act of 2005
S. L. 2006- 173 ( HB 1248) amends the identity theft protection laws enacted in 2005 in
the following ways:
Requires governmental entities that possess identifying information to notify affected
parties and follow the same notification requirements applicable to non- governmental
entities in the event that security is breached with regard to personal identifying
information.
Clarifies that identifying information held by a governmental entity that is segregated
or redacted from a public record is not a public record. The record from which the
identifying information is removed remains a public record.
Prohibits a person from filing a document with the Secretary of State that contains
identifying information, except under special circumstances.
Adds documents filed with the Office of the Secretary of State to the list of public
registries that must accept a document for recording, despite containing identifying
information.
Adds the Office of the Secretary of State to the list of public registries that are
required to redact identifying information contained in their records when expressly
requested to do so by the person whose identifying information is in the public
record.
Delays the effect of the law requiring governmental entities not to make identifying
information available to the general public for certain records of the Office of the
Secretary of State until July 1, 2007.
The Office of the Secretary of State is directed to study the alternatives and costs for
redacting identifying information on the Office's internet website and to report the results of its
study to the Office of State Budget and Management and to the Joint Appropriations Subcom-mittee
on General Government by February 1, 2007.
The provision conforming the non- governmental notification requirements of personal
identifying information to governmental entities became effective October 1, 2006. The
remainder of the act became effective August 1, 2006. The provisions requiring the Secretary of
State to redact identifying information contained in their records when expressly requested to do
so by the person whose identifying information is in the public record expires July 1, 2007, the
same date the Secretary of State is to have redacted all identifying information on its internet
website. ( WR)
Methamphetamine Lab Prevention Act
S. L. 2006- 186 ( SB 686). See Criminal Law and Procedure.
Used Motor Vehicle Dealer Courses
S. L. 2006- 191 ( SB 729). See Occupational Boards and Licensing.
Junk Faxes
S. L. 2006- 207 ( SB 1295) prohibits the transmission of unsolicited facsimile advertise-ments
to a person with whom the sender did not already have an " established business
Chapter 5 Commercial Law and Consumer Protection
Page 16
relationship." The act defines what constitutes an established business relationship between a
seller and a consumer. The act would not prohibit the transmission of unsolicited facsimile
advertisements when the sender and the recipient of the facsimile already have an established
business relationship, but the facsimile would be required to include: the clear and conspicuous
notice of the advertisement on the first page, directions for the recipient to place a request not to
be sent similar advertisements, and a toll- free telephone or facsimile number to receive their " do
not send" request.
The act requires that the following identifying information be contained in all facsimile
transmissions: the date and time sent, an identification of the sender of the message, and a
telephone number of the sending business or person. The act would exempt certain non- profit
professional or trade association transmissions from these identifying information requirements.
Any person or entity receiving an unsolicited advertisement in violation of the act may
bring any of the following actions in civil court:
An action to enjoin further violations by the sender.
An action to recover the following amounts from the sender: $ 500 for the first
violation; $ 1,000 for the second violation; and $ 5,000 for the third and subsequent
violations, within a two- year period.
Violation of the act also would be an unfair and deceptive trade practice, which would
provide additional remedies, including the possibility of treble damages.
This act became effective September 1, 2006, and applies to offenses committed on or
after that date. ( KCB)
Cosmetic Art Definitions/ Exam Facilities
S. L. 2006- 212 ( SB 489). See Occupational Boards and Licensing.
Film Incentive Changes
S. L. 2006- 220 ( HB 1522). See Finance.
Aircraft Mechanics' Lien/ Winemaking
S. L. 2006- 222, Part 1 ( SB 2010, Part 1) creates a procedure under which an aircraft
mechanic could file a notice of lien for labor, skills, and material on an aircraft or for storage of
an aircraft when the charges for these services and materials are not paid. The amount of the
lien is the contract price for the work or storage, and if no contract, the reasonable worth of the
service. The lien survives even if possession is surrendered. The filing of a notice of lien is with
the clerk of court. These liens have priority over other perfected and unperfected security
interests in the aircraft.
The act requires notice of the sale to be given to the owner, permits the owner to stay
the sale by filing suit contesting the amount of the lien, permits the owner to obtain possession
of the aircraft by depositing the amount of the lien with the clerk, and sets out the procedures to
be followed for conducting a private or a public sale. Transfer of title to the purchaser of value at
a lien sale is by a bill of sale. Because of the provisions of this act, aircraft mechanics can file
their notice of liens with the Federal Aviation Administration for aircraft title purposes under
federal law and these liens will be treated as secured claims for bankruptcy purposes.
This part became effective October 1, 2006 and applies to labor, skills, or materials
furnished on an aircraft or storage provided for an aircraft on or after that date. ( WR)
Chapter 5 Commercial Law and Consumer Protection
Page 17
Uniform Unincorporated Nonprofit Association Act ( UUNAA)/
General Statutes Commission Technical Corrections
S. L. 2006- 226 ( SB 1479) enacts a North Carolina version of the Uniform Unincorporated
Nonprofit Associations Act ( UUNAA) as a new Chapter 59B of the General Statutes and makes
conforming amendments to other parts of the General Statutes. The act incorporates into one
chapter the law dealing with unincorporated nonprofit associations, and treats unincorporated
nonprofit associations as legal entities with respect to legal obligations, limitations on liability,
holding property, and standing to sue and be sued. The act also provides a statutory default
procedure for disposing of a defunct nonprofit association’s personal property after three years of
inactivity by authorizing the person with possession of personal property of the association to
donate the property to another nonprofit entity or to a governmental entity. The act also permits
a nonprofit association to file an appointment of an agent for service of process with the
Secretary of State.
Part I of the act, concerning the UUNAA becomes effective January 1, 2007. The
remainder of the act, including Part II, which made technical and conforming changes to the
General Statutes, became effective August 10, 2006. ( WR)
Increase Mortgage Lending Fees
S. L. 2006- 239 ( SB 2043) changes the fees that may be charged under the Mortgage
Lending Act by establishing maximum amounts and by giving the Banking Commission authority
to adopt rules setting the fees in a lower amount when appropriate. The act also authorizes the
Commissioner of Banks to participate in a centralized national licensing system and database
funded and administered by State mortgage regulators.
This act became effective October 1, 2006. ( KCB)
Prohibit Various Lending Subterfuges
S. L. 2006- 243 ( HB 2894) clarifies that certain cash rebate transactions are subterfuges
for unlawful loans and are prohibited. The act's language is consistent with a recent Court of
Appeals decision which held that the Consumer Finance Act does apply to cash advances offered
in the form of rebates.
The act clarifies that a subterfuge includes any transaction in which a cash rebate or
other advance of funds is offered and all of the following apply:
The cash advance is made contemporaneously with the transaction or soon
thereafter.
The amount of the cash advance is required to be repaid at a later date.
The selling or providing of any item, service, or commodity with the transaction is
incidental to, or a pretext for, the advance of funds.
This act became effective October 1, 2006, and applies to transactions that are
investigated on or after that date under the North Carolina Consumer Finance Act, Article 15 of
Chapter 53 of the General Statutes, as amended by this act, and applies to transactions that are
subject to enforcement actions under the North Carolina Consumer Finance Act that are filed on
or after that date. ( KCB)
Prohibit Extreme Pricing Practices
S. L. 2006- 245 ( HB 1231), as amended by Section 41 of S. L. 2006- 259 ( SB 1523) amends
the statute which prohibits excessive pricing during states of disasters. The amendments expand
coverage beyond states of disaster to include states of emergency and abnormal markets. The
Chapter 5 Commercial Law and Consumer Protection
Page 18
addition of abnormal markets as a triggering event allowing applicability of the prohibition of
excessive pricing means that events outside the State that affect prices in the State will now be
included. In addition, excessive pricing at all levels of the market will now be prohibited. As
previously written, the statute applied only to retail sales. The statute will now apply only to
areas of the State where the state of disaster or emergency is declared, or where the abnormal
market disruption is found to exist. The statute will not apply if price changes are due to actual
market fluctuations.
This act became effective August 15. 2006. ( SR)
State Unemployment Tax Modifications
S. L. 2006- 251 ( SB 2012) makes changes to the law governing unemployment
contribution rates of employers.
Unemployment tax contributions paid by employers depend on both the experience
rating of the employer and the fiscal condition of the system. G. S. 96- 9( c)( 4) provides for the
transfer of an employer's account for purposes of determining a successor employer's
contribution rate when an employer transfers all or part of its assets to another employer. Prior
to this act, when an employing unit acquired all of the assets of another employing unit, the law
required mandatory transfer of the predecessor's account to the successor, for use in
determining the successor's contribution tax rate.
This act relieves a successor employer of the higher unemployment contribution rate of
its predecessor when there is no common ownership between the predecessor and the
successor, and the successor acquired the assets of the predecessor in a sale in bankruptcy. In
this situation, the successor's rate of contribution is determined without regard to the
predecessor's rate.
This act became effective August 16, 2006, and applies to acquisitions made on or after
August 1, 2003. ( TH)
Phase Out Video Poker/ Except by Compact
S. L. 2006- 6 ( SB 912) Exempt Certain Video Poker Machines from Ban, as amended by
2006- 259, Sec. 6 ( SB 1523, Sec. 6). See Criminal Law and Procedure.
Election Changes
S. L. 2006- 262 ( HB 128). See Constitution and Elections.
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 6 Constitution and Elections
Page 19
Chapter 6
Constitution and Elections
Erika Churchill ( EC), Bill Gilkeson ( BG)
Note: Legislation affecting voting cannot be implemented until it has received
approval under Section 5 of the Voting Rights Act of 1965. Approval is most
commonly obtained administratively from the United States Attorney General. This
requirement applies to legislation affecting any of the 40 North Carolina counties
covered by Section 5, including all statewide legislation. Unless otherwise indicated,
the effective date stated is the effective date as it is in the legislation. It may be that
Voting Rights Act approval has not yet been obtained, and therefore the act cannot
be implemented until such approval is given.
Enacted Legislation
Candidate Challenge Procedure
S. L. 2006- 155 ( HB 2188) establishes a process to challenge the candidacy of someone
filing or petitioning to run for office. The law defines a " challenger" as any qualified voter
registered in the same district as the office for which the candidate has filed or petitioned and a
" challenged candidate" as the candidate whose candidacy is being challenged.
The basic filing provisions include:
When a challenge is to be made. - No later than 10 business days after the close of
the applicable filing period. A provision is included to allow a protest petition to be filed if
the ground( s) for the challenge are discovered after the time period for filing a candidate
challenge has passed.
How a challenge is to be made. - In a verified affidavit by a challenger based on a
reasonable suspicion or belief of the facts stated.
Grounds for challenging the candidate. - The candidate does not meet the
constitutional or statutory requirements for office, including residency.
Once a challenge is filed, the challenge is heard by a panel. The panels are comprised as
follows:
Single county districts. - If the district for the office subject to the challenge covers all
or part of only one county, then the panel is the county board of elections of that county.
Multicounty, but less than entire State. - If the district for the office subject to the
challenge covers more than one county but less than the entire State, then the panel is
appointed by the State Board of Elections ( Board), with all of the following applying:
The Board must appoint the panel within two business days after the challenge is
filed. Meetings of the Board to make appointments are treated as emergency
meetings for the purpose of notice for an open meeting.
The panel must consist of at least one member of the county board of elections in
each county in the district of the challenged office. The panel must have an odd
number of members, no fewer than three and no more than five.
In appointing members to the panel, the Board must appoint members from each
county in proportion to the relative total number of registered voters of the counties
in the district for the office.
The Board must, to the extent possible, appoint members affiliated with different
political parties in proportion to the representation of those parties on the county
boards of elections in the district for the office.
The Board must designate a chair for the panel.
Chapter 6 Constitution and Elections
Page 20
Entire State. - If the district for the office subject to the challenge covers the entire
State, the panel is the Board of Elections.
Each panel must do all of the following:
Announce the time and location of the hearing within five business days after the
challenge is filed. The preference of location is the county in which the candidate
filed his or her notice or petition of candidacy.
Allow for depositions prior to the hearing upon the request of either the challenger or
candidate.
Issue subpoenas upon its own motion or upon the request of the parties.
Give notice of the hearing and a copy of the challenge or summary of the allegations
to the challenger, the candidate, certain county political party chairs, and other
persons likely to have a significant interest in the challenge. Failure to comply with
the notice requirements does not delay the holding of the hearing or invalidate the
results if it appears reasonably likely that all interested persons were aware of the
hearing and had an opportunity to be heard.
Render a written decision within 20 business days after the challenge is filed and
serve that notice on the parties.
Panels may subpoena witnesses and receive evidence from any person with information
concerning the subject of the challenge. The challenger is not required to testify unless
subpoenaed by a party. The Board must adopt rules addressing notice to parties, scheduling of
hearings, timing of deliberations, and issuance of decisions.
The burden of proof is on the candidate, who must show by a preponderance of the
evidence based on the whole record, that he or she is a qualified candidate. If the challenge is
based on residency, the candidate must show all of the following:
Actual abandonment of the first domicile and intent not to return to the first
domicile.
Acquisition of a new domicile by actual residence at another place.
Intent of making the newer domicile a permanent domicile.
There are two distinct procedures for appealing the decision of a panel:
Appeals from single or multicounty panel. - The challenger, a candidate adversely
affected by the panel's decision, or any other person who participated in the hearing and has a
significant interest adversely affected by the panel's decision, may appeal to the Board. The
appeal:
Must be taken within two business days after the panel files its written decision to
the county board of elections where the candidate filed a notice of candidacy or
petitioned.
Must be delivered or deposited in the mail by the end of the second business day
after the panel filed its written decision.
Must be based on the whole record of the hearing with the board making a decision
on an expedited basis.
The board's decision may be appealed directly to the North Carolina Court of Appeals no
later than two business days after the Board files its final order.
Appeals from a statewide panel. - The challenger, a candidate adversely affected by
the panel's decision, or any other person who participated in the hearing and has a significant
interest adversely affected by the panel's decision, may appeal. The appeal:
Must be taken within two business days after the panel files the written decision.
Must be delivered or deposited in the mail to the Court of Appeals by the end of the
second business day after the panel filed its written decision.
Must be based on the whole record of the hearing.
This act becomes effective January 1, 2007, and applies to actions filed on or after that
date. ( EC)
Chapter 6 Constitution and Elections
Page 21
Permitted Use of Campaign Funds
S. L. 2006- 161 ( HB 1845) establishes permitted and prohibited uses of contributions
accepted by a candidate or a candidate's campaign committee. Contributions may be used only
for permitted uses. The candidate or candidate's campaign committee may use contributions only
for the following purposes:
Expenditures resulting from the campaign for public office.
Expenditures resulting from holding public office.
Contributions to a charitable organization provided that the candidate or the candi-date's
spouse, children, parents, brothers, or sisters are not employed by the
organization or on any board governing the organization.
Contributions to a national, State, or district or county committee of a political party
or a caucus of the political party.
Contributions to another candidate or candidate's campaign committee.
To return all or a portion of a contribution to the contributor.
Payment of any penalties against the candidate or candidate's campaign committee
imposed by a board of elections or a court of competent jurisdiction.
A candidate or candidate's campaign committee is expressly prohibited from using
contributions to fulfill any commitment, obligation, or expense of a candidate, individual, or other
entity that would exist regardless of the campaign for public office or holding public office when
making expenditures resulting from running for office or holding public office. Violation of these
provisions would be punishable as a Class 2 misdemeanor. These provisions became effective
October 1, 2006, and apply to all candidates and candidate campaign committees with active
accounts on that date.
The act also amends the existing reporting requirements to require political committee
and referendum committee treasurers to report expenditures with a specific description to
provide a reasonable understanding of the expenditure. It further requires that the treasurer
report the ultimate payee of the expenditure, meaning the individual or person to whom the
political committee is obligated to make the expenditure. If the obligation is for more than one
good or service, an itemization of the goods and services must be included. These provisions
become effective January 1, 2007, and apply to all political committee and referendum
committees with active accounts on that date. ( EC)
Electioneering Communications
S. L. 2006- 182 ( HB 1847) makes several changes to North Carolina's law regulating
" electioneering communications." Electioneering communications are communications with the
following general characteristics:
They are made on radio or television or through mass mailings or telephone banks.
They refer to a candidate for statewide office or the General Assembly.
They are made during the period 30 days before a primary or 60 days before a
general election for the candidate involved.
They are " targeted to the relevant electorate."
They do not fall into several excluded categories, including news stories.
They are not communications expenditures which would be covered by Article 22A of
Chapter 163 of the General Statutes. Communications that expressly advocate the
election or defeat of a clearly identified candidate would fall into that category.
Before this act, the law already prohibited the use of corporate or labor union money to
produce electioneering communications. It also required reporting of spending for electioneering
communications within 24 hours after the spending reached $ 10,000.
Frequently, the entities that engage in electioneering communications are not registered
or regulated as " political committees" under the North Carolina campaign finance laws, but they
Chapter 6 Constitution and Elections
Page 22
are tax exempt because of their political focus under Section 527 of the Internal Revenue Code.
Hence, they are often called " 527 organizations."
The changes made by this act include the following:
Changes the way the regulation applies to mass mailings and telephone banks so
that items are regulated if they refer to candidates in the same race during a 30- day
period that falls within the window of electioneering communications. The items
would no longer have to be " identical or substantially similar" as in current law.
Drops the mail- phone bank " targeted to the relevant electorate" threshold for
legislative races from 5,000 to 2,500.
Changes the definition of " mass mailing" so that it no longer requires that it be made
by a commercial vendor.
Provides that the disclosure date is triggered by the expense being incurred, rather
than the payment for the costs being made by the entity producing the elec-tioneering
communication.
Clarifies that in- kind as well as monetary contributions are subject to reporting as
well as the prohibition on corporate, union, etc. sources.
Requires reporting not only the name but also the " principal occupation" of the
donor.
Clarifies that any individual, committee, association, or other organization or group of
individuals can produce an electioneering communication even if they have taken a
payment from a prohibited source by segregating the funds to prove that the
electioneering communication was produced with only allowable source's
contributions.
Prohibits the proliferation of 527 organizations to avoid or evade prohibited source or
disclosure requirements.
This act became effective on August 1, 2006, except that any criminal penalties resulting
from the act became effective October 1, 2006. ( BG)
Runoff Changes
S. L. 2006- 192 ( HB 1024) makes a number of changes to election laws, mostly concerned
with runoffs and with judicial elections.
The act, in a limited way, introduces into North Carolina election law the device of
Instant Runoff Voting. It introduces it in two ways: ( i) As a pilot program in local elections during
2007 and 2008, and ( ii) as a way of conducting elections to fill vacancies in appellate and
Superior Court judgeships that occur during an election year when it is too late to hold a
nonpartisan primary.
Instant Runoff Voting is a system designed to accomplish in one election the effect of
having a runoff or screening election where more than two candidates are running for the same
seat and no candidate gets a majority ( or substantial plurality) of the votes. If only two
candidates are running, no runoff or Instant Runoff is needed. As used in this section, " instant
runoff voting" means a system in which voters rank up to three of the candidates by order of
preference, first, second, or third. If the candidate with the most first- choice votes receives the
threshold of victory of the first- choice votes, that candidate wins. If no candidate receives the
threshold of victory of first- choice votes, the two candidates with the greatest number of first-choice
votes advance to a second round of counting. In this round, each ballot counts as a vote
for whichever of the two final candidates is ranked highest by the voter. The candidate with the
most votes in the second round wins the election. The threshold of victory of first- choice votes
differs depending on what kind of election is involved. In a partisan primary, the threshold is 40
percent plus one vote. In nonpartisan election and runoff and nonpartisan primary and election,
the threshold is a majority of the votes. Instant Runoff Voting can also be used in races where
more than one candidate is to be elected. In the case of a multi- seat race, the voters vote the
same way as with a single- seat race. The counting is done separately for each winner. After the
Chapter 6 Constitution and Elections
Page 23
first winner is determined, that candidate's name is removed and the ballots are counted again in
the same way to determine the second winner.
In the pilot program, the State Board of Elections is to select up to 10 cities in the 2007
elections and up to 10 counties in the 2008 elections to participate in a pilot for Instant Runoff
Voting in local elections. It would be used only in partisan primaries and nonpartisan elections.
No county would be selected if the county board of elections did not agree. If Instant Runoff
Voting were used in an election that normally was a nonpartisan plurality election, the governing
board of the city or county would also have to agree.
In judicial elections, Instant Runoff Voting will be used if a vacancy in a seat on the
Supreme Court, the Court of Appeals, or the Superior Court occurred at a time when, according
to the State Constitution, an election would have to occur in November for the seat, but there is
no time to complete the normal method of screening candidates, the nonpartisan primary.
Instant Runoff Voting would also be used where a judicial candidate dies or becomes disqualified
and it is too late to complete a nonpartisan primary.
The act makes several other changes:
Moves the standard date for the runoff in partisan primaries in even years from the
current four weeks after the first primary to seven weeks after it.
Changes the municipal election schedule so that the candidate filing period is
shortened from four weeks to two weeks ( first Friday in July to the third Friday in
July), and changes the partisan municipal primary schedule so that the first primary
is always the second Tuesday after Labor Day and the second primary is the fourth
Tuesday before the election. In most years, that will add an extra week between the
first and second primaries and, in all years, it will add an extra week between the
second primary and Election Day.
Conforms State law to federal law on treatment of overseas voters. Previous State
law allowed certain military- connected and other voters to register and vote
absentee and to vote by email and fax, but it did not provide that service to all
overseas civilian United States citizens who were covered by the federal Uniformed
and Overseas Citizens Absentee Voting Act ( UOCAVA). State law did, however,
extend those privileges to certain people, including hospitalized veterans, who were
not covered by UOCAVA. This act extends State coverage to all citizens covered by
UOCAVA. It does so without removing coverage from anyone who now has State
coverage.
Provides that the precincts or other voting units that will be selected for hand
counting of votes will not be selected until 24 hours after the initial count of the
election returns is released to the public, or 24 hours after the polls close, whichever
occurs first. The selection would have to be done in public.
Makes several changes to the laws governing the Public Campaign Fund, which
provides public funding to candidates for appellate judgeships who agree to certain
conditions. Among the changes are the ability of candidates to make up any lack of
public funds to which they are entitled by raising that amount privately, a simplified
trigger for reporting of independent expenditures, and a narrowing qualification on
the 21- day blackout for non- publicly funded opponents to raise private contributions.
One significant change is to apply to candidates for Superior Court and District Court,
or the trial courts, the $ 1,000 contribution limit that now applies to candidates for
appellate court judges. The contribution limit for non- judicial candidates is $ 4,000
per donor per donee per election.
This act became effective on August 3, 2006, except that the change in the dates for
runoff primaries and the change in the contribution limit for trial court judge candidates becomes
effective January 1, 2007. ( BG)
Chapter 6 Constitution and Elections
Page 24
2006 Campaign Finance Changes
S. L. 2006- 195 ( HB 1846) makes several changes to the campaign finance laws, mostly
concerned with the training of campaign treasurers and their activities in accepting and reporting
contributions.
The act does the following:
Reduces from $ 100 to $ 50 the amount of a contribution that may be made or
accepted in cash.
Prohibits the making or accepting of a non- cash contribution unless it contains on the
instrument of contribution the name of the intended contributee chosen by the
contributor.
Makes clear that treasurers must keep accounts of all contributions, including all
information required by the State Board of Elections on its forms. The act removes
language that might lead some to believe that small contributions accepted at an
event do not have to be specifically accounted for.
Changes the threshold for the identification of individual contributors on public
campaign reports. Current law sets the threshold at $ 100. For any contribution by an
individual resident of the State of $ 100 or less, the contributor does not have to be
identified on the report. While current law indicates that aggregate contributions by
the same individual are counted toward the $ 100 threshold, it does not state what
time period must be used to measure the aggregate contributions toward the
threshold. In the absence of statutory guidance, the State Board of Elections has
used the " election cycle" as the measuring period for the $ 100 threshold. " Election
cycle" is defined as the term of the office sought or, if multiple offices of different
term lengths are involved, the two- year term of legislative offices. This act changes
the threshold for reporting a contributor's identity from $ 100 to $ 50. But it sets a
statutory measuring period for aggregate contributions that is different from what
the State Board of Elections has been using. It sets the " election" as the new
measuring period. This is the same period used for measuring the $ 4,000
contribution limit. A primary is one election, and a general election in the same year
is another. So, as a result of the act, an individual resident of the State can
contribute up to $ 50 to a candidate in a primary, and another $ 50 to the same
candidate in the general election in the same year, and avoid having his or her name
reported publicly.
Prohibits acceptance of a contribution by a non- corporate business entity, labor
union, professional association or insurance company. The law already prohibits all
those entities from making contributions, but does not prohibit anyone from
accepting them. When it comes to acceptance, current law addresses only
contributions by corporations. This act changes the law on prohibited sources so that
the law on accepting contributions mirrors the law on making contributions. The act
also adds language providing a safe harbor against criminal or civil prosecution if a
treasurer has shown best efforts to obtain required information.
Requires that treasurers of campaign committees participate in training as to the
duties of the office within three months of appointment and at least once every four
years thereafter. The State Board of Elections is required to provide the training
through regional seminars and through interactive electronic means. The treasurer
may choose to participate in training prior to each election in which the committee is
involved. An assistant treasurer may be designated to attend the training. The
training must be provided for free. All required reports must be filed by a treasurer or
assistant treasurer who has completed the training.
This act becomes effective January 1, 2007, except that the requirements for treasurer
training became effective October 1, 2006. ( BG)
Chapter 6 Constitution and Elections
Page 25
State Government Ethics Act - 1
S. L. 2006- 201 ( HB 1843). See State Government.
Candidate- Specific Communications
S. L. 2006- 233 ( HB 966) requires disclosure of spending for " candidate- specific
communications." " Candidate- specific communications" are the same as " electioneering
communications" ( see the explanation in the summary of S. L. 2006- 182, HB 1847, provided
earlier in this Chapter), except for the time period when they occur. To be an electioneering
communication, a message must be made 60 days before an election or 30 days before a
primary. To be a candidate- specific communication, the communication must be made in an
even- numbered year after the last day candidates may file for a partisan primary or a judicial
office, set as the last business day in February. The period would run through Election Day,
excluding the electioneering communication period.
The sole aspect of candidate- specific communication regulation is disclosure. The
differences between how the two kinds of communication are regulated are as follows:
There is no prohibition on any source making candidate- specific communications.
Organizations spending for candidate- specific communications do not have to do so
out of a segregated fund that excludes certain expenditures.
There is no criminal penalty in the candidate- specific communications articles, except
that lying on the disclosure statement is subject to perjury. The electioneering
articles impose a Class 2 misdemeanor for violations. The candidate- specific articles
rely on civil remedies.
Consequently, existing Articles 22E and 22F, and Articles 22G and 22H ( created by this
act) of the General Statutes would all regulate the same communication: one that refers to a
candidate for statewide office or the General Assembly, that is " targeted to the relevant
electorate," and that does not meet the express advocacy test of an " expenditure" so that it can
be fully regulated under the campaign finance act.
A communication with the above characteristics is an " electioneering communication"
if it is made during the 60 days before a general election or the 30 days before a
primary, which are held in April, September, and October. If made during those
times the communication is subject to disclosure if made by an entity that spends
more than $ 10,000 on such communications. It cannot be funded with corporate or
union money.
A communication with the above characteristics is a " candidate- specific
communication" if it is made outside the 60- day or 30- day windows but within the
wider window beginning at the close of candidate filing in an even- numbered year
( last business day of February) and before the general election, which occur in
March, May, June, July, and August. If made during that time, the communication is
subject to disclosure if made by an entity that spends more than $ 10,000 on such
communications. However, there is no prohibition on the use of corporate and union
money.
A communication with the above characteristics is not regulated by either of those
acts if it is made during an odd- numbered year, or outside the electioneering
communications window, or the candidate- specific communications window, of an
even- numbered year. During an even- numbered year, the unregulated months are
basically January, February, November, and December.
This act becomes effective January 1, 2007. No communication becomes a " candidate-specific
communication" until February 2008. ( BG)
Chapter 6 Constitution and Elections
Page 26
Electoral Fairness Act
S. L. 2006- 234 ( HB 88) equalizes the requirements that must be met for individuals to
have their names on the general election ballot by new parties and by unaffiliated candidates for
statewide office. The current law requires that new parties collect on petitions the signatures of
registered voters equal to 2 percent of the votes cast in the latest general election for Governor,
which is 69,734 signatures. Current law requires that statewide unaffiliated candidates collect
signatures equal to 2 percent of all the registered voters in the State – more than 100,000
signatures. In 2004, a federal court ruled, in the case of Delaney v. Bartlett, 370 F. Supp. 2d 373,
that the disparity between the 2 requirements was constitutionally indefensible. This act makes
the 2 thresholds the same by reducing the unaffiliated candidate threshold to the 69,734
signatures requirement applicable to the new parties.
The act also reduces the requirement that a party must meet to stay on the ballot.
Currently, the party will retain ballot status if either its nominee for Governor, or its nominee for
President, gets 10 percent of the vote. If neither nominee meets the requirement, the party loses
its ballot status. The act reduces the percentage to two percent of the vote.
The act also:
Applies to new party candidates the same filing fee requirements that apply to
candidates for nomination by existing parties.
Prohibits a party from replacing a candidate on its ticket with a person who has been
defeated for the same office in the primary of another party.
This act becomes effective January 1, 2007, and applies to all primaries and elections
held on or after that date. ( BG)
Election Changes
S. L. 2006- 262 ( HB 128) makes the following changes to election law:
Allows county boards of elections to begin, but not complete, the process of counting
mailed absentee ballots before Election Day if the county board uses an optical scan
voting system.
Amends the voter registration statutes to:
• Clarify that a voter reporting a move need not provide the date of the move, just
to attest that the move occurred at least 30 days before the next election.
• Clarify that a person's residence is the usual sleeping area for voters who live in
places other than traditional residences such as houses or apartments.
Provides that, effective January 1, 2007, the envelope for a voter's provisional ballot
identifies the voter, not the provisional ballot itself.
Establishes a process for how a candidate or political committee may accept loans
from financial institutions in the ordinary course of business without violating the
prohibition on accepting corporate contributions. Such a loan must meet all the
following tests:
• The full amount of the loan must be secured by collateral placed by someone or
something that is not prohibited from making a contribution. The value of the
collateral put up by each of those individuals or other entities cannot exceed that
entity's contribution limits, generally $ 4,000 per election. The value of the
collateral posted may exceed the contribution limit where the value of the loan
itself does not exceed the limit applicable to the entity.
• While the loan is unpaid, the value of any collateral posted, or the amount of
each guaranty for the loan, is considered a contribution by whoever secured the
loan. If the loan or a portion of it is repaid to the bank during the contribution-limit
period ( an " election"), then whoever secured the loan is freed up to further
contribute to the candidate up to the amount of the repayment. If multiple
Chapter 6 Constitution and Elections
Page 27
entities secured the loan that the candidate repays to the bank, then the amount
repaid is prorated among them.
• If the loan is to a candidate or political committee, only the candidate, the
candidate's spouse, or the political committee may repay the loan to the bank.
Repeals a provision in the 2005 Budget Bill that allowed the Governor to appoint
members of the State Board of Elections without regard to whether they had been
nominated by the State Chair of one of the two major political parties, thereby
restoring the law that the Governor must make appointments from the lists of five
nominees made by each State Party Chair.
Corporations and other entities prohibited from making political contributions and
expenditures may nonetheless be the parent entity for a political committee
consisting of individuals connected with it, and the prohibited source may provide
" reasonable administrative support" to that political committee. The current statute
lists the following as examples of reasonable administrative support: record keeping,
computer services, billings, and mailings to members of the committee, office sup-plies,
and office space. This section adds membership development and fund- raising
activities to the list of examples.
Except as stated above, this act becomes effective January 1, 2007. ( EC)
Clarify 2010 Census Redistricting Data Program
S. L. 2006- 264, Sec. 75.5 ( SB 602, Sec. 75.5). See State Government.
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 6 Constitution and Elections
Page 28
Chapter 7 Courts, Justice, and Corrections
Page 29
Chapter 7
Courts, Justice, and Corrections
Brenda Carter ( BC), Tim Hovis ( TH), Brad Krehely ( BK), Howard Alan Pell ( HAP)
Enacted Legislation
Provide Additional Assistant District Attorneys
S. L. 2006- 66, Sec. 14.3 ( SB 1741, Sec. 14.3) increases the number of full- time assistant
district attorneys in each prosecutorial district. 13 additional positions are authorized for
Mecklenburg County, and 7 are authorized for Wake County. From one to three additional
positions are authorized for each of the other prosecutorial districts.
This section becomes effective January 1, 2007. ( BC)
Additional District Court Judgeships
S. L. 2006- 66, Sec. 14.4 ( SB 1741, Sec. 14.4) provides for 17 additional district court
judgeships in designated districts. The Governor will appoint the additional judges, and those
judges' successors will be elected in the 2008 election for 4- year terms commencing on January
1, 2009.
This section becomes effective January 15, 2007. In the case of districts subject to
section 5 of the Voting Rights Act of 1965, it becomes effective January 15, 2007 or the date
upon which the additional judge for that district is approved under section 5 of the Voting Rights
Act of 1965. ( BC)
Additional Magistrates/ Eliminate Maximum Allocation of
Magistrates
S. L. 2006- 66, Sec. 14.5 ( SB 1741, Sec. 14.5) increases the number of magistrates in
certain counties and eliminates the maximum number of magistrates of each county as provided
in the statute.
This section became effective July 1, 2006. ( TH)
Increase the Uniform Fees Paid to Jurors
S. L. 2006- 66, Sec. 14.17 ( SB 1741, Sec. 14.17) increases the fees paid to jurors for days
served after the first day from $ 12 dollars to $ 20. Under prior law, jurors were paid $ 12 per day.
Fees paid to jurors for service in excess of 5 days in any 24- month period are increased from $ 30
dollars to $ 40 dollars for each day of service in excess of 5 days. Fees paid to grand jurors are
increased from $ 12 to $ 20 dollars per day.
This section became effective July 1, 2006. ( TH)
Divide Prosecutorial District 19B
S. L. 2006- 66, Sec. 14.19 ( SB 1741, Sec. 14.19) creates a new Prosecutorial District 19D,
consisting of Moore County. Prosecutorial District 19B, which had consisted of Montgomery,
Moore, and Randolph counties, loses 4 of its 12 Assistant District Attorneys to the new District
19D. The District Attorney for Prosecutorial District 19D will be filled by appointment of the
Chapter 7 Courts, Justice, and Corrections
Page 30
Governor, with the term expiring on January 1, 2009. A District Attorney decided by election in
2008 will commence a 4- year term beginning on January 1, 2009.
This section becomes effective January 15, 2007. ( HAP)
District 13 County Resident Judgeships
S. L. 2006- 96 ( SB 1991) provides residency requirements for district court judges in
District Court District 13. The voters of District Court District 13, which consists of Bladen,
Brunswick, and Columbus counties, elect 6 District Court judges. The act provides that of the 6
district court judges elected in District 13, 1 judge must be a resident of Bladen County, 1 must
be a resident of Columbus County, and 2 must be residents of Brunswick County. The remaining
2 judges may be residents of any of the 3 counties in the district.
The act divides Superior Court District 13, consisting of Bladen, Brunswick and Columbus
Counties, into 2 districts; District 13A will consist of Bladen and Columbus Counties, and District
13B will consist of Brunswick County. The act designates which current sitting judges are
designated for each district.
This act became effective October 1, 2006, or the dates the changes affecting the
election of judges are approved under section 5 of the Voting Rights Act of 1965, whichever is
later. ( BC)
Protection of Animals
S. L. 2006- 113 ( HB 2098). See Agriculture and Wildlife.
No Prayer for Judgment/ Bus Stop Arm Violation
S. L. 2006- 160 ( HB 2880) prohibits a judge from entering a prayer for judgment
continued when sentencing a person who is guilty of passing a stopped school bus. A " prayer for
judgment continued" ( PJC) is not defined in the North Carolina statutes. With a PJC, the court
accepts the defendant’s guilty plea or finds the defendant guilty after trial but does not impose a
sentence or enter judgment. Instead, the court indefinitely postpones – or continues – judgment.
If the court continues prayer for judgment for a specified period of time and, if within that time,
the defendant commits another offense, the State may seek the imposition of a sentence for the
original offense.
This act became effective September 1, 2006, and applies to offenses committed on or
after that date. ( TH)
Criminal Record Checks/ Psychology Practice Act
S. L. 2006- 175 ( HB 1327). See Occupational Boards and Licensing.
Victims' Compensation Changes
S. L. 2006- 183 ( HB 2060) makes the following changes to the laws governing the State's
Victims' Compensation program, as recommended by the Joint Legislative Corrections, Crime
Control, and Juvenile Justice Oversight Committee:
Increases from $ 3,500 to $ 5,000 the total allowable expenses related to funerals.
Amends the definition of " collateral source" to include a contract or insurance that
will pay for funeral expenses, including transportation of the body.
Chapter 7 Courts, Justice, and Corrections
Page 31
Adds language clarifying that compensation under the victims' compensation
program will not be paid for " noneconomic detriment," which includes pain,
suffering, inconvenience, physical impairment, and other non- pecuniary damage.
Adds language giving the victims' compensation program the discretion to deny,
reduce, or reconsider an award where the victim, without good cause, fails to
cooperate with the prosecution of a criminal case arising out of the criminally
injurious conduct that is the basis of the award.
Makes adjustments to awards to claimants. Under current law, the Director of the
Crime Victims Compensation Commission must reduce or deny an award to the
extent the loss is recouped from a collateral source. However, this requirement does
not apply to a collateral source that would pay expenses directly related to a funeral,
cremation, and burial, including transportation of the body. The act deletes this
language and allows awards to be reduced or denied to the extent the claimant is
able to recoup the costs of a funeral from insurance or a contract.
This act became effective July 1, 2006, and applies to claims filed on or after that date.
( TH)
Establish North Carolina Innocence Inquiry Commission
S. L. 2006- 184 ( HB 1323) establishes the North Carolina Innocence Inquiry Commission,
an eight- member body appointed by the Chief Justice of the North Carolina Supreme Court and
the Chief Judge of the North Carolina Court of Appeals. The Commission is charged with the
responsibility of hearing claims of factual innocence by persons convicted of felonies. If the
person pled not guilty to the felony charge, at least five members of the Commission must
conclude that there is sufficient evidence to merit judicial review. Upon a majority of five
Commission members concluding that review is warranted, the Chief Justice would then appoint
a panel of three Superior Court judges to hold an evidentiary hearing. If the person pled guilty to
the felony charge, then the Commission must be unanimous in finding that the claim merits
judicial review in order for the panel of judges to be appointed. The judicial panel must
unanimously rule that the innocence of the defendant has been proven by clear and convincing
evidence for the charges to be dismissed. Decisions of the Commission and the judicial panel
cannot be appealed.
This act became effective August 3, 2006, and applies to claims of factual innocence filed
on or before December 31, 2010. ( HAP)
Omnibus Courts Act
S. L. 2006- 187 ( HB 1848) makes various changes to the laws concerning the
administration of the courts system including:
Permitting the Judicial Department to accept the payments of fines, fees, and costs
by credit, charge, or debit card.
Allowing the filing of pleadings and papers in the courts by electronic means
pursuant to uniform rules adopted by the North Carolina Supreme Court.
Permitting the Judicial Department to require its employees, contractors, and
volunteers to consent to criminal history background checks as a condition for their
relationship with the Judicial Department.
Authorizing the Administrative Office of the Courts ( AOC) to provide foreign language
interpreters for indigent defendants and to hire permanent staff to serve this
purpose.
Clarifying the authority of the Chief Justice to cancel court sessions and close court
offices in the event of adverse weather or other emergency situations.
Chapter 7 Courts, Justice, and Corrections
Page 32
Setting the minimum number of magistrates for each county at the current
allotment.
Eliminating the requirement that the Joint Legislative Corrections, Crime Control and
Juvenile Justice Oversight Committee study drug treatment courts in North Carolina
as enacted earlier this session.
Amending the budget bill by changing the effective date for the provision that
increases juror fees.
Directing the AOC and other groups to study the most effective way to address the
increasing number of persons who either cannot afford representation or choose to
represent themselves in family law matters and in some civil litigation, and to report
the results of the study to the Joint Appropriations Subcommittee on Justice and
Public Safety no later than December 31, 2007.
The act also amends the statutes governing the Judicial Standards Commission
( Commission) by:
Expanding the Commission from 7 to 13 members, providing for staggering of terms,
and requiring members to be residents of the State.
Directing that two of the new members of the Commission must be appointed by the
General Assembly, one upon the recommendation of the Speaker of the House of
Representatives and one upon the recommendation of the President Pro Tempore of
the Senate.
Providing that the Court of Appeals Judge on the Commission serves at the pleasure
of the Chief Justice.
Providing that the members of the Commission and its employees are immune from
civil suit for conduct undertaken in the course of their official duties.
Expanding possible disciplinary actions to include suspension, private letters of
caution, and public reprimands.
Providing that judges suspended for misconduct will not receive compensation during
a period of suspension, and, if removed, will be disqualified from holding another
judicial office and will not be eligible for retirement compensation.
Clarifying that judges suspended for temporary physical or mental incapacity will
continue to receive compensation.
Specifying that no person may disclose information obtained from Commission
proceedings or papers and that Commission papers are not subject to disclosure
under the State public records laws.
Authorizing the Commission to issue confidential letters of caution, public
reprimands, and advisory opinions to judges.
The provision allowing filing by electronic means became effective August 3, 2006, and
applies to all matters filed with the courts on or after the date that the Supreme Court adopts
rules for electronic filing. The provision permitting the Judicial Department to require its
employees, contractors, and volunteers to consent to criminal history background checks became
effective October 1, 2006. The provisions allowing mediation for abused and neglected juveniles,
setting the minimum number of magistrates for each county at the current allotment, and
changing the effective date for the increase in juror fees became effective July 1, 2006. The
changes to the statutes governing the Judicial Standards Commission become effective January
1, 2007. The remainder of this act became effective August 3, 2006. ( BK)
Modernize Bail Bondsman Registration
S. L. 2006- 188 ( SB 846). See Occupational Boards and Licensing.
Chapter 7 Courts, Justice, and Corrections
Page 33
Legislative Research Commission/ Red Light Camera Study
S. L. 2006- 189 ( SB 1442). See Transportation.
Office of Administrative Hearings/ Rules Review Commission
Provisions
S. L. 2006- 221, Sec. 20 ( SB 198, Sec. 20). See State Government.
Protect Children/ Sex Offender Law Changes
S. L. 2006- 247 ( HB 1896). See Criminal Law and Procedure.
Governor's Driving While Impaired Task Force
Recommendations
S. L. 2006- 253 ( HB 1048). See Criminal Law and Procedure.
Studies
Legislative Research Commission
The Studies Act of 2006
S. L. 2006- 248, Secs. 2.1( a) and 2.1( j) ( HB 1723, Secs. 2.1( a) and 2.1( j)) authorize the
Legislative Research Commission to study:
State disclosure requirements in superior court discovery, including the identity of
informants, the victim's personal information, work product, open discovery in
noncapital postconviction cases, and any other related issues.
The impact of North Carolina court decisions on the definition of clear proceeds as it
relates to the funding and operation of traffic control photographic systems ( red light
cameras) by cities and towns.
These sections became effective August 16, 2006. ( TH)
New/ Independent Studies/ Commissions
House Task Force to Review and Resolve Conflict in North
Carolina Law over the Recovery of Costs in Civil Cases
S. L. 2006- 248, Sec. 12.1 ( HB 1723, Sec. 12.1) creates the House of Representatives Task
Force on the Recovery of Costs in Civil Cases to review and recommend a resolution to the
conflict in North Carolina law regarding the recovery of costs in a civil case. Specifically, the Task
Force must study the conflict between G. S. 6- 20 and G. S. 7A- 305. The Speaker of the House of
Representatives is to appoint six members of the House of Representatives, and three public
members: one member of the North Carolina Academy of Trial Lawyers, one member of the
North Carolina Association of Defense Attorneys, and one member of the North Carolina Bar
Chapter 7 Courts, Justice, and Corrections
Page 34
Association. The Task Force must report and make recommendations to the Speaker by
December 31, 2006.
This section became effective August 16, 2006. ( TH)
Referrals to Existing Commissions/ Committees
Parole Eligibility Report
S. L. 2006- 66, Sec. 16.5 ( SB 1741, Sec. 16.5) clarifies that the study on parole eligibility
must compare the amount of time served by each inmate who is eligible for parole on or before
July 1, 2007, to the time served by offenders under Structured Sentencing for comparable
crimes. It requires the Post- Release Supervision and Parole Commission to report to the Chairs of
the Senate and House of Representatives Appropriations Committees and the Chairs of the
Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety
( in addition to the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight
Committee). Finally, all elements of the report must be submitted by April 1, 2007 ( previously,
the submission dates were October 1, 2005, and February 1, 2006).
This section became effective July 1, 2006. ( BK)
Joint Legislative Corrections, Crime Control, and Juvenile
Justice Oversight Committee
S. L. 2006- 248, Sec. 54.2 ( HB 1723, Sec. 54.2) directs the Joint Legislative Corrections,
Crime Control, and Juvenile Justice Oversight Committee to study the expungement of criminal
records for non- violent felons and report its findings to the 2007 General Assembly.
This section became effective August 16, 2006. ( TH)
Referrals to Departments, Agencies, Etc.
Reports on Youth Development Centers
S. L. 2006- 66, Sec. 15.6 ( SB 1741, Sec. 15.6) provides that the Department of Juvenile
Justice and Delinquency Prevention ( Department) report to the Chairs of the Senate and House
of Representatives Appropriations Subcommittees on Justice and Public Safety, and the Joint
Corrections, Crime Control, and Juvenile Justice Oversight Committee, on the final recommended
staffing plan for youth development centers for the 2007- 2008 fiscal year. The stated intent of
the General Assembly is to consider funding new treatment positions only after receipt of the
report. The report is due by November 10, 2006, and must include:
The latest evaluation results for the Samarkand and Stonewall Jackson Youth
Development Centers.
The total recommended staffing by position classification, with staffing by shift for
each housing unit.
The total cost and cost per bed.
The primary basis for the number of staff by classification.
An identification of other states' treatment- based staffing models, how they compare
to the Department proposal, and any research on benefits and outcomes in those
jurisdictions.
The act also amends the provision that requires the Department to report on the
implementation of the treatment staffing model at Dobbs, Dillon, and Juvenile Evaluation Center
Youth Development Centers. The Department currently reports quarterly to the Chairs of the
Chapter 7 Courts, Justice, and Corrections
Page 35
Senate and House of Representatives Appropriations Subcommittees on Justice and Public
Safety; the act adds the Joint Corrections, Crime Control, and Juvenile Justice Oversight
Committee as a report recipient.
This section became effective July 1, 2006. ( HAP)
Proposal for Joint Use of Swannanoa Property/ Adult Female
Correctional Facility and Juvenile Youth Development Center
S. L. 2006- 66, Sec. 16.8 ( SB 1741, Sec. 16.8) requires the Department of Correction and
the Department of Juvenile Justice and Delinquency Prevention to prepare a joint report
regarding the proposed joint use of the Swannanoa property. The report must evaluate whether
it is feasible to use the facility to establish an adult female correctional center and to continue to
operate a juvenile youth development center.
The report must be submitted to the Joint Legislative Commission on Governmental
Operations and the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight
Committee by November 10, 2006. The report must include all of the following:
The total costs for the project over a five- year period, including operating costs,
repair and renovation costs, and the anticipated source of funding for those costs.
The number and type of positions to be transferred from the Department of Juvenile
Justice and Delinquency Prevention to the Department of Correction for the project.
The plan to employ existing Swannanoa Valley Youth Development Center employees
by the Department of Correction.
There will be no transfer of any property or positions between agencies prior to
consultation with the Joint Legislative Commission on Governmental Operations and the receipt
of the report.
This section became effective July 1, 2006. ( BK)
For a complete list of the studies and reports authorized by the 2006 Session of the
2005 General Assembly, please refer to the Appendix contained in this publication.
Chapter 7 Courts, Justice, and Corrections
Page 36
Chapter 8 Criminal Law and Procedure
Page 37
Chapter 8
Criminal Law and Procedure
Brenda Carter ( BC), Trina Griffin ( TG), Jeff Hudson ( JH), Howard Alan Pell ( HAP),
Wendy Graf Ray ( WGR), Walker Reagan ( WR), Susan Sitze ( SS)
Enacted Legislation
Phase Out Video Poker/ Except by Compact
S. L. 2006- 6 ( SB 912), as amended by S. L. 2006- 259, Sec. 6 ( SB 1523, Sec. 6), provides
for the phasing out of video gaming machines in North Carolina. Currently, legal games are
limited to three at any one location. On October 1, 2006, the number dropped to two, and on
March 1, 2007, only a single video gaming machine may be operated at one location. Possession
of a video gaming machine is illegal on or after July 1, 2007. Effective June 6, 2006, it became
illegal to move a machine from its registered location. Video gaming machines operated on
Indian lands under a valid Tribal- State Compact are exempted from the ban.
Businesses that assemble, repair, or provide other services for machines that will be
operated out of State or on Indian lands may lawfully possess video gaming machines. The
following video gaming machines are also exempt: games that do not emit, issue, display, print
out, or otherwise record any receipt, paper, coupon, token, or other form of record which is
capable of being redeemed, exchanged, or repurchased for cash, cash equivalent, or prizes, or
award free replays.
The provisions of this act are effective as noted above. The remainder of the act became
effective June 6, 2006. ( HAP)
Insurance Technical Corrections
S. L. 2006- 105, Sec. 2.1 ( SB 615, Sec. 2.1), amends G. S. 20- 45( c) to delete license and
registration plates from the list of items a law enforcement officer is required to retain pending
the entry of final judgment in a related criminal proceeding.
This section became effective July 13, 2006. ( SS)
Amend the Forfeiture of Property Rights Law
S. L. 2006- 107 ( SB 1378). See Civil Law and Procedure.
Protection of Animals
S. L. 2006- 113 ( HB 2098). See Agriculture and Wildlife.
Seat Belt Use Enhancements
S. L. 2006- 140 ( SB 774). See Transportation.
No Prayer for Judgment/ Bus Stop Arm Violation
S. L. 2006- 160 ( HB 2880). See Courts, Justice, and Corrections.
Chapter 8 Criminal Law and Procedure
Page 38
Disorderly Conduct/ Funeral/ Military Services
S. L. 2006- 169 ( SB 1833) amends the disorderly conduct statute to prohibit disorderly
conduct within 300 feet of a funeral, memorial service, or the family's processional route to the
funeral or memorial service. The act also makes it unlawful for a person to engage in certain
types of conduct within 300 feet of the building or location where a military funeral or memorial
service is being held. The conduct is prohibited one hour before, during, and one hour following
the service, procession or burial.
The type of conduct prohibited includes:
Displaying any visual image that conveys fighting words or actual or imminent
threats of harm directed to any person or property associated with the funeral,
memorial service, or processional route.
Uttering loud, threatening, or abusive language or singing, chanting, whistling, or
yelling with or without noise amplification in a manner that would tend to impede,
disrupt, disturb, or interfere with a funeral, memorial service, or processional route.
Attempting to block or blocking pedestrian or vehicular access to the ceremonial site
or location being used for a funeral or memorial.
A first violation of this act is a Class 2 misdemeanor. A second violation is a Class 1
misdemeanor. A third or subsequent violation is a Class I felony.
This act becomes effective December 1, 2006, and applies to offenses committed on or
after that date. ( SS)
Cell Phone Use by Drivers under 18 Prohibited
S. L. 2006- 177 ( SB 1289). See Transportation.
Assault Handicapped/ Increase Penalty
S. L. 2006- 179 ( SB 488) increases the penalty for committing assault or battery upon a
handicapped person from a Class 1 to a Class A1 misdemeanor. The range of punishment for a
Class 1 misdemeanor is a minimum of 1 to 45 days of community service with a maximum of up
to 120 days active, depending on the person's prior record. The range of punishment for a Class
A1 misdemeanor is 1 to 150 days, with the possibility of an active sentence even if the person
has no prior convictions.
This act becomes effective December 1, 2006, and applies to offenses committed on or
after that date. ( TG)
Strengthen Neighborhood Watch Programs
S. L. 2006- 181 ( HB 1120) authorizes cities and counties to establish neighborhood crime
watch programs. The act also creates a Class 1 misdemeanor for harassing someone for
participating in a neighborhood crime watch program or activity, or actively participating in an
ongoing criminal investigation.
The criminal offense created in this act becomes effective December 1, 2006. The
remainder of this act became effective August 1, 2006. ( SS)
Establish North Carolina Innocence Inquiry Commission
S. L. 2006- 184 ( HB 1323). See Courts, Justice, and Corrections.
Chapter 8 Criminal Law and Procedure
Page 39
Methamphetamine Lab Prevention Act
S. L. 2006- 186 ( SB 686) amends the restrictions on the purchase and sale of
pseudoephedrine products in order to comply with federal law, and to make other conforming
changes. The act makes the following changes:
Requires that pseudoephedrine products in the form of a tablet, caplet, or gel cap be
offered for sale only in blister packages.
With regard to the statutorily required language to be included in a form attesting to
a customer's knowledge of and adherence to the restrictions on pseudoephedrine
sales, the act allows a retailer who opts to obtain a customer's signature
electronically to put the statutory language on a sign next to the device on which the
electronic signature will be obtained ( rather than include the full statement
electronically). If the retailer chooses to display the statement on a sign, the retailer
must: ( i) instruct the purchaser to read the statement prior to signing, and ( ii)
include on the electronic form for signature language that indicates the purchaser
has read and understood the full statement.
Changes the limit on the amount of pseudoephedrine that may be purchased per
calendar day from 6 grams to 3.6 grams, in conformance with federal law.
With regard to pseudoephedrine products that are in the form of liquids, liquid
capsules, gel capsules, or certain pediatric products, the act deletes a requirement
that a retailer post signage containing statutorily mandated language in the area of a
store where these products are offered for sale ( except as to those products for
which the Commission for Mental Health, Developmental Disabilities, and Substance
Abuse Services (" Commission") issues an order otherwise).
Creates a new statute that explicitly states that although pseudoephedrine products
that are in the form of liquids, liquid capsules, gel capsules, and certain pediatric
products are not subject to the requirements of Article 5D of Chapter 90 of the
General Statutes ( unless the Commission issues an order otherwise), they are still
subject to the requirements of the federal Combat Methamphetamine Act of 2005.
The provision clarifying the applicability of federal law to products otherwise exempt from
the provisions of the Article became effective September 30, 2006. The remainder of this act
became effective August 3, 2006. ( SS)
Protect Children/ Sex Offender Law Changes
S. L. 2006- 247 ( HB 1896) makes several changes to the sex offender registration
statutes, creates several new criminal offenses, imposes global positioning systems ( GPS)
monitoring requirements on certain offenders, and requires the Division of Motor Vehicles to
check the National Sex Offender Public Registry prior to issuing a drivers license to certain
applicants.
Sex Offender Registration Changes. - There are two established sex offender
registration programs in North Carolina: the Sex Offender and Public Protection Registration
Program, with a registration period of 10 years, and the Sexually Violent Predator Registration
Program, with a lifetime registration requirement. A person who is required to register must
provide certain information, as well as a current photograph and fingerprints, to the sheriff in the
person's county of residence. Every year, the offender is required to verify that information by
mail. In addition, the offender must provide to the sheriff, within 10 days and in writing, any
changes in the offender's residence, academic status, or employment status at an institution of
higher education. An offender's failure to perform any of the registration, verification, or notifi-cation
requirements as required by law is a Class F felony. The Department of Justice maintains
the registry and the information contained on the registry is public.
Chapter 8 Criminal Law and Procedure
Page 40
This act makes several changes related to the registration requirements. Unless
otherwise noted, these changes become effective December 1, 2006, and apply to offenses
committed on or after that date.
It adds two criminal offenses to the list of offenses requiring registration on the sex
offender registry: statutory rape of a person who is 13, 14, or 15 years old by a
person who is at least 6 years older, and subjecting or maintaining a person in sexual
servitude. Under current law, there are two statutory rape offenses: ( i) the statutory
rape of a person who is 13, 14, or 15 years old by a person who is at least six years
older than the victim is a Class B1 felony, ( ii) the statutory rape of a person who is
13, 14, or 15 years old by a person who is more than four years older but less than
six years older than the victim is a Class C felony. This act adds only the Class B1
offense of statutory rape to the list of offenses requiring registration. A person
convicted of the Class C statutory rape is not required to register. Prior to this
change neither statutory rape offense required registration.
It requires a person who moves to North Carolina to register in North Carolina if the
person had to register as a sex offender in another state and without regard to
whether the offense would have required registration if it had been committed in
North Carolina.
It clarifies that an offender's initial registration must be done in person at the
sheriff's office.
It also requires that verification, notice of address change, notice of change in
academic status, and notice of change in employment status at an institution of
higher education all be done in person at the sheriff's office. Prior to this change,
these requirements could be performed by mail.
It requires an offender to verify his or her registration information on a semiannual
basis. It also requires juvenile court counselors to provide verification information on
behalf of juvenile registrants, by mail, semiannually. Under prior law, verification was
required only on an annual basis.
It requires an offender to notify the sheriff in the offender's county of registration
when the offender will be working for a specified period of time in another county
and will maintain a temporary residence in that county, which may include a hotel or
other transient lodging. The sheriff is then required to notify the Department of
Justice, which will, in turn, notify the sheriff of the county in which the offender will
be working. This provision becomes effective June 1, 2007.
It requires an offender to notify the sheriff in person of the intent to move out of
state at least 10 days before the departure date. The person is required to provide,
in writing, the address, municipality, county, and state of intended residence.
It requires the sheriff to provide an offender with written proof of registration.
It authorizes the sheriff to require an offender to verify his information more
frequently than otherwise required and to take a photograph of an offender if the
current photograph on file no longer provides a true and accurate likeness. If the
sheriff requests that an offender appear in person at the sheriff's office to be photo-graphed,
he must appear within 72 hours. Willful failure to do so is a Class 1
misdemeanor.
It requires a registered offender to petition the court in order to terminate
registration. Under current law, registration on the 10- year registry terminates
automatically at the end of 10 years. Under this act, the court may terminate
registration if ( i) the petitioner has not been arrested for any crime that would
require registration since completing his sentence, ( ii) the relief complies with any
federal standards ap
Object Description
Description
| Title | Summaries of substantive ratified legislation... General Assembly... |
| Date | 2006 |
| Description | 2006 |
| Digital Characteristics-A | 1.3 KB; 262 p. |
| Digital Format |
application/pdf |
| Pres Local File Path-M | \Preservation_content\StatePubs\pubs_borndigital\images_master\ |
| Full Text | SUMMARIES OF SUBSTANTIVE RATIFIED LEGISLATION - 2006 SUMMARIES OF SUBSTANTIVE RATIFIED LEGISLATION 2005 GENERAL ASSEMBLY 2006 REGULAR SESSION RESEARCH DIVISION N. C. GENERAL ASSEMBLY NOVEMBER 2006 350 copies of this document were published at an estimated cost of or about $ 8.50 per copy. November 2006 To the Members of the 2006 Session of the 2005 General Assembly: This publication contains summaries of all substantive legislation of general applicability and certain local legislation having general import from the 2006 Regular Session. Most local acts are not analyzed in this publication. Significant appropriations matters related to the subject area specified are also 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. This year we have included in the appendix a list of the studies and reports authorized by the 2006 General Assembly. 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: Dee Atkinson, Cindy Avrette, Brenda Carter, Drupti Chauhan, Erika Churchill, Karen Cochrane- Brown, Judy Collier, Tim Dodge, Bill Gilkeson, George Givens, Kory Goldsmith, Trina Griffin, Tim Hovis, Jeff Hudson, Denise Huntley, Shirley Iorio, Sara Kamprath, Jeff Hudson, Brad Krehely, Theresa Matula, Jennifer McGinnis, Joe Moore, Jennifer Mundt, Shawn Parker, Howard Alan Pell, Giles S. Perry, Ben Popkin, Wendy Graf Ray, Walker Reagan, Barbara Riley, Steve Rose, and Susan Sitze. Canaan Huie, Dan Ettefagh, and Emily Johnson of the Bill Drafting Division and Martha Walston, of the Fiscal Research Division also contributed to this document. Jennifer McGinnis is chief editor of this year’s publication, and Hal Pell is co- editor. Lucy Anders, Brad Krehely, and Jennifer Mundt 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 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 document is also available on the World Wide Web. Go to the General Assembly’s homepage at http:// www. ncga. state. nc. us. Click on " Legislative Publications." It is listed under Research. Each summary is hyperlinked to the final bill text, the bill history, and any applicable fiscal note. It is hoped that this document 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, Terrence D. Sullivan Director of Research Guide to Staff Initials ( BC) Brenda Carter ( BG) Bill Gilkeson ( BO) Brad Krehely ( BP) Ben Popkin ( BR) Barbara Riley ( CA) Cindy Avrette ( CH) Canaan Huie ( DA) Dee Atkinson ( DE) Dan Ettefagh ( DC) Drupti Chauhan ( DH) Denise Huntley ( EC) Erika Churchill ( EJ) Emily Johnson ( GG) George Givens ( GSP) Giles S. Perry ( HAP) Howard Alan Pell ( JC) Judy Collier ( JH) Jeff Hudson ( JHM) Joe Moore ( JLM) Jennifer McGinnis ( JM) Jennifer Mundt ( KCB) Karen Cochrane- Brown ( KG) Kory Goldsmith ( MW) Martha Walston ( SI) Shirley Iorio ( SK) Sara Kamprath ( SP) Shawn Parker ( SR) Steve Rose ( SS) Susan Sitze ( TD) Tim Dodge ( TG) Trina Griffin ( TH) Tim Hovis ( TM) Theresa Matula ( WGR) Wendy Graf Ray ( WR) Walker Reagan i TABLE OF CONTENTS CHAPTER 1: AGRICULTURE AND WILDLIFE...................................................... 1 ENACTED LEGISLATION .................................................................................................. 1 Agriculture ................................................................................................................ 1 Animals and Wildlife................................................................................................. 3 STUDIES........................................................................................................................ 4 Legislative Research Commission ............................................................................ 4 Referrals to Departments, Agencies, Etc. ................................................................. 5 CHAPTER 2: ALCOHOLIC BEVERAGE CONTROL............................................. 7 ENACTED LEGISLATION .................................................................................................. 7 CHAPTER 3: CHILDREN AND FAMILIES............................................................... 9 ENACTED LEGISLATION .................................................................................................. 9 STUDIES....................................................................................................................... 10 Legislative Research Commission .......................................................................... 10 New/ Independent Studies/ Commissions.................................................................. 10 CHAPTER 4: CIVIL LAW AND PROCEDURE....................................................... 11 ENACTED LEGISLATION ................................................................................................ 11 CHAPTER 5: COMMERCIAL LAW AND CONSUMER PROTECTION........... 13 ENACTED LEGISLATION ................................................................................................ 13 CHAPTER 6: CONSTITUTION AND ELECTIONS ............................................... 19 ENACTED LEGISLATION ................................................................................................ 19 CHAPTER 7: COURTS, JUSTICE, AND CORRECTIONS.................................... 29 ENACTED LEGISLATION ................................................................................................ 29 STUDIES....................................................................................................................... 33 Legislative Research Commission .......................................................................... 33 New/ Independent Studies/ Commissions.................................................................. 33 Referrals to Existing Commissions/ Committees ..................................................... 34 Referrals to Departments, Agencies, Etc. ............................................................... 34 CHAPTER 8: CRIMINAL LAW AND PROCEDURE............................................. 37 ENACTED LEGISLATION ................................................................................................ 37 CHAPTER 9: EDUCATION........................................................................................ 49 ENACTED LEGISLATION ................................................................................................ 49 Public Schools......................................................................................................... 49 Higher Education.................................................................................................... 56 Community Colleges ............................................................................................... 57 Universities ............................................................................................................. 58 ii STUDIES....................................................................................................................... 62 New/ Independent Studies/ Commissions.................................................................. 62 Referrals to Existing Commissions/ Committees ..................................................... 63 Referrals to Departments, Agencies, Etc. ............................................................... 63 CHAPTER 10: ENVIRONMENT AND NATURAL RESOURCES........................ 67 ENACTED LEGISLATION ................................................................................................ 67 Animal Waste Management .................................................................................... 67 Climate Change ...................................................................................................... 67 Coastal Development.............................................................................................. 67 Environmental Health............................................................................................. 68 Fisheries.................................................................................................................. 69 Miscellaneous ......................................................................................................... 69 Parks and Public Spaces......................................................................................... 74 Solid/ Hazardous Waste........................................................................................... 74 Water Quality/ Quantity/ Groundwater .................................................................... 75 Renewable Energy/ Alternative Fuels...................................................................... 82 STUDIES....................................................................................................................... 83 New/ Independent Studies/ Commissions.................................................................. 83 Referrals to Existing Commissions/ Committees ..................................................... 84 Referrals to Departments, Agencies, Etc. ............................................................... 85 CHAPTER 11: FINANCE ............................................................................................ 87 ENACTED LEGISLATION ................................................................................................ 87 STUDIES....................................................................................................................... 99 Referrals to Existing Commissions/ Committees ..................................................... 99 CHAPTER 12: HEALTH AND HUMAN SERVICES ............................................ 101 ENACTED LEGISLATION .............................................................................................. 101 STUDIES..................................................................................................................... 111 Legislative Research Commission ........................................................................ 111 New/ Independent Studies/ Commissions................................................................ 111 Referrals to Existing Commissions/ Committees ................................................... 112 Referrals to Departments, Agencies, Etc. ............................................................. 113 CHAPTER 13: INSURANCE..................................................................................... 115 ENACTED LEGISLATION .............................................................................................. 115 Auto Insurance ...................................................................................................... 116 Health and Life Insurance .................................................................................... 117 Workers' Compensation/ Unemployment Insurance.............................................. 119 Miscellaneous ....................................................................................................... 120 STUDIES..................................................................................................................... 120 Legislative Research Commission ........................................................................ 120 New/ Independent Studies/ Commissions................................................................ 120 iii CHAPTER 14: LABOR AND EMPLOYMENT...................................................... 123 ENACTED LEGISLATION .............................................................................................. 123 General Labor and Employment........................................................................... 123 Governmental Employment................................................................................... 124 STUDIES..................................................................................................................... 127 Legislative Research Commission ........................................................................ 127 New/ Independent Studies/ Commissions................................................................ 128 Referrals to Existing Commissions/ Committees ................................................... 129 CHAPTER 15: LOCAL GOVERNMENT................................................................ 131 ENACTED LEGISLATION .............................................................................................. 131 CHAPTER 16: MILITARY, VETERANS', AND INDIAN AFFAIRS .................. 135 ENACTED LEGISLATION .............................................................................................. 135 Military and Veterans' Affairs .............................................................................. 135 Indian Affairs ........................................................................................................ 136 CHAPTER 17: OCCUPATIONAL BOARDS AND LICENSING......................... 137 ENACTED LEGISLATION .............................................................................................. 137 STUDIES..................................................................................................................... 143 Referrals to Existing Commissions/ Committees ................................................... 143 CHAPTER 18: PROPERTY, TRUSTS, AND ESTATES ....................................... 145 ENACTED LEGISLATION .............................................................................................. 145 CHAPTER 19: RESOLUTIONS................................................................................ 149 Joint Resolutions................................................................................................... 149 CHAPTER 20: RETIREMENT ................................................................................. 153 ENACTED LEGISLATION .............................................................................................. 153 CHAPTER 21: SENIOR CITIZENS ......................................................................... 155 ENACTED LEGISLATION .............................................................................................. 155 STUDIES..................................................................................................................... 158 Legislative Research Commission ........................................................................ 158 Referrals to Existing Commissions/ Committees ................................................... 158 Referrals to Departments, Agencies, Etc. ............................................................. 159 CHAPTER 22: STATE GOVERNMENT................................................................. 161 ENACTED LEGISLATION .............................................................................................. 161 Agencies and Departments ................................................................................... 161 Capital Facilities and State Property ................................................................... 165 Boards, Commissions, and Committees................................................................ 166 Budget Process and Use of State Funds ............................................................... 168 Purchase and Contract ......................................................................................... 171 iv Miscellaneous ....................................................................................................... 171 CHAPTER 23: TRANSPORTATION....................................................................... 173 ENACTED LEGISLATION .............................................................................................. 173 Department of Transportation .............................................................................. 173 Drivers Licenses.................................................................................................... 175 License Plates/ Vehicle Registration ..................................................................... 176 Motor Vehicle Law................................................................................................ 177 Toll Roads ............................................................................................................. 178 Other ..................................................................................................................... 178 STUDIES..................................................................................................................... 179 Legislative Research Commission ........................................................................ 179 New/ Independent Studies/ Commissions................................................................ 179 Referrals to Existing Commissions/ Committees ................................................... 180 Referrals to Departments, Agencies, Etc. ............................................................. 180 CHAPTER 24: UTILITIES ........................................................................................ 182 ENACTED LEGISLATION .............................................................................................. 182 STUDIES..................................................................................................................... 182 CHAPTER 25: VETOED LEGISLATION............................................................... 185 APPENDIX: STUDIES AND REPORTS AUTHORIZED BY 2005 SESSION ............................................................................ ERROR! BOOKMARK NOT DEFINED. STUDIES & REPORTS INDEX................................. ERROR! BOOKMARK NOT DEFINED. INDEX............................................................... ERROR! BOOKMARK NOT DEFINED. Chapter 1 Agriculture and Wildlife Page 1 Chapter 1 Agriculture and Wildlife Erika Churchill ( EC), Tim Dodge ( TD), Barbara Riley ( BR) Enacted Legislation Agriculture Amend Taxation of Logging Machinery S. L. 2006- 19 ( HB 1938). See Finance. Department of Commerce Report on Agribusiness Funds S. L. 2006- 66, Sec. 12.7 ( SB 1741, Sec. 12.7) requires the Department of Commerce ( Department) to report by May 1, 2007, to the House Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division, on all funds available for companies and organizations designed to promote agribusiness in the State. The report must include: Information on all Department economic incentive funds, including Commerce State Aid funds. Information on the number of agribusinesses and organizations that applied for State funds through the Department or other organizations. An evaluation, to be conducted with the Department of Agriculture and Consumer Services, of the use of economic incentive programs designed specifically for agribusiness. A plan to implement economic incentive programs designed specifically for agribusinesses and the estimated cost of the programs, including sources of funding such as federal, State, and grant funds. The Department of Agriculture and Consumer Services, the Rural Economic Development Center, the University system, and State agencies are to provide the Department of Commerce with information as requested for the report. This section became effective July 1, 2006. ( BR) Agrarian Growth Zones – Bill Lee S. L. 2006- 66, Sec. 24.16 ( SB 1741, Sec. 24.16). See Finance. Community Conservation Assistance Program S. L. 2006- 78 ( HB 2129). See Environment and Natural Resources. Enhance Embargo Authority/ Protect Food Supply S. L. 2006- 80 ( HB 2200) authorizes the Secretary of Environment and Natural Resources or a local health director to exercise embargo authority concerning food or drink in an establish-ment ( restaurants and hotels) subject to regulation by the Department of Environment and Chapter 1 Agriculture and Wildlife Page 2 Natural Resources ( DENR), or subject to an investigation by the local health director in the case of communicable diseases. When such action is taken, the Department of Agriculture and Consumer Services ( Department) must be notified. It is unlawful to dispose of the embargoed food or drink without proper authority. G. S. 130A- 25 provides that a violation of Chapter 130A of the General Statutes is a misdemeanor. G. S. 14- 3 provides that an unclassified misdemeanor is a Class 1 misdemeanor. If no specific punishment is prescribed and the offense is infamous, done in secrecy and malice, or with deceit and intent to defraud, it is a Class H felony. The act also requires the Department, DENR, and the Department of Health and Human Services to jointly develop a plan to protect the food supply from intentional contamination. The study required in Section 2 of the act became effective July 10, 2006. The remainder of this act becomes effective December 1, 2006 and applies to offenses committed on or after that date. ( BR) Various Transportation/ Motor Vehicle Law Changes S. L. 2006- 135 ( HB 1399). See Transportation. Dairy Stabilization and Growth Program S. L. 2006- 139 ( SB 1156) adds the North Carolina Dairy Stabilization and Growth Act to Chapter 106 of the General Statutes. The purpose of the act is to establish a price floor for milk that would enable dairy farmers to cover their production costs, and in doing so, reverse the decline in the dairy industry in the State. The program provides for payments from the Dairy Stabilization and Growth Fund to North Carolina dairy farmers when the price of milk per hundredweight falls below the average United States Department of Agriculture federal milk market order Class I price mover for the past 10 years less 50 cents. To be eligible to receive payments, a Grade A milk producer must be in compliance with the federal Grade A milk regulations. Non- Grade A producers must be in compliance with Article 26 of Chapter 106 of the General Statutes and the rules implementing that article. The act also directs the Commissioner of Agriculture to file an annual report with the Chairs of the House Appropriations Subcommittee on Natural and Economic Resources and the Senate Appropriations Subcommittee on Natural and Economic Resources, the Chair of the House Agriculture Committee and the Chair of the Senate Committee on Agriculture, Environment and Natural Resources. The report is to cover the short- term and long- term problems of maintaining a viable dairy industry in North Carolina, ways to sustain the dairy industry in the State, the effectiveness of the dairy stabilization and growth program in achieving it goals, including maintaining a local supply of fresh milk for processing and attracting new farmers into dairying and preserving green space. This act became effective July 19, 2006. ( BR) State Energy Use Planning/ Energy Assistance S. L. 2006- 206, Part III ( SB 2051, Part III). See Environment and Natural Resources. Exempt Agri- Tourism from Privilege Tax S. L. 2006- 216 ( HB 143). See Finance. Chapter 1 Agriculture and Wildlife Page 3 Revise 2006 Budget Act/ Tobacco Escrow Assignments S. L. 2006- 221, Sec. 3A ( SB 198, Sec. 3A) adds Section 6.19( d) to the Budget Act, S. L. 2006- 66. This section amends S. L. 2006- 203, which, in part, recodified the Executive Budget Act as Chapter 143C of the General Statutes. One section of Article 1 of Chapter 143 that should have been transferred in the recodification, was inadvertently omitted. Section 6.19( d) adds that section to Chapter 143C as G. S. 143C- 9.3A. The statute allows tobacco product manufacturers to make an irrevocable assignment of funds placed in escrow pursuant to the provisions of G. S. 66- 281, which require tobacco product manufacturers that did not participate in the Master Settle-ment Agreement to place funds in escrow based upon cigarette sales in the State. This section became effective July 1, 2006. ( BR) Animals and Wildlife Protection of Animals S. L. 2006- 113 ( HB 2098) amends Article 1 of Chapter 19A of the General Statutes, which provides a civil remedy for animal cruelty. The act clarifies that when a preliminary injunction is issued giving the plaintiff possession of an animal, the plaintiff takes possession as custodian. As custodian, the plaintiff may obtain veterinary care for the animal. The plaintiff must attempt to consult with the defendant regarding such care; however, the plaintiff does not need the defendant's consent to act. Plaintiff, however, may not have an animal euthanized without the written consent of the defendant, or a court order upon findings that the animal is terminally ill or injured. If the plaintiff prevails in the civil action, the court may include the costs of care for the animal as part of the costs allowed to the plaintiff. The act also amends Article 6 of Chapter 19A of the General Statutes, which provides for the care of animals that have been used illegally. The law requires the owner of an animal that has been taken into custody in connection with an arrest for cruelty, violation of the dangerous dog statutes, or the commencement of a civil action by a county or municipality for cruelty, to deposit funds for the animal's care if an animal shelter takes custody of the animal pending disposition of the case. The amendment also provides for a hearing to determine the need to take the animal into custody during the pendency of the litigation. A person who is acquitted of charges, or found not to have committed animal cruelty in a civil action, is entitled to a refund of the deposit remaining after any withdrawals from the deposit. Finally, the act amends the dog fighting criminal statute to provide that it applies to fights between dogs and other animals, as well as fights between two or more dogs. The law, however, does not prohibit the use of dogs in the lawful taking of animals under the jurisdiction of the Wildlife Resources Commission. This act becomes effective December 1, 2006 and applies to actions commenced on or after that date. ( BR) Amend Boating Safety/ Vessel Titling Law S. L. 2006- 185 ( SB 948) makes the following changes to the laws related to boating safety and vessel titling: Fee Increases. - Increases the fee for a transfer of certificate of title from $ 10 to $ 20. Increases the fee for issuance of a duplicate certificate of number from $ 2 to $ 5. Boating Safety. - Formalizes the framework for the Wildlife Resources Commission ( WRC) to implement and coordinate boating safety education courses, to designate boating Chapter 1 Agriculture and Wildlife Page 4 safety instructors, and to issue boating safety certification cards to persons who complete an approved course. Clarifies boating safety requirements by authorizing the WRC to adopt rules to conform to the Federal Boat Safety Act of 1971 and federal regulations adopted pursuant to the Act. Amends the incident reporting requirements for operators of a vessel that is involved in a collision, accident, casualty or other occurrence involving a vessel to require reporting of disappearance indicating death or injury, in addition to other reporting requirements, and to raise the physical damage threshold for reporting accidents from $ 500 to $ 2,000. Provides that law enforcement vessels may use a blue flashing light and sirens whenever they are engaged in law enforcement or public safety activities. Establishes penalties for operating a siren or blue light on a vessel that is not a law enforcement vessel or other official emergency vessel. Requires a vessel to slow to a no- wake speed when passing near a law enforcement vessel that is displaying a flashing blue light. Vessel Titling. - Requires the titling of all motorized vessels or sailboats 14 feet or longer and any personal watercraft at the time an application for a new certificate of number in this State is submitted and at the time ownership of a vessel is being transferred. The act also allows ( but does not require) the titling of other vessels. Replaces the term " vessel registration" with " certificate of number" as used to provide identification numbers for vessels registered in the State. A certificate of number is issued on an annual basis and serves as a registration number for vessels. Establishes a mechanism for canceling the certificate of title or certificate of number for destroyed or junked vessels and directs WRC to adopt rules to establish a mechanism by which a person may acquire ownership of an abandoned vessel. Clarifies the responsibilities and requirements for vessel agents, removes the requirement that vessel agents provide a security bond, and adds penalty provisions for actions taken by vessel agents that constitute criminal activity. Makes numerous additional clarifying, conforming, and technical changes. This act becomes effective January 1, 2007, and applies to offenses committed on and after that date. ( TD) Amend Environment and Natural Resources Laws S. L. 2006- 255, Secs. 6, 8, and 9 ( SB 1587, Secs. 6, 8, and 9). See Environment and Natural Resources. Studies Legislative Research Commission Membership of the Wildlife Resources Commission S. L. 2006- 248, Sec. 2.1( 9) q. ( HB 1723, Sec. 2.1( 9) q.) provides that the Legislative Research Commission may study the membership of the Wildlife Resources Commission. This section became effective August 16, 2006. ( BR) Chapter 1 Agriculture and Wildlife Page 5 Referrals to Departments, Agencies, Etc. Sunday Hunting S. L. 2006- 248 Part XIII ( HB 1723, Part XIII) directs the Wildlife Resources Commission ( Commission) to study the issue of allowing hunting on Sundays at a limited number of State game lands. In conducting its study, the Commission must consider, but is not limited to, the following issues: Individual game land suitability for Sunday hunting. Allowable hunting activities, including methods of taking and the use of dogs. Limiting hunting privileges to avoid conflict with religious services. The needs of persons pursuing non- hunting outdoor recreational activities. The Commission is to seek the input of representatives of interested parties, including landowners, conservation organizations, agricultural organizations, religious organizations, hunting clubs and organizations, and controlled hunting preserve operators. The Commission is to report its findings to the Joint Legislative Commission on Governmental Operations by March 15, 2007. This part became effective August 16, 2006. ( BR) Study Inherently Dangerous Animals S. L. 2006- 248, Part XXXII ( HB 1723, Part XXXII) directs the Department of Environment and Natural Resources, in consultation with the North Carolina Zoological Park and the Wildlife Resources Commission, to study the need to protect the public against the health and safety risks posed by inherently dangerous animals, and to propose a means of best providing that protection to the public, while also protecting the welfare of inherently dangerous animals. The Department is to report its findings to the General Assembly no later than the convening of the 2007 General Assembly. This part became effective August 16, 2006. ( BR) For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 1 Agriculture and Wildlife Page 6 Chapter 2 Alcoholic Beverage Control Page 7 Chapter 2 Alcoholic Beverage Control Brenda Carter ( BC), Denise Huntley ( DH), Howard Alan Pell ( HAP), Susan Sitze ( SS) Enacted Legislation Repeal Sunset of Open Container Law S. L. 2006- 66, Sec. 21.7 ( SB 1741, Sec. 21.7) repeals the expiration date of the State's open container law. The act makes it unlawful for a person to possess an alcoholic beverage other than in the unopened manufacturer's original container, or to consume an alcoholic beverage in the passenger area of a motor vehicle while the motor vehicle is on a highway or the right- of- way of a highway. An exception applies to motor homes and certain vehicles for hire. The provision became effective September 1, 2000 and was scheduled to expire on September 30, 2006. This section became effective July 1, 2006. ( BC) Aircraft Mechanics' Lien/ Winemaking S. L. 2006- 222, Part II ( SB 2010, Part II) provides for the licensing of commercial establishments in which customers may purchase ingredients and rent equipment, time, and space to make unfortified wine on the premises for the customer's personal and family use, similar to the existing brew- on- premises permit for making malt beverages. The permit holder is not permitted to engage in the actual production or manufacture of wine, except for testing equipment or recipes and samples. All wine produced must be removed from the premises by the customer. The fee for the permit is $ 400. This part became effective August 10, 2006. ( BC) Various Alcoholic Beverage Control Law Changes S. L. 2006- 227 ( HB 1025) makes various changes to the laws concerning alcoholic beverages. See summary for S. L. 2006- 222, Part II ( above). Wine Shipper Packager Permits. - The act authorizes the issuance of a wine shipper packager permit to a USDA- approved company specializing in warehousing and contract packaging. The holder of the permit may provide services for the warehousing, packaging, and shipment of wine on behalf of a winery. The fee for the permit is $ 100. University- Owned Golf Courses. - The act amends the law that restricts the sale of malt beverages and wine on the campus or property of public schools and colleges. The act provides an exception for any golf courses owned or leased by constituent institutions of The University of North Carolina and open to the public for use. ABC Sales to Rail Lines. - The act provides that any ABC- licensed wholesaler or retailer may sell or deliver malt beverages or wine to a rail line that carries at least 60,000 passengers annually. Wine Shop Permit Changes. - The act removes a provision that limited the sale of wine for on- premises consumption to those amounts remaining in opened bottles upon the conclusion of an authorized wine tasting, and that limited individual servings to 4 ounces per glass. The act exempts wine shops that do not prepare or sell food from certain sanitation regulations. Chapter 2 Alcoholic Beverage Control Page 8 Primary Source. - The act gives the ABC Commission authority to recognize the holder of a wine importer permit or nonresident wine vendor as a primary American source of supply for the wine of a winery. This requires that the wine importer or nonresident wine vendor establish that it has lawfully purchased the wine from the winery or its agent, and has been authorized by the winery to distribute the wine to wholesalers in the U. S. A wine importer may import and sell to wholesalers only wine for which it is a primary American source of supply, and a nonresident wine vendor may sell, deliver, and ship into this State only wine for which it is a primary American source of supply. A wine wholesaler must receive its wine from a primary American source of supply for the wine, or from another wholesaler when specified conditions are met. Distribution of Wine Taxes. - The act provides that, effective July 1, 2007, the Secretary of Revenue will credit $ 200,000 to the Department of Commerce on a quarterly basis from the net proceeds of the excise tax collected on unfortified wine. These funds are allocated to the North Carolina Wine and Grape Growers Council for promotion of the State's wine and grape industry and to contract for research and development services to improve viticulture and enology practices in the State. This act became effective August 10, 2006. ( BC) Governor's Driving While Impaired Task Force Recommendations S. L. 2006- 253, Sec. 3 ( HB 1048, Sec. 3). See Criminal Law and Procedure. For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 3 Children and Families Page 9 Chapter 3 Children and Families Drupti Chauhan ( DC), Erika Churchill ( EC), Ben Popkin ( BP), Wendy Graf Ray ( WGR) Enacted Legislation Partnership for Children/ Board Appointment S. L. 2006- 20 ( SB 329). See State Government. Clarify School Admissions Procedures S. L. 2006- 65 ( HB 1074). See Education. Rewrite Special Education Laws S. L. 2006- 69 ( HB 1908). See Education. Schoolchildren's Health Act S. L. 2006- 143 ( HB 1502). See Education. Departments of Social Services Disclosure of Information/ Abuse/ Neglect S. L. 2006- 205 ( SB 1216). See Health and Human Services. Public Housing Authority/ Target Incomes S. L. 2006- 219 ( HB 767). See Health and Human Services. Vision Care Program Changes S. L. 2006- 240 ( HB 2699). See Health and Human Services. Protect Children/ Sex Offender Law Changes S. L. 2006- 247, Sec. 11 ( HB 1896, Sec. 11). See Criminal Law and Procedure. Chapter 3 Children and Families Page 10 Studies Legislative Research Commission Post- Adoption Contact S. L. 2006- 248, Sec. 2.1.( m) ( HB 1723, Sec. 2.1.( m)) states that the Legislative Research Commission may study the topic of post- adoption contacts and communications. This section became effective August 16, 2006. ( DC) New/ Independent Studies/ Commissions Smart Start and Child Care Funding Study S. L. 2006- 248, Part XXVI ( HB 1723, Part XXVI) creates the Smart Start and Child Care Funding Study Commission. The Commission must examine the funding of the North Carolina Partnership for Children and consider the current funding system, strategies for achieving full funding, funding equity among counties and local partnerships, and any other relevant information in providing services to young children and families. This part became effective August 16, 2006. ( DC) Study Commission on Day Care and Related Programs S. L. 2006- 248, Part LVI ( HB 1723, Part LVI) creates the Legislative Study Commission on Day Care and Related Programs. The purpose of the Commission is to ( i) assess the shortfalls and benefits of various day care and related programs, ( ii) consider needed adjustments and program consolidations to realize the maximum benefit to the State's children and families, ( iii) consider how day care and related programs affect economic development, and ( iv) review any other relevant issues. This part became effective August 16, 2006. ( DC) For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 4 Civil Law and Procedure Page 11 Chapter 4 Civil Law and Procedure Brenda Carter ( BC), Karen Cochrane- Brown ( KCB), Bill Gilkeson ( BG), Kory Goldsmith ( KG), Trina Griffin ( TG), Tim Hovis ( TH), Denise Huntley ( DH), Howard Alan Pell ( HAP), Wendy Graf Ray ( WGR), Walker Reagan ( WR), Steve Rose ( SR), Susan Sitze ( SS) Enacted Legislation Amend the Forfeiture of Property Rights Law S. L. 2006- 107 ( SB 1378) amends the " Slayer" statute found in Article 3 of Chapter 31A of the General Statutes to include a person who is found in a civil action brought within two years after the death of the decedent, to have willfully and unlawfully killed the decedent or procured the killing. This definition supplanted language in the statute that provided a " slayer" included a person ( i) found to have willfully and unlawfully killed the decedent in a civil action brought within one year of the death of the decedent, and ( ii) that died before being tried for the offense and settlement of the estate. The two- year period is tolled during any criminal action. The act clarifies that the burden of proof is on the party seeking to establish that the killing was willful and unlawful. The act also amends the definition of " slayer" to include a juvenile who is adjudicated delinquent by reason of committing an act that, if committed by an adult, would make the adult a principal or accessory before the fact of the willful and unlawful killing of another person. The act clarifies that the term “ slayer” does not include a person who is found not guilty by reason of insanity of being a principal or accessory before the fact of the willful and unlawful killing of another person. The act changes the law to allow a person whose culpable negligence causes the death of a decedent to succeed to any property passing by reason of the death of the decedent. Accordingly, a conviction for involuntary manslaughter would not result in a forfeiture of property rights. This act became effective July 13, 2006 and applies to property passing from decedents dying on or after that date. ( DH) Protection of Animals S. L. 2006- 113, Sec. 1 and 2 ( HB 2098, Sec. 1 and 2). See Agriculture and Wildlife. Motor Vehicle Self- Insurers S. L. 2006- 145 ( SB 277). See Insurance. Lapse in Liability Insurance S. L. 2006- 213 ( SB 881). See Insurance. Eminent Domain Restrictions S. L. 2006- 224 ( HB 1965). See Property, Trusts, and Estates. Chapter 4 Civil Law and Procedure Page 12 Unincorporated Nonprofit Association Act/ General Statutes Commission Technical Corrections S. L. 2006- 226 ( SB 1479). See Commercial Law and Consumer Protection. Increase Penalties for CAMA Violations S. L. 2006- 229 ( HB 1523). See Environment and Natural Resources. Trusts and Estates Technical Changes S. L. 2006- 259, Sec. 13 ( SB 1523, Sec. 13). See Property, Trusts, and Estates. Appellate Counsel in Civil Commitment Actions S. L. 2006- 264, Sec. 61 ( SB 602, Sec. 61). See Health and Human Services. For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 5 Commercial Law and Consumer Protection Page 13 Chapter 5 Commercial Law and Consumer Protection Karen Cochrane- Brown ( KCB), Tim Hovis ( TH), Denise Huntley ( DH), Wendy Graf Ray ( WGR), Walker Reagan ( WR), Steve Rose ( SR) Enacted Legislation Amend Transition Provisions Article 9/ Uniform Commercial Code S. L. 2006- 11 ( SB 1377) amends G. S. 25- 9- 705 to resolve a problem caused by possible different interpretations of this section as applied to a particular group of “ affected” UCC- 1 financing statements. The statute is part of the transition provisions from former Article 9 to the Revised Article 9 of the Uniform Commercial Code ( Chapter 25 of the General Statutes) which became effective July 1, 2001. Both articles cover security interests in personal property. The act adds a new subsection ( g), to provide that the lapse date of June 30, 2006, in subdivision ( c)( 2), does not apply to affected financing statements, and that a continuation statement with respect to an affected financing statement is effective if it is filed before the normal lapse date but no earlier than December 30, 2005, or six months before the normal lapse date, whichever is earlier. This change preserves the existing six- month window within which to file a continuation statement and also makes valid all continuations of affected financing statements filed during the time period beginning December 30, 2005, through June 30, 2006. The act clarifies that the changes made by the act do not make ineffective a continuation statement that was already filed and effective on the effective date of the act. This act became effective June 14, 2006. ( WR) S Corporation Income Tax Adjustments S. L. 2006- 17 ( HB 1898). See Finance. Enhance Embargo Authority/ Protect Food Supply S. L. 2006- 80 ( HB 2200). See Agriculture and Wildlife. Insurance Technical Corrections/ Manufacturers Licensing Law S. L. 2006- 105, Sec. 2.3 ( SB 615, Sec. 2.3) amends Article 12 of Chapter 20 of the General Statutes, Manufacturers Licensing Law. Existing law requires a new motor vehicle dealer, motor vehicle sales representative, manufacturer, factory branch, factory representative, distribu-tor, distributor branch, distributor representative, or wholesaler to obtain a license by filing an application with the Division of Motor Vehicles. As a condition of obtaining a license, a motor vehicle dealer, manufacturer, factory branch, distributor, distributor branch, or wholesaler must furnish a corporate surety bond of $ 50,000 for one established salesroom and $ 25,000 for each additional salesroom for motor vehicle dealers. For all others required to post a corporate surety bond, the amount of the bond is $ 50,000 for one place of business and $ 25,000 for each additional place of business. The bond may be cancelled only if the bonded person stops engaging in business or the license is denied, suspended, or revoked. Chapter 5 Commercial Law and Consumer Protection Page 14 This section allows cancellation of the corporate surety bond either for nonpayment of premium, or because of a " substantial and material misrepresentation or nondisclosure of a material fact" in obtaining or renewing the bond. Notice must be delivered or mailed to the license holder and the Commissioner of Motor of Vehicles not less than 30 days prior to cancellation. Notice must be given or mailed to the license holder by certified mail. The section also allows a corporate surety to refuse renewal of the bond 30 days prior to the premium anniversary date by giving 30- days written notice of nonrenewal to the license holder and the Commissioner of Motor Vehicles. Notice must be given or mailed to the license holder by certified mail. This section became effective October 1, 2006. ( TH) Revise Articles 1 and 7 of the Uniform Commercial Code S. L. 2006- 112 ( SB 1555) replaces current Article 1 of Chapter 25 of the General Statutes ( Uniform Commercial Code ( UCC)) with Revised Article 1 of the UCC. Article 1 contains provisions, including definitions, which apply throughout the UCC. The revised article reflects the substantial revisions made to other UCC articles over the last 20 years; updates the style; eliminates obsolete provisions; reorganizes in part; and makes clarifying and substantive changes, some of which are necessary to accommodate electronic commerce. The act replaces current Article 7 of Chapter 25 with Revised Article 7 of the UCC. Article 7 covers bills of lading and warehouse receipts. The revision also primarily reflects changes necessary to accommodate electronic documents. The act makes conforming amendments to other articles in Chapter 25 and to other sections in the General Statutes. The act also repeals Article 5 of Chapter 27 of the General Statutes, the former Uniform Warehouse Receipts Act, which contained the obsolete criminal provisions of the chapter. This act became effective October 1, 2006. ( WR) Debt Collection Licensing Changes S. L. 2006- 134 ( HB 1388) authorizes the Commissioner of Insurance ( Commissioner) to issue a collection agency permit to an alien, or non- US, corporation if the corporation is owned or majority- controlled by a parent entity that is incorporated or organized in the United States, and the alien corporation can service accounts held only by an affiliate or subsidiary of the parent entity. The act also requires that: The Department of Insurance be given notice if the alien corporation is sold. The alien corporation must file a bond of double the amount of a US corporation. The alien corporation must make records available to the Commissioner in North Carolina. The parent entity must agree to cure any violation committed by the alien corporation. Service of process on the parent entity is sufficient service of process on the alien corporation. The alien corporation must maintain a trust account with a bank located in the US or in a bank approved by the Commissioner. This act became effective October 1, 2006. ( KCB) Video Service Competition Act S. L. 2006- 151 ( HB 2047). See Finance. Chapter 5 Commercial Law and Consumer Protection Page 15 Service Members and Veterans/ Identity Theft S. L. 2006- 158 ( HB 2883). See Military, Veterans, and Indian Affairs. Amend Identity Theft Protection Act of 2005 S. L. 2006- 173 ( HB 1248) amends the identity theft protection laws enacted in 2005 in the following ways: Requires governmental entities that possess identifying information to notify affected parties and follow the same notification requirements applicable to non- governmental entities in the event that security is breached with regard to personal identifying information. Clarifies that identifying information held by a governmental entity that is segregated or redacted from a public record is not a public record. The record from which the identifying information is removed remains a public record. Prohibits a person from filing a document with the Secretary of State that contains identifying information, except under special circumstances. Adds documents filed with the Office of the Secretary of State to the list of public registries that must accept a document for recording, despite containing identifying information. Adds the Office of the Secretary of State to the list of public registries that are required to redact identifying information contained in their records when expressly requested to do so by the person whose identifying information is in the public record. Delays the effect of the law requiring governmental entities not to make identifying information available to the general public for certain records of the Office of the Secretary of State until July 1, 2007. The Office of the Secretary of State is directed to study the alternatives and costs for redacting identifying information on the Office's internet website and to report the results of its study to the Office of State Budget and Management and to the Joint Appropriations Subcom-mittee on General Government by February 1, 2007. The provision conforming the non- governmental notification requirements of personal identifying information to governmental entities became effective October 1, 2006. The remainder of the act became effective August 1, 2006. The provisions requiring the Secretary of State to redact identifying information contained in their records when expressly requested to do so by the person whose identifying information is in the public record expires July 1, 2007, the same date the Secretary of State is to have redacted all identifying information on its internet website. ( WR) Methamphetamine Lab Prevention Act S. L. 2006- 186 ( SB 686). See Criminal Law and Procedure. Used Motor Vehicle Dealer Courses S. L. 2006- 191 ( SB 729). See Occupational Boards and Licensing. Junk Faxes S. L. 2006- 207 ( SB 1295) prohibits the transmission of unsolicited facsimile advertise-ments to a person with whom the sender did not already have an " established business Chapter 5 Commercial Law and Consumer Protection Page 16 relationship." The act defines what constitutes an established business relationship between a seller and a consumer. The act would not prohibit the transmission of unsolicited facsimile advertisements when the sender and the recipient of the facsimile already have an established business relationship, but the facsimile would be required to include: the clear and conspicuous notice of the advertisement on the first page, directions for the recipient to place a request not to be sent similar advertisements, and a toll- free telephone or facsimile number to receive their " do not send" request. The act requires that the following identifying information be contained in all facsimile transmissions: the date and time sent, an identification of the sender of the message, and a telephone number of the sending business or person. The act would exempt certain non- profit professional or trade association transmissions from these identifying information requirements. Any person or entity receiving an unsolicited advertisement in violation of the act may bring any of the following actions in civil court: An action to enjoin further violations by the sender. An action to recover the following amounts from the sender: $ 500 for the first violation; $ 1,000 for the second violation; and $ 5,000 for the third and subsequent violations, within a two- year period. Violation of the act also would be an unfair and deceptive trade practice, which would provide additional remedies, including the possibility of treble damages. This act became effective September 1, 2006, and applies to offenses committed on or after that date. ( KCB) Cosmetic Art Definitions/ Exam Facilities S. L. 2006- 212 ( SB 489). See Occupational Boards and Licensing. Film Incentive Changes S. L. 2006- 220 ( HB 1522). See Finance. Aircraft Mechanics' Lien/ Winemaking S. L. 2006- 222, Part 1 ( SB 2010, Part 1) creates a procedure under which an aircraft mechanic could file a notice of lien for labor, skills, and material on an aircraft or for storage of an aircraft when the charges for these services and materials are not paid. The amount of the lien is the contract price for the work or storage, and if no contract, the reasonable worth of the service. The lien survives even if possession is surrendered. The filing of a notice of lien is with the clerk of court. These liens have priority over other perfected and unperfected security interests in the aircraft. The act requires notice of the sale to be given to the owner, permits the owner to stay the sale by filing suit contesting the amount of the lien, permits the owner to obtain possession of the aircraft by depositing the amount of the lien with the clerk, and sets out the procedures to be followed for conducting a private or a public sale. Transfer of title to the purchaser of value at a lien sale is by a bill of sale. Because of the provisions of this act, aircraft mechanics can file their notice of liens with the Federal Aviation Administration for aircraft title purposes under federal law and these liens will be treated as secured claims for bankruptcy purposes. This part became effective October 1, 2006 and applies to labor, skills, or materials furnished on an aircraft or storage provided for an aircraft on or after that date. ( WR) Chapter 5 Commercial Law and Consumer Protection Page 17 Uniform Unincorporated Nonprofit Association Act ( UUNAA)/ General Statutes Commission Technical Corrections S. L. 2006- 226 ( SB 1479) enacts a North Carolina version of the Uniform Unincorporated Nonprofit Associations Act ( UUNAA) as a new Chapter 59B of the General Statutes and makes conforming amendments to other parts of the General Statutes. The act incorporates into one chapter the law dealing with unincorporated nonprofit associations, and treats unincorporated nonprofit associations as legal entities with respect to legal obligations, limitations on liability, holding property, and standing to sue and be sued. The act also provides a statutory default procedure for disposing of a defunct nonprofit association’s personal property after three years of inactivity by authorizing the person with possession of personal property of the association to donate the property to another nonprofit entity or to a governmental entity. The act also permits a nonprofit association to file an appointment of an agent for service of process with the Secretary of State. Part I of the act, concerning the UUNAA becomes effective January 1, 2007. The remainder of the act, including Part II, which made technical and conforming changes to the General Statutes, became effective August 10, 2006. ( WR) Increase Mortgage Lending Fees S. L. 2006- 239 ( SB 2043) changes the fees that may be charged under the Mortgage Lending Act by establishing maximum amounts and by giving the Banking Commission authority to adopt rules setting the fees in a lower amount when appropriate. The act also authorizes the Commissioner of Banks to participate in a centralized national licensing system and database funded and administered by State mortgage regulators. This act became effective October 1, 2006. ( KCB) Prohibit Various Lending Subterfuges S. L. 2006- 243 ( HB 2894) clarifies that certain cash rebate transactions are subterfuges for unlawful loans and are prohibited. The act's language is consistent with a recent Court of Appeals decision which held that the Consumer Finance Act does apply to cash advances offered in the form of rebates. The act clarifies that a subterfuge includes any transaction in which a cash rebate or other advance of funds is offered and all of the following apply: The cash advance is made contemporaneously with the transaction or soon thereafter. The amount of the cash advance is required to be repaid at a later date. The selling or providing of any item, service, or commodity with the transaction is incidental to, or a pretext for, the advance of funds. This act became effective October 1, 2006, and applies to transactions that are investigated on or after that date under the North Carolina Consumer Finance Act, Article 15 of Chapter 53 of the General Statutes, as amended by this act, and applies to transactions that are subject to enforcement actions under the North Carolina Consumer Finance Act that are filed on or after that date. ( KCB) Prohibit Extreme Pricing Practices S. L. 2006- 245 ( HB 1231), as amended by Section 41 of S. L. 2006- 259 ( SB 1523) amends the statute which prohibits excessive pricing during states of disasters. The amendments expand coverage beyond states of disaster to include states of emergency and abnormal markets. The Chapter 5 Commercial Law and Consumer Protection Page 18 addition of abnormal markets as a triggering event allowing applicability of the prohibition of excessive pricing means that events outside the State that affect prices in the State will now be included. In addition, excessive pricing at all levels of the market will now be prohibited. As previously written, the statute applied only to retail sales. The statute will now apply only to areas of the State where the state of disaster or emergency is declared, or where the abnormal market disruption is found to exist. The statute will not apply if price changes are due to actual market fluctuations. This act became effective August 15. 2006. ( SR) State Unemployment Tax Modifications S. L. 2006- 251 ( SB 2012) makes changes to the law governing unemployment contribution rates of employers. Unemployment tax contributions paid by employers depend on both the experience rating of the employer and the fiscal condition of the system. G. S. 96- 9( c)( 4) provides for the transfer of an employer's account for purposes of determining a successor employer's contribution rate when an employer transfers all or part of its assets to another employer. Prior to this act, when an employing unit acquired all of the assets of another employing unit, the law required mandatory transfer of the predecessor's account to the successor, for use in determining the successor's contribution tax rate. This act relieves a successor employer of the higher unemployment contribution rate of its predecessor when there is no common ownership between the predecessor and the successor, and the successor acquired the assets of the predecessor in a sale in bankruptcy. In this situation, the successor's rate of contribution is determined without regard to the predecessor's rate. This act became effective August 16, 2006, and applies to acquisitions made on or after August 1, 2003. ( TH) Phase Out Video Poker/ Except by Compact S. L. 2006- 6 ( SB 912) Exempt Certain Video Poker Machines from Ban, as amended by 2006- 259, Sec. 6 ( SB 1523, Sec. 6). See Criminal Law and Procedure. Election Changes S. L. 2006- 262 ( HB 128). See Constitution and Elections. For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 6 Constitution and Elections Page 19 Chapter 6 Constitution and Elections Erika Churchill ( EC), Bill Gilkeson ( BG) Note: Legislation affecting voting cannot be implemented until it has received approval under Section 5 of the Voting Rights Act of 1965. Approval is most commonly obtained administratively from the United States Attorney General. This requirement applies to legislation affecting any of the 40 North Carolina counties covered by Section 5, including all statewide legislation. Unless otherwise indicated, the effective date stated is the effective date as it is in the legislation. It may be that Voting Rights Act approval has not yet been obtained, and therefore the act cannot be implemented until such approval is given. Enacted Legislation Candidate Challenge Procedure S. L. 2006- 155 ( HB 2188) establishes a process to challenge the candidacy of someone filing or petitioning to run for office. The law defines a " challenger" as any qualified voter registered in the same district as the office for which the candidate has filed or petitioned and a " challenged candidate" as the candidate whose candidacy is being challenged. The basic filing provisions include: When a challenge is to be made. - No later than 10 business days after the close of the applicable filing period. A provision is included to allow a protest petition to be filed if the ground( s) for the challenge are discovered after the time period for filing a candidate challenge has passed. How a challenge is to be made. - In a verified affidavit by a challenger based on a reasonable suspicion or belief of the facts stated. Grounds for challenging the candidate. - The candidate does not meet the constitutional or statutory requirements for office, including residency. Once a challenge is filed, the challenge is heard by a panel. The panels are comprised as follows: Single county districts. - If the district for the office subject to the challenge covers all or part of only one county, then the panel is the county board of elections of that county. Multicounty, but less than entire State. - If the district for the office subject to the challenge covers more than one county but less than the entire State, then the panel is appointed by the State Board of Elections ( Board), with all of the following applying: The Board must appoint the panel within two business days after the challenge is filed. Meetings of the Board to make appointments are treated as emergency meetings for the purpose of notice for an open meeting. The panel must consist of at least one member of the county board of elections in each county in the district of the challenged office. The panel must have an odd number of members, no fewer than three and no more than five. In appointing members to the panel, the Board must appoint members from each county in proportion to the relative total number of registered voters of the counties in the district for the office. The Board must, to the extent possible, appoint members affiliated with different political parties in proportion to the representation of those parties on the county boards of elections in the district for the office. The Board must designate a chair for the panel. Chapter 6 Constitution and Elections Page 20 Entire State. - If the district for the office subject to the challenge covers the entire State, the panel is the Board of Elections. Each panel must do all of the following: Announce the time and location of the hearing within five business days after the challenge is filed. The preference of location is the county in which the candidate filed his or her notice or petition of candidacy. Allow for depositions prior to the hearing upon the request of either the challenger or candidate. Issue subpoenas upon its own motion or upon the request of the parties. Give notice of the hearing and a copy of the challenge or summary of the allegations to the challenger, the candidate, certain county political party chairs, and other persons likely to have a significant interest in the challenge. Failure to comply with the notice requirements does not delay the holding of the hearing or invalidate the results if it appears reasonably likely that all interested persons were aware of the hearing and had an opportunity to be heard. Render a written decision within 20 business days after the challenge is filed and serve that notice on the parties. Panels may subpoena witnesses and receive evidence from any person with information concerning the subject of the challenge. The challenger is not required to testify unless subpoenaed by a party. The Board must adopt rules addressing notice to parties, scheduling of hearings, timing of deliberations, and issuance of decisions. The burden of proof is on the candidate, who must show by a preponderance of the evidence based on the whole record, that he or she is a qualified candidate. If the challenge is based on residency, the candidate must show all of the following: Actual abandonment of the first domicile and intent not to return to the first domicile. Acquisition of a new domicile by actual residence at another place. Intent of making the newer domicile a permanent domicile. There are two distinct procedures for appealing the decision of a panel: Appeals from single or multicounty panel. - The challenger, a candidate adversely affected by the panel's decision, or any other person who participated in the hearing and has a significant interest adversely affected by the panel's decision, may appeal to the Board. The appeal: Must be taken within two business days after the panel files its written decision to the county board of elections where the candidate filed a notice of candidacy or petitioned. Must be delivered or deposited in the mail by the end of the second business day after the panel filed its written decision. Must be based on the whole record of the hearing with the board making a decision on an expedited basis. The board's decision may be appealed directly to the North Carolina Court of Appeals no later than two business days after the Board files its final order. Appeals from a statewide panel. - The challenger, a candidate adversely affected by the panel's decision, or any other person who participated in the hearing and has a significant interest adversely affected by the panel's decision, may appeal. The appeal: Must be taken within two business days after the panel files the written decision. Must be delivered or deposited in the mail to the Court of Appeals by the end of the second business day after the panel filed its written decision. Must be based on the whole record of the hearing. This act becomes effective January 1, 2007, and applies to actions filed on or after that date. ( EC) Chapter 6 Constitution and Elections Page 21 Permitted Use of Campaign Funds S. L. 2006- 161 ( HB 1845) establishes permitted and prohibited uses of contributions accepted by a candidate or a candidate's campaign committee. Contributions may be used only for permitted uses. The candidate or candidate's campaign committee may use contributions only for the following purposes: Expenditures resulting from the campaign for public office. Expenditures resulting from holding public office. Contributions to a charitable organization provided that the candidate or the candi-date's spouse, children, parents, brothers, or sisters are not employed by the organization or on any board governing the organization. Contributions to a national, State, or district or county committee of a political party or a caucus of the political party. Contributions to another candidate or candidate's campaign committee. To return all or a portion of a contribution to the contributor. Payment of any penalties against the candidate or candidate's campaign committee imposed by a board of elections or a court of competent jurisdiction. A candidate or candidate's campaign committee is expressly prohibited from using contributions to fulfill any commitment, obligation, or expense of a candidate, individual, or other entity that would exist regardless of the campaign for public office or holding public office when making expenditures resulting from running for office or holding public office. Violation of these provisions would be punishable as a Class 2 misdemeanor. These provisions became effective October 1, 2006, and apply to all candidates and candidate campaign committees with active accounts on that date. The act also amends the existing reporting requirements to require political committee and referendum committee treasurers to report expenditures with a specific description to provide a reasonable understanding of the expenditure. It further requires that the treasurer report the ultimate payee of the expenditure, meaning the individual or person to whom the political committee is obligated to make the expenditure. If the obligation is for more than one good or service, an itemization of the goods and services must be included. These provisions become effective January 1, 2007, and apply to all political committee and referendum committees with active accounts on that date. ( EC) Electioneering Communications S. L. 2006- 182 ( HB 1847) makes several changes to North Carolina's law regulating " electioneering communications." Electioneering communications are communications with the following general characteristics: They are made on radio or television or through mass mailings or telephone banks. They refer to a candidate for statewide office or the General Assembly. They are made during the period 30 days before a primary or 60 days before a general election for the candidate involved. They are " targeted to the relevant electorate." They do not fall into several excluded categories, including news stories. They are not communications expenditures which would be covered by Article 22A of Chapter 163 of the General Statutes. Communications that expressly advocate the election or defeat of a clearly identified candidate would fall into that category. Before this act, the law already prohibited the use of corporate or labor union money to produce electioneering communications. It also required reporting of spending for electioneering communications within 24 hours after the spending reached $ 10,000. Frequently, the entities that engage in electioneering communications are not registered or regulated as " political committees" under the North Carolina campaign finance laws, but they Chapter 6 Constitution and Elections Page 22 are tax exempt because of their political focus under Section 527 of the Internal Revenue Code. Hence, they are often called " 527 organizations." The changes made by this act include the following: Changes the way the regulation applies to mass mailings and telephone banks so that items are regulated if they refer to candidates in the same race during a 30- day period that falls within the window of electioneering communications. The items would no longer have to be " identical or substantially similar" as in current law. Drops the mail- phone bank " targeted to the relevant electorate" threshold for legislative races from 5,000 to 2,500. Changes the definition of " mass mailing" so that it no longer requires that it be made by a commercial vendor. Provides that the disclosure date is triggered by the expense being incurred, rather than the payment for the costs being made by the entity producing the elec-tioneering communication. Clarifies that in- kind as well as monetary contributions are subject to reporting as well as the prohibition on corporate, union, etc. sources. Requires reporting not only the name but also the " principal occupation" of the donor. Clarifies that any individual, committee, association, or other organization or group of individuals can produce an electioneering communication even if they have taken a payment from a prohibited source by segregating the funds to prove that the electioneering communication was produced with only allowable source's contributions. Prohibits the proliferation of 527 organizations to avoid or evade prohibited source or disclosure requirements. This act became effective on August 1, 2006, except that any criminal penalties resulting from the act became effective October 1, 2006. ( BG) Runoff Changes S. L. 2006- 192 ( HB 1024) makes a number of changes to election laws, mostly concerned with runoffs and with judicial elections. The act, in a limited way, introduces into North Carolina election law the device of Instant Runoff Voting. It introduces it in two ways: ( i) As a pilot program in local elections during 2007 and 2008, and ( ii) as a way of conducting elections to fill vacancies in appellate and Superior Court judgeships that occur during an election year when it is too late to hold a nonpartisan primary. Instant Runoff Voting is a system designed to accomplish in one election the effect of having a runoff or screening election where more than two candidates are running for the same seat and no candidate gets a majority ( or substantial plurality) of the votes. If only two candidates are running, no runoff or Instant Runoff is needed. As used in this section, " instant runoff voting" means a system in which voters rank up to three of the candidates by order of preference, first, second, or third. If the candidate with the most first- choice votes receives the threshold of victory of the first- choice votes, that candidate wins. If no candidate receives the threshold of victory of first- choice votes, the two candidates with the greatest number of first-choice votes advance to a second round of counting. In this round, each ballot counts as a vote for whichever of the two final candidates is ranked highest by the voter. The candidate with the most votes in the second round wins the election. The threshold of victory of first- choice votes differs depending on what kind of election is involved. In a partisan primary, the threshold is 40 percent plus one vote. In nonpartisan election and runoff and nonpartisan primary and election, the threshold is a majority of the votes. Instant Runoff Voting can also be used in races where more than one candidate is to be elected. In the case of a multi- seat race, the voters vote the same way as with a single- seat race. The counting is done separately for each winner. After the Chapter 6 Constitution and Elections Page 23 first winner is determined, that candidate's name is removed and the ballots are counted again in the same way to determine the second winner. In the pilot program, the State Board of Elections is to select up to 10 cities in the 2007 elections and up to 10 counties in the 2008 elections to participate in a pilot for Instant Runoff Voting in local elections. It would be used only in partisan primaries and nonpartisan elections. No county would be selected if the county board of elections did not agree. If Instant Runoff Voting were used in an election that normally was a nonpartisan plurality election, the governing board of the city or county would also have to agree. In judicial elections, Instant Runoff Voting will be used if a vacancy in a seat on the Supreme Court, the Court of Appeals, or the Superior Court occurred at a time when, according to the State Constitution, an election would have to occur in November for the seat, but there is no time to complete the normal method of screening candidates, the nonpartisan primary. Instant Runoff Voting would also be used where a judicial candidate dies or becomes disqualified and it is too late to complete a nonpartisan primary. The act makes several other changes: Moves the standard date for the runoff in partisan primaries in even years from the current four weeks after the first primary to seven weeks after it. Changes the municipal election schedule so that the candidate filing period is shortened from four weeks to two weeks ( first Friday in July to the third Friday in July), and changes the partisan municipal primary schedule so that the first primary is always the second Tuesday after Labor Day and the second primary is the fourth Tuesday before the election. In most years, that will add an extra week between the first and second primaries and, in all years, it will add an extra week between the second primary and Election Day. Conforms State law to federal law on treatment of overseas voters. Previous State law allowed certain military- connected and other voters to register and vote absentee and to vote by email and fax, but it did not provide that service to all overseas civilian United States citizens who were covered by the federal Uniformed and Overseas Citizens Absentee Voting Act ( UOCAVA). State law did, however, extend those privileges to certain people, including hospitalized veterans, who were not covered by UOCAVA. This act extends State coverage to all citizens covered by UOCAVA. It does so without removing coverage from anyone who now has State coverage. Provides that the precincts or other voting units that will be selected for hand counting of votes will not be selected until 24 hours after the initial count of the election returns is released to the public, or 24 hours after the polls close, whichever occurs first. The selection would have to be done in public. Makes several changes to the laws governing the Public Campaign Fund, which provides public funding to candidates for appellate judgeships who agree to certain conditions. Among the changes are the ability of candidates to make up any lack of public funds to which they are entitled by raising that amount privately, a simplified trigger for reporting of independent expenditures, and a narrowing qualification on the 21- day blackout for non- publicly funded opponents to raise private contributions. One significant change is to apply to candidates for Superior Court and District Court, or the trial courts, the $ 1,000 contribution limit that now applies to candidates for appellate court judges. The contribution limit for non- judicial candidates is $ 4,000 per donor per donee per election. This act became effective on August 3, 2006, except that the change in the dates for runoff primaries and the change in the contribution limit for trial court judge candidates becomes effective January 1, 2007. ( BG) Chapter 6 Constitution and Elections Page 24 2006 Campaign Finance Changes S. L. 2006- 195 ( HB 1846) makes several changes to the campaign finance laws, mostly concerned with the training of campaign treasurers and their activities in accepting and reporting contributions. The act does the following: Reduces from $ 100 to $ 50 the amount of a contribution that may be made or accepted in cash. Prohibits the making or accepting of a non- cash contribution unless it contains on the instrument of contribution the name of the intended contributee chosen by the contributor. Makes clear that treasurers must keep accounts of all contributions, including all information required by the State Board of Elections on its forms. The act removes language that might lead some to believe that small contributions accepted at an event do not have to be specifically accounted for. Changes the threshold for the identification of individual contributors on public campaign reports. Current law sets the threshold at $ 100. For any contribution by an individual resident of the State of $ 100 or less, the contributor does not have to be identified on the report. While current law indicates that aggregate contributions by the same individual are counted toward the $ 100 threshold, it does not state what time period must be used to measure the aggregate contributions toward the threshold. In the absence of statutory guidance, the State Board of Elections has used the " election cycle" as the measuring period for the $ 100 threshold. " Election cycle" is defined as the term of the office sought or, if multiple offices of different term lengths are involved, the two- year term of legislative offices. This act changes the threshold for reporting a contributor's identity from $ 100 to $ 50. But it sets a statutory measuring period for aggregate contributions that is different from what the State Board of Elections has been using. It sets the " election" as the new measuring period. This is the same period used for measuring the $ 4,000 contribution limit. A primary is one election, and a general election in the same year is another. So, as a result of the act, an individual resident of the State can contribute up to $ 50 to a candidate in a primary, and another $ 50 to the same candidate in the general election in the same year, and avoid having his or her name reported publicly. Prohibits acceptance of a contribution by a non- corporate business entity, labor union, professional association or insurance company. The law already prohibits all those entities from making contributions, but does not prohibit anyone from accepting them. When it comes to acceptance, current law addresses only contributions by corporations. This act changes the law on prohibited sources so that the law on accepting contributions mirrors the law on making contributions. The act also adds language providing a safe harbor against criminal or civil prosecution if a treasurer has shown best efforts to obtain required information. Requires that treasurers of campaign committees participate in training as to the duties of the office within three months of appointment and at least once every four years thereafter. The State Board of Elections is required to provide the training through regional seminars and through interactive electronic means. The treasurer may choose to participate in training prior to each election in which the committee is involved. An assistant treasurer may be designated to attend the training. The training must be provided for free. All required reports must be filed by a treasurer or assistant treasurer who has completed the training. This act becomes effective January 1, 2007, except that the requirements for treasurer training became effective October 1, 2006. ( BG) Chapter 6 Constitution and Elections Page 25 State Government Ethics Act - 1 S. L. 2006- 201 ( HB 1843). See State Government. Candidate- Specific Communications S. L. 2006- 233 ( HB 966) requires disclosure of spending for " candidate- specific communications." " Candidate- specific communications" are the same as " electioneering communications" ( see the explanation in the summary of S. L. 2006- 182, HB 1847, provided earlier in this Chapter), except for the time period when they occur. To be an electioneering communication, a message must be made 60 days before an election or 30 days before a primary. To be a candidate- specific communication, the communication must be made in an even- numbered year after the last day candidates may file for a partisan primary or a judicial office, set as the last business day in February. The period would run through Election Day, excluding the electioneering communication period. The sole aspect of candidate- specific communication regulation is disclosure. The differences between how the two kinds of communication are regulated are as follows: There is no prohibition on any source making candidate- specific communications. Organizations spending for candidate- specific communications do not have to do so out of a segregated fund that excludes certain expenditures. There is no criminal penalty in the candidate- specific communications articles, except that lying on the disclosure statement is subject to perjury. The electioneering articles impose a Class 2 misdemeanor for violations. The candidate- specific articles rely on civil remedies. Consequently, existing Articles 22E and 22F, and Articles 22G and 22H ( created by this act) of the General Statutes would all regulate the same communication: one that refers to a candidate for statewide office or the General Assembly, that is " targeted to the relevant electorate," and that does not meet the express advocacy test of an " expenditure" so that it can be fully regulated under the campaign finance act. A communication with the above characteristics is an " electioneering communication" if it is made during the 60 days before a general election or the 30 days before a primary, which are held in April, September, and October. If made during those times the communication is subject to disclosure if made by an entity that spends more than $ 10,000 on such communications. It cannot be funded with corporate or union money. A communication with the above characteristics is a " candidate- specific communication" if it is made outside the 60- day or 30- day windows but within the wider window beginning at the close of candidate filing in an even- numbered year ( last business day of February) and before the general election, which occur in March, May, June, July, and August. If made during that time, the communication is subject to disclosure if made by an entity that spends more than $ 10,000 on such communications. However, there is no prohibition on the use of corporate and union money. A communication with the above characteristics is not regulated by either of those acts if it is made during an odd- numbered year, or outside the electioneering communications window, or the candidate- specific communications window, of an even- numbered year. During an even- numbered year, the unregulated months are basically January, February, November, and December. This act becomes effective January 1, 2007. No communication becomes a " candidate-specific communication" until February 2008. ( BG) Chapter 6 Constitution and Elections Page 26 Electoral Fairness Act S. L. 2006- 234 ( HB 88) equalizes the requirements that must be met for individuals to have their names on the general election ballot by new parties and by unaffiliated candidates for statewide office. The current law requires that new parties collect on petitions the signatures of registered voters equal to 2 percent of the votes cast in the latest general election for Governor, which is 69,734 signatures. Current law requires that statewide unaffiliated candidates collect signatures equal to 2 percent of all the registered voters in the State – more than 100,000 signatures. In 2004, a federal court ruled, in the case of Delaney v. Bartlett, 370 F. Supp. 2d 373, that the disparity between the 2 requirements was constitutionally indefensible. This act makes the 2 thresholds the same by reducing the unaffiliated candidate threshold to the 69,734 signatures requirement applicable to the new parties. The act also reduces the requirement that a party must meet to stay on the ballot. Currently, the party will retain ballot status if either its nominee for Governor, or its nominee for President, gets 10 percent of the vote. If neither nominee meets the requirement, the party loses its ballot status. The act reduces the percentage to two percent of the vote. The act also: Applies to new party candidates the same filing fee requirements that apply to candidates for nomination by existing parties. Prohibits a party from replacing a candidate on its ticket with a person who has been defeated for the same office in the primary of another party. This act becomes effective January 1, 2007, and applies to all primaries and elections held on or after that date. ( BG) Election Changes S. L. 2006- 262 ( HB 128) makes the following changes to election law: Allows county boards of elections to begin, but not complete, the process of counting mailed absentee ballots before Election Day if the county board uses an optical scan voting system. Amends the voter registration statutes to: • Clarify that a voter reporting a move need not provide the date of the move, just to attest that the move occurred at least 30 days before the next election. • Clarify that a person's residence is the usual sleeping area for voters who live in places other than traditional residences such as houses or apartments. Provides that, effective January 1, 2007, the envelope for a voter's provisional ballot identifies the voter, not the provisional ballot itself. Establishes a process for how a candidate or political committee may accept loans from financial institutions in the ordinary course of business without violating the prohibition on accepting corporate contributions. Such a loan must meet all the following tests: • The full amount of the loan must be secured by collateral placed by someone or something that is not prohibited from making a contribution. The value of the collateral put up by each of those individuals or other entities cannot exceed that entity's contribution limits, generally $ 4,000 per election. The value of the collateral posted may exceed the contribution limit where the value of the loan itself does not exceed the limit applicable to the entity. • While the loan is unpaid, the value of any collateral posted, or the amount of each guaranty for the loan, is considered a contribution by whoever secured the loan. If the loan or a portion of it is repaid to the bank during the contribution-limit period ( an " election"), then whoever secured the loan is freed up to further contribute to the candidate up to the amount of the repayment. If multiple Chapter 6 Constitution and Elections Page 27 entities secured the loan that the candidate repays to the bank, then the amount repaid is prorated among them. • If the loan is to a candidate or political committee, only the candidate, the candidate's spouse, or the political committee may repay the loan to the bank. Repeals a provision in the 2005 Budget Bill that allowed the Governor to appoint members of the State Board of Elections without regard to whether they had been nominated by the State Chair of one of the two major political parties, thereby restoring the law that the Governor must make appointments from the lists of five nominees made by each State Party Chair. Corporations and other entities prohibited from making political contributions and expenditures may nonetheless be the parent entity for a political committee consisting of individuals connected with it, and the prohibited source may provide " reasonable administrative support" to that political committee. The current statute lists the following as examples of reasonable administrative support: record keeping, computer services, billings, and mailings to members of the committee, office sup-plies, and office space. This section adds membership development and fund- raising activities to the list of examples. Except as stated above, this act becomes effective January 1, 2007. ( EC) Clarify 2010 Census Redistricting Data Program S. L. 2006- 264, Sec. 75.5 ( SB 602, Sec. 75.5). See State Government. For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 6 Constitution and Elections Page 28 Chapter 7 Courts, Justice, and Corrections Page 29 Chapter 7 Courts, Justice, and Corrections Brenda Carter ( BC), Tim Hovis ( TH), Brad Krehely ( BK), Howard Alan Pell ( HAP) Enacted Legislation Provide Additional Assistant District Attorneys S. L. 2006- 66, Sec. 14.3 ( SB 1741, Sec. 14.3) increases the number of full- time assistant district attorneys in each prosecutorial district. 13 additional positions are authorized for Mecklenburg County, and 7 are authorized for Wake County. From one to three additional positions are authorized for each of the other prosecutorial districts. This section becomes effective January 1, 2007. ( BC) Additional District Court Judgeships S. L. 2006- 66, Sec. 14.4 ( SB 1741, Sec. 14.4) provides for 17 additional district court judgeships in designated districts. The Governor will appoint the additional judges, and those judges' successors will be elected in the 2008 election for 4- year terms commencing on January 1, 2009. This section becomes effective January 15, 2007. In the case of districts subject to section 5 of the Voting Rights Act of 1965, it becomes effective January 15, 2007 or the date upon which the additional judge for that district is approved under section 5 of the Voting Rights Act of 1965. ( BC) Additional Magistrates/ Eliminate Maximum Allocation of Magistrates S. L. 2006- 66, Sec. 14.5 ( SB 1741, Sec. 14.5) increases the number of magistrates in certain counties and eliminates the maximum number of magistrates of each county as provided in the statute. This section became effective July 1, 2006. ( TH) Increase the Uniform Fees Paid to Jurors S. L. 2006- 66, Sec. 14.17 ( SB 1741, Sec. 14.17) increases the fees paid to jurors for days served after the first day from $ 12 dollars to $ 20. Under prior law, jurors were paid $ 12 per day. Fees paid to jurors for service in excess of 5 days in any 24- month period are increased from $ 30 dollars to $ 40 dollars for each day of service in excess of 5 days. Fees paid to grand jurors are increased from $ 12 to $ 20 dollars per day. This section became effective July 1, 2006. ( TH) Divide Prosecutorial District 19B S. L. 2006- 66, Sec. 14.19 ( SB 1741, Sec. 14.19) creates a new Prosecutorial District 19D, consisting of Moore County. Prosecutorial District 19B, which had consisted of Montgomery, Moore, and Randolph counties, loses 4 of its 12 Assistant District Attorneys to the new District 19D. The District Attorney for Prosecutorial District 19D will be filled by appointment of the Chapter 7 Courts, Justice, and Corrections Page 30 Governor, with the term expiring on January 1, 2009. A District Attorney decided by election in 2008 will commence a 4- year term beginning on January 1, 2009. This section becomes effective January 15, 2007. ( HAP) District 13 County Resident Judgeships S. L. 2006- 96 ( SB 1991) provides residency requirements for district court judges in District Court District 13. The voters of District Court District 13, which consists of Bladen, Brunswick, and Columbus counties, elect 6 District Court judges. The act provides that of the 6 district court judges elected in District 13, 1 judge must be a resident of Bladen County, 1 must be a resident of Columbus County, and 2 must be residents of Brunswick County. The remaining 2 judges may be residents of any of the 3 counties in the district. The act divides Superior Court District 13, consisting of Bladen, Brunswick and Columbus Counties, into 2 districts; District 13A will consist of Bladen and Columbus Counties, and District 13B will consist of Brunswick County. The act designates which current sitting judges are designated for each district. This act became effective October 1, 2006, or the dates the changes affecting the election of judges are approved under section 5 of the Voting Rights Act of 1965, whichever is later. ( BC) Protection of Animals S. L. 2006- 113 ( HB 2098). See Agriculture and Wildlife. No Prayer for Judgment/ Bus Stop Arm Violation S. L. 2006- 160 ( HB 2880) prohibits a judge from entering a prayer for judgment continued when sentencing a person who is guilty of passing a stopped school bus. A " prayer for judgment continued" ( PJC) is not defined in the North Carolina statutes. With a PJC, the court accepts the defendant’s guilty plea or finds the defendant guilty after trial but does not impose a sentence or enter judgment. Instead, the court indefinitely postpones – or continues – judgment. If the court continues prayer for judgment for a specified period of time and, if within that time, the defendant commits another offense, the State may seek the imposition of a sentence for the original offense. This act became effective September 1, 2006, and applies to offenses committed on or after that date. ( TH) Criminal Record Checks/ Psychology Practice Act S. L. 2006- 175 ( HB 1327). See Occupational Boards and Licensing. Victims' Compensation Changes S. L. 2006- 183 ( HB 2060) makes the following changes to the laws governing the State's Victims' Compensation program, as recommended by the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee: Increases from $ 3,500 to $ 5,000 the total allowable expenses related to funerals. Amends the definition of " collateral source" to include a contract or insurance that will pay for funeral expenses, including transportation of the body. Chapter 7 Courts, Justice, and Corrections Page 31 Adds language clarifying that compensation under the victims' compensation program will not be paid for " noneconomic detriment," which includes pain, suffering, inconvenience, physical impairment, and other non- pecuniary damage. Adds language giving the victims' compensation program the discretion to deny, reduce, or reconsider an award where the victim, without good cause, fails to cooperate with the prosecution of a criminal case arising out of the criminally injurious conduct that is the basis of the award. Makes adjustments to awards to claimants. Under current law, the Director of the Crime Victims Compensation Commission must reduce or deny an award to the extent the loss is recouped from a collateral source. However, this requirement does not apply to a collateral source that would pay expenses directly related to a funeral, cremation, and burial, including transportation of the body. The act deletes this language and allows awards to be reduced or denied to the extent the claimant is able to recoup the costs of a funeral from insurance or a contract. This act became effective July 1, 2006, and applies to claims filed on or after that date. ( TH) Establish North Carolina Innocence Inquiry Commission S. L. 2006- 184 ( HB 1323) establishes the North Carolina Innocence Inquiry Commission, an eight- member body appointed by the Chief Justice of the North Carolina Supreme Court and the Chief Judge of the North Carolina Court of Appeals. The Commission is charged with the responsibility of hearing claims of factual innocence by persons convicted of felonies. If the person pled not guilty to the felony charge, at least five members of the Commission must conclude that there is sufficient evidence to merit judicial review. Upon a majority of five Commission members concluding that review is warranted, the Chief Justice would then appoint a panel of three Superior Court judges to hold an evidentiary hearing. If the person pled guilty to the felony charge, then the Commission must be unanimous in finding that the claim merits judicial review in order for the panel of judges to be appointed. The judicial panel must unanimously rule that the innocence of the defendant has been proven by clear and convincing evidence for the charges to be dismissed. Decisions of the Commission and the judicial panel cannot be appealed. This act became effective August 3, 2006, and applies to claims of factual innocence filed on or before December 31, 2010. ( HAP) Omnibus Courts Act S. L. 2006- 187 ( HB 1848) makes various changes to the laws concerning the administration of the courts system including: Permitting the Judicial Department to accept the payments of fines, fees, and costs by credit, charge, or debit card. Allowing the filing of pleadings and papers in the courts by electronic means pursuant to uniform rules adopted by the North Carolina Supreme Court. Permitting the Judicial Department to require its employees, contractors, and volunteers to consent to criminal history background checks as a condition for their relationship with the Judicial Department. Authorizing the Administrative Office of the Courts ( AOC) to provide foreign language interpreters for indigent defendants and to hire permanent staff to serve this purpose. Clarifying the authority of the Chief Justice to cancel court sessions and close court offices in the event of adverse weather or other emergency situations. Chapter 7 Courts, Justice, and Corrections Page 32 Setting the minimum number of magistrates for each county at the current allotment. Eliminating the requirement that the Joint Legislative Corrections, Crime Control and Juvenile Justice Oversight Committee study drug treatment courts in North Carolina as enacted earlier this session. Amending the budget bill by changing the effective date for the provision that increases juror fees. Directing the AOC and other groups to study the most effective way to address the increasing number of persons who either cannot afford representation or choose to represent themselves in family law matters and in some civil litigation, and to report the results of the study to the Joint Appropriations Subcommittee on Justice and Public Safety no later than December 31, 2007. The act also amends the statutes governing the Judicial Standards Commission ( Commission) by: Expanding the Commission from 7 to 13 members, providing for staggering of terms, and requiring members to be residents of the State. Directing that two of the new members of the Commission must be appointed by the General Assembly, one upon the recommendation of the Speaker of the House of Representatives and one upon the recommendation of the President Pro Tempore of the Senate. Providing that the Court of Appeals Judge on the Commission serves at the pleasure of the Chief Justice. Providing that the members of the Commission and its employees are immune from civil suit for conduct undertaken in the course of their official duties. Expanding possible disciplinary actions to include suspension, private letters of caution, and public reprimands. Providing that judges suspended for misconduct will not receive compensation during a period of suspension, and, if removed, will be disqualified from holding another judicial office and will not be eligible for retirement compensation. Clarifying that judges suspended for temporary physical or mental incapacity will continue to receive compensation. Specifying that no person may disclose information obtained from Commission proceedings or papers and that Commission papers are not subject to disclosure under the State public records laws. Authorizing the Commission to issue confidential letters of caution, public reprimands, and advisory opinions to judges. The provision allowing filing by electronic means became effective August 3, 2006, and applies to all matters filed with the courts on or after the date that the Supreme Court adopts rules for electronic filing. The provision permitting the Judicial Department to require its employees, contractors, and volunteers to consent to criminal history background checks became effective October 1, 2006. The provisions allowing mediation for abused and neglected juveniles, setting the minimum number of magistrates for each county at the current allotment, and changing the effective date for the increase in juror fees became effective July 1, 2006. The changes to the statutes governing the Judicial Standards Commission become effective January 1, 2007. The remainder of this act became effective August 3, 2006. ( BK) Modernize Bail Bondsman Registration S. L. 2006- 188 ( SB 846). See Occupational Boards and Licensing. Chapter 7 Courts, Justice, and Corrections Page 33 Legislative Research Commission/ Red Light Camera Study S. L. 2006- 189 ( SB 1442). See Transportation. Office of Administrative Hearings/ Rules Review Commission Provisions S. L. 2006- 221, Sec. 20 ( SB 198, Sec. 20). See State Government. Protect Children/ Sex Offender Law Changes S. L. 2006- 247 ( HB 1896). See Criminal Law and Procedure. Governor's Driving While Impaired Task Force Recommendations S. L. 2006- 253 ( HB 1048). See Criminal Law and Procedure. Studies Legislative Research Commission The Studies Act of 2006 S. L. 2006- 248, Secs. 2.1( a) and 2.1( j) ( HB 1723, Secs. 2.1( a) and 2.1( j)) authorize the Legislative Research Commission to study: State disclosure requirements in superior court discovery, including the identity of informants, the victim's personal information, work product, open discovery in noncapital postconviction cases, and any other related issues. The impact of North Carolina court decisions on the definition of clear proceeds as it relates to the funding and operation of traffic control photographic systems ( red light cameras) by cities and towns. These sections became effective August 16, 2006. ( TH) New/ Independent Studies/ Commissions House Task Force to Review and Resolve Conflict in North Carolina Law over the Recovery of Costs in Civil Cases S. L. 2006- 248, Sec. 12.1 ( HB 1723, Sec. 12.1) creates the House of Representatives Task Force on the Recovery of Costs in Civil Cases to review and recommend a resolution to the conflict in North Carolina law regarding the recovery of costs in a civil case. Specifically, the Task Force must study the conflict between G. S. 6- 20 and G. S. 7A- 305. The Speaker of the House of Representatives is to appoint six members of the House of Representatives, and three public members: one member of the North Carolina Academy of Trial Lawyers, one member of the North Carolina Association of Defense Attorneys, and one member of the North Carolina Bar Chapter 7 Courts, Justice, and Corrections Page 34 Association. The Task Force must report and make recommendations to the Speaker by December 31, 2006. This section became effective August 16, 2006. ( TH) Referrals to Existing Commissions/ Committees Parole Eligibility Report S. L. 2006- 66, Sec. 16.5 ( SB 1741, Sec. 16.5) clarifies that the study on parole eligibility must compare the amount of time served by each inmate who is eligible for parole on or before July 1, 2007, to the time served by offenders under Structured Sentencing for comparable crimes. It requires the Post- Release Supervision and Parole Commission to report to the Chairs of the Senate and House of Representatives Appropriations Committees and the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety ( in addition to the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee). Finally, all elements of the report must be submitted by April 1, 2007 ( previously, the submission dates were October 1, 2005, and February 1, 2006). This section became effective July 1, 2006. ( BK) Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee S. L. 2006- 248, Sec. 54.2 ( HB 1723, Sec. 54.2) directs the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee to study the expungement of criminal records for non- violent felons and report its findings to the 2007 General Assembly. This section became effective August 16, 2006. ( TH) Referrals to Departments, Agencies, Etc. Reports on Youth Development Centers S. L. 2006- 66, Sec. 15.6 ( SB 1741, Sec. 15.6) provides that the Department of Juvenile Justice and Delinquency Prevention ( Department) report to the Chairs of the Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety, and the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee, on the final recommended staffing plan for youth development centers for the 2007- 2008 fiscal year. The stated intent of the General Assembly is to consider funding new treatment positions only after receipt of the report. The report is due by November 10, 2006, and must include: The latest evaluation results for the Samarkand and Stonewall Jackson Youth Development Centers. The total recommended staffing by position classification, with staffing by shift for each housing unit. The total cost and cost per bed. The primary basis for the number of staff by classification. An identification of other states' treatment- based staffing models, how they compare to the Department proposal, and any research on benefits and outcomes in those jurisdictions. The act also amends the provision that requires the Department to report on the implementation of the treatment staffing model at Dobbs, Dillon, and Juvenile Evaluation Center Youth Development Centers. The Department currently reports quarterly to the Chairs of the Chapter 7 Courts, Justice, and Corrections Page 35 Senate and House of Representatives Appropriations Subcommittees on Justice and Public Safety; the act adds the Joint Corrections, Crime Control, and Juvenile Justice Oversight Committee as a report recipient. This section became effective July 1, 2006. ( HAP) Proposal for Joint Use of Swannanoa Property/ Adult Female Correctional Facility and Juvenile Youth Development Center S. L. 2006- 66, Sec. 16.8 ( SB 1741, Sec. 16.8) requires the Department of Correction and the Department of Juvenile Justice and Delinquency Prevention to prepare a joint report regarding the proposed joint use of the Swannanoa property. The report must evaluate whether it is feasible to use the facility to establish an adult female correctional center and to continue to operate a juvenile youth development center. The report must be submitted to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee by November 10, 2006. The report must include all of the following: The total costs for the project over a five- year period, including operating costs, repair and renovation costs, and the anticipated source of funding for those costs. The number and type of positions to be transferred from the Department of Juvenile Justice and Delinquency Prevention to the Department of Correction for the project. The plan to employ existing Swannanoa Valley Youth Development Center employees by the Department of Correction. There will be no transfer of any property or positions between agencies prior to consultation with the Joint Legislative Commission on Governmental Operations and the receipt of the report. This section became effective July 1, 2006. ( BK) For a complete list of the studies and reports authorized by the 2006 Session of the 2005 General Assembly, please refer to the Appendix contained in this publication. Chapter 7 Courts, Justice, and Corrections Page 36 Chapter 8 Criminal Law and Procedure Page 37 Chapter 8 Criminal Law and Procedure Brenda Carter ( BC), Trina Griffin ( TG), Jeff Hudson ( JH), Howard Alan Pell ( HAP), Wendy Graf Ray ( WGR), Walker Reagan ( WR), Susan Sitze ( SS) Enacted Legislation Phase Out Video Poker/ Except by Compact S. L. 2006- 6 ( SB 912), as amended by S. L. 2006- 259, Sec. 6 ( SB 1523, Sec. 6), provides for the phasing out of video gaming machines in North Carolina. Currently, legal games are limited to three at any one location. On October 1, 2006, the number dropped to two, and on March 1, 2007, only a single video gaming machine may be operated at one location. Possession of a video gaming machine is illegal on or after July 1, 2007. Effective June 6, 2006, it became illegal to move a machine from its registered location. Video gaming machines operated on Indian lands under a valid Tribal- State Compact are exempted from the ban. Businesses that assemble, repair, or provide other services for machines that will be operated out of State or on Indian lands may lawfully possess video gaming machines. The following video gaming machines are also exempt: games that do not emit, issue, display, print out, or otherwise record any receipt, paper, coupon, token, or other form of record which is capable of being redeemed, exchanged, or repurchased for cash, cash equivalent, or prizes, or award free replays. The provisions of this act are effective as noted above. The remainder of the act became effective June 6, 2006. ( HAP) Insurance Technical Corrections S. L. 2006- 105, Sec. 2.1 ( SB 615, Sec. 2.1), amends G. S. 20- 45( c) to delete license and registration plates from the list of items a law enforcement officer is required to retain pending the entry of final judgment in a related criminal proceeding. This section became effective July 13, 2006. ( SS) Amend the Forfeiture of Property Rights Law S. L. 2006- 107 ( SB 1378). See Civil Law and Procedure. Protection of Animals S. L. 2006- 113 ( HB 2098). See Agriculture and Wildlife. Seat Belt Use Enhancements S. L. 2006- 140 ( SB 774). See Transportation. No Prayer for Judgment/ Bus Stop Arm Violation S. L. 2006- 160 ( HB 2880). See Courts, Justice, and Corrections. Chapter 8 Criminal Law and Procedure Page 38 Disorderly Conduct/ Funeral/ Military Services S. L. 2006- 169 ( SB 1833) amends the disorderly conduct statute to prohibit disorderly conduct within 300 feet of a funeral, memorial service, or the family's processional route to the funeral or memorial service. The act also makes it unlawful for a person to engage in certain types of conduct within 300 feet of the building or location where a military funeral or memorial service is being held. The conduct is prohibited one hour before, during, and one hour following the service, procession or burial. The type of conduct prohibited includes: Displaying any visual image that conveys fighting words or actual or imminent threats of harm directed to any person or property associated with the funeral, memorial service, or processional route. Uttering loud, threatening, or abusive language or singing, chanting, whistling, or yelling with or without noise amplification in a manner that would tend to impede, disrupt, disturb, or interfere with a funeral, memorial service, or processional route. Attempting to block or blocking pedestrian or vehicular access to the ceremonial site or location being used for a funeral or memorial. A first violation of this act is a Class 2 misdemeanor. A second violation is a Class 1 misdemeanor. A third or subsequent violation is a Class I felony. This act becomes effective December 1, 2006, and applies to offenses committed on or after that date. ( SS) Cell Phone Use by Drivers under 18 Prohibited S. L. 2006- 177 ( SB 1289). See Transportation. Assault Handicapped/ Increase Penalty S. L. 2006- 179 ( SB 488) increases the penalty for committing assault or battery upon a handicapped person from a Class 1 to a Class A1 misdemeanor. The range of punishment for a Class 1 misdemeanor is a minimum of 1 to 45 days of community service with a maximum of up to 120 days active, depending on the person's prior record. The range of punishment for a Class A1 misdemeanor is 1 to 150 days, with the possibility of an active sentence even if the person has no prior convictions. This act becomes effective December 1, 2006, and applies to offenses committed on or after that date. ( TG) Strengthen Neighborhood Watch Programs S. L. 2006- 181 ( HB 1120) authorizes cities and counties to establish neighborhood crime watch programs. The act also creates a Class 1 misdemeanor for harassing someone for participating in a neighborhood crime watch program or activity, or actively participating in an ongoing criminal investigation. The criminal offense created in this act becomes effective December 1, 2006. The remainder of this act became effective August 1, 2006. ( SS) Establish North Carolina Innocence Inquiry Commission S. L. 2006- 184 ( HB 1323). See Courts, Justice, and Corrections. Chapter 8 Criminal Law and Procedure Page 39 Methamphetamine Lab Prevention Act S. L. 2006- 186 ( SB 686) amends the restrictions on the purchase and sale of pseudoephedrine products in order to comply with federal law, and to make other conforming changes. The act makes the following changes: Requires that pseudoephedrine products in the form of a tablet, caplet, or gel cap be offered for sale only in blister packages. With regard to the statutorily required language to be included in a form attesting to a customer's knowledge of and adherence to the restrictions on pseudoephedrine sales, the act allows a retailer who opts to obtain a customer's signature electronically to put the statutory language on a sign next to the device on which the electronic signature will be obtained ( rather than include the full statement electronically). If the retailer chooses to display the statement on a sign, the retailer must: ( i) instruct the purchaser to read the statement prior to signing, and ( ii) include on the electronic form for signature language that indicates the purchaser has read and understood the full statement. Changes the limit on the amount of pseudoephedrine that may be purchased per calendar day from 6 grams to 3.6 grams, in conformance with federal law. With regard to pseudoephedrine products that are in the form of liquids, liquid capsules, gel capsules, or certain pediatric products, the act deletes a requirement that a retailer post signage containing statutorily mandated language in the area of a store where these products are offered for sale ( except as to those products for which the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services (" Commission") issues an order otherwise). Creates a new statute that explicitly states that although pseudoephedrine products that are in the form of liquids, liquid capsules, gel capsules, and certain pediatric products are not subject to the requirements of Article 5D of Chapter 90 of the General Statutes ( unless the Commission issues an order otherwise), they are still subject to the requirements of the federal Combat Methamphetamine Act of 2005. The provision clarifying the applicability of federal law to products otherwise exempt from the provisions of the Article became effective September 30, 2006. The remainder of this act became effective August 3, 2006. ( SS) Protect Children/ Sex Offender Law Changes S. L. 2006- 247 ( HB 1896) makes several changes to the sex offender registration statutes, creates several new criminal offenses, imposes global positioning systems ( GPS) monitoring requirements on certain offenders, and requires the Division of Motor Vehicles to check the National Sex Offender Public Registry prior to issuing a drivers license to certain applicants. Sex Offender Registration Changes. - There are two established sex offender registration programs in North Carolina: the Sex Offender and Public Protection Registration Program, with a registration period of 10 years, and the Sexually Violent Predator Registration Program, with a lifetime registration requirement. A person who is required to register must provide certain information, as well as a current photograph and fingerprints, to the sheriff in the person's county of residence. Every year, the offender is required to verify that information by mail. In addition, the offender must provide to the sheriff, within 10 days and in writing, any changes in the offender's residence, academic status, or employment status at an institution of higher education. An offender's failure to perform any of the registration, verification, or notifi-cation requirements as required by law is a Class F felony. The Department of Justice maintains the registry and the information contained on the registry is public. Chapter 8 Criminal Law and Procedure Page 40 This act makes several changes related to the registration requirements. Unless otherwise noted, these changes become effective December 1, 2006, and apply to offenses committed on or after that date. It adds two criminal offenses to the list of offenses requiring registration on the sex offender registry: statutory rape of a person who is 13, 14, or 15 years old by a person who is at least 6 years older, and subjecting or maintaining a person in sexual servitude. Under current law, there are two statutory rape offenses: ( i) the statutory rape of a person who is 13, 14, or 15 years old by a person who is at least six years older than the victim is a Class B1 felony, ( ii) the statutory rape of a person who is 13, 14, or 15 years old by a person who is more than four years older but less than six years older than the victim is a Class C felony. This act adds only the Class B1 offense of statutory rape to the list of offenses requiring registration. A person convicted of the Class C statutory rape is not required to register. Prior to this change neither statutory rape offense required registration. It requires a person who moves to North Carolina to register in North Carolina if the person had to register as a sex offender in another state and without regard to whether the offense would have required registration if it had been committed in North Carolina. It clarifies that an offender's initial registration must be done in person at the sheriff's office. It also requires that verification, notice of address change, notice of change in academic status, and notice of change in employment status at an institution of higher education all be done in person at the sheriff's office. Prior to this change, these requirements could be performed by mail. It requires an offender to verify his or her registration information on a semiannual basis. It also requires juvenile court counselors to provide verification information on behalf of juvenile registrants, by mail, semiannually. Under prior law, verification was required only on an annual basis. It requires an offender to notify the sheriff in the offender's county of registration when the offender will be working for a specified period of time in another county and will maintain a temporary residence in that county, which may include a hotel or other transient lodging. The sheriff is then required to notify the Department of Justice, which will, in turn, notify the sheriff of the county in which the offender will be working. This provision becomes effective June 1, 2007. It requires an offender to notify the sheriff in person of the intent to move out of state at least 10 days before the departure date. The person is required to provide, in writing, the address, municipality, county, and state of intended residence. It requires the sheriff to provide an offender with written proof of registration. It authorizes the sheriff to require an offender to verify his information more frequently than otherwise required and to take a photograph of an offender if the current photograph on file no longer provides a true and accurate likeness. If the sheriff requests that an offender appear in person at the sheriff's office to be photo-graphed, he must appear within 72 hours. Willful failure to do so is a Class 1 misdemeanor. It requires a registered offender to petition the court in order to terminate registration. Under current law, registration on the 10- year registry terminates automatically at the end of 10 years. Under this act, the court may terminate registration if ( i) the petitioner has not been arrested for any crime that would require registration since completing his sentence, ( ii) the relief complies with any federal standards ap |
| OCLC number | 20957799 |
