NORTH CAROLINA
REGISTER
VOLUME 32 ● ISSUE 19 ● Pages 1824 – 1916
April 2, 2018
I. IN ADDITION
Insurance, Department of – Change in Public Hearing Location .................... 1824
II. PROPOSED RULES
Commerce, Department of
Banks, Office of the Commissioner of ................................ ............................ 1825 – 1840
Public Safety, Department of
Alcoholic Beverage Control Commission ................................ ...................... 1840 – 1844
Environmental Quality, Department of
Wildlife Resources Commission ................................ ................................ ..... 1844 – 1849
Well Contractors Certification Commission ................................ ................... 1849 – 1850
III. APPROVED RULES........................................................................................ 1851 – 1906
Health and Human Services, Department of
Child Care Commission
Public Safety, Department of
Alcoholic Beverage Control Commission
Environmental Quality, Department of
Environmental Management Commission
Occupational Licensing Boards and Commissions
General Contractors, Licensing Board for
Cosmetic Art Examiners, Board of
Hearing Aid Dealers and Fitters Board
IV. RULES REVIEW COMMISSION ................................................................. 1907 – 1913
V. CONTESTED CASE DECISIONS
Index to ALJ Decisions ................................ ................................ ................... 1914 – 1916
PUBLISHED BY
The Office of Administrative Hearings
Rules Division Julian Mann III, Director
6714 Mail Service Center Molly Masich, Codifier of Rules
Raleigh, NC 27699-6714 Dana McGhee, Publications Coordinator
Telephone (919) 431-3000 Lindsay Woy, Editorial Assistant
Fax (919) 431-3104 Contact List for Rulemaking Questions or Concerns
For questions or concerns regarding the Administrative Procedure Act or any of its components, consult with the agencies below. The bolded headings are typical issues which the given agency can address, but are not inclusive.
Rule Notices, Filings, Register, Deadlines, Copies of Proposed Rules, etc.
Office of Administrative Hearings
Rules Division
1711 New Hope Church Road (919) 431-3000
Raleigh, North Carolina 27609 (919) 431-3104 FAX
contact: Molly Masich, Codifier of Rules molly.masich@oah.nc.gov (919) 431-3071
Dana McGhee, Publications Coordinator dana.mcghee@oah.nc.gov (919) 431-3075
Lindsay Woy, Editorial Assistant lindsay.woy@oah.nc.gov (919) 431-3078
Rule Review and Legal Issues
Rules Review Commission
1711 New Hope Church Road (919) 431-3000
Raleigh, North Carolina 27609 (919) 431-3104 FAX
contact: Abigail Hammond, Commission Counsel abigail.hammond@oah.nc.gov (919) 431-3076
Amber Cronk May, Commission Counsel amber.may@oah.nc.gov (919) 431-3074
Amanda Reeder, Commission Counsel amanda.reeder@oah.nc.gov (919) 431-3079
Jason Thomas, Commission Counsel jason.thomas@oah.nc.gov (919) 431-3081
Alexander Burgos, Paralegal alexander.burgos@oah.nc.gov (919) 431-3080
Julie Brincefield, Administrative Assistant julie.brincefield@oah.nc.gov (919) 431-3073
Fiscal Notes & Economic Analysis and Governor's Review
Office of State Budget and Management
116 West Jones Street (919) 807-4700
Raleigh, North Carolina 27603-8005 (919) 733-0640 FAX
Contact: Anca Grozav, Economic Analyst osbmruleanalysis@osbm.nc.gov (919) 807-4740
Carrie Hollis, Economic Analyst osbmruleanalysis@osbm.nc.gov (919) 807-4757
NC Association of County Commissioners
215 North Dawson Street (919) 715-2893
Raleigh, North Carolina 27603
contact: Amy Bason amy.bason@ncacc.org
NC League of Municipalities (919) 715-4000
150 Fayetteville Street, Suite 300
Raleigh, North Carolina 27601
contact: Sarah Collins scollins@nclm.org
Legislative Process Concerning Rule-making
545 Legislative Office Building
300 North Salisbury Street (919) 733-2578
Raleigh, North Carolina 27611 (919) 715-5460 FAX
Karen Cochrane-Brown, Director/Legislative Analysis Division karen.cochrane-brown@ncleg.net
Jeff Hudson, Staff Attorney Jeffrey.hudson@ncleg.net
NORTH CAROLINA REGISTER
Publication Schedule for January 2018 – December 2018
FILING DEADLINES
NOTICE OF TEXT
PERMANENT RULE
TEMPORARY RULES
Volume & issue number
Issue date
Last day for filing
Earliest date for public hearing
End of required comment
Period
Deadline to submit to RRC
for review at
next meeting
RRC Meeting Date
Earliest Eff.
Date of
Permanent Rule
Delayed Eff. Date of
Permanent Rule
31st legislative day of the session beginning:
270th day from publication in the Register
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This document is prepared by the Office of Administrative Hearings as a public service and is not to be deemed binding or controlling.EXPLANATION OF THE PUBLICATION SCHEDULE
This Publication Schedule is prepared by the Office of Administrative Hearings as a public service and the computation of time periods are not to be deemed binding or controlling. Time is computed according to 26 NCAC 2C .0302 and the Rules of Civil Procedure, Rule 6.
GENERAL
The North Carolina Register shall be published twice a month and contains the following information submitted for publication by a state agency:
(1) temporary rules;
(2) text of proposed rules;
(3) text of permanent rules approved by the Rules Review Commission;
(4) emergency rules
(5) Executive Orders of the Governor;
(6) final decision letters from the U.S. Attorney General concerning changes in laws affecting voting in a jurisdiction subject of Section 5 of the Voting Rights Act of 1965, as required by G.S. 120-30.9H; and
(7) other information the Codifier of Rules determines to be helpful to the public.
COMPUTING TIME: In computing time in the schedule, the day of publication of the North Carolina Register is not included. The last day of the period so computed is included, unless it is a Saturday, Sunday, or State holiday, in which event the period runs until the preceding day which is not a Saturday, Sunday, or State holiday.
FILING DEADLINES
ISSUE DATE: The Register is published on the first and fifteen of each month if the first or fifteenth of the month is not a Saturday, Sunday, or State holiday for employees mandated by the State Personnel Commission. If the first or fifteenth of any month is a Saturday, Sunday, or a holiday for State employees, the North Carolina Register issue for that day will be published on the day of that month after the first or fifteenth that is not a Saturday, Sunday, or holiday for State employees.
LAST DAY FOR FILING: The last day for filing for any issue is 15 days before the issue date excluding Saturdays, Sundays, and holidays for State employees.
NOTICE OF TEXT
EARLIEST DATE FOR PUBLIC HEARING: The hearing date shall be at least 15 days after the date a notice of the hearing is published.
END OF REQUIRED COMMENT PERIOD An agency shall accept comments on the text of a proposed rule for at least 60 days after the text is published or until the date of any public hearings held on the proposed rule, whichever is longer.
DEADLINE TO SUBMIT TO THE RULES REVIEW COMMISSION: The Commission shall review a rule submitted to it on or before the twentieth of a month by the last day of the next month.
FIRST LEGISLATIVE DAY OF THE NEXT REGULAR SESSION OF THE GENERAL ASSEMBLY: This date is the first legislative day of the next regular session of the General Assembly following approval of the rule by the Rules Review Commission. See G.S. 150B-21.3, Effective date.IN ADDITION
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Department of Insurance
Change in Public Hearing Location
On April 18, 2018 at 10:00 a.m., the North Carolina Department of Insurance will be holding a public hearing for the readoption of the following two rules:
• 11 NCAC 20 .0202
• 11 NCAC 20 .0204
The location of the public hearing needs to be changed from Room B090B located in the Administration Building at 116 W. Jones Street, Raleigh, NC 27603.
The new location for the public hearing will be the 1st Floor Hearing Room, Room 131 (Albemarle Building) located at 325 N. Salisbury Street, Raleigh, NC 27603.
The Notice of Text was published in Volume 32 (page 1742) of the North Carolina Register on March 15, 2018.
PROPOSED RULES
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Note from the Codifier: The notices published in this Section of the NC Register include the text of proposed rules. The agency must accept comments on the proposed rule(s) for at least 60 days from the publication date, or until the public hearing, or a later date if specified in the notice by the agency. If the agency adopts a rule that differs substantially from a prior published notice, the agency must publish the text of the proposed different rule and accept comment on the proposed different rule for 60 days.
Statutory reference: G.S. 150B-21.2.
TITLE 04 – DEPARTMENT OF COMMERCE
Notice is hereby given in accordance with G.S. 150B-21.2 and G.S. 150B-21.3A(c)(2)g. that the Office of the Commissioner of Banks intends to readopt with substantive changes the rules cited as 04 NCAC 03E .0101, .0102, .0201, .0401, .0402, .0601, .0602; 03F .0201, .0301, .0402, .0501, .0504-.0509, .0601, .0602; 03H .0102, .0103; 03J .0101, .0201-.0203, .0205, .0301, .0302, .0304, .0306, .0401; 03K .0101, .0201-.0203, .0205, .0206, .0301, .0401, .0402, .0501, .0502, .0601, .0701, .0703; 03L .0102, .0202, .0301, .0303, .0501, .0502; 03M .0101, .0201, .0205 and .0403 and readopt without substantive changes the rules cited as 04 NCAC 03E .0204, .0302; 03J .0204, .0303, .0305, .0402; 03K .0204, .0302, .0403-.0405, .0702; 03L .0101, .0201, .0302, .0401-.0403, .0601-.0603; 03M .0102, .0202-.0204, .0206, .0401, .0402, .0501, .0502, .0602, and .0701-.0703.
Pursuant to G.S. 150B-21.2(c)(1), the text of the rule(s) proposed for readoption without substantive changes are not required to be published. The text of the rules are available on the OAH website: http://reports.oah.state.nc.us/ncac.asp.
Pursuant to G.S. 150B-21.17, the Codifier has determined it impractical to publish the text of rules proposed for repeal unless the agency requests otherwise. The text of the rule(s) are available on the OAH website at http://reports.oah.state.nc.us/ncac.asp.
Link to agency website pursuant to G.S. 150B-19.1(c):
https://www.nccob.gov/Public/finiancialinstitutions/ReadoptionofRules.aspx
Proposed Effective Date: August 1, 2018
Public Hearing:
Date: May 3, 2018
Time: 9:00 a.m.
Location: 316 W. Edenton Street, 2nd Floor Hearing Room, Raleigh, NC 27603
Reason for Proposed Action: The Office of the Commissioner of Banks and the Banking Commission have met with stakeholders to review the rules for readoption in Subchapters 03E, 03F, 03H, 03J, 03K, 03L and 03M and have determined that the rules needed to be amended in order to modernize and clarify the language, improve readability, update the rules to current practices, and delete unnecessary or outdated language. The repeals are being made as part of the readoption process to eliminate outdated rules, eliminate rules that restate what is already in the general statutes, or eliminate rules that are no longer useful or necessary, and to reduce regulatory burden on our regulated entities.
Comments may be submitted to: Lonnie E. Christopher, Rules Coordinator, 316 W. Edenton Street, 4309 Mail Service Center, Raleigh, NC 27699-4309, phone (919) 715-7438, fax (919) 733-6918, lchristopher@nccob.gov
Comment period ends: June 1, 2018
Procedure for Subjecting a Proposed Rule to Legislative Review: If an objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission after the adoption of the Rule. If the Rules Review Commission receives written and signed objections after the adoption of the Rule in accordance with G.S. 150B-21.3(b2) from 10 or more persons clearly requesting review by the legislature and the Rules Review Commission approves the rule, the rule will become effective as provided in G.S. 150B-21.3(b1). The Commission will receive written objections until 5:00 p.m. on the day following the day the Commission approves the rule. The Commission will receive those objections by mail, delivery service, hand delivery, or facsimile transmission. If you have any further questions concerning the submission of objections to the Commission, please call a Commission staff attorney at 919-431-3000.
Fiscal impact (check all that apply). State funds affected Environmental permitting of DOT affected
Analysis submitted to Board of Transportation Local funds affected Substantial economic impact (≥$1,000,000) Approved by OSBM No fiscal note required by G.S. 150B-21.4 No fiscal note required by G.S. 150B-21.3A(d)(2)
CHAPTER 03 - BANKING COMMISSION
SUBCHAPTER 03E - LICENSEES UNDER NORTH CAROLINA CONSUMER FINANCE ACT
SECTION .0100 – LICENSING
04 NCAC 03E .0101 APPLICATION
(a) No person shall make loans under the provisions of the North Carolina Consumer Finance Act without first obtaining a license from the Commissioner of Banks. The application for a consumer finance license shall contain a request for a license to operate a business under the North Carolina Consumer Finance Act, incorporate all statutory requirements and criteria, and include payment of the statutory fee. A copy of the application, and information concerning its filing, may be obtained from the agency's website located at https://www.nccob.gov.
The form shall be obtained from and filed with: PROPOSED RULES
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Office of the Commissioner of Banks
316 West Edenton Street
4309 Mail Service Center
Raleigh, North Carolina 27699-4309.
(b) Upon receipt of an application for a consumer finance license, the Commissioner of Banks shall give written notice of the application to all licensees operating within the community proposed to be served as described in the application. Where a licensee holds two or more licenses the notification is to be mailed provided to the home office of such the licensee. The notification may be by copy of acknowledgment to the applicant.
(c) Following an investigation of the application pursuant to G.S. 53-168, the Commissioner of Banks shall decide as to:
(1) approval of the application, or
(2) denial of the application.
Authority G.S. 53-92; 53-95; 53-104; 53C-2-1; 53C-2-2; 53-168; 53-169; 53-170; 53-171; 53-185; 150B-21.2.
04 NCAC 03E .0102 APPROVAL
Authority G.S. 53-92; 53-95; 53-104; 53-168; 58-169; 53-172; 53-185; 53-188.
SECTION .0200 - ACTIONS REQUIRING APPROVAL OF COMMISSIONER OF BANKS
04 NCAC 03E .0201 OPERATION OF OTHER BUSINESS IN SAME OFFICE
Authority G.S. 53-92; 53-122(3); 53-168; 53-172; 53-185; 150B-21.2.
04 NCAC 03E .0204 TRANSFER OF LICENSE AND CHANGE OF LOCATION (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0300 - REPORTS REQUIRED BY COMMISSIONER OF BANKS
04 NCAC 03E .0302 ANNUAL REPORT (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0400 - EXAMINATION
04 NCAC 03E .0401 EXAMINATION
04 NCAC 03E .0402 REPORTS OF EXAMINATION
Authority G.S. 53-92; 53-184; 53-185.
SECTION .0600 - CONSUMER FINANCE OFFICES
04 NCAC 03E .0601 BOOKS AND RECORDS
Each consumer finance office licensed by the Commissioner of Banks shall keep the following books and accounting records. Except as may be permitted by G.S. 53-184(a), these records shall be maintained in each office and be readily available to the Commissioner of Banks or his authorized agent. No books or records of the licensee shall show any account or reflect any
transaction other than those Licensees must maintain separate loan ledgers and accounts directly related to the making and collecting of loans within the provisions of the Consumer Finance Act. Act, including Where where a licensee is also an installment paper dealer, completely separate books and records shall be maintained, including for general ledger purposes a separate cash account. dealer. Allocation of expenses shall be made monthly according to appropriate and reasonable accounting principles.
All books and records covered by these Rules must shall be retained for a period of not less than three years after the last transaction:
(1) Cash Transaction Journal. The cash transaction journal shall be the book of original entry in which all All transactions of receipts and disbursements of any nature or amount whatsoever shall be itemized. in a cash transaction journal, which shall be the book of original entry. Each transaction made in connection with a loan shall be identified with the loan by the name or account number of the borrower and shall clearly define the nature of each charge, collection, or refund made in connection with such loan. All entries shall be made as of reflect the exact date the transactions occur.
(2) General Ledger. The general ledger shall be double entry, showing in full detail the total of assets, liabilities, capital, income, and expenses. Each account shall be clearly and appropriately separately and distinctly designated. No net or "wash" entries shall be made to any account. The general ledger shall be posted at least once each month and such the posting shall include all transactions through the last business day of the month. The actual posting must shall be completed by the 20th 30th day of each ensuing month for the previous month's business. In instances where an organization operates two or more offices, the general ledger may be maintained in a central accounting office of the organization, provided a trial balance shall be made as of the last business day of each month and a copy placed on file in each office not later than the last business day of the following month. Each debit or credit entry appearing on the general ledger each month shall appear on the trial balance. A detailed licensee shall maintain a description of each general ledger entry originating outside of a local office and not reflected on the cash book of that office shall be on file in each office to support such entries appearing on the general ledger. This shall include entry, including adjusting and closing entries. If any account on the general ledger does not agree with the corresponding account on the annual report to the Commissioner of Banks, a supplement to the annual report shall be furnished which that reconciles or explains any differences. PROPOSED RULES
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(3) Individual Account Record. A separate account record shall be maintained for each loan made. Each account record shall provide the following information:
(a) name and address of borrower spouse's name, borrower(s) and the name of any other person obligated directly or indirectly on the loan;
(b) cross reference to other loans of the borrower, or spouse, or endorser, guarantor, or surety, or to any joint obligation of the borrower;
(c) account number;
(d) date of loan and maturity;
(e) length of contract;
(f) the cash advance, finance charge, number of payments and amount of each;
(g) date and amount of each payment, an allocation between principal, and interest, principal, interest, and any fees authorized by statute for each payment, and the remaining loan balance after each payment;
(h) brief description of security;
(i) type of insurance, insurance origination fees, and amount of insurance premium for each coverage written;
(j) amount of recording fee or non-filing charges;
(k) amount of any other charge whatsoever made in connection with the loan;
(l) amount of unearned insurance premium refunded for each coverage written;
(m) if refunds are paid by cash or check, acknowledgment of receipt of refund by signature of borrower; refund; and
(n) contract interest rate and the annual percentage rate computed under Regulation Z, if different.
(4) Index of Borrowers. Each office shall keep an a single report showing a cumulative index record on which of all loans to each individual, which shall be entered in order, showing by date made, showing the account number, amount of loan, and date of cancellation. This record shall be maintained on individual index cards or on the face of the borrower's individual file, "shuck," "jacket," or folder and shall be filed alphabetically or by account number, provided where the account number is used an alphabetical cross index be available to the examiner.
(5) Loan Documents. After January 1, 1994, loans Loans made by a licensee shall on the loan contract contain the following statement printed in a conspicuous manner: "This loan is regulated by the provisions of the North Carolina Consumer Finance Act, located at Chapter 53, Article 15 of the North Carolina General Statutes."
(6) Judgments. When a loan has been reduced to final judgment, all of the following provisions shall be complied with:
(a) the individual account record maintained pursuant to Subpart (3) of this Rule shall clearly be designated a judgment account;
(b) payments received shall be identified and applied on the judgment account record;
(c) the licensee shall maintain in the office from which the judgment account originated a copy of the final judgment and any other court documents which that are necessary to disclose the following information:
(i) final judgment date;
(ii) name of licensee;
(iii) final judgment debtor's name;
(iv) date suit was filed;
(v) nature of the suit;
(vi) name and location of the court;
(vii) amount of the final judgment, specifying principal, interest charges, any fees authorized by statute, and court costs; and
(viii) disposition of the case;
(d) a licensee which that charges a borrower for court costs it incurred on a final judgment account shall itemize such costs on the individual account record and retain a receipt or other document substantiating the costs; and
(e) a licensee shall retain a copy of the sheriff's return of execution issued when property is sold pursuant to a final judgment.
(7) Repossessions. When property is taken in accordance with the terms of a security agreement or by judicial process or abandonment, the individual account record shall be clearly designated as a repossession account and shall state when and how possession of the security was obtained and shall identify the proceeds of the sale of the property. The licensee shall also retain in the office in which the repossession account originated, all of the following:
(a) a copy of any agreement entered into with the borrower with respect to the terms of surrender; PROPOSED RULES
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(b) a copy of the notice of sale, together with evidence of mailing or personal delivery;
(c) an inventory of the property taken, unless it otherwise appears in detail on the notice of sale;
(d) a signed bill of sale or a statement from the purchasers, or from the auctioneer if the sale was public, describing the collateral purchased and showing the amounts paid;
(e) evidence that the sale took place on the date set forth in the notice of sale, including a notice of any bids received;
(f) copy of a detailed final accounting sent to the borrower setting forth the disposition of the proceeds of sale and the principal balance due, if any, on the account; and
(g) paid receipts evidencing costs incurred in the repossession and sale of the security which that have been charged to the borrower.
(8) Insurance Records. A licensee shall maintain in each office where a loan account originated, a record of any claims paid under insurance written in connection with a consumer finance loan. The records shall include: Late Fees.
(a) the loan number and name of debtor; Lenders may apply a borrower's most recent payment to the oldest installment due;
(b) description of the insurance claim, i.e., whether death claim, property damage, or claim for benefits under accident and health insurance; and A lender may not collect more than one late fee from any full or partial payment made toward a particular scheduled installment payment; however, a lender may collect more than one late fee from any payment made toward more than one installment payment, provided the number of late fees collected does not exceed the number of different installment payments to which such payment was applied.
(c) in the case of claims under credit life insurance, a copy of the certified death certificate. If a lender declares a borrower in default and accelerates a loan, the lender may collect a late fee for each installment payment that is past due for 10 days or more.
(d) If a lender refinances a loan, a lender may include in the amount financed late fees for each installment payment that is past due for 10 days or more.
(e) If a loan reaches maturity, a lender may include in the final balance owed a late fee for each installment payment that remains past due for 10 days or more.
(9) Deferral Charges. For any loan made on or after July 1, 2013, licensees may assess a deferral charge of one and one-half percent (1 ½ percent) for each month of the remaining loan term on each installment owed after the date of deferral. Licensees may charge a late fee on deferred payments that remain past due for 10 days or more after the agreed upon due date. Deferrals do not alter the maturity date of the loan contract, even where a payment is deferred beyond maturity.
(10) ELT Fees. Licensees who are required by the North Carolina Department of Motor Vehicles (NCDMV) to use its electronic lien title (ELT) system to file or record the licensee's security interest in a vehicle may collect from borrowers those fees actually charged by NCDMV, ELT vendors, and service provider vendors to use the ELT system. When a borrower takes out a junior lien on a vehicle pledged as security, licensees who are senior lienholders with an already perfected lien may collect from borrowers those fees actually charged to the licensee by NCDMV, ELT vendors, and service provider vendors, provided the licensee has disclosed the potential for the fee at origination of the loan. Licensees should account for ELT fees as they account for other government recording fees as described in Sub-item (3)(j) of this Rule.
Authority G.S. 53-92; 53-104; 20-58.4A; 53-184; 53-185; 53-177; 150B-21.2; 53C-2-1; 53C-2-2.
04 NCAC 03E .0602 COLLECTION PRACTICES
Authority G.S. 53C-2-1; 53C-2-2; 53-180; 53-185.
SUBCHAPTER 03F - LICENSEES UNDER MONEY TRANSMITTERS ACT
SECTION .0200 - ADMINISTRATIVE
04 NCAC 03F .0201 DEFINITIONS
Authority G.S. 53-208.27.
SECTION .0300 - LICENSING
04 NCAC 03F .0301 APPLICATION FOR A LICENSE
(a) Any person who wishes to sell or issue checks in this State pursuant to the Money Transmitters Act must first obtain a license PROPOSED RULES
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issued by the Commissioner. An application for a license can be obtained from and shall be filed pursuant to Rule .0201(b) of this Subchapter.
(b) An application for a Money Transmitters' license shall include information required by G.S. 53-208.5 through G.S. 53-208.10 of Chapter 53, Article 16A. The application must be submitted on a form provided by the Commissioner.
(c) In addition to the documents and information listed in Paragraph (b) of this Rule, the Commissioner may require additional information necessary to complete an investigation pursuant to G.S. 53-208.10.
(d) Incomplete application files shall be closed and deemed denied withdrawn without prejudice when the applicant has not submitted information requested by the Commissioner within 30 days of such request.
Authority G.S. 53-208.3; 53-208.27; 53-208.45; 53-208.60.
SECTION .0400 - OPERATIONS
04 NCAC 03F .0402 SURRENDER OF LICNENSE
Authority G.S. 53-208.27.
SECTION .0500 - REPORTING AND NOTIFICATIONS
04 NCAC 03F .0501 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Authority G.S. 53-208.27.
04 NCAC 03F .0504 AGENT ACTIVITY REPORTS
04 NCAC 03F .0505 AMENDMENTS TO APPLICATION
04 NCAC 03F .0506 REVOCATION OF CANCELLATION OF SURETY BOND
04 NCAC 03F .0507 CEASING OPERATOINS
04 NCAC 03F .0508 IMPAIRMENT OF MINIMUM NET WORTH
04 NCAC 03F .0509 DISHONOR OR DEFAULT IN PAYMEN INSTRUMENT
Authority G.S. 53-208.5; 53-208.8; 53-208.27.
SECTION .0600 - EXAMINATION; BOOKS AND RECORDS
04 NCAC 03F .0601 RECORD AND BOOKKEEPING REQUIREMENTS
04 NCAC 03F .0602 EXAMINATION FEE
Authority G.S. 53-208.15; 53-208.16; 53-208.20; 53-208.27; 53-282(c).
SUBCHAPTER 03H - APPLICATIONS BY REGIONAL BANK HOLDING COMPANIES
SECTION .0100 - REGIONAL BANK HOLDING COMPANIES
04 NCAC 03H .0102 REGIONAL BANK HOLDING COMPANY ACQUISITIONS
04 NCAC 03H .0103 BANK HOLDING COMPANY REGISTRATION
Authority G.S. 53-211; 53-214(b); 53-227; 53-230.
SUBCHAPTER 03J - REFUND ANTICIPATION LOAN
SECTION .0100 - ADMINISTRATIVE
04 NCAC 03J .0101 DEFINITIONS; FILINGS
(a) Terms defined in G.S. 53-246 have the same meaning as in this Subchapter. As used in this Subchapter, unless the context clearly requires otherwise:
(1) "Applicant" shall have the same meaning as set forth in G.S. 53-246(1).
(2) "Commission" shall have the same meaning as set forth in G.S. 53-246(2).
(3) "Commissioner" shall have the same meaning as set forth in G.S. 53-246(3).
(4)(1) "Controlling person" shall mean means any person as defined in G.S. 53-246(7) who owns or holds with the power to vote 10% or more of the equity securities of the registrant, or who has the power to direct the management and policy of the registrant.
(5) "Creditor" shall have the same meaning as set forth in G.S. 53-246(4).
(6)(2) "Creditor loan fee" shall mean means the fee charges, fees, or other consideration charged or imposed by the creditor which funds the refund anticipation loan in consideration for funding the refund anticipation loan. for the making of a refund anticipation loan.
(7) "Debtor" shall have the same meaning as set forth in G.S. 53-246(5).
(8)(3) "Electronic filing fee" shall mean means the fee imposed by the facilitator in consideration for the electronic filing of a tax return.
(9) "Executive officer" shall have the same meaning as such term is defined in Regulation "O" promulgated by the Board of Governors of the Federal Reserve System, and codified in the Code of Federal Regulations at Title 12, Chapter II, Part 215.
(10) "Facilitator" shall have the same meaning as set forth in G.S. 53-246(6).
(11)(4) "Facilitator loan fee" shall mean means the fee charges, fees, or other consideration charged or imposed by the facilitator in consideration for assisting the debtor in obtaining the refund anticipation loan. for the making of a refund anticipation loan.
(12) "Income tax return preparation fee" shall mean the fee imposed by a person in consideration for preparation of the debtor's tax returns.
(13) "Loan-related fee" shall mean any fee other than a creditor fee, facilitator loan fee or PROPOSED RULES
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electronic filing fee paid by the debtor for transmittal to third persons who provide services in connection with the refund anticipation loan.
(14) "Person" shall have the same meaning as set forth in G.S. 53-246(7).
(15) "Refund anticipation loan" shall have the same meaning as set forth in G.S. 53-246(8).
(16)(5) "Refund Anticipation Loan Act" shall mean means the Refund Anticipation Loan Act codified at Chapter 53, Article 20 of the North Carolina General Statutes (G.S. 53-245, et seq.).
(17) "Refund anticipation loan fee" shall have the same meaning as set forth in G.S. 53-246(9) and shall include a creditor fee, facilitator loan fee, and loan-related fee as defined herein.
(18) "Registrant" shall have the same meaning as set forth in G.S. 53-246(10).
(19)(6) "Transmitter" shall mean means any person as defined herein who transmits electronic returns directly to the Internal Revenue Service. This term shall include persons who receive information to be reformatted and transmitted to the Internal Revenue Service, i.e., third-party transmitters.
(b) An application for registration or any report, notice, form or other document which is required by law or rule to be filed with the Commissioner shall be addressed as follows: obtained from and submitted electronically at https://www.nccob.gov.
Office of the Commissioner of Banks
4309 Mail Service Center
Raleigh, North Carolina 27699-4309.
Authority G.S. 53-245; 53-246; 53-248; 53-253; 150B-21.2.
SECTION .0200 - APPLICATION AND RENEWAL
04 NCAC 03J .0201 APPLICATION FOR REGISTRATION AS A FACILITATOR
(a) Any person who would like to engage in business as a facilitator pursuant to the Refund Anticipation Loan Act shall first be registered with the Commissioner, unless such person is exempt from registration pursuant to G.S. 53-247(c) or G.S. 53-254. An application for registration shall be obtained from the Commissioner and shall be filed pursuant to Rule .0101(b) of this Subchapter.
(b)(a) The application for registration as a facilitator shall include the following:
(1) A description of the applicant's organizational structure, including the name, business and residence address address, and business telephone number of the applicant, its partners, executive officers, directors and the name of its controlling persons;
(2) Copies of the following documents, where applicable:
(A) The applicant's Articles of Incorporation, Articles of Organization, or general or limited partnership agreement;
(B) A Certificate of Existence or Certificate of Good Standing not more than 90 days old from the applicant's state of incorporation;
(C) A Certificate of Authority to do business in this State; and
(D) A copy of the applicant's Certificate of Assumed Name; Name.
(3) A description of the applicant's operations, including the names and addresses of the banks which lenders that will fund refund anticipation loans to its customers, and the names and addresses of transmitters and any other intermediary parties involved in the process of facilitating refund anticipation loans;
(4) A description of the business(es) in which the applicant is primarily engaged;
(5) The applicant's Electronic Filer Identification Number (EFIN) and Preparer Tax Identification Number (PTIN) as provided by the Internal Revenue Service;
(6) Proof that the applicant has been accepted by the Internal Revenue Service to participate in its electronic filing program for the present tax year;
(7) Disclosure of any civil judgments entered against the applicant, its partners, executive officers, directors or its controlling persons during the past 10 years which that have remained partially or wholly unpaid;
(8) Disclosure of any civil proceedings pending against or civil judgments entered against the applicant, its partners, executive officers, directors or its controlling persons which that involve fraud or dishonesty;
(9) Disclosure of any felony convictions entered against the applicant, its partners, executive officers, directors or its controlling persons;
(10) Disclosure of any misdemeanor convictions entered against the applicant its partners, executive officers, directors or its controlling persons which that involve theft, fraud, or dishonesty;
(11) Disclosure of any enforcement proceeding brought against the applicant its partners, executive officers, directors or its controlling persons by any agency or department of this State, the Federal government or any other state which that involves the revocation or suspension of any business license;
(12) Disclosure of whether the applicant, any partner, executive officer, director, or its controlling person has persons have been denied acceptance in or suspended from the Electronic Filing Program of the Internal Revenue Service; PROPOSED RULES
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(13) Disclosure of whether the applicant is, or has ever been, the subject of the following proceedings: bankruptcy, assignment for the benefit of creditors, receivership, conservatorship, or similar proceeding; and
(14) Three business references, including one bank reference;
(15)(14) The address of each office in this State at which that the applicant intends to facilitate refund anticipation loans.
(c) The application for registration as a facilitator shall be accompanied by a fee made payable to the Commissioner in the amount set forth in G.S. 53-248(a).
(d) The application shall be in writing and verified.
(e)(b) Incomplete application files applications shall be closed and the application deemed denied without prejudice withdrawn when the applicant has not submitted information requested by the Commissioner within 30 days of request. If an application is withdrawn, the applicant shall submit a new application and pay all fees associated with the application.
Authority G.S. 53-245(b); 53-247(a); 53-248(a); 53-253; 150B-21.2.
04 NCAC 03J .0202 ISSUANCE OF A CERTIFICATE OF REGISTRATION
04 NCAC 03J .0203 EXPIRATION AND RENEWAL
Authority G.S. 53-248(a), (b); 53-253; 150B-21.2.
04 NCAC 03J .0204 APPLICATION FOR RENEWAL OF CERTIFICATE OF REGISTRATION (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03J .0205 NONTRANSFERABILITY OF CERTIFICATE OF REGISTRATION
(a) A Certificate of Registration shall be neither transferable nor assignable.
(b) The circumstances under which the Commissioner shall deem a change in the registrant's organizational structure to constitute a transfer or assignment of the Certificate of Registration shall include, but not be limited to, the following:
(1) If the registrant is a corporation:
(A) A change in ownership of 50% or more of the registrant's stock;
(B) The conversion of the corporation into a general or limited partnership or proprietorship;
(2) If the registrant is a general or limited partnership:
(A) A change in one of the registrant's general partners;
(B) The conversion of the general partnership into a limited partnership, corporation or proprietorship;
(C) The conversion of the limited partnership into a general partnership, corporation or proprietorship;
(3) If the registrant is a proprietor:
(A) The conversion of the proprietorship into a general or limited partnership or corporation;
(B) The sale of all of the assets of the registrant's business to another person.
(c)(b) Upon a change in organization organizational structure that may include a change to or from a sole proprietorship, partnership, limited partnership, general partnership, limited liability company, or corporation as set forth in Paragraph (b) of this Rule, the Certificate of Registration shall become void and the registrant shall surrender its Certificate of Registration to the Commissioner within 30 days of such change. void. If the entity which results from the change in the registrant's organization would like to engage in business as a facilitator in this State, it shall apply for a Certificate of Registration pursuant to Rule .0201 of this Section.
Authority G.S. 53-253; 150B-21.2.
SECTION .0300 - OPERATIONS, REPORTING REQUIREMENTS, NOTIFICATIONS
04 NCAC 03J .0301 CHECK CASHING SERVICES
Authority G.S. 53-250(5); 53-253; 150B-21.2.
04 NCAC 03J .0302 RECORD AND BOOKKEEPING REQUIREMENTS
(a) A registrant shall maintain the following records with respect to each application for a refund anticipation loan in this State. These records shall be kept in an office or offices of the registrant in this State. This Rule shall not be interpreted to require a registrant to maintain one central office at which all records required herein are located:
(1) Name of applicant for a refund anticipation loan;
(2) Social security number of applicant for a refund anticipation loan;
(3) Date of application;
(4) Disposition of application, e.g., whether loan was funded, denied, etc.;
(5) The gross amount of the refund anticipation loan;
(6) The amount of the creditor fee;
(7) The amount of the facilitator loan fee, if any;
(8) The amount of the loan-related fees, if any;
(9)(8) The amount of the electronic filing fee;
(10)(9) The amount of refund anticipation loan proceeds disbursed by the registrant to the debtor;
(11)(10) The date on which refund anticipation loan proceeds were disbursed by the registrant to the debtor; and
(12)(11) The identity of the registrant's executive officer, partner or employee individual originating the application for the refund anticipation loan; loan.
(13) The number, identity of drawer and amount of the check delivered to the debtor in payment of the proceeds of the refund anticipation loan; PROPOSED RULES
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(14) A copy of Internal Revenue Service Form No. 8453 or any successor Form.
(b) An original (where the drawer is the registrant) or a copy Evidence of all checks disbursement delivered by the registrant to each debtor in payment of the proceeds of the refund anticipation loan shall be available upon request by the Commissioner.
(c) All records required by Paragraph (a) of this Rule may be maintained in any reasonable manner that the registrant selects. Where applicable, the information required by Paragraph (a) of this Rule may be maintained by the retention of copies of forms used to comply with state or federal statutes, rules and regulations.
(d) All records required to be kept pursuant to Paragraph (a) of this Rule may be maintained in the form of magnetic tape, magnetic disk or other form of computer, electronic or microfilm media. However, records kept in this manner shall be convertible into clearly legible, tangible documents within 24 hours of request. This time period shall be extended for an additional reasonable time by the Commissioner if the registrant demonstrates to the satisfaction of the Commissioner that it cannot provide the records requested within 24 hours of request.
(e)(c) All records required to be kept pursuant to Paragraph (a) of this Rule shall be kept for a period of at least three years.
Authority G.S. 53-249; 53-250; 53-253; 150B-21.2.
04 NCAC 03J .0303 FILING AND POSTING OF FEE SCHEDULE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03J .0304 DISCLOSURES
(a) For the purposes of G.S. 53-249(d)(1), (2), the registrant shall disclose and provide a copy to the debtor the following fees:
(1) The creditor loan fee;
(2) The facilitator loan fee; and
(3) All loan-related fees;
(4)(3) The electronic filing fee; fee.
(5) The total dollar amount of the fees disclosed pursuant to Subparagraphs (a)(1)-(3) of this Rule.
(b) For the purposes of G.S. 53-249(d)(5), the term "appropriate taxing authority" shall mean the Internal Revenue Service.
(c) All disclosures made pursuant to G.S. 53-249(d) shall be made on a form or forms detached from the application. The registrant shall provide an applicant for a refund anticipation loan with a copy of all such disclosure forms. In the case of an application for a refund anticipation loan by a married couple who are filing a joint tax return, the registrant may satisfy this provision by providing one copy of all such disclosure forms to the couple.
Authority G.S. 53-249(d); 53-253; 150B-21.2.
04 NCAC 03J .0305 AMENDMENTS TO APPLICATION (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03J .0306 CESSATION OF OPERATIONS
Authority G.S. 53-253; 150B-21.2.
SECTION .0400 - ENFORCEMENT
04 NCAC 03J .0401 HEARINGS
Authority G.S. 53-251; 53-253; 150B-21.2.
04 NCAC 03J .0402 EXAMINATIONS, AUDITS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SUBCHAPTER 03K - REVERSE MORTGAGES
SECTION .0100 - ADMINISTRATIVE
04 NCAC 03K .0101 DEFINITIONS; FILINGS
(a) As used in this Subchapter, unless the context clearly requires otherwise:
(1) Terms defined in G.S. 53-257 shall have the same meaning as set forth therein;
(2) "Accounting period" shall mean means either a period of 12 months (or less in the first year of operation) ending December 31 or a fiscal year of not more than 12 months (or less in the first year of operation) ending on the last day of any month except December;
(3) "Application fee" shall mean means any fee accepted by an authorized lender or lenders in connection with an application for a reverse mortgage loan including any charge for soliciting, processing, placing or negotiating a reverse mortgage loan. The term does not include a third-party fee as such term is defined in Subparagraph (a)(8) of this Rule; loan;
(4) "Branch" has the same meaning as defined in G.S. 53-244.030(4);
(4)(5) "Certified Financial Statements" shall mean the Statement of Financial Position, Income Statement, Statement of Cash Flows, and Statement of Retained Earnings which have been attested by a certified public accountant; "Engaging in the mortgage business" has the same meaning at G.S. 53-244.030(11);
(5)(6) "Person" shall mean an individual, corporation, partnership, trust, association, or other entity; "Mortgage lender" has the same meaning as G.S. 53-244.030(20);
(6)(7) "Regulation Z" shall mean Regulation Z as promulgated by the Board of Governors of the Federal Reserve System and codified at 12 CFR Part 226, et seq.; "NC SAFE Act authorized lender" means a mortgage lender licensed in this State that has obtained a Notice of Authorization;
(7)(8) "RESPA" shall mean the Real Estate Settlement Procedures Act, codified at 12 USC 2601, et seq.; "Notice of Authorization" means the document granted by the Commissioner that authorizes a mortgage lender to engage in the business of making reverse mortgage loans. PROPOSED RULES
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(8)(9) "Third-Party fee" shall mean the fees or charges paid by the borrower for a mortgage loan to the lender for transmittal to third persons who provide services in connection with the mortgage loan, including, but not limited to, recording taxes and fees, reconveyance or releasing fees, appraisal fees, credit report fees, attorney's fees, fees for title reports and title searches, title insurance premiums, surveys and similar charges; "Person" has the same meaning as G.S. 53-244.030(25);
(9) "Truth In Lending Act" shall mean Title I of the Consumer Credit Protection Act, as amended, and codified at 15 USC 1601, et seq..
(b) Any application for authorization to make reverse mortgage loans, or any report, annual statement, amendment to application, notice or other document which that is required by law or rule shall be obtained and filed with the Commissioner of Banks located at 316 West Edenton Street, Raleigh, North Carolina 27603. The mailing address is 4309 Mail Service Center, Raleigh, North Carolina 27699-4309. Banks. Forms shall be obtained at http://www.nccob.gov.
Authority G.S. 53-257; 53-259; 53-271(a).
SECTION .0200 - AUTHORIZATION OF REVERSE MORTGAGE LENDERS
04 NCAC 03K .0201 APPLICATION FOR AUTHORIZATION AS A REVERSE MORTGAGE LENDER
(a) No person shall make reverse mortgage loans pursuant to the Reverse Mortgage Act without first obtaining authorization from the Commissioner. An application for authorization to make reverse mortgage loans shall be obtained from the Commissioner and shall be filed pursuant to Rule .0101(b) of this Subchapter.
(b) The following fees shall be submitted with the application for authorization to make reverse mortgage loans:
(1) A non-refundable application fee made payable to the Commissioner in the amount set forth in G.S. 53-258(b);
(2) An annual fee made payable to the Commissioner as set forth in G.S. 53-258(d).
(c)(a) The application shall be in writing writing, and verified by the oath of attested by the applicant. Applicant, and filed pursuant to Rule .0101(b) of this Subchapter, and shall include the following:
(d) The application shall include:
(1) The applicant's Articles of Incorporation, or General or Limited Partnership Agreement;
(2) A Certificate of Existence or Certificate of Good Standing, not more than 90 days old, from the applicant's state of incorporation;
(3) A Certificate of Authority to do business in this State;
(4) A copy of the applicant's Certificate of Assumed Name;
(5) Disclosure of any criminal proceedings pending against or criminal convictions entered against
the applicant, its partners, directors, principal officers or controlling persons;
(6) Disclosure of any civil proceedings pending against or civil judgments entered against the applicant, its partners, directors, principal officers or controlling persons which involve fraud or dishonesty;
(7) Disclosure of any civil judgments entered against the applicant, its partners, directors, principal officers or controlling persons during the past 10 years which have remained partially or wholly unpaid;
(8) Disclosure of the following proceedings involving the applicant: bankruptcy, assignment for the benefit of creditors, receivership, conservatorship or similar proceeding;
(9) Disclosure of enforcement proceedings by the Federal Housing Administration, Veterans Administration, Federal National Mortgage Association, or any other federal or state agency against the applicant, its partners, directors, principal officers or controlling persons which involve licensure or business activities as a mortgage broker or mortgage banker;
(10)(1) A an updated business plan that includes a description of the applicant's reverse mortgage business operations and organizational structure; operations;
(11)(2) The the addresses at which the applicant intends to engage in business as a reverse mortgage lender, including branch offices and the name of the each branch manager at each branch office; manager.
(12)(3) A a description of the business experience, current business activities and education of the applicant, its partners, directors, principal officers and controlling persons; and
(13)(4) Three three business references, including one bank reference.
(e)(b) In addition to the documents and information described in Paragraph (d)(a) of this Rule, the Commissioner may require additional information as necessary to make the findings required by G.S. 53-258 and G.S. 53-271.
(f) In the event of denial of an application, the Commissioner shall refund in full any annual fee paid pursuant to G.S. 53-258(d).
(g)(c) Incomplete application files may be closed and deemed denied without prejudice withdrawn when the applicant has not submitted information requested by the Commissioner within 30 days of the request.
Authority G.S. 53-258(a),(b),(d); 53-259; 53-271(a).
04 NCAC 03K .0202 NOTIFICATION OF INTENT TO ENGAGE IN REVERSE MORTGAGE LENDING
Authority G.S. 53-258(a)(c); 53-259; 53-271(a).
PROPOSED RULES
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04 NCAC 03K .0203 CURRENT AUTHORIZED LENDER INFORMATION
(a) An A NC SAFE Act authorized lender shall notify the Commissioner within 30 days of the effective date of any material changes to the information on file with the Commissioner. Notification shall be made on the lender's letterhead.
(b) Notification to the Commissioner of all material changes shall be made on the authorized lender's letterhead and filed pursuant to Rule .0101(b) of this Subchapter.
(c)(b) For the purposes of this Rule, the term "material" shall mean means any information which that would be likely to influence the granting of authorization to engage in reverse mortgage lending. The term "material" shall also include but not be limited to information concerning a changes change in the address of the authorized lenders, directors, corporate officers, partners, or the business structure. It shall also include changes in the address of the authorized lender's main or branch offices and any names under which the applicant operates. lender's reverse mortgage branch locations or the cessation of reverse mortgage lending activities in this state.
Authority G.S. 53-258(b),(d); 53-259; 53-271.
04 NCAC 03K .0204 ANNUAL REGISTRATION FEE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03K .0205 CERTIFICATE OF AUTHORIZATION
Authority G.S. 53-122(3); 53-258(b)(d); 53-259; 53-271(a).
04 NCAC 03K .0206 NONTRANSFERABILITY OF CERTIFICATE OF AUTHORIZATION
(a) A Certificate of Authorization shall be neither transferrable nor assignable.
(b) The circumstances under which the Commissioner shall deem a change in the authorized lender's organizational structure to constitute a transfer or assignment of the Certificate of Authorization shall include, but not be limited to, the following:
(1) If the authorized lender is a corporation:
(A) A change in ownership of 50% or more of the authorized lender's stock;
(B) The conversion of the corporation into a general or limited partnership or sole proprietorship.
(2) If the authorized lender is a general or limited partnership:
(A) A change in one of the authorized lender's general partners;
(B) The conversion of the general partnership into a limited partnership, corporation or sole proprietorship;
(C) The conversion of the limited partnership into a general partnership, corporation or sole proprietorship.
(3) If the authorized lender is a sole proprietor:
(A) The conversion of the sole proprietorship into a general or limited partnership or corporation;
(B) The sale of all of the assets of the authorized lender's business to another person.
(c) Upon a change in organization as set forth in Paragraph (b) of this Rule, the authorized lender's registration shall become void and the authorized lender shall surrender its Certificate of Authorization to the Commissioner within 30 days of such change. If the entity which results from the change in the authorized lender's organizational structure would like to engage in business as a reverse mortgage lender in this State, it shall apply for authorization pursuant to Rule .0201 of this Section.
Authority G.S. 53-258(d); 53-259; 53-271(a).
SECTION .0300 - REQUIREMENTS FOR AUTHORIZATION
04 NCAC 03K .0301 MINIMUM NET WORTH REQUIREMENT FOR AUTHORIZED LENDER OR LENDERS
Authority G.S. 53-258(b); 53-259; 53-271(a).
04 NCAC 03K .0302 SURETY BONDS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0400 - OPERATIONS, NOTIFICATIONS, AND REPORTING
04 NCAC 03K .0401 CERTIFIED FINANCIAL STATEMENTS
Authority G.S. 53-259; 53-271(a).
04 NCAC 03K .0402 RECORD AND BOOKKEEPING REQUIREMENTS
(a) All NC SAFE Act authorized lenders shall maintain their books and records relating to the making of reverse mortgage loans for a period of three years after payment of the debt in a manner permitting inspection by the Commissioner.
(b) All financial records required by Paragraph (a) of this Rule shall be prepared in accordance with generally accepted accounting principles.
(c)(b) An NC SAFE Act authorized lender shall notify the Commissioner of any change in the location of its books and records.
(d) In the case of an out-of-state lender, the lender shall designate the Commissioner as agent for service of process in connection with any reverse mortgage loan transaction.
Authority G.S. 53-259; 53-270; 53-271(a).
04 NCAC 03K .0403 EXAMINATIONS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03K .0404 WITHDRAWAL/TERMINATION OF AUTHORIZATION AS REVERSE MTG. LENDER (READOPTION WITHOUT SUBSTANTIVE CHANGES)
PROPOSED RULES
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04 NCAC 03K .0405 IMPAIRMENT OF MINIMUM NET WORTH, AND SURETY BOND (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0500 - DISCLOSURE REQUIREMENTS
04 NCAC 03K .0501 REVERSE MORTGAGE LENDER APPLICATION DISCLOSURE
04 NCAC 03K .0502 PERMITTED FEES
Authority G.S. 53-259; 53-264; 53-265(a); 53-270; 53-271(a).
SECTION - .0600 COUNSELING
04 NCAC 03K .0601 COUNSELING
Authority G.S. 53-259; 53-260; 53-264; 53-271(a).
SECTION .0700 - PROHIBITED ACTS AND PRACTICES; ENFORCEMENT ACTIONS
04 NCAC 03K .0701 PROHIBITED ACTS
Authority G.S. 53-259; 53-270; 53-271(a).
04 NCAC 03K .0702 ENFORCEMENT ACTIONS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03K .0703 HEARINGS
Authority G.S. 53-259; 53-270; 53-271; 53-272.
SUBCHAPTER 03L - CHECK-CASHING BUSINESSES
SECTION .0100 – ADMINISTRATIVE
04 NCAC 03L .0101 DEFINITIONS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0102 FILINGS
Any Licensees may obtain from the agency's website, located at https://www.nccob.gov, information concerning application applications for a license, or any report reports, application applications for annual renewal, amendment amendments to application, renewal notice notices, or other document documents which is that are required by law or rule to be filed with the Commissioner shall be addressed as follows: Commissioner.
Office of the Commissioner of Banks
4309 Mail Service Center
Raleigh, North Carolina 27699-4309
or, if not mailed, then delivered to:
Office of the Commissioner of Banks
316 West Edenton Street
Raleigh, North Carolina 27603.
Authority G.S. 53-288; 53C-2-1; 53C-2-2.
SECTION .0200 - APPLICATION
04 NCAC 03L .0201 APPLICATION FOR LICENSE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0202 FEES
Authority G.S. 53-278; 53-288, 53C-2-1; 53C-2-2.
SECTION .0300 - LICENSING
04 NCAC 03L .0301 ISSUANCE
Authority G.S. 53-278; 53-279; 53-288, 53C-2-1; 53C-2-2.
04 NCAC 03L .0302 NONTRANSFERABILITY OF LICENSE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0303 ANNUAL RENEWAL OF LICENSE
On or before September 1 of each year, a licensee may renew its license by filing with the Commissioner an application for license renewal on a form available from the Commissioner, along with payment of renewal fees required under G.S. 53-278(d). Absent such renewal each year, the license shall expire and become void on September 30 without further action by the Commissioner. A check-cashing license shall be valid from the date of issuance and, unless renewed annually shall expire on September 30 of each year without further action by the Commissioner. The renewal period shall begin on July 1 of each year. Licensees may file renewal applications and pay applicable renewal fees on the agency website located at www.nccob.gov. Any new license issued on or after July 1 of each year shall not be required to be renewed until the subsequent renewal period.
Authority G.S. 53-276; 53-278; 53-288; 53C-2-1; 53C-2-2.
SECTION .0400 - OPERATIONS
04 NCAC 03L .0401 POSTING OF LICENSE OR BRANCH CERTIFICATE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0402 SURRENDER OF LICENSE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0403 POSTING OF FEES (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0500 - BOOKS AND RECORDS: EXAMINATIONS
04 NCAC 03L .0501 BOOKS AND RECORDS
(a) Each check-cashing business licensed by the Commissioner of Banks shall record all transactions of receipts and disbursements pertaining to checks cashed. All entries shall be made as of reflect the exact date the transactions occur. A licensee shall maintain books and accounting records which shall include, at a minimum: PROPOSED RULES
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(1) a daily transaction journal, or equivalent record, which shall show that shows the customer's name for each transaction;
(2) the written receipt required by G.S. 53-282(b); and
(3) the bank statements of the licensee. If the statements are not maintained on the premises of the licensee, they must shall be made available upon request by the Office of the Commissioner of Banks.
(b) These records shall be maintained at each business location and shall be made available by the close of business on the next business day upon request to the Commissioner of Banks or his designee for inspection or examination for a period of not less than three years from the date of final entry.
(c) No books or records of the licensee required hereunder shall show any account or reflect any transaction other than those related to the check-cashing business within the provisions of the Check-Cashing Businesses Act.
(d) Books and records retained by a licensee which arise from or relate to a prior accounting period may be maintained in the form of magnetic tape, magnetic disk, or other form of computer, electronic or microfilm media available for examination on the basis of computer printed reproduction, video display, or other medium so long as any books and records kept in such manner are convertible into legible, tangible documents within 72 hours of request of the Commissioner. The time for such conversion may be extended if the Commissioner determines that the burden to the licensee of such conversion exceeds the benefit to the Commissioner and the public.
Authority G.S. 53C-2-1; 53C-2-2; 53-282; 53-288.
04 NCAC 03L .0502 EXAMINATIONS; INVESTIGATIONS EXAMINATIONS
(a) The Commissioner of Banks may make such examination of the books, records, business locations, and operations of any licensee and at such times as may seem necessary or desirable to the Commissioner or his designee. Such examinations Examinations may be with or without advance notice to the licensee.
(b) In addition to examinations authorized by G.S. 53-278(b) or G.S. 53-282(c), the Commissioner may request from licensees hereunder such reports from the licensee and at such times as to him shall be necessary or advisable for the purpose of determining the general results of operations under G.S. 53, pursuant to Article 22. 22 of Chapter 53. The Commissioner or his designee may also examine or investigate a licensee when the Commissioner has reasonable grounds to believe that a registrant has violated any law or regulation of this State, the Federal government or any agency thereof.
(c) If a licensee fails to pay the costs of examination as authorized by G.S. 53-282(c) and at a rate pursuant to 04 NCAC 03C .1601 or investigation to the Commissioner within a reasonable time as required by 60-days of billing, G.S. 53-282(c), then the Commissioner may proceed to remedies contemplated by G.S. 53-284 et seq. 53-284.
Authority G.S. 53-278; 53-282; 53-284; 53-288; 53C-2-1; 53C-2-2.
SECTION .0600 - REPORTING AND NOTIFICATION REQUIREMENTS
04 NCAC 03L .0601 AMENDMENTS TO INFORMATION ON FILE WITH THE COMMISSIONER (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0602 EXPANSION OR RELOCATION (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03L .0603 IMPAIRMENT OF FINANCIAL REQUIREMENTS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SUBCHAPTER 03M – MORTGAGE LENDING
SECTION .0100 – GENERAL
04 NCAC 03M .0101 DEFINITIONS
As used in this Subchapter, unless a contrary definition is provided or required by the context:
(1) Terms used in this Subchapter which are defined in the Act have the same meaning as set forth in the Act.
(2) When any term in this Subchapter is defined by reference to or incorporation of a regulation or rule of a federal or state agency, board, commission or other regulatory body other than the Commissioner, the reference shall be deemed to be to the regulation or rule as it is in effect and interpreted in its most current version.
(3) "Act" means Article 19B of Chapter 53 of the North Carolina General Statutes, commonly known as the "North Carolina Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act," or "NC SAFE Act."
(4) "Advertisement" means material used or intended to be used to induce the public to apply for a mortgage loan. The term includes any printed or published material, or descriptive literature concerning a mortgage loan to be solicited, processed, negotiated or funded by a licensee or exempt entity whether disseminated by direct mail, newspaper, magazine, radio or television broadcast, electronic mail or other electronic means, or billboard or similar display. The term does not include any disclosures, program descriptions, or other materials prepared or authorized by any state or federal government agency, nor does the term include any material or communication which has been excluded for purposes of any regulation of the Board of Governors of the Federal Reserve System regulating consumer credit disclosures. PROPOSED RULES
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(5) "Call Report" means a report of condition on a company and its operations which includes financial and loan activity information.
(6) "Commission" means the North Carolina Banking Commission. For purposes of complying with these Rules by credit unions, Banking Commission means the North Carolina Credit Union Commission.
(7) "Controlling person" means a person who, with regard to a licensee:
(a) has the ability to exercise "control", as the term is defined in G.S. 53-244.030(7), or
(b) otherwise has the power to direct the management and policy of the licensee.
(8) "Instructor" means an individual who is employed by a provider and who is responsible for teaching a program.
(9)(6) "License" means a mortgage lender, mortgage servicer, mortgage broker, exclusive mortgage broker, or mortgage loan originator license issued pursuant to the Act and this Subchapter.
(10)(7) "Material" when used in connection with "Material facts" means facts or information provided to the Commissioner by a licensee or applicant, means facts or information regarding the person's identity, contact information, or business operations that a reasonable person knows, or should know, would be likely to influence a decision to grant, suspend, condition, limit, renew, or revoke a license or to take other disciplinary action against a licensee or exempt person, including:
(a) notice of a pending administrative action involving the licensee or applicant for licensure by any state or federal authority to which the licensee is subject;
(b) the issuance of an administrative order against the licensee or applicant for licensure by any state or federal authority to which the licensee is subject;
(c) notice of a pending criminal charge against the licensee or applicant for actions related to financial services or moral turpitude;
(d) the entry of a conviction or one of the following on a criminal charge against the licensee or applicant for licensure for a felony or other criminal charge for actions related to financial services or moral turpitude:
(i) a plea of guilty;
(ii) a plea of no contest or nolo contendere;
(iii) a prayer for judgment continued;
(iv) a deferred prosecution agreement;
(v) an adjudication or verdict of guilty by a domestic, foreign, military, or other court of competent jurisdiction;
(vi) the equivalent of any of the foregoing in a domestic, foreign, military, or other court of competent jurisdiction; or
(vii) any other classification that is deemed a conviction pursuant to the applicable law in the jurisdiction where the criminal charge was brought.
(e) a change in status to the licensee's bond, including the reduction or cancellation of such bond; and bond;
(f) the licensee's primary phone number, mailing address, and principal office address;
(g) any assumed name, trade name, or d/b/a (doing business as) under which the licensee may be operating;
(h) the address at which files and documents retained pursuant to the Act or the rules in this Subchapter are stored;
(i) the identity of the licensee's bonding company or carrier, and the bond number;
(j) for corporate licensees, the identity of any affiliated mortgage lender, mortgage broker, mortgage servicer, or provider of settlement services; and
(k) for corporate license, the identity of the licensee's owners, officers, directors, qualifying individual, branch manager(s), or control persons.
(11) "Material" when used in connection with facts or information provided to the Commissioner, by a licensee or applicant for licensure, also means facts and information regarding the licensee's identity and contact information, including:
(a) the licensee's primary phone number, mailing address, and principal office address;
(b) any assumed name, trade name, or d/b/a (doing business as) under which the licensee may be operating;
(c) the address at which files or documents retained pursuant to the Act or the rules in this Subchapter are stored;
(d) the identity of the licensee's bonding company or carrier, and bond number; PROPOSED RULES
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(e) for corporate licensees, the identity of any affiliated mortgage lender, mortgage broker, mortgage servicer, or provider of settlement services; and
(f) for corporate licensees, the identity of the licensee's owners, officers, directors, qualifying individual, branch manager(s), or control persons.
(12)(8) "Material" when used in connection with facts or information provided to a borrower, "Material borrower information" means facts or information that a reasonable person knows, or should know, would reasonably be expected to influence a borrower's decision with regard to one or more loans, including:
(a) the total compensation the mortgage broker expects to receive from all sources in connection with each loan option presented to the borrower;
(b) the terms of each loan option presented to the borrower;
(c) the anticipated monthly payment (including property tax and insurance payments) for each loan option presented to the borrower;
(d) if the loan contains a variable rate feature or other terms which may result in a change to the borrower's monthly payments over the life of the loan, the circumstances upon which the terms or payments will change and the impact of the changes upon the borrower's required monthly payments; and
(e) any affiliate relationships that may exist between the licensee and any party or parties to the sale or financing of the subject property, or any provider of settlement services.
(13)(9) "Material" when used in connection with the word "change" or "changes," "Material change" means a change to any material facts or information. facts.
(14)(10) "Nationwide Mortgage Licensing System and Registry" or "NMLS&R" has the same meaning as in the NC SAFE Act.
(15)(11) "Prelicensing Education" means a classroom or classroom equivalent education program required by G.S. 53-244.070.
(16) "Program" means a prelicensing program.
(17) "Provider" means any person who provides a program.
(18) "Qualified Written Test" means the mortgage prelicensing qualified written test required by G.S. 53-244.080.
(12) "Registration" means the approval granted to a mortgage origination support registrant to engage exclusively in the processing or underwriting of residential mortgage loans but not the mortgage business.
(19)(13) "Settlement Services" has the same meaning as defined in federal Real Estate Procedures Act (RESPA) 12 U.S.C. Sec. 2601 et. seq. Regulation X, 24 C.F.R. Part 3500 et. seq, which is incorporated by reference and includes subsequent amendments. A copy of the regulation may be obtained from the website free of charge U. S. Government Publications Office website at https://www.gpo.gov/fdsys/granule/CFR-2000-title24-vol5/CFR-2000-title24-vol5-part3500/content-detail.html.
(20) "Testing Provider" means an organization approved by the NMLS&R to administer the qualified written test.
Authority G.S. 53-244.118.
04 NCAC 03M .0102 NOTICES (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0200 - LICENSING
04 NCAC 03M .0201 APPLICATION
(a) All fees required by G.S. 53-244.090 or 53-244.101 shall be submitted with an application for licensure or renewal of license as a mortgage lender, mortgage broker, mortgage servicer, exclusive mortgage broker or mortgage loan originator. The fees are nonrefundable.
(b)(a) Each type of application required by the rules in this Subchapter or the Act shall be filed through the NMLS&R and shall be verified by the oath or affirmation of the applicant or a principal officer thereof. officer.
(c)(b) In addition to the documents and information required by the rules in this Subchapter, the Commissioner or his or her staff may require additional information according to the Rules in order to enable the Commissioner to determine that the applicant meets or the licensee continues to meet the requirements of G.S. 53-244.040, 53-244.050, 53-244.060, 53-244.070, 53-244.080, 53-244.100, 53-244.101, 53-244.102, 53-244.103, 53-244.104, and 53-244.105. the Act.
(d)(c) Applications submitted without the required fees or which are missing material information facts, or any information requested under Paragraph (b) of this Rule shall be held in pending status for a period of 30 calendar days after written notice notification through the NMLS&R to the applicant specifying the nature of the deficiency. If any such the deficiency remains outstanding for more than 30 days, the application shall automatically be considered withdrawn without further action by the Commissioner, and the applicant shall submit a new application and pay all fees associated therewith. fees.
Authority G.S. 53-244.040, 53-244.050; 53-244.060; 53-244.070, 53-244.080, 53-244.100; 53-244.101; 53-244.102; 53-244.103; 53-244.104; 53-244.118.
PROPOSED RULES
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04 NCAC 03M .0202 NONTRANSFERABILITY (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0203 NAME CHANGES (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0204 EXPERIENCE (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0205 FINANCIAL RESPONSIBILITY
(a) In order for applicants to be deemed to have the financial responsibility such as to command the confidence of the community and to warrant belief that the business will be operated honestly and fairly under G.S. 53-244.60(4), the applicant shall:
(1) If a mortgage lender:
(A) provide an audited statement of financial condition that demonstrates a net worth of at least $100,000;
(B) provide evidence of warehouse line of credit of $1,000,000 or other evidence of funding capacity to conduct mortgage originations;
(C) demonstrate a history of satisfying debt obligations, as indicated by a trade or personal credit report(s) that does not contain evidence of outstanding judgments or tax liens against applicant, its officers or directors, by creditors; and
(D) provide an explanation of the corporate or ownership structure of the applicant, including information regarding any required distributions to investors or owners.
(2) If a mortgage broker:
(A) provide a certified statement of financial condition that demonstrates a net worth of at least $25,000;
(B) demonstrate a history of satisfying debt obligations, as indicated by a trade or personal credit report(s) that does not contain evidence of outstanding judgments or tax liens against applicant, its officers or directors, by creditors; and
(C) provide evidence (in the form of a copy of a bank statement or other verifiable document) that the broker owns and holds on a continual basis cash or other liquid assets in a demand deposit account under the firm's name of at least ten thousand dollars ($10,000.00) in an FDIC-insured financial institution.
(3) If a mortgage loan originator:
(A) have a credit score from any of the three major credit rating agencies (Experian, TransUnion or Equifax) of 600 or greater;
(B) demonstrate a history of satisfying debt obligations, as indicated by an absence of outstanding tax liens, other government liens or filings, outstanding judgments, except judgments resulting solely from medical expenses, by creditors; and
(C) not have any foreclosures or accounts delinquent in excess of 90-days within the past three years.
(4) If a mortgage servicer:
(A) provide an audited statement of financial condition that demonstrates a net worth of at least $100,000.00;
(B) demonstrate a history of satisfying debt obligations, as indicated by a trade or personal credit report(s) that does not contain evidence of outstanding judgments or tax liens against applicant, its officers or directors, by creditors; and
(C) provide an explanation of the corporate or ownership structure of the applicant, including information regarding any required distributions to investors or owners.
(b) The Commissioner shall not waive any requirement listed in Paragraph (a) of this Rule unless he believes the predominant weight of the evidence supports a determination that the applicant has the financial responsibility necessary to command the confidence of the community and to warrant belief that the business will be operated honestly and fairly.
(c) Financial Responsibility is an ongoing requirement and upon issuance of a license, a licensee must continue to meet the requirements of Paragraph (a) of this Rule. G.S. 53-244.060(4).
Authority G.S. 53-92; 53-104; 53-244.060(4); 53-244.104; 53-244.118.
04 NCAC 03M .0206 SURETY BOND (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0400 - REPORTING AND NOTIFICATION REQUIREMENTS
04 NCAC 03M .0401 REPORTING REQUIREMENTS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0402 AMENDMENTS TO INFORMATION ON FILE WITH THE COMMISSIONER (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0403 TERMINATION OF OPERATIONS OR EMPLOYMENT
(a) A licensee or registrant shall notify the Commissioner in writing of its decision to cease operations as a mortgage lender, mortgage servicer, or mortgage broker in this State, and the anticipated effective date of the cessation of operations, at least 15 days before the cessation. PROPOSED RULES
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(b) A mortgage lender, mortgage servicer, or mortgage broker that has not originated or serviced a mortgage loan within a 12 month 12-month period is considered to have ceased operations. A mortgage origination support registrant that has not processed or underwritten a mortgage loan within a 12-month period is considered to have ceased operations. Cessation of operations is grounds for summary suspension pursuant to G.S. 53-244.114(b); provided, however, 53-244.114(b). However, that suspension for cessation of operations shall not extend or revive any license that would otherwise terminate on December 31st based on the licensee's person's failure to renew its license or registration or the Commissioner's refusal to renew the licensee's license. license or registration.
(c) A mortgage broker, mortgage lender, mortgage servicer, or mortgage origination support registrant shall not sponsor a mortgage loan originator who is not an employee of the person and shall notify the Commissioner within 30 days of the termination of the individual mortgage loan originator's employment and sponsorship.
Authority G.S. 53-100.53; 53-244:114(b); 53-244.118.
SECTION .0500 - RECORD AND BOOKKEEPING REQUIREMENTS
04 NCAC 03M .0501 RECORDS TO BE MAINTAINED (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0502 FORM AND LOCATION OF RECORDS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0600 - ORIGINATION PRACTICES
04 NCAC 03M .0602 SELLER DISCOUNTS FOR USE OF AFFILIATED MORTGAGE LENDER OR BROKER (READOPTION WITHOUT SUBSTANTIVE CHANGES)
SECTION .0700 - SERVICING
04 NCAC 03M .0701 TRANSFER OF SERVICING RIGHTS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0702 REQUIREMENTS FOR MORTGAGE SERVICERS TO COMMUNICATE EFFECTIVELY WITH BORROWERS REGARDING LOSS (READOPTION WITHOUT SUBSTANTIVE CHANGES)
04 NCAC 03M .0703 CESSATION OF FORECLOSURE ACTIVITY DURING PENDENCY OF LOSS MITIGATION REQUEST (READOPTION WITHOUT SUBSTANTIVE CHANGES)
TITLE 14B – DEPARTMENT OF PUBLIC SAFETY
Notice is hereby given in accordance with G.S. 150B-21.2 that the Alcoholic Beverage Control Commission intends to amend the rules cited as 14B NCAC 15B .0217, .0220; 15C .0302-.0304, .0307, .0308, and .0403.
Link to agency website pursuant to G.S. 150B-19.1(c): www.abc.nc.gov
Proposed Effective Date: August 1, 2018
Public Hearing:
Date: June 13, 2018
Time: 10:00 a.m.
Location: ABC Commission Hearing Room, 400 East Tryon Road, Raleigh, NC 27610
Reason for Proposed Action: To adopt permanent rules to replace the temporary rules that became effective November 28, 2017 regulating the sale of malt beverages and wine in containers filled by retail establishments holding certain ABC permits as a result of amendments to the law made by the General Assembly in S.L. 2017-87, Section 5.
Comments may be submitted to: Walker Reagan, 400 East Tryon Road, Raleigh, NC 27610; phone (919) 779-8367; fax (919) 661-6165; email walker.reagan@abc.nc.gov
Comment period ends: June 13, 2018 at 10:00 a.m.
Procedure for Subjecting a Proposed Rule to Legislative Review: If an objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission after the adoption of the Rule. If the Rules Review Commission receives written and signed objections after the adoption of the Rule in accordance with G.S. 150B-21.3(b2) from 10 or more persons clearly requesting review by the legislature and the Rules Review Commission approves the rule, the rule will become effective as provided in G.S. 150B-21.3(b1). The Commission will receive written objections until 5:00 p.m. on the day following the day the Commission approves the rule. The Commission will receive those objections by mail, delivery service, hand delivery, or facsimile transmission. If you have any further questions concerning the submission of objections to the Commission, please call a Commission staff attorney at 919-431-3000.
Fiscal impact (check all that apply). State funds affected Environmental permitting of DOT affected
Analysis submitted to Board of Transportation Local funds affected Substantial economic impact (≥$1,000,000) Approved by OSBM No fiscal note required by G.S. 150B-21.4
CHAPTER 15 - ALCOHOLIC BEVERAGE CONTROL COMMISSION
SUBCHAPTER 15B - RETAIL BEER: WINE: MIXED PROPOSED RULES
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BEVERAGES: BROWNBAGGING: ADVERTISING: SPECIAL PERMITS
SECTION .0200 - GENERAL RULES AFFECTING RETAILERS AND BROWNBAGGING PERMITTEES
14B NCAC 15B .0217 FILL OR REFILL ORIGINAL CONTAINERS
No permittee except a bottler or manufacturer shall fill or refill in whole or in part any original container of alcoholic beverages with the same or any other kind of alcoholic beverage. beverage, except a bottler, manufacturer, or permittee authorized pursuant to G.S. 18B-1001(1), (2), (3), (4), or (16).
Authority G.S. 18B-206(a); 18B-207; 18B-1001.
14B NCAC 15B .0220 DISPENSING ALCOHOLIC BEVERAGES: PRODUCT IDENTIFICATION
(a) Malt Beverages, On-Premises. Malt beverages may be sold by persons holding on-premise permits in the original containers, by the glass, by the mug, by the pitcher pitcher, or a single-service and single-use container as defined by FDA Food Code 2009, 1-201.10(B). The brand name of draught malt beverages dispensed in retail outlets shall be shown on the knobs of draught faucets. Covers for these faucets bearing a brand name may be used if the brand name appearing on the cover corresponds with the brand name on the knob of the faucets that are to be used for that brand.
(b) Malt Beverages, Off-Premises. Malt beverages may be sold by persons holding a retail an off-premise permit only in the unopened original container that was filled by the product manufacturer. manufacturer, except as permitted pursuant to G.S. 18B-1001.
(c) Wine, On-Premises. A person holding an on-premises wine permit may sell wine in the unopened original container, by the carafe, by the glass glass, or a single-service and single-use container. A person holding an on-premises wine permit may sell wine mixed with non-alcoholic beverages by the carafe, by the glass glass, or a single-service and single-use container. Wine served in carafes, by the glass glass, or single-service and single-use containers may be dispensed under pressure from nitrogen from sealed bulk containers provided the containers and dispensing systems have been approved by the Commission and the Commission for Public Health. The vintner, brand brand, and type of wine dispensed by the carafe, glass glass, or single-service and single-use container, except for the house wine, shall appear on the wine list. Where the wine is dispensed from bulk containers, the vintner, brand brand, and type shall be shown on the knobs of draught faucets.
(d) Use of Siphons. The use of siphons or pressurized dispensers is allowed if the malt beverage or wine contents are dispensed directly from the original containers.
(e) Mixed Beverages. A person holding a mixed beverages permit may sell mixed beverages in a glass, in a pitcher pitcher, or in a single-service and single-use container.
(f) Multi-Use Containers. All multi-use containers used by permittees to serve any alcoholic beverages shall meet the requirements as referenced by FDA Food Code 2009, 3-304.11(a). Multi-use containers include glassware, mugs, pitchers pitchers, and carafes.
(g) Incorporation by Reference. The 2009 FDA Food Code, as established by the U.S. Department of Health and Human Services, Food and Drug Administration, is hereby incorporated by reference, excluding subsequent amendments and editions, and may be accessed at no cost at https://www.fda.gov/food/guidanceregulation/retailfoodprotection/foodcode/ucm2019396.htm.
Authority G.S. 18B-100; 18B-206; 18B-207; 18B-1001; 130A-248(a). FDA Food Code 2009, 1-201.10(B), 3-304.11(a).
SUBCHAPTER 15C - INDUSTRY MEMBERS: RETAIL/INDUSTRY MEMBER RELATIONSHIPS: SHIP CHANDLERS: AIR CARRIERS: FUEL ALCOHOL
SECTION .0300 - PACKAGING AND LABELING OF MALT BEVERAGES AND WINE
14B NCAC 15C .0302 LABELS TO BE SUBMITTED TO COMMISSION
(a) All labels for malt beverage and wine products shall be submitted in duplicate to the Commission on an "Application for Label Approval Form." Form," as required by Rule .0201 or .0202 of this Subchapter.
(b) Each person requesting label approval shall furnish, in the application for label approval, the names and addresses of the manufacturer, bottler, and importer of the product.
(c) Notwithstanding Paragraphs (a) and (b) of this Rule, holders of retail permits pursuant to G.S. 18B-1001(1), (2), (3), (4), or (16) that fill or refill growlers on demand are not shall not be required to submit the labels required by Rule Rules .0303(b) or (c) or .0304(d) or (e) of this Section.
Authority G.S. 18B-100; 18B-206(a); 18B-207; 18B-1001(1); 18B-1001(2); 18B-1001(16); 18B-1001.
14B NCAC 15C .0303 LABEL CONTENTS: MALT BEVERAGES
(a) Containers that are prefilled by the manufacturer shall be affixed with malt beverage labels that shall contain the following information in a legible form:
(1) brand name of product;
(2) name and address of brewer or bottler;
(3) class of product (e.g., beer, ale, porter, lager, bock, stout, or other brewed or fermented beverage);
(4) net contents;
(5) if the malt beverage is fortified with any stimulants, the amount of each (milligrams) per container; and
(6) the alcoholic beverage health warning statement as required by the Federal Alcohol Administration Act, 27 C.F.R. Sections 16.20 through 16.22.
(b) Growlers that are filled or refilled on demand with malt beverages pursuant to Rule .0308 of this Subchapter Section shall be affixed with a label or a tag that shall contain the following information in type not smaller than 3 millimeters in height and not more than 12 characters per inch: PROPOSED RULES
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(1) brand name of the product dispensed;
(2) name of brewer or bottler;
(3) class of product (e.g., beer, ale, porter, lager, bock, stout, or other brewed or fermented beverage);
(4) net contents;
(5) if the malt beverage is fortified with any stimulants from the original manufacturer, the amount of each (milligrams) per container;
(6) name and address of business that filled or refilled the growler;
(7) date of fill or refill;
(8) if the malt beverage is more than six percent alcohol by volume, the amount of alcohol by volume pursuant to G.S. 18B-101(9); and
(9) the following statement: "This product may be unfiltered and unpasteurized. Keep refrigerated at all times."
(c) Growlers that are filled or refilled on demand pursuant to Rule .0308 of this Section shall be affixed with the alcoholic beverage health warning statement as required by the Federal Alcohol Administration Act, 27 C.F.R. Sections 16.20 through 16.22. The provisions of 27 C.F.R. Sections 16.20 through 16.22 referenced in this Section are hereby incorporated by reference, including subsequent amendments and editions, and may be accessed for free at https://www.gpo.gov.
Authority G.S. 18B-100; 18B-101(9); 18B-206(a); 18B-207; 18B-1001(1); 18B-1001(2); 18B-1001(16); 27 C.F.R. 16.20 through 16.22; 18B-1001.
14B NCAC 15C .0304 LABEL CONTENTS: WINE
(a) All wine labels shall contain the following information, in a legible form: form legible to the consumer:
(1) brand name of product;
(2) class and type, in conformity with Section .0400 of this Subchapter;
(3) name and address of manufacturer, or bottler, except as otherwise provided in these Rules;
(4) on blends consisting of foreign and domestic wine, if any reference is made to the presence of foreign wine, the exact percentage by volume the foreign wine; and
(5) net contents (unless blown or otherwise permanently inscribed in the container).
(b) Exception for Retailer's Private Brand. In the case of wine bottles packaged for a retailer or other person under his the person's private brand, the name and address of the bottler need not be stated on the brand label but may be stated on another label affixed to the container, if the name and address of the person for whom the wine was bottled or packed appears on the label. The net contents shall be stated on the brand label or on a separate label affixed in immediate proximity thereto on the same side of the container in readily legible form, unless blown or otherwise permanently inscribed in the container.
(c) Imported Wines. The name and address of the importer of a foreign wine need not be stated on the brand label if it is stated upon another label affixed to the container.
(d) Growlers that are filled or refilled on demand with unfortified wine pursuant to Rule .0308 of this Section shall be affixed with a label or a tag containing the following information in type not smaller than 3 millimeters in height and not more than 12 characters per inch:
(1) brand name of the product dispensed;
(2) name of manufacturer or bottler;
(3) class and type of product;
(4) net contents;
(5) name and address of business that filled or refilled the growler;
(6) date of fill or refill; and
(7) the following statement: "This product may be unfiltered and unpasteurized. Keep refrigerated at all times."
(e) Growlers that are filled or refilled on demand pursuant to Rule .0308 of this Section shall be affixed with the alcoholic beverage health warning statement as required by the Federal Alcohol Administration Act, 27 C.F.R. Sections 16.20 through 16.22.
Authority G.S. 18B-206(a); 18A-207; 18B-1001.
14B NCAC 15C .0307 GROWLERS
(a) As used in this Rule, Section, a "growler" is a refillable rigid glass, ceramic, plastic, aluminum, or stainless steel container with a flip-top or screw-on lid closure or cap with a secure sealing that is no larger than 2 liters (0.5283 gallons) into which a malt beverage or unfortified wine is prefilled, filled, or refilled for off-premises consumption.
(b) Malt beverages may be sold in growlers as follows:
(1) Holders of only a brewery permit may sell, deliver, and ship growlers prefilled with the brewery's malt beverage for off-premises consumption provided a label is affixed to the growler that accurately provides the information as required by Rules .0303(a) and .0305 of this Section.
(c)(2) Holders of retail permits pursuant to G.S. 18B-1001(1), (2), or (16) who do not hold a brewery permit shall not prefill growlers with malt beverage.
(d)(3) Holders of a brewery permit who also have retail permits pursuant to G.S. 18B-1001(1) may fill or refill growlers on demand with the brewery's malt beverage for off-premises consumption, provided the label as required by Rules .0303(b) and (c) and .0305 of this Section is affixed to the growler.
(e)(4) Holders of retail permits pursuant to G.S. 18B-1001(1), (2), or (16) may fill or refill growlers on demand with draft malt beverage for off-premises consumption, provided the label as required by Rules .0303(b) and (c) and .0305 of this Section is affixed to the growler.
(c) Unfortified wine may be sold in growlers as follows:
(1) Holders of only an unfortified winery permit may sell, deliver, and ship growlers prefilled with the winery's unfortified wine for off-premises consumption provided a label is PROPOSED RULES
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affixed to the growler that provides the information as required by Rules .0304(a), (b) and (c), and Rule .0305 of this Section.
(2) Holders of retail permits pursuant to G.S. 18B-1001(3), (4), or (16) who do not hold an unfortified winery permit shall not prefill growlers with unfortified wine.
(3) Holders of an unfortified winery permit who also have retail permits pursuant to G.S. 18B-1001(3) may fill or refill growlers on demand with the winery's unfortified wine for off-premises consumption, provided the label as required by Rules .0304(d) and (e) and .0305 of this Section is affixed to the growler.
(4) Holders of retail permits pursuant to G.S. 18B-1001(3), (4), or (16) may fill or refill growlers on demand with unfortified wine for off-premises consumption, provided the label as required by Rules .0304(d) and (e) and .0305 of this Section is affixed to the growler.
(f)(d) Holders of retail permits pursuant to G.S. 18B-1001(1), (2), (3), (4), or (16) shall affix a label as required by Rules .0303(b) and (c), Rules .0304(d) and (e), and Rule .0305 of this Section to the growler when filling or refilling a growler.
(g)(e) Holders of retail permits pursuant to G.S. 18B-1001(1), (2), (3), (4), or (16), may, in their discretion, refuse to fill or refill a growler, except in matters of discrimination pursuant to G.S. 18B-305(c).
Authority G.S. 18B-100; 18B-206(a); 18B-207; 18B-305; 18B-1001(1); 18B-1001(2); 18B-1001(16); 18B-1001.
14B NCAC 15C .0308 GROWLERS: CLEANING, SANITIZING, FILLING AND SEALING
(a) Filling Except as permitted pursuant to Rules .0307(b) and (c) of this Section, filling and refilling growlers shall only occur on demand by a customer. consumer.
(b) Growlers shall only be filled or refilled by a permittee or the permittee's employee.
(c) Prior to filling or refilling a growler, the growler and its cap shall be cleaned and sanitized by the permittee or the permittee's employee using one of the following methods:
(1) Manual washing in a three compartment sink:
(A) Prior prior to starting, clean sinks and work area to remove any chemicals, oils, or grease from other cleaning activities;
(B) Empty empty residual liquid from the growler to a drain. Growlers shall not be emptied into the cleaning water;
(C) Clean clean the growler and cap in water and detergent. Water temperature shall be at a minimum 110ºF or the temperature specified on the cleaning agent manufacturer's label instructions. Detergent shall not be fat or oil based;
(D) Remove remove any residues on the interior and exterior of the growler and cap;
(E) Rinse rinse the growler and cap in the middle compartment with water. Rinsing may be from the spigot with a spray arm, from a spigot, or from the tub as long as the water for rinsing shall is not be stagnant but shall be and continually refreshed;
(F) Sanitize sanitize the growler and cap in the third compartment. Chemical sanitizer shall be used in accordance with the EPA-registered label use instructions and shall meet the minimum water temperature requirements of that chemical; and
(G) A a test kit or other device that accurately measures the concentration in mg/L of chemical sanitizing solutions shall be provided and be readily accessible for use; or
(2) Mechanical washing and sanitizing machine:
(A) Mechanical mechanical washing and sanitizing machines shall be provided with an easily accessible and readable data plate affixed to the machine by the manufacturer and shall be used according to the machine's design and operation specifications;
(B) Mechanical mechanical washing and sanitizing machines shall be equipped with chemical or hot water sanitization;
(C) Concentration concentration of the sanitizing solution or the water temperature shall be accurately determined by using a test kit or other device; and
(D) The the machine shall be regularly serviced based upon the manufacturer's or installer's guidelines.
(d) Notwithstanding Paragraph (c) of this Rule, a growler may be filled or refilled without cleaning and sanitizing the growler growler, as follows:
(1) Filling or refilling a growler with a tube as referenced by Paragraph (e) of this Rule:
(A) Food food grade sanitizer shall be used in accordance with the EPA-registered label use instructions;
(B) A a container of liquid food grade sanitizer shall be maintained for no more than 10 malt beverage taps that will be used for filling and refilling growlers;
(C) Each each container shall contain no fewer than five tubes that will be used only for filling and refilling growlers; PROPOSED RULES
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(D) The the growler is inspected visually for contamination;
(E) The growler is filled or refilled with a tube as described in Paragraph (e) of this Rule;
(F) After after each filling or refilling of a growler, the tube shall be immersed in the container with the liquid food grade sanitizer; and
(G)(F) A a different tube from the container shall be used for each fill or refill of a growler; or
(2) Filling a growler with a contamination-free process:
(A) The the growler shall be inspected visually for contamination; and
(B) Shall for growlers that can be refilled, the process shall be otherwise in compliance with the FDA Food Code 2009, Section 3-304.17(c). Section 3-304.17(C); and
(C) for growlers that are for single use, the process shall be otherwise in compliance with the FDA Food Code 2009, Sections 4-903.11 and 4-903.12.
(e) Growlers shall be filled or refilled from the bottom of the growler to the top with a tube that is attached to the malt beverage or unfortified wine faucet and extends to the bottom of the growler or with a commercial filling machine.
(f) When not in use, tubes to fill or refill growlers shall be immersed and stored in a container with liquid food grade sanitizer.
(g) After filling or refilling a growler, the growler shall be sealed with a closure or cap.
Authority G.S. 18B-100; 18B-206(a); 18B-207; 18B-1001(1); 18B-1001(2);18B-1001(16); FDA Food Code 2009, Section 3-304.17(c) and Section 4-204.13(a),(b) and (d); 18B-1001.
SECTION .0400 - STANDARDS OF IDENTITY FOR WINE: CONTAINERS
14B NCAC 15C .0403 CONTAINERS
(a) Unsealed Container Prohibited. The Except as permitted by Rule .0307 of this Subchapter, the sale of wine in any unsealed container or container, any container originally designed for a product other than wine wine, or in any container the design or shape of which would tend to mislead the consumer as to the nature of the contents is prohibited. All wine containers shall be made of glass or other nonmetallic materials except for bulk on-premises containers approved by the Commission.
(b) Distinguishing Mark Different from Retailer. The sale of wine in containers that have the blown, branded branded, or burned name or other distinguishing mark of any person engaged in business as a wine producer, importer, wholesaler wholesaler, or bottler or any other person different from the person whose name is required to appear on the brand label by Rule .0304 of this Subchapter is prohibited.
Authority G.S. 18B-206; 18B-207; 18B-1001.
TITLE 15A – DEPARTMENT OF ENVIRONMENTAL QUALITY
Notice is hereby given in accordance with G.S. 150B-21.2 and G.S. 150B-21.3A(c)(2)g. that the Wildlife Resources Commission intends to amend the rules cited as 15A NCAC 10F .0307, .0342, .0360, .0373, and .0375 and readopt with substantive changes the rules cited as 15A NCAC 10F .0320, .0353 and .0366.
Link to agency website pursuant to G.S. 150B-19.1(c): www.ncwildlife.org
Proposed Effective Date:
October 1, 2018 - 15A NCAC .0307, .0342, .0360, .0373, .0375, .0353 and .0366
September 1, 2018 - 15A NCAC 10F .0320
Public Hearing:
Date: May 2, 2018
Time: 10:00 a.m.
Location: WRC Headquarters, 1751 Varsity Drive, Raleigh, NC 27606
Reason for Proposed Action: All 10F Rules were reviewed as part of the 2016 Periodic Review process. Seven rules currently proposed for readoption or amendment are being updated to incorporate the following changes:
• Updating language and terms for consistency;
• Clarifying no-wake zone boundaries by including coordinates;
• Name changes;
• Removing the maintenance of markers;
• Removing the word "motorboat", as the statutory definition of "vessel" includes motorboats; and
• Including appropriate federal approval for placement of markers. Amendments to 15A NCAC 10F .0320 are proposed to mitigate hazards to boater safety at a boating access area at Queens Creek in Onslow Co.
Comments may be submitted to: Carrie Ruhlman, Rule-making Coordinator, 1701 Mail Service Center, Raleigh, NC 27699-1701; email regualtions@ncwildlife.org
Comment period ends: June 1, 2018
Procedure for Subjecting a Proposed Rule to Legislative Review: If an objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission after the adoption of the Rule. If the Rules Review Commission receives written and signed objections after the adoption of the Rule in accordance with G.S. 150B-21.3(b2) from 10 or more persons clearly requesting review by the legislature and the Rules Review Commission approves the rule, the rule will become effective as provided in G.S. 150B-21.3(b1). The Commission will receive written objections until 5:00 p.m. PROPOSED RULES
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on the day following the day the Commission approves the rule. The Commission will receive those objections by mail, delivery service, hand delivery, or facsimile transmission. If you have any further questions concerning the submission of objections to the Commission, please call a Commission staff attorney at 919-431-3000.
Fiscal impact (check all that apply). State funds affected Environmental permitting of DOT affected
Analysis submitted to Board of Transportation Local funds affected Substantial economic impact (≥$1,000,000) Approved by OSBM No fiscal note required by G.S. 150B-21.4 No fiscal note required by G.S. 150B-21.3A(d)(2)
CHAPTER 10 - WILDLIFE RESOURCES AND WATER SAFETY
SUBCHAPTER 10F - MOTORBOATS AND WATER SAFETY
SECTION .0300 - LOCAL WATER SAFETY REGULATIONS
15A NCAC 10F .0307 CATAWBA: IREDELL: LINCOLN CATAWBA, IREDELL, LINCOLN, AND MECKLENBURG COUNTIES
(a) Regulated Area. This Rule applies to the waters of Lake Norman which is located in the counties of Catawba, Iredell, Lincoln and Mecklenburg. Mecklenburg counties:
(1) within 50 yards of the shoreline at Jetton Park in Mecklenburg County, from a point on the west side of the park at 35.47082 N, 80.90427 W, south and around the point at 35.46703 N, 80.90360 W, then northeast to a point at 35.47262 N, 80.89727 W;
(2) within 50 yards of Brown's Cove the end of the docks at Blythe Landing Park, west of N.C. Highway 73 in Huntersville;
(3) the waters of Bluff Point Cove in Cornelius shore to shore, east of a line from a point 50 yards west of the south shore of the cove mouth at 35.45327 N, 80.89520 W to a point 50 yards west of the north shore of the cove mouth at 35.45487 N, 80.89440 W; and
(4) the waters of the Hager Creek cove in Iredell County, east of a line at the cove mouth from a point on the south shore at 35.55117 N, 80.95250 W to a point on the north shore of the cove mouth at 35.56162 N, 80.95230 W.
(b) Speed Limit Near Shore Facilities. No person shall operate a vessel at greater than no-wake speed within 50 yards of any marked boat launching area, bridge, dock, pier, marina, boat storage structure, or boat service area on the waters of Lake Norman.
(b) No person shall operate a vessel at greater than no wake speed within the regulated areas described in Paragraph (a) of this Rule.
(c) Speed Limit Near Parks: No person shall operate a vessel greater than no-wake speed within 50 yards of the following parks as designated by markers:
(1) Jetton Park;
(2) Brown's Cove Park.
(d) Specific Speed Zones: No person shall operate a vessel at greater than no-wake speed in the following designated waters:
(1) the entire area of Bluff Point Cove;
(2) that cove immediately north of the inlet of Hager Creek.
(e)(c) Restricted Swimming Areas. No person operating or responsible for the operation of a vessel shall permit it to enter any marked swimming area on the waters of Lake Norman.
(f)(d) Placement and Maintenance of Markers. Each of the boards of commissioners of the above-named counties The Lake Norman Marine Commission or a county in that Commission is the designated a suitable agency for placement and maintenance of navigational aids and regulatory markers of a general nature on the waters of Lake Norman Norman. within the boundaries of each respective county. Provided the said counties exercise their supervisory responsibility, they may delegate the actual process of placement or maintenance of such markers to some other agency, corporation, group, or individual.
With regard to marking the restricted zones described above, markers may be placed and maintained by the individuals using the protected areas and facilities in accordance with the Uniform Waterway Marking System and supplementary standards as set forth in Rule .0301(g)(1) to (8) of this Section.
(g)(e) Markers Reflecting County Regulation. Where any Any marker conforming or required to conform to the system USATONS standards that is placed in or near Lake Norman advising the public of the provisions of any a regulation by local act or of county ordinances ordinance made under the authority of any local act and: that is not within the enforcement jurisdiction of the Commission shall bear the legend "County Regulation" to indicate the regulation is not enforceable by the Commission.
(1) Such provisions are not within the enforcement jurisdiction of the Commission; and
(2) The Commission has not passed regulations of an identical or closely similar nature to that of the provisions in question, such marker to be deemed in conformity with the uniform system must bear on it the legend "County Regulation" at such a place or at such places as needed to indicate which provisions are not enforceable by the Commission as a matter of state law.
(h)(f) Miscellaneous Restrictions. In addition to the acts prohibited by Paragraph (f) of Rule .0301 of this Section, it is shall be unlawful to commit any such act with respect to any marker placed or erected under the authority of Chapter 1205 of the 1965 Session Laws of the State of North Carolina by any one of the above-named counties or by them jointly. the Lake Norman Marine Commission or one of the counties in that Commission.
Authority G.S. 75A-3; 75A-15; S.L. 1965, c. 1205; S.L. 1969, c.1089.
PROPOSED RULES
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15A NCAC 10F .0320 ONSLOW COUNTY
(a) Regulated Areas. This Rule applies to the following waters and portions of waters: in Onslow County:
(1) Old Settler's Beach: those waters of Onslow County contained within the canals located in the Old Settler's Settlers Beach subdivision in the Town of Surf City, extended from east of the Pender Onslow-Pender County line northwardly or northeasterly to the canal adjacent to or near the property of Topsail Island Developers, Inc., and more specifically those canals extending along the cul-de-sac lots from the Pender County line northwardly or northeasterly to the most northwardly of said canals above referred to, said canals extended from First Street to the canal lying northwardly or northeasterly of Ninth Street, to include those waters of the approach canal at Old Settler's Beach from marker number 53 in the Intracoastal Waterway south to Broadway Street; line, and the waters of the approach canal from the Intracoastal Waterway between markers 53 and 57, extending south-southwest to the Onslow-Pender County line;
(2) New River: those the waters of New River, near River in the City of Jacksonville shore to shore, between a point 100 yards upstream, and 300 yards downstream, of the Seaboard Coast Line Railroad trestle; north from a line at a point on the east shore at 34.74356 N, 77.43775 W to a point on the west shore at 34.74358 N, 77.43924 W; and south from a line at a point on the east shore at 34.74695 N, 77.43719 W, to a point on the west shore at 34.74562 N, 77.44114 W; and those the waters of the New River shore to shore between north of the SR 1402 bridge otherwise known as the Old Bridge Street bridge and south of the U.S. Highway 17 Business bridge otherwise known as Marine Boulevard bridge; and US 17 (Riverview Street) bridges and upstream from the US 17 bridge along the south shore to a point 50 yards beyond the Jacksonville Marina; and within 50 yards of the shoreline at the Marina Café and Marina, from the U.S. Highway 17 Business bridge otherwise known as Marine Boulevard bridge to a point on the west shore at 34.75461 N, 77.43819 W; and
(3) Wheeler's Point: those waters in the creek from Wheeler's Point northerly to SR 1558 near the town of Sneads Ferry;
(4) Swansboro Harbor: those waters of White Oak River and Swansboro Bay between the Atlantic Intracoastal Waterway and the NC Highway 24 bridge, Swansboro.
(3) the waters of Queens Creek near the boating access area at the north end of SR 1688, otherwise known as Sussex Lane in Hubert, shore to shore west of a line from a point on the
south shore at 34.69881 N, 77.18884 W to a point on the north shore at 34.69949 N, 77.18880 W and south-southeast of a line from a point on the west shore at 34.70103 N, 77.19287 W to a point on the east shore at 34.70101 N, 77.19216 W.
(b) Speed Limit. No person shall operate any motorboat or vessel at greater than no-wake speed within the regulated areas described in Paragraph (a) of this Rule.
(c) Placement and Maintenance of Markers. The Board of Commissioners of Onslow County is the designated a suitable agency for placement and maintenance of the markers implementing this Rule, subject to the approval of the United States Coast Guard and the United States Army Corps of Engineers.
Authority G.S. 75A-3; 75A-15.
15A NCAC 10F .0342 CATAWBA COUNTY
(a) Regulated Areas. This Rule applies to the following waters of Lake Hickory:
(1) the public fishing pier located at the old Wildlife Club off 12th Street Drive, NW, City of Hickory;
(2) the shores of the Dixie Boat Club, Inc.;
(3)(1) that the area within 50 yards of the Moore's Ferry Boat Marina and Boathouse in the City of Hickory on 44th Avenue, Circle NW; at 44th Avenue Circle, NW; and
(4)(2) the cove entering the Lake Hickory RV Resort/Marina as delineated by appropriate markers. Resort boating access area, south of a line from a point on the east shore at 35.80767 N, 81.22795 W, to a point on the west shore at 35.80818 N, 81.22899 W, and the waters of the cove west and south of the Lake Hickory RV Resort shore to shore, south-southeast of a line from a point on the west shore of the cove mouth at 35.80675 N, 81.23275 W to a point on the east shore of the cove mouth at 35.80722 N, 81.23145 W.
(b) Speed Limit. No person shall operate a vessel at greater than no-wake speed in the waters of the regulated areas specified in Paragraph (a) of this Rule.
(c) Placement and Maintenance of Markers. The governing board of the City of Hickory and the Catawba County Board of Commissioners are the designated suitable agencies for placement and maintenance of the markers implementing this Rule, subject to the approval of the United States Coast Guard and the United States Army Corps of Engineers.
Authority G.S. 75A-3; 75A-15.
15A NCAC 10F .0353 MOUNTAIN ISLAND LAKE: LAKE - MECKLENBURG, GASTON AND LINCOLN COUNTIES
(a) Regulated Area. This Rule applies to Mountain Island Lake, which is located Lake in Mecklenburg, Gaston and Lincoln counties. counties: PROPOSED RULES
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(1) Latta Plantation Park - The the cove lying north of and adjacent to the Historic Latta Plantation Park and adjacent to the Mecklenburg County Park and Duke Power Company properties. Park in Mecklenburg County, southeast of a line from a point on the southwest shore at 35.35772 N, 80.92474 W to a point on the northeast shore at 35.36019 N, 80.91935 W;
(2) Duck Cove - The the waters of Duck Cove as delineated by appropriate markers. Duck Cove is adjacent to Mecklenburg County's in Cowan's Ford Wildlife Refuge and west of the portion of Neck Road that runs through Cowan's Ford Wildlife Refuge. Refuge in Mecklenburg County, beginning at the mouth of the cove at 35.38097 N, 80.97894 W;
(3) Nance Cove the waters in a portion of the south prong of Nance Cove in Mecklenburg County, south of a line from a point on the west shore at 35.33982 N, 80.95313 W to a point on the east shore at 35.34010 N, 80.95185 W; and the waters of the west prong of Nance Cove between SR 2253, otherwise known as Nance Cove Road, and SR 5510 otherwise known as Haymarket Road, south of a line at the mouth of the cove's west prong from a point on the west shore at 35.34547 N, 80.955677 W to a point on the east shore at 35.34506 N , 80.95578 W;
(A) The waters of the southern portion of Nance Cove extending north from the back of the cove, at or near Shuffletown Landing, up the cove toward the main channel of Mountain Island Lake, extending to a point that is roughly even with the boundary line between Lots 166 and 167 in the Overlook subdivision, which lots are just north of the Overlook Swim & Tennis Club, and where the cove is approximately 368 feet wide.
(B) The waters of the western arm or sub-cove of Nance Cove, which lies west of Shadow Cove Lane and the northern-most portion of Nance Cove Road and east of Haymarket Road.
(4) North Carolina Highway 16 Bridge B – an the area extending approximately within 50 yards in all directions from shore to shore, northeast and southwest of the NC Highway 16 Bridge also known as the Rozelles Ferry Bridge N.C. Highway 16, otherwise known as Brookshire Boulevard bridge in Mecklenburg and Gaston counties;
(5) the portion of Neck Cove in Mecklenburg County beginning at a point shore to shore, north of a line from a point on the western west shore at 35.367061 N, 80.932632 W 35.36706 N, 80.93263 W to a point on the eastern east
shore at 35.367085N, 80.931129 35.36708 N, 80.93113 W; and extending the entire length of the cove.
(6) Gar Creek in Mecklenburg County, east of a line from a point on the north shore at 35.348851 N, 80.927461 W 35.34885 N, 80.92746 W to a point on the south shore at 35.348082 N, 80.927736 W 35.34804 N, 80.92774 W, and west to of a line from a point on the north shore at 35.348854N, 80.926821W to a point on the south shore at 35.34844 N, 80.925803W. 35.34887 N, 80.92686 W to a point on the south shore at 35.34840 N, 80.92585 W;
(7) Whispering Cove in Mecklenburg County, south of a line beginning at from a point on the western west shore at 35.341223N, 80.975715W 35.34119 N, 80.97570 W to a point on the eastern east shore at 35.340806N, 80.974785W and extending the entire length of the cove. 35.34079 N, 80.97477 W; and
(8) North Carolina Highway 73 Bridge - an area extending approximately 50 yards in all directions from the NC Highway 73 Bridge: east of a line from a point on the north shore at 35.428079N, 80.95799W to a point on the south shore at 35.427177N, 80.957424W to a line from a point on the north shore at 35.427845N, 80.955441W to a point on the south shore at 35.427008N, 80.955422W. shore to shore within 50 yards north and south of the N.C. Highway 73 bridge in Mecklenburg and Gaston counties.
(b) Speed Limit. No person shall operate any motorboat or vessel at greater than no-wake speed within the regulated area described in Paragraph (a) of this Rule.
(c) Placement and Maintenance of Markers. The Board Boards of Commissioners for of Mecklenburg County, for of Gaston County and for of Lincoln County are the designated as suitable agencies for placement and maintenance of markers implementing this Rule for regulated areas within their territorial jurisdiction in accordance with the Uniform System. jurisdictions.
Authority G.S. 75A-3; 75A-15.
15A NCAC 10F .0360 GRAHAM COUNTY
(a) Regulated Area. This Rule applies to the following waters and portions of waters described as follows: waters in Graham County:
(1) Lake Santeetlah Boat Dock on Lake Santeetlah in Graham County. Santeetlah Marina cove on Santeetlah Lake, shore to shore north of a line from a point on the west shore at 35.36435 N, 83.85841 W to a point on the northeast shore at 35.36532 N, 83.85529 W;
(2) Entrance of Fontana Boat Dock Fontana Village Resort Marina cove in Fontana Lake in Graham County. on Fontana Lake, shore to shore west of a line from a point on the north PROPOSED RULES
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shore at 35.44294 N, 83.78900 W to a point on the south shore at 35.44077 N, 83.78936 W;
(3) within 50 yards of the Thomas Prince Boat Dock Marina at 237 Prince Boat Dock Road in Almond, and its docks and mooring areas on Fontana Lake in Graham County. Lake;
(4) within 50 yards of Crisp's Crisp Boat Dock, Dock on Town Branch off Panther Creek on Fontana Lake in Graham County. Lake, near the northern end of SR 1234 otherwise known as Lower Panther Creek Road in Robbinsville; and
(5) within 50 yards of the Deyton Camp Boat Dock on Santeetlah Lake at 270 Deyton Camp Road off the main channel of the Tallulah prong of Santeetlah Lake. Road otherwise known as SR 1153, in Robbinsville.
(b) Speed Limit. No person shall operate a vessel at greater than no-wake speed within 50 yards of the regulated areas as described in Paragraph (a) of this Rule.
(c) Cheoah Point Swimming Area, Lake Santeetlah - No person shall operate a vessel within the Cheoah Point Swimming Area which begins at the head of Cheoah Point Cove and extends to the mouth of the Cove as designated by marker buoys and float lines. Cove. No one shall operate a vessel at greater than no-wake speed east of the mouth of Cheoah Point Cove, beginning at a point at 35.37246 N, 83.87081 W.
(d) Placement and Maintenance of Markers. The Graham County Board of Commissioners is the designated as a suitable designated agency for the placement and maintenance of markers implementing this Rule. Rule, subject to the authority of the Tennessee Valley Authority and the United States Army Corps of Engineers.
Authority G.S. 75A-3; 75A-15.
15A NCAC 10F .0366 MACON COUNTY
(a) Regulated Area. This Rule applies to the following waters of Nantahala Lake:
(1) Lakes End Cove west of SR 1310 otherwise known as Wayah Road in Topton, shore to shore, beginning at shore north of a line from a point on the northwest west shore at 35.19602 N, 83.64184 W to a point on the southeast east shore at 35.19544 N, 83.64053 W. 83.64053 W; and
(2) That the area within 100 yards from of a point at 35.16570 N, 83.64686 W at from the end of the Mountain Shadows Community Dock. dock, in Topton.
(b) Speed Limit. No person shall operate a vessel at greater than no-wake speed in the waters of the regulated area specified in Paragraph (a) of this Rule.
(c) Placement and Maintenance of Markers. The Board of Commissioners of Macon County is the designated a suitable agency for placement and maintenance of the markers implementing this Rule.
Authority G.S. 75A-3; 75A-15.
15A NCAC 10F .0373 TRANSYLVANIA COUNTY
(a) Regulated Area. This Rule applies to Lake Toxaway. Toxaway in Transylvania County.
(b) Speed Limit. No person shall operate a vessel at greater than no-wake speed within 50 yards of the Lake Toxaway Marina. the Lake Toxaway Country Club Marina cove, south of a line from a point on the west shore at 35.14136 N, 82.95424 W to a point on the east shore at 35.14126 N,82.95303 W.
(c) Placement and Maintenance of Markers. The Board of Commissioners of Transylvania County is the designated a suitable agency for placement and maintenance of markers implementing this Rule, subject to the approval of the United States Army Corp of Engineers. Rule.
Authority G.S. 75A-3; 75A-15.
15A NCAC 10F .0375 DUKE ENERGY CORPORATION HYDROELECTRIC STATION SAFETY ZONES
(a) Regulated Area. This Rule applies to the area one hundred feet upstream or downstream from the stations and dams (and dams, and associated structures, abutments and equipment of these stations and dams) dams, listed in Paragraph (f) of this Rule.
(b) Fishing. Except as otherwise provided in this Paragraph or in Paragraph (c) of this Rule, no person may enter the waters within the regulated areas described in Paragraph (a) of this Rule. Persons engaged in fishing within the regulated areas described in Paragraph (a) of this Rule may enter these waters in connection with such fishing activities provided that they shall wear at all times a U.S. Coast Guard United States Coast Guard approved personal floatation flotation device in serviceable condition and of appropriate size for the wearer.
(c) Boating. Any person in or upon a boat, raft or other floating object that enters the regulated area described in Paragraph (a) of this Rule shall wear at all times a U.S. Coast Guard United States Coast Guard approved personal floatation flotation device in serviceable condition and of appropriate size for the wearer. No vessel may tie off to any part of the dam structure or the accessory portions thereof portions, nor anchor or otherwise secure a vessel within regulated areas described in Paragraph (a) of this Rule, or to anchor or otherwise secure a vessel in these areas. Rule.
(d) Paragraph (c) of this Rule does not apply to persons who enter with consent of Duke Energy Corporation for the purpose of maintaining, repairing or evaluating facilities of Duke Energy Corporation; law enforcement or emergency personnel; or North Carolina state employees acting in an official capacity.
(e) Placement and Maintenance of Markers. Duke Energy Corporation is the designated as a suitable entity for placement and maintenance of buoys and other signs implementing this Rule.
(f) Duke Energy Corporation hydroelectric stations and dams affected by this Rule:
(1) Bridgewater Hydroelectric Station (Paddy including Paddy Creek Dam, Linville Dam and Catawba Dam) Dam in the Catawba River in Burke and McDowell counties;
(2) Cowans Ford Hydroelectric Station (Cowans Ford Dam) including Cowans Ford Dam in the Catawba River in Lincoln and Mecklenburg counties; PROPOSED RULES
32:19 NORTH CAROLINA REGISTER APRIL 2, 2018
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(3) Lookout Hydroelectric Station (Lookout Dam) including Lookout Dam in the Catawba River in Catawba and Iredell counties;
(4) Mountain Island Hydroelectric Station (Mountain Island Dam) including Mountain Island Dam in the Catawba River in Gaston and Mecklenburg counties;
(5) Oxford Hydroelectric Station (Oxford Dam) including Oxford Dam in the Catawba River in Alexander and Catawba counties;
(6) Rhodhiss Hydroelectric Station (Rhodhiss Dam) including Rhodhiss Dam in the Catawba River in Burke and Caldwell counties; and
(7) Tuxedo Hydroelectric Station (Tuxedo Dam) including Tuxedo Dam in the Green River in Henderson County.
Authority G.S. 75A-3; 75A-15.
* * * * * * * * * * * * * * * * * * * *
Notice is hereby given in accordance with G.S. 150B-21.2 that the Well Contractors Certification Commission intends to adopt the rule cited as 15A NCAC 27 .0120.
Link to agency website pursuant to G.S. 150B-19.1(c): http://wellcontractors.nc.gov/web/eh/rules
Proposed Effective Date: October 1, 2018
Public Hearing:
Date: April 23, 2018
Time: 10:00 a.m.
Location: 5605 Six Forks Road, Raleigh, NC 27609, Room 3-3-B5
Reason for Proposed Action: This proposed rule is necessary to conform to NC General Statute 150B-20(a) which requires agencies to provide additional notice of petitions for rulemaking.
Comments may be submitted to: Andrew Morgan, 1653 Mail Service Center, Raleigh, NC 27699-1653; phone (919) 707-5882; email Andrew.morgan@dhhs.nc.gov
Comment period ends: June 1, 2018
Procedure for Subjecting a Proposed Rule to Legislative Review: If an objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission after the adoption of the Rule. If the Rules Review Commission receives written and signed objections after the adoption of the Rule in accordance with G.S. 150B-21.3(b2) from 10 or more persons clearly requesting review by the legislature and the Rules Review Commission approves the rule, the rule will become effective as provided in G.S. 150B-21.3(b1). The Commission will receive written objections until 5:00 p.m. on the day following the day the Commission approves the rule. The Commission will receive those objections by mail, delivery service, hand delivery, or facsimile transmission. If you have any
further questions concerning the submission of objections to the Commission, please call a Commission staff attorney at 919-431-3000.
Fiscal impact (check all t