SUMMARIES OF SUBSTANTIVE RATIFIED LEGISLATION - 2009
SUMMARIES OF SUBSTANTIVE
RATIFIED LEGISLATION
2009 GENERAL ASSEMBLY
2009 REGULAR SESSION
RESEARCH DIVISION
N.C. GENERAL ASSEMBLY
JANUARY 2010
350 copies of this document were published at an estimated cost of $10.06 per copy.
January 2010
To the Members of the 2009 Session of the 2009 General Assembly:
This publication contains summaries of all substantive legislation of general applicability
and certain local legislation having general import from the 2009 Regular Session. Most local
acts are not analyzed in this publication. Significant appropriations matters related to the
subject area specified are also included. For an in-depth review of the appropriations and
revenue process, please refer to Overview: Fiscal and Budgetary Actions, prepared by the Fiscal
Research Division.
The document is organized alphabetically by subject areas. Where feasible, the subject
area is further divided into subgroups. Each subject area also includes a listing of legislative,
independent, and agency studies. A bill/session law index listing the page number of each
summary is at the end of the publication.
This document is the result of a combined effort by the following staff members of the
Research Division: Dee Atkinson, Cindy Avrette, Drupti Chauhan, Erika Churchill, Karen
Cochrane-Brown, Judy Collier, Bill Gilkeson, Kory Goldsmith, Trina Griffin, Tim Hovis, Jeff
Hudson, Shirley Iorio, Sara Kamprath, Brad Krehely, Mariah Matheson, Theresa Matula, Kara
McCraw, Jennifer McGinnis, Joe Moore, Jennifer Mundt, Kelly Quick, Shawn Parker, William
Patterson, Hal Pell, Giles S. Perry, Wendy Graf Ray, Barbara Riley, Steve Rose, and Susan Sitze.
Dan Ettefagh, of the Bill Drafting Division, and Martha Walston, of the Fiscal Research Division,
also contributed to this document. Brenda Carter is chief editor of this year’s publication, and
Heather Fennell is co-editor. Ben Popkin, Denise Huntley Adams, Susan Barham and Lucy
Anders, of the Research Division, also helped edit this document. The specific staff members
contributing to each subject area are listed directly below the chapter heading for that area.
Staff members' initials appear after their names and after each summary they contributed. If
you would like further information regarding any legislation in the various summaries, please
contact the Research Division Office at (919) 733-2578.
This document also is available on the Internet. Go to the General Assembly’s homepage
at http://www.ncleg.net. Click on "Legislative Publications," then "Research Division," then
"Summaries of Substantive Ratified Legislation." Each summary is hyperlinked to the final bill
text, the bill history, and any applicable fiscal note.
I hope that this document will provide a useful source of information for the members of
the General Assembly and the public in North Carolina. We would appreciate receiving any
suggestions for this publication's improvement.
Yours truly,
O. Walker Reagan
Director of Research
Guide to Staff Initials
(BC) Brenda Carter
(BG) Bill Gilkeson
(BK) Brad Krehely
(BP) Ben Popkin
(BR) Barbara Riley
(CA) Cindy Avrette
(DA) Dee Atkinson
(DC) Drupti Chauhan
(DE) Dan Ettefagh
(DHA) Denise Huntley Adams
(EC) Erika Churchill
(GSP) Giles S. Perry
(HF) Heather Fennell
(HP) Hal Pell
(JC) Judy Collier
(JH) Jeff Hudson
(JLM) Jennifer McGinnis
(JHM) Joe Moore
(JM) Jennifer Mundt
(KCB) Karen Cochrane-Brown
(KG) Kory Goldsmith
(KM) Kara McCraw
(KQ) Kelly Quick
(MM) Mariah Matheson
(MW) Martha Walston
(SB) Susan Barham
(SI) Shirley Iorio
(SK) Sara Kamprath
(SP) Shawn Parker
(SR) Steve Rose
(SS) Susan Sitze
(TG) Trina Griffin
(TH) Tim Hovis
(TM) Theresa Matula
(WGR) Wendy Graf Ray
(WP) William Patterson
i
TABLE OF CONTENTS
CHAPTER 1: AGRICULTURE AND WILDLIFE ...................................................... 1
ENACTED LEGISLATION................................................................................................. 1
Agriculture ................................................................................................................ 1
Wildlife ...................................................................................................................... 4
STUDIES ........................................................................................................................ 7
Legislative Research Commission ............................................................................ 7
Referrals to Departments, Agencies, Etc. ................................................................. 8
CHAPTER 2: ALCOHOLIC BEVERAGE CONTROL ........................................... 11
ENACTED LEGISLATION............................................................................................... 11
CHAPTER 3: CHILDREN AND FAMILIES ............................................................. 13
ENACTED LEGISLATION............................................................................................... 13
CHAPTER 4: CIVIL LAW AND PROCEDURE....................................................... 19
ENACTED LEGISLATION............................................................................................... 19
MAJOR PENDING LEGISLATION ................................................................................... 22
CHAPTER 5: COMMERCIAL LAW AND CONSUMER PROTECTION ........... 23
ENACTED LEGISLATION............................................................................................... 23
CHAPTER 6: CONSTITUTION AND ELECTIONS ............................................... 37
ENACTED LEGISLATION............................................................................................... 37
STUDIES ...................................................................................................................... 43
Legislative Research Commission .......................................................................... 43
Referrals to Existing Commissions/Committees ..................................................... 43
CHAPTER 7: COURTS, JUSTICE, AND CORRECTIONS .................................... 45
ENACTED LEGISLATION............................................................................................... 45
Referrals to Departments, Agencies, Etc. ............................................................... 62
STUDIES ...................................................................................................................... 64
MAJOR PENDING LEGISLATION ................................................................................... 65
CHAPTER 8: CRIMINAL LAW AND PROCEDURE ............................................. 67
ENACTED LEGISLATION............................................................................................... 67
CHAPTER 9: EDUCATION ........................................................................................ 79
ENACTED LEGISLATION............................................................................................... 79
Public Schools ......................................................................................................... 79
Higher Education .................................................................................................... 95
Community Colleges ............................................................................................... 96
Universities ............................................................................................................. 99
STUDIES .................................................................................................................... 103
ii
Legislative Research Commission ........................................................................ 103
New/Independent Studies/Commissions ................................................................ 103
Referrals to Existing Commissions/Committees ................................................... 105
Referrals to Departments, Agencies, Etc. ............................................................. 106
CHAPTER 10: ENERGY............................................................................................ 111
ENACTED LEGISLATION............................................................................................. 111
STUDIES .................................................................................................................... 112
CHAPTER 11: ENVIRONMENT AND NATURAL RESOURCES ...................... 113
ENACTED LEGISLATION............................................................................................. 113
Animal Waste Management .................................................................................. 113
Climate Change .................................................................................................... 114
Coastal Issues ....................................................................................................... 114
Fisheries ................................................................................................................ 115
Miscellaneous ....................................................................................................... 115
Solid/Hazardous Waste ......................................................................................... 119
Parks and Public Spaces ....................................................................................... 122
Water Quality/Quantity/Groundwater .................................................................. 124
STUDIES .................................................................................................................... 127
New/Independent Studies/Commissions ................................................................ 127
Referrals to Existing Commissions/Committees ................................................... 128
Referrals to Departments, Agencies, Etc. ............................................................. 132
MAJOR PENDING LEGISLATION ................................................................................. 133
CHAPTER 12: FINANCE .......................................................................................... 137
ENACTED LEGISLATION............................................................................................. 137
Appropriations Act of 2009 ................................................................................... 142
STUDIES .................................................................................................................... 151
Referrals to Existing Commissions/Committees ................................................... 151
CHAPTER 13: HEALTH AND HUMAN SERVICES ............................................ 153
ENACTED LEGISLATION............................................................................................. 153
STUDIES .................................................................................................................... 183
New/Independent Studies/Commissions ................................................................ 183
Legislative Research Commission ........................................................................ 183
Referrals to Existing Commissions/Committees ................................................... 184
Referrals to Departments, Agencies, Etc. ............................................................. 185
CHAPTER 14: INSURANCE ..................................................................................... 189
ENACTED LEGISLATION............................................................................................. 189
Auto Insurance ...................................................................................................... 189
Health Insurance ................................................................................................... 190
Insurance Guaranty Association ........................................................................... 194
Property Insurance ............................................................................................... 195
State Health Plan .................................................................................................. 197
iii
Miscellaneous ....................................................................................................... 199
STUDIES .................................................................................................................... 203
New/Independent Studies/Commissions ................................................................ 203
Legislative Research Commission ........................................................................ 203
Referrals to Existing Commissions/Committees ................................................... 205
Referrals to Departments, Agencies, Etc. ............................................................. 205
CHAPTER 15: LABOR AND EMPLOYMENT ...................................................... 207
ENACTED LEGISLATION............................................................................................. 207
CHAPTER 16: LOCAL GOVERNMENT ................................................................ 213
ENACTED LEGISLATION............................................................................................. 213
CHAPTER 17: MILITARY, VETERANS', AND INDIAN AFFAIRS .................. 223
ENACTED LEGISLATION............................................................................................. 223
Military and Veterans Affairs ............................................................................... 223
Indian Affairs ........................................................................................................ 225
STUDIES .................................................................................................................... 225
New/Independent Studies/Commissions ................................................................ 225
CHAPTER 18: OCCUPATIONAL BOARDS AND LICENSING ......................... 227
ENACTED LEGISLATION............................................................................................. 227
CHAPTER 19: PROPERTY, TRUSTS, AND ESTATES ....................................... 239
ENACTED LEGISLATION............................................................................................. 239
CHAPTER 20: RESOLUTIONS ................................................................................ 251
JOINT RESOLUTIONS .................................................................................................. 251
CHAPTER 21: RETIREMENT ................................................................................. 255
ENACTED LEGISLATION............................................................................................. 255
CHAPTER 22: STATE GOVERNMENT ................................................................. 261
ENACTED LEGISLATION............................................................................................. 261
Agencies and Departments ................................................................................... 268
Governmental Employment ................................................................................... 272
Boards, Commissions, and Committees ................................................................ 273
STUDIES .................................................................................................................... 274
Vetoed Legislation ................................................................................................ 274
CHAPTER 23: TRANSPORTATION ....................................................................... 275
ENACTED LEGISLATION............................................................................................. 275
Department of Transportation .............................................................................. 275
Drivers Licenses .................................................................................................... 277
License Plates/Vehicle Registration ..................................................................... 280
Motor Vehicle Dealer Franchise Laws ................................................................. 281
iv
Motor Vehicle Laws .............................................................................................. 282
Public Transportation and Rail ............................................................................ 288
Toll Roads ............................................................................................................. 289
Miscellaneous ....................................................................................................... 289
Studies ................................................................................................................... 290
CHAPTER 24: UTILITIES ........................................................................................ 293
ENACTED LEGISLATION............................................................................................. 293
STUDIES .................................................................................................................... 295
CHAPTER 25: VETOED LEGISLATION ............................................................... 297
INDEX ................................................................................................................................ i
Chapter 1 Agriculture and Wildlife
Page 1
Chapter 1
Agriculture and Wildlife
Heather Fennell (HF), Mariah Matheson (MM), Hal Pell (HP),
Barbara Riley (BR), Steve Rose (SR), Susan Sitze (SS)
Enacted Legislation
Agriculture
Adopt Official North Carolina Potato Festival
S.L. 2009-24 (HB 588) designates the Albemarle Potato Festival as the official Irish
Potato Festival of the State of North Carolina.
This act became effective May 13, 2009. (HF)
Clarify License Requirements/Out-of-State Weighmasters
S.L. 2009-87 (HB 1108). See Occupational Boards and Licensing.SB 405
Update North Carolina Meat Inspection Act
S.L. 2009-102 (HB 1104) makes the inspection fees for ostriches and other ratites the
same as for other meat inspections, removes domesticated rabbits from regulation under the
Poultry Products Inspection Act, and makes changes to the exemption provisions applicable to
poultry processors in intrastate commerce.
The act conforms State law with federal law, as it relates to ratite meat inspections, by
deleting the inspection fee requirement for establishments preparing ostriches and other ratites
as a meat food product. A "ratite" is a flightless bird such as an ostrich, umu, or rhea. The act
does not change inspection requirements, but does provide that the inspections are now subject
only to overtime fees, as is the case with other meat inspections.
The act amends the State's Poultry Products Inspection Act to conform with federal law
concerning the processing of rabbits as meat products to be sold in interstate commerce. The
act repeals G.S. 106-549.51A, which required facilities slaughtering rabbits to have an inspector
onsite at the time of slaughter. Rabbit processing plants are subject to FDA regulations, which
require periodic site inspections for sanitation purposes. The act also amends the law concerning
the inspection of poultry, by providing certain exemptions from requirements related to the
inspection of poultry when distribution is limited to intrastate commerce only. A poultry producer
who raises and slaughters not more than 20,000 chickens or 5,000 turkeys, and who does not
sell the poultry in interstate commerce, is subject only to basic sanitation requirements and
periodic inspections; an inspector is not required to be onsite at the time of slaughter.
This act became effective June 15, 2009. (HP)
Extend State Veterinarian's Animal Disease Authority
S.L. 2009-103 (HB 1083) removes the sunset on provisions in State law authorizing the
State Veterinarian, in consultation with the Commissioner of Agriculture and with approval of the
Governor, to implement emergency measures in the event of an imminent threat within the State
of a potentially serious and rapidly spreading contagious animal disease.
Chapter 1 Agriculture and Wildlife
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Authorized emergency measures include: restrictions on the transportation of potentially
infected animals, agricultural products, and other commodities into and out of potentially infected
areas; restrictions on access to such areas; quarantines; use of emergency disinfectant;
destruction of infected animals; and other control measures at portals of entry to the State.
The original legislation, S.L. 2002-12, was subject to a sunset provision as of April 2003.
The sunset was extended in 2003 and again in 2005. The last authorization expired on October
1, 2009.
This act became effective September 30, 2009. (MM)
North Carolina Farmland Preservation Trust Fund
S.L. 2009-303 (HB 684) amends the membership of the Agricultural Development and
Farmland Preservation Trust Fund Advisory Committee by deleting the provision designating the
Director of the Southeast Regional Office of the American Farmland Trust and substituting the
Executive Director of the Rural Advancement Foundation International or the Executive Director's
designee. The membership change was necessitated by the closure of the American Farmland
Trust's Southeast Regional Office.
The legislation also clarifies that the monies in the Agricultural Development and
Farmland Preservation Trust Fund may be used only for the purposes set forth in G.S. 106-
744(c), which include the purchase of agricultural conservation easements, the costs of public
and private programs that will promote profitable and sustainable family farms through
assistance to farmers, funding conservation easements to bring into or maintain farmland in
active production, and program administrative costs.
This act became effective July 17, 2009. The change in membership of the Agricultural
Development and Farmland Preservation Trust Fund Advisory Committee must occur prior to the
next quarterly meeting of the Committee occurring on or after that date. (BR)
Recover Pets/Relieve Overcrowding at Shelters
S.L. 2009-304 (SB 467) amends public health laws providing for the impoundment of
animals found not wearing rabies tags, and expands the definition of Animal Control Officer. This
act:
􀂾􋹐 Provides that animal control officers may use a microchip scanning device to scan
animals to determine if there is a chip with identifying information, if the scan can be
done without cost, or at a reasonable cost.
􀂾􋹒 Requires that rules adopted by the Department of Agriculture and Consumer Services
be followed in euthanizing animals. If there are no applicable rules, procedures
approved by one of three specified organizations must be used (American Veterinary
Medical Association, the Humane Society of the United States or of the American
Humane Association.)
􀂾􋹒 Requires that before an animal is sold or euthanized, it must be made available to
the public for inspection and adoption, unless the animal is not adoptable due to
injury or defects due to health or temperament. If an animal is seriously ill or
injured, it may be euthanized if the manager of the shelter determines, in writing,
that it is appropriate to do so.
􀂾􋹒 Requires that animal shelters be open at least three days per week, for four hours
each day, to persons seeking to find lost animals. Those attempting to find an
animal are entitled to view every animal at the shelter. [Note: As to these
requirements, the effective date of the act, January 1, 2010, may be postponed by
the Department of Agriculture until July 1, 2010, for counties that do not have an
employee who fills the position of animal control officer for a minimum of 30 hours
per week.]
Chapter 1 Agriculture and Wildlife
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􀂾􋹐 Provides that dogs and cats held for reasons other than rabies control are subject to
the 72-hour holding period, as are animals surrendered by the animal's owner—
unless the owner provides proof of ownership and agrees in writing to a waiver of
the prescribed holding period before disposition.
􀂾􋹐 Provides that when animals without identifying information are delivered to shelters
by a person who found and captured the animal or by an approved rescue
organization that received the animal from a person who found and captured the
animal, such person or organization may be appointed by the animal shelter as its
agent. The agency is terminable at will by the agency. The animal shelter, absent a
contract, is immune from liability to the owner for any harm to the animal, and is not
liable for any costs for care of the animal while it is with the agent. The finder or
rescue organization must hold the animal for the prescribed period. After the
prescribed period, the animal shelter may transfer by adoption the animal to the
finder or rescue organization, or extend the holding period time.
􀂾􋹐 Provides that during the prescribed holding period, the animal may be placed by the
animal shelter into foster care. If a dog or cat leaves the animal shelter premises
(put with an agent or on foster care), then a photograph of the animal must be
displayed at the animal shelter during the prescribed holding period. It must be
displayed in a conspicuous location that is open to the general public for the entire
prescribed holding period.
􀂾􋹅 Expands the definition of "animal control officer" to include those agents of private
organizations operating animal shelters under contract with a city or county, during
the time that those agents are performing animal control functions at the shelter.
Except as noted above, this act became effective January 1, 2010. (HP)
Board of Agriculture Review of Fee Schedules
S.L. 2009-451, Sec. 11.3 (SB 202, Sec. 11.3) requires the Board of Agriculture to review
all fees under its jurisdiction every odd-numbered year to determine whether any of the fees
should be changed, and to report its findings to the House and Senate Appropriations
Subcommittees on Natural and Economic Resources and the Fiscal Research Division.
This section became effective July 1, 2009. (SR)
Update Seed Law/Increase Seed License Fees
S.L. 2009-455 (HB 1103) makes several changes to the North Carolina Seed Law. The
bill:
􀂾􋹁 Amends G.S. 106-277 to delete regulation of "screenings". Screenings are seed,
inert matter, and other materials removed from seeds by cleaning or processing.
􀂾􋹁 Amends the definitions section by replacing the term "processing" with the term
"conditioning", meaning the cleaning, scarifying, or blending to obtain uniform
quality or other operations that would change the seed such that retesting is
required to determine the quality of the seed.
􀂾􋹁 Amends the labeling statute by changing the lot identification requirement to "lot
number."
􀂾􋹃 Changes the label requirements for vegetable seeds.
􀂾􋹁 Amends G.S. 106-277.9, regarding prohibited acts related to seeds. It changes the
time frames in which the germination tests must be conducted on different types of
seeds. Germination tests on agricultural seed must be completed within a nine-month
period immediately prior to sale or offering for sale. Germination tests on
cool season lawn seeds or mixtures of such seeds must be completed within a 15-
month period and vegetable seed within a 12-month period. The changes also
Chapter 1 Agriculture and Wildlife
Page 4
delete the requirement for public hearing to designate a longer time period and
eliminate the treatment requirements for pepper seed.
􀂾􋹁 Amends G.S. 106-277.28 to increase the license fees for various categories of seed
dealers.
This act became effective October 1, 2009. (BR)
Sustainable Local Food Policy Council/Goal
S.L. 2009-530 (SB 1067) creates the 24-member North Carolina Sustainable Local Food
Policy Council whose purpose is to contribute to building a local food economy to create jobs,
stimulate economic development, circulate money within local communities, and provide greater
food security for North Carolinians. The Council will also consider and develop policies regarding
(1) health and wellness; (2) hunger and food access; (3) economic development; and (4)
preservation of farmlands and water resources.
In developing sustainable local food policies for the State the Council is authorized to
conduct in-depth analyses/assessments of:
􀂾�� The foods served to public school students under the National School Lunch Program
and the School Breakfast Program, including the possibility of increasing the amount
of sustainable local food used in these programs.
􀂾􋹔 The possibility of making sustainable local food available under public assistance
programs, including the potential use of food stamps at local farmers markets.
􀂾􋹔 The possibility of promoting urban gardens and backyard gardens for the purpose of
improving the health of citizens, making use of idle urban property, and lowering
food costs for urban dwellers during times of economic hardship.
􀂾􋹔 The potential impacts that the production of sustainable local food would have on
economic development in the State.
The council also may consider:
􀂾􋹉 Issues regarding how local and regional efforts could promote a sustainable local
food economy.
􀂾􋹉 Issues regarding the identification and development of solutions to regulatory and
policy barriers to developing a strong sustainable local food economy.
􀂾􋹉 Issues regarding strengthening local infrastructure and entrepreneurial efforts related
to a sustainable local food economy.
The Council must report its findings and recommendations to the General Assembly, the
Governor, and the Commissioner no later than October 1 each year, the first report being due no
later than October 1, 2010.
This act became effective August 28, 2009, and will expire on July 31, 2012. (BR)
Wildlife
Clarify Interstate Wildlife Violator Compact
S.L. 2009-15 (HB 105) clarifies that the Interstate Wildlife Violator Compact includes
violations of marine resources law. The Compact, adopted in 2008, provides a means through
which party states may participate in a reciprocal program to promote compliance with statutes
and regulations relating to wildlife resource management.
The act clarifies that the term "wildlife" includes all species of animals protected or
regulated by the Wildlife Resources Commission, the Marine Fisheries Commission, or the Division
of Marine Fisheries in the Department of Environment and Natural Resources. The act authorizes
the Secretary of Environment and Natural Resources and the Division of Marine Fisheries, in
addition to the Wildlife Resources Commission, to suspend or revoke the hunting and fishing
Chapter 1 Agriculture and Wildlife
Page 5
license, privilege, or right of any person whose license, privilege, or right has been suspended or
revoked by another Compact party state.
This act became effective October 1, 2009. (SS)
Active Duty Hunting/Fishing License Exemption
S.L. 2009-25 (HB 97). See Military, Veterans', and Indian Affairs.
Standardize Wild Boar Seasons/Swine Study
S.L. 2009-89 (HB 1118) standardizes wild boar hunting season and the harvesting of
feral swine, and directs the Department of Agriculture and Consumer Services (Department) to
study issues related to the importation of feral swine in North Carolina as follows:
􀂾􋹒 Repeals several local acts related to hunting wild boar that currently apply only to
Burke, Caldwell, Jackson, and Mitchell counties, making the rules regarding hunting
of wild boar consistent across the State.
􀂾􋹄 Defines wild boar as "free-ranging mammals of the species Sus scrofa that occur in
counties identified in the rules of the Wildlife Resources Commission".
􀂾􋹄 Directs the Department, in consultation with the Wildlife Resources Commission, the
U.S. Department of Agriculture's Animal and Plant Health Inspection Services, and a
cross-section of interested agricultural organizations, to study issues related to the
importation of feral swine in North Carolina, including the associated risks and
potential economic impact of importation. The act directs the Department to report
its findings and recommendations to the House Agriculture Committee and the
Senate Agriculture, Environment, and Natural Resources Committee during the 2010
Regular Session of the 2009 General Assembly.
The repeal and definition provisions became effective October 1, 2009. The remainder of
this act became effective July 1, 2009. (MM)
Amend Trap Sizes
S.L. 2009-120 (SB 1011) amends the laws governing the size of traps for taking wild
animals. State law provides that an animal may not be taken by trapping with any steel-jaw, leg
hold, or conibear trap unless the trap:
􀂾􋹈 Has a jaw spread of not more than seven and one-half inches.
􀂾􋹉 Is horizontally offset with closed jaw spread of at least three-sixteenths of an inch for
a trap with a jaw spread of more than five-and-one-half inches. This subdivision
does not apply if the trap is set in the water with quick-drown type of set.
􀂾􋹉 Is smooth-edged and without teeth or spikes.
􀂾􋹈 Has a weather-resistant permanent tag attached legibly giving the trapper's name
and address.
A conibear trap is a body hold trap and may be set in the water only near areas where
beaver and otter may be lawfully trapped. The act deletes the reference to the trap number
(330) and provides for the use only of conibear-type traps that have an inside jaw spread or
opening (width or height) greater than seven-and-one-half inches and that are no larger than 26
inches in width, and 12 inches in height.
This act became effective October 1, 2009. (HP)
Antlerless Deer Tag Fee
S.L. 2009-214 (SB 1008) authorizes the Wildlife Resources Commission to issue a "Bonus
Antlerless Deer License" for a fee of $10. This license may be issued to valid holders of big game
Chapter 1 Agriculture and Wildlife
Page 6
hunting licenses and individuals exempt from the licensing requirements, including landholders
and individuals under 16 accompanied by a licensed adult. Individuals would be able to take two
additional antlerless deer, increasing the total deer per season to the following:
􀂾􋹉 In the Eastern Deer Season, of the eight total deer, individuals may take no more
than four antlered deer per season.
􀂾􋹉 In the Central, Northwestern, and Western Deer Seasons, of the eight total deer,
individuals may take no more than two antlered deer per season.
This act became effective July 1, 2009. (HF)
Bat Protection Act
S.L. 2009-219 (HB 1419) authorizes the Wildlife Resources Commission to develop a bat
eviction and exclusion curriculum that may be taught by trade associations or wildlife
conservation organizations for certification. The curriculum may incorporate the training that is
provided as part of Wildlife Damage Control Agent certification in best management practices for
removing and evicting bats from structures and in preventing bats from reentering structures.
This act became effective June 30, 2009. (SS)
Migratory Game Bird Season Authority
S.L. 2009-221 (SB 1010) authorizes the Wildlife Resources Commission (WRC) to issue:
􀂾􋹐 Proclamations to set seasons, shooting hours, bag limits, and possession limits
congruent with the season framework set by the U.S. Department of the Interior.
This authority may be delegated to the Executive Director of the WRC.
􀂾􋹐 Proclamations to allow the use of electronic calls or unplugged shotguns in order to
achieve substantial conformity with applicable federal law and rules.
Proclamations authorized under the act must state the hour and date they become
effective and be issued at least 48 hours in advance. Additionally, the Executive Director must
make reasonable efforts to give notice of the terms of any proclamation to those affected by it,
including press releases, posting of notices where persons affected may gather (such as boating
ramps), and other measures. Proclamations remain in force until rescinded using the same
method established for enactment.
This act became effective July 1, 2009. (MM)
Hunting License Exemption for Special Events
S.L. 2009-248 (SB 1009) expands the Wildlife Resource Commission's current rulemaking
authority to exempt individuals from certain hunting and fishing license requirements when
participating in organized events. Exempted individuals must comply with reporting requirements
of the Commission, federal requirements for waterfowl hunting, and all other requirements of
license holders. Exempt individuals also must comply with hunting safety requirements or be
accompanied by a licensed adult who supervises the individual.
This act became effective October 1, 2009. (HF)
Require Boating Safety Education
S.L. 2009-282 (SB 43) requires persons under the age of 26 to comply with boating
safety education in order to operate a vessel with a motor of 10 horsepower or greater.
Compliance with boating safety education may be obtained by:
􀂾􋹃 Completing and passing a boating safety course given by the Wildlife Resources
Commission, or approved by the National Association of State Boating Law
Administrators and accepted by the Wildlife Resources Commission.
Chapter 1 Agriculture and Wildlife
Page 7
􀂾􋹐 Passing a proctored equivalency examination.
􀂾􋹐 Possessing a valid or expired Coast Guard license.
􀂾􋹐 Possessing a State-approved, nonrenewable temporary operator's certificate to
operate a vessel for 90 days, issued with the certificate or number to the purchaser
of a boat.
􀂾􋹐 Possessing a rental/lease agreement from a boat rental business listing the person as
the authorized operator of the boat.
􀂾􋹐 Properly displaying dealer registration numbers during demonstration of the boat.
􀂾􋹏 Operating the vessel under the direct supervision of a person 18 years of age or
older who complies with the requirements of the statute.
􀂾􋹓 Showing that the operator is not a resident, is temporarily in the State and boating
for a period of 90 days or less, and meets the boating safety education requirements
of his or her home state.
􀂾􋹂 Being a registered commercial fisherman or under the direct supervision of a
registered commercial fisherman while operating the commercial fisherman's boat.
Any person who has assumed operation of the vessel due to the illness or physical
impairment of the initial operator does not have to comply with these requirements in order to
return the vessel to shore to provide assistance or care for the operator.
Any person who violates the provisions of this act, or a rule adopted pursuant to this act,
is guilty of an infraction, as provided in G.S. 14-3.1. A person may not be convicted of violating
this section if, when tried for the offense, the person produces in court a certification card or
proof that the person has completed and passed a boating safety course in compliance with the
provisions of this act. The act prohibits local governments from enacting ordinances or rules
relating to boating safety education, and preempts all existing ordinances or rules.
The act provides that operators of personal watercraft remain subject to the provisions of
G.S. 75A-13.3, and amends that statute to require that persons between the ages of 14 to 16 on
a personal watercraft must be in compliance with the boating safety education requirements or
be accompanied by a person who is in compliance.
Additionally, the act requires any vessel livery to provide the operator of a leased
personal watercraft with basic safety instruction prior to allowing operation of the leased personal
watercraft. A vessel livery that fails to provide basic safety instruction is guilty of a Class 3
misdemeanor.
This act becomes effective May 1, 2010. (SS)
Studies
Legislative Research Commission
Greenhouse Gas Credits for Farming
S.L. 2009-574, Sec. 2.38 (HB 945, Sec. 2.38) authorizes the Legislative Research
Commission to study the feasibility and advisability of extending credits to the business of
farming in the same manner that credits are extended to other businesses in the event that
North Carolina participates in a market-based "Cap-and-Trade" program for greenhouse gas
emissions.
This section became effective September 10, 2009. (BR)
Equine Industry
S.L. 2009-574, Sec. 2.55 (HB 945, Sec. 2.55) authorizes the Legislative Research
Commission to study and evaluate the recommendations contained in the report to the Joint
Chapter 1 Agriculture and Wildlife
Page 8
Legislative Commission on Governmental Operations resulting from the Equine Industry Study
conducted by the Rural Economic Development Center, Inc.
This section became effective September 10, 2009. (BR)
Impact and Control of Fire Ants in North Carolina
S.L. 2009-574, Sec. 2.56 (HB 945, Sec. 2.56) authorizes the Legislative Research
Commission to study issues relating to the impact, control, and eradication of fire ants in North
Carolina.
This section became effective September 10, 2009. (BR)
Coyote Nuisance Removal Program
S.L. 2009-574, Sec. 2.57 (HB 945, Sec. 2.57) authorizes the Legislative Research
Commission to study the development of a coyote nuisance removal program aimed at
diminishing the threat presented by the existence of a coyote population in the State.
This section became effective September 10, 2009. (BR)
Spay/Neuter Program
S.L. 2009-574, Sec. 2.59 (HB 945, Sec. 2.59) authorizes the Legislative Research
Commission to study the possibility of establishing a voluntary statewide program to foster the
spaying and neutering of dogs and cats to reduce the population of unwanted animals in the
State.
This section became effective September 10, 2009. (BR)
Poultry Worker Health and Safety
S.L. 2009-574, Sec. 2.61 (HB 945, Sec. 2.61) authorizes the Legislative Research
Commission to study ways to improve poultry worker health and safety.
This section became effective September 10, 2009. (BR)
Referrals to Departments, Agencies, Etc.
Department of Agriculture to Study Whether the Current
Regulation of the Land Application of Septage and Sludge
Adequately Protects Human Health and the Environment
S.L. 2009-574, Sec. 39.1 (HB 945, Sec. 39.1) authorizes the Department of Agriculture
and Consumer Services to study:
􀂾􋹔 The extent to which septage and sewage sludge is being spread or applied to land in
the State.
􀂾􋹗 Whether current regulation of septage or sludge spreading is adequate.
􀂾􋹗 Whether changes are needed so that the combined effects of the land application of
animal wastes and municipal wastes are not detrimental to the people, domestic
animals, or wildlife of the State or the land and waters of the State.
The Department is authorized to work with local Soil and Water Conservation Districts to
determine the total volume of septage and sludge being spread in a county and post maps
regarding the findings on NC OneMap. Information may be shared with the commissioners of
each county. The Department also may consider whether the pesticide program administered by
Chapter 1 Agriculture and Wildlife
Page 9
the Department should be expanded to regulate the transportation and application of all wastes
that may include waste that would be considered hazardous if it were not commingled with
domestic sewage and determine what fees would be necessary to establish a regulatory
program, including testing of sludge and septage. The Department also may work with the
University of North Carolina to identify cost effective alternatives to land application. The
Department may report its findings and recommendations to the General Assembly no later than
May 1, 2010.
This section became effective September 10, 2009. (BR)
Chapter 1 Agriculture and Wildlife
Page 10
Chapter 2 Alcoholic Beverage Control
Page 11
Chapter 2
Alcoholic Beverage Control
Brenda Carter (BC), Susan Sitze (SS), Kelly Quick (KQ)
Enacted Legislation
Local Government Objections to Alcoholic Beverage Control
Stores
S.L. 2009-36 (HB 186) prohibits a local Alcoholic Beverage Control (ABC) board from
establishing an ABC store at a particular location within a municipality if the governing body of
the municipality has passed a resolution objecting to the location of the proposed store and the
resolution is based upon information and evidence presented to the governing body of the
municipality at a public hearing. If a municipality objects to a location, the local ABC board may
request the ABC Commission to approve the proposed ABC store location notwithstanding the
objection of the municipality. The ABC Commission has the final authority to determine if the
proposed location is suitable for an ABC store.
This act became effective October 1, 2009, and applies to ABC store locations announced
on or after that date. (BC)
Alcoholic Beverage Control Recycling Stay Extension
S.L. 2009-105 (HB 759) allows an applicant for the issuance or renewal of an on-premises
Alcoholic Beverage Control (ABC) permit to apply to the ABC Commission for a one-year
stay of the mandatory recycling requirement, if the applicant is not able to find a recycler for its
beverage containers. The applicant must detail efforts made to comply with the recycling
requirement, and specify any impediments to the implementation of a recycling plan. If the
application is certified by the Division of Pollution Prevention and Environmental Assistance of the
Department of Environment and Natural Resources, the applicant will not be required to comply
with the recycling requirement during the one-year period for which certification is granted.
This act became effective June 15, 2009, and applies retroactively to applications for
permits and for renewal of permits submitted to the ABC Commission on or after January 1,
2009. (BC)
Alcoholic Beverage Control Rules/Private Clubs
S.L. 2009-381 (HB 1228) amends the law regarding the authority of the Alcoholic
Beverage Control (ABC) Commission to adopt rules concerning private clubs, by deleting the
specific grant of authority to adopt a rule requiring that a private club have a waiting period for
membership. The act requires the ABC Commission to keep a record of violations and
noncompliance with Commission rules for ABC establishments operating as private clubs and to
report its findings to the Joint Legislative Corrections, Crime Control, and Juvenile Justice
Oversight Committee prior to the convening of the 2011 Regular Session of the General
Assembly.
This act became effective July 31, 2009. (BC)
Chapter 2 Alcoholic Beverage Control
Page 12
Malt Beverage Special Permit
S.L. 2009-377 (HB 1595) authorizes the Alcoholic Beverage Control (ABC) Commission to
issue a malt beverage tasting permit that allows malt beverage tastings at grocery stores and
other food businesses, and specifies conditions for the malt beverage tastings. A malt beverage
tasting is defined as the offering of a sample of one or more malt beverage products, without
charge and in amounts of no more than two ounces for each sample, to customers of the
business.
The act also authorizes the issuance of a malt beverage special event permit to the
holder of a brewery permit, malt beverage importer permit, or nonresident malt beverage vendor
permit, allowing the permittee to give free samples and to sell its products at trade shows,
conventions, shopping malls, various festivals and other similar events approved by the ABC
Commission. The permit is valid only in jurisdictions that have approved the sale of malt
beverages.
This act became effective October 1, 2009. (BC)
2009 Viticulture/Enology Act
S.L. 2009-539 (HB 667) creates an exemption from the Alcoholic Beverage Control laws
for accredited community colleges, colleges, and universities for the purpose of conducting
research in connection with teaching or extension programs.
The act amends the law concerning the issuance of an off-premises unfortified wine
permit, to allow a school that holds a viticulture/enology authorization to obtain an off-premises
unfortified wine permit and sell wines manufactured as part of its program. The wines may be
sold at one non-campus location in a county where the permittee offers classes on a regular
basis in a facility owned by the permittee. The act also authorizes the issuance of the permit to a
winery or wine producer to sell its own unfortified wine during hours when the winery or wine
producer is open to the public, subject to any local ordinance that might apply. The permit also
would allow a winery to sell its wine at one additional location in the county under the same
conditions specified for the sale of wine at the winery.
The act amends the definition of a "sports club" to include an establishment that
provides equine boarding, training, and coaching, and that also offers on-site dining, lodging, and
meeting facilities and hosts horse trials and other events sanctioned by the United States
Equestrian Federation, Inc. Sports clubs may obtain on and off-premises permits, including
mixed beverages, without approval at an election. An exception applies in certain localities that
have voted against the sale of mixed beverages.
This act became effective August 28, 2009. (BC)
Chapter 3 Children and Families
Page 13
Chapter 3
Children and Families
Drupti Chauhan (DC), Shirley Iorio (SI), Susan Sitze (SS), and Wendy Graf Ray (WGR)
Enacted Legislation
Establish Domestic Violence Fatality Review
Team/Mecklenburg County
S.L. 2009-52 (SB 381) authorizes Mecklenburg County to establish a multidisciplinary
Domestic Violence Fatality Prevention and Protection Review Team. The Team's purpose is to
identify and review domestic violence-related deaths, and facilitate communication among the
various agencies and organizations involved in domestic violence cases, with the goal of
preventing future fatalities. The act defines what would be considered a domestic violence
fatality, and lists the designated positions for membership on the Review Team, which would be
lead by Community Support Services of Charlotte.
The Review Team must issue an interim report to the local board of county
commissioners, the North Carolina Domestic Violence Commission, and the Governor's Crime
Commission, summarizing its findings and activities, by June 15, 2011. A final report with
recommendations is due by June 15, 2014.
This act became effective June 1, 2009. (SS)
Study Existing Children/Youth Programs
S.L. 2009-126 (HB 659) requires the Joint Legislative Program Evaluation Oversight
Committee to include in the Program Evaluation Division's 2009-2010 Work Plan a study of
existing programs that directly or indirectly benefit children and youth in North Carolina. The
study must include (i) identification of the programs and their sources of funding, and (ii)
determination of whether the programs have clear goals, indicators, or benchmarks by which to
measure the programs' success.
The Program Evaluation Division must submit its findings and any recommendations to
the Joint Legislative Program Evaluation Oversight Committee, the Joint Legislative Study
Commission on Children and Youth, and the Fiscal Research Division of the General Assembly on
a date to be determined by the Joint Legislative Program Evaluation Oversight Committee.
This act became effective June 19, 2009. (SI)
Clarify Consecutive Terms - Aging & Child Commissions
S.L. 2009-142, Sec. 2 (HB 358, Sec. 2) clarifies the number of consecutive terms that a
member of the Legislative Study Commission on Children and Youth may serve by specifying that
members may be appointed to a maximum of three consecutive terms.
This section became effective June 19, 2009. (WGR)
Amend Adoption Laws
S.L. 2009-185 (HB 1106) amends and clarifies various statutory provisions pertaining to
adoption.
The act amends the law governing adoption preplacement assessments and reports to
the court to:
Chapter 3 Children and Families
Page 14
􀂾􋹐 Provide that a preplacement assessment prepared in another state that does not
meet all of the requirements of this State may be updated by a person or entity
authorized to gather the necessary information pursuant to the laws of the state
where the prospective adoptive parents reside.
􀂾􋹐 Provide that an order for a report to the court may be sent to a person or entity
authorized under the laws of the petitioner's state of residence to prepare home
assessments for adoption proceedings.
􀂾􋹃 Clarify that if the petitioner moves to a different state before the agency completes
the report, the agency must request a report pursuant to the Interstate Compact on
the Placement of Children from a person or entity authorized to prepare home
assessments for the purpose of adoption proceedings under the laws of the
petitioner's new state of residence.
The act also makes the following changes with regard to adoptions:
􀂾􋹁 Amends the law governing who may file a petition for adoption to clarify that it
applies to minor children, and to provide that a man and a women who jointly
readopt a minor child in a foreign country while married to each other must readopt
jointly in this State, regardless of whether they have since divorced. If either does
not join in the petition to readopt, he or she must be joined as a necessary party.
􀂾􋹁 Amends the law governing notice of adoption proceedings to provide that issuance of
a summons is not required to commence an adoption proceeding.
􀂾􋹁 Amends the law governing reports that must be made to the court to assist the court
in determining whether the proposed adoption is in the minor's best interests. In
any adoption of a minor by the minor's grandparent, in which the minor has lived
with the grandparent for at least the two consecutive years immediately preceding
the filing of the petition, the court may order a report. The court is not required to
order a report unless the minor's consent is to be waived, the minor has revoked a
consent, or the minor is eligible for adoption assistance payments.
􀂾􋹃 Clarifies the law governing the seven-day period for revocation of consent for
adoption to provide that if the final day of the revocation period falls on a Saturday,
Sunday, or a legal holiday when North Carolina courthouses are closed for
transactions, then the revocation period extends to the next business day.
􀂾􋹁 Amends the law concerning revocation of relinquishment of a child to clarify that a
relinquishment is executed by the infant or minor's parent or guardian. If the final
day of the seven-day period when a relinquishment may be revoked falls on a
Saturday, Sunday, or a legal holiday when North Carolina courthouses are closed for
transactions, then the period when a relinquishment may be revoked extends to the
next business day.
This act became effective June 18, 2009. (DC)
Child Care Facilities Rules
S.L. 2009-187 (HB 1046). See Health and Human Services.
Clarify Action for Divorce/Incompetent Spouse
S.L. 2009-224 (HB 1091) allows any of the following to commence, defend, maintain,
arbitrate, mediate, or settle any action authorized by Chapter 50 of the General Statutes (Divorce
and Alimony) on behalf of an incompetent spouse:
􀂾���� A duly appointed attorney-in-fact who has the power to sue and defend civil actions
on behalf of the incompetent spouse and who has been appointed pursuant to a
durable power of attorney under Chapter 32A (Powers of Attorney) of the General
Statutes.
Chapter 3 Children and Families
Page 15
􀂾􋹁 A guardian appointed in accordance with Chapter 35A of the General Statutes
(Incompetency and Guardianship).
􀂾􋹁 A guardian ad litem appointed in accordance with G.S. 1A-1, Rules 17 and 25(b) of
the Rules of Civil Procedure.
The act clarifies that only a competent spouse can commence an action for absolute
divorce.
This act became effective June 30, 2009. (DC)
Amend Birth Registration Requirements
S.L. 2009-285 (HB 1112) amends the law governing birth registration to allow a child's
putative father to be entered on the birth certificate under certain circumstances. Generally, if a
mother is married at the time of either conception or birth, or between conception and birth, the
name of the mother's husband must be entered on the birth certificate as the father. An
exception is made, however, if a court has determined paternity in someone other than the
mother's husband. In this case, the name of the father, as determined by the court, will be
entered on the birth certificate.
This act creates a new exception to the requirement that the husband's name be entered
on the birth certificate. The act provides that the name of the putative father will be entered on
the birth certificate if the mother, mother's husband, and putative father complete an affidavit
acknowledging paternity that contains all of the following:
􀂾􋹁 A sworn statement by the mother consenting to and declaring that the putative
father is the child's natural father.
􀂾􋹁 A sworn statement by the putative father declaring that he believes he is the natural
father.
􀂾􋹁 A sworn statement by the husband consenting to the assertion of paternity by the
putative father.
􀂾􋹉 Information explaining the effect of signing the affidavit, including a statement of
parental rights and responsibilities and acknowledging receipt of the information.
􀂾􋹔 The social security numbers of all of the parties.
􀂾􋹔 The results of a DNA test that has confirmed the paternity of the putative father.
The act also requires an unmarried mother to include in an affidavit acknowledging the
paternity of the father a statement that she was unmarried at all times from conception through
birth.
This act became effective July 10, 2009, and applies to birth certificates of children born
on or after that date. (WGR)
Virtual Visitation/Family Law
S.L. 2009-314 (HB 1299) amends the laws pertaining to custody of a minor child by
authorizing the court to provide for visitation rights by electronic communication. Electronic
communication is defined as contact other than face-to-face contact, facilitated by electronic
means including telephone, e-mail, instant messaging, video teleconferencing, wired or wireless
Internet technologies, or other mediums. In granting this type of visitation, the court must
consider the following:
􀂾􋹗 Whether electronic communication is in the best interest of the child.
􀂾􋹗 Whether the necessary equipment is available and affordable to the parents of the
child.
􀂾􋹁 Any other appropriate factors.
The act authorizes the court to set guidelines, including hours in which the
communication is made, allocation of costs between the parents, and the furnishing of access
information between the parents. The communication may be subject to supervision as ordered
Chapter 3 Children and Families
Page 16
by the court. Electronic communication may be used to supplement regular visitation, but may
not be used as a replacement for custody or visitation, or to justify relocation by a custodial
parent out of the area. Electronic communication also cannot be a factor in calculating child
support.
This act became effective July 17, 2009. (WGR)
Increase Child Support Collections
S.L. 2009-335 (SB 817) provides that a person who commits criminal contempt by failing
to comply with an order to pay child support is subject to censure, imprisonment up to 30 days, a
fine of not more than $500.00, or any combination thereof.
The act also provides that a sentence of imprisonment for up to 120 days may be
imposed for a single act of criminal contempt resulting from the failure to pay child support.
However, the sentence would be suspended upon conditions reasonably related to the
contemnor's payment of child support.
This act became effective December 1, 2009, and applies to offenses committed on or
after that date. (DC)
Joint Domestic Violence Committee/Recommendations
S.L. 2009-342 (HB 115) makes the following changes to the laws related to domestic
violence:
􀂾􋹒 Revises the membership and staffing of the North Carolina Domestic Violence
Commission.
􀂾􋹐 Provides the procedure for a summons relating to a domestic violence protective
order. This procedure is now identical to that currently required to obtain a civil no-contact
order.
􀂾􋹃 Clarifies the procedure for a summons relating to a civil no-contact order. Only a
single summons is issued.
���􋹃 Clarifies that the term "valid protective order" includes, for the purposes of
enforcement of orders, an emergency or ex parte order.
􀂾􋹐 Provides that a sentence is enhanced if a person commits an offense while under a
protective order, and clarifies that an emergency or ex parte order is a valid
protective order for the purposes of this section.
The Administrative Office of the Courts, in consultation with the Governor's Crime
Commission and the North Carolina Attorney General's Office, must determine the financial and
operational impact of developing an automated statewide domestic violence protective order
notification system and report their findings to the Joint Legislative Committee on Domestic
Violence and the Fiscal Research Division of the General Assembly by February 1, 2010.
In addition, the North Carolina Domestic Violence Commission, in consultation with the
North Carolina Coalition Against Domestic Violence and the North Carolina Coalition Against
Sexual Assault must study the issue of State oversight and coordination of services to victims of
sexual violence and whether sexual violence should be included as a focus area of the
Commission. The Commission must report its findings and recommendations to the Joint
Legislative Committee on Domestic Violence by February 1, 2010.
The provisions of this act pertaining to the procedure for a summons relating to a
domestic violence protective order or a civil no-contact order became effective for actions or
motions filed on or after December 1, 2009. The remainder of the act became effective July 24,
2009. (SI)
Chapter 3 Children and Families
Page 17
Clarify Domestic Violence Laws/Arrest/Valid Protective
Order
S.L. 2009-389 (HB 1464) clarifies that despite the holding of the North Carolina Court of
Appeals in Cockerham-Ellerbee v. The Town of Jonesville (176 N.C. App. 372, 626 S.E.2d 685
(2006)), the intent of the General Assembly is that G.S. 50B-4.1(b) creates a mandatory provision
requiring a law enforcement officer to arrest and take a person into custody without a warrant or
other process if the officer has probable cause to believe the person has knowingly violated a
domestic violence protective order. The act also clarifies that the arrest may occur with a
warrant, as well as without a warrant.
This act became effective July 31, 2009. (SS)
Clarify/Alienation of Affection/Criminal Conversation
S.L. 2009-400 (HB 1110). See Civil Law and Procedure and Criminal Law and
Procedure.
Amend Purpose/Child Placing/Child Care Laws
S.L. 2009-408 (SB 969) amends the policy statement for North Carolina laws governing
child placing and child care, and directs the Division of Social Services of the Department of
Health and Human Services to revise its rules to reflect the revised policy statement. The
Department of Health and Human Services is the agency responsible for investigating and
licensing persons who provide foster care for children or receive and place children in residential
group care, family foster homes, or adoptive homes. The statutes include a statement that it is
the policy of the State to strengthen and preserve the family as a unit, and that when a child
requires care outside the family unit, it is the duty of the State to assure that the quality of
substitute care is as close as possible to the care and nurturing that society expects of a family.
This act amends the policy statement to note the high priority of protecting children's welfare,
and to note that residential care facilities can satisfy the standard of protecting a child's welfare,
regardless of the child's age, particularly when sibling groups can be kept intact.
This act became effective August 5, 2009. (WGR)
Strengthen Domestic Violence Protective Orders/Pets
S.L. 2009-425 (SB 1062) authorizes a court issuing a domestic violence protective order
to:
􀂾􋹐 Provide for the care, custody, and control of any animal owned, possessed, kept, or
held as a pet by either party or by a minor child residing in the household.
􀂾􋹄 Direct a party to refrain from the cruel treatment or abuse of an animal owned,
possessed, kept, or held as a pet by either party or by a minor child residing in the
household.
This act became effective August 5, 2009. (SS)
Increase Marriage License Fee
S.L. 2009-451, Sec. 20A.4 (SB 202, Sec. 20A.4) increases the fee for a marriage license
from $50 to $60. Prior to this increase, $20 of the marriage license fee went into the Domestic
Violence Center Fund. With the increase, now $30 of the fee goes to the Fund. The Fund is
used to make grants to centers for victims of domestic violence and to The North Carolina
Coalition Against Domestic Violence.
Chapter 3 Children and Families
Page 18
This section became effective September 1, 2009, and applies to licenses issued on or
after that date. (WGR)
North Carolina Partnership for Children, Inc., to Conduct
Audits of Local Partnerships
S.L. 2009-451, Sec. 20C.1 (SB 202, Sec. 20C.1) provides that local partnerships are
subject to audit and review as contracted for by the North Carolina Partnership. Prior to this act,
audits and reviews were conducted by the State Auditor. The North Carolina Partnership must
provide the State Auditor with copies of the audits.
This section became effective July 1, 2009. (WGR)
Chapter 4 Civil Law and Procedure
Page 19
Chapter 4
Civil Law and Procedure
Brad Krehely (BK), Erika Churchill (EC), Tim Hovis (TH)
Enacted Legislation
No Elected Official Recommendations/Certain Counties/
Notaries
S.L. 2009-227 (SB 268) removes for certain counties the requirement that applicants to
become notaries public have the recommendation of an elected public official. Notary applicants
do not have to obtain the recommendation if the county has more than 5,250 active notaries
public (was 15,000). According to the Secretary of State's Office, as of January 1, 2009, the
following counties have more than 5,250 active notaries public – Wake (15,651), Mecklenburg
(14,089), Guilford (7,256), and Forsyth (5,288).
This act became effective June 30, 2009. (BK)
File Lis Pendens for Certain Erosion Actions
S.L. 2009-269 (SB 586) permits the filing of a notice of lis pendens for an action seeking
injunctive relief regarding sedimentation and erosion control for any land disturbing activity
subject to the Sedimentation Pollution Control Act of 1973. For these purposes, "land disturbing
activity" is defined as "any use of the land by any person in residential, industrial, educational,
institutional or commercial development, highway and road construction and maintenance that
results in a change in the natural cover or topography and that may cause or contribute to
sedimentation." A notice of lis pendens is a notice filed for the purpose of warning all persons
that the title to certain property is in litigation and a purchaser is in danger of being bound by an
adverse judgment. Currently, in North Carolina, a notice of lis pendens also may be filed in the
following actions:
􀂾􋹁 Actions affecting title to real property.
􀂾��� Actions to foreclose any mortgage or deed of trust or to enforce any lien on real
property.
􀂾􋹁 Actions in which any order of attachment is issued and real property is attached.
This act became effective October 1, 2009. (EC)
Rewrite Foreign Money Judgments Laws
S.L. 2009-325 (SB 285) rewrites the law concerning the recognition of foreign money
judgments, as recommended by the General Statutes Commission. It requires state courts to
recognize foreign-country judgments to the extent that the judgment (1) grants or denies
recovery of a sum of money and (2) is final, conclusive, and enforceable under the law of the
foreign country rendering judgment. The act does not apply to a foreign-country judgment for
any of the following:
􀂾􋸠 Taxes.
􀂾􋸠 A fine or other penalty.
􀂾􋸠 Alimony, support, or maintenance in matrimonial or family matters.
It creates definitions for "foreign country" and "foreign-country judgment" and clarifies
that the law does not apply to recognition of sister-state judgments. The act sets forth the
procedure for recognition and nonrecognition of a judgment. It provides that if a judgment is
Chapter 4 Civil Law and Procedure
Page 20
recognized under the procedure, then to the extent the foreign country judgment grants or
denies the recovery of money, a recognized judgment is (1) conclusive between the parties to
the same extent the judgment of a sister state is entitled to full faith and credit and (2)
enforceable in the same manner and to the same extent as a judgment rendered in this State.
The act sets a statute of limitations for an action to recognize the judgment at 10 years from the
date the foreign-country judgment became effective in the foreign country.
This act became effective October 1, 2009, and applies to all actions commenced on or
after that date in which the issue of recognition of a foreign country judgment is raised. (BK)
Certain Notarial Acts Validated
S.L. 2009-358 (HB 559) validates any acknowledgement and any instrument notarized by
a person who failed to take the oath as a notary public again after recommissioning. It provides
that the acknowledgement and instrument have the same legal effect as if the person qualified
as a notary public at the time the person performed the act. The act applies to notarial acts
performed on or after May 15, 2004, and before July 8, 2009.
This act became effective July 27, 2009. (BK)
Clarify/Alienation of Affection/Criminal Conversation
S.L. 2009-400 (HB 1110) amends two common law causes of action in tort. A common
law cause of action for alienation of affection is recognized in North Carolina. The action is
comprised of wrongful acts which deprive a married person of the affections of his or her spouse,
including love, society, companionship, and comfort. To sustain a common law cause of action
for alienation of affection, a plaintiff must show all of the following:
􀂾􋹔 That the plaintiff and the plaintiff's spouse were happily married and that a genuine
love and affection existed between them.
􀂾􋹔 That the love and affection so existing was alienated and destroyed.
􀂾􋹔 That the wrongful and malicious acts of the defendant produced and brought about
the loss and alienation of such love and affection.
A common law action for criminal conversation also is recognized in North Carolina.
Criminal conversation is synonymous with adultery. To sustain a cause of action for criminal
conversation, a plaintiff must show all of the following:
􀂾􋹔 The actual marriage between the spouses.
􀂾��� Sexual intercourse between defendant and plaintiff's spouse during coverture.
The act provides the following with respect to the torts of alienation of affection and
criminal conversation:
􀂾􋹔 The claim cannot arise from acts of a person that occur after the plaintiff and
plaintiff's spouse physically separate with the intent that the separation be
permanent.
􀂾􋹔 The action cannot be commenced more than three years from the last act of the
defendant giving rise to the cause of action.
􀂾􋹔 The cause of action may be commenced only against a natural person.
This act became effective October 1, 2009. (EC)
Statute of Repose/Products Liability
S.L. 2009-420 (SB 882) addresses statutes of repose and statutes of limitations in
products liability actions. A statute of repose is a statute barring any suit that is brought after a
specified time since the defendant acted (such as by designing or manufacturing a product),
even if this period ends before the plaintiff has suffered a resulting injury. A statute of limitations
is a law that bars claims after a specified period, specifically a statute establishing a time limit for
Chapter 4 Civil Law and Procedure
Page 21
suing in a civil case based on the date when the claim accrued (such as when the injury occurred
or was discovered).
Prior to the act, in North Carolina, the statute of repose for products liability prohibited
actions for recovery of damages for personal injury, death, or damage to property based upon or
arising out of any alleged defect or any failure in relation to a product brought more than six
years after the date of initial purchase for use or consumption. The act repeals the prior law and
creates a new 12-year statute of repose for products liability (no recovery if the action is brought
more than 12 years after the date of initial purchase for use or consumption).
This act became effective October 1, 2009. (EC)
Qui Tam/Liability for False Claims
S.L. 2009-554, Sec. 1 (HB 1135, Sec. 1) adds a new Article to allow the recovery of
treble damages and impose civil penalties for obtaining money by submitting or assisting in the
submission of false or fraudulent claims to the State. In addition to an action brought by the
Attorney General, the act also authorizes a private person, known as a qui tam plaintiff, to file an
action on behalf of the State and to share in the proceeds of the action under certain
circumstances.
The federal Deficit Reduction Act of 2005 (DRA) allows states certified by the Inspector
General as enacting a false claims act as effective as the federal False Claims Act to retain an
additional 10% of the federal share of Medicaid recoveries. S.L. 2009-554 has been submitted
by the North Carolina Attorney General's Office to the Inspector General for this certification.
The act includes the following provisions:
􀂾􋹃 Creates a civil remedy against persons who knowingly cause or conspire to cause the
payment or approval for payment of a false or fraudulent claim by the State.
Violators are liable for treble damages, plus the costs of both the action and the
Attorney General's investigation, and a civil penalty of not less than $5,000 or more
than $11,000 for each violation.
􀂾􋹁 Authorizes a private person to bring a civil action in the name of the State and of the
individual who is known as the qui tam plaintiff. The complaint must be served on
the Attorney General who may elect to intervene in the case. The complaint is kept
under seal for 120 days and may not be served on the defendant until the court
orders that it be served. The Attorney General also has an independent duty to
investigate potential violations and may bring an action under the section.
􀂾􋹁 Authorizes the State to limit the participation of a qui tam plaintiff, if the State
proceeds with the action. If the action is successful, the qui tam plaintiff may
receive at least 15%, but not more than 25%, of the proceeds of the action,
depending upon the extent to which the qui tam plaintiff substantially contributed to
the prosecution of the action. If the action was based primarily on disclosures of
specific information from specified sources (civil or criminal hearings, governmental
reports or hearings, or the news media) other than the qui tam plaintiff, the qui tam
plaintiff can receive no more than 10% of the proceeds. If the State does not
proceed with the action, and the action is successful, the plaintiff may be awarded
between 25% and 30% of the proceeds. If the qui tam plaintiff proceeds with an
action and it is unsuccessful, the defendant may be awarded attorneys' fees and
expenses if the court finds that the case was frivolous or that the plaintiff's purpose
was harassment.
􀂾􋹂 Bars certain actions, including those based on public disclosure of information in a
criminal, civil, or administrative hearing, or a legislative, General Accounting Office,
or State Auditor report or investigation, or the news media, unless the action is
brought by the Attorney General or by the person who was the "original source" of
the information.
Chapter 4 Civil Law and Procedure
Page 22
􀂾􋹁 Authorizes the Attorney General to issue civil investigative demands for the
production of documents or other objects relevant to an investigation.
􀂾􋹅 Establishes the procedure for false claim actions.
􀂾􋹒 Requires the Attorney General to report annually on qui tam cases to the Joint
Legislative Commission on Governmental Operations and the Chairs of the
Appropriations Subcommittees on Justice and Public Safety.
Section 1 became effective January 1, 2010, and applies to acts committed on or after
that date. A civil action may be filed after January 1, 2010, based on acts committed prior to
that date if the activity also would be covered under statutes dealing with Medicaid fraud.
Sections 2 and 3 of the act make changes to the law governing Medicaid fraud. For
additional information on these sections, see Health and Human Services. (TH)
Major Pending Legislation
Uniform Apportionment of Tort Responsibility
HB 813 would enact the Uniform Apportionment of Tort Responsibility Act. The bill
would override the common law doctrine of contributory negligence currently applicable in the
State in favor of comparative negligence. The doctrine of contributory negligence prevents a
plaintiff from recovering anything in a tort action if the plaintiff's own negligence contributed to
his or her injuries. Comparative negligence evaluates the relative degree of fault attributed to
both the defendant and the plaintiff in a negligence suit and reduces or apportions the damages
to be borne by all the parties, including the claimant, accordingly. North Carolina is one of only
five jurisdictions that retain the doctrine of contributory negligence.
Under "pure" comparative negligence, liability is apportioned among all parties found to
be responsible for causing the damages giving rise to the action, including the claimant,
according to the percentage of responsibility assigned to each. Under the "modified"
comparative negligence approach taken by HB 813, recovery is barred if the total responsibility
assigned to the claimant is 50% or more of the total. Otherwise, the recovery is reduced by the
percentage of responsibility assigned to the claimant.
Except for specific circumstances, the bill also would replace the current rule of "joint and
several" liability with the concept of "several" liability. The rule of "joint and several" liability
currently enforced in the State provides that, where multiple defendants are liable for damages,
the plaintiff may recover the entire judgment from any one of the defendants or from any and all
of the defendants in various amounts. "Several" liability, as referenced in the bill, means a
defendant may be liable with other defendants, but his or her liability is limited to the amount for
which he or she is deemed responsible and is not pro rata.
HB 813 passed the House of Representatives and is pending in the Senate Judiciary I
Committee. (TH)
Chapter 5 Commercial Law and Consumer Protection
Page 23
Chapter 5
Commercial Law and Consumer Protection
Drupti Chauhan (DC), Karen Cochrane-Brown (KCB), Heather Fennell (HF), Brad Krehely (BK),
Tim Hovis (TH), Jeff Hudson (JH), William Patterson (WP)
Enacted Legislation
Continuing Crossbow Permit/Dealers and Manufacturers
S.L. 2009-6 (SB 5) provides that a permit for the purchase or receipt of crossbows is
deemed to be a continuing permit with no expiration date if the permit is issued to a corporation
that is a manufacturer, wholesale dealer, or retail dealer of crossbows. The permit, which must
contain an identification number, applies to all subsequent purchases or receipts of crossbows by
the corporation. The holder of a continuing permit may receive crossbow deliveries in the course
of business without displaying the permit to the person delivering the crossbows.
The act relieves manufacturers of crossbows from the obligation of keeping records of its
sales. Wholesale dealers of crossbows are also exempt from keeping records of sales to other
wholesale dealers or to retail dealers of crossbows. Retail dealers of crossbows are still required
to keep records of sales.
This act became effective March 19, 2009. (DC)
Amend Banking Laws
S.L. 2009-28 (SB 668) amends the Banking Law to allow State chartered banks
participating in the Capital Purchase Program to declare and pay dividends on preferred shares
issued to the U.S. Treasury in connection with the Program. As part of the federal Troubled
Asset Relief Program (TARP), the U.S. Treasury established a voluntary Capital Purchase Program
to encourage financial institutions to build capital in order to increase the flow of financing to
businesses and consumers.
In addition, with the prior approval of the Commissioner of Banks, a bank may issue and
pay dividends on preferred shares in order to recapitalize itself.
This act became effective May 20, 2009. (KCB)
Banking Commission Appeals
S.L. 2009-57 (SB 669) amends the general provisions governing appeals to the Banking
Commission. The act clarifies that the notice of appeal must state the grounds for the appeal
and set forth in numbered order the assignments of error for review. Failure to state the
grounds as well as failure to comply with the Commission's briefing schedule is a basis for
dismissal of the appeal. Once the Commission makes a final decision, a party may petition for
judicial review to Wake County Superior Court in accordance with Article 4 of Chapter 150B of the
General Statutes. The act makes it clear that a party may appeal a decision of the Commissioner
to the Banking Commission and may petition for judicial review of a final decision of the
Commission.
The act also conforms other laws under the jurisdiction of the Banking Commission to the
appeals provisions set forth in Section 1 of the act.
This act became effective June 5, 2009. (KCB)
Chapter 5 Commercial Law and Consumer Protection
Page 24
Modernize Do Not Call Notice Procedures
S.L. 2009-122 (HB 686) authorizes local telephone companies to use bill messages, direct
mail, or e-mail (when affirmatively selected by the customer), in addition to bill inserts, to
provide the required notification to their residential telephone subscribers of the opportunity to
object to receiving telephone solicitations through the federal "Do Not Call' registry and other
State law provisions. The act also requires the Attorney General, in consultation with the staff of
the Public Utilities Commission, to draft the contents of the bill inserts, bill messages, direct mail,
and e-mail messages authorized to be used in making the required notifications.
This act became effective October 1, 2009. (DC)
Amend Law Governing Business Trusts
S.L. 2009-174 (HB 615) makes the following changes to the law governing business
trusts:
􀂾􋹁 Amends the statutory definition of "business trust" to specifically include Illinois land
trusts and Delaware statutory trusts.
􀂾􋹒 Repeals the requirement that an instrument conveying real property held by the
business trust be attested or countersigned and sealed.
􀂾􋹐 Provides that the memorandum of the declaration of trust required to be filed in the
county in which the land is located may contain a designation of trustees and
authorized officers and their authority in real property matters.
􀂾􋹐 Provides that the conveyance of certain interests in real property by an officer of the
business trust is authorized if the conveyance has an attached resolution of the
Board of Trustees authorizing the officer to execute, sign, seal, and deliver deeds,
conveyances, or other instruments.
􀂾􋹐 Provides that a signed resolution is not required in the case of an instrument signed
by a trustee, president, vice president, or assistant vice president.
􀂾􋹐 Provides that as long as there is nothing in the trust agreement or provision in the
memorandum or declaration of trust providing otherwise, if the instrument registered
at the register of deeds office appears on its face to have been signed in the ordinary
course of business by a trustee, president, vice president, or assistant vice president
on behalf of the business trust, the instrument is valid with respect to the rights of
innocent third parties for value.
􀂾􋹐 Provides that the power of a representative of the business trust to bind the trust
pursuant to express or implied authority or other means is not prohibited.
􀂾􋹐 Provides that a trustee or other officer of a business trust is not relieved from liability
incurred through a violation of their actual authority.
This act became effective October 1, 2009, and applies to all instruments recorded on or
after that date. (JH)
Amend Future Advances Statutes
S.L. 2009-197 (HB 1368) amends the future advances statutes to distinguish between a
future advance and a future obligation and makes various other changes. The act does all of the
following:
􀂾􋹄 Defines an "advance" as "a disbursement of funds or other action that increases the
outstanding principal balance owing on an obligation for the payment of money."
􀂾􋹒 Rewrites the statute which sets out the requirements for priority of a security
instrument.
Chapter 5 Commercial Law and Consumer Protection
Page 25
􀂾􋹅 Extends the period within which future advances may be made and future obligations
incurred under a security instrument from 15 to 30 years beyond the date of the
security instrument.
􀂾􋹃 Clarifies that further advances and additional obligations may be made under a
security instrument within the specified time period and will be secured to the same
extent as original advances and obligations under the security instrument. However,
if at any time the outstanding principal balance exceeds the maximum principal
amount that may be secured by the security instrument at one time, the excess will
not be secured by the security instrument.
􀂾􋹐 Provides a security instrument has the same priority to the extent of future
obligations and future advances secured by it, as if the advances and obligations had
been made or incurred at the time the instrument was registered (not the date it was
executed).
This act became effective October 1, 2009, and applies to all security instruments,
whether registered before, after, or on the effective date of this act. (BK)
No Deceptive Advertising/Business Location
S.L. 2009-199 (SB 625) amends G.S. 75-42, Deceptive representation of geographical
location in telephone directory, print advertisement, or on the Internet, to provide that it is a
misrepresentation if "any other part" of a telephone directory, directory assistance, Internet
listing, or print advertisement for a supplier of perishable products incorrectly indicates that it is
located in a geographical area when in fact it is not located in that area. As enacted in the 2007
Session, the statute applied only if the "name of the business" indicated that it was located in a
geographical area and it was not.
This act became effective October 1, 2009. (TH)
Prevent the Theft of Scrap Metals
S.L. 2009-200 (HB 323) increases the requirements of secondary metals recyclers
regarding regulated metal property. Recyclers must issue a receipt to individuals who deliver
regulated metals for recycling. Receipts for catalytic converters and central air conditioner
evaporator coils or condensers must bear the fingerprint of the individual who delivered the item
for recycling. Law enforcement officers may request electronic transfer of secondary metals
recycler receipts. Recyclers may not purchase catalytic converters not attached to vehicles and
central air conditioner evaporator coils or condensers, except from companies that are in the
business of replacing the items. Purchases for more than $100 must be paid by check or money
order, and a photograph of the individual selling the items must be maintained by the recycler for
90 days.
The act also prohibits secondary metals recyclers from purchasing any of the following:
􀂾􋹁 Any metal with an identification mark or name of a utility, railroad company, brewer,
or government entity.
􀂾􋹕 Utility access covers, street light poles, guard rails, street signs, water meter covers,
traffic signals and signs, historical or grave markers, or metal beer kegs.
The prohibitions in this act do not apply to purchases of beverage containers, or of
regulated metals or metals from an entity that generates or sells the regulated property in the
ordinary course of business.
This act became effective October 1, 2009. (HF)
Chapter 5 Commercial Law and Consumer Protection
Page 26
Self-Service Storage Facilities
S.L. 2009-201 (SB 448) amends the laws regulating liens on personal property in self-service
storage facilities. The act does all of the following:
􀂾􋹒 Requires the owner of a self-storage facility to conduct an online search for Uniform
Commercial Code filings with the Secretary of State in the name of the occupant.
The purpose is to identify an existing security interest in the stored property.
􀂾􋹁 Authorizes the towing of a motor vehicle upon which a lien is claimed when the debt
remains unpaid for 60 days. The lienor is not liable for any damages to the motor
vehicle once the tower takes possession of the property.
􀂾􋹃 Changes the service of the notice requirement when a motor vehicle is not involved
from registered or certified mail, return receipt requested, to regular first-class mail.
􀂾􋹃 Changes the start date of the ten-day period to contest from receipt by the occupant
to the date of mailing.
􀂾􋹁 Authorizes the owner to terminate the tenancy of the occupant at the expiration of
the ten-day period. The lienor also may move the occupant's property to another
place of safekeeping.
􀂾􋹍 Modifies the publication requirement by eliminating the requirement that the notice
be posted at the courthouse.
􀂾􋹐 Provides that the partial payment of rent or other charges will not satisfy the lien or
delay the owner's right to sell the occupant's property unless the owner agrees in
writing.
􀂾􋹐 Provides that unless the rental agreement provides otherwise, the care, custody, and
control of the property stored at a self-service storage facility remains vested in the
occupant until the property is sold.
􀂾􋹐 Provides that unless the rental agreement provides otherwise, the owner is liable for
damage caused by the intentional acts or negligence of the owner or the owner's
employees.
This act became effective October 1, 2009. (BK)
Prohibit Sale of Novelty Lighters
S.L. 2009-230 (SB 652) prohibits the retail sale, offer to sell, or distribution for retail sale
of novelty lighters. A novelty lighter is defined as a mechanical or electrical device typically used
for lighting cigarettes, cigars, or pipes, that is designed to resemble a cartoon character, toy,
gun, watch, musical instrument, vehicle, animal, food or beverage, or similar articles, or that
plays musical notes. The prohibition would not apply to transporting novelty lighters through the
State or storing novelty lighters in a warehouse or distribution center in this State that is closed
to the public for the purpose of retail sales.
The act excludes the following: (1) Lighters manufactured prior to January 1, 1980; (2)
mechanical or electrical devices primarily used to ignite fuel for fireplaces, or charcoal or gas
grills; and (3) standard disposable or refillable lighters that are printed or decorated with logos,
labels, decals or artwork, or heat shrinkable sleeves, but which do not otherwise resemble a
novelty lighter.
A person who violates the prohibition commits an infraction and is subject to a penalty of
$500 for each violation. The clear proceeds of any penalty would be remitted to the county
school fund. A first offense during the first year the act is in force would not be subject to a
penalty.
This act became effective October 1, 2009, and applies to infractions committed on or
after that date. (TH)
Chapter 5 Commercial Law and Consumer Protection
Page 27
Modify North Carolina Limited Liability Company Act
S.L. 2009-247 (SB 412) makes the following technical and clarifying changes to the North
Carolina Limited Liability Company Act:
􀂾􋹅 Extends the authority to file documents with the Secretary of State's office which are
related to limited liability companies (LLCs) to the directors and executives of an LLC.
􀂾􋹃 Creates two new methods for persons to be admitted as members of an LLC:
• Designation or appointment as provided in the articles of organization or written
operating agreement or by an assignee of the last member after the LLC ceases
to have any members.
• Admission in connection with a conversion or merger of a business entity into an
LLC.
􀂾􋹃 Clarifies that for the purpose of determining when a distribution is restricted, those
amounts paid as reasonable compensation are not included in the calculation.
􀂾􋹐 Provides that an assignee of an interest in an LLC may become a member by one of
the following methods:
• By meeting the requirements in the LLC's articles of organization or operating
agreement.
• By the unanimous consent of the members if the articles of organization or
operating agreement do not provide otherwise.
• Under the laws providing for the dissolution of the LLC if the LLC ceases to have
members.
􀂾􋹒 Removes provisions that allowed for a personal representative or guardian of a
member to have the authority to exercise all of the member's rights for the purpose
of settling the estate or administering the member's property.
􀂾􋹁 Addresses the dissolution of the LLC when the LLC no longer has any members and
allows persons designated or admitted as members by the assignee of the last
member to become a member and thereby have the authority to manage the LLC.
􀂾􋹃 Clarifies that it is the intent of the General Assembly to give "maximum effect to the
principle of freedom of contract and to the enforceability of operating agreements".
This act became effective January 1, 2010. (DC)
Internet Ticket Protection Resale Sunset
S.L. 2009-255 (HB 309) removes the June 30, 2009, sunset on S.L. 2008-158 which
allowed admission tickets to be resold on the Internet at a price greater than the price printed on
the face of the tickets.
This act became effective July 6, 2009. (DC)
Truth in Music Advertising Act
S.L. 2009-284 (SB 634) makes it unlawful for any person to advertise or conduct a live
music performance or production through the use of a false, deceptive, or misleading affiliation,
connection, or association between a performing group and a recording group unless one or
more of the following apply:
􀂾􋹔 The performing group is the authorized registrant and owner of a federal service
mark for that group registered in the U.S. Patent and Trademark Office.
􀂾􋹁 At least one member of the performing group was a member of the recording group
and has a legal right by virtue of use or operation under the group name.
􀂾􋹔 The performance is identified in all advertising as a salute or tribute OR the
performance is not so closely related as to confuse or mislead the public.
Chapter 5 Commercial Law and Consumer Protection
Page 28
􀂾􋹔 The advertising does not relate to a live musical performance in this State.
􀂾􋹔 The performance is authorized expressly by the recording group.
A person who violates this act is liable for a civil penalty of not less than $5,000, but not
more than $15,000 per violation. Each performance is a separate violation. The penalty and
enforcement provisions are in addition to any other provisions for enforcement provided by law.
A violation is also an unfair and deceptive trade practice under G.S. 75-1.1, which allows for
treble damages in a private party action, and attorney fees if the defendant acted willfully.
This act became effective October 1, 2009. (HF)
Utilities/Collectors/Debt Collection
S.L. 2009-302 (HB 1330) prohibits a public utility, an electric membership corporation, a
telephone membership corporation, and a city or county that operates a public enterprise from
suspending or disconnecting service to an individual due to the debt of another person who
resides with the customer, unless one or more of the following apply:
􀂾􋹔 The customer and the other person were members of the same household at a
different location when the unpaid balance for service was incurred.
􀂾􋹔 The person was a member of the customer's current household at the time service
was established, and the person had an unpaid balance for service at that time.
􀂾􋹔 The person seeks to have his or her name placed on the customer's account.
The act also prohibits a public utility, an electric membership corporation, a telephone
membership corporation, and a city or county that operates a public enterprise from requiring a
customer to assume the debt of another person who will reside in the customer's household in
order to continue service, unless one of the following apply:
􀂾􋹔 The customer and the other person were members of the same household at a
different location.
􀂾􋹔 The person was a member of the customer's current household at the time service
was established.
A public utility, an electric membership corporation, a telephone membership corporation,
and a city or county that operate a public enterprise are not prohibited from using any remedy to
collect a debt if a customer misrepresents his or her identity to receive service.
This act became effective July 17, 2009. (HF)
Revise North Carolina Ski Safety Statutes
S.L. 2009-353 (HB 334) requires persons participating in winter sports (defined as the
use of "skis, snowboards, snowshoes, or any other device for skiing, sliding, jumping, or traveling
on snow or ice") to keep a proper lookout to avoid obvious hazards and inherent risks, to stay
clear of pole lines and snowmaking equipment, to wear retention straps if on a snowboard, and,
if using freestyle terrain, to know their abilities to negotiate the terrain and avoid conditions and
obstacles beyond those limits that would have been revealed by a visible inspection of the
terrain.
The act also requires ski area operators to inspect and record the condition of winter
sports slopes, alpine and Nordic ski trails, and freestyle terrains that are open to the public, and
to post the general surface conditions for the entire ski area twice daily.
A violation of these duties by the skiers or ski operators constitutes negligence if it
proximately causes personal injury or property damage.
This act became effective October 1, 2009. (WP)
Chapter 5 Commercial Law and Consumer Protection
Page 29
Enhance Protections Against Identity Theft
S.L. 2009-355 (SB 1017) enhances protections against identity theft. The act makes the
following changes:
􀂾􋹁 Allows a consumer to request a security freeze on the consumer's credit report by
first-class mail, telephone call, or electronically by use of a secure Web site or secure
electronic mail connection.
􀂾􋹒 Requires that requests to place a security freeze be made effective within three
business days if the request is made in writing, or within 24 hours if the request is
made electronically or by phone. Except in specified circumstances, the act requires
that requests to lift a security freeze for a specified period of time or to a specified
party or to permanently lift a freeze be made effective within three business days if
the request is made in writing, or within 15 minutes if the request is made
electronically or by phone.
􀂾􋹐 Prohibits consumer reporting agencies from charging a fee in response to an
electronic request to place, remove, or lift a freeze. A consumer reporting agency
may charge a fee not to exceed $3 for placing a security freeze by telephone or mail,
or for providing a second or subsequent personal identification number.
􀂾􋹁 Allows a parent or guardian of a minor to make inquiries concerning the existence of
a credit report for the minor and requires the consumer reporting agency to make
reasonable efforts to prevent providing a credit report on the minor.
􀂾􋹒 Requires that any business that possesses personal identifying information of North
Carolina residents include in its notification to a person whose personal information is
breached the applicable toll-free numbers and addresses for the major consumer
reporting agencies, the Federal Trade Commission, and the North Carolina Attorney
General's Office. The business also must notify the Consumer Protection Division of
the Attorney General's Office of the nature of the breach, the number of consumers
affected by the breach, and other specified information.
􀂾􋹐 Permits registers of deeds and clerks of court to remove personal identification
information from their public Web sites without a request from a specific individual.
􀂾􋹁 Allows registers of deeds and clerks of court to utilize optical character recognition
technology to redact social security and drivers license numbers.
􀂾􋹒 Requires the Conference of Clerks of Superior Court to annually study and report to
the Joint Legislative Commission on Governmental Operations on whether the clerks
of superior court or the registers of deeds are implementing the act.
􀂾􋹁 Amends the Crime Victim's Compensation Act to protect the credit of crime victims
during the pendency of victims' compensation fund applications and appeals by
prohibiting a creditor from reporting certain debts to a consumer reporting agency as
long as the victim has notified the creditor of the pending compensation claim.
􀂾􋹅 Enacts the Credit Monitoring Services Act which requires a credit monitoring service
(a person who provides consumer credit monitoring for a fee) to notify a consumer
of his or her right to a free credit report before collecting a fee for credit monitoring
services. Failure to comply would constitute an unfair and deceptive trade practice.
This act became effective October 1, 2009. (BK)
Allow Recorded Phone Messages/Public Safety
S.L. 2009-364 (HB 1034) adds an exception to the law which generally prohibits
telephone calls made using automatic dialing and recorded message players. The new exception
permits calls made for the purpose of protecting the public health, safety, or welfare, by
informing the telephone subscriber of a safety recall applicable to a product purchased by the
Chapter 5 Commercial Law and Consumer Protection
Page 30
subscriber, a medication prescribed for the subscriber, or a filled prescription that the subscriber
has not picked up from a licensed pharmacy.
The act also provides that in order for a recorded phone message to qualify as an
exception, no part of the call may be used to make a telephone solicitation, and the person
making the call must identify his or her name, contact information, and nature of the call.
This act became effective July 27, 2009. (WP)
Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing
Act
S.L. 2009-374 (HB 1523) repeals the North Carolina Mortgage Lending Act and replaces it
with the Secure and Fair Enforcement Mortgage Licensing Act (S.A.F.E.) to conform to the
requirements of Title V, of the federal Housing and Economic Recovery Act of 2008. The federal
act requires that any residential mortgage loan originator must be State licensed or federally
registered. States had until August 1, 2009, to conform their statutes to the federal standards.
After that date, loan originators in states that do not have conforming licensing statutes will be
subject to the federal registration system.
The act establishes the North Carolina S.A.F.E. Mortgage Licensing Act, which includes
the following:
􀂾􋹌 License and registration requirements for mortgage loan originators, as well as
mortgage brokers, mortgage lenders, and mortgage servicers. Applications for
licensure must be made through the Nationwide Mortgage Licensing System and
Registry. Applicants must submit to a criminal history background check, a review of
credit reports, and provide information related to administrative, civil, or criminal
findings by any governmental jurisdiction. The act includes an exemption from the
licensing requirement for any person who, as the seller, makes no more than five
residential mortgage loans in a calendar year.
􀂾􋹌 License application fees of $1,250 for mortgage brokers, mortgage lenders, and
mortgage servicers, and $125 for mortgage loan originators. Each additional branch
office must pay a $125 filing fee. In addition, applicants must pay any processing
fees required by the Nationwide Mortgage Licensing System and Registry.
􀂾􋹌 Licenses must be renewed annually. The renewal fee for licensed mortgage brokers,
mortgage lenders, and mortgage servicers is $625, together with a $125 fee for each
branch office. The renewal fee for mortgage loan originators is $67.50. The late fee
for mortgage brokers, mortgage lenders, and mortgage servicers is $250, and for
mortgage loan originators is $100.
􀂾􋹌 Licensees must complete at least eight hours of continuing education, including State
and federal laws, ethics, and training related to lending standards for nontraditional
mortgage products.
􀂾􋹌 Loan originators must be covered by a surety bond through employment with a
licensee. A mortgage broker must post a minimum bond of $75,000. A mortgage
lender or servicer must post a minimum surety bond of $150,000. The amount of
the bond may increase based on the dollar amount in loans per year. The act also
contains minimum net worth requirements.
􀂾􋹉 Imposes specific duties on mortgage brokers which are intended to protect the
public. The Commissioner of Banks is given specific regulatory authority including
authority to discipline licensees and impose civil penalties.
􀂾􋹔 The Commissioner also retains the authority contained in the repealed law to
suspend a foreclosure proceeding when the Commissioner has evidence that a
material violation of the law has occurred.
􀂾􋹔 The Banking Commission has authority to review any action taken by the
Commissioner.
Chapter 5 Commercial Law and Consumer Protection
Page 31
The bill contains instructions for the transition of current licensees into the new system
over a period of time.
S.L. 2009-526, Sec. 1.1 (HB 191, Sec. 1.1) and S.L. 2009-550, Sec. 10.1 (HB 274, Sec.
10.1) each amend this act by adding a provision which clarifies that the Commissioner retains the
authority to bring and maintain any action or pursue any remedy that was available under the
repealed law for any violation of that law that occurred prior to the effective date of this act.
Except with regard to the transition provisions, this act became effective July 31, 2009,
and applies to all applications for licensure as a mortgage loan originator, mortgage lender,
mortgage broker, or mortgage servicer filed on or after that date. (KCB)
Revise Liquefied Petroleum Gas (LPG) Dealer Requirements
S.L. 2009-386 (HB 1084) requires all dealers who transport liquefied petroleum ("LP")
gas to maintain at least $1 million in both general liability insurance and motor vehicle insurance,
regardless of the size of the containers they sell. Dealers who sell LP gas in containers of at least
50 gallons water capacity, but do not fill or transport the containers, are required to register and
maintain $100,000 in general liability insurance. The act requires dealers to register once rather
than annually, and makes verification of the required insurance coverage a prerequisite to
registration issuance or renewal.
The act also requires the Commissioner of Agriculture to conduct inspections of LP gas
containers and facilities, increases the civil penalties for violations, and eliminates the former
requirement that a violator receive notice of the violation and be allowed 45 days to cure it
before being assessed with a civil penalty.
This act became effective October 1, 2009. (WP)
Extend Certain Development Approvals
S.L. 2009-406 (SB 831). See Environment and Natural Resources.
Small Business Assistance Fund
S.L. 2009-451, Sec. 14.3 (SB 202, Sec. 14.3) creates the Small Business Jobs
Preservation and Emergency Assistance Fund to be administered by the Department of
Commerce. The Fund consists of State appropriations, repayments of principal and interest on
loans, fees, and other amounts received by the Department, as well as other public and private
funds made available to the Fund.
The Section authorizes the Department to make loans to eligible small businesses on
terms set in the statute. Moneys from the Fund may be used for:
􀂾􋹅 Emergency bridge loans where clear ability to repay has been established but credit
remains unavailable.
􀂾􋹏 Other purposes related to small business job preservation as approved by the
Department.
The amount of a loan made to a small business is limited to an aggregate total of no
more than $35,000. The small business is required to report on the costs of the project for
which the loan is made to the Department, and is subject to inspections. The Department is
authorized to establish procedures to administer the program by rules.
The Department is required to report to the Joint Legislative Commission on
Governmental Operations and the Fiscal Research Division by September 1 of each year on the
allocation of money authorized by the section. Also, small businesses that receive money from
the Fund must report on the details of how the money is used.
Chapter 5 Commercial Law and Consumer Protection
Page 32
The section authorizes the Department to use up to $50,000 of the money in the Fund
for administrative expenses.
This section became effective July 1, 2009. (KCB)
Economic Development Fund/Reporting Requirements
S.L. 2009-451, Sec. 14.5 (SB 202, Sec. 14.5) makes technical changes to the due dates
for various reports from the Department of Commerce regarding economic development funds.
It repeals a reporting requirement for the Employment and Training Grant Program and repeals a
reporting requirement for the North Carolina Board of Science and Technology on the status of
trends that reflect the impact of education on economic growth for the twenty-first century.
This section became effective July 1, 2009. (DC)
Study State Aircraft Fleets
S.L. 2009-451, Sec. 14.6 (SB 202, Sec. 14.6) requires the Program Evaluation Division of
the General Assembly to study the number, use, and effectiveness of the State's aircraft fleets.
The study must consider ways to achieve efficiency savings and whether it is desirable or feasible
to sell any of the aircraft or to transfer any of the aircraft to another State agency. The Division
must prepare a report of the findings and recommendations of the study and submit it to the
House of Representatives and Senate Appropriations Committees and the Fiscal Research
Division no later than May 1, 2010.
This section became effective July 1, 2009. (BK)
Executive Aircraft/Use for Economic Development Priority
S.L. 2009-451, Sec. 14.7 (SB 202, Sec. 14.7) provides that if an executive aircraft is not
being used by the Department of Commerce for economic development purposes, the aircraft
may be used by the Governor or a State official who is employed by an agency that does not
have its own aircraft and is traveling on State business.
This section became effective July 1, 2009. (BK)
Main Street Grant Funds
S.L. 2009-451, Sec. 14.10 (SB 202, Sec. 14.10) established the Main Street Solutions
Fund, which was formerly the Main Street Financial Incentive Fund. The Main Street Solutions
Fund will provide grants to cities that are located in tier 2 and 3 counties and that have
populations of between 10,000 and 50,000 people. Grants from $20,000 to $300,000 may be
used for various purposes, including projects related to downtown revitalization. The
Department of Commerce and cities that have been selected to receive a grant are required to
provide a consolidated report to the Joint Legislative Commission on Governmental Operations
and the Fiscal Research Division no later than September 1 each year concerning the allocation of
Main Street Solutions Fund grants in the previous fiscal year.
This section became effective July 1, 2009. (JH)
Tourist Destination Marketing
S.L. 2009-451, Sec. 14.11 (SB 202, Sec. 14.11) directs the Department of Commerce to
promote historically underutilized businesses and supplier diversity when marketing the State,
including promotion through advertising in minority media outlets and with minorities in the
motorsports industry. The Department and businesses with which it contracts to promote
Chapter 5 Commercial Law and Consumer Protection
Page 33
underutilized businesses and supplier diversity also are directed to make good-faith efforts to
achieve diversity in the bidding and awarding of marketing and advertising contracts.
This section became effective July 1, 2009. (TH)
Extend Deadline for 20% Reduction of Petroleum Products
Use for State Fleets/Clarify Report Requirement
S.L. 2009-451, Sec. 14.14 (SB 202, Sec. 14.14) extends the deadline from January 1,
2010, to July 1, 2011, for State agencies, universities, and community colleges having State-owned
vehicle fleets to achieve a 20% reduction in the use of petroleum products pursuant to
plans to improve the State's use of alternative fuels, synthetic lubricants, and efficient vehicles.
The section designates the State Energy Office as the agency responsible for receiving required
reports from state agencies relating to the plans. It also clarifies that agencies must make
annual reports on the efforts undertaken to achieve the required reductions to the State Energy
Office through September 1, 2011, and that the State Energy Office must annually report the
agencies' progress to the Joint Legislative Commission on Governmental Operations through
November 1, 2011.
This section became effective July 1, 2009. (WP)
State Banking Commission/Fees and Assessment Changes
Effective July 1
S.L. 2009-451, Sec. 14.20 (SB 202, Sec. 14.20) amends the law governing the State
Banking Commission's authority to set the fees and assessments which it collects. The section
directs the Commission to report to the Joint Legislative Commission on Governmental Operations
its conclusion as to whether the estimated fees and assessments should be reduced or increased.
Any reduction or increase of the estimated fees and assessments will become effective July 1 of
the next fiscal year.
This section became effective July 1, 2009. (KCB)
Mortgage/Rate Spread and High-Cost Loans
S.L. 2009-457 (HB 1222) amends the rate spread and high-cost home loan statutes to
update the definition of rate spread home loan and to clarify the definition of points and fees in
connection with high-cost home loans. The act modifies the rate spread home loan definition
and the determination of the borrower's ability to repay to allow lenders to meet either the new
Federal Reserve rules defining rate spread loans or the current definition in North Carolina law.
The State is not required to conform to federal rules, but including this definition will make it
easier for some lenders to comply with the law, while not compromising consumer protections. A
corresponding amendment is made to the Emergency Program to Reduce Home Foreclosures Act
to preserve the definition of "rate spread home loan" for purposes of determining which loans are
subject to the foreclosure reduction program.
The act also amends the definition of the term "points and fees" in the anti-predatory
lending law. It clarifies that certain items or charges required to be disclosed under Regulation Z
are included in the calculation of the threshold only when the items or charges are paid by the
borrower at or before closing.
This act became effective October 1, 2009. (KCB)
Chapter 5 Commercial Law and Consumer Protection
Page 34
Modernize Precious Metal Business Permitting
S.L. 2009-482 (HB 1637) amends the provisions governing the regulation of persons
engaged in the business of purchasing precious metals as follows:
􀂾􋹅 Eliminates the 10% rule (exemption from licensing requirements for dealers whose
second hand purchases of precious metals are less than 10% of their total purchases
from the public).
􀂾􋹃 Clarifies transactions that are exempt from regulation.
􀂾􋹅 Exempts all pawnbroker transactions from regulation under the precious metals
article.
����􋹁 Adds palladium as a regulated metal.
􀂾􋹉 Increases the fee for a permit from $10 to $180 and increases the fee for registration
of an employee from $3 to $10 with an annual renewal fee of $3.
􀂾􋹒 Requires employees of dealers to consent to criminal history checks and provides
that the person may not be employed by the dealer if the person refuses to consent
or if the person has been convicted of a felony and has not had citizenship rights
restored for at least five years.
􀂾􋹅 Exempts employees from registration only if they are involved in precious metals
purchases incidentally to other job responsibilities and the transactions are overseen
by a registered employee or licensed dealer.
􀂾􋹒 Requires a dealer who applies for a special occasion permit to provide a physical
address where purchased items are to be kept for the required hold period.
􀂾􋹁 Allows dealers to keep records electronically, but reporting must be in the manner
authorized by the law enforcement agency.
􀂾􋹐 Provides that purchased items may not be sold or disposed of for a period of seven
days after a transaction is reported.
This act became effective October 1, 2009. No dealer who is required to be licensed
under this act, but who was not required to be licensed prior to the effective date of this act, will
be guilty of engaging as a dealer in the business of purchasing precious metals without a license
during the period between October 1, 2009, and January 1, 2010. (KCB)
Consumer Economic Protection Act of 2009
S.L. 2009-573 (SB 974) amends the law governing foreclosures under power of sale to
require additional protections for homeowners. The act also amends and expands the laws
regulating collection agencies to include debt buyers. With regard to foreclosures, the act limits
the amount of the bond required to appeal from a finding of the clerk in a foreclosure proceeding
in which the debtor owns and occupies the property as a principal residence. The bond is set at
1% of the principal balance of the note, provided that the clerk may set a lower amount if the
clerk determines there is undue hardship or for good cause shown. The clerk may require a
higher bond if there is a likelihood of waste or damage to the property pending appeal, or for
good cause shown. In addition, a new provision is added directing the clerk, at the beginning of
a foreclosure hearing on owner-occupied residential property, to inquire as to the efforts made to
resolve the matter voluntarily. The clerk need not inquire as to efforts to resolve a delinquency
prior to the foreclosure proceeding if the trustee submits an affidavit describing those efforts and
the results. The clerk may continue the hearing for no more than 60 days, if the clerk finds good
cause to believe that additional time or additional measures offer a reasonable likelihood of
resolving the matter.
Under current law, no person, firm, corporation, or association may operate a collection
agency without first obtaining a permit from the Commissioner of Insurance. The act amends
the definition of the term "Collection agency" to include debt buyers. A debt buyer is a person or
entity that purchases delinquent or charged-off consumer loans, or consumer credit accounts, or
Chapter 5 Commercial Law and Consumer Protection
Page 35
other delinquent consumer debt and then aggressively pursues collection efforts. The following
activities when conducted by collection agencies that are debt buyers are deemed unfair
practices:
􀂾􋹁 Attempting to collect on a debt, including bringing suit or initiating arbitration
proceedings, when the collection agency knows or reasonably should know that the
collection is barred by the statute of limitations.
􀂾􋹁 Attempting to collect on a debt without valid documentation that the debt buyer
actually owns the debt and without reasonable verification of the amount of the
debt.
􀂾􋹆 Failing to give the debtor at least 30 days written notice before filing a legal action to
collect the debt.
􀂾􋹆 Failing to include required information in any action filed by a debt buyer.
The act also increases the amount of the penalty the court may allow to a debtor and the
civil penalties that may be imposed on collection agencies that violate the prohibitions of the act,
and makes several other changes to the procedural law governing civil actions involving collection
agencies.
Finally, the act amends the Identity Theft Protection Act to make credit unions that are in
compliance with their federal regulator exempt from certain portions of the act.
This act became effective October 1, 2009, and applies to foreclosures initiated, debt
collection activities undertaken, and actions filed on or after that date. (KCB)
Chapter 5 Commercial Law and Consumer Protection
Page 36
Chapter 6 Constitution and Elections
Page 37
Chapter 6
Constitution and Elections
Denise Huntley Adams (DHA), Erika Churchill (EC),
Bill Gilkeson (BG), Kara McCraw (KM)
Note: For legislation affecting voting, the legislation cannot be implemented until it
has received approval under Section 5 of the Voting Rights Act of 1965. Approval is
most commonly obtained administratively from the United States Attorney General.
This requirement applies to legislation affecting any of the 40 North Carolina counties
covered by Section 5, including all Statewide legislation. Unless otherwise indicated,
the effective date stated is the effective date as it is in the legislation. The act cannot
be implemented until Voting Rights Act approval is obtained.
Enacted Legislation
Write-In Candidate Rule
S.L. 2009-47 (HB 220) rewrites the primary candidate notice and pledge to reflect the
requirements of the write-in eligibility statute, which prohibits counting write-in votes for a write-in
candidate who has been defeated in the primary for that same office. The candidate must
pledge not to run as a write-in candidate for the same office.
This act became effective January 1, 2010, and applies with respect to primaries and
elections held on or after that date. This act has received federal preclearance from the U.S.
Department of Justice. (KM)
Pender/New Hanover House Districts
S.L. 2009-78 (HB 1621) establishes new district lines for House Districts 16 and 18 as
established in S.L. 2003-434, in response to a March 2009 United States Supreme Court decision
affirming the North Carolina Supreme Court holding on Pender v. Bartlett, requiring District 18 to
be redrawn.
For additional information on redistricting in North Carolina, see the 2003 Redistricting
Guide, Fourth Edition, Corrected Copy; the 2009 Supplement to the 2003 Redistricting Guide; and
the 2002 and 2003 Substantive Ratified Legislation publications.
The act enacts new district lines for District 18, changing only Districts 16 and 18, both
districts formerly representing Pender and New Hanover Counties. Maps and statistics of the
districts can be obtained by contacting the Research Division.
This act became effective June 11, 2009, and the United States Department of Justice
issued a letter on September 18, 2009, stating it would not object to the implementation of the
plan. (EC)
Secretary of State Notify Electors
S.L. 2009-96 (HB 170) provides that the office of presidential elector may be held in
addition to the maximum number of appointive offices allowed by statute. The act requires the
Secretary of State to notify the following groups of the dual-office holding requirements of the
North Carolina Constitution and General Statutes:
􀂾􋹐 Political parties authorized to nominate electors, in January of each year in which
electors are elected.
Chapter 6 Constitution and Elections
Page 38
􀂾􋹃 Candidates for electors, upon receipt of the candidates' names.
The Secretary of State must specifically inform each group of the requirement that if a
person elected as elector holds another elective office at the time of taking the oath of office as
elector, that other office is vacated upon taking the oath of office.
This act became effective June 11, 2009. This act has received federal preclearance from
the U.S. Department of Justice. (KM)
Municipal District Elections/Census
S.L. 2009-414 (SB 38) makes permanent special rules applicable to municipal
redistricting following a federal decennial census, by making the occurrence of the federal
decennial census the triggering event for consideration of the special rules.
This act became effective August 5, 2009. The act may not be implemented until the law
has received preclearance approval under Section 5 of the Voting Rights of 1965 by the U.S.
Department of Justice. (KM)
Campaign Finance Amendments
S.L. 2009-534 (HB 1111) makes various changes to the campaign finance statutes,
including the following:
􀂾􋹃 Candidacy Exploration. – The act amends the definition of "candidate" to specify
that an individual becomes a candidate for campaign finance purposes when positive
action is taken to bring about the individual's nomination or election, including
making a public announcement of a definite intent to run.
􀂾􋹃 Clarification of terms of Legal Expense Funds. – The act makes a technical
change to Article 22M, Legal Expense Funds, by eliminating the use of the term
"contribution" and substituting the term "legal expense donation" to provide clarity
between