§ 147-1. Public State officials classified.

The public officers of the State are legislative, executive, and judicial. But this classification shall not be construed as defining the legal powers of either class.

History

(1868-9, c. 270, ss. 1, 2; Code, s. 3317; Rev., s. 5323; C.S., s. 7624.)

§ 147-2. Legislative officers.

The legislative officers are:

1. Fifty Senators;
2. One hundred and twenty members of the House of Representatives;
3. A Speaker of the House of Representatives;
4. A clerk and assistants in each house;
5. A Sergeant-at-arms and assistants in each house;
6. As many subordinates in each house as may be deemed necessary.

History

(1868-9, c. 270, s. 3; Code, s. 3318; Rev., s. 5324; C.S., s. 7625; 1995, c. 379, s. 13.)

Cross References. - As to assaults upon or threats against officers named in this section, see G.S. 14-16.6 et seq.

§ 147-3. Executive officers.

1. Executive officers are either:
   1. Civil;
   2. Military.
2. Civil executive officers are:
   1. General, or for the whole State;
   2. Special, or for special duties in different parts of the State;
   3. Local, or for a particular part of the State.
3. The general civil executive officers of this State are as follows:
   1. A Governor;
   2. A Lieutenant Governor;
   3. Private secretary for the Governor;
   4. A Secretary of State;
   5. An Auditor;
   6. A Treasurer;
   7. An Attorney General;
   8. A Superintendent of Public Instruction;
   9. The members of the Governor's Council;
   10. A Commissioner of Agriculture;
   11. A Commissioner of Labor;
   12. A Commissioner of Insurance.

History

(1868-9, c. 270, ss. 24, 25, 26; Code, s. 3319; 1899, c. 54, ss. 3, 4; c. 373; 1901, c. 479, s. 4; Rev., s. 5325; C.S., s. 7626; 1931, c. 312, s. 5; 1943, c. 170.)

Cross References. - As to assaults upon or threats against officers named in this section, see G.S. 14-16.6 et seq.

§ 147-4. Executive officers - election; term; induction into office.

The executive department shall consist of a Governor, a Lieutenant Governor, a Secretary of State, an Auditor, a Treasurer, a Superintendent of Public Instruction, an Attorney General, a Commissioner of Agriculture, a Commissioner of Insurance, and a Commissioner of Labor, who shall be elected for a term of four years, by the qualified electors of the State, at the same time and places, and in the same manner, as members of the General Assembly are elected. Their term of office shall commence on the first day of January next after their election and continue until their successors are elected and qualified. The persons having the highest number of votes, respectively, shall be declared duly elected, but if two or more be equal and highest in votes for the same office, then one of them shall be chosen by joint ballot of both houses of the General Assembly. Contested elections shall be determined by a joint ballot of both houses of the General Assembly in such manner as shall be prescribed by law.

History

(Const., art. 3, ss. 1, 3; 1897, c. 1, ss. 1, 2, 3; Rev., s. 5326; C.S., s. 7627; 1931, c. 312, s. 5; 1953, c. 2; 1981, c. 504, s. 7; 1985, c. 563, s. 12.)

Cross References. - As to election, term and induction of Superintendent of Public Instruction, see G.S. 115C-18.

Editor's Note. - An amendment to this section in Session Laws 1981, c. 504, s. 7, was made effective upon certification of approval of the constitutional amendments proposed by ss. 1 through 3 of the 1981 act. The constitutional amendments were submitted to the people at an election held June 29, 1982, and were defeated. Therefore, the 1981 amendment to this section never went into effect.

§ 147-5. Executive officers - report to Governor; reports transmitted to General Assembly.

It shall be the duty of the officers of the executive department to submit their respective reports to the Governor to be transmitted by him with his message to the General Assembly.

History

(1813, c. 60, s. 2, P.R.; Rev., s. 5373; C.S., s. 7628.)

§ 147-6. Expenses paid by warrants; statements filed.

All salaries, purchases of equipment and expenses authorized by law to be paid out of the various funds herebefore mentioned shall be paid by warrant drawn on the State Treasurer. The officer of State or head of any department thereof shall file an itemized statement of the salaries, bills for purchase of equipment and other expenses of his department, and warrants shall be drawn on the State Treasurer for the payment of all salaries, purchases of equipment, and expenses as authorized by law, to be paid by the said officer of State or head of any department thereof, as evidenced by statements so approved and filed. The State Treasurer is hereby authorized and directed to pay said warrants.

History

(1919, c. 117, s. 2; C.S., s. 7630; 1983, c. 913, s. 44.)

§ 147-7. Traveling expenses on State's business.

When, to efficiently and properly carry into effect and execute any of the duties imposed by his appointment or by the provision of any statute of this State, and provide for the expenses thereof, it is required that any officer of the State or any employee of any department thereof shall travel from place to place, such traveling and other expenses as shall be required shall be approved by said officer or head of the department whose employee incurs such expenses.

History

(1919, c. 117, s. 3; C.S., s. 7631.)

§ 147-8. Mileage allowance to officers or employees using public or private automobiles.

Where it is provided by any law affecting the State of North Carolina, or any subdivision thereof, whereby any employee or officer of the same is allowed to charge mileage for the use of any motor vehicle when owned by the State or any subdivision thereof or by any such employee or officer of the State or any subdivision thereof, when in the discharge of any duties imposed upon him by reason of his employment or office, the same is hereby repealed to the extent that said charge shall be limited to the actual miles traveled by said motor vehicle and no mileage charge shall be allowed for but one occupant of any motor vehicle so used, and provided further that no such mileage charge shall exceed seven cents (7 › ) per mile.

History

(1931, c. 382, s. 1; 1953, c. 675, s. 20.)

Local Modification. - Guilford: 1961, c. 905; Lee: 1967, c. 58, s. 1; Mecklenburg: 1965, c. 240, s. 1; city of Greensboro: 1959, c. 1137, s. 15.

§ 147-9. Unlawful to pay more than allowance.

It shall be unlawful for any officer, auditor, bookkeeper, clerk or other employee of the State of North Carolina or any subdivision thereof to knowingly approve any claim or charge on the part of any person for mileage by reason of the use of any motor vehicle owned by the State or any subdivision thereof or by any person and used in the pursuit of his employment or office in excess of seven cents (7 › ) per mile as set out in G.S. 147-8 and any officer, auditor, bookkeeper, clerk or other employee violating the provisions of this section shall be guilty of a Class 1 misdemeanor.

History

(1931, c. 382, s. 2; 1953, c. 675, s. 21; 1993, c. 539, s. 1053; 1994, Ex. Sess., c. 24, s. 14(c).)

Local Modification. - Lee: 1967, c. 58, s. 2; Mecklenburg: 1965, c. 240, s. 2; city of Greensboro: 1959, c. 1137, s. 16.

§ 147-9.1. Municipalities and counties exempt.

Nothing in this Article shall be deemed to be applicable to counties or municipalities or to limit or restrict the amount of any automobile mileage allowance, or automobile expense allowance, or any other travel expense allowance or payment which may be paid by a county or municipality or by any board, commission, or other agency of any county or municipality.

History

(1967, c. 941; 1969, c. 180, s. 2.)

§ 147-9.2. Definitions.

The following words when used in this Article shall have the meanings ascribed to them in this section except when the context clearly indicates a different meaning:

1. "Board" shall mean the Board of Trustees of the North Carolina Public Employee Deferred Compensation Plan established pursuant to Chapter 433 of the 1971 Session Laws and G.S. 143B-426.24.
2. "Chief executive officer" shall mean the person or group of persons responsible for the administration of any employer, or an agent of such chief executive officer duly authorized to enter into the contracts with teachers or State employees referred to in G.S. 147-9.3 and 147-9.4.
3. "Employee" shall mean a permanent employee of the State of North Carolina, or of any of its departments or agencies, or of any of its wholly owned institutions and instrumentalities.
4. "Employer" shall mean (i) the State of North Carolina, its departments and agencies, and its wholly owned institutions and instrumentalities or (ii) a local board of education.
5. "Plan" shall mean the North Carolina Public Employee Deferred Compensation Plan.
6. "Teacher" shall have the meaning provided in G.S. 135-1(25).

History

(1971, c. 433, s. 1; 1983, c. 559, s. 2; 1991, c. 389, s. 1.)

§ 147-9.3. Annuity contracts; salary deductions.

Notwithstanding the provisions of G.S. 143B-426.40A and notwithstanding any provision of law relating to salaries or salary schedules of State employees, if the employee be one described in section 403(b)(1)(A)(i) or (ii) of the United States Internal Revenue Code, the chief executive officer of such employee, on behalf of the employer, may enter into an annual contract with the employee which provides for a reduction in salary below the total established compensation or salary schedule for a term of one year. The chief executive officer shall use the funds derived from the reduction in the salary of the employee to purchase a nonforfeitable annuity or retirement income contract for the benefit of said employee. An employee who has agreed to a salary reduction for this purpose shall not have the right to receive the amount of salary reduction in cash or in any other way except the annuity or retirement income contract. Funds used for the purchase of an annuity or retirement income contract shall not be in lieu of any amount earned by the employee before his election for a salary reduction has become effective. The agreement for salary reduction referred to herein shall be effective under the necessary regulations and procedures adopted by the chief executive officer and on forms prescribed by him. Notwithstanding any other provision of law, the amount by which the salary of an employee is reduced pursuant to this section shall not be excluded, but shall be included, in computing and making payroll deductions for social security and retirement system purposes, if any, and in computing and providing matching funds for retirement system purposes, if any.

History

(1971, c. 433, s. 2; 1991, c. 389, s. 1; 2006-66, s. 6.19(a); 2006-203, s. 112; 2006-221, s. 3A; 2006-259, s. 40(a).)

Editor's Note. - Session Laws 2006-66, s. 6.19(a), as added by Session Laws 2006-221, s. 3A, substituted "G.S. 143B-426.39D" for "G.S. 143B-426-39A" which had been substituted for "G.S. 143-3.3" by Session Laws 2006-203, s. 112. The reference to G.S. 143B-426.39D has been changed to G.S. 143B-426.40A at the direction of the Revisor of Statutes.

Session Laws 2006-66, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2006'."

Session Laws 2006-66, s. 28.6, is a severability clause.

Session Laws 2006-259, s. 40(a), corrected internal references to recodified sections 143B-426.39D through 143B-426.39F, but was repealed by Session Laws 2006-259, s. 40(i), provided that SB 198, 2005 Regular Session [2006-221] becomes law, which it did.

Effect of Amendments. - Session Laws 2006-203, s. 112, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, substituted "G.S. 143B-426.39A" for "G.S. 143-3.3," near the beginning of the section. See Editor's note.

§ 147-9.4. Deferred Compensation Plan.

1. Notwithstanding the provisions of G.S. 143B-426.40A and notwithstanding any provision of law to the contrary relating to salaries or salary schedules of teachers or State employees, the chief executive officer of an employer, on behalf of the employer, may enter into a contract with a teacher or employee under which the teacher or employee irrevocably elects to defer receipt of a portion of his or her scheduled salary in the future, but only if, as a result of such contract, the income so deferred is deferred pursuant to the Plan provided for in G.S. 143B-426.24 or pursuant to some other plan established before January 1, 1983, and is not constructively received by the teacher or employee in the year in which it was earned, for State and federal income tax purposes. In addition, the income so deferred shall be invested in the manner provided in the applicable Plan; however, the teacher or employee may revoke his or her election to participate and may amend the amount of compensation to be deferred by signing and filing with the Board a written revocation or amendment on a form and in the manner approved by the Board. Any such revocation or amendment shall be effective prospectively only and shall cause no change in the allocation of amounts invested prior to the filing date of such revocation or amendment.
2. Notwithstanding the provisions of G.S. 143B-426.40A and any provision of law to the contrary relating to salaries or salary schedules of teachers or State employees, the chief executive officer of an employer, on behalf of the employer, may contribute to a deferred compensation account of a teacher or employee additional funds, not in excess of limitations under federal law; provided that for State and federal income taxes purposes, the funds are not constructively received by the teacher or employee in the year in which the funds were earned.

A teacher or employee who has agreed to the deferral of income pursuant to the Plan shall have the right to receive the income so deferred only in accordance with the provisions of the Plan. Funds so deferred shall not be in lieu of any amount earned by the teacher or employee before his or her election to defer compensation became effective. The agreement to defer income referred to herein shall be effective under such necessary regulations and procedures as are adopted by the Board, and on forms prepared or approved by it. A teacher or employee who agrees to defer income as provided in this section may authorize payroll deductions for deferral of the income. An employer shall make payroll deduction available for a teacher or employee who authorizes payroll deduction. Notwithstanding any other provisions of law, the amount by which the salary of a teacher or employee is deferred pursuant to the Plan shall not be excluded, but shall be included, in computing and making payroll deductions for social security and retirement system purposes, if any, and in computing and providing matching funds for retirement system purposes, if any.

Except for the applications of the provisions of G.S. 110-136, and in connection with a court-ordered equitable distribution under G.S. 50-20, the right of a teacher or employee, who elects to defer income pursuant to the North Carolina Public Employee Deferred Compensation Plan under G.S. 143B-426.24, to benefits that have vested under the Plan, is nonforfeitable. These benefits are exempt from levy, sale, and garnishment, except as provided by this section.

History

(1971, c. 433, s. 3; 1983, c. 559, s. 3; 1985, c. 660, s. 4; 1989, c. 792, s. 2.10; 1991, c. 389, s. 1; 2006-66, s. 6.19(a); 2006-203, s. 113; 2006-221, s. 3A; 2006-259, s. 40(a); 2017-129, s. 7.)

Editor's Note. - Session Laws 2006-66, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2006'."

Session Laws 2006-66, s. 6.19(a), as added by Session Laws 2006-221, s. 3A, substituted G.S. 143B-426.39D for G.S. 143B-426-39A which had been substituted for "G.S. 143-3.3" by Session Laws 2006-203, s. 113. The reference to G.S. 143B-426.39D has been changed to G.S. 143B-426.40A at the direction of the Revisor of Statutes.

Session Laws 2006-66, s. 28.6, is a severability clause.

Session Laws 2006-259, s. 40(a), which corrected the internal references to 143B-426.40A, was repealed by Session Laws 2006-259, s. 40(i), provided that Senate Bill 198, 2005 Regular Session [2006-221] becomes law, which it did.

Effect of Amendments. - Session Laws 2006-203, s. 113, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, substituted "G.S. 143B-426.39A" for "G.S. 143-3.3," in the first sentence of the first paragraph. See Editor's note.

Session Laws 2017-129, s. 7, effective July 20, 2017, designated the existing language as subsection (a); in the first paragraph of subsection (a), inserted "to the contrary," deleted "from time to time" preceding "enter into a contract" in the first sentence; substituted "his or her" for "his" in the first and second paragraphs; and added subsection (b).

§ 147-10. Governor to reside in Raleigh; mansion and accessories.

The Governor shall reside in the City of Raleigh during his continuance in office. A convenient and commodious furnished dwelling house, supplied with necessary lights, fuel, and water, shall be provided for his accommodation; and an automobile and driver shall be provided and maintained for the use of the executive mansion.

History

(1868-69, c. 270, ss. 32, 33; Code, ss. 3325, 3326; 1885, c. 244; Rev., s. 5327; 1919, c. 307; C.S., s. 7635.)

Editor's Note. - Session Laws 2003-404, ss. 1-4, as amended by Session Laws 2004-124, s. 19.9, as amended by Session Laws, 2014-100, s. 30.5(b), and as amended by Session Laws 2021-90, s. 17, provide: "SECTION 1.(a) Modification of the Capital Area Master Plan to provide for the sale of certain properties. - Prior to May 1, 2004, the Department of Administration and the Capital Planning Commission shall modify the Capital Area Master Plan for State Government to provide for the sale to private or public entities of State-owned properties within and adjacent to the Blount Street Historic District, an area bordered by North Person Street, Jones Street, North Wilmington Street, and Peace Street, except for the Governor's Mansion, the Archives and History Building, the State Records Center, the Bath Building, and the Leonidas Lafayette Polk House, which shall be excluded from the sales provisions hereof. The Department of Administration is authorized to sell any such property pursuant to Chapter 146 of the General Statutes, and such sale shall take place at the time the Department determines that a property is no longer needed for State purposes and that it is in the best interest of the State to sell that property.

"(b) Preservation or conservation agreements required on all sales. - The sale of property in this area shall be subject to preservation or conservation agreements as defined in G.S. 121-35 that ensure that the use of the property is consistent with the historic and architectural character of the district.

"(c) Procedures for the sale of properties. - Due to (i) the significant architectural, archaeological, artistic, cultural, or historical associations of these properties, (ii) the properties' relationship to other property that is significant for architectural, archaeological, artistic, cultural, or historical associations, and (iii) the requirement that a preservation agreement or conservation agreement as defined in G.S. 121-35 is placed in the deed conveying said property from the State, these properties shall be sold by private negotiation and sale, and all such sales shall be approved by the State Property Office.

"Property sold pursuant to this act shall be sold in accordance with the procedures set forth in G.S. 146-27 through G.S. 146-29.

"(d) Funds to implement the sales process. - Of the funds available to the Department of Administration, the Department may use up to five hundred thousand dollars ($500,000) to implement the provisions of this act.

"SECTION 2. Use of the net proceeds of sales. - The net proceeds of any sale made in accordance with this act shall be handled in the following priority order:

"(1) In accordance with the provisions of any trust or other instrument of title under which title to the real property was acquired by the State. The term 'net proceeds' means the gross amount received from the sale of any such property less any expenses incurred incident to that sale, subject to regulations adopted by the Governor and approved by the Council of State.

"(2) To reimburse the Department of Administration for any funds expended pursuant to Section 1(d) of this act.

"(3) Repealed by Session Laws 2014-100, s. 30.5(b), effective July 1, 2014.

"(4) The remainder not needed under subdivisions (1) through (3) of this section shall be placed in the General Fund.

'SECTION 3. Repealed by Session Laws 2021-90, s. 17, effective July 22, 2021.

"SECTION 4. Implementation plan for this act. - Prior to September 1, 2004, the Department of Administration shall submit to the Blount Street Historic District Oversight Committee a plan for the implementation of this act and a schedule for implementation of the plan. The plan may provide for the sale of property in separate parcels or in its entirety."

Session Laws 2003-404, s. 5, makes the act effective August 7, 2003.

Session Laws 2014-100, s. 2.2(h), provides: "Notwithstanding the use requirements provided in Section 2 of S.L. 2003-404, the State Controller shall transfer the sum of five million four hundred fifty-six thousand seven hundred eighty-seven dollars ($5,456,787) from the special trust fund created by S.L. 2003-404 to the General Fund to be used for the purposes expressed and allocated by this act, and the State Controller shall close the fund."

Session Laws 2014-100, s. 30.5(a), provides: "Funds placed in the special trust fund pursuant to subdivision (3) of Section 2 of S.L. 2003-404 that are unexpended and unencumbered as of the effective date of this act [July 1, 2014] shall be transferred to the General Fund."

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year."

Session Laws 2014-100, s. 38.7, is a severability clause.

§ 147-11. Salary and expense allowance of Governor; allowance to person designated to represent Governor's office.

1. The salary of the Governor shall be one hundred fifty-four thousand seven hundred forty-three dollars ($154,743) annually, payable monthly.
2. He shall be paid annually the sum of eleven thousand five hundred dollars ($11,500) as an expense allowance in attending to the business for the State and for expenses out of the State and in the State in representing the interest of the State and people, incident to the duties of his office, the said allowance to be paid monthly.
3. In addition to the foregoing allowance, the actual expenses of the Governor while traveling outside the State on business incident to his office shall be paid by a warrant drawn on the State Treasurer. Whenever a person who is not a State official or employee is designated by the Governor to represent the Governor's office, such person shall be paid actual travel expenses incurred in the performance of such duty; provided that the payment of such travel expense shall conform to the provisions of the biennial appropriation act in effect at the time the payment is made.

History

(1879, c. 240; Code, s. 3720; 1901, c. 8; Rev., s. 2736; 1907, c. 1009; 1911, c. 89; 1917, cc. 11, 235; 1919, c. 320; C.S., s. 3858; 1929, c. 276, s. 1; 1947, c. 994; 1953, c. 1, s. 1; 1961, c. 1157; 1963, c. 1178, s. 1; 1965, c. 1091, s. 1; 1971, c. 1083, s. 1; 1973, c. 600; 1977, 2nd Sess., c. 1136, s. 39; c. 1249, s. 5; 1979, 2nd Sess., c. 1137, s. 31; 1981, c. 1127, s. 7; 1983, c. 761, ss. 194, 195; c. 913, s. 45; 1983 (Reg. Sess., 1984), c. 1034, s. 217; 1985, c. 479, s. 215; 1985 (Reg. Sess., 1986), c. 1014, s. 20; 1987, c. 738, s. 11; 1987 (Reg. Sess., 1988), c. 1086, ss. 6, 172; 1989, c. 752, ss. 23(a), (b), 167; 1991 (Reg. Sess., 1992), c. 900, ss. 32(a), (b), 182; 1993, c. 321, s. 48; 1993 (Reg. Sess., 1994), c. 769, s. 7.1; 1995, c. 507, s. 7.1(a); 1996, 2nd Ex. Sess., c. 18, s. 28(a); 1997-443, s. 33(a); 1998-153, s. 3(a); 1999-237, s. 28(a); 2000-67, s. 26(a); 2004-124, s. 31.1(b); 2005-276, s. 29.1(a); 2006-66, s. 22.1(a); 2007-323, s. 28.1(a); 2008-107, s. 26.1(a); 2012-142, s. 25.01(b); 2014-100, s. 35.1(a); 2016-94, s. 36.1(a1); 2018-5, s. 35.2(a); 2019-209, s. 3.2(a), (a1).)

Effect of Amendments. - Session Laws 2004-124, s. 31.1(b), effective July 1, 2004, substituted "one hundred twenty-one thousand three hundred ninety-one dollars ($121,391)" for "one hundred eighteen thousand four hundred thirty dollars ($118,430)" in subsection (a).

Session Laws 2005-276, s. 29.1(a), effective July 1, 2005, substituted "one hundred twenty-three thousand eight hundred nineteen dollars ($123,819)" for "one hundred twenty-one thousand three hundred ninety-one dollars ($121,391)" in subsection (a).

Session Laws 2006-66, s. 22.1(a), effective July 1, 2006, substituted "one hundred thirty thousand six hundred twenty-nine dollars ($130,629)" for "one hundred twenty-three thousand eight hundred nineteen dollars ($123,819)" in subsection (a).

Session Laws 2007-323, s. 28.1.(a), effective July 1, 2007, substituted "one hundred thirty-five thousand eight hundred fifty-four dollars ($135,854)" for "one hundred thirty thousand six hundred twenty nine dollars ($130,629)" in the middle of subsection (a).

Session Laws 2008-107, s. 26.1(a), effective July 1, 2008, substituted "one hundred thirty-nine thousand five hundred ninety dollars ($139,590)" for "one hundred thirty-five thousand eight hundred fifty-four dollars ($135,854)" in subsection (a).

Session Laws 2012-142, s. 25.01(b), effective July 1, 2012, substituted "one hundred forty-one thousand two hundred sixty-five dollars ($141,265)" for "one hundred thirty-nine thousand five hundred ninety dollars ($139,590)" in subsection (a).

Session Laws 2014-100, s. 35.1(a), effective July 1, 2014, substituted "one hundred forty-two thousand two hundred sixty-five dollars ($142,265)" for "one hundred forty-one thousand two hundred sixty-five dollars ($141,265)" in the middle of subsection (a).

Session Laws 2016-94, s. 36.1(a1), effective July 1, 2016, substituted "one hundred forty-four thousand three hundred ninety-nine dollars ($144,399)" for "one hundred forty-two thousand two hundred sixty-five dollars ($142,265)" in the middle of subsection (a).

Session Laws 2018-5, s. 35.2(a), effective July 1, 2018, substituted "one hundred forty-seven thousand two hundred eighty-seven dollars ($147,287)" for "one hundred forty-four thousand three hundred ninety-nine dollars ($144,399)" in subsection (a).

Session Laws 2019-209, s. 3.2(a), effective July 1, 2019, rewrote subsection (a), which formerly read: "The salary of the Governor shall be one hundred forty-seven thousand two hundred eighty-seven dollars ($147,287) annually, payable monthly."

Session Laws 2019-209, s. 3.2(a1), effective July 1, 2020, rewrote subsection (a), which formerly read: "The salary of the Governor shall be one hundred fifty thousand nine hundred sixty-nine dollars ($150,969) annually, payable monthly."

§ 147-11.1. Succession to office of Governor; Acting Governor.

1. Lieutenant Governor. -
   1. The Lieutenant Governor-elect shall become Governor upon the failure of the Governor-elect to qualify. The Lieutenant Governor shall become Governor upon the death, resignation, or removal from office of the Governor. The further order of succession to the office of Governor shall be prescribed by law. A successor shall serve for the remainder of the term of the Governor whom he succeeds and until a new Governor is elected and qualified.
   2. During the absence of the Governor from the State, or during the physical or mental incapacity of the Governor to perform the duties of his office, the Lieutenant Governor shall be Acting Governor. The further order of succession as Acting Governor shall be prescribed by law.
2. President of Senate, Speaker of the House and Other Officers. -
   1. If, by reason of failure to qualify, death, resignation, or removal from office, there is neither a Governor nor a Lieutenant Governor to discharge the powers and duties of the office of Governor, then the President of the Senate shall, upon his resignation as President of the Senate and as Senator, become Governor.
   2. If, at the time when under subdivision (1) of this subsection the President of the Senate is to become Governor, there is no President of the Senate, or the President of the Senate fails to qualify as Governor, then the Speaker of the House of Representatives shall, upon his resignation as Speaker and as Representative, become Governor.
   3. If, at the time when under subdivision (2) of this subsection the Speaker of the House of Representatives is to become Governor, there is no Speaker of the House of Representatives, or the Speaker of the House of Representatives fails to qualify as Governor, then that officer of the State of North Carolina who is highest on the following list, and who is not under disability to serve as Governor, shall, upon his resignation of the office which places him in the order of succession, become Governor: Secretary of State, Auditor, Treasurer, Superintendent of Public Instruction, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance.
3. Acting Governor Generally. -
   1. If, by reason of absence from the State or physical or mental incapacity, there is neither a Governor nor a Lieutenant Governor qualified to discharge the powers and duties of the office of Governor, then the President of the Senate shall become Acting Governor.
   2. If, at the time when under subdivision (1) of this subsection the President of the Senate is to become Acting Governor, there is no President of the Senate, or the President of the Senate fails to qualify as Acting Governor, then the Speaker of the House of Representatives shall become Acting Governor.
   3. If, at the time when under subdivision (2) of this subsection the Speaker of the House of Representatives is to become Acting Governor, there is no Speaker of the House of Representatives, or the Speaker of the House of Representatives fails to qualify as Acting Governor, then that officer of the State of North Carolina who is highest on the following list, and who is not under disability to serve as Acting Governor, shall become Acting Governor: Secretary of State, Auditor, Treasurer, Superintendent of Public Instruction, Attorney General, Commissioner of Agriculture, Commissioner of Labor, and Commissioner of Insurance.
4. Governor Serving under Subsection (c). - An individual serving as Acting Governor under subsection (c) of this section shall continue to act for the remainder of the term of the Governor whom he succeeds and until a new Governor is elected and qualified, except that:
   1. If his tenure as Acting Governor is founded in whole or in part upon the absence of both the Governor and Lieutenant Governor from the State, then he shall act only until the Governor or Lieutenant Governor returns to the State; and
   2. If his tenure as Acting Governor is founded in whole or in part upon the physical or mental incapacity of the Governor or Lieutenant Governor, then he shall act only until the removal of the incapacity of the Governor or Lieutenant Governor.
5. Officers to Which Subsections (b), (c) and (d) Applicable. - Subsections (b), (c), and (d) of this section shall apply only to such officers as are eligible to the office of Governor under the Constitution of North Carolina, and only to officers who are not under impeachment by the House of Representatives at the time they are to become Governor or Acting Governor.
6. Compensation of Acting Governor. - During the period that any individual serves as Acting Governor under subsection (c) of this section, his compensation shall be at the rate then provided by law in the case of the Governor.

History

(1961, c. 992, s. 1.)

Cross References. - As to succession to the office of Governor, see also N.C. Const., Art. III, § 3.

§ 147-12. Powers and duties of Governor.

1. In addition to the powers and duties prescribed by the Constitution, the Governor has the powers and duties prescribed in this and the following sections:
   1. To supervise the official conduct of all executive and ministerial officers; and when the Governor deems it advisable to visit all State institutions for the purpose of inquiring into the management and needs of the same.
   2. To see that all offices are filled, and the duties thereof performed, or in default thereof apply such remedy as the law allows, and if the remedy is imperfect, acquaint the General Assembly therewith.
   3. To make the appointments and fill the vacancies not otherwise provided for in all departments.
      1. During the physical or mental incapacity of the regular holder of the office to discharge the duties of the office,
      2. During the continued absence of the regular holder of the office, or
      3. During a vacancy in an office and pending the selection and qualification, in the manner prescribed by statute, of a person to serve for the unexpired term.
   4. To make appointments to fill vacancies in offices subject to appointment by the General Assembly as provided in G.S. 120-122.
   5. Whenever a statute calls for the Governor to appoint one person from each congressional district to a board or commission, and at the time of enactment of that statute, the gubernatorial appointments do not cover all of the congressional districts, then the Governor, in filling vacancies on that board or commission as they occur, shall make appointments to satisfy that requirement, but shall not be required to remove any person from office to satisfy the requirement.
   6. Notwithstanding any other provision of law, whenever a statute calls for the Governor to appoint a person to an office subject to confirmation by the General Assembly, the Governor shall notify the President of the Senate and the Speaker of the House of Representatives by May 15 of the year in which the appointment is to be made of the name of the person the Governor is submitting to the General Assembly for confirmation.
   7. Notwithstanding any other provision of law, whenever a statute calls for the Governor to appoint a person to an office subject to confirmation by the Senate, the Governor shall notify the President of the Senate by May 15 of the year in which the appointment is to be made of the name of the person the Governor is submitting to the General Assembly for confirmation.
   8. To be the sole official organ between the government of this State and other states, or the government of the United States.
   9. To have the custody of the great seal of the State.
   10. If the Governor is apprised by the affidavits of two responsible citizens of the State that there is imminent danger that the statute of this State forbidding prizefighting is about to be violated, the Governor shall use, as far as necessary, the civil and military power of the State to prevent it, and to have the offenders arrested and bound to keep the peace.
   11. Repealed by Session Laws 1997-443, s. 32.30(j), effective July 1, 1999.
   12. In carrying out ex officio duties, to designate the Governor's personal representative to attend meetings and to act in the Governor's behalf as the Governor directs.
   13. To appoint such personal staff as the Governor deems necessary to carry out effectively the responsibilities of the Governor's office.
   14. To contract in behalf of the State with the government of the United States to the extent allowed by the laws of North Carolina for the purpose of securing the benefits available to this State under the Federal Highway Safety Act of 1966. To that end, the Governor shall coordinate the activities of any and all departments and agencies of this State and its subdivisions relating thereto.
   15. Upon being furnished information from law-enforcement officers that public roads or highways or other public vehicular areas, as defined in G.S. 20-4.01, are being blocked by privately owned and operated vehicles or by any other means, thereby impeding the free flow of goods and merchandise in North Carolina, if such information warrants, to declare that a state of emergency exists in the affected area, and to order that the Highway Patrol and/or National Guard remove the offending vehicles or other causes of the blockade from the emergency area.
   16. To name and locate State government buildings, monuments, memorials, and improvements, as provided by G.S. 143B-373(a)(1).
   17. To oversee and approve all memoranda of understanding and agreements between the State and foreign governments, as defined in G.S. 66-280(c), and international organizations. Any memoranda of understanding or agreements under this subsection to be signed on behalf of the State must first be approved by the Governor after review by the Attorney General, and after execution filed with the Secretary of State in accordance with G.S. 66-280.
   18. To negotiate and enter into Class III Tribal-State gaming compacts, and amendments thereto, on behalf of the State consistent with State law and the Indian Gaming Regulatory Act, Public Law 100-497, as necessary to allow a federally recognized Indian tribe to operate gaming activities in this State as permitted under federal law. The Governor shall report any gaming compact, or amendment thereto, to the Joint Legislative Commission on Governmental Operations.
2. The Department of Transportation, the Division of Adult Correction and Juvenile Justice of the Department of Public Safety, the State Highway Patrol, the Wildlife Resources Commission, the Division of Parks and Recreation in the Department of Natural and Cultural Resources, and the Division of Marine Fisheries in the Department of Environmental Quality shall deliver to the Governor by February 1 of each year detailed information on the agency's litter enforcement, litter prevention, and litter removal efforts. The Administrative Office of the Courts shall deliver to the Governor, by February 1 of each year, detailed information on the enforcement of the littering laws of the State, including the number of charges and convictions under the littering laws of the State. The Governor shall gather the information submitted by the respective agencies and deliver a consolidated annual report, on or before March 1 of each year, to the Environmental Review Commission, the Joint Legislative Transportation Oversight Committee, and the House of Representatives and the Senate Appropriations committees with jurisdiction over Natural and Economic Resources.

In every case where the Governor is authorized by statute to make an appointment to fill a State office, the Governor may also appoint to fill any vacancy occurring in that office, and the person the Governor appoints shall serve for the unexpired term of the office and until the person's successor is appointed and qualified.

In every case where the Governor is authorized by statute to appoint to fill a vacancy in an office in the executive branch of State government, the Governor may appoint an acting officer to serve

An acting officer appointed in accordance with this subsection may perform any act and exercise any power which a regularly appointed holder of such office could lawfully perform and exercise. All powers granted to an acting officer under this subsection shall expire immediately

a. Upon the termination of the incapacity of the officer in whose stead the person acts,

b. Upon the return of the officer in whose stead the person acts, or

c. Upon the selection and qualification, in the manner prescribed by statute, of a person to serve for the unexpired term.

The Governor may determine (after such inquiry as the Governor deems appropriate) that any of the officers referred to in this paragraph is physically or mentally incapable of performing the duties of the office. The Governor may also determine that such incapacity has terminated.

The compensation of an acting officer appointed pursuant to the provisions of this subdivision shall be fixed by the Governor.

History

(1868-9, c. 270, s. 27; 1870-1, c. 111; 1883, c. 71; Code, s. 3320; 1895, c. 28, s. 5; 1905, c. 446; Rev., s. 5328; C.S., s. 7636; 1955, c. 910, s. 3; 1959, c. 285; 1967, c. 1253; 1973, c. 1148; 1981 (Reg. Sess., 1982), c. 1191, ss. 3, 4, 68; 1983, c. 913, s. 46; 1985, c. 122, s. 5; c. 757, s. 181(a); 1985 (Reg. Sess., 1986), c. 955, ss. 106, 107; 1997-14, s. 3; 1997-443, s. 32.30(j); 1999-260, s. 4; 2001-487, s. 92; 2001-512, s. 9; 2001-513, s. 29(a); 2006-6, s. 6; 2006-79, s. 15; 2006-203, s. 114; 2006-259, s. 33(a); 2009-281, s. 1; 2011-145, ss. 19.1(g), (h); 2012-83, s. 58; 2015-241, s. 14.30(ccc); 2017-102, ss. 28, 45; 2017-186, s. 2(ssssss).)

Cross References. - As to the Governor's power to appoint, see N.C. Const., Art. III, §§ 5 and 7, and N.C. Const., Art. IV, § 19.

For provisions placing the Governor and Council of State in charge of the State's interest in railroads, canals and other works of internal improvements, see G.S. 124-1 et seq.

As to Class III gaming on Indian lands, see G.S. 14-292.2.

As to Indian Gaming Education Revenue Fund, see G.S. 143C-9-7.

As to investment of surplus State funds, see G.S. 147-69.1.

Editor's Note. - Session Laws 2001-512, s. 15, provides: "This act shall not be construed to obligate the General Assembly to appropriate any funds to implement the provisions of this act. Every agency to which this act applies shall implement the provisions of this act from funds otherwise appropriated or available to the agency."

Session Laws 2005-1, s. 1, provides that 2005-1 shall be known as "The Hurricane Recovery Act of 2005."

For Session Laws 2005-1, ss. 2.1 and 4, containing provisions for legislative findings regarding critical hurricane recovery needs not met by existing state and federal programs and funds, and establishment of the Disaster Relief Reserve Fund, see note at G.S. 143-1.

Session Laws 2006-6, s. 12, provides: "Prosecutions for offenses committed before the effective dates in this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions. If a final order by a court of competent jurisdiction prohibits possession or operation of video gaming machines by a federally recognized Indian tribe because that activity is not allowed elsewhere in this State, this act is void."

Session Laws 2018-2, s. 1(e), provides: "(e) No Conflict. - The legislative power of the State is vested in the General Assembly of the State of North Carolina. The Legislature must declare the policy of the law, fix legal principles which are to control in given cases, and provide standards for guidance in executing the law. The Governor shall take care that the laws be faithfully executed. Therefore, nothing in this section shall be construed, or is intended, to (i) be in conflict with the rights of any person or any mandatory provision of federal law or to infringe on the constitutional powers of the Governor to execute the laws of this State or (ii) preclude or supersede any mitigation agreement entered into under applicable State or federal law."

Effect of Amendments. - Session Laws 2006-6, s. 6, as amended by Session Laws 2006-259, s. 33(a), effective June 6, 2006, added the last sentence to subdivision (a)(14).

Session Laws 2006-79, s. 15, effective July 10, 2006, deleted "and August 1" following "February 1" from the first and third sentences, in the last sentence, substituted "annual" for "semiannual" and deleted "and September 1" following "March 1."

Session Laws 2006-203, s. 114, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, deleted the last sentence in the last paragraph of subdivision (a)(3), which read: "Prior to taking any action under this paragraph, the Governor may consult with the Advisory Budget Commission."

Session Laws 2009-281, s. 1, effective July 10, 2009, substituted "National Guard" for "national guard" in subdivision (a)(11).

Session Laws 2011-145, s. 19.1(g) and (h), effective January 1, 2012, in the first sentence of subsection (b), substituted "Division of Adult Correction of the Department of Public Safety, the Department of Public Safety" for "Department of Correction, the Department of Crime Control and Public Safety."

Session Laws 2012-83, s. 58, effective June 26, 2012, deleted "the Department of Public Safety," following "Department of Public Safety," and made minor punctuation changes in subsection (b).

Session Laws 2015-241, s. 14.30(ccc), effective July 1, 2015, in subsection (b), in the first sentence, substituted "Department of Natural and Natural Resources" for "Department of Environment and Natural Resources" and "Department of Environmental Quality" for "Department of Environment and Natural Resources, and substituted "Senate appropriations committees with jurisdiction over natural and economic resources" for "Senate Appropriations Subcommittees on Natural and Economic Resources" in the last sentence.

Session Laws 2017-102, s. 28, effective July 12, 2017, substituted "G.S. 143B-373(a)(1)" for "G.S. 143B-373(1)" in subdivision (a)(12).

Session Laws 2017-102, s. 45, effective July 12, 2017, substituted "Department of Natural and Cultural Resources" for "Department of Natural and Natural Resources [Department of Natural and Cultural Resources]" in subsection (b).

Session Laws 2017-186, s. 2(ssssss), effective December 1, 2017, inserted "and Juvenile Justice" in the first sentence of subsection (b).

§ 147-13. May convene Council of State; quorum; journal.

1. The Governor may convene the Council for consultation whenever he may deem it proper. In all meetings of the Council of State, five members exclusive of the Governor shall constitute a quorum.
2. The advice and proceedings of the Council of State shall be entered in a journal, to be kept for this purpose exclusively and signed by all members present. Any member of the Council may have entered in the journal his dissent to any part of the journal. The journal shall be maintained by the Governor and shall be placed before the General Assembly when called for by either house.

History

(1868-9, c. 270, s. 40; Code, s. 3335; Rev., s. 5329; C.S., s. 7637; 1971, cc. 32, 151.)

§ 147-13.1. Governor's power to consolidate State agencies.

1. The Governor is hereby authorized to direct the inauguration of studies to determine which agencies of the State conduct operations which are so nearly related to the operations of one or more other agencies that a consolidation would produce the same or a more efficient operational result at a reduction in cost, and to prepare recommendations to be presented to the 1971 General Assembly to effect such consolidations.
2. For purposes of conducting the study, the Governor is authorized to utilize funds available to him from private sources, or from federal or other governmental grants, to be matched, as may be required, by funds available within the existing Department of Administration budget.
3. The Governor shall direct that agencies which should be consolidated with or absorbed into other agencies having similar responsibilities and duties, as determined by the outcome of the study, shall be so consolidated or absorbed when, in his opinion, efficiency in State governmental operations will be increased thereby, or when such consolidation will result in a reduction in the cost of administering State activities without a reduction in the effectiveness of such operations; provided, however, that the Governor shall not direct such consolidation or combination as would diminish the duty or authority of any State agency or institution created by act of the General Assembly.

History

(1969, c. 1209, ss. 1-3.)

§ 147-14. Appointment of private secretary; official correspondence preserved; books produced before General Assembly.

The Governor shall appoint a private secretary, who shall enter in books kept for that purpose all such letters, written by and to the Governor, as are official and important, and such other letters as the Governor shall think necessary. Such books shall be deposited in the office of the executive by the private secretary, and there carefully preserved, and the Governor shall produce the same before the General Assembly whenever requested.

History

(1868-9, c. 270, ss. 33, 34; Code, ss. 3326, 3327; Rev., s. 5330; C.S., s. 7638.)

§ 147-15. Salary of private secretary.

The salary of the private secretary to the Governor shall be fixed by the Governor.

History

(R.C., c. 102, s. 12; 1856-7, p. 71, res.; 1881, c. 346; Code, ss. 1689, 3721; P.R. 1901, c. 405; 1903, c. 729; Rev., s. 2737; 1907, c. 830; 1911, c. 95; 1913, c. 1; 1915, c. 50; 1917, c. 214; C.S., s. 3859; 1921, c. 227; 1929, c. 322, ss. 1, 2; 1945, c. 45; 1953, c. 675, s. 22; 1955, c. 910, s. 4; c. 1313, s. 8; 1961, c. 738, s. 1; 1983, c. 717, s. 88.)

§ 147-15.1: Repealed by Session Laws 1995, c. 379, s. 11.

§ 147-16. Records kept; certain original applications preserved; notice of commutations.

1. The Governor shall cause to be kept the following records:
   1. A register of all applications for pardon, or for commutation of any sentence, with a list of the official signatures and recommendations in favor of such application.
   2. An account of all his official expenses and disbursements, including the incidental expenses of his department, and the rewards offered by him for the apprehension of criminals.
2. The Governor shall, unless otherwise requested by any person listed in subdivisions (1) through (4) of this subsection, provide notice of the commutation of any sentence within 20 days after the commutation by first-class mail to the following at the last known address:
   1. The victim or victims of the crime for which the sentence was imposed;
   2. The victims' spouse, children, and parents;
   3. Any other members of the victims' family who request in writing to be notified; and
   4. The Chairs of the Joint Legislative Oversight Committee on Justice and Public Safety.

These records and the originals of all applications, petitions, and recommendations and reports therein mentioned shall be preserved in the office of the Governor, but when applications for offices are refused he may, in his discretion, return the papers referring to the application.

History

(1868-9, c. 270, ss. 29, 30; 1870-1, c. 111; Code, ss. 3322, 3323; Rev., s. 5331; C.S., s. 7639; 1983, c. 913, s. 47; 1995, c. 507, s. 19.3(a); 1997-443, s. 21.4(b); 2001-138, s. 2; 2011-291, s. 2.54.)

Effect of Amendments. - Session Laws 2011-291, s. 2.54, effective June 24, 2011, substituted "Joint Legislative Oversight Committee on Justice and Public Safety" for "Joint Legislative Corrections, Crime Control, and Juvenile Justice Oversight Committee" in subdivision (b)(4).

§ 147-16.1. Publication of executive orders.

The Governor must submit Executive Orders to the Secretary of State, who must compile, index, and publish the Executive Orders. The Governor's office shall also send a copy of each executive order to the President of the Senate, to the Speaker of the House of Representatives, to the Principal Clerk of the House of Representatives and to the Principal Clerk of the Senate.

History

(1971, c. 1196; 1985, c. 479, ss. 150-152; c. 746, s. 8; 1991, c. 103, s. 1; 418, s. 14.)

§ 147-16.2. Duration of boards and councils created by executive officials; extensions.

1. Any executive order of the Governor that creates a board, committee, council, or commission expires two years after the effective date of the executive order, unless the Governor specifies an expiration date in the order; provided, however, that any such executive order that was in effect on July 1, 1983, expires on June 30, 1985, unless the Governor specified a different expiration date in any such order. The Governor may extend any such executive order before it expires for additional periods of up to two years by doing so in writing; copies of the writing shall be filed by the Governor with the Secretary of State and the Legislative Library.
2. Any other State board, committee, council, or commission created by the Governor or by any other State elective officer specified in Article III of the North Carolina Constitution expires two years after it was created; provided, however, that any such board, committee, council, or commission existing as of July 1, 1984, expires on June 30, 1985, unless it was due to expire on an earlier date. The elective officer creating any such board, committee, council, or commission may extend the board, committee, council, or commission before it expires for additional periods of up to two years by doing so in writing; copies of the writing shall be filed by the elective officer with the Secretary of State and the Legislative Library.
3. Any State board, committee, council, or commission created by any official in the executive branch of State government, other than by those officials specified in subsections (a) and (b) of this section, expires two years after it was created; provided, however, that any board, committee, council, or commission existing as of July 1, 1984, expires on June 30, 1985, unless it was due to expire on an earlier date. The Governor may extend any such board, committee, council, or commission before it expires for additional periods of up to two years by executive order; copies of the executive order shall be filed by the Governor with the Secretary of State and the Legislative Library.
4. Any elective officer specified in subsection (b) of this section and any other official in the executive branch of State government who creates a board, committee, council, or commission shall do so in writing and shall file copies of the writing with the Secretary of State and the Legislative Library.

The words, "official in the executive branch of State government," as used in this section, do not include officials of counties, cities, towns, villages, other municipal corporations or political subdivisions of the State or any agencies of such subdivision, or local boards of education, other local public districts, units or bodies of any kind, or community colleges as defined in G.S. 115D-2(2), or private corporations created by act of the General Assembly.

History

(1983, c. 733, s. 1; 1983 (Reg. Sess., 1984), c. 1053; 2004-203, s. 50(b).)

Effect of Amendments. - Session Laws 2004-203, s. 50.(b), effective August 17, 2004, deleted "State" preceding "Legislative Library" in subsections (a), (b), (c), and (d), and inserted "of this section" following "(b)" in subsections (c) and (d).

§ 147-16.3. Timely nominations if legislative body must confirm.

Notwithstanding any other provision of law, whenever:

1. A statute specifies that an office shall be filled by nomination by the Governor and confirmation by the General Assembly or by one house thereof, and
2. The statute specifies that the nominee shall take office without legislative action if the General Assembly adjourns without action being taken or fails to take action within a specified time, and
3. The Governor fails to nominate a person for the office by May 15 of a regular session of the General Assembly during an odd-numbered year or by June 7 of a regular session of the General Assembly during an even-numbered year, and
4. The appropriate legislative body does not act on the nomination before it next adjourns for more than 10 days or sine die,

the nominee shall serve only on an interim basis until 60 days after the convening of the next regular session of the General Assembly, subject to rejection or approval by the appropriate legislative body before that time.

History

(1987, c. 867, s. 4.)

§ 147-17. May employ counsel in cases wherein State is interested.

1. No department, officer, agency, institution, commission, bureau or other organized activity of the State which receives support in whole or in part from the State shall employ private counsel, except with the approval of the Governor. The Governor shall give his approval only if the Attorney General has advised him, as provided in subsection (b) of this section, that it is impracticable for the Attorney General to render the legal services. In any case or proceeding, civil or criminal, in or before any court or agency of this State or any other state or the United States, or in any other matter in which the State of North Carolina is interested, the Governor may employ private counsel as he may deem proper or necessary to represent the interest of the State, and may fix the compensation for their services, subject to the provisions of subsection (c1) of this section.
2. The Attorney General shall be counsel for all departments, officers, agencies, institutions, commissions, bureaus or other organized activities of the State which receive support in whole or in part from the State. Whenever the Attorney General shall advise the Governor that it is impracticable for him to render legal services to any State agency, officer, institution, commission, bureau or other organized activity, or to defend a State employee or former employee as authorized by Article 31A of Chapter 143 of the General Statutes, the Governor may authorize the employment of private counsel, as in his judgment, should be employed to render such services, and may fix the compensation for their services.
3. Subject to the provisions of subsection (c1) of this section, the Governor may direct that the compensation fixed under this section for private counsel shall be paid out of appropriations or other funds credited to the appropriate department, agency, institution, commission, bureau, or other organized activity of the State or out of the Contingency and Emergency Fund.
4. Notwithstanding subsection (c) of this section and G.S. 143C-4-4(b), no State funds shall be withdrawn from the State treasury to pay for litigation services provided by private counsel except as expressly authorized by an appropriation of the General Assembly. As used in this subsection, litigation services include legal work conducted in anticipation of, or in preparation for, any suit or action. As used in this section, private counsel includes any licensed attorney retained by, engaged by, or otherwise representing a department, officer, agency, institution, commission, bureau, or other organized activity of the State but does not include a licensed attorney who holds a permanent budgeted position in either the Department of Justice or the applicable department, officer, agency, institution, commission, bureau, or other organized activity of the State.
5. In those instances when a department, officer, agency, institution, commission, bureau, or other organized activity of the State which receives support in whole or in part from the State shall employ private counsel other than the Attorney General as permitted by law, such employed counsel shall allocate authority between counsel and the State client in conformance with Rule 1.2 of the North Carolina Rules of Professional Conduct. In those instances where more than one counsel is providing legal representation, counsel, or service on a legal matter on behalf of a State client, the client shall designate in writing which of its legal counsel possesses final decision-making authority on behalf of the State client, and other co-counsel shall, consistent with the Rules of Professional Conduct, cooperate with such designated lead counsel.

History

(1868-9, c. 270, s. 6; 1870-1, c. 111; 1873-4, c. 160, s. 2; 1883, c. 71; Code, ss. 3320, 3324; 1901, c. 744; Rev., s. 5332; C.S., s. 7640; 1925, c. 207, s. 3; 1961, c. 1007; 1963, c. 1009; 1967, c. 1092, s. 2; 1985, c. 479, s. 136; 2011-145, s. 22.4; 2017-57, s. 6.7(a).)

Cross References. - As to defense of State employees, see G.S. 143-300.2 through G.S. 143-300.5.

Editor's Note. - Session Laws 2015-241, s. 27.9, provides: "Of the amount appropriated for the 2015-2016 fiscal year to the Department of Administration, the Department shall allocate the sum of fifty thousand dollars ($50,000) in nonrecurring funds for hiring private counsel for pending litigation to confirm the State's title to certain lands brought pursuant to the Department's authority under G.S. 146-2. In the discretion of the Department, G.S. 114-2.3 and G.S. 147-17(a) through (c) shall not apply to the Department if the Department is engaged in litigation for which funding is provided in this section. The Secretary may retain private counsel to represent the Department to be paid with State funds appropriated in this section. If private counsel is to be so retained to represent the Department, the Secretary shall designate lead counsel who shall possess final decision-making authority with respect to the representation, counsel, or service for the Department. Other counsel for the Department shall, consistent with the Rules of Professional Conduct, cooperate with such designated lead counsel."

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2015-2017 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2015-2017 fiscal biennium."

Session Laws 2015-241, s. 33.6, is a severability clause.

Session Laws 2017-57, s. 15.18(b), (c), provides: "(b) Notwithstanding G.S. 147-17 and G.S. 114-2.3, the North Carolina Industrial Commission is authorized to use the funds carried forward under subsection (a) of this section to employ and supervise private counsel.

"(c) Notwithstanding G.S. 1-521, 147-17, and 114-2.3, of the funds appropriated to the North Carolina Industrial Commission in this act, the sum of three hundred thousand dollars ($300,000) for the 2017-2018 fiscal year may be used for private legal services, litigation-related expenses, and the defense of any member in his or her official capacity arising from S.L. 2016-125. The funds allocated in this section shall not revert."

Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'"

Session Laws 2017-57, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2017-2019 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2017-2019 fiscal biennium."

Session Laws 2017-57, s. 39.6, is a severability clause.

Effect of Amendments. - Session Laws 2011-145, s. 22.4, effective July 1, 2011, added subsection (d).

Session Laws 2017-57, s. 6.7(a), effective July 1, 2017, in subsection (a) substituted "private counsel" for "any counsel" in the first sentence, substituted "private counsel" for "such special counsel"; substituted "services, subject to the provisions of subsection (c1) of this section." for "services" in the last sentence; substituted "private counsel" for "such counsel" in subsection (b); in subsection (c), added "Subject to the provisions of subsection (c1) of this section," to the beginning of the first sentence and substituted "private counsel" for "special counsel"; added subsection (c1); and added "private" prior to "counsel" in the first sentence of subsection (d).

Legal Periodicals. - For article, "Student Legal Services at the University of North Carolina at Chapel Hill," see 7 N.C. Cent. L.J. 286 (1976).

For article, "The Common Law Powers of the Attorney General of North Carolina," see 9 N.C. Cent. L.J. 1 (1977).

For survey of 1984 administrative law, "A Declining Role for the Attorney General," see 63 N.C.L. Rev. 1051 (1985).

§ 147-18. To designate "Indian Day."

The Governor of North Carolina is hereby empowered to set aside some day which shall be called "Indian Day" on which Indian lore shall receive emphasis in the public schools of the State and among the citizens of North Carolina.

History

(Resolutions 54, 1937, p. 957.)

§ 147-19. To appoint a day of thanksgiving.

The Governor is directed to set apart a day in every year, and by proclamation give notice thereof, as a day of solemn and public thanksgiving to Almighty God for past blessings and of supplication for His continued kindness and care over us as a State and a nation.

History

(1868-9, c. 270, s. 39; Code, s. 3334; Rev., s. 5333; C.S., s. 7641.)

§ 147-20: Repealed by Session Laws 1955, c. 867, s. 13.

§ 147-21. Form and contents of applications for pardon.

Every application for pardon must be made to the Governor in writing, signed by the party convicted, or by some person in his behalf. And every such application shall contain the grounds and reasons upon which the executive pardon is asked, and shall be in every case accompanied by a certified copy of the indictment, and the verdict and judgment of the court thereon.

History

(1869-70, c. 171; 1870-1, c. 61; Code, s. 3336; Rev., s. 5334; C.S., s. 7642.)

Cross References. - As to the Governor's power to pardon, see N.C. Const., Art. III, § 5.

§ 147-23. Conditional pardons may be granted.

In any case in which the Governor is authorized by the Constitution to grant a pardon he may, upon the petition of the prisoner, grant it, subject to such conditions, restrictions, and limitations as he considers proper and necessary, and he may issue his warrant to all proper officers to carry such pardon into effect in such manner as he thinks proper.

History

(1905, c. 356; Rev., s. 5335; C.S., s. 7643.)

§ 147-24. Governor's duties when conditions of pardon violated.

If a prisoner who has been pardoned upon conditions to be observed and performed by him violates such conditions, or any of them, the Governor, upon receiving information of such violation, shall forthwith cause him to be arrested and detained until the case can be examined by him. The Governor shall examine the case of such prisoner, and if it appears by his own admission or by such evidence as the Governor may require that he has violated the conditions of his pardon, the Governor shall order him remanded and confined for the unexpired term of his sentence; said confinement, if the prisoner is under any other sentence of imprisonment at the time of said order, to begin upon expiration of such sentence. In computing the period of his confinement the time between the conditional pardon and subsequent arrest shall not be taken to be a part of the time of his sentence. If it appears to the Governor that he has not broken the conditions of his conditional pardon he shall be released and his conditional pardon shall remain in force.

History

(1905, c. 356, ss. 2, 3; Rev., s. 5336; C.S., s. 7644.)

Cross References. - As to the Governor's power to pardon, see N.C. Const., Art. III, § 5.

Legal Periodicals. - For review of this section, see 1 N.C.L. Rev. 47 (1923).

§ 147-25. Duty of sheriff and clerk on pardon granted.

If a prisoner is pardoned conditionally or unconditionally, or his punishment is commuted, the officer to whom the warrant for such purpose is issued shall, as soon as may be after executing it, make return thereof, signed by him, with his doing thereon, to the Governor's office, and shall file in the office of the clerk of the court in which the offender was convicted an attested copy of the warrant and return, and the clerk shall file the same in his office and subjoin a brief abstract thereof to the record of the conviction and sentence, and at the next regular term of said court said warrant shall be entered upon the minutes of the court.

History

(1905, c. 356, s. 4; Rev., s. 5337; C.S., s. 7645.)

§ 147-26. To procure great seal of State; its description.

The Governor shall procure for the State a seal, which shall be called the great seal of the State of North Carolina, and shall be two and one-quarter inches in diameter, and its design shall be a representation of the figures of Liberty and Plenty, looking toward each other, but not more than half-fronting each other and otherwise disposed as follows: Liberty, the first figure, standing, her pole with cap on it in her left hand and a scroll with the word "Constitution" inscribed thereon in her right hand. Plenty, the second figure, sitting down, her right arm half extended towards Liberty, three heads of grain in her right hand, and in her left, the small end of her horn, the mouth of which is resting at her feet, and the contents of the horn rolling out.

The background on the seal shall contain a depiction of mountains running from left to right to the middle of the seal and an ocean running from right to left to the middle of the seal. A side view of a three-masted ship shall be located on the ocean and to the right of Plenty. The date "May 20, 1775" shall appear within the seal and across the top of the seal. The date "April 12, 1776" shall appear within the seal and across the bottom of the seal. The words "esse quam videri" shall appear at the bottom around the perimeter. The words "THE GREAT SEAL of the STATE of NORTH CAROLINA" shall appear around the perimeter. No other words, figures or other embellishments shall appear on the seal.

It shall be the duty of the Governor to file in the office of Secretary of State an impression of the great seal, certified to under his hand and attested by the Secretary of State, which impression so certified the Secretary of State shall carefully preserve among the records of his office.

History

(1868-9, c. 270, s. 35; 1883, c. 392; Code, ss. 3328, 3329; 1893, c. 145; Rev., s. 5339; C.S., s. 7646; 1971, c. 167, s. 1; 1983, c. 257, s. 1.)

Opinions of Attorney General

As to the great seal of the State of North Carolina, see opinion of Attorney General to Dr. H.G. Jones, Department of Archives and History, 41 N.C.A.G. 214 (1971).

§ 147-27. Affixing great seal a second time to public papers.

In all cases where any person may find it necessary to have the great seal of the State put again to any public paper, other than a grant for lands, he may prefer his petition to the Governor and Council, who shall, if they deem the same proper, direct the seal to be put thereto.

History

(1868-9, c. 270, s. 38; Code, s. 3333; Rev., s. 5338; C.S., s. 7647.)

§ 147-28. To procure seals for departments and courts.

The Governor shall also procure a seal for each department of the State government to be used for attesting and authenticating grants, proclamations, commissions, and other public acts, in such manner as may be directed by law and the usage established in the public offices; also a seal for every court of record in the State, for the purpose of authenticating the papers and records of such court. All such seals shall be delivered to the proper officers, who shall give a receipt therefor and be accountable for their safekeeping.

History

(1868-9, c. 270, ss. 35, 37; 1883, c. 71; Code, ss. 3328, 3332; Rev., s. 5340; C.S., s. 7648.)

§ 147-29. Seal of Department of State described.

The seal of the Department of State shall be two inches in diameter and shall be of the same design as the great seal of the State, with the words "State of North Carolina, Department of State," surrounding the figures.

History

(1883, c. 238; Code, s. 3330; Rev., s. 5341; C.S., s. 7649.)

§ 147-30. To provide new seals when necessary.

Whenever the great seal of the State shall be lost or so worn or defaced as to render it unfit for use, the Governor shall provide a new one and when such new one is provided the former one, if it can be found, shall be destroyed in the presence of the Governor. Whenever the seal of any department of the State shall be lost or so worn or defaced as to render it unfit for use, a new seal shall be provided by the head of the department and the former one, if it can be found, shall be destroyed in the presence of the head of the department. Whenever the seal of any court of record shall be lost or so worn or defaced as to render it unfit for use, the board of county commissioners of the county in which such court is situate shall provide a new one and the old one, if it can be found, shall be destroyed in the presence of the chairman of the board of county commissioners of such county.

History

(1868-9, c. 270, s. 36; Code, s. 3331; Rev., s. 5342; C.S., s. 7650; 1943, c. 632.)

§ 147-31: Repealed by Session Laws 1983, c. 913, s. 48.

§ 147-31.1. Office space and expenses for Governor-elect and Lieutenant Governor-elect; and other Council of State members-elect.

1. The Department of Administration, upon request of the Governor-elect and Lieutenant Governor-elect, made after the general election for these respective offices, is empowered and directed to provide suitable office space and office staff for each such official for the period between the general election and inauguration.
2. The Department of Administration, upon request of any other member-elect of the Council of State who is not an incumbent in that office, shall provide for such persons suitable office space and office staff for each such official for the period between the general election and inauguration.

The Department of Administration shall provide, for the fiscal years in which general election and inauguration of the Governor and Lieutenant Governor shall occur, such sums, not in excess of eighty thousand dollars ($80,000) for the Governor-elect, and not in excess of ten thousand dollars ($10,000) for the Lieutenant Governor-elect, as may be necessary for the salary of the staffs and the payment of office expenses of each such official during such interim.

The Department of Administration shall provide, for the fiscal years in which general election and inauguration of such persons occurs, ten thousand dollars ($10,000) for the salary of the staffs and the payment of office expenses of each such official during such interim. If there are more than two such persons, such services and payments shall be made from the Contingency and Emergency Fund upon approval of the Council of State.

History

(1965, c. 407; 1987 (Reg. Sess., 1988), c. 1086, s. 48.)

§ 147-32. Compensation for surviving spouses of Governors.

All surviving spouses of Governors of the State of North Carolina, who make written request to the Director of the Budget, shall be paid the sum of twelve thousand dollars ($12,000) a year in equal monthly installments, out of the State Treasury upon warrants duly drawn thereon. This compensation shall terminate upon the subsequent remarriage of the surviving spouse.

History

(1937, c. 416; 1947, c. 897, ss. 1, 2; 1955, c. 1314; 1977, c. 554; 1981 (Reg. Sess., 1982), c. 1282, s. 63; 1987, c. 738, s. 40.)

§ 147-33. Compensation and expenses of Lieutenant Governor.

The salary of the Lieutenant Governor shall be set by the General Assembly in the Current Operations Appropriations Act. In addition to this salary, the Lieutenant Governor shall be paid an annual expense allowance in the sum of eleven thousand five hundred dollars ($11,500). In addition to the salary set by the General Assembly in the Current Operations Appropriations Act, longevity pay shall be paid on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.

History

(1911, c. 103; C.S., s. 3862; 1945, c. 1; 1953, c. 1, s. 1; 1963, c. 1050; 1967, c. 1170, s. 1; 1971, c. 913; 1977, c. 802, s. 42.6; 1977, 2nd Sess., c. 1136, s. 40; 1979, 2nd Sess., c. 1137, s. 32; 1983, c. 761, s. 211; 1983 (Reg. Sess., 1984), c. 1034, s. 164; 1987, c. 738, s. 32(b); 2013-382, s. 9.1(c).)

Editor's Note. - Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:

"(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.'

"(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.'

"(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'"

Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary."

Effect of Amendments. - Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "North Carolina Human Resources Act" for "State Personnel Act" in the last sentence.

§ 147-33.1. Short title.

This Article may be cited as the "North Carolina Emergency War Powers Act."

History

(1943, c. 706, s. 1; 1959, c. 337, s. 6.)

§ 147-33.2. Emergency war powers of the Governor.

Upon the Governor's own initiative, or on the request or recommendation of the President of the United States, the United States Army, Navy, or any other branch of the Armed Forces of the United States, the federal Director of Civilian Defense, or any other federal officer, department or agency having duties and responsibilities related to the prosecution of the war or the health, welfare, safety and protection of the civilian population, whenever in the Governor's judgment any such action is in the public interest and is necessary for the protection of the lives or property of the people of the State, or for the defense and security of the State or nation, or for the proper conduct of the war and the successful prosecution thereof, the Governor may, with the approval of the Council of State, at any time and from time to time during the existing state of war:

1. Formulate and execute plans for:
   1. The inventory, mobilization, conservation, distribution or use of food, fuel, clothing and other necessaries of life and health, and of land, labor, materials, industries, facilities and other resources of the State necessary or useful in the prosecution of the war;
   2. Organization and coordination of civilian defense in the State in reasonable conformity with the program of civilian defense as promulgated from time to time by the Office of Civilian Defense of the federal government; and, further, to effectuate such plans for civilian defense in such manner as to promote and assure the security, protection and mobilization of the civilian population of the State for the duration of the war and in the interest of State and national defense.
2. Order and carry out blackouts, radio silences, evacuations and all other precautionary measures against air raids or other forms of enemy action, and suppress or otherwise control any activity which may aid or assist the enemy.
3. Mobilize, coordinate and direct the activities of the police, fire fighting, health, street and highway repair, public utility, medical and welfare forces and services of the State, of the political subdivisions of the State, and of private agencies and corporations, and formulate and execute plans for the interchange and use of such forces and services for the mutual aid of the people of the State in cases of air raid, sabotage or other enemy action, fire, flood, famine, violence, riot, insurrection, or other catastrophe or emergency.
4. Prohibit, restrict, or otherwise regulate and control the flow of vehicular and pedestrian traffic, and congregation of persons in public places or buildings, lights and noises of all kinds and the maintenance, extension and operation of public utility and transportation services and facilities.
5. Accept, or authorize any officer or department of the State to accept, from the federal government or any federal agency or instrumentality, or from any other source, grants of funds and grants or loans of equipment, materials, supplies or other property for war or defense purposes, subject to the terms and conditions appertaining to such grants and loans.
6. Authorize any department or agency of the State to lease or lend to the United States Army, Navy, or any other branch of the Armed Forces of the United States, any real or personal property of the State upon such terms and conditions as the Governor may impose, or, on behalf of the State, to make a contract directly therefor.
7. Authorize the temporary transfer of personnel of the State for employment by the United States Army, Navy, or any other branch of the Armed Forces of the United States and fix the terms and conditions of such transfers.
8. At any time when the General Assembly is not in session, suspend, or modify, in whole or in part, generally or in its application to certain classes of persons, firms, corporations or circumstances, any law, rule or regulation with reference to the subjects hereinafter enumerated, when the Governor shall find and proclaim after such study, investigation or hearings as the Governor may direct, make or conduct, that the operation, enforcement or application of such law, or any part thereof, materially hinders, impedes, delays or interferes with the proper conduct of the war; said subjects being as follows:
   1. The use of the roads, streets, and highways of the State, with particular reference to speed limits, weights and sizes of motor vehicles, regulations of automobile lights and signals, transportation of munitions or explosives and parking or assembling of automobiles on highways or any other public place within the State; provided that any changes in the laws referred to in this subdivision shall be first approved by the Board of Transportation and the Commissioner of Motor Vehicles of the State;
   2. Public health, insofar as suspension or modification of the laws in reference thereto may be stipulated by the United States Public Health Service or other authoritative agency of the United States government as being essential in the interest of national safety and in the successful prosecution of the war effort; provided that such suspension or modification of public health laws shall first be submitted to and approved by the Commission for Public Health;
   3. Labor and industry; provided, however, that any suspension or modification of laws regulating labor and industry shall be only such as are certified by the Commissioner of Labor of the State as being necessary in the interest of national safety and in the furtherance of the war program; and provided further that any such changes as may result in an increase in the hours of employment over and above the limits of the existing statutory provisions shall carry provision for adequate additional compensation; and provided, further, that no changes in such laws or regulations shall be made as affecting existing contracts between labor and management in this State except with the approval of the contracting parties;
   4. Whenever it should be certified by the Adjutant General of the State that emergency conditions require such procedure, the Governor, with the approval of the Council of State, shall have the power to call up and mobilize the State militia; to provide transportation and facilities for mobilization and full utilization of the State militia, in such emergency; and to allocate from the Contingency and Emergency Fund such amounts as may be necessary for such purposes during the period of such emergency;
   5. Manufacture, sale, transportation, possession and use of explosives or fireworks, or articles in simulation thereof, and the sale, use and handling of firearms;
9. Cooperate with agencies established by or pursuant to the laws of the United States and the several states for civilian protection and the promotion of the war effort, and coordinate and direct the work of the offices and agencies of the State having duties and responsibilities directly connected with the war effort and the protection of the civilian population.
10. Aid in the administration and enforcement in this State of any rationing, freezing, price-fixing or similar order or regulation duly promulgated by any federal officer or agency under or pursuant to the authority of any act of Congress or of any order or proclamation of the President of the United States, by making temporarily available personnel and facilities of the State to assist in the administration thereof and/or by adopting and promulgating in this State an order or regulation substantially embodying the provisions of such federal order or regulation, filing the same in the office of the Secretary of State, prescribing the penalties for the violation thereof, and specifying the State and local officers and agencies to be charged with the enforcement thereof.
11. Formulate and execute plans and adopt rules for:
    1. The organization, recruiting, training, maintenance and operation of aircraft warning services, observation and listening posts, information and control centers and such other services and facilities as may be necessary for the prompt and accurate reception and transmission of air-raid warnings and signals;
    2. The organization, recruiting, training, equipment, identification, conduct, powers, duties, rights, privileges and immunities of air-raid wardens, auxiliary police, auxiliary firemen and of the members of all other auxiliary defense and civilian protection forces and agencies.
12. Adopt, promulgate, publicize and enforce such orders, rules and regulations as may be necessary for the proper and effective exercise of the powers granted by this Article, and amend or rescind the same.
13. Hold and conduct hearings, administer oaths and take testimony, issue subpoenas to compel the attendance of witnesses and the production of relevant books, papers, records or documents, in connection with any investigation made by the Governor under the authority of this Article.

History

(1943, c. 706, s. 2; 1959, c. 337, s. 6; 1973, c. 476, s. 128; c. 507, s. 5; 1999-456, s. 33(f); 2007-182, s. 2; 2011-183, s. 107.)

Effect of Amendments. - Session Laws 2007-182, s. 2, effective July 5, 2007, substituted "Commission for Public Health" for "Commission for Health Services" in subdivision (8)b.

Session Laws 2011-183, s. 107, effective June 20, 2011, in the introductory paragraph, twice substituted "the Governor's" for "his" and substituted "the United States Army, Navy, or any other branch of the Armed Forces" for "the army, navy or any other branch of the armed forces"; in subdivisions (6) and (7), substituted "the United States Army, Navy, or any other branch of the Armed Forces" for "the army, navy or any other branch of the armed forces"; in the introductory paragraph of subdivision (8), twice substituted "the Governor" for "he"; in subdivision (8)d., made a minor stylistic change; and in subdivision (13), substituted "the Governor" for "him."

§ 147-33.3. Orders, rules and regulations.

All orders, rules and regulations promulgated by the Governor pursuant to this Article shall have the full force and effect of law from and after the date of the filing of a duly authenticated copy thereof in the office of the Secretary of State. All laws, ordinances, rules and regulations, insofar as they are inconsistent with the provisions of this Article or of any rule, order or regulation made pursuant to this Article, shall be suspended during the period of time and to the extent that such conflict exists. A violation of any such order, rule or regulation, unless otherwise provided therein, shall be deemed a Class 1 misdemeanor.

History

(1943, c. 706, s. 3; 1959, c. 337, s. 6; 1993, c. 539, s. 1054; 1994, Ex. Sess., c. 24, s. 14(c).)

§ 147-33.4. Immunity.

Neither the State nor any political subdivision thereof, nor the agents or representatives of the State or any political subdivision thereof, under any circumstances, nor any individual, firm, partnership, corporation or other entity, or any agent thereof, in good faith complying with or attempting to comply with any order, rule or regulation made pursuant to this Article, shall be liable for the death or any injury to persons or for any damage to property as the result of any air raid, invasion, act of sabotage, or other form of enemy action, or of any action taken under this Article or such order, rule or regulation. This section shall not be construed to impair or affect the right of any person to receive any benefits or compensation to which he may otherwise be entitled under Workers' Compensation Law, any pension law, or any other law, or any act of Congress, or any contract of insurance or indemnification.

History

(1943, c. 706, s. 4; 1959, c. 337, s. 6; 1991, c. 636, s. 3.)

§ 147-33.5. Federal action controlling.

All action taken under this Article and all orders, rules and regulations made pursuant thereto in any field or with respect to any subject matter over which the United States Army or Navy or any other department or agency of the United States government has duly taken jurisdiction shall be taken or made with due consideration to the orders, rules, regulations, actions, recommendations and requests of such department or agency and shall be consistent therewith. Blackouts, radio silences and evacuations shall be carried out only in such areas, at such times, and for such periods as shall be designated by air-raid warnings or orders with respect thereto issued by the United States Army, or its duly designated agency, and only under such conditions and in such manner as shall be consistent with such warning or order, and practice blackouts shall be held only when and as authorized by the United States Army or its duly designated agency.

History

(1943, c. 706, s. 5; 1959, c. 337, s. 6; 2011-183, s. 127(b).)

Effect of Amendments. - Session Laws 2011-183, s. 127(b), effective June 20, 2011, substituted "United States Army or Navy" for "army or navy" in the first sentence, and substituted "United States Army" for "army" twice in the last sentence.

§ 147-33.6. Construction of Article.

This Article shall be construed liberally to effectuate its purposes.

History

(1943, c. 706, s. 6; 1959, c. 337, s. 6.)

§§ 147-33.7 through 147-33.11: Reserved for future codification purposes.

§§ 147-33.12 through 147-33.21: Repealed by Session Laws 1987, c. 841, s. 5.

Cross References. - For the North Carolina Housing Trust and Oil Overcharge Act, see G.S. 122E-1 et seq.

§§ 147-33.30 through 147-33.71: Repealed by Session Laws 2000-137, s. 1(a), effective July 20, 2000.

Cross References. - For the Juvenile Justice Section of the Division of Adult Correction and Juvenile Justice of the Department of Public Safety, see G.S. 143B-800 et seq.

Editor's Note. - Repealed G.S. 147-33.33, 147-33.34, 147-33.40, 147-33.48, 147-33.49, 147-33.52 to 147-33.54, 147-33.56 to 147-33.59, 147-33.68, and 147-33.69 had been reserved for future codification purposes.

§ 147-33.72: Reserved for future codification purposes.

§§ 147-33.72A through 147-33.72F: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.72A: 2004-129, s. 2; 2011-266, s. 1.9(b); repealed by 2015-241, s 7A.2(a), effective September 18, 2015. G.S. 147-33.72B: 2004-129, s. 2; 2013-329, s. 1; repealed by 2015-241, s 7A.2(a), effective September 18, 2015. G.S. 147-33.72C: 2004-129, s. 2; 2013-188, s. 2; 2013-329, s. 2; 2013-360, s. 7.7(d); repealed by 2015-241, s 7A.2(a), effective September 18, 2015. G.S. 147-33.72D: 2004-129, s. 2; 2007-282, s. 1; repealed by 2015-241, s 7A.2(a), effective September 18, 2015. G.S. 147-33.72E: 2004-129, s. 2; 2007-281, s. 1; repealed by 2015-241, s 7A.2(a), effective September 18, 2015. G.S. 147-33.72F: 2004-129, s. 2; 2006-264, s. 71; repealed by 2015-241, s 7A.2(a), effective September 18, 2015.)

Cross References. - For current provisions as to the Department of Information Technology, see Article 15 of Chapter 143B (G.S. 143B-1320 et seq.).

Editor's Note. - Former G.S. 147-33.72A pertained to the purpose of the State Information Technology Management. Former G.S. 147-33.72B pertained to the planning and financing of State information technology resources. Former G.S. 147-33.72C pertained to project approval standards. Former G.S. 147-33.72D pertained to Agency/State CIO Dispute Resolution. Former G.S. 147-33.72E pertained to project management standards. Former G.S 147-33.72F pertained to procurement procedures and costs savings.

Effect of Amendments. - Session Laws 2011-266, s. 1.9(b), effective July 1, 2011, deleted subdivision (4), which read: "Create an Information Technology Advisory Board."

§ 147-33.72G: Repealed by Session Laws 2011-266, s. 1.9(a), effective July 1, 2011.

History

(§ 147-33.72G: 2004-129, s. 2; 2007-189, s. 4; repealed by 2011-266, s. 1.9(a), effective July 1, 2011.)

Editor's Note. - Former G.S. 147-33.72G pertained to the Information Technology Advisory Board.

§ 147-33.72H: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015

History

(2004-129, s. 2; 2011-266, s. 1.9(c); 2013-329, s. 3; repealed by 2015-241, s. 7A.2(a).)

Editor's Note. - Former G.S. 147-33.72H pertained to the Information Technology Fund.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

Effect of Amendments. - Session Laws 2011-266, s. 1.9(c), effective July 1, 2011, substituted "made by the CIO" for "made by the State CIO in consultation with the Information Technology Advisory Board" in the third sentence.

Session Laws 2013-329, s. 3, effective July 23, 2013, added the present second sentence.

§§ 147-33.73, 147-33.74: Reserved for future codification purposes.

PART 1A. ORGANIZATION OF OFFICE OF INFORMATION TECHNOLOGY SERVICES.

§§ 147-33.75 through 147-33.77: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.75: 1999-434, s. 9; 2000-174, s. 2; 2004-129, ss. 1, 9; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.76: 1999-434, s. 10; 2000-174, s. 2; 2004-129, ss. 1, 3; 2012-142, s. 25.1(e); 2013-382, s. 9.1(c); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33-77: 1989, c. 239, s. 5; c. 770, s. 60; 1989 (Reg. Sess., 1990), c. 1024, s. 36; 1991 (Reg. Sess., 1992), c. 900, s. 14(g); c. 1030, s. 51.14; 1997-148, ss. 5, 6; 1999-347, s. 2; 1999-434, s. 27; 2000-174, s. 2; 2004-129, s. 1; 2007-155, s. 1; 2007-189, ss. 1, 5.1; 2013-329, s. 4; 2013-382, ss. 4.2, 9.1(c); 2013-410, s. 47.2(b); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Cross References. - For current provisions as to the Department of Information Technology, see Article 15 of Chapter 143B ( § 143B-1320 et seq.).

Editor's Note. - Former G.S. 147-33.75 pertained to the housing of the Office of Information Technology Services within the Office of the Governor. Former G.S. 147-33.76 pertained to qualification, appointment, and duties of the State Chief Information Officer. Former G.S. 147-33.77 pertained to the organization and operation of the Office of Information Technology Services.

Effect of Amendments. - Session Laws 2004-129, s. 9, effective July 1, 2004, substituted "Office located in" for "Transfer to" in the section heading; and substituted "shall be housed" for "of the Department of Commerce and the Information Resource Management Commission are hereby transferred to" in subsection (a).

§§ 147-33.78, 147-33.79: Repealed by Session Laws 2004-129, ss. 4, 5.

PART 2. GENERAL POWERS AND DUTIES.

§§ 147-33.80 through 147-33.84: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.80: 1999-434, s. 10; 2000-174, s. 2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.81: 1999-434, s. 9; 2000-174, s. 2; 2001-424, s. 15.2(a); 2013-333, s. 1(a), (b); 2013-410, s. 24; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33-82: 1999-434, s. 10; 2000-174, s. 2; 2001-424, s. 15.2(b); 2002-126, s. 27.2(a); 2003-153, ss. 1(a), 1(b); 2004-129, ss. 10, 11, 12, 13; 2011-266, s. 1.9(d); 2012-142, s. 6A.2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015; G.S. 147-33-83: 1989, c. 239, s. 5; c. 770, s. 60; 1989 (Reg. Sess., 1990), c. 1024, s. 36; 1991 (Reg. Sess., 1992), c. 900, s. 14(g); c. 1030, s. 51.14; 1997-148, ss. 5, 6; 1999-347, s. 2; 1999-434, s. 27; 2000-174, s. 2; 2004-129, s. 15; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33-84: 1989, c. 239, s. 5; c. 770, s. 60; 1989 (Reg. Sess., 1990), c. 1024, s. 36; 1991 (Reg. Sess., 1992), c. 900, s. 14(g); c. 1030, s. 51.14; 1997-148, ss. 5, 6; 1999-347, s. 2; 1999-434, s. 27; 2000-174, s. 2; 2004-129, s. 16; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Cross References. - For current provisions as to the Department of Information Technology, see Article 15 of Chapter 143B (G.S. 143B-1320 et seq.).

Editor's Note. - Former G.S. 147-33.80 pertained to exempt agencies. Former G.S. 147-33.81 pertained to definitions. Former G.S. 147-33.82 pertained to the functions of the Office of Information Technology Services. Former G.S. 147-33.83 pertained to information resources centers and services. Former G.S. 147-33.84 pertained to deviations authorized for Department of Revenue; agency requests for deviations.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

§§ 147-33.85, 147-33.86: Repealed by Session Laws 2004-129, ss. 17, 18, effective July 1, 2004.

§§ 147-33.87 through 147-33.90: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.87: 1999-434, s. 10; 2000-140, s. 93.1(i); 2000-174, s. 2; 2001-424, s. 12.2(b); 2004-129, s. 19; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.87A: 2012-142, s. 6A.12(a), (c); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.88: 1999-434, s. 10; 2000-174, s. 2; 2004-129, s. 20; 2013-360, s. 7.2 (a); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.89: 2003-153, s. 2; 2004-129, s. 21; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.90: 2003-172, s. 1; 2004-129, s. 22; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Editor's Note. - Former G.S. 147-33.87 pertained to the financial reporting and accountability for information technology investments and expenditures. Former G.S. 147-33.87A pertained to the statewide electronic portal; annual report. Former G.S. 147-33.88 pertained to information technology budget development and reports. Former G.S. 147-33-89 pertained to business continuity planning. Former G.S. 147-33.90 pertained to the analysis of State agency legacy systems.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

PART 3. TELECOMMUNICATIONS SERVICES.

§§ 147-33.91 through 147-33.93: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.91: 1985 (Reg. Sess., 1986), c. 1024, s. 1; 1987, c. 738, s. 59(a)(2); 1989, c. 239, s. 4; 1989 (Reg. Sess., 1990), c. 1024, s. 37; 1991, c. 542, s. 14; 1993, c. 512, s. 2; 1993 (Reg. Sess., 1994), c. 777, s. 1(a); 1997-148, ss. 3, 6; 1999-347, s. 4; 1999-434, s. 29; 2000-174, s. 2; 2004-129, s. 23; 2013-188, s. 3; 2014-100, s. 7.12(a); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.92: 1985 (Reg. Sess., 1986), c. 1024, s. 1; 1987, c. 738, s. 59(a)(2); 1989, c. 239, s. 4; 1989 (Reg. Sess., 1990), c. 1024, s. 37; 1991, c. 542, s. 14; 1993, c. 512, s. 2; 1993 (Reg. Sess., 1994), c. 777, s. 1(a); 1997-148, ss. 3, 6; 1999-347, s. 4; 1999-434, s. 29; 2000-174, s. 2; 2004-203, s. 37(b); 2013-188, s. 4; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33-93: 2001-142, s. 1; 2009-136, s. 1; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Editor's Note. - Former G.S. 147-33.91 pertained to the telecommunications services; duties of State Chief Information Officer with respect to State agencies. Former G.S. 147-33.92 pertained to the telecommunications services for local governmental entities and other entities. Former G.S. 147-33.93 pertained to the fees; dispute resolution panel.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

§ 147-33.94: Reserved for future codification purposes.

PART 4. PROCUREMENT OF INFORMATION TECHNOLOGY.

§§ 147-33.95 through 147-33.103: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.95: 1999-434, s. 10; 2000-174, s. 2; 2002-107, s. 4; 2002-159, s. 64(a); 2004-129, s. 24; 2009-451, s. 6.14A(a); 2013-333, s. 2; 2013-418, s. 2(e); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.96: 1999-434, s. 10; 2000-174, s. 210-241; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.97: 1999-434, s. 10; 2000-174, s. 2; 2006-264, s. 72(a); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.98: 1999-434, s. 10; 2000-174, s. 2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.99: 1999-434, s. 10; 2000-174, s. 2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.100: 1999-434, s. 10; 2000-174, s. 2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.101: 1999-434, s. 10; 2000-174, s. 2; 2004-129, s. 25; 2007-484, s. 20; 2013-234, s. 5; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.102: 1999-434, s. 10; 2000-174, s. 2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.103: 1999-434, s. 10; 2000-174, s. 2; 2004-129, s. 26; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Editor's Note. - Former G.S. 147-33.95 pertained to procurement of information technology. Former G.S. 147-33.96 pertained to the restriction on State agency contractual authority with regard to information technology; local governments. Former G.S. 147-33.97 pertained to the information technology procurement policy; reporting requirements. Former G.S. 147-33.98 pertained to the unauthorized use of public purchase or contract procedures for private benefit prohibited. Former G.S. 147-33.99 pertained to the financial interest of officers in sources of supply; acceptance of bribes. Former G.S. 147-33.100 pertained to the certification that information technology bid submitted without collusion. Former G.S. 147-33.101 pertained to the award recommendation; State Chief Information Officer action. Former G.S. 147-33.102 pertained to the penalty for violations; costs. Former G.S. 147-33.103 pertained to the Attorney General contract assistance; rule-making authority.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

§ 147-33.104: Repealed by Session Laws 2010-67, s. 1(a)-(d), effective July 1, 2010.

History

(2007-550, s. 16.5; 2008-198, s. 11.4; 2008-208, ss. 5, 7; 2009-484, s. 16(b); 2009-550, s. 10(a), (b); repealed by 2010-67, s. 1(a)-(d), effective July 1, 2010.)

Editor's Note. - Former G.S. 147-33.104 prohibited purchase by state agencies and governmental entities of certain computer equipment.

Session Laws 2010-67, s. 1(a), repealed Session Laws 2007-550, s. 16.1-16.6, which added this section and specified an effective date. Session Laws 2010-67, s. 1(b), repealed Session Laws 2008-208, which amended this section and the effective date provisions. Session Laws 2010-67, s. 1(c), repealed Session Laws 2009-484, s. 16, which amended the effective dates in S.L. 2007-550, s. 16.6, as amended by S.L. 2008-208, s. 7, and 2008-198, s. 11.4. Session Laws 2010-67, s. 1(d), repealed Session Laws 2009-550, s. 10(a) and (b), which also amended the effective dates in S.L. 2007-550, s. 16.6, as amended by S.L. 2008-208, s. 7, and 2008-198, s. 11.4, to provide an effective date of July 1, 2010. Session Laws 2010-67, s. 1(a)-(d), was effective July 1, 2010.

§ 147-33.104A: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(2010-67, s. 5(a); 2015-241, s. 14.30(u); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Editor's Note. - Former G.S. 147-33.104A pertained to the purchase by State agencies and governmental entities of certain computer equipment and televisions prohibited.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

§§ 147-33.105 through 147-33.109: Reserved for future codification purposes.

PART 5. SECURITY FOR INFORMATION TECHNOLOGY SERVICES.

§§ 147-33.110 through 147-33.113: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.110: 2001-424, s. 15.2(b); 2004-129, ss. 12, 14; 2011-266, s. 1.9(e); repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.111: 2001-424, s. 15.2(b); 2004-129, ss. 10, 12, 14; 2010-31, s. 6.15(a); 2013-188, s. 5; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.112: 2003-153, s. 1(a); 2004-129, ss. 12, 14; 2013-188, s. 6; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.113: 2001-424, s. 15.2(b); 2003-153, s. 1(a); 2004-129, ss. 12, 14; 2007-155, s. 2; 2007-189, ss. 2, 5.1; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Editor's Note. - Former G.S. 147-33.110 pertained to the statewide security standards. Former G.S. 147-33.111 pertained to the state CIO approval of security standards and security assessments. Former G.S. 147-33.112 pertained to the assessment of agency compliance with security standards. Former G.S. 147-33.113 pertained to the state agency cooperation.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

§§ 147-33.114 through 147-33.119: Reserved for future codification purposes.

PART 6. PURCHASE OF REFURBISHED COMPUTER EQUIPMENT.

§§ 147-33.120 through 147-33.123: Repealed by Session Laws 2015-241, s. 7A.2(a), effective September 18, 2015.

History

(G.S. 147-33.120: 2013-128, s. 1; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.121: 2013-128, s. 2; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.122: 2013-128, s. 3; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015. G.S. 147-33.123: 2013-128, s. 4; repealed by 2015-241, s. 7A.2(a), effective September 18, 2015.)

Editor's Note. - Former G.S. 147-33.120 pertained to definitions. Former G.S. 147-33.121 pertained to the refurbished computer equipment purchasing program. Former G.S. 147-33.122 pertained to the configuration and specification requirements same as for new computers. Former G.S. 147-33.123 pertained to data on reliability and other issues; report.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

§ 147-34. Office and office hours.

The Secretary of State shall attend at his office, in the City of Raleigh, between the hours of 10 o'clock A.M. and three o'clock P.M., on every day of the year, Sundays and legal holidays excepted.

History

(1868-9, c. 270, s. 44; 1870-1, c. 111; Code, s. 3339; Rev., s. 5344; C.S., s. 7652.)

§ 147-35. Salary of Secretary of State.

The salary of the Secretary of State shall be set by the General Assembly in the Current Operations Appropriations Act. In addition to the salary set by the General Assembly in the Current Operations Appropriations Act, longevity pay shall be paid on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.

History

(1879, c. 240, s. 6; 1881, p. 632, res.; Code, s. 3724; Rev., s. 2741; 1907, c. 994; 1919, c. 247, s. 2; C.S., s. 3863; Ex. Sess. 1920, c. 49, s. 4; 1921, c. 11, s. 1; 1931, c. 277; 1933, c. 46; 1935, c. 304; 1941, c. 1; 1947, c. 1041; 1949, c. 1278; 1953, c. 1, s. 2; 1957, c. 1; 1963, c. 1178, s. 1; 1967, c. 1130; c. 1237, s. 1; 1969, c. 1214, s. 1; 1971, c. 912, s. 1; 1973, c. 778, s. 1; 1975, 2nd Sess., c. 983, s. 14; 1977, c. 802, s. 42.7; 1983, c. 761, s. 212; 1983 (Reg. Sess., 1984), c. 1034, s. 164; 1987, c. 738, s. 32(b); 2013-382, s. 9.1(c).)

Editor's Note. - Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:

"(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.'

"(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.'

"(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'"

Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary."

Effect of Amendments. - Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "North Carolina Human Resources Act" for "State Personnel Act."

§ 147-36. Duties of Secretary of State.

It is the duty of the Secretary of State:

1. To perform such duties as may then be devolved upon the Secretary by resolution of the two houses of the General Assembly or either of them.
2. To attend the Governor, whenever required by the Governor, for the purpose of receiving documents that have passed the great seal.
3. To receive and keep all conveyances and mortgages belonging to the State.
4. To distribute annually the statutes and the legislative journals.
5. To distribute the acts of Congress received at the Secretary's office in the manner prescribed for the statutes of the State.
6. To keep a receipt book, in which the Secretary shall take from every person to whom a grant shall be delivered, a receipt for the same; but may enclose grants by mail in a registered letter at the expense of the grantee, unless otherwise directed, first entering the same upon the receipt book.
7. To issue charters and all necessary certificates for the incorporation, domestication, suspension, reinstatement, cancellation and dissolution of corporations as may be required by the corporation laws of the State and maintain a record of the charters and necessary certificates issued.
8. To issue certificates of registration of trademarks, labels and designs as may be required by law and maintain a record of those certificates of registration.
9. To maintain a Division of Publications to compile data on the State's several governmental agencies and for legislative reference.
10. To receive, enroll and safely preserve the current edition of the State Constitution and all amendments to that edition and to transfer previous editions of the State Constitution and amendments to those editions to the Department of Natural and Cultural Resources for preservation and safekeeping in the State Archives.
11. To serve as a member of such boards and commissions as the Constitution and laws of the State may designate.
12. To administer the Securities Law of the State, regulating the issuance and sale of securities, as is now or may be directed.
13. To receive and keep all oaths of public officials required by law to be filed in the Secretary's office, and as Secretary of State, to administer official oaths to any public official of whom an oath is required.
14. To receive and maintain a journal of all appointments made to any State board, agency, commission, council or authority that is filed in the office of the Secretary of State.
15. To regulate the solicitation of contributions pursuant to Chapter 131F of the General Statutes.
16. To apply for and accept grants from the federal government and its agencies and from any foundation, corporation, association, or individual in order to effectuate the purposes of the Nonprofit Corporation Act, Chapter 55A of the General Statutes, and to further aid in the operation and development of nonprofit corporations. The Secretary shall comply with the terms, conditions, and limitations of grants applied for and accepted and shall expend grant funds pursuant to Chapter 143C of the General Statutes, The State Budget Act.

History

(1868-9, c. 270, s. 45; 1881, c. 63; Code, s. 3340; Rev., s. 5345; C.S., s. 7654; 1941, c. 379, s. 6; 1943, cc. 480, 543; 1967, c. 691, s. 53; 1973, c. 1379, s. 1; 1995, c. 20, s. 9; 1998-212, s. 12.14(c); 1999-316, s. 1; 2006-203, s. 115; 2015-170, s. 4(a); 2015-241, s. 14.30(c).)

Editor's Note. - Session Laws 1995, c. 20, s. 17, provided that sections 1 through 16 of that act would become effective only if the constitutional amendments proposed by Session Laws 1995, c. 5, ss. 1-2 were approved as provided by Session Laws 1995, c. 5, ss. 3-4, and if so approved, sections 1 through 16 would become effective with respect to bills and joint resolutions passed in either house of the General Assembly on or after January 1, 1997.

Those constitutional amendments were approved by the voters at the November 1996 election, and certification of the approval was provided to the Secretary of State on November 26, 1996.

Session Laws 2015-170, s. 1, provides: "This act shall be known as the Cultural History Artifact Management and Patriotism Act of 2015."

Session Laws 2015-170, s. 4(b), provides: "The Secretary of State shall transfer to the Department of Cultural Resources [now Department of Natural and Cultural Resources] all previously adopted editions of the State Constitution and amendments to the State Constitution, other than the current edition and amendments to that edition, and ratified amendments to the United States Constitution. The Secretary of State shall, at the request of the Secretary of the Department of Cultural Resources, provide timely, on-site access to the Department staff for study and review of all other documents to determine their historical significance. If, during these periodic reviews, the Department identifies historical documents that are no longer legally necessary to remain in the possession of the Secretary of State, the Secretary shall make arrangements to transfer these historical documents to the Department in a timely fashion for preservation and safekeeping in the State Archives. The Department of Cultural Resources shall provide the Secretary with duplicate copies of all documents transferred from the Secretary to the Department."

Session Laws 2015-170, s. 4(c), provides: "In 2016, the Department of Cultural Resources [now Department of Natural and Cultural Resources] shall arrange for public displays of, and programs related to, the United States Constitution and amendments and related historical materials to commemorate the 240th anniversary of the signing of the Declaration of Independence. In 2016, the Department also shall arrange for public displays of, and programs related to, the State Constitutions and amendments, to coincide with the 240th anniversary of the ratification of North Carolina's first Constitution by the Fifth Provincial Congress. The Department also may consider taking all or part of the displays on a tour of the State. The Department is authorized to accept non-State funds including donations, fund-raising sponsorships, and funding from other sources to defray the costs of these exhibits."

Session Laws 2015-241, s. 14.30(c), effective July 1, 2015, provides: "The Department of Environment and Natural Resources is renamed the Department of Environmental Quality. All references to the Department of Environment and Natural Resources or the Department of Cultural Resources in acts of the 2015 General Assembly taking effect on or after the effective date of this section and in the Committee Report described in Section 33.2 of this act shall be construed to refer to the Department of Environmental Quality or the Department of Natural and Cultural Resources, respectively. References to duties or requirements of the Department of Environment and Natural Resources with respect to entities transferred under subsections (a) and (b) of this section shall be construed as duties or requirements of the Department of Natural and Cultural Resources as reorganized by this section." Pursuant to this authority, "Department of Natural and Cultural Resources" was substituted for "Department of Cultural Resources" in subdivision (10).

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

Effect of Amendments. - Session Laws 2006-203, s. 115, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, substituted "Chapter 143C of the General Statutes, The State Budget Act" for "Article 1 of Chapter 143 of the General Statutes, The Executive Budget Act" at the end of subdivision (16).

Session Laws 2015-170, s. 4(a), effective December 1, 2015, substituted "that" for "which" in subdivision (2); substituted "enclose" for "inclose" in subdivision (6); added "of the charters and necessary certificates issued" at the end of subdivision (7); substituted "of those certificates of registration" for "thereof" at the end of subdivision (8); rewrote subdivision (10); deleted "is fully empowered" following "and as Secretary of State" in subdivision (13); substituted "that" for "which" in subdivision (14); and made some minor stylistic changes throughout the section.

Session Laws 2015-241, s. 14.30(c), effective July 1, 2015, substituted "Department of Natural and Cultural Resources" for "Department of Cultural Resources" in subdivision (10).

Legal Periodicals. - For article, "North Carolina's Heritage Protection Act: Cementing Confederate Monuments in North Carolina's Landscape," see 94 N.C.L. Rev. 2176 (2016).

§ 147-36.1. Deputy Secretary of State.

The duly classified Deputy Secretary of State as reflected by the records of the State Department of Personnel, appointed by the Secretary of State to aid him in the discharge of his duties, shall have the authority to perform all acts and duties of the office in the absence of his chief, or in the case of his inability to act, or under his direction. In exercising such authority, certificates relating to documents and other filings, shall be issued in the name of the Secretary of State, printed, typed, stamped or facsimile signature, and signed by the Deputy Secretary of State.

Employees in the office of the Secretary of State designated as deputy or director of specific divisions in the Department, are empowered to issue certificates relating to documents and other filings within the scope of their division. In exercising such authority the certificates shall be issued in the name of the Secretary of State, printed, typed, stamped or facsimile signature, and signed by the deputy or director indicating his approved title. Provided, however, that if the volume of documents or certificates to be issued makes an embossed seal and the autograph signature of the deputy or director impractical, the documents may be certified and certificates issued under the facsimile signature and seal of the Secretary of State only.

History

(1967, c. 1265; 1987, c. 349.)

Opinions of Attorney General

Delegation of Power to Attend Meetings. - Those members of the Council of State who have statutory authority to delegate duties may, in conformity with such statutes, attend and vote at meetings of Boards of which they are ex officio members through delegates or designated subordinates. The remaining members of the Council of State may make similar delegations or designations where, in the member's judgment, other duties necessitate his absence and the statute creating his ex officio membership does not express or clearly imply an intent of the General Assembly that the powers of such membership be exercised personally. See opinion of Attorney General to the honorable James E. Long, Commissioner of Insurance, 55 N.C.A.G. 116 (1986).

§ 147-37. Secretary of State; fees to be collected.

When no other charge is provided by law, the Secretary of State shall collect such fees for copying any document or record on file in his office which in his discretion bears a reasonable relation to the quantity of copies supplied and the cost of purchasing or leasing and maintaining copying equipment. These fees may be changed from time to time, but a schedule of fees shall be available on request at all times. In addition to copying charges, the Secretary of State shall collect a fee of ten dollars ($10.00) for certifying any document or record on file in his office or for issuing any certificate as to the facts shown by the records on file in his office, except that if two or more certificates for foreign adoption are requested concurrently, the fee for the second and subsequent certificates is five dollars ($5.00).

History

(R.C., c. 102, s. 13; 1870-1, c. 81, s. 3; 1881, c. 79; Code, s. 3725; Rev., s. 2742; C.S., s. 3864; 1979, c. 85, s. 2; 1991, c. 429, s. 1; 1998-212, s. 29A.9(e); 2002-126, s. 29A.32.)

§ 147-38: Repealed by Session Laws 1979, c. 85, s. 3.

§ 147-39. Custodian of statutes, records, deeds, etc.

The Secretary of State is charged with the custody of all statutes and joint resolutions of the legislature, all documents which pass under the great seal, and of all the books, records, deeds, parchments, maps, and papers now deposited in his office or which may hereafter be there deposited pursuant to law, and he shall from time to time make all necessary provisions for their arrangement and preservation. Every deed, conveyance, or other instrument whereby the State or any State agency or institution has acquired title to any real property and which is deposited with the Secretary of State shall be filed by him, and indexed according to the county or counties wherein the real property is situated and the name or names of the grantor or grantors and of the grantee; and the real property shall be briefly described in the index.

History

(R.C., c. 104, s. 105; 1868-9, c. 270, s. 41; 1873-4, c. 129; Code, s. 3337; Rev., s. 5347; C.S., s. 7656; 1957, c. 584, s. 5.)

§ 147-40: Repealed by Session Laws 1969, c. 1184, s. 8.

§ 147-41. To keep records of oyster grants.

The Secretary of State shall keep books of records in which shall be recorded a full description of all grounds granted for oyster beds under the provisions of Chapter 119 of the Laws of 1887, and laws amendatory thereof, and shall keep a map or maps showing the position and limits of all public and private grounds.

History

(1887, c. 119, s. 14; Rev., s. 2381; C.S., s. 7657.)

§ 147-42. Binding original statutes, resolutions, and documents.

The original statutes and joint resolutions passed at each session of the General Assembly the Secretary of State shall immediately thereafter cause to be bound in volumes of convenient size. Each such volume shall be lettered on the back with its title and the date of its session.

History

(1866-7, c. 71; 1868-9, c. 270, s. 46; Code, s. 3343; Rev., s. 5348; C.S., s. 7658.)

§ 147-43. Reports of State officers.

The Secretary of State shall file and keep in his office one copy of each of the reports of State officers in the best binding in which any such report is issued, and the State Librarian shall likewise keep five similarly bound copies of each such report.

History

(Rev., s. 5101; 1911, c. 211, s. 7; C.S., s. 7300.)

§§ 147-43.1 through 147-43.3: Repealed by Session Laws 1969, c. 1184, s. 8.

Cross References. - For present provisions as to printing of Session Laws, see G.S. 120-34.

§ 147-44: Repealed by Session Laws 1943, c. 48, s. 2.

§ 147-45. Distribution of copies of State publications.

The Secretary of State shall, at the State's expense, as soon as possible after publication, provide such number of copies of the Session Laws and Senate and House Journals to federal, State, and local governmental officials, departments and agencies, and to educational institutions of instruction and exchange use, as is determined by the Legislative Services Commission in consultation with the Principal Clerks of the House of Representatives and the Senate. These publications shall be made available in hardbound and electronic format. Each agency or institution entitled to more than one copy shall receive only one of the copies in hardbound format with the remainder in electronic format, unless that agency or institution requests additional hardbound copies from the Secretary of State by August 1 of the calendar year. The Legislative Services Commission, in consultation with the Principal Clerks of the House of Representatives and the Senate, shall determine each year the total number of bound volumes of each publication to be printed and the total number of the electronic copies of each publication to be produced.

Any State agency, department, institution, commission, committee, board, division, bureau, officer, or official that does not receive a copy of the Session Laws may, upon written request from their respective department head to the Secretary of State, and upon the discretion of the Secretary of State as to need, be issued copies of the Session Laws on a permanent loan basis with the understanding that should said copies be needed they will be recalled.

History

(1941, c. 379, s. 1; 1943, c. 48, s. 4; 1945, c. 534; 1949, c. 1178; 1951, c. 287; 1953, cc. 245, 266; 1955, c. 505, s. 6; cc. 989, 990; 1957, c. 269, s. 1; cc. 1061, 1400; 1959, c. 215; c. 1028, s. 3; 1965, c. 503; 1967, c. 691, s. 54; cc. 695, 777, 1038, 1073, 1200; 1969, c. 355; c. 608, s. 1; c. 801, s. 2; c. 852, ss. 1, 2; c. 1190, s. 54; c. 1285; 1973, c. 476, ss. 48, 84, 128, 138, 143, 193; c. 507, s. 5; c. 731, s. 1; c. 762; c. 798, ss. 1, 2; c. 1262, ss. 10, 38; 1975, c. 19, s. 59; c. 879, s. 46; 1975, 2nd Sess., c. 983, s. 115; 1977, c. 379, s. 1; c. 679, s. 8; c. 771, s. 4; 1979, c. 358, s. 27; 1981, c. 412, ss. 4, 5; 1981 (Reg. Sess., 1982), c. 1348, s. 2; 1983, c. 842; 1987, c. 827, s. 59; 1989, c. 727, s. 223(b); c. 751, s. 9(b); 1991 (Reg. Sess., 1992), c. 959, s. 74; 1993, c. 522, s. 18; c. 553, s. 53; 1995, c. 166, s. 2; c. 509, s. 100; 1995 (Reg. Sess., 1996), c. 603, s. 5; c. 743, s. 22; 1997-443, ss. 11A.118(a), 11A.119(a); 1998-202, s. 4(bb); 2000-137, s. 4(ff); 2001-513, s. 16(a).)

Editor's Note. - Session Laws 1995 (Reg. Sess., 1996), c. 603, s. 8, provides: "This act shall be funded by funds currently available to the University of North Carolina at Pembroke. Nothing in this act obligates the General Assembly to appropriate any funds to implement it."

Opinions of Attorney General

Publications Distributed Pursuant to This Statute Belong to the Office and Not to the Individual Who Holds the Office. - See opinion of Attorney General to Honorable J. Russell Nipper, Clerk of Superior Court, Wake County, 41 N.C.A.G. 176 (1970).

Advance Sheets of Appellate Division Reports Are Required to Be Distributed to the University of North Carolina at Greensboro at No Cost. - See opinion of Attorney General to Mr. Robert Grey Cole, Walter Clinton Jackson Library, University of North Carolina at Greensboro, 43 N.C.A.G. 93 (1973).

§ 147-46: Repealed by Session Laws 1955, c. 987.

§ 147-46.1. Publications furnished State departments, bureaus, institutions and agencies.

Upon request of any State department, bureau, institution or agency, and upon authorization by the Governor and Council of State, the Secretary of State shall supply to such department, bureau, institution or agency copies of any State publications then available to replace worn, damaged or lost copies and such additional sets or parts of sets as may be requested to meet the reasonable needs of such departments, bureaus, institutions or agencies, disclosed by the request.

This section shall not authorize the reprinting of any State publications which would not be ordered without reference to the provisions hereof.

History

(1947, c. 639.)

§ 147-47: Repealed by Session Laws 1955, c. 748.

§ 147-48. Sale of Laws and Journals.

Such Laws and Journals as may be printed in excess of the number directed to be distributed, the Secretary of State may sell at such price as he deems reasonable, not exceeding cost plus ten percent (10%). All proceeds received from sales made pursuant to this section shall be paid into the State treasury.

History

(1941, c. 379, s. 4; 1943, c. 48, s. 4; 1955, c. 978, s. 2; 1967, c. 691, s. 55; 1977, c. 802, s. 50.30.)

§ 147-49. Disposition of damaged and unsaleable publications.

The Secretary of State is hereby authorized and empowered to dispose of damaged and unsaleable House and Senate Journals and Session Laws of various years at a price to be determined by the Secretary of State.

History

(1939, c. 345; 1967, c. 691, s. 56; 2001-487, s. 93.)

§ 147-50. Publications of State officials and department heads furnished to certain institutions, agencies, etc.

Every State official and every head of a State department, institution or agency issuing any printed report, bulletin, map, or other publication shall, on request, furnish copies of such reports, bulletins, maps or other publications to the following institutions in the number set out below:

University of North Carolina at Chapel Hill .................. 25 copies; University of North Carolina at Charlotte .................... 2 copies; University of North Carolina at Greensboro ................... 2 copies; North Carolina State University at Raleigh ................... 2 copies; East Carolina University at Greenville ....................... 2 copies; Duke University .............................................. 25 copies; Wake Forest College .......................................... 2 copies; Davidson College ............................................. 2 copies; North Carolina Supreme Court Library ......................... 2 copies; North Carolina Central University ............................ 5 copies; Western Carolina University .................................. 2 copies; Appalachian State University ................................. 2 copies; University of North Carolina at Wilmington ................... 2 copies; North Carolina Agricultural and Technical State University ... 2 copies; Legislative Library .......................................... 2 copies;

and to governmental officials, agencies and departments and to other educational institutions, in the discretion of the issuing official and subject to the supply available, such number as may be requested: Provided that five sets of all such reports, bulletins and publications heretofore issued, insofar as the same are available and without necessitating reprinting, shall be furnished to the North Carolina Central University. The provisions in this section shall not be interpreted to include any of the appellate division reports or advance sheets distributed by the Administrative Office of the Courts. Except for reports, bulletins, and other publications issued for free distribution, this section shall not apply to the North Carolina State Museum of Natural Sciences.

History

(1941, c. 379, s. 5; 1955, c. 505, s. 7; 1967, cc. 1038, 1065; 1969, c. 608, s. 1; c. 852, s. 3; 1973, c. 476, s. 84; c. 598; c. 731, s. 2; c. 776; 1977, c. 377; 1979, c. 591, s. 1; 1981, c. 435; 1993, c. 561, s. 116(j).)

Opinions of Attorney General

Distribution of S.B.I. Investigative "Bulletin". - This section does not require the distribution of the S.B.I. Investigative "Bulletin," because information contained in it is not of public record, but instead is information used by law-enforcement officers to collect and compile evidence for the trial of cases. See opinion of Attorney General to Mr. Charles Dunn, 45 N.C.A.G. 92 (1975).

As to free distribution of certain statutory publications on request to certain institutions, see opinion of Attorney General to Mr. James H. Thompson, Director, University of North Carolina at Greensboro, 42 N.C.A.G. 94 (1972).

§ 147-50.1: Repealed by Session Laws 1987, c. 771, s. 1.

Cross References. - As to the State Depository Library System, see G.S. 125-11.5 et seq.

§ 147-51. Clerks of superior courts responsible for Appellate Division Reports; lending prohibited.

From and after March 9, 1927, the clerks of the superior courts of the State of North Carolina are held officially responsible for the volumes of the North Carolina Appellate Division Reports furnished and to be furnished them by the State.

The said clerks of the various courts shall not lend or permit to be taken from their custody the said Reports, nor shall any person with or without the permission of the said clerks take them from their possession.

History

(1927, c. 259; 1969, c. 1190, s. 55.)

§ 147-52: Transferred to § 7A-14 by Session Laws 1975, c. 328.

§ 147-53: Superseded by Session Laws 1943, c. 716.

§ 147-54. Printing, distribution and sale of the North Carolina Manual.

The Secretary of State shall have printed biennially for distribution and sale, two thousand three hundred fifty (2,350) copies of the North Carolina Manual, and shall make distribution to the State agencies, individuals, institutions and others as herein set forth.

NORTH CAROLINA STATE GOVERNMENT:

Members of the General Assembly ............ 1 ea.

Officers of the General Assembly ............ 1 ea.

Offices of the Clerk of each House of the General Assembly ............ 1 ea.

Legislative Services Officer ............ 1

Legislative Library ............ 6

Members of the Council of State ............ 2 ea.

Appointed Secretaries of Executive Departments ............ 2 ea.

Personnel of the Department of the Secretary of State ............ 1 ea.

State Board of Elections ............ 2

Divisions of Archives and History, Director ............ 1

Search Room ............ 3

Publications Section ............ 2

State Library ............ 10

Libraries within State Agencies ............ 1 ea.

Justices of the North Carolina Supreme Court ............ 1 ea.

Judges of the North Carolina Court of Appeals ............ 1 ea.

Judges of the North Carolina Superior Court ............ 1 ea.

Supreme Court Library ............ 12

Court of Appeals Library ............ 2

Clerk of the Supreme Court ............ 1

Clerk of the Court of Appeals ............ 1

Reporter of the Supreme Court and Court of Appeals ............ 1

Administrative Office of the Courts ............ 5

NORTH CAROLINA EDUCATIONAL INSTITUTIONS:

University of North Carolina System

The University of North Carolina System Office ............ 12

Chancellors of the Constituent Institutions ............ 1 ea.

University of North Carolina - Chapel Hill Library ............ 15

North Carolina State University Library ............ 5

East Carolina University Library ............ 5

North Carolina Central University Library ............ 5

Appalachian State University Library ............ 4

University of North Carolina - Charlotte Library ............ 4

University of North Carolina - Greensboro Library ............ 4

Western Carolina University Library ............ 4

Other Constituent Institutions Libraries ............ 3 ea.

North Carolina School of the Arts, redesignated effective August 1, 2008,

as the "University of North Carolina School of the Arts" ............ 2

University of North Carolina Chapel Hill School of Government ............ 2

Community Colleges and Technical Institutes ............ 2 ea.

Private Colleges and Universities

Duke University Library ............ 6

Wake Forest University ............ 6

Campbell University Library ............ 5

Davidson College Library ............ 4

All other Libraries of Senior and Junior Colleges ............ 2 ea.

Public and Private Schools containing grades 8-12 ............ 1 ea.

COUNTY GOVERNMENT:

Clerks of Court ............ 1 ea.

Registers of Deeds ............ 1 ea.

Public Libraries of North Carolina ............ 1 ea.

FEDERAL GOVERNMENT:

President of the United States ............ 1

North Carolina Members of the Presidential Cabinet ............ 1 ea.

North Carolina Members of the United States Congress ............ 2 ea.

Library of Congress ............ 3

Resident Judges of the Federal Judiciary

and United States Attorneys in North Carolina ............ 1 ea.

Secretaries of State of the United States

and Territories ............ 1 ea.

After making the above distribution, the remainder shall be sold at the cost of publication plus tax and postage and the proceeds from such sales deposited with the State Treasurer for use by the Publications Division of the Secretary of State's Office to defray the expense of publishing the North Carolina Manual. Libraries and educational institutions not covered in the above distribution shall be entitled to a twenty percent (20%) discount on the cost of any purchase(s).

History

(1933, c. 115, s. 2; 1977, c. 378; 1995, c. 509, s. 101; 2001-424, s. 14F.1; 2006-264, s. 29(p); 2008-192, s. 10; 2017-6, s. 3; 2018-12, s. 19; 2018-146, ss. 3.1(a), (b), 6.1.)

Re-recodification; Technical and Conforming Changes. - Session Laws 2017-6, s. 3, provides, in part: "The Revisor of Statutes shall recodify Chapter 138A of the General Statutes, Chapter 120C of the General Statutes, as well as Chapter 163 of the General Statutes, as amended by this act, into a new Chapter 163A of the General Statutes to be entitled 'Elections and Ethics Enforcement Act,' as enacted by Section 4 of this act. The Revisor may also recodify into the new Chapter 163A of the General Statutes other existing statutory laws relating to elections and ethics enforcement that are located elsewhere in the General Statutes as the Revisor deems appropriate." The Revisor was further authorized to make technical and conforming changes to catchlines, internal citations, and other references throughout the General Statutes to effectuate this recodification. Pursuant to this authority, the Revisor substituted "Bipartisan State Board of Elections and Ethics Enforcement" for "State Board of Elections."

Session Laws 2018-146, ss. 3.1(a), (b), and 6.1, repealed Session Laws 2017-6, s. 3, and authorized the Revisor of Statutes to re-recodify Chapter 163A into Chapters 163, 138A, and 120C and to revert the changes made by the Revisor pursuant to Session Laws 2017-6, s. 3. Pursuant to this authority, the Revisor of Statutes reverted the change to the reference.

Report on Distribution and Sale of the North Carolina Manual. - Session Laws 2003-284, s. 24.2, provides: "The Department of the Secretary of State shall report on the distribution and sale of the North Carolina Manual as provided in G.S. 147-54. The report shall include: (i) the number of copies that were distributed and the agencies and institutions to which they were distributed; (ii) the cost of distributing the manual; (iii) the number of copies that were sold and whether they were purchased by the general public, agencies, or institutions; and (iv) the amount of revenue realized from the sale of the manual.

"The Department shall also study and report on the feasibility of making the manual available via the Internet.

"The Department shall submit its report to the Appropriations Subcommittees on General Government of the Senate and House of Representatives and to the Fiscal Research Division by April 1, 2004."

Session Laws 2003-284, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2003'."

Session Laws 2003-284, s. 49.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2003-2005 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2003-2005 fiscal biennium."

Session Laws 2003-284, s. 49.5 is a severability clause.

Effect of Amendments. - Session Laws 2006-264, s. 29(p), effective August 27, 2006, substituted "University of North Carolina-Chapel Hill School of Government" for "Institute of Government" in the middle of the table.

Session Laws 2008-192, s. 10, effective August 1, 2008, inserted "redesignated effective August 1, 2008, as the 'University of North Carolina School of the Arts,'" following "North Carolina School of the Arts" on the list of state agencies, individuals, institutions eligible to receive the "North Carolina Manual."

Session Laws 2018-12, s. 19, effective July 1, 2018, substituted "The University of North Carolina System Office" for "General Administration Offices" in the list of North Carolina Educational Institutions eligible to receive the North Carolina Manual.

§ 147-54.1. Division of Publications; duties.

The Secretary of State is authorized to set up a division to be designated as the Division of Publications and to appoint a director thereof who shall be known as the Director of Publications. This Division shall publish the North Carolina Manual, Directory, Index of Local Legislation and such other publications as may be useful to the members and committees of the General Assembly and other officials of the State and of the various counties and cities. Unless otherwise required by law, the Secretary may publish electronically information permitted or required by this section. The Secretary may sell these publications at such prices as the Secretary deems reasonable; the proceeds of sale shall be paid into the State treasury.

The Division shall also perform all such other duties as may be assigned by the Secretary of State.

History

(1915, c. 202, ss. 1, 2; C.S., ss. 6147, 6148; 1939, c. 316; 1971, c. 685, s. 3; 1977, c. 802, s. 50.31; 1999-260, s. 2.)

§ 147-54.2: Repealed by Session Laws 1979, c. 477, s. 2.

§ 147-54.3. Land records management program.

1. The Secretary of State shall administer a land records management program for the purposes (i) of advising registers of deeds, local tax officials, and local planning officials about sound management practices, and (ii) of establishing greater uniformity in local land records systems. The management program shall consist of the activities provided for in subsections (b) through (e) of this section, and other related activities essential to the effective conduct of the management program.
2. The Secretary of State, in cooperation with the Secretary of Natural and Cultural Resources and in accordance with G.S. 121-5(c) and G.S. 132-8.1, shall establish minimum standards and provide advice and technical assistance to local governments in implementing and maintaining minimum standards with regard to the following aspects of land records management:
   1. Uniform indexing of land records;
   2. Uniform recording and indexing procedures for maps, plats and condominiums; and
   3. Security and reproduction of land records.
3. The Department of Secretary of State, in cooperation with the North Carolina Association of Registers of Deeds, Inc., and the Real Property Section of the North Carolina Bar Association, shall adopt, pursuant to Chapter 150B of the General Statutes, rules specifying the minimum indexing standards established pursuant to subsection (b) of this section and procedures for complying with those minimum standards in land records management. A copy of the standards adopted shall be posted in the office of the register of deeds in each county of the State.
4. The Secretary of State shall conduct a program for the preparation of county base maps pursuant to standards prepared by the Secretary.
5. The Secretary of State, shall, in cooperation with the Secretary of Revenue, conduct a program for the preparation of county cadastral maps pursuant to standards prepared by the Secretary of State.
6. Upon the joint request of any board of county commissioners and the register of deeds and subject to available resources of personnel and funds, the Secretary shall make a management study of the office of register of deeds, using assistance from the Office of State Human Resources. At the conclusion of the study, the Secretary shall make nonbinding recommendations to the board, the register of deeds, and to the General Assembly.
7. The Secretary of State shall make comparative salary studies periodically of all registers of deeds offices and at the conclusion of each study the Secretary of State shall present his written findings and shall make recommendations to the board of county commissioners and register of deeds of each county.
8. The Secretary of State, in cooperation with the Secretary of Natural and Cultural Resources and in accordance with G.S. 121-5(c) and G.S. 132-8.1, shall undertake research and provide advice and technical assistance to local governments on the following aspects of land records management:
   1. Centralized recording systems;
   2. Filming, filing, and recording techniques and equipment;
   3. Computerized land records systems; and
   4. Storage and retrieval of land records.
9. An advisory committee on land records is created to assist the Secretary in administering the land records management program. The Secretary of State shall appoint 12 members to the committee; one member shall be appointed from each of the organizations listed below from persons nominated by the organization:
   1. The North Carolina Association of Assessing Officers;
   2. The North Carolina Section of the American Society of Photogrammetry;
   3. The North Carolina Chapter of the American Institute of Planners;
   4. The North Carolina Section of the American Society of Civil Engineers;
   5. The North Carolina Property Mappers' Association;
   6. The North Carolina Association of Registers of Deeds;
   7. The North Carolina Bar Association;
   8. The North Carolina Society of Land Surveyors; and
   9. The North Carolina Association of County Commissioners.

In addition, three members from the public at large shall be appointed. The members of the committee shall be appointed for four-year terms, except that the initial terms for members listed in positions (1) through (4) above and for two of the members-at-large shall be two years; thereafter all appointments shall be for four years. The Secretary of State shall appoint the chairman, and the committee shall meet at the call of the chairman. The Secretary of State in making the appointments shall try to achieve geographical and population balance on the advisory committee; one third of the appointments shall be persons from the most populous counties in the State containing approximately one third of the State's population, one third from the least populous counties containing approximately one third of the State's population, and one third shall be from the remaining moderately populous counties containing approximately one third of the State's population. Each organization shall nominate one nominee each from the more populous, moderately populous, and less populous counties of the State. The members of the committee shall receive per diem and subsistence and travel allowances as provided in G.S. 138-5.

History

(1977, c. 771, s. 4; c. 932, s. 1; 1985, c. 479, s. 165(d), (e); 1987, c. 738, s. 158(a); 1989, c. 523, s. 8; c. 727, ss. 169, 218(116a); c. 751, s. 14; 1991, c. 689, ss. 181(b), 181(c); c. 697, s. 1; 1993, c. 258, s. 1; 2013-382, s. 9.1(c); 2015-241, s. 14.30(t).)

Editor's Note. - This section was formerly G.S. 143-345.6. It was recodified as G.S. 147-54.3 by Session Laws 1991, c. 689, s. 181(b).

Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:

"(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.'

"(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.'

"(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'"

Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary."

Effect of Amendments. - Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "Office of State Human Resources" for "Office of State Personnel" in subsection (d).

Session Laws 2015-241, s. 14.30(t), effective July 1, 2015, substituted "Secretary of Natural and Cultural Resources" for "Secretary of Cultural Resources" in subsections (b) and (e).

§ 147-54.4. Certification of local government property mappers.

1. Definitions. - The following definitions apply in this section:
   1. Department. - The Department of the Secretary of State.
   2. Large-scale. - A scale that uses an inch to represent no more than 400 feet.
   3. Local government. - A county as defined in G.S. 153A-10 and a city as defined in G.S. 160A-1.
   4. Property mapper. - A person who is employed by a local government and is responsible for creating and maintaining large-scale cadastral maps.
2. Certification. - The Department shall establish a certification program for property mappers. The purpose of the program is to protect and enhance the State's investment in local government large-scale cadastral maps. To be certified as a property mapper, an applicant must meet the following minimum requirements and the additional requirements set by the Department:
   1. Be at least 18 years old.
   2. Hold a high school diploma or certificate of equivalency.
   3. Achieve a passing score in courses of instruction approved by the Department covering the following topics:
      1. The principles and techniques of property mapping.
      2. The laws of North Carolina governing the listing, appraisal, and assessment of real property for taxation.
3. Renewal. - A certification as a property mapper must be renewed every two years. Attendance of 24 hours of continuing education approved by the Department is a condition of renewal of a certification. The Department shall publish a list of courses acceptable for meeting this continuing education requirement.
4. Application and Fees. - An applicant for certification as a property mapper or renewal of certification as a property mapper must file an application with the Department. The applicant must submit a fee of twenty dollars ($20.00) with the application. Fees collected under this section shall be credited to the General Fund.
5. Rules. - The Department may adopt rules to implement this section. Chapter 150B of the General Statutes governs the adoption of rules by the Department.

The Department shall establish requirements for certification as a property mapper that are in addition to these minimum requirements. The additional requirements shall ensure that an applicant who is certified as a property mapper has the minimum skills necessary to create and maintain large-scale cadastral maps. In establishing these additional requirements, the Department may consult with the advisory committee on land records created by G.S. 147-54.3(f), the North Carolina Property Mappers' Association, and other relevant professional groups. The additional requirements may include mapping experience and a passing score on an examination administered by the Department.

History

(1993, c. 326, s. 1.)

§ 147-54.5. Investor Protection and Education Trust Fund; administration; limitations on use of the Fund.

1. The Investor Protection and Education Trust Fund created in the Department of the Secretary of State as an expendable trust account to be used by the Secretary of State only for the purposes set forth in this section.
2. The proceeds of the Investor Protection and Education Trust Fund shall be used by the Secretary of State to provide investor protection and education to the general public and to potential securities investors in the State through:
   1. The use of the media, including television and radio public service announcements and printed materials; and
   2. The sponsorship of educational seminars, whether live, recorded, or through other electronic means.
3. The proceeds of the Investor Protection and Education Trust Fund shall not be used for:
   1. Travel expenses of the Secretary of State or staff of the Department of the Secretary of State, unless those expenses are directly related to specific investor protection and education activities performed in accordance with this section.
   2. General operating expenses of the Department of the Secretary of State, or to supplement General Fund appropriations to the Department of the Secretary of State for other than investor education and protection activities.
   3. Promoting the Secretary of State or the Department of the Secretary of State.
4. Expenditures from the Investor Protection and Education Trust Fund shall be made in compliance with State purchasing and contracting requirements for competitive bidding in accordance with the provisions of Article 3 of Chapter 143 of the General Statutes.
5. Revenues derived from consent orders resulting from negotiated settlements of securities investigations by the Secretary of State shall be credited to the Fund. The State Treasurer shall invest the assets of the Fund according to law. Any interest or other investment income earned by the Investor Protection and Education Trust Fund shall remain in the Fund. The balance of the Investor Protection and Education Trust Fund at the end of each fiscal year shall not revert to the General Fund.
6. Beginning January 1, 1997, the Department of the Secretary of State shall report annually to the General Assembly's Fiscal Research Division and to the Joint Legislative Commission on Governmental Operations on the expenditures from the Investor Protection and Education Trust Fund and on the effectiveness of investor awareness education efforts of the Department of the Secretary of State.

History

(1996, 2nd Ex. Sess., c. 18, s. 13.)

§ 147-54.6. International relations assistance.

1. The Secretary of State may offer direct and indirect assistance in matters relating to international relations and protocol to other governmental agencies and units of the State of North Carolina. The assistance may be provided upon request of the intended recipient when resources are available for these purposes.
2. The Secretary of State, on behalf of the State, may accept gifts, donations, devises, or other forms of voluntary contributions, apply for grants from public and private sources, and may expend funds received under this subsection for the purpose of promoting international relations and hosting foreign dignitaries and leaders in North Carolina. All funds and gifts received pursuant to this subsection shall be subject to audit by the Office of the State Auditor and all funds shall be expended in conformity with the Executive Budget Act and shall become the property of the State.

History

(1999-260, s. 3; 2011-284, s. 104.)

Editor's Note. - This section was enacted as G.S. 147-54.5 and was redesignated as G.S. 147-54.6 at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2011-284, s. 104, effective June 24, 2011, substituted "devises" for "bequests" in the first sentence of subsection (b).

§ 147-54.7. Abrogation of offensive geographical place-names.

1. The General Assembly finds that certain geographical place-names are offensive or insulting to the State's people, history, and heritage. These place-names should be replaced by names that reflect the State's people, history, and heritage without resorting to offensive stereotypes, names, words, or phrases.
2. The Secretary of State, in consultation with the North Carolina Geographic Information Coordinating Council, and pursuant to federal guidelines, shall adopt procedures to effect the change of geographical place-names that are offensive or insulting. The procedures shall include a notification to the governing body of the county where the offensive or insulting place-name is deemed to exist that the Council intends to make application to change the name. The county governing body shall have 90 days in which to respond to the Council, and no action to affect a change in the place-name shall be undertaken by the Council until it has reviewed the county's response, or the expiration of the 90-day period, whichever comes first.
3. The procedures adopted by the Secretary pursuant to this section shall include the consideration of resolutions, if any, passed by the governing body of any county regarding the changing of a geographical place-name within the county.

History

(2003-211, s. 1.)

Editor's Note. - Session Laws 2003-211, s. 2, provides: "The geographical place or location names in the State that contain the word 'Nigger' are deemed to be an offensive and insulting place or location name. The North Carolina Geographic Coordinating Council shall notify the governing body of the county where there are geographic places or locations which contain the foregoing term that (i) application will be made to the U.S. Board of Geographic Names to change the offensive name, and (ii) that the county governing body has 90 days in which to forward a suggested replacement name to the Council. If the county's recommended replacement name is not deemed to be offensive or insulting by vote of the Council, then the Council shall make application to the U.S. Board of Geographic Names to change the offensive place-name to the name provided by the county governing body. If the county governing body fails to provide a replacement name within the specified time, or the provided name is deemed to be offensive or insulting by vote of the Council, then the Council shall make the application to change the offensive place-name to a name chosen within its discretion."

Session Laws 2003-211, s. 3, provides: "This act shall not be construed to apply to a geographic place-name which is that of a historic person or event or to a nonpejorative place-name."

Session Laws 2013-328, s. 1, provides: "The North Carolina Geographic Information Coordinating Council shall recommend to the United States Board on Geographic Names that it change the name of Negro Head Creek in Union County to Salem Creek."

§ 147-54.7A: Repealed by Session Laws 2006-201, s. 19, effective January 1, 2007.

§ 147-54.8. Constitutional Amendments Publication Commission.

1. There is established within the Department of the Secretary of State the Constitutional Amendments Publication Commission (hereinafter "Commission").
2. The Commission shall consist of three members who shall serve ex officio as follows: The Secretary of State, the Attorney General, and the Legislative Services Officer.

History

(1983, c. 844, s. 1.)

Editor's Note. - Session Laws 1983, c. 844, s. 2, provided: "Nothing contained in this act shall affect the validity of the voting on any proposed constitutional amendment, including the exercise of any powers by the Constitutional Amendments Publication Commission."

§ 147-54.9. Officers; meetings; quorum.

1. The Secretary of State shall be the Chairman of the Commission.
2. A quorum shall consist of all three members.
3. The Commission shall meet on the call of the Chairman or any two members.

History

(1983, c. 844, s. 1.)

§ 147-54.10. Powers.

1. At least 75 days before an election in which a proposed amendment to the Constitution, or a revised or new Constitution, is to be voted on, the Commission shall prepare an explanation of the amendment, revision, or new Constitution in simple and commonly used language.
2. The summary prepared by the Commission shall be printed by the Secretary of State, in a quantity determined by the Secretary of State. A copy shall be sent along with a news release to each county board of elections, and a copy shall be available to any registered voter or representative of the print or broadcast media making request to the Secretary of State. The Secretary of State may make copies available in such additional manner as the Secretary may determine.

History

(1983, c. 844, s. 1; 2016-109, s. 4(b); 2018-131, s. 2.)

Editor's Note. - Session Laws 2016-109, s. 10, made the amendment to this section by Session Laws 2016-109, s. 4(b), applicable to elections held on or after July 22, 2016.

Effect of Amendments. - Session Laws 2016-109, s. 4(b), effective July 22, 2016, added subsection designations (a) and (b); in subsection (a), substituted "75" for "60" in the first sentence and added the last sentence; and in subsection (b), substituted "the Secretary" for "he" in the last sentence. See editor's note for applicability.

Session Laws 2018-131, s. 2, effective August 4, 2018, deleted the last sentence in subsection (a), which formerly read: "The explanation shall include a short caption reflecting the contents, that shall not include a numerical or other reference of order, to be used on the ballot and the printed summary."

§§ 147-54.31 through 147-54.44: Repealed by Session Laws 2006-201, s. 19, effective January 1, 2007.

Editor's Note. - Session Laws 2006-264, s. 99.4(c), amended former G.S. 147-54.39, effective January 1, 2007. The amendment never took effect.

Session Laws 2006-264, s. 99.4(d) and (e), amended former G.S. 147-54.41, effective January 1, 2007. The amendment never took effect.

Session Laws 2006-201, s. 23(b), as amended by Session laws 2007-347, s. 16, provides "(b) Public servants holding positions on January 1, 2007, shall participate in ethics education presentations under G.S. 138A-14 and lobbying education programs under G.S. 120C-103 on orbefore January 1, 2008."

Session Laws 2006-201, s. 24, is a severability clause.

§ 147-64.1. Salary of State Auditor.

1. The salary of the State Auditor shall be set by the General Assembly in the Current Operations Appropriations Act.
2. In addition to the salary set by the General Assembly in the Current Operations Appropriations Act, longevity pay shall be paid on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.

History

(1983, c. 761, s. 214; c. 913, s. 2; 1983 (Reg. Sess., 1984), c. 1034, s. 164; 1987, c. 738, s. 32(b); 2013-382, s. 9.1(c).)

Editor's Note. - Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:

"(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.'

"(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.'

"(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'"

Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary."

Effect of Amendments. - Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "North Carolina Human Resources Act" for "State Personnel Act" in subsection (b).

§ 147-64.2. Legislative policy and intent.

The General Assembly is ultimately responsible for authorizing the expenditure of public moneys, designating the sources from which moneys may be collected, and shaping the administrative structure to perform the work of government throughout the State, and is held finally accountable for how the funds are spent and what is accomplished with them. The legislature should, therefore, provide the basic direction for audits of State agencies as defined in G.S. 147-64.4.

In the interest of reducing audit overlap and expense at all levels of government, the General Assembly and the Auditor should promote, to the extent possible, coordinated nonduplicating audits of public programs and activities of all governmental levels throughout the State.

It is the intent of this Article that all State agencies, and entities supported, partially or entirely, by public funds be subject to audit and investigation under the policy guidance of the Auditor. These audits and investigations shall be made to assist in furnishing the General Assembly, the Governor, the executive departments and agencies of the State, the governing bodies and executive departments of the political subdivisions of the State, and the public in general with an independent evaluation of public program performance.

History

(1983, c. 913, s. 2; 2021-112, s. 1.)

Effect of Amendments. - Session Laws 2021-112, s.1, effective August 23, 2021, substituted "agencies as defined in G.S. 147-64.4" for "agencies" at the end of the first paragraph; and in the last paragraph, inserted "and investigation" and substituted "These audits and investigations" for "Such audits."

§ 147-64.3. Legislative and management control system.

It is the intent of this Article that the State Auditor shall perform or coordinate all audit functions for State government. As appropriate, all State agencies are encouraged to establish, maintain, and use effective systems of management control. The adequacy of these control systems will be reviewed by the Auditor. The Auditor may, at his discretion, use such reviews to limit his audit activity or to suggest guidelines, make recommendations, and provide assistance where necessary within the resources available.

History

(1983, c. 913, s. 2.)

§ 147-64.4. Definitions.

The following definitions apply in this Article:

1. Recodified as subdivision (2a) of this section by Session Laws 2021-112, s. 2(a).
2. Accounting system or system of accounting. - The total structure of records and procedures that discover, record, classify, and report information on the financial position and operating results of a State agency or any of its funds, balanced account groups, and organizational components.
3. Audit. - An independent review or examination of State agency organizations, programs, activities, and functions. The purpose of an audit is to help ensure full accountability and assist State agency officials and employees in carrying out their responsibilities. The elements of an audit are as follows:
   1. Financial and compliance: to determine whether financial operations are properly conducted, whether the financial reports of a State agency are presented fairly, and whether the State agency has complied with applicable laws.
   2. Economy and efficiency: to determine whether the State agency is managing or utilizing its resources (such as personnel and property) in an economical and efficient manner and the causes of any inefficiencies or uneconomical practices, including inadequacies in laws, management information systems, administrative policies and procedures, or organizational structures.
   3. Program results: to determine whether the desired results or benefits are being achieved, whether the objectives established by the General Assembly or another authorizing body are being met, and whether the State agency has considered alternatives that might yield desired results at lower costs.
   4. An audit may include all three elements or only one or two. It is not intended or desirable that every audit include all three. Economy and efficiency and program result audits should be selected when their use will meet the needs of expected users of audit results.
4. Federal agency. - Any department, agency, or instrumentality of the federal government and any federally owned or controlled corporation.
5. Investigation. - An independent review or examination of an allegation of an improper governmental activity regarding a State agency organization, program, activity, or function. The purpose of an investigation is to help ensure full accountability and assist State agency officials and employees in carrying out their responsibilities.
6. State agency. - Any department, political subdivision, institution, board, commission, committee, division, bureau, officer, official or any other entity for which the State has oversight responsibility, including but not limited to, any university, mental or specialty hospital, community college, or clerk of court.

History

(1983, c. 913, s. 2; 1987, c. 564, s. 31; 2021-112, s. 2(a), (b).)

Effect of Amendments. - Session Laws 2021-112, s. 2(a), (b), effective August 23, 2021, rewrote the section.

§ 147-64.5. Cooperation with Joint Legislative Commission on Governmental Operations and other governmental bodies.

1. Joint Legislative Commission on Governmental Operations. - The Auditor shall furnish copies of any and all audits only when requested by the Joint Legislative Commission on Governmental Operations. The copies shall be in written or electronic form, as requested. Accordingly, the Auditor shall, upon request by the chairmen, appear before the Commission to present findings and answer questions concerning the results of these audits. The Commission is hereby authorized to use these audit findings in its inquiries concerning the operations of State agencies and is empowered to require agency heads to advise the Commission of actions taken or to be taken on any recommendations made in the report or explain the reasons for not taking action.
2. Requests for Auditor Assistance. - Committees of the General Assembly, the Governor, and other State officials may make written requests that the Auditor undertake, to the extent deemed practicable and within the resources provided, a specific audit or investigation; provide technical assistance and advice; and provide recommendations on management systems, finance, accounting, auditing, and other areas of management interest. The Auditor may request the advice of the Joint Legislative Commission on Governmental Operations in prioritizing these requests and in determining whether the requests are practicable and can be undertaken within the resources provided.
3. Cooperation with Other Governmental Bodies. - The Auditor shall cooperate, act, and function with other audit or evaluation organizations in the State, with appropriate councils or committees of other states, with governing bodies of the political subdivisions of the State, and with federal agencies in an effort to maximize the extent of intergovernmental audit coordination and thereby avoid unnecessary duplication and expense of audit effort. Nothing in this Article is intended nor shall it be construed as giving the Auditor control over the internal auditors of any agency.

History

(1983, c. 913, s. 2; 1997-443, s. 25; 2001-424, s. 9.1(b).)

§ 147-64.6. Duties and responsibilities.

1. General Duty. - It is the policy of the General Assembly to provide for the auditing and investigation of State agencies by the impartial, independent State Auditor.
2. Areas of Examination. - The duties of the Auditor are independently to examine into and make findings of fact on whether State agencies have done or are doing all of the following:
   1. Have established adequate operating and administrative procedures and practices; systems of accounting, reporting, and auditing; and other necessary elements of legislative or management control.
   2. Are providing financial and other reports that disclose fairly, consistently, fully, and promptly all information needed to show the nature and scope of programs and activities and have established bases for evaluating the results of these programs and operations.
   3. Are promptly collecting, depositing, and properly accounting for all revenues and receipts arising from their activities.
   4. Are conducting programs and activities and expending funds made available in a faithful, efficient, and economical manner in compliance with and in furtherance of applicable laws of the State, and, if applicable, federal law.
   5. Are determining that the authorized activities or programs effectively serve the intent and purpose of the General Assembly and, if applicable, federal law.
   6. Are adhering to statutory requirements that include conditions precedent, classifications, and similar eligibility or qualifying standards to assure that statutory intent is carried out while the requirements are in effect.
   7. Are not engaging in an improper governmental activity as provided in G.S. 147-64.6B, including misappropriation, mismanagement, waste of State resources, fraud, or a violation of State or federal law.
3. Responsibilities. - The Auditor is responsible for the following acts and activities:
   1. Audits made or caused to be made by the Auditor shall be conducted in accordance with generally accepted auditing standards as prescribed by the American Institute of Certified Public Accountants, the United States General Accounting Office, or other professionally recognized accounting standards-setting bodies.
   2. Financial and compliance audits may be made at the discretion of the Auditor without advance notice to the organization being audited. Audits of economy and efficiency and program results shall be discussed in advance with the prospective auditee unless an unannounced visit is essential to the audit.
   3. The Auditor, on the Auditor's own initiative and as often as the Auditor deems necessary, or as requested by the Governor or the General Assembly, shall, to the extent deemed practicable and consistent with the Auditor's overall responsibility as contained in this Article, make or cause to be made audits of all or any part of the activities of the State agencies. Each State agency receiving a financial statement audit by the Auditor under this subdivision shall prepare a financial statement and supplementary information in the format required by the Auditor. Financial statements and supplementary information prepared as required by this subdivision shall be completed and submitted to the Auditor not later than 60 days after the deadline for the State agency's Comprehensive Annual Financial Report submission as established by the State Controller.
   4. The Auditor, at the Auditor's own discretion, may, in selecting audit areas and in evaluating current audit activity, consider and utilize, in whole or in part, the relevant audit coverage and applicable reports of the audit staffs of the various State agencies, independent contractors, and federal agencies. The Auditor shall coordinate, to the extent deemed practicable, the auditing conducted within the State to meet the needs of all governmental bodies.
   5. The Auditor may contract with federal audit agencies, or any governmental agency, on a cost reimbursable basis, for the Auditor to perform audits of federal grants and programs administered by State agencies in accordance with agreements negotiated between the Auditor and the contracting federal audit agencies or any governmental agency. In instances where the grantee State agency subgrants these federal funds to local governments, regional councils of government, and other local groups or private or semiprivate institutions or agencies, the Auditor may examine the books and records of these subgrantees to the extent necessary to determine eligibility and proper use in accordance with State and federal laws.
   6. The Auditor shall, in the Auditor's reports of audits or reports of investigations, make any comments, suggestions, or recommendations the Auditor deems appropriate concerning any aspect of the State agency's activities and operations.
   7. The Auditor may charge and collect from each examining and licensing board the actual cost of each audit of the board. Costs collected under this subdivision shall be based on the actual expense incurred by the Auditor's office in making the audit, and the affected State agency is entitled to an itemized statement of the costs. Amounts collected under this subdivision shall be deposited into the General Fund as nontax revenue.
   8. The Auditor shall examine as often as necessary the accounts kept by the State Treasurer, and if the Auditor discovers any irregularity or deficiency in the accounts, unless the irregularity or deficiency is rectified or explained to the Auditor's satisfaction, report it in writing to the General Assembly and provide a copy of the report to the Governor and Attorney General. In addition to regular audits, the Auditor shall check the Treasurer's records at the time a new Treasurer assumes office and charge the Treasurer with the balance in the accounts and shall check the Treasurer's records at the time the Treasurer leaves office to determine that the accounts are in order.
   9. The Auditor may examine the accounts and records of any bank or financial institution relating to transactions with the State Treasurer, or with any State agency, or the Auditor may require banks doing business with the State to furnish the Auditor information relating to transactions with State agencies.
   10. The Auditor may, as often as the Auditor deems advisable, conduct a detailed review of the bookkeeping and accounting systems in use in the various State agencies that are supported partially or entirely from State funds. These examinations shall be for the purpose of evaluating the adequacy of systems in use by these State agencies. In instances where the Auditor determines that existing systems are outmoded, inefficient, or otherwise inadequate, the Auditor shall recommend changes to the State Controller. The State Controller shall prescribe and supervise the installation of these changes, as provided in G.S. 143B-426.39(2).
   11. The Auditor shall, through appropriate tests, satisfy himself or herself concerning the propriety of the data presented in the Comprehensive Annual Financial Report and shall express the appropriate auditor's opinion in accordance with generally accepted auditing standards.
   12. The Auditor shall provide a report to the Governor and Attorney General, and other appropriate officials, of facts in the Auditor's possession that pertain to the apparent violation of criminal statutes or apparent instances of malfeasance, misfeasance, or nonfeasance by an officer or employee.
   13. At the conclusion of an audit, the Auditor or the Auditor's designated representative shall discuss the audit with the official whose office is subject to audit and submit necessary underlying facts developed for all findings and recommendations that may be included in the audit report. On audits of economy and efficiency and program results, the auditee's written response shall be included in the final report if received within 15 to 30 days from receipt of the draft report. The length of time shall be determined by the Auditor and shall be commensurate with the number and complexity of the findings.
   14. The Auditor shall notify the General Assembly, the Governor, the head of each State agency audited, and other persons as the Auditor deems appropriate, that an audit report has been published, its subject and title, and the locations, including State libraries, at which the report is available. The Auditor shall then distribute copies of the report only to those who request a report. The copies shall be in written or electronic form, as requested. The Auditor shall also file a copy of the audit report in the Auditor's office which shall be a permanent public record. In addition, the Auditor may publish on the Auditor's website any reports from audits of State agencies not directly conducted by the Auditor. Nothing in this subsection permits the publication of information whose disclosure is otherwise prohibited by law.
   15. The audit and investigation function does not infringe upon or deprive the General Assembly and the executive or judicial branches of State government of any rights, powers, or duties vested in or imposed upon them by statute or the Constitution.
   16. The Auditor is responsible for receiving reports of allegations of the improper governmental activities as provided in G.S. 147-64.6B. The Auditor shall adopt policies and procedures necessary to provide for the investigation or referral of these allegations.
   17. Repealed by Session Laws 2009-136, s. 2, effective June 19, 2009.
   18. Repealed by Session Laws 2010-31, s. 6.15(b), effective July 1, 2010.
   19. Whenever the Auditor believes that information received or collected by the Auditor may be evidence of a violation of any of the provisions of Chapter 138A of the General Statutes, Chapter 120C of the General Statutes, or Article 14 of Chapter 120 of the General Statutes, the Auditor shall report that information to the State Ethics Commission and the Secretary of State as appropriate. The Auditor is bound by interpretations issued by the State Ethics Commission as to whether or not any information reported by the Auditor under this subdivision involves or may involve a violation of Chapter 138A of the General Statutes, Chapter 120C of the General Statutes, or Article 14 of Chapter 120 of the General Statutes. Nothing in this subdivision limits the Auditor's authority under subdivision (1) of this subsection.
   20. Whenever the Auditor believes that information received or collected by the Auditor may be evidence of criminal misconduct, the Auditor shall report that information to either the State Bureau of Investigation or the district attorney for the county where the alleged misconduct occurred. Nothing in this subdivision limits the Auditor's authority under subdivision (1) of this subsection.
   21. If an audit or investigation undertaken by the Auditor results in a finding that a private person or entity has received public funds as a result of fraud, misrepresentation, or other deceptive acts or practices while doing business with a State agency, the Auditor shall submit a detailed written report of the finding, and any additional necessary supporting documentation, to the State Purchasing Officer or the appropriate official, as applicable. A report submitted under this subsection may include a recommendation that the private person or entity be debarred from doing business with the State or a State agency.
   22. Verification audits for compliance with statutory requirements, with or without advance notice to the State agency being audited, may be initiated at the discretion of the Auditor or as requested by the Governor or General Assembly.
4. Reports and Work Papers. - The Auditor shall maintain for 10 years a complete file of all audit reports and reports of other examinations, investigations, surveys, and reviews issued under the Auditor's authority. Audit work papers and other evidence and related supportive material directly pertaining to the work of the Auditor's office shall be retained according to an agreement between the Auditor and State Archives. To promote intergovernmental cooperation and avoid unnecessary duplication of audit effort, and notwithstanding the provisions of G.S. 126-24, pertinent work papers and other supportive material related to an audit or investigation made pursuant to this section may be, at the discretion of the Auditor and unless otherwise prohibited by law, made available for inspection by duly authorized representatives of the State and federal government who desire access to and inspection of the records in connection with some matter officially before them, including criminal investigations.
5. Access to Records. - The Auditor may examine the accounts and records of any organization or State agency relating to a verification audit for compliance with a statutory condition precedent, classification, or other similar eligibility or qualifying standard.

The Auditor shall charge and collect from the contracting federal audit agencies, or any governmental agencies, the actual cost of all the audits of the grants and programs contracted by the Auditor to do. Amounts collected under these arrangements shall be deposited in the State Treasury and be budgeted in the Department of State Auditor and shall be available to hire sufficient personnel to perform these contracted audits and to pay for related travel, supplies, and other necessary expenses.

Except as provided in this section, or upon an order issued in Wake County Superior Court upon 10 days' notice and hearing finding that access is necessary to a proper administration of justice, audit work papers and related supportive material are confidential, including any interpretations, advisory opinions, or other information or materials furnished to or by the State Ethics Commission under this section.

History

(1983, c. 913, s. 2; 1985 (Reg. Sess., 1986), c. 1024, ss. 24, 25; 1987, c. 738, s. 62; 1989, c. 236, s. 2; 1999-188, s. 2; 2001-142, s. 2; 2001-424, ss. 9.1(a), 15.2(c); 2002-126, s. 27.2(b); 2002-159, s. 48; 2004-129, s. 46; 2008-215, ss. 1(a), 2, 3; 2009-136, s. 2; 2010-31, s. 6.15(b); 2010-194, s. 27; 2014-100, ss. 25.2, 25.3; 2015-241, s. 25.1(b); 2015-268, s. 7.4; 2017-6, s. 3; 2018-5, s. 27.1; 2018-146, ss. 3.1(a), (b), 6.1; 2019-19, ss. 2, 3; 2020-78, s. 18.1; 2021-112, s. 3.)

Re-recodification; Technical and Conforming Changes. - Session Laws 2017-6, s. 3, provides, in part: "The Revisor of Statutes shall recodify Chapter 138A of the General Statutes, Chapter 120C of the General Statutes, as well as Chapter 163 of the General Statutes, as amended by this act, into a new Chapter 163A of the General Statutes to be entitled 'Elections and Ethics Enforcement Act,' as enacted by Section 4 of this act. The Revisor may also recodify into the new Chapter 163A of the General Statutes other existing statutory laws relating to elections and ethics enforcement that are located elsewhere in the General Statutes as the Revisor deems appropriate." The Revisor was further authorized to make technical and conforming changes to catchlines, internal citations, and other references throughout the General Statutes to effectuate this recodification. Pursuant to this authority, the Revisor substituted "Bipartisan State Board of Elections and Ethics Enforcement" for "State Ethics Commission" twice in subdivision (c)(19) and in subsection (d); and substituted "Subchapter II of Chapter 163A of the General Statutes" for "Chapter 138A of the General Statutes, Chapter 120C of the General Statutes" twice in subdivision (c)(19).

Session Laws 2018-146, ss. 3.1(a), (b), and 6.1, repealed Session Laws 2017-6, s. 3, and authorized the Revisor of Statutes to re-recodify Chapter 163A into Chapters 163, 138A, and 120C and to revert the changes made by the Revisor pursuant to Session Laws 2017-6, s. 3. Pursuant to this authority, the Revisor of Statutes reverted the changes to the references in subdivision (c)(19) and subsection (d).

Editor's Note. - The reference in subdivision (c)(3) of this section to "this act" refers to Session Laws 1983, c. 913, which enacted this Article and made other changes in the General Statutes.

Session Laws 1985 (Reg. Sess., 1986), c. 1024, s. 25 purported to rewrite "G.S. 147-64.6(11)." At the direction of the Revisor of Statutes, the amendment was effectuated in subdivision (c)(11).

Session Laws 2010-31, s. 6.15(b), effective July 1, 2010, repealed former subdivision (c)(18). Session Laws 2010-194, s. 27, added two sentences to subdivision (c)(18), effective October 1, 2010. Had the amendment by Session Laws 2010-194, s. 27, taken effect, the last two sentences of subdivision (c)(18) would have read: "However, the Auditor shall: (i) submit all proposed statewide and agency term contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or the Attorney General's designee for review as provided in G.S. 114-8.3; and (ii) include in all proposed contracts to be awarded by the Auditor under this subdivision a standard clause which provides that the Auditor may audit the records of the contractor during the term of the contract to verify accounts and data affecting fees and performance. The Auditor shall not award a cost plus percentage of cost agreement or contract for any purpose."

Session Laws 2012-87, s. 1, provides: "The State Auditor shall conduct an investigative audit of the Roanoke Island Commission, which is a State commission that receives State funds. As part of its investigation, the Auditor shall carefully examine all funds that have been received by Friends of Elizabeth II, Inc., (Friends) from the Roanoke Island Commission or any other State entity, regardless of the characterization by any party of the nature of a transfer, and determine the following:

"(1) The balance of such funds still held by the Friends.

"(2) The interest earned on such funds and the rate of interest on such funds, both as of the time of the audit and over the period in which the Friends have held such funds.

"(3) The expenditure of funds received by the Friends from the Roanoke Island Commission or any other State entity.

"(4) Whether such funds have been used by the Friends for the purposes for which they were transferred.

"(5) Whether such funds were properly transferred by State entities to the Friends in accordance with the law.

"(6) Whether the use of such funds has been properly reported in accordance with the law.

"The Auditor shall make recommendations based on the Auditor's findings and shall publish a report describing all issues investigated, a summary of the contents of documents examined and interviews conducted, all other findings, and the recommendations.

"As part of its audit, the Auditor shall also review any memorandums of agreement, or similar arrangements, between the Roanoke Island Commission and the Friends and shall make recommendations as to what should be included in such an agreement between the Roanoke Island Commission and the Friends."

Session Laws 2015-241, s. 25.1(c), as amended by Session Laws 2015-268, s. 7.4, provides: "This section becomes effective October 1, 2015, and the requirement to submit a report applies to audits conducted or undertaken on or after that date. Nothing in this subsection shall be construed as prohibiting the State Auditor or an internal auditor from submitting a report detailing fraud, misrepresentation, or other deceptive acts or practices found during an audit conducted prior to the effective date of this section."

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

Session Laws 2020-78, s. 22.1, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium."

Session Laws 2020-78, s. 22.3, is a severability clause.

Effect of Amendments. - Session Laws 2004-129, s. 46, effective July 1, 2004, in subdivision (b)(18), substituted "G.S. 147-33.111(a)" for "G.S. 147-33.82(d)(1) or (2)" in the second sentence, and substituted "G.S. 147-33.111(c)" for "G.S. 147-33.82(d)(3)" in the fifth sentence.

Session Laws 2008-215, ss. 1(a), 2, and 3, effective August 15, 2008, rewrote subdivision (c)(16); added subdivision (c)(19); and in subsection (d), substituted "the Auditor's" for "his" twice, and rewrote the second paragraph. See Editor's note for applicability.

Session Laws 2009-136, s. 2, effective June 19, 2009, deleted subdivision (c)(17), which read: "The Auditor or the Auditor's designee, in conjunction with the State Controller and the State Budget Officer or their designees, shall handle the resolution of fee disputes between the Office of Information Technology Services and the State agencies receiving information technology services from the Office."

Session Laws 2010-31, s. 6.15(b), effective July 1, 2010, repealed former subdivision (c)(18), which read: "The Auditor shall, after consultation and in coordination with the State Chief Information Officer, assess, confirm, and report on the security practices of information technology systems. If an agency has adopted standards pursuant to G.S. 147-33.111(a), the audit shall be in accordance with those standards. The Auditor's assessment of information security practices shall include an assessment of network vulnerability. The Auditor may conduct network penetration or any similar procedure as the Auditor may deem necessary. The Auditor may enter into a contract with a State agency under G.S. 147-33.111(c) for an assessment of network vulnerability, including network penetration or any similar procedure. Any contract with the Auditor for the assessment and testing shall be on a cost-reimbursement basis. The Auditor may investigate reported information technology security breaches, cyber attacks, and cyber fraud in State government. The Auditor shall issue public reports on the general results of the reviews undertaken pursuant to this subdivision but may provide agencies with detailed reports of the security issues identified pursuant to this subdivision which shall not be disclosed as provided in G.S. 132-6.1(c). The Auditor shall provide the State Chief Information Officer with detailed reports of the security issues identified pursuant to this subdivision. For the purposes of this subdivision only, the Auditor is exempt from the provisions of Article 3 of Chapter 143 of the General Statutes in retaining contractors."

Session Laws 2014-100, s. 25.2, effective July 1, 2014, in subsection (c), made gender neutral changes throughout, substituted "the Auditor" for "he" or similar language throughout subdivisions (c)(3), (c)(4), (c)(6), (c)(9), (c)(10), (c)(12), and (c)(13), substituted "may" for "shall" in subdivision (c)(7), in subdivision (c)(8), substituted "the Auditor" for "he" in the first sentence, and substituted "the Treasurer" for "him" and "he" in the last sentence, and rewrote the former last sentence as the present last three sentences in subdivision (c)(14).

Session Laws 2014-100, s. 25.3, effective July 1, 2014, added subdivision (c)(20).

Session Laws 2015-241, s. 25.1(b), effective October 1, 2015, added subdivision (c)(21). For applicability, see editor's note.

Session Laws 2018-5, s. 27.1, effective July 1, 2018, added the last two sentences in subdivision (c)(3).

Session Laws 2019-19, ss. 2, 3, effective June 3, 2019, substituted "Auditor is" for "Auditor shall be" in the introductory paragraph of subsection (c); in subdivision (c)(13), inserted "15 to" near the end of the second sentence, and added the last sentence; and in subsection (d), substituted "an audit or investigation made pursuant to this section" for "issued audit reports" and made a stylistic change.

Session Laws 2020-78, s. 18.1, effective July 1, 2020, added subdivision (b)(6); substituted "is responsible" for "shall be responsible" in the introductory paragraph of subsection (c); added subdivision (c)(22); and added subsection (e).

Session Laws 2021-112, s. 3, effective August 23, 2021, rewrote the section.

Opinions of Attorney General

Persons Present at Meetings - Members of the Information Resources Management Commission, or their delegates, who are representatives of other agencies may be present at the committee meeting during which information will be reported about audits of the security practices of information technology systems in specific agencies. See opinion of Attorney General to Beverly Eaves Perdue, Lieutenant Governor, 2002 N.C.A.G. 28 (11/8/02).

If the procedures for delegation of duties have been followed, then the designated subordinate of an ex officio member may participate in the full activities of the Information Resources Management Commission and its committees; this includes the right to vote and to participate in closed sessions. See opinion of Attorney General to Beverly Eaves Perdue, Lieutenant Governor, 2002 N.C.A.G. 28 (11/8/02).

A volunteer Information Protection and Privacy Committee member is not an official member of the Information Resources Management Commission or an official delegate of an IRMC member; therefore, volunteers are not representatives of a State agency as contemplated in subdivision (c)(18) of this section and should not attend closed meetings. See opinion of Attorney General to Beverly Eaves Perdue, Lieutenant Governor, 2002 N.C.A.G. 28 (11/8/02).

Confidentiality of security systems the presence of representatives Members of the Information Resources Management Commission, or their delegates, at committee meetings during which information will be reported about audits of the security practices of information technology systems in specific agencies does not waive the confidentiality of the security features of the systems under G.S. 132-6.1(c). See opinion of Attorney General to Beverly Eaves Perdue, Lieutenant Governor, 2002 N.C.A.G. 28 (11/8/02).

§ 147-64.6A: Repealed by Session Laws 2012-142, s. 8.4, effective July 1, 2012.

History

(1987, c. 830, s. 71; repealed by 2012-142, s. 8.4, effective July 1, 2012.)

Editor's Note. - Former G.S. 147-64.6A pertained to the audit of community colleges.

Session Laws 2012-142, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2012.'"

Session Laws 2012-142, s. 27.7, is a severability clause.

§ 147-64.6B. Reports of improper governmental activities.

1. The Auditor shall provide various means, including a telephone hotline, electronic mail, and Internet access to receive reports of allegations of improper governmental activities. The Auditor shall periodically publicize the hotline telephone number, electronic mail address, Internet Web site address, and any other means by which the Auditor may receive reports of allegations of improper governmental activities. Individuals who make a report under this section may choose to remain anonymous until the individual affirmatively consents to having his or her identity disclosed.
2. The Auditor shall investigate reports of allegations of improper governmental activities of State agencies and State employees within the scope of authority set forth in G.S. 147-64.6, including misappropriation, mismanagement, or waste of State resources, fraud, violations of State or federal law, rule or regulation by State agencies or State employees administering State or federal programs, and substantial and specific danger to the public health and safety. When the allegation involves issues of substantial and specific danger to the public health and safety, the Auditor shall notify the appropriate State agency immediately. When the Auditor believes that an allegation of improper governmental activity is outside the authority set forth in G.S. 147-64.6, the Auditor shall refer the allegation to the appropriate State agency responsible for the enforcement or administration of the matter for investigation. When the Auditor believes that an allegation of improper governmental activity involves matters set forth in subdivisions (1), (2), or (3) of this subsection, those matters shall be referred as follows:
   1. Allegations of criminal misconduct to either the State Bureau of Investigation or the District Attorney for the county where the alleged misconduct occurred.
   2. Allegations of violations of Chapter 138A, Chapter 120C and Article 14 of Chapter 120 of the General Statutes to the State Ethics Commission.
   3. Allegations of violations of Chapter 163 of the General Statutes to the State Board of Elections.
3. All records maintained by the Auditor of reports of unsubstantiated allegations of improper governmental activities shall be destroyed within four years from the date the unsubstantiated allegation was received.

History

(2008-215, s. 1(b); 2017-6, s. 3; 2018-146, ss. 3.1(a), (b), 6.1.)

Re-recodification; Technical and Conforming Changes. - Session Laws 2017-6, s. 3, provides, in part: "The Revisor of Statutes shall recodify Chapter 138A of the General Statutes, Chapter 120C of the General Statutes, as well as Chapter 163 of the General Statutes, as amended by this act, into a new Chapter 163A of the General Statutes to be entitled 'Elections and Ethics Enforcement Act,' as enacted by Section 4 of this act. The Revisor may also recodify into the new Chapter 163A of the General Statutes other existing statutory laws relating to elections and ethics enforcement that are located elsewhere in the General Statutes as the Revisor deems appropriate." The Revisor was further authorized to make technical and conforming changes to catchlines, internal citations, and other references throughout the General Statutes to effectuate this recodification. Pursuant to this authority, the Revisor substituted "Bipartisan State Board of Elections and Ethics Enforcement" for "State Ethics Commission" in subdivision (b)(2) and for "State Board of Elections" in subdivision (b)(3); substituted "Subchapter II of Chapter 163A" for "Chapter 138A, Chapter 120C" in subdivision (b)(2); and substituted "Subchapter III of Chapter 163A" for "Chapter 163" in subdivision (b)(3).

Session Laws 2018-146, ss. 3.1(a), (b), and 6.1, repealed Session Laws 2017-6, s. 3, and authorized the Revisor of Statutes to re-recodify Chapter 163A into Chapters 163, 138A, and 120C and to revert the changes made by the Revisor pursuant to Session Laws 2017-6, s. 3. Pursuant to this authority, the Revisor of Statutes reverted the changes to the references in subdivisions (b)(2) and (b)(3).

Editor's Note. - Session Laws 2008-215, s. 9, made this section effective August 15, 2008, and applicable to all information received or collected by the State Auditor concerning alleged violations of Chapters 138A or 120C of the General Statutes or Article 14 of Chapter 120 of the General Statutes on or after January 1, 2007.

§ 147-64.6C. Cost of audit report published.

Each audit report shall itemize the number of staff hours used in conducting the audit and in preparation of the audit report and the total cost of conducting the audit and preparing the audit report.

History

(2012-142, s. 17.3.)

§ 147-64.6D. Cost of CPA audit report published.

Each audit report prepared for a State agency by a Certified Public Accountant shall itemize the number of hours used in conducting the audit and in preparation of the audit report and the total cost of conducting the audit and preparing the audit report.

History

(2012-142, s. 17.4.)

§§ 147-64.6E through 147-64.6I: Reserved for future codification purposes.

§ 147-64.6J. Annual performance audit of the Department of Transportation.

1. Beginning the 2019-2020 fiscal year, the Office of the State Auditor shall conduct a performance audit of the Department of Transportation every year. The performance audit shall include an examination of the following:
   1. Budget adherence by department, division, and highway division.
   2. Timeliness of federal reimbursement requests and timeliness of the Department's responses to any federal requests for additional information or action.
   3. Department controls and oversight of divisions and highway divisions as to cash management, project coordination and delivery, and budget adherence.
   4. Efficacy of communication and coordination within the Department.
   5. Efficacy of cash management by the Department.
   6. Other items the State Auditor deems relevant to study, including implementation of the provisions of this act.
2. The State Auditor shall submit a report of the performance audit to the Joint Legislative Commission on Governmental Operations, Joint Legislative Transportation Oversight Committee, and the Fiscal Research Division. The Department of Transportation shall give the State Auditor full access to all employees and data necessary to complete the audit and the report. The State Auditor shall submit the annual report required by this subsection by the fifteenth day of January beginning in 2021.

History

(2020-91, s. 5.9.)

Editor's Note. - Session Laws 2020-91, s. 5.9 was codified as this section at the direction of the Revisor of Statutes.

Session Laws 2020-91, s. 7.1, made this section effective July 1, 2020.

§ 147-64.7. Authority.

1. Access to Persons and Records. -
   1. The Auditor and the Auditor's authorized representatives shall have ready access to persons and may examine and copy all books, records, reports, vouchers, correspondence, files, personnel files, investments, and any other documentation of any State agency. The review of State tax returns shall be limited to matters of official business and the Auditor's report shall not violate the confidentiality provisions of tax laws. Notwithstanding confidentiality provisions of tax laws, the Auditor may use and disclose information related to overdue tax debts in support of the Auditor's statutory mission.
   2. The Auditor and the Auditor's duly authorized representatives shall have such access to persons, records, papers, reports, vouchers, correspondence, books, and any other documentation which is in the possession of any individual, private corporation, institution, association, board, or other organization which pertain to:
      1. Amounts received pursuant to a grant or contract from the federal government, the State, or its political subdivisions.
      2. Amounts received, disbursed, or otherwise handled on behalf of the federal government or the State. In order to determine that payments to providers of social and medical services are legal and proper, the providers of such services will give the Auditor, or the Auditor's authorized representatives, access to the records of recipients who receive such services.
   3. The Auditor shall, for the purpose of examination and audit authorized by this act, have the authority, and will be provided ready access, to examine and inspect all property, equipment, and facilities in the possession of any State agency or any individual, private corporation, institution, association, board, or other organization which were furnished or otherwise provided through grant, contract, or any other type of funding by the State of North Carolina, or the federal government.
   4. All contracts or grants entered into by State agencies or political subdivisions shall include, as a necessary part, a clause providing access as intended by this section.
   5. The Auditor and his authorized agents are authorized to examine all books and accounts of any individual, firm, or corporation only insofar as they relate to transactions with any agency of the State.
2. Experts; Contracted Audits. -
   1. The Auditor may obtain the services of independent public accountants, qualified management consultants, or other professional persons and experts as he deems necessary or desirable to carry out the duties and functions assigned under the act.
   2. No State agency may enter into any contract for auditing services which may impact on the State's comprehensive annual financial report without consultation with, and the prior written approval of, the Auditor, except in instances where audits are called for by the Governor under G.S. 143C-2-1 and he shall so notify the Auditor. The Auditor shall prescribe policy and establish guidelines containing appropriate criteria for selection and use of independent public accountants, qualified management consultants, or other professional persons by State agencies and governing bodies to perform all or part of the audit function.
3. Authority to Administer Oaths, Subpoena Witnesses and Records, and Take Depositions. -
   1. For the purposes of this Article the Auditor or his authorized representative shall have the power to subpoena witnesses, to take testimony under oath, to cause the deposition of witnesses (residing within or without the State) to be taken in a manner prescribed by law, and to assemble records and documents, by subpoena or otherwise. The subpoena power granted by this section may be exercised only at the specific written direction of the Auditor or his chief deputy.
   2. In case any person shall refuse to obey a subpoena, the Auditor shall invoke the aid of any North Carolina court within the jurisdiction of which the investigation is carried on or where such person may be, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. Such court may issue an order requiring such person to appear before the Auditor or officers designated by the Auditor, there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof.
4. No Waiver. - The production of documents or information required by this section does not constitute a waiver or an impairment of the attorney-client privilege or the attorney work-product privilege.

History

(1983, c. 913, s. 2; 1999-188, s. 1; 2006-203, s. 116; 2007-484, s. 34.5; 2019-19, s. 4.)

Editor's Note. - The references in subdivisions (a)(3) and (b)(1) of this section to "act" and "the act" refer to Session Laws 1983, c. 913, which enacted this Article and made other changes in the General Statutes.

Effect of Amendments. - Session Laws 2006-203, s. 116, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, substituted "G.S. 143C-2-1" for "G.S. 143-3" in the first sentence of subdivision (b)(2).

Session Laws 2007-484, s. 34.5, effective August 30, 2007, substituted "the Auditor's" for "his" in subdivisions (a)(1), (a)(2), and (a)(2)b. and added the last sentence in subdivision (a)(1).

Session Laws 2019-19, s. 4, effective June 3, 2019, added subsection (d).

Opinions of Attorney General

Pursuant to G.S. 147-64.13, the provisions of subdivision (a)(1) of this section supersede the provisions of G.S. 126-24 to the extent they conflict. Specifically, the Auditor's power to examine documents in the course of an authorized audit includes the power to examine confidential employee personnel files relevant to that audit without the consent of the employee or his employer. See opinion of Attorney General to The Honorable Ralph Campbell, Jr., State Auditor, 1999 N.C.A.G. 8 (3/5/99).

§ 147-64.7A. Obstruction of audit.

Any person who shall willfully make or cause to be made to the State Auditor or his designated representatives any false, misleading, or unfounded report for the purpose of interfering with the performance of any audit, special review, or investigation, or to hinder or obstruct the State Auditor or the State Auditor's designated representatives in the performance of their duties, shall be guilty of a Class 2 misdemeanor.

History

(1997-526, s. 1.)

§ 147-64.7B. Failure to respond to verification audit.

When the Auditor requests information from any organization, other than a State agency, as part of a verification audit and the organization fails to provide the requested information, the organization shall be treated as if the organization failed to meet any condition precedent, classification, or other similar eligibility or qualifying standard subject to the verification audit. The Auditor shall document the organization's failure to provide the requested information in a public record.

History

(2021-112, s. 4(a).)

Editor's Note. - Session Laws 2021-112, s. 4(b), made this section effective October 1, 2021.

§ 147-64.8. Independence.

The Auditor shall maintain independence in the performance of his authorized duties. Except as otherwise provided by law, neither the General Assembly nor the Governor nor any department or agency of the executive or judicial branches of State government shall have the authority to limit the scope, direction, or report of an audit undertaken by the Auditor. No State regulatory agency shall by any fiscal or administrative requirements attempt to limit the scope, direction, or report of an audit undertaken by the Auditor.

History

(1983, c. 913, s. 2.)

§ 147-64.9. Rules.

The Auditor shall make and enforce only those rules that the Auditor determines are reasonably necessary for the operation of the Auditor's office. The Auditor shall install an adequate accounting system for the office and shall keep or cause to be kept a complete, accurate, and adequate record of all fiscal transactions of the office.

History

(1983, c. 913, s. 2; 2019-19, s. 5.)

Effect of Amendments. - Session Laws 2019-19, s. 5, effective June 3, 2019, deleted "and regulations" from the catchline; substituted "only those rules that the Auditor determines are reasonably" for "such reasonable rules and regulations as are" in the first sentence and made minor stylistic changes.

§ 147-64.10. Powers of appointment.

The Auditor may, subject to the provisions of the North Carolina Human Resources Act, appoint all employees necessary to perform the duties and functions assigned to him by the provisions of this Article.

Except where otherwise provided in this Article, all powers and duties vested in the Auditor may be delegated by him to deputies, assistants, employees, or other auditors, consultants, professionals, and experts, whose services are obtained in accordance with the provisions of this act; but the Auditor shall retain responsibility for the powers and duties so delegated.

History

(1983, c. 913, s. 2; 2013-382, s. 9.1(c).)

Editor's Note. - Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:

"(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.'

"(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.'

"(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'"

Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary."

Effect of Amendments. - Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "North Carolina Human Resources Act" for "State Personnel Act" in the first paragraph.

Opinions of Attorney General

Delegation of Power to Attend Meetings. - Those members of the Council of State who have statutory authority to delegate duties may, in conformity with such statutes, attend and vote at meetings of Boards of which they are ex officio members through delegates or designated subordinates. The remaining members of the Council of State may make similar delegations or designations where, in the member's judgment, other duties necessitate his absence and the statute creating his ex officio membership does not express or clearly imply an intent of the General Assembly that the powers of such membership be exercised personally. See opinion of Attorney General to the honorable James E. Long, Commissioner of Insurance, 55 N.C.A.G. 116 (1986).

§ 147-64.11. Review of office.

The Auditor may, on his own initiative and as often as he deems necessary, or as requested by the General Assembly, cause to be made a quality review audit of the operations of his office. Such a "peer review" shall be conducted in accordance with standards prescribed by the accounting profession. Upon the recommendation of the Joint Legislative Commission on Governmental Operations may contract with an independent public accountant, qualified management consultant, or other professional person to conduct a financial and compliance, economy and efficiency, and program result audit of the State Auditor.

History

(1983, c. 913, s. 2; 2006-203, s. 117.)

Effect of Amendments. - Session Laws 2006-203, s. 117, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, deleted "the Advisory Budget Commission," following "recommendation of" in the last sentence.

§ 147-64.12. Conflict of interest.

1. To preserve the independence and objectivity of the audit function, the Auditor and his employees may not, unless otherwise expressly authorized by statute, serve in any capacity on an administrative board, commission, or agency of government of a political subdivision of the State or any other organization that, under the provisions of this act, they have the responsibility or authority to audit. Nor shall they have a material, direct or indirect financial, or other economic interest in the transactions of any State agency.
2. The Auditor shall not conduct an audit on a program or activity for which he had management responsibility or in which he has been employed during the preceding two years. The General Assembly shall otherwise provide for the necessary audit of programs and activities within the meaning of this subsection.

If the Auditor's hotline receives a report of allegations of improper governmental activities in a program or activity that the Auditor is prohibited by this subsection from auditing, the Hotline Manager shall transmit the report to the Legislative Services Officer or his designee. The report shall retain the same confidentiality after transmittal to the General Assembly that it had in the possession of the Auditor.

History

(1983, c. 913, s. 2; 1993, c. 152, s. 1; 1996, 2nd Ex. Sess., c. 18, s. 8(n).)

§ 147-64.13. Construction.

This Article shall be construed liberally in the aid of its declared purpose. It is the intent of this Article that the establishment of the Office of the Auditor and the duties, powers, qualifications, and purposes herein specified shall take precedence over any conflicting part or application of any other law.

History

(1983, c. 913, s. 2.)

Opinions of Attorney General

Pursuant to this section, the provisions of G.S. 147-64.7(a)(1) supersede the provisions of G.S. 126-24 to the extent they conflict. Specifically, the Auditor's power to examine documents in the course of an authorized audit includes the power to examine confidential employee personnel files relevant to that audit without the consent of the employee or his employer. See opinion of Attorney General to The Honorable Ralph Campbell, Jr., State Auditor, 1999 N.C.A.G. 8 (3/5/99).

§ 147-64.14. Severability.

If any provision of this Article or the application thereof to any person, State agency, political subdivision, or circumstance is held invalid, such invalidation shall not affect other provisions or applications of this Article which can be given effect without the invalid provision of application, and to this end the provisions of this Article are declared severable.

History

(1983, c. 913, s. 2.)

§ 147-65. Salary of State Treasurer.

The salary of the State Treasurer shall be as established in the Current Operations Appropriations Act. In addition to the salary set by the General Assembly in the Current Operations Appropriations Act, longevity pay shall be paid on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.

History

(Code, s. 3723; 1891, c. 505; Rev., s. 2739; 1907, c. 830, s. 3; c. 994, s. 2; 1917, c. 161; 1919, c. 233; c. 247, s. 3; C.S., s. 3868; Ex. Sess. 1920, c. 49, s. 2; 1921, c. 11, s. 1; 1935, c. 249; 1941, c. 1; 1947, c. 1041; 1949, c. 1278; 1953, c. 1, s. 2; 1957, c. 1; 1963, c. 1178, s. 1; 1967, c. 1130; c. 1237, s. 1; 1969, c. 1214, s. 1; 1971, c. 912, s. 1; 1973, c. 778, s. 1; 1975, 2nd Sess., c. 983, s. 16; 1977, c. 802, s. 42.9; 1983, c. 761, s. 215; 1983 (Reg. Sess., 1984), c. 1034, s. 164; 1987, c. 738, s. 32(b); 2013-382, s. 9.1(c).)

Cross References. - As to settlement of affairs of inoperative boards and agencies, see G.S. 143-267 et seq.

Commission to Study the Governance and the Adequacy of the Investment Authority of Various State-Owned Funds for the Purposes of Enhancing the Return on Investments. - Session Laws 2009-574, ss. 47.1 through 47.3, provide: "SECTION 47.1. There is established the Commission to Study the Governance and the Adequacy of the Investment Authority of Various State-Owned Funds for the Purposes of Enhancing the Return on Investments.

"SECTION 47.2.(a) The Commission shall be composed of 18 members as follows:

"(1) Five members of the Senate, appointed by the President Pro Tempore of the Senate.

"(2) Five members of the House of Representatives, appointed by the Speaker of the House of Representatives.

"(3) The State Treasurer or her or his designee.

"(4) A representative from The University of North Carolina System.

"(5) A representative from the Community College System.

"(6) A representative from the Office of the State Controller.

"(7) A representative from the Office of State Budget and Management.

"(8) One member of the banking community, appointed by the President Pro Tempore of the Senate.

"(9) One member who is a certified public accountant, appointed by the Speaker of the House of Representatives.

"(10) One member who is a certified financial advisor with investment expertise, appointed by the Governor.

"Vacancies on the Commission shall be filled by the appointing authority. The Commission shall be chaired by a Senator and a Representative designated by the appointing authority. A quorum of the Commission shall be 10 members.

"The Commission, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4, including all the power to request all officers, agents, agencies, and departments of the State to provide any information, data, or documents within their possession, ascertainable from their records, or otherwise available to them.

"The Commission may meet at any time upon call of the chairs. The Commission may meet in the Legislative Building, the Legislative Office Building, the Offices of the State Treasurer, or any other location as agreed upon by the Commission. The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.

"The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Commission in its work. The House of Representatives' and Senate's Directors of Legislative Assistants shall assign clerical staff to the Commission, and the expenses relating to the clerical employees shall be borne by the Commission. Members of the Commission shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1, 138-5, or 138-6, as appropriate.

"SECTION 47.2.(b) The initial meeting of the Commission shall be called by the cochairs.

"SECTION 47.3. The Commission shall study issues relating to the source, nature, purpose, and distribution of various State funds. As part of its study, the Commission may examine issues related to:

"(1) The identification, documentation, and categorization of funds, including:

"a. The source of the funds.

"b. The current location and type of fund.

"c. Fund balances, including amounts needed to maintain adequate cash flow and amounts available for investments.

"d. Guiding documents.

"e. Governance structure.

"f. Current protections and investment authority.

"The Commission may consider any other issues it deems relevant to this study."

Commission to Study the Governance and the Adequacy of the Investment Authority of Various State-Owned Funds for the Purposes of Enhancing the Return on Investments. - Session Laws 2009-574, s. 47.4, as amended by Session Laws 2010-96, s. 37, and Session Laws 2010-152, s. 23, provides: "The Commission shall make an interim report to the 2010 Regular Session of the 2009 General Assembly prior to its convening, and shall make a final report to the 2011 Regular Session of the 2011 General Assembly. The report shall include any proposed legislation."

Transfer of North Carolina State Health Plan for Teachers and State Employees to Department of State Treasurer. - Session Laws 2011-85, s. 2.2, provides: "The North Carolina State Health Plan for Teachers and State Employees is transferred to the Department of State Treasurer. This transfer shall have all the elements of a Type II transfer, as defined by G.S. 143A-6."

Editor's Note. - Session Laws 2009-574, s. 52.1, provides: "For legislative studies authorized by this act, out-of-state travel must be authorized by the President Pro Tempore of the Senate or the Speaker of the House of Representatives, as appropriate."

Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act:

"(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.'

"(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.'

"(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.'"

Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary."

Effect of Amendments. - Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "North Carolina Human Resources Act" for "State Personnel Act."

§ 147-66. Office and office hours.

The Treasurer shall keep his or her office at the City of Raleigh, and shall attend there between the hours of 10 o'clock A.M. and three o'clock P.M., Saturdays, Sundays, periods of travel, and legal holidays excepted. The Treasurer shall be allowed such office room as may be necessary.

History

(1868-9, c. 270, ss. 80, 81; Code, s. 3362; Rev., s. 5369; C.S., s. 7679; 2016-55, s. 1.1.)

Effect of Amendments. - Session Laws 2016-55, s. 1.1, effective January 31, 2017, inserted "or her"; and substituted "Saturdays, Sundays, periods of travel" for "Sunday," and "The Treasurer" for "He."

§ 147-67: Repealed by Session Laws 1981, c. 884, s. 14.

§ 147-68. To receive and disburse moneys; to make reports.

1. It is the duty of the Treasurer to receive all moneys which shall from time to time be paid into the treasury of this State; and to pay all warrants legally drawn on the Treasurer.
2. No moneys shall be paid out of the treasury except on warrant or pursuant to an electronic transfer initiated by the State, unless one of the following applies:
   1. There is a legislative appropriation or authority to pay the same.
   2. There is an electronic debit initiated by the federal government or by the government of another state to satisfy a bona fide financial obligation of the State.
3. It shall be the responsibility of the Treasurer to determine that all warrants presented to him for payment are valid and legally drawn on the Treasurer.
4. Recodified as G.S. 147-69.12(c) by Session Laws 2016-55, s. 4.1(b), effective July 1, 2016, and applicable to all reporting periods beginning on or after that date.
5. Repealed by Session Laws 2016-55, s. 4.1(d), effective July 1, 2016, and applicable to all reporting periods beginning on or after that date.
6. After consulting with the Select Committee on Information Technology and the Joint Legislative Commission on Governmental Operations and after consultation with and approval of the Information Resources Management Commission, the Department of State Treasurer may spend departmental receipts for the 2000-2001 fiscal year to continue improvement of the Department's investment banking operations system, retirement payroll systems, and other information technology infrastructure needs. The Department of State Treasurer shall report by January 1, 2001, and annually thereafter to the following regarding the amount and use of the departmental receipts: the Joint Legislative Commission on Governmental Operations, the Chairs of the General Government Appropriations Subcommittees of both the House of Representatives and the Senate, and the Joint Legislative Committee on Information Technology.
7. The State Treasurer, in carrying out the responsibilities of this section, shall be independent of any fiscal control exercise by the Director of the Budget or the Department of Administration and shall be responsible to the General Assembly and the people of North Carolina for the efficient and faithful exercise of the responsibilities of his office. The State Treasurer, for all other purposes, is subject to Chapter 143C of the General Statutes.

History

(1868-9, c. 270, s. 71; Code, s. 3356; Rev., s. 5370; C.S., s. 7682; 1955, c. 577; 1957, c. 269, s. 1; 1981 (Reg. Sess., 1982), c. 1282, s. 65; 1983, c. 913, s. 52; 2000-67, s. 24A; 2003-284, s. 28.2(a); 2004-129, s. 46A; 2006-203, s. 118; 2007-323, s. 13.2(b); 2016-55, ss. 4.1(b), (d); 2020-29, s. 5.)

Cross References. - As to funds of inoperative boards and agencies, see G.S. 143-267 et seq.

As to Sexual Assault and Rape Crisis Center Fund, see G.S. 143B-394.21.

Editor's Note. - Session Laws 2000-67, s. 24A, effective July 1, 2000, was codified as subsection (d2) of this section at the direction of the Revisor of Statutes.

Session Laws 2000-67, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2000'."

Session Laws 2000-67, s. 28.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2000-2001 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2000-2001 fiscal year."

Session Laws 2000-67, s. 28.4, is a severability clause.

Session Laws 2016-55, s. 4.4, made the recodification of former subsection (d) by Session Laws 2016-55, s. 4.1(b), and the repeal of former subsection (d1) by Session Laws 2016-55, s. 4.1(d), applicable to all reporting periods beginning on or after July 1, 2016.

Effect of Amendments. - Session Laws 2004-129, s. 46A, effective July 1, 2004, substituted "Joint Legislative" for "Select" in the last sentence of subsection (d2).

Session Laws 2006-203, s. 118, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, in subsection (d), deleted "and Advisory Budget Commission" following "to the Governor"; in subsection (e), deleted "the Advisory Budget Commission," preceding "the General Assembly" in the first sentence, and substituted "Chapter 143C" for "Article 1 of Chapter 143" in the last sentence.

Session Laws 2007-323, s. 13.2.(b), effective July 1, 2007, in subsection (d1), substituted "the chairs of the House of Representatives and Senate Appropriations Committees, the chairs of the House of Representatives and Senate Finance Committees, and the Fiscal Research Division of the General Assembly," for "to the Chairman, Appropriations Base Budget Committee and the Chairman, Appropriations Expansion Budget Committee of the House of Representatives, and to the Chairman, Committee on Appropriations and the Chairman, Committee on Base Budget of the Senate" and added the last sentence.

Session Laws 2016-55, s. 4.1(b), (d), effective July 1, 2016, recodified former subsection (d), pertaining to annual report to the Governor and biennial report to the General Assembly, as present G.S. 147-69.12(c); and repealed former subsection (d1), pertaining to quarterly report to the Joint Legislative Commission on Governmental Operations, the chairs of the House and Senate Appropriations Committees, the chairs of the House and Senate Finance Committees, and the Fiscal Research Division. See editor's note for applicability.

Session Laws 2020-29, s. 5, effective June 19, 2020, rewrote subsection (b).

§ 147-68.1. Banking operations.

The cost of administration, management, and operations of the banking operations of the Department of State Treasurer shall be apportioned equitably among the funds and programs using these services, and the costs so apportioned shall be deposited with the State Treasurer as a general fund nontax revenue. The cost of administration, management and operations of the banking operations of the Department of State Treasurer shall be covered by an appropriation to the State Treasurer for this purpose in the Current Operations Appropriations Act.

History

(1983 (Reg. Sess., 1984), c. 1034, s. 118.)

§ 147-68.2. Confidentiality of warrants issued by the State.

Information contained in records held by the State about outstanding, unpaid warrants issued by the State are confidential and not available for public inspection to the extent that the Treasurer determines that information would be sufficient to counterfeit a warrant.

History

(2017-129, s. 6.)

§ 147-69. Deposits of State funds in banks and savings and loan associations regulated.

Banks and savings and loan associations having State deposits shall furnish to the Auditor of the State, upon the Auditor's request, a statement of the moneys which have been received and paid by them on account of the treasury. The Treasurer shall keep in the Treasurer's office a full account of all moneys deposited in and drawn from all banks and savings and loan associations in which the Treasurer may deposit or cause to be deposited any of the public funds, and these accounts shall be open to the inspection of the Auditor. The Treasurer shall sign all checks, and no depository bank or savings and loan association shall be authorized to pay checks not bearing the Treasurer's official signature. The Treasurer is authorized to use a facsimile signature machine or device in affixing the Treasurer's signature to warrants, checks or any other instrument the Treasurer is required by law to sign. The Commissioner of Banks, the bank examiners, and the savings and loan examiners, when so required by the State Treasurer, shall keep the State Treasurer fully informed at all times as to the condition of all these depository banks and savings and loan associations, so as to fully protect the State from loss. The State Treasurer shall, before making deposits in any bank or savings and loan association, require ample security from the bank or savings and loan association for these deposits.

History

(1905, c. 520; Rev., s. 5371; 1915, c. 168; 1917, c. 159; C.S., s. 7684; 1931, c. 127, s. 1; c. 243, s. 5; 1933, c. 175, s. 1; 1945, c. 644; 1949, c. 1183; 1967, c. 398, s. 2; 1977, c. 401, s. 1; 1983, c. 158, s. 4; 1987, c. 751, s. 1; 1989, c. 76, s. 27; 2001-193, s. 16; 2004-203, s. 11.)

Effect of Amendments. - Session Laws 2004-203, s. 11, effective August 17, 2004, made this section gender neutral; substituted "these accounts" for "such accounts" in the second sentence; substituted "Banks, the bank examiners, and the savings" for "Banks and bank examiners, and the Commissioner of Banks and the savings" in the fifth sentence; substituted "these depository" for "such depository" in the sixth sentence; and substituted "these deposits" for "such deposits" in the last sentence.

Legal Periodicals. - For comment on the 1949 amendment to this section, see 27 N.C.L. Rev. 425 (1949).

§ 147-69.1. Investments authorized for General Fund and Highway Funds assets.

1. The Governor and Council of State, with the advice and assistance of the State Treasurer, shall adopt such rules and regulations as shall be necessary and appropriate to implement the provisions of this section.
2. This section applies to funds held by the State Treasurer to the credit of:
   1. The General Fund;
   2. The Highway Fund and Highway Trust Fund.
3. It shall be the duty of the State Treasurer to invest the cash of the funds enumerated in subsection (b) of this section in excess of the amount required to meet the current needs and demands on such funds, selecting from among the following:
   1. Obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States.
   2. Obligations of the Federal Farm Credit Bank, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, Fannie Mae, the Government National Mortgage Association, the International Bank for Reconstruction and Development, the International Finance Corporation, the Inter-American Development Bank, the Asian Development Bank, and the African Development Bank.
   3. Repurchase Agreements with respect to one or more of the following:
      1. Securities issued or guaranteed by the United States government or its agencies.
      2. Securities eligible for investment by this section executed by a bank or trust company or by primary or other reporting dealers to the Federal Reserve Bank of New York.
      3. Securities eligible for investment by this section executed by a registered broker-dealer that is subject to the rules and regulations of the U.S. Securities and Exchange Commission and is a member in good standing of the Financial Industry Regulatory Authority.
   4. Obligations of the State of North Carolina.
   5. Certificates of deposit and other deposit accounts of financial institutions under any of the following conditions:
      1. With financial institutions with a physical presence in the State for the purpose of receiving commercial or retail deposits; provided that any principal amount of such deposit in excess of the amount insured by the federal government or any agency thereof, be fully secured by surety bonds, or be fully collateralized; provided further that the rate of return or investment yield may not be less than that available in the market on United States government or agency obligations of comparable maturity.
      2. With financial institutions with a physical presence inside or outside the State, in accordance with all of the following conditions:
         1. The funds are initially deposited through a bank or savings and loan association in the State that is an official depository and that is selected by the State Treasurer, provided that the rate of return or investment yield shall not be less than that available in the market on United States government or agency obligations of comparable maturity.
         2. The selected bank or savings and loan association arranges for the redeposit of the funds in deposit accounts of the State in one or more federally insured banks or savings and loan associations wherever located, provided that no State funds shall be deposited in a bank or savings and loan association that at the time holds other deposits from the State.
         3. The full amount of principal and any accrued interest of each deposit account are covered by federal deposit insurance.
         4. The selected bank or savings and loan association acts as custodian for the State with respect to the deposit in the State's account.
         5. On the same date that the State funds are redeposited, the selected bank or savings and loan association receives an amount of federally insured deposits from customers of other financial institutions wherever located equal to or greater than the amount of the funds invested by the State through the selected bank or savings and loan association pursuant to this sub-subdivision.
   6. Repealed by Session Laws 1989 (Regular Session, 1990), c. 813, s. 10.
   7. Prime quality commercial paper that, when acquired, bears the highest rating, such as a minimum of "P1," "A1," or "F1," of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission, and does not bear a rating below the highest by any nationally recognized rating service which rates the particular obligation.
   8. Bills of exchange or time drafts drawn on and accepted by a commercial bank and eligible for use as collateral by member banks in borrowing from a federal reserve bank, provided that when bills or drafts are acquired, the accepting bank or its holding company is either (i) incorporated in the State of North Carolina or (ii) has outstanding publicly held obligations that bear the highest rating, such as a minimum of "P1," "A1," or "F1," of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission, and do not bear a rating below the highest by any nationally recognized rating service which rates the particular obligations.
   9. Asset-backed securities (whether considered debt or equity) provided, when acquired, the securities bear the highest rating, such as "AAA" or "Aaa," of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission, and do not bear a rating below the highest rating by any nationally recognized rating service which rates the particular securities.
   10. Corporate bonds and notes provided they, when acquired, bear the highest rating, such as "AAA" or "Aaa," of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission, and do not bear a rating below the highest by any nationally recognized rating service which rates the particular obligation.
4. Unless otherwise provided by law, the interest or income received and accruing from all deposits or investments of such cash balances shall be paid into the State's General Fund, except that all interest or income received and accruing on the monthly balance of the Highway Fund and Highway Trust Fund shall be paid into the State Highway Fund and Highway Trust Fund. The cash balances of the several funds may be combined for deposit or investment purposes; and when such combined deposits or investments are made, the interest or income received and accruing from all deposits or investments shall be prorated among the funds in conformity with applicable law and the rules and regulations adopted by the Governor and Council of State.
5. Repealed by Session Laws 2016-55, s. 4.1(c), effective July 1, 2016, and applicable to all reporting periods beginning on or after that date.
6. Repealed by Session Laws 1989 (Regular Session, 1990), c. 813, s. 10.
7. Repealed by Session Laws 2001-444, s. 1, effective October 1, 2001.

History

(1943, c. 2; 1949, c. 213; 1957, c. 1401; 1961, c. 833, s. 2.2; 1967, c. 398, s. 1969, c. 125; 1975, c. 482; 1979, c. 467, s. 1; c. 717, s. 1; 1981, c. 801, ss. 1, 2; 1985, c. 313, s. 3; 1987, c. 751, ss. 2-4; 1987 (Reg. Sess., 1988), c. 882, s. 5; 1989, c. 76, s. 28; c. 751, s. 7(43); 1989 (Reg. Sess., 1990), c. 813, s. 10; 1991 (Reg. Sess., 1992), c. 959, s. 75; 1993, c. 105, s. 2; 1999-251, s. 1; 2001-444, s. 1; 2001-487, s. 14(m); 2005-394, s. 1; 2013-305, s. 3; 2015-241, s. 21.2(c); 2015-268, s. 7.5; 2016-55, ss. 1.2, 4.1(c).)

Cross References. - See G.S. 124-5.1(a), directing the application of dividends of the North Carolina Railroad Company received by the State to reduce the obligations described in Session Laws 1997-443, s. 32.30(c), as amended by Session Laws 1999-237, s. 27.11(d). See also G.S. 124-5.1(b), regarding the cessation of accrual of interest on the remaining balance of the obligations described in Session Laws 1997-443, s. 32.20(c), as amended by Session Laws 1999-237, s. 27.11(d), effective January 1, 2000.

Editor's Note. - Subsection (c), as amended by Session Laws 1999-251, s. 1, has been set forth above consistent with directions from the Revisor of Statutes.

Session Laws 2016-55, s. 4.4, made the repeal of former subsection (e) by Session Laws 2016-55, s. 4.1(c), applicable to all reporting periods beginning on or after July 1, 2016.

Effect of Amendments. - Session Laws 2005-394, s. 1, effective October 1, 2005, rewrote subdivision (c)(5).

Session Laws 2013-305, s. 3, effective July 18, 2013, substituted "deposit accounts" for "time deposits" in subdivision (c)(5); in sub-sub-subdivision (c)(5)b.2., substituted "redeposit of the funds in deposit accounts" for "deposit of the funds in certificates of deposit for the account" and deleted "time" preceding "deposits from the State"; substituted "deposit account" for "certificate of deposit" in sub-sub-subdivision (c)(5)b.3.; substituted "deposit in" for "certificates of deposit issued for" in sub-sub-subdivision (c)(5)b.4.; and, in sub-sub-subdivision (c)(5)b.5., substituted "On the same date" for "At the same time," "redeposited" for "deposited and the certificates of deposit are issued," added "federally insured" preceding "deposits from customers," and deleted "federally insured" preceding "financial institutions."

Session Laws 2015-241, s. 21.2(c), as added by Session Laws 2015-268, s. 7.5, rewrote subdivision (c)(3). For effective date, see note.

Session Laws 2016-55, s. 1.2, effective January 31, 2017, in subdivision (c)(2) deleted "the Federal Financing Bank" following "Obligations of," "the Federal housing Administration, the Farmers Home Administration, the United States Postal Service, the Export Import Bank" following "National Mortgage Association"; substituted "Bank" for "Bank, and the Student Loan Marketing Association"; and made minor stylistic changes; in subdivision (c)(7), substituted "that, when acquired, bears" for "bearing," "rating, such as a minimum of 'P1,' 'A1,' or 'F1' " for "rating," inserted "designated by the U.S. Securities and Exchange Commission" and substituted "do not bear" for "not bearing"; in subdivision (c)(8), inserted "when bills or drafts are acquired," "such as a minimum of 'P1,' 'A1,' or 'F1,' " and "designated by the U.S. Securities and Exchange Comission," and "do"; and substituted "that bear" for "bearing" and "rating, such as a minimum of 'P1,' 'A1,' or 'F1' "; in subdivision (c)(9) substituted "provided, when acquired, the securities" for "provided they," and "rating, such as 'AAA' or 'Aaa' for "rating"; and inserted "designated by the U.S. Securities and Exchange Commission"; and in subdivision (c)(10), substituted "they, when acquired" for "they," and "rating, such as 'AAA' or 'Aaa';" and inserted "designated by the U.S. Securities and Exchange Commission."

Session Laws 2016-55, s. 4.1(c), effective July 1, 2016, deleted subsection (e), which read "The State Treasurer shall cause to be prepared quarterly statements on or before the tenth day of February, May, August, and November in each year, which shall show the amount of cash on hand, the amount of money on deposit, the name of each depository, and all investments for which he is in any way responsible. Each quarterly statement shall be delivered to the Governor, Council of State, President Pro Tempore of the Senate, and Speaker of the House of Representatives; and a copy shall be posted in the office of the State Treasurer for the information of the public." See editor's note for applicability.

§ 147-69.2. Investments authorized for special funds held by State Treasurer.

1. This section applies to funds held by the State Treasurer to the credit of each of the following:
   1. The Teachers' and State Employees' Retirement System of North Carolina.
   2. The Consolidated Judicial Retirement System of North Carolina.
   3. The State Health Plan for Teachers and State Employees.
   4. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
   5. The Disability Salary Continuation Income Plan of North Carolina.
   6. The North Carolina Firefighters' and Rescue Squad Workers' Pension Fund.
   7. The North Carolina Local Governmental Employees' Retirement System.
   8. The Legislative Retirement System of North Carolina.
   9. The Escheat Fund.
   10. The Legislative Retirement Fund.
   11. The State Education Assistance Authority.
   12. The State Property Fire Insurance Fund.
   13. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
   14. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
   15. The State Public Education Property Insurance Fund.
   16. Repealed by Session Laws 2020-69, s. 9(b), effective July 1, 2020.
   17. The Liability Insurance Trust Fund.
   18. The University of North Carolina Hospitals at Chapel Hill funds, except appropriated funds, deposited with the State Treasurer pursuant to G.S. 116-37.2.
   19. Trust funds of The University of North Carolina and its constituent institutions deposited with the State Treasurer pursuant to G.S. 116-36.1.
   20. North Carolina Veterans Home Trust Fund.
   21. North Carolina National Guard Pension Fund.
   22. Retiree Health Benefit Fund.
   23. The Election Fund.
   24. The North Carolina State Lottery Fund.
   25. Funds deposited with the State Treasurer by public hospitals pursuant to G.S. 159-39(g).
   26. Funds deposited with the State Treasurer by Local Government Other Post-Employment Benefits Trusts pursuant to G.S. 159-30.1.
   27. The Local Government Law Enforcement Special Separation Allowance Fund.
   28. The North Carolina Conservation Easement Endowment Fund.
   29. The Conservation Grant Fund.
   30. The Wildlife Endowment Fund.
   31. The Ecosystem Restoration Fund.
   32. The Needs-Based Public School Capital Fund.
   33. The Riparian Buffer Restoration Fund.
   34. Any other special fund created by or pursuant to law for purposes other than meeting appropriations made pursuant to the Executive Budget Act.
   35. The Swain County Settlement Trust Fund.
   36. Institutional funds of the colleges of the North Carolina Community College System.
   37. The Disability Income Plan of North Carolina.
   38. The Lumbee Tribe of North Carolina Trust Fund.
   39. The Catawba Unit No. 1 Decommissioning Trust Fund and the Catawba Unit No. 2 Decommissioning Trust Fund established by North Carolina Municipal Power Agency Number 1, as described in G.S. 159B-18(b)(6).
2. It shall be the duty of the State Treasurer to invest the cash of the funds enumerated in subsection (a) of this section in excess of the amount required to meet the current needs and demands on these funds. The State Treasurer may invest the funds as provided in this subsection in the manner authorized by subsection (e) of this section. If an investment was authorized by this subsection at the time the investment was made or contractually committed to be made, then that investment shall continue to be authorized by this subsection, and none of the percentage or other limitation on investments set forth in this subsection shall be construed to require the State Treasurer to subsequently dispose of the investment or fail to honor any contractual commitments as a result of changes in market values, ratings, or other investment qualifications. For purposes of computing market values on which percentage limitations on investments in this subsection are based, all investments shall be valued as of the last date of the most recent fiscal quarter. Notwithstanding anything in this section to the contrary, the State Treasurer shall categorize investment management arrangements according to the primary investment type or primary strategy utilized under the arrangement authorized under subsection (e) of this section. No investment management arrangement may be categorized in more than one of the subdivisions of this section. The State Treasurer shall select from among the following investments subject to the following limitations and requirements:
   1. Investments authorized by G.S. 147-69.1(c)(1)-(7).
   2. General obligations of other states of the United States.
   3. General obligations of cities, counties and special districts in North Carolina.
   4. Obligations of any company, other organization or legal entity incorporated or otherwise created or located within or outside the United States, including obligations that are convertible into equity securities, if, when acquired, the obligations are within one of the four highest rating categories regardless of gradations, such as ratings beginning with "AAA," "AA," "A," or either "BBB" or "Baa," of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission.
   5. Repealed by Session Laws 2001-444, s. 2, effective October 1, 2001.
   6. Asset-backed securities (whether considered debt or equity), if, when acquired, the obligations are within one of the four highest ratings categories regardless of gradations, such as ratings beginning with "AAA," "AA," "A," or either "BBB" or "Baa," of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission.
   7. In addition to the limitations and requirements with respect to the investments of the Retirement Systems set forth in this subsection, the State Treasurer shall select investments of the assets of the Retirement Systems such that investments made pursuant to subdivisions (b)(1) through (6) of this section shall at all times equal or exceed twenty percent (20%) of the market value of all invested assets of the Retirement Systems.
   8. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
   9. With respect to Retirement Systems' assets referred to in subdivision (b)(8), they may be invested, within or outside the United States, in obligations, debt securities, and asset-backed securities, whether considered debt or equity, including obligations and securities convertible into other securities, that do not meet the requirements of any of subdivisions (b)(1) through (6) of this section nor subdivision (b)(7) of this section. The amount invested under this subdivision shall not exceed seven and one-half percent (7.5%) of the market value of all invested assets of the Retirement Systems.
   10. Retirement Systems' assets referred to in subdivision (8) of this subsection may be invested in strategies managed primarily for the purpose of owning real estate or related debt financing, excluding asset-backed financing and timberlands, located within or outside the United States. The amount invested under this subdivision shall not exceed ten percent (10%) of the market value of all invested assets of the Retirement Systems.
   11. With respect to assets of the Teachers' and State Employees' Retirement System, the Consolidated Judicial Retirement System, the Firefighters' and Rescue Workers' Pension Fund, the Local Governmental Employees' Retirement System, the Legislative Retirement System, the North Carolina National Guard Pension Fund, the Registers of Deeds' Supplemental Pension Fund, and the Retiree Health Benefit Fund (hereinafter referred to collectively as the Retirement Systems), they may be invested in a strategy composed primarily of equity securities traded on a public securities exchange or market organized and regulated pursuant to the laws of the jurisdiction of the exchange or market and issued by any company incorporated or otherwise created or located within or outside the United States as long as the investments meet the conditions of this subdivision. The investments authorized for the Retirement Systems under this subdivision are subject to the following limitations:
       1. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
       2. The aggregate amount of the investment invested through investment companies described in sub-subdivision (e)(4)b. of this section shall not exceed eight and one-half percent (8.5%) of the market value of all invested assets of the Retirement Systems, except that the market value of group trusts and individual, common, or collective trust funds of banks and trust companies shall not be applied against this limit.
       3. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
   12. With respect to Retirement Systems' assets, as defined in subdivision (b)(8) of this subsection, they may be invested in (i) a strategy composed primarily of private equity, or corporate buyout transactions, within or outside the United States or (ii) an arrangement authorized under subsection (e) of this section with the primary purpose to engage in other strategies not expressly authorized by any other subdivision of this subsection. The amount invested under this subdivision shall not exceed eight and three-quarters percent (8.75%) of the market value of all invested assets of the Retirement Systems.
   13. With respect to Retirement Systems' assets, as defined in subdivision (b)(8) of this subsection, they may be invested, within or outside the United States, in obligations, debt securities, asset-backed securities, whether considered debt or equity, and other investments that are acquired by the Treasurer for the primary purpose of providing protection against risks associated with inflation, along with timberland, natural resources, commodities, infrastructure, transportation, agriculture, and other tangible and intangible real assets. The amount invested under this subdivision shall not exceed seven and one-half percent (7.5%) of the market value of all invested assets of the Retirement Systems.
   14. Recodified as part of subdivision (b)(9) by Session Laws 2000-160, s. 2.
   15. With respect to Retirement Systems' assets, as defined in subdivision (8) of this subsection, the market value of any of subdivision (6c) or (7), sub-subdivision b. of subdivision (8), or subdivision (9) or (9a) of this subsection shall not exceed ten percent (10%) of the market value of all invested assets of the Retirement Systems; and the aggregate market value of all assets invested pursuant to subdivisions (6c) and (7), sub-subdivision b. of subdivision (8), and subdivisions (9) and (9a) of this subsection shall not exceed thirty-five percent (35%) of the market value of all invested assets of the Retirement Systems.
   16. Repealed by Session Laws 2013-360, s. 6.3(c), effective July 1, 2013.
   17. It is the intent of the General Assembly that the Escheat Fund provide a perpetual and sustainable source of funding for the purposes authorized by the State Constitution. Accordingly, the following provisions apply:
       1. With respect to assets of the Escheat Fund, in addition to those investments authorized by subdivisions (1) through (6) of this subsection, up to ten percent (10%) of the assets may be invested in the investments authorized under subdivisions (6c) through (9a) of this subsection, notwithstanding the percentage limitations imposed on the Retirement Systems' investments under those subdivisions, and provided that the State Treasurer may invest the assets as provided in subsection (e) of this section.
       2. Repealed by Session Laws 2016-55, s. 1.3, effective January 31, 2017.
       3. The State Treasurer shall invest, in addition to those investments authorized by sub-subdivision a. of this subdivision, ten percent (10%) of the net assets of the Escheat Fund as authorized under G.S. 147-69.2A.
3. The State Treasurer shall appoint an Investment Advisory Committee, which shall consist of seven members: the State Treasurer, who shall be chairman ex officio; two members selected from among the members of the boards of trustees of the Retirement Systems; and four members selected from the general public. All appointed members must have experience in areas relevant to the administration of a large, diversified investment program, including, but not limited to, investment management, securities law, real estate development, or absolute return strategies. The State Treasurer shall also appoint a Secretary of the Investment Advisory Committee who need not be a member of the committee. Members of the committee shall receive for their services the same per diem and allowances granted to members of the State boards and commissions generally. The committee shall have advisory powers only and membership shall not be deemed a public office within the meaning of Article VI, Section 9 of the Constitution of North Carolina or G.S. 128-1.1.
4. The State Treasurer may invest funds deposited pursuant to subdivision (a)(17f) of this section in any of the investments authorized under subdivisions (b)(1) through (6), subdivision (b)(6c), and subdivision (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. The State Treasurer may require a minimum deposit, up to one hundred thousand dollars ($100,000), and may assess reasonable fees, not to exceed 15 basis points per annum, as a condition of participation pursuant to this subsection. Funds deposited pursuant to this subsection by a hospital shall remain the funds of that hospital, and interest or other investment income earned thereon shall be prorated and credited to the contributing hospital on the basis of the amounts thereof contributed, figured according to sound accounting principles. Fees assessed by the State Treasurer may be used to defray the cost of administering investments pursuant to this subsection and expenditures authorized under this section.
5. The State Treasurer may invest funds deposited pursuant to subdivision (a)(16a) of this section in any of the investments authorized under subdivisions (1) through (6), subdivision (6c) and subdivision (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. The State Treasurer may require a minimum deposit, up to one hundred thousand dollars ($100,000), and may assess reasonable fees, not to exceed 15 basis points per annum, as a condition of participation pursuant to this subsection. Funds deposited pursuant to this subsection by the University of North Carolina Hospitals at Chapel Hill shall remain the funds of the University of North Carolina Hospitals at Chapel Hill, and interest or other investment income earned thereon shall be prorated and credited to the University of North Carolina Hospitals at Chapel Hill on the basis of the amounts thereof contributed, figured according to sound accounting principles. Fees assessed by the State Treasurer may be used to defray the cost of administering investments pursuant to this subsection and expenditures authorized under this section.
6. In addition to the investments authorized under subdivisions (b)(1) through (6) of this section, the State Treasurer may invest funds deposited pursuant to subdivision (17g) of subsection (a) of this section in any of the investments authorized under subdivisions (b)(6c) and (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. Funds deposited pursuant to this subsection by a Local Government Other Post-Employment Benefits Trust and interest or other investment income earned from those funds shall be prorated and credited to the contributing trust on the basis of the amounts contributed, figured according to sound accounting principles. For investments under subdivisions (b)(6c) and (b)(8) of this section, the State Treasurer may require a minimum deposit of up to one hundred thousand dollars ($100,000) and may assess reasonable fees of up to 15 basis points per annum as a condition of participation pursuant to this subsection. Fees assessed by the State Treasurer may be used to defray the costs of administering the Fund and expenditures authorized under this section.
7. In addition to the investments authorized under subdivisions (b)(1) through (6) of this section, the State Treasurer may invest funds deposited in the Local Government Law Enforcement Special Separation Allowance Fund in any of the investments authorized under subdivisions (b)(6c) and (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. For investments from that Fund made under subdivisions (b)(6c) and (b)(8) of this section, the State Treasurer may require a minimum deposit of up to one hundred thousand dollars ($100,000) and may assess reasonable fees of up to 15 basis points per annum as a condition of making the investment. The fee may be used to defray the costs of administering the Fund and expenditures authorized under this section.
8. In addition to the investments authorized under subdivisions (b)(1) through (6) of this section, the State Treasurer may invest funds deposited in the Catawba Unit No. 1 Decommissioning Trust Fund and the Catawba Unit No. 2 Decommissioning Trust Fund in any of the investments authorized under subdivisions (b)(6c) and (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. For investments from the Funds made under subdivisions (b)(6c) and (b)(8) of this section, the State Treasurer may require a minimum deposit of up to one hundred thousand dollars ($100,000) and may assess reasonable fees of up to 15 basis points per annum as a condition of making the investment. The fee may be used to defray the costs of administering the Fund and expenditures authorized under this section.
9. In addition to the investments authorized under subdivisions (b)(1) through (6) of this section, the State Treasurer may invest funds deposited in the Swain County Settlement Trust Fund in any of the investments authorized under subdivision (b)(8) of this section, notwithstanding the percentage limitations imposed on the Retirement Systems' investments therein. For investments from that Fund made under subdivision (b)(8) of this section, the State Treasurer may require a minimum deposit of up to one hundred thousand dollars ($100,000) and may assess reasonable fees of up to 15 basis points per annum as a condition of making the investment. The fee may be used to defray the costs of administering the Fund and expenditures authorized under this section.
10. Repealed by Session Laws 1995, c. 501, s. 2.
11. The State Treasurer may invest funds deposited pursuant to subdivisions (17i), (17j), (17k), (17l), and (17n) of subsection (a) of this section in any of the investments authorized under subdivisions (1) through (6) and subdivision (8) of subsection (b) of this section. The State Treasurer may require a minimum deposit, up to one hundred thousand dollars ($100,000), and may assess a reasonable fee, not to exceed 15 basis points, as a condition of participation pursuant to this subsection. Fees assessed by the State Treasurer may be used to defray the costs of administering the funds and expenditures authorized under this section. Funds deposited pursuant to this subsection shall remain the funds of the North Carolina Conservation Easement Endowment Fund, the Conservation Grant Fund, the Ecosystem Restoration Fund, the Riparian Buffer Restoration Fund, or the Wildlife Endowment Fund, as applicable, and interest or other investment income earned thereon shall be prorated and credited to the North Carolina Conservation Easement Endowment Fund, the Conservation Grant Fund, the Ecosystem Restoration Fund, the Riparian Buffer Restoration Fund, or the Wildlife Endowment Fund on the basis of the amounts contributed to the respective Funds, figured according to sound accounting principles.
12. Investments made pursuant to this section may be made as internally managed investments by the State Treasurer or may be made through third-party investment management arrangements, under the following conditions:
    1. Internally managed portfolios shall be subject to industry standard portfolio guidelines developed with periodic consultation by the Investment Advisory Committee.
    2. In assessing whether to invest directly or to utilize indirect third-party investment management arrangements, the State Treasurer shall consider all material factors he or she considers relevant to the decision consistent with the Treasurer's fiduciary duties under G.S. 147-69.7, including financial, operational, and investment expertise and resources, alignment of interests and investor protections, transparency and repeatability of investment process, risk controls, and cost-effectiveness.
    3. For any third-party investment management arrangements, the investment manager must have total assets under management of at least one hundred million dollars ($100,000,000) at the inception of the investment management arrangement with the State Treasurer.
    4. Third-party investment management arrangements may be with persons and legal entities located within or outside the United States, including through any of the following:
       1. Contractual arrangements in which the investment manager has delegated discretion and authority to invest assets.
       2. Investment companies as defined under United States generally accepted accounting principles as promulgated by the Financial Accounting Standards Board, including without limitation entities registered under the Investment Company Act of 1940; individual, common, or collective trust funds of banks and trust companies; limited partnerships; limited liability companies or other limited liability investment vehicles; and insurance contracts that provide for participation in individual or pooled separate accounts of insurance companies.
    5. Investment companies shall provide annual audited financial statements to the State Treasurer, unless the State Treasurer waives the requirement after conducting a cost-benefit analysis.
    6. In connection with any investment otherwise authorized under this section, the State Treasurer may enter into an indemnification agreement provided that, under any agreement, the liability of the State Treasurer will be limited to the amount of the State Treasurer's contractual investment.

a1. The aggregate amount of the investments cannot exceed sixty-five percent (65%) of the market value of all invested assets of the Retirement Systems.

Any limited liability investment vehicles organized by the State Treasurer shall be deemed investment companies for the purposes of this subsection.

History

(1979, c. 467, s. 2; 1983, c. 702, ss. 1-9; 1987, c. 446, s. 1; c. 751, s. 5; 1987 (Reg. Sess., 1988), c. 1070; 1989, c. 770, s. 54; 1989 (Reg. Sess., 1990), c. 813, s. 11; c. 848, s. 5; 1991, c. 542, s. 16; c. 636, s. 3; c. 749, s. 8; 1993 (Reg. Sess., 1994), c. 777, s. 4(i); 1995, c. 346, s. 2; c. 501, s. 2; 1997-456, s. 27; 1999-237, s. 27.16; 1999-251, s. 2; 2000-160, s. 2; 2001-444, ss. 2, 3; 2003-12, s. 2; 2004-124, s. 30.22(b); 2005-144, s. 7; 2005-201, s. 2; 2005-252, s. 1; 2005-276, s. 28.17; 2005-344, s. 10; 2005-417, s. 2; 2007-323, s. 27.7; 2007-384, ss. 2, 3, 7, 8; 2008-13, s. 2; 2008-107, ss. 12.9(b), (c), 12.13; 2009-98, s. 1; 2009-283, s. 2; 2009-451, s. 25.2(a); 2010-175, ss. 3, 4; 2011-145, ss. 6.10(a), 8.20(c); 2011-211, s. 1; 2011-340, s. 4(a), (b); 2012-130, s. 10; 2012-142, s. 6.4; 2012-178, s. 6; 2013-284, s. 1(d); 2013-360, s. 6.3(c); 2013-398, s. 1; 2015-164, s. 3(a); 2015-241, ss. 6.3(a), 14.2; 2016-55, s. 1.3; 2017-57, s. 13A.2(b), (c); 2017-102, s. 28.1(a); 2017-125, s. 6; 2018-5, ss. 5.3(e), 13.5; 2019-162, s. 5; 2019-176, s. 3(e); 2020-69, s. 9(a), (b); 2020-78, s. 7.3(a), (b); 2021-73, ss. 1(b), 2(a).)

Cross References. - As to investment of idle cash by community colleges and technical institutes, see G.S. 115D-58.6.

Editor's Note. - Subsection (a), as amended by Session Laws 1999-251, s. 2, has been set forth above with subdivision designation changes pursuant to direction from the Revisor of Statutes.

The preamble to Session Laws 2003-12, which amended this section, reads as follows: "Whereas, in 2002, Congress enacted the Help America Vote Act of 2002 (HAVA), Public Law 107-252, entitled an act to establish a program to provide funds to states to replace punch card voting systems, to establish the Election Assistance Commission to assist in the administration of federal elections and to otherwise provide assistance with the administration of certain federal election laws and programs, to establish minimum election administration standards for states and units of local government with responsibility for the administration of federal elections, and for other purposes; and has appropriated over thirty-one million dollars ($31,000,000) to the State of North Carolina for the current fiscal year; and

"Whereas, Section 254(b) of HAVA requires each state receiving funds to establish a fund to receive and disburse these funds; Now, therefore,

"The General Assembly of North Carolina enacts:"

Session Laws 2003-12, s. 1, provides: "There is established a special fund to be known as the Election Fund. All funds received for implementation of the Help America Vote Act of 2002, Public Law 107-252, shall be deposited in that fund. The State Board of Elections shall use funds in the Election Fund only to implement HAVA."

Session Laws 2004-124, s. 30.22.(a) and (c) provide: "(a) From funds borrowed from the Escheat Fund pursuant to G.S. 63A-4(a)(22) and G.S. 147-69.2(b)(11), the North Carolina Global TransPark Authority shall make a payment of two million five hundred thousand dollars ($2,500,000) to the Escheat Fund as soon as feasible after the effective date of this section and shall not expend or obligate any other funds that were borrowed from the Escheat Fund except after consultation with the Joint Legislative Commission on Governmental Operations on its intent to expend or obligate the funds.

"(c) All interest on funds borrowed from the Escheat Fund pursuant to G.S. 63A-4(a)(22) and G.S. 147-69.2(b)(11) and on account with the State Treasurer for the benefit of the North Carolina Global TransPark Authority may only be used to repay the loan."

Session Laws 2004-124, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2004'."

Session Laws 2004-124, s. 33.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2004-2005 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2004-2005 fiscal year."

Session Laws 2004-124, s. 33.5, is a severability clause.

Session Laws 2004-138, s. 1.1, provides: "Except after consultation with the Joint Legislative Commission on Governmental Operations on its intent to expend or obligate funds, the North Carolina Global TransPark Authority shall not expend or obligate any funds that were borrowed from the Escheat Fund pursuant to G.S. 63A-4(a)(22) and G.S. 147-69.2(b)(11), or any interest earned on those funds."

The preamble to Session Laws 2005-252, which amended this section, reads as follows: "Whereas, the State Constitution mandates that proceeds of the Escheat Fund shall be utilized to aid needy and worthy North Carolina students enrolled in public institutions of higher education; and

"Whereas, continued tuition increases are intensifying the demand on the Escheat Fund to provide North Carolina students with loans and tuition assistance to offset tuition hikes; and

"Whereas, adoption of a proactive investment policy for the Escheat Fund will enable the State to realize a greater benefit from existing capital, thereby enhancing the Escheat Fund's constitutionally provided purpose; and

"Whereas, the assets of the Escheat Fund have grown to nearly $600,000,000, necessitating the establishment of a modern investment allocation strategy for these funds; and

"Whereas, such a policy will enable the State Treasurer to invest in those types of investments considered prudent for the Escheat Fund; Now, therefore,"

Session Laws 2005-344, s. 14, provides: "Nothing in this act [which established the North Carolina State Lottery] shall be construed to obligate the General Assembly to appropriate funds to implement this act."

Subdivision (a)(17f) was enacted as subdivision (a)(17e) by Session Laws 2005-417, s. 2, and redesignated as subdivision (a)(17f) at the direction of the Revisor of Statutes.

Session Laws 2010-31, s. 28.3(a), provides: "The Board of Directors of the Global TransPark Authority shall report on or before December 31, 2010, to the House Appropriations Subcommittee on Transportation and the Senate Committee on Appropriations on Department of Transportation on the Authority's strategic, business, and financial plans. The report shall include the Authority's proposed schedule to achieve financial self-sufficiency and proposed schedule to repay to the Escheat Fund the investment authorized under G.S. 147-69.2(b)(11) and any accumulated interest, both of which totaled thirty-seven million seven hundred ninety-eight thousand eight hundred ninety-eight dollars and fifty cents ($37,798,898.50) as of March 31, 2010."

Session Laws 2010-31, s. 28.3(b), as amended by Session Laws 2010-123, s. 8.1, provides: "The Program Evaluation Division of the General Assembly shall conduct a comprehensive program and financial review of the North Carolina Global TransPark Authority. The program review shall examine the Authority's operations and evaluate the effectiveness of the Authority in meeting its mission and goals. The financial review shall study the cost-effectiveness of all State funds appropriated to the Authority to date, examine potential efficiency savings, study the long-term operating needs of the Authority, examine the Authority's current business practices, and make recommendations for it to become financially self-sustaining and to fully repay the Escheat Fund. The Division shall prepare a report of the findings and recommendations of the study and submit it to the Joint Legislative Program Evaluation Oversight Committee no later than May 1, 2011.

Sessions Laws 2011-340, s. 4(a), effective July 1, 2011, repealed Session Laws 2011-145, s. 6.10, which in subsection (a) amended G.S. 147-69.2, effective July 1, 2011. The repealed amendment to this section by Session Laws 2011-145, s. 6.10(a) was identical to the amendment made to this section by Session Laws 2011-340, s. 4(b).

Session Laws 2013-360, s. 6.3(a), provides: "The Office of State Budget and Management shall transfer funds from the Reserve for Global TransPark Loan Repayment to the Escheat Fund as payment-in-full for the outstanding loan from the Escheat Fund to the Global TransPark Authority originally authorized under G.S. 63A-4(a)(22) and G.S. 147-69.2(b)(11)."

Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'"

Session Laws 2013-360, s. 38.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2013-2015 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2013-2015 fiscal biennium."

Session Laws 2013-360, s. 38.5, is a severability clause.

Session Laws 2014-100, s. 25.1(a)-(d), provides: "(a) In addition to all other audits and reports required by law, the State Treasurer shall prepare and issue, for the 2014-2015 fiscal year, a set of financial statements regarding the investment programs for the Retirement Systems enumerated in G.S. 147-69.2(b)(8). These financial statements shall be audited by a commercial independent third-party audit firm selected and engaged by the State Auditor based upon selection criteria developed by the State Auditor in consultation with the State Treasurer. The audit firm's report and the financial statements shall be provided to the State Controller and the General Assembly no later than January 1, 2016.

"(b) Supplementary information accompanying the financial statements required by subsection (a) of this section shall include a discussion of the Retirement Systems' risk and returns compared to benchmarks, total management fees and incentives paid, and comparisons to peer cost benchmarks.

"(c) The State Treasurer shall transfer to the State Auditor, from the assets of the Retirement Systems, the funds necessary to conduct the third-party audit required under this section.

"(d) The State Treasurer shall engage a commercial independent expert firm pursuant to G.S. 147-69.3(g) to evaluate the governance, operations, and investment practices of the State Treasurer in order to develop recommendations for improvement. The firm shall evaluate any potential cost-savings and performance impact generated by additional internal management of investments. The report of the expert firm shall be provided to the General Assembly when complete."

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year."

Session Laws 2014-100, s. 38.7, is a severability clause.

Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'"

Subdivision (a)(17m) was enacted as subdivision (a)(17 l ) by Session Laws 2018-5, s. 5.3(e). It was renumbered as subdivision (a)(17m) at the direction of the Revisor of Statutes.

Session Laws 2018-5, s. 39.7, is a severability clause.

This section was amended by Session Laws 2019-176, s. 3(e), effective July 1, 2020, but was not set out in the coded bill drafting format provided by G.S. 120-20.1. The language in the act read "amended by adding a new subdivision." The subdivision was set out as subdivision (15a) at the direction of the Revisor of Statutes. Session Laws 2020-69, s. 9(a), (b), rewrote the introductory language of Session Laws 2019-176, s. 3(e) to read: "G.S. 147-69.2(a)(15) reads as rewritten:" and repealed subdivision (a)(15a), effective July 1, 2020. Subdivision (a)(15) now appears as rewritten by Session Laws 2019-176, s. 3(e), as amended by Session Laws 2020-69, s. 9(a).

Session Laws 2020-78, s. 22.1, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium."

Session Laws 2020-78, s. 22.3, is a severability clause.

Effect of Amendments. - Session Laws 2004-124, s. 30.22(b), effective July 1, 2004, substituted "July 1, 2005" for "September 1, 2004" in the first sentence of subdivision (b)(11).

Session Laws 2005-144, s. 7, effective June 30, 2005, substituted "July 31, 2005" for "July 1, 2005" at the end of the first sentence in subdivision (b)(11).

Session Laws 2005-201, s. 2, effective July 19, 2005, substituted "August" for "July" at the end of the first sentence in subdivision (b)(11).

Session Laws 2005-252, s. 1, effective August 5, 2005, added subdivision (b)(12).

Session Laws 2005-276, s. 28.17, effective July 1, 2005, in subdivision (b)(11), in the first sentence, substituted "October 1, 2007" for "August 31, 2005" and added the second paragraph.

Session Laws 2005-344, s. 10, effective August 31, 2005, made minor stylistic changes and added subdivision (a)(17e).

Session Laws 2005-417, s. 2, effective October 1, 2005, added "each of the following" to the end of the introductory language of subsection (a); added subdivisions (a)(16a) and (a)(17f); in the first paragraph of subdivision (b)(8), deleted "and" preceding " the North Carolina National" and inserted "and assets invested pursuant to subdivision (b2) of this section" and in the second paragraph, inserted "for the Retirement Systems" preceding "under this subdivision"; added subsections (b2) and (b3); and made minor punctuation changes.

Session Laws 2007-323, s. 27.7, effective July 1, 2007, substituted "2009" for "2007" at the end of the first sentence of subdivision (b)(11).

Session Laws 2007-384, ss. 2, 3, 7 and 8, effective August 19, 2007, added subdivisions (a)(17g) and (17h); and added subsections (b4) and (b5).

Session Laws 2008-13, s. 2, effective June 25, 2008, added subdivision (a)(19).

Session Laws 2008-107, ss. 12.9(b), (c), and 12.13, effective July 1, 2008, added subdivisions (a)(17i) and (a)(17j) and subsection (d).

Session Laws 2009-98, s. 1, effective June 11, 2009, substituted "The State Health Plan for Teachers and State Employees" for "The Teachers' and State Employees' Hospital and Medical Insurance Plan" in subdivision (a)(3); and rewrote subsections (b) and (b1) through (b5).

Session Laws 2009-283, s. 2, effective July 10, 2009, in subsection (b1), in the first sentence, substituted "subsections (b)(7), (b)(8), and (b)(9)" for "subsections (b)(8) and (b)(9)" near the beginning, "seven members" for "five members" near the middle, and "four members" for "two members" near the end; and rewrote the second sentence.

Session Laws 2009-451, s. 25.2(a), effective July 1, 2009, substituted "October 1, 2011" for "October 1, 2009" in the first sentence of subdivision (b)(11).

Session Laws 2010-175, ss. 3 and 4, effective July 1, 2010, rewrote subdivision (a)(17g), which formerly read: "The Local Government Other Post-Employment Benefits Fund"; and in subsection (b4), in the first sentence, substituted "deposited pursuant to subdivision (17g) of subsection (a) of this section" for "deposited in the Local Government Other Post-Employment Benefits Fund," added the second sentence, in the third sentence, deleted "from that Fund made" following "For investments," and substituted "as a condition of participation pursuant to this subsection" for "as a condition of making the investment," and in the last sentence, substituted "Fees assessed by the State Treasurer" for "The fee."

Session Laws 2011-145, s. 8.20(c), effective July 1, 2011, added subdivision (a)(20).

Session Laws 2011-211, s. 1, effective June 23, 2011, in the introductory paragraph of subsection (b), deleted "selecting from among the following" from the end of the first sentence, and added the last two sentences; in subdivision (b)(1), deleted "Any of the" from the beginning; made a minor stylistic change in subdivision (b)(6c); in subdivision (b)(8), added the second paragraph and rewrote the third paragraph; and in subdivision (b)(9), in the first sentence, inserted "(i)," deleted "public or" preceding "private equity," and added "or (ii) to engage in other strategies not expressly authorized by any other subdivision of this subsection," and in the last sentence, substituted "seven and one-half percent (7.5%)" for "five percent (5%)."

Session Laws 2011-340, s. 4(b), effective July 1, 2011, substituted "October 1, 2012" for "October 1, 2011" in the first paragraph of subdivision (b)(11).

Session Laws 2012-130, s. 10, effective July 1, 2012, substituted "Benefit Fund" for "Premium Reserve Account" in subdivision (a)(17c).

Session Laws 2012-142, s. 6.4, effective July 1, 2012, substituted "October 1, 2014" for "October 1, 2012" in the first sentence of subdivision (b)(11).

Session Laws 2012-178, s. 6, effective July 1, 2012, inserted "and the Retiree Health Benefit" in the first paragraph of subdivision (b)(8).

Session Laws 2013-284, s. 1(d), effective July 1, 2013, substituted "Firefighters"' for "Firemen's" in subdivisions (a)(6) and (b)(8).

Session Laws 2013-360, s. 6.3(c), effective July 1, 2013, repealed subdivision (b)(11).

Session Laws 2013-398, s. 1, effective August 23, 2013, in subsection (b), added "that investment shall continue to be authorized by this subsection, and," and added the last sentence; in subdivision (b)(6c), deleted "and other" following "obligations," and substituted "and asset-backed securities, whether considered debt or equity, including obligations and" for "including debt" and "seven and one-half percent (7.5%)" for "five percent (5%)"; in subdivision (b)(7), added "and (vii) contractual arrangements in which the investment manager has discretion and authority to invest assets specified in such arrangements in investments authorized by this subsection" and "excluding asset-backed financing," and made a minor stylistic change; in sub-subdivision (b)(8)b., substituted "eight" for "six" and "(8.5%)" for "(6.5%)"; substituted "eight and three-quarters percent (8.75%)" for "seven and one-half percent (7.5%)" in subdivision (b)(9); in subdivision (b)(9a), substituted "investments" for "assets" and "seven and one-half percent (7.5%)" for "five percent (5%)," and added "by the Treasurer"; and added subdivision (b)(10a).

Session Laws 2015-164, s. 3(a), effective October 1, 2015, rewrote subdivision (b)(6b).

Session Laws 2015-241, ss. 6.3(a) and 14.2, effective July 1, 2015, rewrote subdivision (b)(12); and in subsection (d), substituted "subdivisions (a)(17i) or (a)(17j)" for "subdivision (a)(17i)" in the first sentence, and, in the third sentence, substituted the first occurrence of "Fund or the Conservation Grant Fund, as applicable" for "Fund", substituted the second occurrence of "Fund or the Conservation Grant Fund" for "Fund", and substituted "contributed to the respective Funds" for "thereof contributed".

Session Laws 2016-55, s. 1.3, effective January 31, 2017, in subsection (a), deleted subdivisions (a)(4), (a)(13), and (a)(14); in subdivisions (a)(1), (a)(2), and (a)(8), substituted "System of North Carolina" for "System"; in subdivision (a)(5), substituted "Income Plan of North Carolina" for "Plan"; in subdivision (a)(6), inserted "North Carolina" and "Squad"; and in subdivision (a)(7), inserted "North Carolina"; in subsection (b), substituted "subsection in the manner authorized by subsection (e) of this section" for "subsection"; and added the final sentence; in subdivision (b)(4), substituted "if, when acquired" for "if," and "are within one of the four highest rating categories regardless of gradations, such as ratings beginning with 'AAA,' 'AA' 'A,' or either 'BBB' or 'Baa,' of at least one nationally recognized rating service designated by the U.S. Securities and Exchange Commission" for "bear one of the four highest ratings of at least one nationally recognized rating service when acquired"; in subdivision (b)(6), substituted "equity), if, when acquired, the obligations are within one of the four highest ratings categories regardless of gradations, such as ratings beginning with 'AAA,' 'AA,' 'A,' or either 'BBB' or 'Baa,' of at least one" for "equity) provided they bear ratings by," and "service designated by the U.S. Securities and Exchange Commission" for "services as provided in G.S. 147-69.2(b)(4)"; deleted subdivisions (b)(6b), and (b)(12)b.; and rewrote subdivisions (b)(6c), (b)(7), (b)(8), (b)(9), (b)(9a), (b)(10a); in subsection (b1); substituted "The" for "With respect to investments authorized by subdivisions (b)(7), (b)(8), and (b)(9) of this section, the," and "All appointed" for "The four public"; in subsections (b2) and (b3), substituted "subsection and expenditures authorized under this section" for "subsection"; in subsections (b4) and (b5), inserted "reasonable"; and substituted "Fund and expenditures authorized under this section" for "Fund"; in subsection (d), inserted "Fees assessed by the State Treasurer may be used to defray the costs of administering the funds and expenditures authorized under this section"; and added subsection (e).

Session Laws 2017-57, ss. 13A.2(b) and 13A.2(c), effective July 1, 2017, added subdivision (a)(17k); and in subsection (d), substituted "subdivisions (17i), (17j), and (17k) of subsection (a)" for "subdivisions (a)(17i) or (a)(17j)", in the last sentence, added "or the Wildlife Endowment Fund," in two places, and made stylistic changes.

Session Laws 2017-102, s. 28.1(a), effective July 12, 2017, in the introductory paragraph of subsection (b), substituted "these funds" for "such funds" at the end of the first sentence, and added "The State Treasurer shall select from among the following investments subject to the following limitations and requirements" at the end; and made stylistic changes in subdivisions (b)(8) and (12).

Session Laws 2017-125, s. 6, effective July 20, 2017, added subdivision (a)(21).

Session Laws 2018-5, s. 5.3(e), effective July 1, 2018, added subdivision (a)(17 l ). For redesignation of subdivision, see editor's note.

Session Laws 2018-5, s. 13.5, effective July 1, 2018, added subdivision (a)(17 l ).

Session Laws 2019-162, s. 5, effective July 25, 2019, added subdivision (a)(22).

Session Laws 2019-176, s. 3(e), as amended by Session Laws 2020-69, s. 9(a), effective July 1, 2020, substituted "State Public Education Property Insurance Fund" for "Public School Insurance Fund" in subdivision (a)(15). See editor's note.

Session Laws 2020-69, s. 9(b), effective July 1, 2020, deleted subdivision (a)(15a), which read: "The State Public Education Property Insurance Fund."

Session Laws 2020-78, s. 7.3(a), (b), effective July 1, 2020, added subsection (a)(17n); and in subsection (d), substituted "subdivisions (17i), (17j), (17k), (17 l ), and (17n)" for "subdivisions (17i), (17j), and (17k)" in the first sentence, and added "the Ecosystem Restoration Fund, the Riparian Buffer Restoration Fund" twice in the last sentence.

Session Laws 2021-73, ss. 1(b), 2(a), effective July 2, 2021, added subdivision (a)(23), and subsections (b6), and (b7).

Legal Periodicals. - For note, "North Carolina's South African Divestment Statute," see 67 N.C.L. Rev. 949 (1989).

Opinions of Attorney General

Investments made through the North Carolina Equity Investment Fund Pooled Trust and managed by State Street Bank and Trust Company are not subject to the conditions set forth in subdivisions (8)a.-g. of this section. See opinion of Attorney General to Ralph Campbell, Jr., State Auditor, 2002 N.C.A.G. 31 (12/12/02).

Investments in Limited Partnerships or Limited Liability Companies. - Authority of the State Treasurer under subdivision (b)(9) of this section to invest in limited partnerships or limited liability companies does not specify or limit the types of investment vehicles in which the limited partnerships or limited liability companies may invest; therefore, investments in derivatives are not prohibited. See opinion of Attorney General to Ralph Campbell, Jr., State Auditor, 2002 N.C.A.G. 31 (12/12/02).

Economic Development - As long as an investment by the State Treasurer is authorized by this section and G.S.147-69.3, it is not disqualified by the fact that it might indirectly facilitate economic development. See opinion of Attorney General to Ralph Campbell, Jr., State Auditor, 2002 N.C.A.G. 31 (12/12/02).

§ 147-69.2A. Investments; special funds held by the State Treasurer.

1. Firm to Administer Special Fund. - Following a public procurement process, a designee of the Governor, a designee of the State Treasurer, a designee of the Speaker of the House of Representatives, and a designee of the President Pro Tempore of the Senate shall jointly and unanimously select a third-party professional investment management firm, subject to the rules and regulations of the U.S. Securities and Exchange Commission, to administer a special fund created to invest assets described in G.S. 147-69.2(b)(12)c. and select investment opportunities appropriate for receiving allocations from the Fund on the basis of potential return on investment and the risks attendant thereto. The State Treasurer shall assign professional and clerical staff to assist in the oversight of the Fund. All costs for the third-party investment management firm and the professional and clerical staff shall be borne by the Fund pursuant to G.S. 147-69.3(f). The State Treasurer shall discharge his or her duties with respect to the Fund as a fiduciary consistent with G.S. 147-69.7.
2. Organization and Reporting. - All documents of the Governor or the State Treasurer concerning the Fund are public records governed by Chapter 132 of the General Statutes and any applicable provisions of the General Statutes protecting confidential information.
3. Types of Investments. - Assets of the Fund may be invested in those types of investments authorized for the North Carolina Retirement Systems by G.S. 147-69.2(b), notwithstanding the percentage limitations imposed on the Retirement Systems' investments under those subdivisions.
4. Report on Escheat Fund Financial Status. - The State Treasurer shall engage a third-party professional consultant to conduct an assessment and projection of the financial status of the Escheat Fund. The associated costs for the services may be directly charged to the Escheat Fund. The State Treasurer shall communicate the assessment of the consultant in an annual report to the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the chairs of the respective appropriations and appropriate substantive committees of each chamber. The annual report shall evaluate claims by owners upon the Escheat Fund, current and projected investment returns, and projected contributions to the Escheat Fund, current and projected legislative appropriations, and authorized expenses. In the report, the State Treasurer shall assess the status of utilizing the Escheat Fund as an endowment fund and shall recommend an annual amount available for the funding of scholarships, loans, and grants from the Fund. The annual report shall be presented no later than December 31 of each year.

The State Treasurer and the Governor shall jointly develop and adopt an investment policy statement for the Fund.

The State Treasurer and Governor shall jointly adopt a common policy to prevent conflicts of interests such that (i) the designees of the State Treasurer and Governor who selected the third-party investment management firm, (ii) the staff of the State Treasurer overseeing the Fund, and (iii) the third-party investment management firm's employees selecting or overseeing Fund investments do not provide services for compensation (as an employee, consultant, or otherwise), within two years after the end of their service to the Fund, to any entity in which an investment from the Fund was made.

By October 1, 2015, and at least semiannually thereafter, the State Treasurer shall submit a report to the Governor, the Office of State Budget and Management, the Joint Legislative Commission on Governmental Operations, and the Fiscal Research Division on investments made from the Fund and any return on investment. This report shall be made for the Fund in lieu of the reports required by G.S. 147-69.8 and G.S. 147-69.12(b).

History

(2015-241, s. 6.3(b); 2016-55, ss. 1.4(a), (b), 4.3; 2017-129, s. 10.)

Editor's Note. - Session Laws 2016-55, s. 4.4, made the amendment to subsection (b) of this section by Session Laws 2016-55, s. 4.3, applicable to all reporting periods beginning on or after July 1, 2016.

Effect of Amendments. - Session Laws 2016-55, s. 1.4(a), (b), effective January 31, 2017, in subsection (a), inserted "Special" in the subsection heading, substituted "a special fund created to invest assets described in G.S. 147-69.2(b)(12)c" for "the Fund' in the first sentence and substituted "G.S. 147-69.7" for "the provisions of applicable law, including, without limitation, G.S. 36E-3." in the last sentence; in subsection (d), substituted "Financial Status" for "Valuation" in the heading, substituted "consultant to conduct an assessment" for "actuary or consultant to conduct a valuation" in the first sentence, substituted "assessment of the" for "valuation of the actuary" in the third sentence and inserted "current and projected legislative appropriations, and authorized expenses" in the fourth sentence.

Session Laws 2016-55, s. 4.3, effective July 1, 2016, in the last sentence of subsection (b), substituted "G.S. 147-69.8 and G.S. 147-69.12(b)" for "G.S. 147-69.1(c), 147-69.2(b)(10a), 147-69.3(h), 147-69.3(i), and 147-69.8." See editor's note for applicability.

Session Laws 2017-129, s. 10, effective July 20, 2017, substituted "subject to the rules and regulations of" for "registered with" in the first sentence of subsection (a).

§ 147-69.3. Administration of State Treasurer's investment programs.

1. The State Treasurer shall establish, maintain, administer, manage, and operate within the Department of State Treasurer one or more investment programs for the deposit and investment of assets pursuant to the provisions of G.S. 147-69.1 and G.S. 147-69.2. Different Retirement Systems and other funds held by the State Treasurer may be invested collectively or separately in the State Treasurer's discretion consistent with the fiduciary duties stated in G.S. 147-69.7.
2. Any official, board, commission, other public authority, local government, school administrative unit, local ABC board, or community college of the State having custody of any funds not required by law to be deposited with and invested by the State Treasurer may deposit all or any portion of those funds with the State Treasurer for investment in one of the investment programs established pursuant to this section, subject to any provisions of law with respect to eligible investments, provided that any occupational licensing board as defined in G.S. 93B-1 may participate in one of the investment programs established pursuant to this section regardless of whether or not the funds were required by law to be deposited with and invested by the State Treasurer. In the absence of specific statutory provisions to the contrary, any of those funds may be invested in accordance with the provisions of G.S. 147-69.2 and 147-69.3. Upon request from any depositor eligible under this subsection, the State Treasurer may authorize moneys invested pursuant to this subsection to be withdrawn by warrant on the State Treasurer.
3. The State Treasurer's investment programs shall be so managed that in the judgment of the State Treasurer funds may be readily converted into cash when needed.
4. Except as provided by G.S. 147-69.1(d), the total return earned on investments shall accrue pro rata to the fund whose assets are invested according to the formula prescribed by the State Treasurer with the approval of the Governor and Council of State.
5. The State Treasurer has full powers as a fiduciary to hold, purchase, sell, assign, transfer, lend and dispose of any of the securities or investments in which any of the programs created pursuant to this section have been invested, and may reinvest the proceeds from the sale of those securities or investments and any other investable assets of the program.
6. The cost of administration, management, and operation of investment programs established pursuant to this section shall be apportioned equitably among the programs in such manner as may be prescribed by the State Treasurer, such costs to be paid from each program, and to the extent not otherwise chargeable directly to the income or assets of the specific investment program or pooled investment vehicle, shall be deposited with the State Treasurer as a General Fund nontax revenue. The cost of administration, management, and operation of investment programs established pursuant to this section and not directly paid from the income or assets of such program shall be covered by an appropriation to the State Treasurer for this purpose in the Current Operations Appropriations Act.
7. The State Treasurer is authorized to retain the services of independent appraisers, auditors, actuaries, attorneys, investment counseling firms, statisticians, custodians, or other persons or firms possessing specialized skills or knowledge necessary for the proper administration of investment programs created pursuant to this section.
8. ,  (i) Repealed by Session Laws 2016-55, s. 2.1, effective January 31, 2017.
9. The State Treasurer shall report the incentive bonus paid to the Chief Investment Officer to the Joint Legislative Commission on Governmental Operations by October 1 of each year.
10. In order to promote achievement of long-term investment objectives and to retain key public employees with investment functions, the State Treasurer is authorized to establish, consistent with the State Treasurer's fiduciary duties, market-oriented compensation plans, including salaries and performance-related bonuses, for employees possessing specialized skills or knowledge necessary for the proper administration of investment programs, who shall be exempt from the classification and compensation rules established by the Office of State Human Resources. The design and administration of those compensation plans shall be based on compensation studies conducted by a nationally recognized firm specializing in public fund investment compensation. The compensation and other associated employee benefits shall be apportioned directly from the investment program. The Treasurer shall report the salaries and bonuses paid to the Joint Legislative Oversight Committee on General Government annually.
11. The Treasurer may invest in the countries of Sudan and South Sudan to the extent not prohibited by the United States Government, or to the extent that such investment is part of an index or index replication strategy, a commingled fund, limited partnership, or similar investment vehicle, or a derivative instrument.
12. Subject to the provisions of G.S. 147-69.1(d), the State Treasurer shall adopt any rules necessary to carry out the provisions of this section.

History

(1979, c. 467, s. 3; 1981, c. 445, ss. 4, 5; 1983, c. 515, s. 1; c. 702, s. 10; 1983 (Reg. Sess., 1984), c. 1034, ss. 116, 117; 1987, c. 751, ss. 6-8; 2001-444, s. 4; 2002-126, s. 6.12; 2005-276, s. 27.3; 2006-203, s. 119; 2008-132, s. 5; 2014-100, s. 33.2(a); 2016-55, s. 2.1; 2021-58, s. 1(a).)

Cross References. - As to investment of idle cash by community colleges, see G.S. 115D-58.6.

Editor's Note. - Session Laws 2008-132, s. 5, effective July 1, 2008, was codified as subsection (i2) of this section at the direction of the Revisor of Statutes.

Session Laws 2015-118, s. 4(a), provides: "Pursuant to G.S. 147-69.3(g), the State Treasurer is authorized to retain the services of consultants, professional individuals, analysts, data collection firms, or other persons possessing specialized skills or knowledge necessary for the proper implementation and administration of the requirements of this act."

Effect of Amendments. - Session Laws 2005-276, s. 27.3, effective July 1, 2005, added subsection (il).

Session Laws 2006-203, s. 119, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, deleted "the Advisory Budget Commission," following "the State Auditor," in the last sentence of subsection (h).

Session Laws 2014-100, s. 33.2(a), effective July 1, 2014, rewrote subsection (i2).

Session Laws 2016-55, s. 2.1, effective January 31, 2017, in subsection (a), added "Different Retirement Systems and other funds held by the State Treasurer may be invested collectively or separately in the State Treasurer's discretion consistent with the fiduciary duties stated in G.S. 147-69.7"; deleted subsections (h) and (i); and in subsection (i2), substituted "establish, consistent with the State Treasurer's fiduciary duties" for "establish."

Session Laws 2021-58, s. 1(a), effective June 28, 2021, added subsection (i3).

Opinions of Attorney General

Commission Recapture Program - Funds generated through the commission recapture program are available for payment of authorized expenses to the same extent as other income and assets of the State Treasurer's investment programs. See opinion of Attorney General to Ralph Campbell, Jr., State Auditor, 2002 N.C.A.G. 31 (12/12/02).

Contracts for Administration of Investment Programs - Pursuant to subsection (g) of this section, the State Treasurer has authority to contract with independent appraisers, auditors, actuaries, attorneys, investment counseling firms, statisticians, custodians, or other persons or firms possessing specialized skills or knowledge necessary for the proper administration of investment programs without adhering to the requirements set forth in G.S. Ch. 143, Arts. 3 and 3C. See opinion of Attorney General to Ralph Campbell, Jr., State Auditor, 2002 N.C.A.G. 31 (12/12/02).

Economic Development - As long as an investment by the State Treasurer is authorized by G.S.147-69.2 and this section, it is not disqualified by the fact that it might indirectly facilitate economic development. See opinion of Attorney General to Ralph Campbell, Jr., State Auditor, 2002 N.C.A.G. 31 (12/12/02).

§ 147-69.3A. Liability insurance for State Treasurer.

1. The State Treasurer may purchase commercial insurance of any kind to cover all risks or potential liability of the State Treasurer, boards in the Department of the State Treasurer, members of boards in the Department of the State Treasurer, and employees and agents of the State Treasurer, including the risks and potential liability related to investments managed by the State Treasurer.
2. Board members and employees of boards in the Department of the State Treasurer shall be considered State employees for purposes of Articles 31 and 31A of Chapter 143 of the General Statutes. To the extent that the State Treasurer purchases commercial liability insurance coverage in excess of one hundred fifty thousand dollars ($150,000) per claim for liability arising under Article 31 or 31A of Chapter 143 of the General Statutes, the provisions of G.S. 143-299.4 shall not apply. To the extent that the State Treasurer purchases commercial insurance coverage for liability arising under Article 31 or 31A of Chapter 143 of the General Statutes, the provisions of G.S. 143-300.6(a) shall not apply.
3. The purchase of insurance by the State Treasurer under this section shall not be construed to waive sovereign immunity or any other defense available to the State Treasurer, boards in the Department of the State Treasurer, members of boards in the Department of the State Treasurer, or employees or agents of the State Treasurer in an action or contested matter in any court, agency, or tribunal. The purchase of insurance by the State Treasurer shall not be construed to alter or expand the limitations on claims or payments established in G.S. 143-299.2 or limit the right of the State Treasurer, board members, employees, or agents to defense by the State as provided by G.S. 143-300.3.

History

(2011-300, s. 1.)

§ 147-69.4: Repealed by Session Laws 2010-175, s. 5, effective July 1, 2010.

History

(2007-384, s. 1; repealed by 2010-175, s. 5, effective July 1, 2010.)

Editor's Note. - Former G.S. 147-69.4 established the Local Government Other Post-Employment Benefits Fund.

§ 147-69.5. Local Government Law Enforcement Special Separation Allowance Fund.

The Local Government Law Enforcement Special Separation Allowance Fund is established as a fund in the Office of the State Treasurer under the management of the Treasurer. The Fund consists of contributions made by entities authorized to make contributions to the Fund and interest and other investment income earned by the Fund. Contributions to the Fund are irrevocable. Assets of the Fund may be used only to provide law enforcement special separation allowance benefits to individuals who are former employees of a unit of local government that contributes to the Fund and are entitled to law enforcement special separation allowance payable by the unit. The assets of the Fund are not subject to the claims of creditors of an entity that contributes to the Fund.

History

(2007-384, s. 6.)

§ 147-69.6. Swain County Settlement Trust Fund.

1. The Swain County Settlement Trust Fund is established as a special fund in the Office of the State Treasurer under the management of the Treasurer. The Treasurer may invest the assets of the Fund in any of the investments authorized under subdivisions (b)(1) through (6) and subdivision (b)(8) of G.S. 147-69.2. The Fund shall consist of the proceeds of any payments made by the United States in settlement of the 1943 agreement between Swain County and the United States Department of Interior, such other contributions as Swain County or other entities may choose to make to the Fund, and the interest and other investment income earned by the Fund. For the purposes of this section, the initial balance of the Fund shall be defined as fifty-two million dollars ($52,000,000).
2. Contributions to the Fund are irrevocable. Assets in the Fund may be disbursed only to Swain County.
3. The State Treasurer shall disburse to Swain County amounts requested by the Swain County Board of Commissioners pursuant to a majority vote of that body, provided that disbursements to Swain County under this subsection shall not be made from the initial balance of the Fund. Disbursements made pursuant to this subsection shall occur no more frequently than once per quarter.
4. No portion of the initial balance of the Fund may be disbursed to Swain County absent a request by the Swain County Board of Commissioners accompanied by a certification by the Swain County Board of Elections that two-thirds of the registered voters of Swain County voted in favor of the disbursement and subsequent expenditure of the amount requested in a referendum conducted under subsection (f) of this section.
5. Funds disbursed to Swain County under subsections (b) or (c) of this section shall be managed by the county in accordance with the requirements of the Local Government Budget and Fiscal Control Act, as amended.
6. No part of the initial balance of the Swain County Settlement Trust Fund or of any interest or other income earned on that initial balance may be paid to or received by any agent or attorney on account of services rendered in connection with negotiating the settlement agreement between Swain County and the United States Department of Interior or obtaining the monetary settlement from the United States.
7. The Board of Commissioners of Swain County may direct the Swain County Board of Elections to conduct an advisory referendum on the question of whether any portion of the initial balance of the Fund should be disbursed to and expended by the county for a particular purpose. The election shall be held in accordance with the procedures of G.S. 163-287. The question to be presented on the ballot shall disclose the specific purpose proposed for expenditure of the initial balance of the Trust Fund and the amount proposed for expenditure.
8. The Swain County Settlement Trust Fund is subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes.
9. The Swain County Settlement Trust Fund and the income therefrom shall not take the place of or be counted against any other State appropriations or program providing funds or disbursements to Swain County.

History

(2008-13, s. 3; 2013-381, s. 10.22; 2017-6, s. 3; 2018-146, ss. 3.1(a), (b), 6.1; 2019-133, s. 1; 2021-73, s. 2(b).)

Re-recodification; Technical and Conforming Changes. - Session Laws 2017-6, s. 3, provides, in part: "The Revisor of Statutes shall recodify Chapter 138A of the General Statutes, Chapter 120C of the General Statutes, as well as Chapter 163 of the General Statutes, as amended by this act, into a new Chapter 163A of the General Statutes to be entitled 'Elections and Ethics Enforcement Act,' as enacted by Section 4 of this act. The Revisor may also recodify into the new Chapter 163A of the General Statutes other existing statutory laws relating to elections and ethics enforcement that are located elsewhere in the General Statutes as the Revisor deems appropriate." The Revisor was further authorized to make technical and conforming changes to catchlines, internal citations, and other references throughout the General Statutes to effectuate this recodification. Pursuant to this authority, the Revisor substituted "G.S. 163A-1592" for "G.S. 163-287" in subsection (f).

Session Laws 2018-146, ss. 3.1(a), (b), and 6.1, repealed Session Laws 2017-6, s. 3, and authorized the Revisor of Statutes to re-recodify Chapter 163A into Chapters 163, 138A, and 120C and to revert the changes made by the Revisor pursuant to Session Laws 2017-6, s. 3. Pursuant to this authority, the Revisor of Statutes reverted the change to the reference in subsection (f).

Effect of Amendments. - Session Laws 2013-381, s. 10.22, effective January 1, 2014, deleted "on a date jointly agreed upon by the two boards, which may be the same day as any other referendum or election in the county, but may not otherwise be during the period beginning 30 days before and ending 30 days after the day of any other referendum or election to be conducted by the board of elections and already validly called or scheduled by law. The election shall be held" following "The election shall be held" in subsection (f). For applicability, see editor's note.

Session Laws 2019-133, s. 1, effective October 1, 2019, rewrote the section.

Session Laws 2021-73, s. 2(b), effective July 2, 2021, added the second sentence in subsection (a).

§ 147-69.6A. Lumbee Tribe of North Carolina Trust Fund.

1. The Lumbee Tribe of North Carolina Trust Fund is established as a special fund in the Office of the State Treasurer under the management of the Treasurer. The Fund shall consist of all funds received by the Lumbee Tribe of North Carolina for the sale or lease of natural resources from the property described as Parcel 1 in S.L. 2013-186 and the interest and other investment income earned by the Fund. Contributions to the Fund are irrevocable. Assets in the Fund may be disbursed only to the Lumbee Tribal Administration for the purposes provided in this section.
2. The State Treasurer shall disburse to the Lumbee Tribal Administration amounts requested by the Lumbee Tribal Administration for one of the following purposes if the stated conditions are met:
   1. For the payment of property taxes on the described property, upon receipt of a property tax bill issued by the taxing unit.
   2. For the reforestation of the described property under the supervision of a consulting forester registered pursuant to Chapter 89B of the General Statutes, upon receipt of an invoice for (i) the services of the consulting forester or (ii) the purchase and installation of seedlings or saplings.
3. The Lumbee Tribe of North Carolina Trust Fund is subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes.
4. The Lumbee Tribe of North Carolina Trust Fund and the income therefrom shall not take the place of or be counted against any other State appropriations or program providing funds or disbursements to the Lumbee Tribe of North Carolina.

History

(2019-162, s. 6.)

Editor's Note. - Session Laws 2019-162, s. 6, made this section effective July 25, 2019.

Session Laws 2013-186, ss. 1-6, as amended by Session Laws 2019-162, ss. 2, 3, provides: "1. Definitions. - The following definitions apply in this act:

"(1) Indian Cultural Center site. - Parcel 1, less and except approximately 110 acres for the use and operation of the Riverside Golf Course within Parcel 1, as well as Parcel 2, Parcel 3, and Parcel 4, all of which are located in Maxton Township, Robeson County, and which is more particularly described in the conveyance to the Lumbee Tribe of North Carolina in Book 1949, Page 149, Robeson County Registry.

"(2) Parcel 1. - 386.69 acres, more or less, by deed from the Riverside Country Club of Pembroke, Inc., dated April 14, 1983, recorded in Book 533, Page 164, Robeson County Registry and by deed dated August 24, 1984, recorded in Book 563, Page 254, Robeson County Registry.

"(3) Parcel 2. - 91.5 acres, more or less, by deed from Evelyn S. Morgan Abbott, dated March 25, 1988, recorded in Book 575, Page 523, Robeson County Registry.

"(4) Parcel 3. - 10 acres, more or less, by deed from H.C. Locklear, et ux, dated December 12, 1985, recorded in Book 586, Page 142, Robeson County Registry.

"(5) Parcel 4. - 42.50 acres, more or less, by deed from Ronald Revels and wife, Dorisetta Revels, dated December 17, 1996, recorded in Book 931, Page 415, Robeson County Registry.'

"2. Termination of leases. - (a) The Department of Administration shall terminate the lease between the State and the North Carolina Indian Cultural Center, Inc., for the Indian Cultural Center site. Notice of termination shall be given no later than 15 days after the effective date of this act [June 26, 2013].

"2.(b) The Department of Administration shall terminate the lease between the State and the Riverside Golf Center for the property known as the Riverside Golf Course, which is located within Parcel 1. Notice of termination shall be provided in accordance with the terms of the existing lease. Thirty days' notice shall be given, as required under the lease, and notice shall be given no later than 15 days after the effective date of this act [June 26, 2013].

"3. Appraisal of Parcel 1. - The Department of Administration shall obtain an appraisal for Parcel 1, for which the sum of seven thousand three hundred dollars ($7,300) is appropriated from the General Fund to the Department of Administration. This appraisal shall include both of the following:

"(1) An appraisal of Parcel 1 subject to the restrictive covenants and reversion to the State provided in Section 4(a) of this act.

"(2) An appraisal of Parcel 1 without the restrictive covenants and reversion to the State provided in Section 4(a) of this act.

"4. Sale of Parcel 1. - (a) The Department of Administration shall first offer Parcel 1 to the Lumbee Tribal Administration for purchase, subject to the following restrictive covenants that would run with the land, a violation of any of which would result in the property reverting to State ownership:

"(1) The land must be made and remain open and available for public use.

"(2) The land must be made and remain open and available for public use.

"(3) The parcel cannot be subdivided.

"(4) Repealed by Session Laws 2019-162, s. 3, effective October 1, 2019."

"If any provision of this subsection or its application is held invalid, the invalidity does not affect other provisions or applications of this subsection that can be given effect without the invalid provisions or application, and to this end the provisions of this subsection are severable."

"4.(b) The Department of Administration shall provide a copy of the appraisal required under Section 3 of this act to the Lumbee Tribal Administration. The Lumbee Tribal Administration shall have 90 days from receipt of a copy of the appraisal to enter into a contract to purchase the property for the appraised price or a negotiated price based upon the appraised price.

"4.(c) If the Lumbee Tribal Administration does not enter into a contract with the State to purchase the property within 90 days of receiving the appraisal of Parcel 1, then the Department of Administration shall dispose of Parcel 1 according to the general laws for the sale of State land and without the restrictive covenants or reversionary interest discussed in subsection (a) of this section.

"4.(d) Although the Department of Administration may enter into a purchase contract with the Lumbee Tribal Administration under subsection (b) of this section, the sale shall not be finalized until after consultation with the Joint Legislative Program Evaluation Oversight Committee. The Department shall submit a detailed report of the transaction, including a copy of the purchase contract, to the Chairs of the Committee and to the Director of the Program Evaluation Division of the General Assembly. If the Committee does not hold a meeting to hear the consultation within 90 days of receiving the submission of the detailed report, the consultation requirement is satisfied. This consultation is in addition to any consultation with the Joint Legislative Commission on Governmental Operations that may be required under G.S. 146-27(b).

"5. Proceeds of sale of Parcel 1. - The net proceeds of the sale under Section 4 of this act shall be distributed as follows:

"(1) The sum of seven thousand three hundred dollars ($7,300) shall be deposited into the General Fund in order to reimburse the General Fund for the appropriation made in Section 3 of this act.

"(2) Any funds remaining after funds are deposited under subdivision (1) of this section shall be distributed as follows:

"a. Twenty-five percent (25%) shall be deposited into the General Fund and shall be appropriated from the General Fund to the Department of Environment and Natural Resources, Division of Parks and Recreation, for improvements to Parcel 2, Parcel 3, and Parcel 4.

"b. Seventy-five percent (75%) shall be deposited into the Savings Reserve Account established under G.S. 143C-4-2.

"6. Allocation of other parcels. - Parcel 2, Parcel 3, and Parcel 4 are allocated to the Department of Environment and Natural Resources, Division of Parks and Recreation, to be used as part of the Lumber River State Park."

Session Laws 2019-162, s. 4, provides: "All funds received from the sale or lease of natural resources from the property described as Parcel 1 in S.L. 2013-186, as amended by Sections 2 and 3 of this act, shall be deposited into the Lumbee Tribe of North Carolina Trust Fund established by G.S. 147-69.6A and may only be expended pursuant to the conditions of that fund."

§ 147-69.7. Discharge of duties to funds.

1. The State Treasurer shall discharge his or her duties with respect to each fund or investment program held by the State Treasurer, including each of the funds, enumerated in G.S. 147-69.2 as follows:
   1. Solely in the interest of the intended beneficiaries of the fund, if any.
   2. For the exclusive purpose of carrying out the purpose of the fund, including providing benefits to participants and beneficiaries, and paying reasonable expenses of administering the fund.
   3. With the care, skill, and caution that a prudent investor would use after considering the purposes, distribution requirements, and other circumstances then prevailing.
   4. Impartially, taking into account any differing interests of participants and beneficiaries.
   5. Incurring only costs that are appropriate and reasonable.
   6. In accordance with a good-faith interpretation of the provisions of G.S. 147-69.2 and any other applicable law governing the fund.
2. In investing and managing assets of the fund pursuant to subsection (a) of this section, the State Treasurer:
   1. Shall consider the following circumstances:
      1. General economic conditions.
      2. The possible effect of inflation or deflation.
      3. The role that each investment or course of action plays within the overall portfolio of the fund.
      4. The expected total return from income and the appreciation of capital.
      5. Needs for liquidity, regularity of income, and preservation or appreciation of capital.
      6. With respect to the Retirement Systems defined in G.S. 147-69.2(b)(8) and any other pension plans, the adequacy of funding for the Retirement Systems based on reasonable actuarial factors.
      7. The purpose of the fund, if established.
   2. Shall diversify the investments of the fund unless the State Treasurer reasonably determines that, because of special circumstances, including applicable investment restrictions, it is clearly prudent not to do so.
   3. Shall make a reasonable effort to verify facts relevant to the investment and management of assets of the funds.
   4. Shall invest only in those investments authorized by law consistent with the provisions of Article 6 of Chapter 146 of the General Statutes.
   5. May consider benefits created by an investment in addition to investment return only if the State Treasurer determines that the investment providing these collateral benefits would be prudent even without collateral benefits.
3. Compliance by the State Treasurer with this section must be determined in light of the facts and circumstances existing at the time of the Treasurer's decision or action and not by hindsight.
4. The State Treasurer's investment and management decisions must be evaluated not in isolation but in the context of the portfolio of the fund as a whole and as part of an overall investment strategy having risk and return objectives reasonably suited to the fund.
5. Notwithstanding any of the foregoing, the State Treasurer shall have no duty to assist or advise any official, board, commission, local government, other public authority, school administrative unit, local ABC board, community college of the State, or other person, trust, agency, institution, or entity in connection with any of the following decisions and directions with respect to any funds to be deposited with and invested by the State Treasurer:
   1. The voluntary decision to deposit or withdraw funds in accordance with applicable law in one or more of the State Treasurer's investment programs.
   2. The voluntary direction as to the allocation of deposited funds in accordance with applicable law among the State Treasurer's investment programs.
   3. Any other decision or direction by which the depositor exercises control over assets deposited or to be deposited with the State Treasurer in accordance with applicable law.

History

(2009-283, s. 3; 2013-284, s. 1(e); 2013-398, s. 2; 2013-410, s. 27.5; 2016-55, s. 2.2; 2020-48, s. 1.18.)

Editor's Note. - Session Laws 2020-48, s. 6.1, is a severability clause.

Effect of Amendments. - Session Laws 2013-284, s. 1(e), effective July 1, 2013, substituted "Firefighters"' for "Firemen's" in subsection (a).

Session Laws 2013-398, s. 2, effective August 23, 2013, substituted "Retirement Systems enumerated in G.S. 147-69.2(b)(8)" for "Teachers' and State Employees' Retirement System, the Consolidated Judicial Retirement System, the Firemen's and Rescue Squad Workers' Pension Fund, the Local Governmental Employees' Retirement System, the Legislative Retirement System, and the North Carolina National Guard Pension Fund (hereinafter referred to collectively as the Retirement Systems)" in subsection (a).

Session Laws 2016-55, s. 2.2, effective January 31, 2017, rewrote the section.

Session Laws 2020-48, s. 1.18, effective June 26, 2020, substituted "G.S. 147-69.2(b)(8)" for "G.S. 147-69.2(d)" in sub-subdivision (b)(1)f.

§ 147-69.8. Annual report on new investment authority.

Whenever the General Assembly broadens the investment authority of the State Treasurer as to the General Fund, the Teachers' and State Employees' Retirement System, the Consolidated Judicial Retirement System, the Firefighters' and Rescue Squad Workers' Pension Fund, the Local Governmental Employees' Retirement System, the Legislative Retirement System, the North Carolina National Guard Pension Fund, or any idle funds, the State Treasurer shall annually report in detail to the General Assembly the investments made under such new authority, including the returns on those investments, earnings, changes to value, and gains and losses in disposition of such investments. The report shall be made no later than the first six months of each calendar year, covering performance in the prior fiscal year. As to each type of new investment authority, the report shall be made for at least four years. To the extent the information required by this section is also required in the reports under G.S. 147-69.12, the State Treasurer may combine reports or make cross-reference to those reports.

History

(2009-283, s. 4; 2013-284, s. 1(f); 2016-55, s. 4.2.)

Editor's Note. - Session Laws 2016-55, s. 4.4, made the amendment to this section by Session Laws 2016-55, s. 4.2, applicable to all reporting periods beginning on or after July 1, 2016.

Effect of Amendments. - Session Laws 2013-284, s. 1(f), effective July 1, 2013, substituted "Firefighters"' for "Firemen's" in the undesignated provisions of this section.

Session Laws 2016-55, s. 4.2, effective July 1, 2016, substituted "no later than" for "during," and "fiscal" for "calendar" in the second sentence; and added the last sentence. See editor's note for applicability.

§ 147-69.9. Third-party audit of State Treasurer's investments.

1. In addition to all other audits and reports required by the law, the State Treasurer shall prepare and issue, at the end of each fiscal year beginning with the 2015-2016 fiscal year, a set of consolidated stand-alone financial statements regarding investments authorized in G.S. 147-69.1 and G.S. 147-69.2. These financial statements shall be audited by a commercial independent third-party audit firm selected and engaged by the State Treasurer. The audit firm's report and the financial statement shall be provided to the Joint Legislative Commission on Governmental Operations, the House of Representative Appropriations Committee, the Senate Appropriations•ase Budget Committee, and the Fiscal Research Division within six months after the closing of the reporting period.
2. The management discussion and analysis section of the report accompanying the financial statements shall include a discussion of the investment programs' risk and returns compared to benchmarks, total management fees and incentives paid, and comparison to peer cost benchmarks.

History

(2016-55, s. 3.)

§ 147-69.10. Investment policies and performance reviews of Retirement Systems investment programs.

1. On at least a biennial basis, the State Treasurer shall present an investment policy statement to the Investment Advisory Committee for the Committee's consultation. The investment policy statement must include descriptions of investment objectives and strategy, roles and responsibilities, permissible asset classes, asset allocation targets and ranges, risk management and compliance guidelines, and evaluation criteria necessary to measure investment performance.
2. At least once every four years, the State Treasurer shall engage a commercial independent expert firm, pursuant to G.S. 147-69.3(g), to evaluate the governance, operations, and investment practices of the State Treasurer in order to develop recommendations for improvement. The State Treasurer must consult with the Investment Advisory Committee to develop the scope of the evaluation. The report of the independent expert firm shall be provided to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Committee, the Senate Appropriations•ase Budget Committee, and the Fiscal Research Division within 30 days of receipt.

History

(2016-55, s. 3.)

§ 147-69.11. Ethics policies.

To ensure that the State Treasurer's investment programs operate under a strong governance framework with rigorous internal controls and a high degree of operational transparency and are managed with the highest ethical and professional standards and in the most efficient and effective manner possible, the State Treasurer, after consultation with the Investment Advisory Committee, is authorized and required to adopt policies and procedures on the following topics:

1. Requiring that the Department of State Treasurer's Investment Management Division adopt a code of ethics.
2. Requiring all employees of the Department who have responsibility for matters related to investments to be provided with training with respect to the discharge of their duties and responsibilities to the funds.
3. Governing gifts to employees of the Department who have responsibility for matters related to investments.
4. Imposing limitations on external investment managers' use of placement agents and other persons that appear before the Department to ensure that these persons play only a proper role in investment opportunities.
5. As a component of the investment due diligence, negotiations, and contracting process, requiring an independent assessment of whether circumstances exist that create a material risk that professional judgement or actions regarding a potential investment arrangement's recommendation, approval, or execution have been or will be unduly influenced by a direct or indirect personal interest.

History

(2016-55, s. 3.)

Editor's Note. - At the direction of the Revisor of Statutes, the subsection (a) designation at the beginning of the section as enacted by Session Laws 2016-55, s. 3, was deleted.

§ 147-69.12. Reporting on the State Treasurer's investment programs.

1. No later than the tenth day of February, May, August, and November of each year, the State Treasurer shall report on all investments for which the State Treasurer is in any way responsible. The State Treasurer's quarterly report shall include each of the following:
   1. A specific listing of all direct and indirect placement fees, asset fees, performance fees, and any other money management fees incurred by the State in the management of the Retirement Systems defined in G.S. 147-69.2(b)(8). In the event that the market value of any of subdivision (6c) or (7), sub-subdivision b. of subdivision (8), or subdivision (9) or (9a) of G.S. 147-69.2 increases during a fiscal year by an amount greater than three percent (3%) of the market value of all invested assets of the Retirement Systems as of the prior fiscal year end, then the quarterly report provided shall describe how that increase complies with the duties described in G.S. 147-69.7 and the consequent expected impact on the risk profile of the Retirement Systems' assets.
   2. A specific listing of all investments made with certified green managers and companies and funds that support sustainable practices, including the names of the companies, managers, and funds, the amount invested, and the State's return on investment.
   3. For bank balances:
      1. The State's total bank balance with the State Treasurer, including the amount of cash on hand and money on deposit.
      2. For each bank or other qualified depository utilized by the State Treasurer to hold cash balances, (i) the name of each depository and (ii) current quarter-end cash balances.
   4. For the State Treasurer's cash management programs:
      1. Total assets.
      2. Duration of investments.
      3. Rate of return, including a comparison to an appropriate benchmark, if available.
   5. For the Retirement Systems, as defined in G.S. 147-69.2(b)(8), reported separately for each asset class authorized by G.S. 147-69.2(b):
      1. Total assets.
      2. Rate of return, including a comparison to an appropriate benchmark, if available.
      3. Percentage of the total assets that are invested in the asset class and the limitation, if any, on the percentage under G.S. 147-69.2(b).
   6. For each investment program created under G.S. 147-69.3:
      1. The financial condition of each investment program.
      2. A full and complete statement of all moneys invested by virtue of the provisions of G.S. 147-69.1 and G.S. 147-69.2.
      3. The nature and character of the investments.
      4. The revenues derived from the investments, net of fees and expenses.
      5. The costs of administering, managing, and operating the investment programs, including the recapture of any investment commissions.
      6. The location on the State Treasurer's Web site where the public may find a statement of the investment policies for the revenues invested.
      7. Any other information that may be helpful in understanding the State Treasurer's investment policies, investment practices, and investment results.
      8. Any other information requested by the House of Representatives and Senate Finance Committees.
      9. The location on the State Treasurer's Web site where the public may find a list of new commitments to external investment managers.
      10. The location on the State Treasurer's Web site where the public may find information on the use of placement agents by investment managers.
   7. For all other investments with or on behalf of the State or any of its agencies or institutions:
      1. The particular agency or institution, fund, rate of return, and duration of the investment.
      2. The amount of deposit on all noninterest bearing accounts.
2. No later than the date set by G.S. 147-69.9 for the submission of consolidated stand-alone financial statements, the State Treasurer shall report annually on the fees and performance of all externally and internally managed investments for the Retirement Systems defined in G.S. 147-69.2(b)(8). Externally managed investments shall be reported on the basis of each investment vehicle or investment manager, as applicable. Internally managed investments shall be reported on a portfolio-by-portfolio basis. The State Treasurer's annual report shall include all of the following, as applicable, reported separately for each investment:
   1. The name, commitment amount, statutory classification, and inception year.
   2. Either a statement that the investment is managed internally by the staff of the State Treasurer or the names of the external investment manager and the investment vehicle for that investment.
   3. Value of the investment.
   4. Dollar amount of the management fees and incentive fees.
   5. For investment-grade fixed income or public equity investments, the periodic net annualized time-weighted rate of return for that fiscal year and since inception, reported net of fees.
   6. For all investments other than investment-grade fixed income or public equity investments, all of the following:
      1. The net annualized internal rate of return and investment multiple since inception, reported net of fees.
      2. The total cash contributions or other investments made by the State Treasurer.
      3. The total distribution received by the State Treasurer with respect to that investment since inception, reported net of fees.
   7. For any fund of funds investment vehicles, the aggregate management fees and incentive fees for the underlying investment managers or investment vehicles used by the external investment manager.
   8. If any placement agent fees relating to the investment were directly or indirectly borne by the State Treasurer or Retirement Systems, a list of the amount and type of those fees.
3. The Treasurer shall report to the Governor annually and to the General Assembly at the beginning of each biennial session the exact balance in the treasury to the credit of the State, with a summary of the receipts and payments of the treasury during the preceding fiscal year, and so far as practicable an account of the same down to the termination of the current calendar year.
4. The reports required by this section shall be delivered to the Joint Legislative Commission on Government Operations, chairs of the House of Representatives and Senate Appropriations Committees, chairs of the House of Representative and Senate Finance Committees, Fiscal Research Division, Governor, Council of State, and State Auditor. The reports shall also be made available for public review, including by posting on the State Treasurer's Web site.
5. Repealed by Session Laws 2017-125, s. 8, effective July 20, 2017.

A copy of a report on any State Treasurer investment program shall be sent to the official, institution, board, commission, or other agency investing in that program.

History

(2016-55, s. 4.1(a), (b); 2017-102, s. 28.1(b); 2017-125, s. 8.)

Editor's Note. - Session Laws 2016-55, s. 4.4 made this section effective July 1, 2016, and applicable to all reporting periods beginning on or after that date.

Effect of Amendments. - Session Laws 2016-55, s. 4.1(b), effective July 1, 2016, and applicable to all reporting periods beginning on or after that date, recodified former G.S. 147-68(d) as present subsection (c) of this section. Subsection (c) is set out in the form above at the direction of the Revisor of Statutes.

Session Laws 2017-102, s. 281.(b), effective July 12, 2017, deleted "Reserved" at the end of subsection (c).

Session Laws 2017-125, s. 8, effective July 20, 2017, repealed former subsection (e), which read: "On or before December 31, 2016, the State Treasurer shall adopt rules to implement the provisions of this section, including rules to define the terms used in this section."

§ 147-70. To make short-term notes in emergencies.

Subject to the approval of the Governor and Council of State, the State Treasurer is authorized to make short-term notes for temporary emergencies, but such notes must only be made to provide for appropriations already made by the General Assembly.

History

(1915, c. 168, s. 3; C.S., s. 7685.)

§ 147-71. May demand and sue for money and property of State.

The Treasurer is authorized to demand, sue for, collect and receive all money and property of the State not held by some person under authority of law.

History

(1866, c. 46; Code, s. 3359; Rev., s. 5375; C.S., s. 7688.)

§ 147-72. Ex officio treasurer of State institutions; duties as such.

The Treasurer shall be ex officio the treasurer of the Department of Agriculture and Consumer Services, of the North Carolina State College of Agriculture and Engineering, of the North Carolina School for the Deaf and Dumb at Morganton, of the North Carolina Institution for the Deaf and Dumb and the Blind at Raleigh, for the State hospitals (for the insane) at Raleigh, Morganton and Goldsboro and for the State's prison. He may appoint deputies to act for him at Morganton and Goldsboro, and may pay such deputies reasonable compensation. He shall keep all accounts of the institutions, and shall pay out all moneys, upon the warrant of the respective chief officers or superintendents, countersigned by two members of the board of directors, managers, or trustees. He shall report to the respective boards at such times as they may call on him, showing the amount received on account of the institution, amount paid out, and amount on hand. He shall perform his duties as treasurer of these several institutions under such regulation as shall be prescribed in each case by their respective boards of managers, trustees or directors, with the approval of the Governor; and shall be responsible on his official bond for the faithful discharge of his duties as treasurer of each of the several institutions. As treasurer of such institutions he shall, annually, after the examination, verification, and cancellation of his vouchers, deposit the same with the respective institutions, and the superintendents thereof shall be responsible for their safekeeping.

History

(1879, c. 240, s. 2; 1881, c. 128; c. 211, s. 9; 1883, c. 156, s. 12; c. 405; Code, ss. 2235, 2251, 3723; 1895, c. 434; 1899, c. 1, s. 11; Rev., s. 5376; 1919, c. 314, s. 6; C.S., s. 7689; 1947, c. 781; 1997-261, s. 109.)

Cross References. - As to schools for students with visual and hearing impairments, see G.S. 115C-150.11 et seq.

Editor's Note. - The North Carolina State College of Agriculture and Engineering is now the North Carolina State University at Raleigh. See Session Laws 1963, c. 448, s. 6; 1965, c. 213. And see G.S. 116-4.

§ 147-73. Office of treasurer of each State institution abolished.

The office of treasurer of each of the several State institutions of which the State Treasurer is ex officio treasurer is hereby abolished.

History

(1929, c. 337, s. 3.)

§ 147-74. Office of State Treasurer declared office of deposit and disbursement.

The office of the State Treasurer is declared to be an office of deposit and disbursement and only such records and accounts as may be necessary to disclose the accountability of the State Treasurer shall be kept. The purpose of this section is to prevent duplication in account and record keeping and such accounts as may be necessary shall be prescribed by the Director of the Budget under the terms of the Executive Budget Act.

History

(1929, c. 337, s. 2.)

§ 147-75. Deputy to act for Treasurer.

The Treasurer may authorize a deputy to perform any duties pertaining to the office. The Treasurer may authorize a deputy to affix the Treasurer's signature to any check, warrant or any other instrument the Treasurer is required to sign. The Treasurer shall be responsible for the conduct of his or her deputies.

History

(2016-55, s. 1.5.)

Effect of Amendments. - Session Laws 2016-55, s. 1.5, effective January 31, 2017, substituted "sign" for "sign by use of the facsimile signature machine or device during the Treasurer's absence or disability" in the second sentence and inserted "or her" in the last sentence.

§ 147-75.1. Criminal record checks for the Department of State Treasurer.

1. The Department of State Treasurer may obtain from the State and National Repositories of Criminal Histories or from any other lawful source the criminal history of any of the following individuals:
   1. A current or prospective permanent or temporary employee of the Department of State Treasurer.
   2. A contractor with the Department of State Treasurer.
   3. An employee or agent of a contractor with the Department of State Treasurer who is performing or will perform work for the Department of State Treasurer.
   4. A volunteer of the Department of State Treasurer.
   5. Any other individual otherwise engaged by the Department of State Treasurer who will have access to health or financial information or data maintained by the Department of State Treasurer that is confidential or otherwise nonpublic.
2. The Department of State Treasurer may deny employment to or dismiss any individual identified under subdivisions (1), (2), (4), and (5) of subsection (a) of this section who refuses to consent to a criminal history record check or to the use of fingerprints or other identifying information required by the State or National Repositories of Criminal Histories. Any refusal shall constitute just cause for the employment denial or the dismissal from employment.
3. The Department of State Treasurer may extend a conditional offer of employment pending the results of a criminal history record check authorized by this section.

History

(2020-29, s. 9.)

Editor's Note. - Session Laws 2020-29, s. 13 made this section effective June 19, 2020.

§ 147-76. Liability for false entries in his books.

If the Treasurer of the State shall wittingly or falsely make, or cause to be made, any false entry or charge in any book by him as Treasurer, or shall wittingly or falsely form, or procure to be formed, any statement of the treasury, to be by him laid before the Governor, the General Assembly, or any committee thereof, or to be by him used in any settlement which he is required to make with intent, in any of said instances, to defraud the State or any person, such Treasurer shall be guilty of a Class 1 misdemeanor.

History

(R.C., c. 34, s. 68; Code, s. 1119; Rev., s. 3606; C.S., s. 7691; 1983, c. 913, s. 53; 1993, c. 539, s. 1055; 1994, Ex. Sess., c. 24, s. 14(c).)

§ 147-76.1. Require deposit into the State treasury of funds received by the State.

1. Definition. - For purposes of this section, the term "cash gift or donation" means any funds provided, without valuable consideration, to the State, for use by the State, or for the benefit of the State.
2. Requirement. - Except as otherwise specifically provided by law, all funds received by the State, including cash gifts and donations, shall be deposited into the State treasury. Nothing in this subsection shall be construed as exempting from the requirement set forth in this subsection funds received by a State officer or employee acting on behalf of the State.
3. Terms Binding. - Except as otherwise provided by subsection (b) of this section, the terms of an instrument evidencing a cash gift or donation are a binding obligation of the State. Nothing in this section shall be construed to supersede, or authorize a deviation from the terms of an instrument evidencing a gift or donation setting forth the purpose for which the funds may be used.

History

(2019-250, s. 5.7(a).)

Editor's Note. - Session Laws 2019-250, s. 5.7(c) made this section, as added by Session Laws 2019-250, s. 5.7(a), effective July 1, 2019, and applicable to funds received on or after that date.

§ 147-77. Daily deposit of funds to credit of Treasurer.

All funds belonging to the State of North Carolina, in the hands of any head of any department of the State which collects revenue for the State in any form whatsoever, and every institution, agency, officer, employee, or representative of the State or any agency, department, division or commission thereof, except officers and the clerks of the Supreme Court and Court of Appeals, collecting or receiving any funds or money belonging to the State of North Carolina, shall daily deposit the same in some bank, or trust company, selected or designated by the State Treasurer, in the name of the State Treasurer, at noon, or as near thereto as may be, and shall report the same daily to the Treasurer. The State Treasurer may authorize exemptions from the provisions of this section so long as funds are deposited and reported pursuant to the provisions of this section at least once a week and, in addition, so long as funds are deposited and reported pursuant to the provisions of this section whenever as much as five thousand dollars ($5,000) has been collected and received. Each State agency that has custody of funds less than five thousand dollars ($5,000) shall provide adequate safekeeping of such funds. The Treasurer may refund the amount of any bad checks which have been returned to the department by the Treasurer when the same have not been collected after 30 days' trial.

History

(1925, c. 128, s. 1; 1945, c. 159; 1969, c. 44, s. 77; 1985, c. 708; 2015-164, s. 3(b).)

Cross References. - As to daily deposits by community colleges, see G.S. 115D-58.9.

Effect of Amendments. - Session Laws 2015-164, s. 3(b), effective October 1, 2015, rewrote the section.

Opinions of Attorney General

"Enterprise funds" maintained by the Division of Vocational Rehabilitation Services and "student activity funds" maintained by the Schools for the Deaf are required to be deposited with the State Treasurer pursuant to G.S. 147-77. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Funds donated to Lenox Baker Children's Hospital are required to be deposited with the State Treasurer unless the conditions or terms of the gift provide to the contrary, or unless otherwise provided by law. See opinion of Attorney General to Mr. Richard J. Vinegar, Chairman Board of Directors of Lenox Baker Children's Hospital, 56 N.C.A.G. 31 (1986).

Any gift in trust where the terms contraindicate investment or deposit with the State Treasurer (for example where the terms of the gift provide for a private trustee) would be exempt from the operation of the cash management policy. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

§ 147-78. Treasurer to select depositories.

The State Treasurer is hereby authorized and empowered to select and designate, wherever necessary, in this State some bank or banks, savings and loan association or associations, or trust company as an official depository of the State.

History

(1925, c. 128, s. 2; 1979, c. 637, s. 4; 1983, c. 158, s. 5.)

§ 147-78.1. Good faith deposits; use of master trust.

Notwithstanding any other provision of law, the State Treasurer is authorized to select a bank or trust company as master trustee to hold cash or securities to be pledged to the State when deposited with the State Treasurer pursuant to statute or at the request of another State agency. Securities may be held by the master trustee in any form that, in fact, perfects the security interest of the State in the securities. The State Treasurer shall contractually establish the manner in which the master trust shall operate. The master trustee may charge reasonable fees for services rendered to each person who deposits the cash or securities with the State.

History

(1985, c. 496, s. 1; 2016-55, s. 1.6.)

Effect of Amendments. - Session Laws 2016-55, s. 1.6, effective January 31, 2017, substituted "the State Treasurer" for "him" in the first sentence and "contractually" for "by rule or regulation" in the third sentence.

§ 147-79. Deposits to be secured; reports of depositories.

1. The amount of funds deposited by the State Treasurer in an official depository shall be adequately secured by deposit insurance, surety bonds, letters of credit issued by a Federal Home Loan Bank, or investment securities of such nature, in such amounts, and in such manner, as may be prescribed by rule or regulation of the State Treasurer with the approval of the Governor and Council of State. No security is required for the protection of funds remitted to and received by a bank or trust company designated by the State Treasurer under G.S. 142-1 and acting as paying agent for the payment of the principal of or interest on bonds or notes of the State.
2. Each official depository having deposits required to be secured by subsection (a) of this section may be required to report to the State Treasurer on January 1 and July 1 of each year (or such other dates as he may prescribe) a list of all surety bonds or investment securities securing such deposits. If the State Treasurer finds at any time that any funds of the State are not properly secured, he shall so notify the depository. Upon such notification, the depository shall comply with the applicable law or regulations forthwith.
3. Violation of the provisions of this section shall be a Class 1 misdemeanor.

History

(1933, c. 461, ss. 1, 11/2; 1979, c. 637, s. 3; 1993, c. 539, s. 1056; 1994, Ex. Sess., c. 24, s. 14(c); 2016-108, s. 4.)

Effect of Amendments. - Session Laws 2016-108, s. 4, effective July 22, 2016, in subsection (a), inserted "letters of credit issued by a Federal Home Loan Bank."

Legal Periodicals. - For review of this section, see 11 N.C.L. Rev. 201 (1933).

§ 147-80. Deposit in other banks unlawful; liability.

It shall be unlawful for any funds of the State to be deposited by any person, institution, or department or agency in any place or bank or trust company, other than those so selected and designated as official depositories of the State of North Carolina by the State Treasurer, and any person so offending or aiding and abetting in such offense shall be guilty of a Class 1 misdemeanor and any person so offending or aiding and abetting in such offense shall also immediately become civilly liable to the State of North Carolina in the amount of the money or funds unlawfully deposited, and, at the instance of the State Treasurer, or at the instance of the Governor, the Attorney General shall forthwith institute the civil action in the name of the State of North Carolina against such person or persons, either in the courts of Wake County, according to their respective jurisdiction, or in the county in which said unlawful deposit has been made, according to the selection made by the officer requesting the institution of such action, for the purpose of recovering the amount of the money so unlawfully deposited, with interest thereon at six percent (6%) per annum, and for the cost of said action, and the court in which said action is tried may also tax, as a part of the cost in said action, to the use of the State of North Carolina, a sum sufficient to reimburse the State of North Carolina for all expense incidental to or connected with the preparation and prosecution of such action.

History

(1925, c. 128, s. 3; 1993, c. 539, s. 1057; 1994, Ex. Sess., c. 24, s. 14(c).)

§ 147-81. Number of depositories; contract.

The State Treasurer is authorized and empowered to select as many depositories in one place and in the State as may appear to him to be necessary and convenient for the various officers, representatives and employees of the State, to comply with the purposes of G.S. 147-77, 147-78, 147-80, 147-81, 147-82, 147-83 and 147-84, and may make such contracts with said depositories for the payment of interest on average daily or monthly balances as may appear advantageous to the State in the opinion of such Treasurer and the Governor.

History

(1925, c. 128, s. 4.)

§ 147-82. Accounts of funds kept separate.

In order to preserve and keep them separate, all funds that are now required by law to be kept separate or to be separately administered, both by State departments, institutions, commissions, and other agencies or divisions of the State which collect or receive funds belonging to the State, or funds handled or maintained as trust funds in any form by such department, division or institution shall be evidenced in daily reports by distribution sheets, which shall reflect and show an exact copy of the accounts, showing the distribution of said money kept by such collecting departments, institutions and agencies, and the same shall be entered in the records of the office of the State Treasurer, so as to keep and maintain in the office where the same is first collected or received the same account thereof, and of the distribution thereof, the same records and accounts as are kept in the office of the State Treasurer relating thereto.

History

(1925, c. 128, s. 5.)

§ 147-83. Receipts from federal government not affected.

General Statutes 147-77, 147-78, 147-80, 147-81, 147-82, 147-83 and 147-84 shall not be held or construed to affect or interfere with the receipts and disbursements of any funds received by any institution or department of this State from the federal government when in the act of Congress, relating to such funds received from the federal government, a contrary disposition or handling is prescribed or required, and the said sections shall not apply to any moneys paid to any department, institution or agency, or undertaking of the State of North Carolina, as a part of any legislative appropriation, or allotment from any contingent fund, as provided by law, after the same has been paid out of the State treasury.

History

(1925, c. 128, s. 6; 2019-250, s. 5.7(b).)

Editor's Note. - Session Laws 2019-250, s. 5.7(c) made this section, as amended by Session Laws 2019-250, s. 5.7(b), effective July 1, 2019, and applicable to funds received on or after that date.

Effect of Amendments. - Session Laws 2019-250, s. 5.7(b), deleted "and gifts" following "federal government" in the section heading; deleted "or any gift or donation to any institution or department of the State or commission or agency thereof" following "State from the federal government"; deleted "either" after "when"; and deleted "or in the instrument evidencing the said private donation or gift," before "a contrary disposition."

Opinions of Attorney General

When Federally Confiscated Drug Related Property Is Returned to Local Authorities. - If federal authorities confiscate drug related property and thereafter return a part of it to local authorities for law enforcement purposes, the N.C. Constitution and laws do not require these funds to go to the local school board as forfeited property and they may be used by local law enforcement. See opinion of the Attorney General to Mr. Aubrey S. Tomlinson, Jr., Attorney for Franklin County, 58 N.C.A.G. 51 (1988).

Funds donated to Lenox Baker Children's Hospital are required to be deposited with the State Treasurer unless the conditions or terms of the gift provide to the contrary, or unless otherwise provided by law. See opinion of Attorney General to Mr. Richard J. Vinegar, Chairman Board of Directors of Lenox Baker Children's Hospital, 56 N.C.A.G. 31 (1986).

Any gift in trust where the terms contraindicate investment or deposit with the State Treasurer (for example where the terms of the gift provide for a private trustee) would be exempt from the operation of the cash management policy. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

§ 147-84. Refund of excess payments.

Whenever taxes or other receipts of any kind are or have been by clerical error, misinterpretation of the law, or otherwise, collected and paid into the State treasury in excess of the amount found legally due the State, said excess amount shall be refunded to the person entitled thereto.

History

(1925, c. 128, s. 7; 1983, c. 913, s. 54.)

§ 147-85. Fiscal year.

The fiscal year of the State government shall annually close on the thirtieth day of June.

History

(1868-9, c. 270, s. 77; 1883, c. 60; Code, s. 3360; 1885, c. 334; 1905, c. 430; Rev., s. 5378; C.S., s. 7692; 1921, c. 229; Ex. Sess. 1921, c. 7; 1925, c. 89, s. 21; 1983, c. 913, s. 55.)

§ 147-86. Additional clerical assistance authorized; compensation and duties.

The State Treasurer, by and with the consent and advice of the Governor and Council of State, is authorized to employ an additional clerk in the Treasury Department, whose compensation and duties shall be fixed by the State Treasurer, by and with the consent and advice of the Governor and Council of State. The compensation of such additional clerk as may be employed pursuant to this section shall be paid as other officers and clerks are paid.

History

(1923, c. 172; C.S., s. 7693 (a).)

§ 147-86.1. Pool account for local government unemployment compensation.

1. The State Treasurer is authorized to establish a pool account, in accordance with rules of the Division of Employment Security (DES), in cooperation with any one or more units of local government, for the purpose of reimbursing the DES for unemployment benefits paid by the DES and chargeable to each local unit of government participating in the pool account. In the pool account established pursuant to this section, the funds contributed by a unit of local government shall remain the funds of the particular unit, and interest or other investment income earned by the pool account shall be prorated and credited to the various contributing local units on the basis of the amounts thereof contributed, figured according to an average periodic balance or some other sound accounting principle.
2. The State Treasurer shall pay to the Division of Employment Security, within 25 days from receipt of a list thereof, all unemployment benefits charged by the DES to each unit of local government participating in the pool account from the funds in the pool account belonging to each such unit, to the extent that said funds are sufficient to do so.
3. Notwithstanding the participation by a unit of local government in the pool account authorized by this section, such unit shall remain liable to the Division of Employment Security for any benefits duly charged by the Division to the unit which are not paid by the State Treasurer from funds in the pool account belonging to the unit. Notwithstanding its participation in the pool account, each unit of local government shall continue to maintain an individual account with the DES.
4. The Director of the Budget shall be authorized to transfer from the interest earned on the pool account, to the State Treasurer's departmental budget, such funds as may be necessary to defray the Treasurer's cost of administering the pool account.

History

(1977, c. 1124; 1983, c. 717, s. 89; 2011-401, s. 3.23.)

Effect of Amendments. - Session Laws 2011-401, s. 3.23, effective November 1, 2011, in subsection (a), deleted "and regulations" following "rules," substituted "Division of Employment Security (DES)" for "Employment Security Commission," and twice substituted "DES" for "Employment Security Commission" and "Commission"; in subsections (b) and (c), substituted "Division of Employment Security" for "Employment Security Commission"; in subsection (b), substituted "DES" for "Commission"; and in subsection (c), substituted "Division" for "Commission" and "DES" for "Employment Security Commission."

§ 147-86.2. Information Technology fees; dispute resolution panel.

The State Treasurer or the State Treasurer's designee, in conjunction with the State Controller and the State Budget Officer or their designees, shall handle the resolution of fee disputes between the Department of Information Technology and the State agencies receiving information technology services from the Department.

History

(2009-136, s. 3; 2015-241, s. 7A.3.)

Editor's Note. - Session Laws 2015-241, s. 7A.3, provides in part: "The Revisor of Statutes may conform names and titles changed by this section and may correct statutory references as required by this section throughout the General Statutes. In making the changes authorized by this section, the Revisor may also adjust subject and verb agreement and the placement of conjunctions." Pursuant to this authority, "Services" was deleted from the section heading; "Department of Information Technology" was substituted for "Office of Information Technology Services"; and "Department" was substituted for "the Office" at the direction of the Revisor of Statutes.

Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'"

Session Laws 2015-241, s. 33.6, is a severability clause.

Effect of Amendments. - Session Laws 2015-241, s. 7A.3, effective September 18, 2015, deleted "Services" following "Technology" in the section heading, substituted "Department of Information Technology" for "State Information Technology Services" and "the Department" for "the Office".

§§ 147-86.3 through 147-86.9: Reserved for future codification purposes.

§ 147-86.10. Statement of policy.

It is the policy of the State of North Carolina that all agencies, institutions, departments, bureaus, boards, commissions, and officers of the State, whether or not subject to the State Budget Act, Chapter 143C of the General Statutes, shall devise techniques and procedures for the receipt, deposit, and disbursement of moneys coming into their control and custody which are designed to maximize interest-bearing investment of cash, and to minimize idle and nonproductive cash balances. This policy shall apply to the General Court of Justice as defined in Article IV of the North Carolina Constitution, the public school administrative units, and the community colleges with respect to the receipt, deposit, and disbursement of moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer. This policy shall include the acceptance of electronic payments in accordance with G.S. 147-86.22 to the maximum extent possible consistent with sound business practices.

History

(1985, c. 709, s. 1; 1999-434, s. 2; 2006-203, s. 120.)

Effect of Amendments. - Session Laws 2006-203, s. 120, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, substituted "State Budget Act, Chapter 143C" for "Executive Budget Act, Chapter 143, Article 1" in the first sentence.

§ 147-86.11. Cash management for the State.

1. Uniform Plan. - The State Controller, with the advice and assistance of the State Treasurer, the State Budget Officer, and the State Auditor, shall develop, implement and amend as necessary a uniform statewide plan to carry out the cash management policy for all State agencies. The State Auditor shall report annually to the General Assembly on the implementation of the plan as shown in the audits completed during the prior fiscal year. The State Treasurer shall recommend periodically to the General Assembly any implementing legislation necessary or desirable in the furtherance of the State policy. When used in this section, "State agency" means any agency, institution, bureau, board, commission or officer of the State; however, except as provided in G.S. 147-86.12, 147-86.13, 147-86.14, and 147-86.22, this Article does not apply to the agencies, institutions, bureaus, boards, commissions and officers of the General Court of Justice as defined in Article IV of the North Carolina Constitution or to the local school administrative units and community colleges and their officers and employees.
2. Duties of Auditor. - The State Auditor pursuant to authority under G.S. 147-64.6 shall monitor agency compliance with this Article, and make any comments, suggestions, and recommendations the Auditor deems advisable to the agencies.
3. Treasurer's Report. - The State Treasurer shall publish a quarterly report on all funds in the control or custody of the State Treasurer showing cash balances on hand, investments of cash balances and a comparative analysis of earnings and investment performances.
4. Earnings on Trust Funds. - The statewide cash management plan shall provide that any net earnings on invested funds, whose beneficial owner is not the State or a local governmental unit, shall be paid to the beneficial owners of the funds. "Net earnings" are the amounts remaining after allowance for the cost of administration, management, and operation of the invested funds.
5. Elements of Plan. - For moneys received or to be received, the statewide cash management plan shall provide at a minimum that:
   1. Except as otherwise provided by law, moneys received by employees of State agencies in the normal course of their employment shall be deposited as follows:
      1. Moneys received in trust for specific beneficiaries for which the employee-custodian has a duty to invest shall be deposited with the State Treasurer under the provisions of G.S. 147-69.3.
      2. All other moneys received shall be deposited with the State Treasurer pursuant to G.S. 147-77 and G.S. 147-69.1.
   2. Moneys received shall be deposited daily in the form and amounts received, except as otherwise provided by statute.
   3. Moneys due to a State agency by another governmental agency or by private persons shall be promptly billed, collected and deposited.
   4. Unpaid billings due to a State agency other than amounts owed by patients to the University of North Carolina Health Care System, East Carolina University's Division of Health Sciences, customers of the North Carolina Turnpike Authority, or the North Carolina Department of Transportation shall be turned over to the Attorney General for collection no more than 90 days after the due date of the billing, except that a State agency need not turn over to the Attorney General unpaid billings of less than five hundred dollars ($500.00), or (for institutions where applicable) amounts owed by all patients which are less than the federally established deductible applicable to Part A of the Medicare program, and instead may handle these unpaid bills pursuant to agency debt collection procedures.
   5. The University of North Carolina Health Care System and East Carolina University's Division of Health Sciences may turn over to the Attorney General for collection accounts owed by patients.
   6. The North Carolina Turnpike Authority and the North Carolina Department of Transportation may turn over to the Attorney General for collection amounts owed to the North Carolina Turnpike Authority or the North Carolina Department of Transportation.
   7. Moneys received in the form of warrants drawn on the State Treasurer shall be deposited by the State agency directly with the State Treasurer and not through the banking system, unless otherwise approved by the State Treasurer.
   8. State agencies shall accept payment by electronic payment in accordance with G.S. 147-86.22 to the maximum extent possible consistent with sound business practices.
   9. The State Controller may use cash reserved to the Savings Reserve and cash from other funds, including special funds, that is not needed temporarily to meet the cash flow needs of the General Fund, but only to the extent that this authority can be used without jeopardizing the ability of reserves or funds, including special funds, to meet their ongoing obligations. Any cash transferred from reserves or funds, including special funds, shall be fully restored by the end of the fiscal year in which the funds were transferred, and interest shall be paid on all cash transferred to the General Fund pursuant to this subdivision from interest-bearing accounts.
6. Disbursement Requirements. - For the disbursement of money, the statewide cash management plan shall provide at a minimum that:
   1. Moneys deposited with the State Treasurer remain on deposit with the State Treasurer until final disbursement to the ultimate payee.
   2. The order in which appropriations and other available resources are expended shall be subject to the provisions of Chapter 143C of the General Statutes regardless of whether the State agency disbursing or expending the moneys is subject to the State Budget Act.
   3. Federal and other reimbursements of expenditures paid from State funds shall be paid immediately to the source of the State funds.
   4. Billings to the State for goods received or services rendered shall be paid neither early nor late but on the discount date or the due date to the extent practicable.
   5. Disbursement cycles for each agency shall be established to the extent practicable so that the overall efficiency of the warrant disbursement system is maximized while maintaining prompt payment of bills due.
7. Interest Maximized. - The interest earnings of the General Fund and Highway Fund shall be maximized to the extent practicable. To this end:
   1. Interest earnings shall not be allocated to an account by the State Treasurer unless all of the moneys in the account are expressly eligible by law for receiving interest allocations.
   2. State officers and employees who received moneys in trust or for investment shall be solely responsible for properly segregating such funds for investment in the manner prescribed by law. The officer or employee charged with the responsibility for these moneys shall be under a duty to segregate the funds in a timely manner. No investment income shall be allocated by the State Treasurer to trust or other investment accounts until properly segregated into investment accounts as provided by law and the rules of the State Treasurer.
8. New Technologies. - The statewide cash management plan shall consider new technologies and procedures whenever the technologies and procedures are economically beneficial to the State as a whole. Where the new technologies and procedures may be implemented without additional legislation, the technologies and procedures shall be implemented in the plan.
9. Penalty. - A willful or continued failure of an employee paid from State funds or employed by a State agency to follow the statewide cash management plan is sufficient cause for immediate dismissal of the employee.

History

(1985, c. 709, s. 1; 1985 (Reg. Sess., 1986), c. 1024, s. 26; 1987, c. 564, s. 32; c. 738, s. 59(a)(1); 1991, c. 95, s. 1; c. 542, s. 15; 1999-434, s. 4; 2006-203, s. 121; 2007-306, s. 3; 2012-194, s. 68(b); 2014-100, s. 6.14; 2014-115, s. 58; 2015-241, s. 5.5; 2017-5, s. 6.)

ITS Maintenance Agreement Pilot Project. - Session Laws 2003-284, s. 21.2(a) and (b), as amended by Session Laws 2004-124, s. 22.1, provides: "(a) Notwithstanding the cash management provisions of G.S. 146-86.11 [G.S. 147-86.11], the State Controller may authorize the Office of Information Technology Services (ITS) to purchase not more than four infrastructure maintenance agreements for periods not exceeding two years where the terms of those maintenance agreements require payment of the full purchase price at the beginning of the maintenance period. The State Controller shall not authorize the agreements authorized by this section unless all of the following conditions are met:

"(1) The proposed infrastructure maintenance agreement is entered into after June 30, 2004, and before July 1, 2005.

"(2) The State Controller receives conclusive evidence that the proposed infrastructure agreement would be more cost-effective than any similar agreement that complies with G.S. 146-86.11 [G.S. 147-86.11].

"(3) The State Controller verifies that the savings resulting from the proposed infrastructure agreement will be passed on to users in the form of lower rates for ITS services.

"(4) The purchase of the proposed maintenance agreement complies in all other respects with applicable statutes and rules.

"(5) ITS shall make adjustments of excess revenue, based on IRMC-approved rates, over allowable costs.

"(b) The State Controller shall provide full justification for any authorizations granted under this section to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the General Assembly within 60 days after the authorization is granted."

Multiyear Maintenance Contracts. - Session Laws 2005-276, ss. 20A.1(a)-(c), provide: "Notwithstanding the cash management provisions of G.S. 147-86.11, the State Controller may authorize the Office of Information Technology Services (ITS) to purchase not more than four infrastructure maintenance agreements for periods not exceeding three years where the terms of those maintenance agreements require payment of the full purchase price at the beginning of the maintenance period. The State Controller shall not authorize the agreements authorized by this section unless all of the following conditions are met:

"(1) The proposed infrastructure maintenance agreement is entered into after June 30, 2005, and before July 1, 2007.

"(2) The State Controller receives conclusive evidence that the proposed infrastructure agreement would be more cost effective than any similar agreement that complies with G.S. 147-86.11.

"(3) The purchase of the proposed maintenance agreement complies in all other respects with applicable statutes and rules.

"(4) The proposed infrastructure maintenance agreement contains contract terms that protect the financial interests of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by other reasonable means that have legally binding effect.

"The Office of State Budget and Management (OSBM) shall ensure that the savings from any authorized multiyear infrastructure maintenance contract will be included in ITS's calculation of rates before OSBM annually approves the proposed rates.

"OSBM shall report on any budget impacts resulting from the multiyear contracts and provide full justification for any authorizations granted under this section to the Chairs of the Senate and House of Representatives Appropriations Committees and to the Fiscal Research Division annually on or before May 1."

Session Laws 2005-276, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2005'."

Session Laws 2005-276, s. 46.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2005-2007 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2005-2007 fiscal biennium."

Session Laws 2005-276, s. 46.5, is a severability clause.

Editor's Note. - Session Laws 2003-284, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2003'."

Session Laws 2003-284, s. 49.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2003-2005 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2003-2005 fiscal biennium."

Session Laws 2003-284, s. 49.5, is a severability clause.

Session Laws 2004-124, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2004'."

Session Laws 2004-124, s. 33.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2004-2005 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2004-2005 fiscal year."

Session Laws 2004-124, s. 33.5, is a severability clause.

Session Laws 2008-107, s. 6.11, provides: "(a) Notwithstanding the cash management provisions of G.S. 147-86.11, the Office of Information Technology Services (ITS) may procure information technology goods and services for periods not exceeding three years where the terms require payment of all or a portion of the purchase price at the beginning of the agreement. All of the following conditions must be met before payment for these agreements may be disbursed:

"(1) Any advance payment complies with the ITS budget.

"(2) The State Controller receives conclusive evidence that the proposed agreement would be more cost-effective than a multiyear agreement that complies with G.S. 147-86.11.

"(3) The procurement complies in all other respects with applicable statutes and rules.

"(4) The proposed agreement contains contract terms that protect the financial interests of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by other reasonable means that have legally binding effect.

"(b) The Office of State Budget and Management (OSBM) shall ensure that the savings from any authorized agreement will be included in the ITS calculation of rates before OSBM annually approves the proposed rates.

"(c) The Office of Information Technology Services shall report to the Office of State Budget and Management on any State agency budget impacts resulting from the multiyear contracts.

"(d) By January 1, 2009, then quarterly thereafter, the Office of Information Technology Services shall submit a written report of any authorizations granted under this section to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division."

Session Laws 2008-107, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2008'."

Session Laws 2008-107, s. 30.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2008-2009 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2008-2009 fiscal year."

Session Laws 2008-107, s. 30.5, is a severability clause.

Session Laws 2009-451, s. 6.7(c), provides: "Notwithstanding the cash management provisions of G.S. 147-86.11, the Office of Information Technology Services may procure information technology goods and services for periods of up to a total of three years where the terms of the procurement contract require payment of all, or a portion, of the contract purchase price at the beginning of the agreement. All of the following conditions shall be met before payment for these agreements may be disbursed:

"(1) Any advance payment complies with the Office of Information Technology Services budget.

"(2) The State Controller receives conclusive evidence that the proposed agreement would be more cost-effective than a multiyear agreement that complies with G.S. 147-86.11.

"(3) The procurement complies in all other aspects with applicable statutes and rules.

"(4) The proposed agreement contains contract terms that protect the financial interests of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by any other reasonable means that have legally binding effect.

"The Office of State Budget and Management shall ensure the savings from any authorized agreement shall be included in the Office of Information Technology Services calculation of rates before the Office of State Budget and Management annually approves the proposed rates. The Office of Information Technology Services shall report to the Office of State Budget and Management on any State agency budget impacts resulting from multiyear contracts.

"The Office of Information Technology Services shall submit a quarterly written report of any authorizations granted under this subsection to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division."

Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'."

Session Laws 2009-451, s. 28.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2009-2011 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2009-2011 fiscal biennium."

Session Laws 2009-451, s. 28.5, is a severability clause.

Session Laws 2011-145, s. 6A.2(e), provides: "Three-Year Contracts. - Notwithstanding the cash management provisions of G.S. 147-86.11, the Office of Information Technology Services may procure information technology goods and services for periods of up to a total of three years where the terms of the procurement contract require payment of all, or a portion, of the contract price at the beginning of the contract agreement. All of the following conditions shall be met before payment for these agreements may be disbursed:

"(1) Any advance payment can be accomplished within the Information Technology Internal Service Fund budget.

"(2) The State Controller receives conclusive evidence that the proposed agreement would be more cost-effective than a multiyear agreement that complies with G.S. 147-86.11.

"(3) The procurement complies in all other aspects with applicable statutes and rules.

"(4) The proposed agreement contains contract terms that protect the financial interest of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by any other reasonable means that have legally binding effect.

"The Office of State Budget and Management shall ensure the savings from any authorized agreement shall be included in the Information Technology Internal Service Fund rate calculations before the Office of State Budget and Management annually approves proposed rates. Any savings resulting from the agreements shall be returned to agencies included in the contract in the form of reduced rates. The Office of Information Technology Services shall submit a quarterly written report to the Office of State Budget and Management on any State agency budget impacts resulting from multiyear contracts. Under no circumstances shall multiyear contracts result in rate increases for participating agencies. The Office of Information Technology Services shall submit a quarterly written report of any authorizations granted under this section to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division of the North Carolina General Assembly."

Session Laws 2013-360, s. 7.7(a)-(c), provides: "(a) SCIO Review. - The State Chief Information Officer (State CIO) shall review all State information technology (IT) contracts and shall develop a plan to consolidate duplicate IT contracts and multiple IT contracts with the same vendor.

"(b) Bulk Purchasing. - The State CIO shall develop a plan to modify bulk purchasing contracts, while maintaining economies of scale, to provide agencies with the option of purchasing equipment on an 'as-needed' basis. By December 15, 2013, the State CIO shall provide the plan to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division. The State CIO may modify the plan based upon input from the Joint Legislative Oversight Committee on Information Technology and, following the review, shall begin implementation of the plan.

"(c) Sole Sourcing, Extensions, and Expansions Limited. - State IT contracts, including sole sourcing, extensions of the period of performance, or expansion of the scope of existing contracts, must receive the prior approval of the State CIO who may grant a specific exception. The State CIO shall immediately report any exceptions granted to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division. The report shall explain the reasons why the exception was deemed to be appropriate."

Session Laws 2013-360, s. 7.7(e), (f), provides: "(e) Enterprise Contracts. - The State CIO shall consult participating agency chief information officers and obtain approval from the Office of State Budget and Management prior to the initiation of any enterprise project or contract and shall ensure that enterprise project and contract costs are allocated to participating agencies in an equitable manner. Enterprise agreements shall not exceed the participating State agencies' ability to financially support the contracts.

"The State CIO shall not enter into any enterprise information technology contracts without obtaining written agreements from participating State agencies regarding the apportionment of the contract cost. State agencies agreeing to participate in a contract shall:

"(1) Ensure that sufficient funds are budgeted to support their agreed shares of enterprise contracts throughout the life of the contract.

"(2) Transfer the required funding to the Information Technology Internal Service Fund in sufficient time for the Office of Information Technology Services to meet vendor contract requirements.

"(f) Three-Year Contracts. - Notwithstanding the cash management provisions of G.S. 147-86.11, the Office of Information Technology Services may procure information technology goods and services for periods up to a total of three years where the terms of the procurement contracts require payment of all or a portion of the contract price at the beginning of the contract agreement. All of the following conditions shall be met before payment for these agreements may be disbursed:

"(1) Any advance payment can be accomplished within the IT Internal Service Fund budget.

"(2) The State Controller receives conclusive evidence that the proposed agreement would be more cost-effective than a multiyear agreement that complies with G.S. 147-86.11.

"(3) The procurement complies in all other aspects with applicable statutes and rules.

"(4) The proposed agreement contains contract terms that protect the financial interest of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by any other reasonable means that have legally binding effect.

"The Office of State Budget and Management shall ensure the savings from any authorized agreement shall be included in the IT Internal Service Fund rate calculations before approving annual proposed rates. Any savings resulting from the agreements shall be returned to agencies included in the contract in the form of reduced rates. Beginning October 1, 2013, ITS shall submit a quarterly written report of any authorizations granted under this section to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division."

Session Laws 2013-360, s. 7.8, as amended by Session Laws 2013-363, s. 2.3, provides: "Notwithstanding any provision of law to the contrary, no contract for information technology personal services, or that provides personnel to perform information technology functions, may be established or renewed without written approval from the Statewide Information Technology Procurement Office and the Office of State Budget and Management. To facilitate compliance with this requirement, the Statewide Information Technology Procurement Office shall develop and document the following:

"(1) Standards for determining whether it is more appropriate for an agency to hire an employee or use the services of a vendor.

"(2) A process to monitor all State agency personal services contracts, as well as any other State contracts providing personnel to perform information technology functions.

"(3) A process for obtaining approval of contractor positions.

"The Statewide Information Technology Procurement Office shall review current personal services contracts and determine if each contractor is performing a function that could more appropriately be performed by a State employee. Where the determination is made that a State employee should be performing the function, the Statewide Information Technology Procurement Office shall work with the impacted agency, the Office of State Budget and Management, and the Office of State Personnel to identify or create the position.

"Beginning October 1, 2013, the Statewide Information Technology Procurement Office shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on its progress toward standardizing information technology personal services contracts. In addition, the report shall include detailed information on the number of personal service contractors in each State agency, the cost for each, and the comparable cost (including benefits) of a State employee serving in that capacity rather than a contractor."

Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'"

Session Laws 2013-360, s. 38.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2013-2015 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2013-2015 fiscal biennium."

Session Laws 2013-360, s. 38.5, is a severability clause.

Session Laws 2013-360, s. 7.7(g), as added by Session Laws 2014-100, s. 7.7, provides: "(g) Enhance State IT Contract Expertise. - The State Chief Information Officer (State CIO), the Office of State Human Resources, the Department of Computer Science at North Carolina State University, the Schools of Government and Law at the University of North Carolina at Chapel Hill, and in the discretion of the State CIO, schools and departments at other public and private institutions of higher learning in the State, shall work jointly to create a career path for State government information technology contracting professionals that includes defined qualifications, career progression, training opportunities, and appropriate compensation. By December 1, 2014, the State CIO shall submit a detailed, fully implementable plan to create the career path for State government information technology contracting professionals to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division."

Effect of Amendments. - Session Laws 2006-203, s. 121, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, in subsection (a), deleted "the Advisory Budget Commission and" preceding "the General Assembly"; and in subdivision (f)(2), substituted "Chapter 143C of the General Statutes" for "G.S. 143-27" and "State Budget Act" for "Executive Budget Act."

Session Laws 2007-306, s. 3, effective July 28, 2007, inserted "other than amounts owed by patients to the University of North Carolina Health Care System" in subdivision (e)(4); and added subdivision (e)(4a).

Session Laws 2012-194, s. 68(b), effective July 17, 2012, in subdivision (e)(4), added "or East Carolina University's Division of Health Sciences"; and in subdivision (e)(4a), added "and East Carolina University's Division of Health Sciences."

Session Laws 2014-100, s. 6.14, effective July 1, 2014, added subdivision (e)(7).

Session Laws 2014-115, s. 58, effective August 11, 2014, in the introductory paragraph of subdivision (e)(4), added "or by customers of the North Carolina Turnpike Authority" and made related stylistic changes, and added subdivision (e)(4b).

Session Laws 2015-241, s. 5.5, effective July 1, 2015, in subsection (e), deleted "or by" preceding "customers" in subdivision (e)(4), inserted "or the North Carolina Department of Transportation" in subdivision (e)(4) and in subdivision (e)(4b), inserted "and the North Carolina Department of Transportation" and add "or the North Carolina Department of Transportation" at the end.

Session Laws 2017-5, s. 6, effective October 1, 2017, deleted "Account" following "Savings Reserve" in the first sentence of (e)(7).

Opinions of Attorney General

"Enterprise funds" maintained by the Division of Vocational Rehabilitation Services and "student activity funds" maintained by the Schools for the Deaf are required to be deposited with the State Treasurer pursuant to G.S. 147-77. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Individual patient funds which are held in trust by a state institution operated under the Division of Mental Health are not required to be deposited with the State Treasurer. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Any gift in trust where the terms contraindicate investment or deposit with the State Treasurer (for example where the terms of the gift provide for a private trustee) would be exempt from the operation of the cash management policy. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Individual patient funds held in trust by a state institution may not be invested with the State Treasurer without consent; however, such funds may be placed in an insured interest-bearing savings account without the consent of the patient, grantor of the trust, or legally responsible person. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

In the case of individual patient funds held in trust by a state custodian, the patient who is the beneficial owner of the funds is entitled to any interest or income generated by deposit in an interest-bearing savings account. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

In the case of individual patient funds deposited in a common interest-bearing savings account, the State cannot charge an administrative handling fee to cover the costs of computing interest which has accrued on individual funds deposited in the common account. See opinion of Attorney General to Mr. Phillip J. Kirk, Jr., Secretary, Department of Human Resources, 56 N.C.A.G. 10 (1986).

Funds donated to Lenox Baker Children's Hospital are required to be deposited with the State Treasurer unless the conditions or terms of the gift provide to the contrary, or unless otherwise provided by law. See opinion of Attorney General to Mr. Richard J. Vinegar, Chairman Board of Directors of Lenox Baker Children's Hospital, 56 N.C.A.G. 31 (1986).

§ 147-86.12. Cash management for school administration units.

All school administrative units and their officers and employees are subject to the provision of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to the school administrative unit for expenditure by warrants drawn on the State Treasurer.

History

(1985, c. 709, s. 1.)

§ 147-86.13. Cash management for community colleges.

All community colleges and their officers and employees are subject to the provisions of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer.

History

(1985, c. 709, s. 1; 1987, c. 564, s. 9.)

§ 147-86.14. Cash management for the General Court of Justice.

All agencies, institutions, bureaus, boards, commissions, and officers of the General Court of Justice as defined in Article IV of the Constitution are subject to the provisions of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer; provided, that the provisions of G.S. 147-86.11 shall not apply to any funds deposited with a clerk of superior court unless the beneficial owner of the funds is either the State or a local governmental unit of the State.

History

(1985, c. 709, s. 1.)

§ 147-86.15. Cash management of the Highway Fund and the Highway Trust Fund.

The State Treasurer may combine the balances of the Highway Fund and the Highway Trust Fund for cash management purposes. The State Treasurer may make short-term loans between the Funds to accomplish the purposes of this section.

History

(2001-424, s. 27.23(b).)

Editor's Note. - Session Laws 2001-424, s. 27.23(a), provides: "The Department of Transportation is directed to reorganize its cash management procedures consistent with the March 2001 Joint Legislative Transportation Oversight Committee Cash Management Study final report.

"The Department is directed to:

"(1) Utilize cash flow financing to the maximum extent possible to fund highway construction projects with the goal of reducing the combined average daily cash balance of the Highway Trust Fund and the Highway Fund to an amount equal to twelve percent (12%) of combined estimate of the yearly receipts of the Funds, exclusive of municipal aid funds.

"(2) Establish necessary management controls to facilitate use of cash flow financing, such as establishment of a financial planning committee, development of a monthly financial report, establishment of appropriate fund cash level targets, review of revenue forecasting procedures, and reduction of accrued unbilled costs.

"(3) Strengthen the project delivery process by reorganization of preconstruction functions in order to expedite project delivery and maximize use of cash flow financing of projects. The Department shall designate one person responsible for project delivery, developing project delivery reports, and continually assessing which projects can be accelerated using cash flow financing.

"(4) Report quarterly for a period of two years, beginning in September 2001, to the Joint Legislative Transportation Oversight Committee on its efforts to reorganize the cash management and project delivery process and the results of those efforts."

Session Laws 2001-424, s. 27.23(c), provides: "The Department of Transportation and the State Treasurer are directed to jointly:

"(1) Evaluate the recommendations of the March 2001 Joint Legislative Transportation Oversight Committee Cash Management Study final report concerning authorization for the State Treasurer to borrow funds on a short-term basis in order to allow the Department of Transportation to maintain lower target cash balances and expedite highway construction projects;

"(2) Develop recommendations concerning short-term borrowing for cash management purposes, including any needed legislation; and

"(3) Submit findings and recommendations to the Joint Legislative Transportation Oversight Committee by February 1, 2002."

Session Laws 2001-424, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2001'."

Session Laws 2001-424, s. 36.5, is a severability clause.

Session Laws 2001-424, s. 36.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2001-2003 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2001-2003 fiscal biennium."

§§ 147-86.16 through 147-86.19: Reserved for future codification purposes.

§ 147-86.20. Definitions.

The following definitions apply in this Article:

1. Account receivable. - An asset of the State reflecting a debt that is owed to the State and has not been received by the State agency servicing the debt. The term includes claims, damages, fees, fines, forfeitures, loans, overpayments, taxes, and tuition as well as penalties, interest, and other costs authorized by law. The term does not include court costs or fees assessed in actions before the General Court of Justice or counsel fees and other expenses of representing indigents under Article 36 of Chapter 7A of the General Statutes.
2. Debtor. - A person who owes an account receivable.
3. Electronic payment. - Payment by charge card, credit card, debit card, or by electronic funds transfer as defined in G.S. 105-228.90(b).
4. Past-due. - An account receivable is past-due if the State has not received payment of it by the payment due date.
5. Person. - An individual, a fiduciary, a firm, a partnership, an association, a corporation, a unit of government, or another group acting as a unit.
6. State agency. - Defined in G.S. 147-64.4(4). The term does not include, however, a community college, a local school administrative unit, an area mental health, developmental disabilities, and substance abuse authority, or the General Court of Justice.
7. Write-off. - To remove an account receivable from a State agency's accounts receivable records.

History

(1993, c. 512, s. 1; 1999-434, s. 1; 2010-31, s. 31.8(a); 2019-177, s. 8.1.)

Editor's Note. - Article 36 of Chapter 7A, referred to in this section, is codified as G.S. 7A-450 et seq.

Effect of Amendments. - Session Laws 2010-31, s. 31.8(a), effective June 30, 2010, in subdivision (1), substituted "Account receivable" for "Account Receivable" at the beginning and inserted "taxes" in the second sentence.

Session Laws 2019-177, s. 8.1, effective July 26, 2019, substituted "G.S. 105-228.90(b)" for "this subsection" at the end of subdivision (2a); and made minor stylistic changes.

§ 147-86.21. State agencies to collect accounts receivable in accordance with statewide policies.

A State agency to which an account receivable is owed is responsible for collecting the account receivable. In fulfilling this responsibility, a State agency shall establish internal policies and procedures for the management and collection of accounts receivable and shall submit its internal policies and procedures to the State Controller for review.

The State Controller shall examine the policies and procedures submitted by a State agency to determine whether they are consistent with statewide policies and procedures adopted by the State Controller. The statewide policies and procedures shall ensure that a State agency takes all cost-effective and appropriate actions to collect accounts receivable owed to it. If the State Controller determines that a State agency's policies and procedures are not consistent with the statewide policies and procedures, the State Controller shall discuss the inconsistencies with the State agency to determine whether special circumstances, such as a requirement of federal law, justify the inconsistencies. If the State Controller, after consulting with the Office of the Attorney General, finds that no special circumstances justify the inconsistencies, the State Controller shall notify the State agency and the State agency shall conform its policies and procedures to the statewide policies and procedures. If the State Controller finds that special circumstances justify the inconsistencies, the State agency's internal policies and procedures shall reflect the special circumstances.

History

(1993, c. 512, s. 1.)

§ 147-86.22. Statewide accounts receivable program.

1. Program. - The State Controller shall implement a statewide accounts receivable program. As part of this program, the State Controller shall do all of the following:
   1. Monitor the State's accounts receivable collection efforts.
   2. Coordinate information, systems, and procedures between State agencies to maximize the collection of past-due accounts receivable.
   3. Adopt policies and procedures for the management and collection of accounts receivable by State agencies.
   4. Establish procedures for writing off accounts receivable.
2. Electronic Payment. - Notwithstanding the provisions of G.S. 147-86.20 and G.S. 147-86.21, this subsection applies to debts owed a community college, a local school administrative unit, an area mental health, developmental disabilities, and substance abuse authority, and the Administrative Office of the Courts, and to debts payable to or through the office of a clerk of superior court or a magistrate, as well as to debts owed to other State agencies as defined in G.S. 147-86.20.
3. Collection Techniques. - The State Controller, in conjunction with the Office of the Attorney General, shall establish policies and procedures to govern techniques for collection of accounts receivable. These techniques may include use of credit reporting bureaus, judicial remedies authorized by law, and administrative setoff by a reduction of a tax refund pursuant to the Setoff Debt Collection Act, Chapter 105A of the General Statutes, or a reduction of another payment, other than payroll, due from the State to a person to reduce or eliminate an account receivable that the person owes the State.
4. [Annual Report. - ] The State Controller shall report annually to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the revenue deposited into Special Reserve Account 24172 and the disbursement of that revenue.

The State Controller shall establish policies that allow accounts receivable to be payable under certain conditions by electronic payment. These policies shall be established with the concurrence of the State Treasurer. In addition, any policies that apply to debts payable to or through the office of a clerk of superior court or a magistrate shall be established with the concurrence of the Administrative Officer of the Courts. The Administrative Officer of the Courts may also establish policies otherwise authorized by law that apply to these debts as long as those policies are not inconsistent with the Controller's policies.

A condition of payment by electronic payment is receipt by the appropriate State agency of the full amount of the account receivable owed to the State agency. A debtor who pays by electronic payment may be required to pay any fee or charge associated with the use of electronic payment. Fees associated with processing electronic payments may be paid out of the General Fund and Highway Fund if the payment of the fee by the State is economically beneficial to the State and the payment of the fee by the State has been approved by the State Controller and State Treasurer.

The State Controller and State Treasurer shall consult with the Joint Legislative Commission on Governmental Operations before establishing policies that allow accounts receivable to be payable by electronic payment and before authorizing fees associated with electronic payment to be paid out of the General Fund and Highway Fund.

A payment of an account receivable that is made by electronic payment and is not honored by the issuer of the card or the financial institution offering electronic funds transfer does not relieve the debtor of the obligation to pay the account receivable.

The State Controller shall negotiate a contract with a third party to perform an audit and collection process of inadvertent overpayments by State agencies to vendors as a result of pricing errors, neglected rebates and discounts, miscalculated freight charges, unclaimed refunds, erroneously paid excise taxes, and related errors. The third party shall be compensated only from funds recovered as a result of the audit. Savings realized in excess of costs shall be transferred from the agency to the Office of State Budget and Management and placed in a special reserve account for future direction by the General Assembly. Any disputed savings shall be settled by the State Controller. This paragraph does not apply to the purchase of medical services by State agencies or payments used to reimburse or otherwise pay for health care services.

History

(1993, c. 512, s. 1; 1998-212, s. 26.1; 1999-434, s. 3; 2000-140, s. 93.1(a); 2001-424, s. 12.2(b); 2010-31, s. 31.8(b); 2020-78, ss. 15.1(c), 19.1(b).)

Editor's Note. - Session Laws 2020-78, s. 15.1(c) was codified as subsection (d) of this section at the direction of the Revisor of Statutes.

Session Laws 2020-78, s. 22.1, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium."

Session Laws 2020-78, s. 22.3, is a severability clause.

Effect of Amendments. - Session Laws 2010-31, s. 31.8(b), effective June 30, 2010, in subdivision (a)(4), deleted "and for determining when to end efforts to collect accounts receivable after they have been written off" from the end; and in subsection (c), in the first paragraph, substituted "of a tax refund" for "of an individual's tax refund" in the second sentence, and in the last paragraph, deleted "No later than January 1, 1999" from the beginning.

Session Laws 2020-78, s. 19.1(b), effective July 1, 2020, deleted the last sentence in the fourth paragraph of subsection (b), which read: "A State agency must also consult with the Joint Legislative Commission on Governmental Operations before implementing any program to accept payment under the policies established pursuant to this subsection."

§ 147-86.23. Interest and penalties.

A State agency shall charge interest at the rate established pursuant to G.S. 105-241.21 on a past-due account receivable from the date the account receivable was due until it is paid. A State agency shall add to a past-due account receivable a late payment penalty of no more than ten percent (10%) of the account receivable. A State agency may waive a late-payment penalty for good cause shown. If another statute requires the payment of interest or a penalty on a past-due account receivable, this section does not apply to that past-due account receivable. This section does not apply to money owed to the University of North Carolina Health Care System or to East Carolina University's Division of Health Sciences for health care services, to the North Carolina Turnpike Authority for money owed to the Authority for tolls, or to the North Carolina State Health Plan for past-due account receivables related to premiums and claims payments.

History

(1993, c. 512, s. 1; 2007-306, s. 4; 2007-491, s. 44(1)a; 2012-78, s. 14; 2012-194, s. 68(c); 2013-324, s. 6.)

Editor's Note. - Session Laws 2012-78, s. 18, provides: "Prosecutions for offenses committed before the effective date of the section of this act that modifies the offense [June 26, 2012] are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions."

Session Laws 2020-3, s. 2.28, as amended by Session Laws 2021-3, s. 2.3, provides: "Notwithstanding G.S. 147-86.23, a constituent institution of The University of North Carolina shall not accrue or charge any interest to a past-due account receivable held by a student between March 13, 2020, and December 31, 2021."

Session Laws 2020-3, s. 4.24(a), (b), provides: "(a) Notwithstanding G.S. 147-86.23, a State agency, as defined in G.S. 147-86.20(5), may waive any interest due on a past-due account receivable. This section does not apply to money owed to the University of North Carolina Health Care System or to East Carolina University's Division of Health Sciences for health care services, to the North Carolina Turnpike Authority for money owed to the Authority for tolls, or to the North Carolina State Health Plan for past-due account receivables related to premiums and claims payments.

"(b) This section is effective when it becomes law and expires August 1, 2020."

Session Laws 2020-3, s. 2.1, as amended by Session Laws 2020-49, s. 3(a), provides: "For the purposes of this Part, the following definitions apply:

"(1) Authority. - State Education Assistance Authority.

"(2) Coronavirus disease 2019 (COVID-19) emergency. - The period beginning March 10, 2020, and continuing until the Governor signs an executive order rescinding Executive Order No. 116 (Declaration of a State of Emergency to Coordinate Response and Protective Actions to Prevent the Spread of COVID-19).

"(3) Federal testing waiver. - The testing waiver granted to the State Board of Education by the United States Department of Education for the 2019-2020 school year, pursuant to section 8401(b) of the Elementary and Secondary Education Act of 1965 (ESEA), as amended, which, pursuant to G.S. 115C-174.11, eliminated the collection of certain student assessment data for the 2019-2020 school year.

"(4) Modified calendar school. - A school that a local board designated as having a modified calendar for the 2003-2004 school year or any school that was part of a planned program in the 2003-2004 school year for a system of modified calendar schools, so long as the school operates under a modified calendar.

"(5) State Board. - The State Board of Education.

"(6) Year-round school. - A school with a single or multi-track instructional calendar that was adopted prior to March 1, 2020, and provides instructional days in compliance with Section 2.11(b)(1) of this Part throughout the entire school calendar year, beginning July 1 and ending June 30, by utilizing at least one of the following plans:

"a. A plan dividing students into four groups and requiring each group to be in school for assigned and staggered quarters each school calendar year.

"b. A plan providing students be scheduled to attend an average of between 44 and 46 instructional days followed by an average of between 15 and 20 days of vacation, repeated throughout the school calendar year.

"c. A plan dividing the school calendar year into five nine-week sessions of classes and requiring each student to attend four assigned and staggered sessions out of the five nine-week sessions to complete the student's instructional year."

Session Laws 2020-3, s. 2.2, provides: "The purpose of this Part is to clarify or modify certain requirements in consideration of actions and circumstances related to the COVID-19 emergency, including, but not limited to, the federal testing waiver and the closure of schools for in-person instruction during the 2019-2020 school year."

Effect of Amendments. - Session Laws 2007-306, s. 4, effective July 28, 2007, added the last sentence in the section.

Session Laws 2007-491, s. 44(1)a, effective January 1, 2008, substituted "G.S. 105-241.21" for "G.S. 105-241.1(i)" in the first sentence.

Session Laws 2012-78, s. 14, effective June 26, 2012, substituted "services or to the North Carolina Turnpike Authority for money owed to the Authority for tolls" for "services" in the last sentence.

Session Laws 2012-194, s. 68(c), effective July 17, 2012, inserted "or to East Carolina University's Division of Health Sciences" in the last sentence.

Session Laws 2013-324, s. 6, effective July 23, 2013, in the fifth sentence, deleted "or" following "health care services" and added "or to the North Carolina State Health Plan for past-due account receivables related to premiums and claims payments."

§ 147-86.24. Debtor information and skip tracing.

A State agency shall collect from clients and debtors minimum identifying information as prescribed by the State Controller. A State agency shall use all available debtor information to skip trace debtors as prescribed by the State Controller.

The State Controller shall establish procedures to give the State Controller access to information that is in the custody of a State agency and could assist another State agency in the collection of accounts receivable owed to that State agency. A State agency that has this information shall cooperate with the State Controller in giving the State Controller access to the information. If the information is contained in an electronic database, the State agency shall provide the State Controller on-line electronic access upon request. A State agency is not required to give the State Controller access to information when a State or federal law prohibits the disclosure of the information.

History

(1993, c. 512, s. 1.)

§ 147-86.25. Setoff debt collection.

The State Controller shall implement a statewide setoff debt collection program to provide for collection of the following accounts receivable by setoff against payments the State owes to debtors, other than payments of tax refunds and payroll:

1. Accounts receivable submitted to the Department of Revenue by a claimant agency under the Setoff Debt Collection Act, Chapter 105A of the General Statutes.
2. An overdue tax debt, as defined in G.S. 105-243.1.

History

(1993, c. 512, s. 1; 2010-31, s. 31.8(c).)

Effect of Amendments. - Session Laws 2010-31, s. 31.8(c), effective June 30, 2010, rewrote the section.

§ 147-86.26. Reporting requirements.

A State agency shall provide the State Controller a complete report of the agency's accounts receivable at least quarterly or more frequently as required by the State Controller. The State Controller shall use the information provided by a State agency and any additional information available to compile a summary report of the agency. The State Controller shall provide copies of these summary reports annually to the Governor, the Joint Legislative Commission on Governmental Operations, and each State agency. Each summary report shall include the following:

1. The type of accounts receivable owed to the State agency.
2. An aging of the accounts receivable.
3. Any attempted collection activity and any costs incurred in the collection process.
4. Any accounts receivable that have been written off.
5. Information required by subdivisions (1) through (4) for the previous three years.
6. Identification of a State agency that is not complying with this Article or Chapter 105A of the General Statutes.
7. Any additional information the State Controller considers useful.

History

(1993, c. 512, s. 1.)

Editor's Note. - Session Laws 2014-100, s. 11.10(c), provides: "The North Carolina Teaching Fellows Commission shall deliver to the State Education Assistance Authority, in a format acceptable to the Authority, complete electronic and paper records on (i) all outstanding scholarship loans previously awarded but not canceled by service or otherwise satisfied in full as of the date of delivery, including records of applicable teaching service performed to that date, and (ii) aggregate historical data on the numbers of loans made that are no longer active and, of those, numbers and dollars paid in cash, paid in service, or written off due to death, disability, or uncollectible debt.

"Prior to the transfer of any such outstanding scholarship loan and related records, the North Carolina Teaching Fellows Commission shall discharge its reporting obligations under G.S. 147-86.26 and specifically confirm for the Authority that no account subject to write-off in accordance with the Statewide Accounts Receivable Program has been transferred under this section."

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year."

Session Laws 2014-100, s. 38.7, is a severability clause.

§ 147-86.27. Rules.

A State agency may adopt rules to implement this Article.

History

(1993, c. 512, s. 1.)

§§ 147-86.28, 147-86.29: Reserved for future codification purposes.

§§ 147-86.30 through 147-86.36: Repealed by Session Laws 2011-145, s. 6.11(a), effective August 14, 2011.

History

(§ 147-86.30: 2000-147, s. 2; 2004-179, s. 1.3; 2006-203, s. 122; 2008-187, s. 28; repealed by 2011-145, s. 6.11(a), effective August 14, 2011. § 147-86.31: 2000-147, s. 2; repealed by 2011-145, s. 6.11(a), effective August 14, 2011. § 147-86.32: 2000-147, s. 2; repealed by 2011-145, s. 6.11(a), effective August 14, 2011. § 147-86.33: 2000-147, s. 2; repealed by 2011-145, s. 6.11(a), effective August 14, 2011. § 147-86.34: 2000-147, s. 2; repealed by 2011-145, s. 6.11(a), effective August 14, 2011. § 147-86.35: 2000-147, s. 2; 2004-196, s. 3; 2006-203, s. 123; repealed by 2011-145, s. 6.11(a), effective August 14, 2011. § 147-86.36: 2000-147, s. 2; repealed by 2011-145, s. 6.11(a), effective August 14, 2011.)

Editor's Note. - Former G.S. 147-86.35 was amended by Session Laws 2011-291, s. 2.55, effective June 24, 2011, by substituting "Joint Legislative Oversight Committee on Health and Human Services" for "Joint Legislative Health Care Oversight Committee" in subsection (a).

Former G.S. 147-86.30 pertained to establishment of the Health and Wellness Trust Fund. Former G.S. 147-86.31 pertained to eligibility for grants and annual reports from non-State agencies. Former G.S. 147-86.32 pertained to the establishment of the Commission and membership qualifications. Former G.S. 147-86.33 pertained to powers and duties. Former G.S. 147-86.34 pertained to the Advisory Council. Former G.S. 147-86.35 pertained to reporting requirements. Former G.S. 147-86.36 pertained to open meeting and public records requirements.

§§ 147-86.37 through 147-86.40: Reserved for future codification purposes.

§§ 147-86.41 through 147-86.49: Repealed by Session Laws 2021-58, s. 1(c), effective June 28, 2021.

History

(G.S. 147-86.41: 2007-486, s. 1; repealed by 2021-58, s. 1(c), effective June 28, 2021. G.S. 147-86.42: 2007-486, s. 2; 2015-241, s. 21.2(a); 2015-268, s. 7.5; 2017-193, s. 2.1; 2018-84, s. 4(b); repealed by 2021-58, s. 1(c), effective June 28, 2021. G.S. 147-86.43: 2007-486, s. 3; 2017-193, s. 2.2; repealed by 2021-58, s. 1(c), effective June 28, 2021. G.S. 147-86.44: 2007-486, s. 4; 2015-241, s. 21.2(b); 2015-268, s. 7.5; 2017-193, s. 2.3; repealed by 2021-58, s. 1(c), effective June 28, 2021. G.S. 147-86.45: 2007-486, s. 5; 2017-193, s. 2.4; repealed by 2021-58, s. 1(c), effective June 28, 2021. G.S. 147-86.46: 2007-486, s. 6; repealed by 2021-58, s. 1(c), effective June 28, 2021. G.S. 147-86.47: 2007-486, s. 7; repealed by 2017-193, s. 2.5, effective October 1, 2017. G.S. 147-86.48: 2007-486, s. 8; repealed by 2017-193, s. 2.5, effective October 1, 2017. G.S. 147-86.49: 2007-486, s. 9; repealed by 2021-58, s. 1(c), effective June 28, 2021.)

Editor's Note. - Former G.S. 147-86.41 pertained to legislative findings. Former G.S. 147-86.42 pertained to definitions. Former G.S. 147-86.43 pertained to the identification of companies. Former G.S. 147-86.44 pertained to required actions. Former G.S. 147-86.45 pertained to reporting. Former G.S. 147-86.46 pertained to the expiration of this article. Former G.S. 147-86.49 pertained to enforcement.

Former G.S. 147-86.47 and 147-86.48 were previously repealed by Session Laws 2017-193, s. 2.5, effective October 1, 2017, and pertained to other legal obligations, and reinvestment in certain companies with Scrutinized Active Business Operations, respectively.

§§ 147-86.50 through 147-86.54: Reserved for future codification purposes.

§ 147-86.55. Article title.

This Article may be cited as the "Iran Divestment Act of 2015.

History

(2015-118, s. 1.)

Editor's Note. - This Article was enacted as Article 6A of Chapter 143C and was redesignated as Article 6E of Chapter 147 pursuant to the direction of the Revisor of Statutes.

This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-1. It was renumbered at the direction of the Revisor of Statutes.

Session Laws 2015-118, s. 2, provides: "Nothing in this act is intended to create a fiduciary relationship between the State Treasurer and any party who uses the list or any fiduciary duty on the part of the State Treasurer where one does not otherwise exist by law."

Session Laws 2015-118, s. 3, provides: "The State Treasurer shall submit to the Attorney General of the United States a written notice describing this act within 30 days after the effective date of this act [October 1, 2015]."

Session Laws 2015-118, s. 4(a), provides: "Pursuant to G.S. 147-69.3(g), the State Treasurer is authorized to retain the services of consultants, professional individuals, analysts, data collection firms, or other persons possessing specialized skills or knowledge necessary for the proper implementation and administration of the requirements of this act." This section is effective June 29, 2015.

§ 147-86.56. Findings.

The General Assembly finds that:

1. Congress and the President have determined that the illicit nuclear activities of the Government of Iran, combined with its development of unconventional weapons and ballistic missiles and its support of international terrorism, represent a serious threat to the security of the United States, Israel, and other United States allies in Europe, the Middle East, and around the world.
2. The International Atomic Energy Agency has repeatedly called attention to Iran's unlawful nuclear activities, and, as a result, the United Nations Security Council has adopted a range of sanctions designed to encourage the Government of Iran to cease those activities and comply with its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons.
3. On July 1, 2010, President Barack Obama signed into law H.R. 2194, the "Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010" (Public Law 111-195), which expressly authorizes states and local governments to prevent investment in, including prohibiting entry into or renewing contracts with, companies operating in Iran's energy sector with investments that have the result of directly or indirectly supporting the efforts of the Government of Iran to achieve nuclear weapons capability.
4. The serious and urgent nature of the threat from Iran demands that states, local governments, and private institutions work together with the federal government and American allies to do everything possible diplomatically, politically, and economically to prevent Iran from acquiring nuclear weapons capability.
5. Respect for human rights in Iran has steadily deteriorated as demonstrated by transparently fraudulent elections and the brutal repression and murder, arbitrary arrests, and show trials of peaceful dissidents.
6. The concerns of the State regarding Iran are strictly the result of the actions of the Government of Iran and should not be construed as enmity towards the Iranian people.
7. In order to effectively address the need for this State to respond to the policies of Iran in a uniform fashion, prohibiting contracts with companies engaged in investment activities in the energy sector of Iran must be accomplished on a statewide basis.
8. It is the intent of the General Assembly to fully implement the authority granted under Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-195).

History

(2015-118, s. 1; 2017-193, s. 3.1.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-2. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.1, effective October 1, 2017, substituted "companies" for "persons" in subdivision (7).

§ 147-86.57. Definitions.

As used in this Article:

1. "Company" means any sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries, parent companies, or affiliates of those entities or business associations.
2. "Energy sector of Iran" means activities to develop petroleum or natural gas resources or nuclear power in Iran.
3. "Financial institution" means the term as used in Section 14 of the Iran Sanctions Act of 1996, as amended (Public Law 104-172; 50 U.S.C. 1701 § note).
4. "Investment" means a commitment or contribution of funds or property, whatever the source, a loan or other extension of credit, and the entry into or renewal of a contract for goods or services. It does not include index or index replication strategies, commingled funds, limited partnerships, or similar investment vehicles, or derivative instruments.
5. "Investment activities in Iran" means a company engages in investment activities in Iran if:
   1. The company provides goods or services of twenty million dollars ($20,000,000) or more within any 12-month period in the energy sector of Iran, including a company that provides oil or liquefied natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas, for the energy sector of Iran; or
   2. The company is a financial institution that extends twenty million dollars ($20,000,000) or more in credit to another company, for 45 days or more, if (i) the financial institution knows, or reasonably should know, that company will use the credit to provide goods or services in the energy sector in Iran, and (ii) the company receiving credit is identified on a list created pursuant to G.S. 147-86.60 as a company engaging in investment activities in Iran as described in this section.
6. "Iran" includes the Government of Iran and any agency or instrumentality of Iran.
7. "Person" means any of the following:
   1. A natural person, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group.
   2. Any governmental entity or instrumentality of a government, including a multilateral development institution, as defined in section 1701(c)(3) of the International Financial Institutions Act (22 U.S.C. § 262r(c)(3)).
   3. Any successor, parent entity owning more than 20%, or majority-owned subunit or subsidiary of any entity described in sub-subdivisions (a) and (b) of this subdivision.
8. "State agency" means any board, commission, department, executive department, officer, institution, and any political subdivision of the State.

History

(2015-118, s. 1; 2017-193, s. 3.2; 2018-84, s. 4(a); 2021-58, s. 1(b).)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-3. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.2, effective October 1, 2017, added subdivision (1); and redesignated former subdivision (1) as subdivision (1a); and substituted "company" for "person" throughout subdivision (4).

Session Laws 2018-84, s. 4(a), effective June 25, 2018, deleted "indirect" preceding "beneficial" in the last sentence of subdivision (3).

Session Laws 2021-58, s. 1(b), effective June 28, 2021, in subdivision (3), substituted "index or index replication strategies” for "beneficial ownership through index funds,” inserted "or similar investment vehicles, or” and deleted "or the like” at the end.

§ 147-86.58. Prohibitions on State investment.

No more than 30 days after October 1, 2015, the State Treasurer shall adopt a policy prohibiting the North Carolina Retirement Systems or the Department of the State Treasurer from investing funds with a company engaging in investment activities in Iran. At a minimum, the policy shall provide:

1. List of restricted companies. - Within 120 days of adoption of the policy, the State Treasurer shall develop and make publically available, a list of companies it determines engage in investment activities in Iran. The State Treasurer shall use any other state lists of restricted companies pursuant to similar laws and any federal information or guidance on companies engaged in investment activities in Iran and any other credible information provided by nonprofit organizations, research firms, governmental entities, and generally public information. The State Treasurer shall make every effort to avoid erroneously including a company on the list. The State Treasurer shall update the list annually. Before finalizing an initial list or an updated list, the State Treasurer must do all of the following before a company is included on the list:
   1. Provide 90 days' written notice of the State Treasurer's intent to include the company on the list. The notice shall inform the company that inclusion on the list would make the company ineligible for State investment and may affect the company's ability to conduct other business with the State and its subdivisions. The notice shall specify that the company may be removed from the list if it ceases its investment activities in Iran.
   2. The State Treasurer shall provide a company with an opportunity to comment in writing that it is not engaged in investment activities in Iran. If the company demonstrates to the State Treasurer that the company is not engaged in investment activities in Iran, the company shall not be included on the list.
2. Investments prohibited. - Neither the North Carolina Retirement Systems nor the State Treasurer may invest funds with a company that is identified on a list created pursuant to subdivision (1) of this section as a company engaging in investment activities in Iran.
3. Existing investments. - Any existing investment with a company that is identified on a list created pursuant to subdivision (1) of this section as a company engaging in investment activities in Iran must be divested within 180 days of being placed on the list created pursuant to subdivision (1) of this section.
4. Fiduciary duties. - Nothing in the policy or in this Article shall require the North Carolina Retirement Systems or the State Treasurer to take action unless it is determined by the State Treasurer, in good faith, that the action is consistent with the fiduciary responsibilities of the Retirement Systems and the State Treasurer.
5. Exceptions. - Notwithstanding the policy, an investment may be made in a company engaged in investment activities in Iran if:
   1. The company is eligible to contract with the State under the exception in G.S. 147-86.61.
   2. The State Treasurer makes a good-faith determination, on a case-by-case basis, that the investments are necessary to perform its functions.

History

(2015-118, s. 1; 2017-193, s. 3.3.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-4. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.3, effective October 1, 2017, substituted "company" or variant for "person" or variant in the introductory paragraph and throughout the section; in subdivision (1) substituted "List of restricted companies" for "List of persons engaged in investment", deleted "using federal sanctions lists and any other credible information available to the public," following "make publically available", added the second sentence, substituted "annually" for "every 180 days" in the second to last sentence; in the last sentence of sub-subdivision (1)a. substituted "company" for "person, if it ceases its engagement in investment activities in Iran," and added "if it ceases its investment activities in Iran."; substituted "being placed on the list created pursuant to subdivision (1) of this section." for "the adoption of the policy." in subdivision (3).

§ 147-86.59: Repealed by Session Laws 2017-193, s. 3.4, effective October 1, 2017.

History

(2015-118, s. 1; repealed by 2017-193, 3.4, effective October 1, 2017.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-5. It was renumbered at the direction of the Revisor of Statutes.

Former G.S. 147-86.59 pertained to certification required.

§ 147-86.60. Restrictions on contracts with the State or subdivisions of the State.

1. A company that is identified on a list created by the State Treasurer pursuant to G.S. 147-86.58 as a company engaging in investment activities in Iran is ineligible to contract with the State or any political subdivision of the State.
2. Any contract entered into with a company that is ineligible to contract with the State or any political subdivision of the State is void ab initio.
3. Existing contracts with companies made ineligible to contract with the State or any political subdivision of the State under this Article shall be allowed to expire in accordance with the terms of the contract.

History

(2015-118, s. 1; 2017-193, s. 3.5.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-6. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.5, effective October 1, 2017, substituted "company" or variant for "person" or variant throughout the section.

Session Laws 2017-193, s. 3.6, effective October 1, 2017, substituted "company" or variant for "person" or variant throughout the section; in subsection (b) substituted "not be placed on the list developed pursuant to G.S. 147-86.58(1)" for "contract with the State or a political subdivision of the State" following "in investment activities in Iran may" in the first sentence, and substituted "annually" for "every 100 days" in the third sentence.

§ 147-86.61. Exceptions.

1. G.S. 147-86.60 does not apply to contracts valued at one thousand dollars ($1,000) or less.
2. Companies engaged in substantial positive action. - Notwithstanding any other provision of this Article, a company engaged in investment activities in Iran may not be placed on the list developed pursuant to G.S. 147-86.58(1) if the State Treasurer determines, using U.S. government statements and any other credible information available to the public, that the company's investment activities in Iran were made before October 1, 2015, the investment activities in Iran have not been expanded or renewed after October 1, 2015, and the company has adopted, publicized, and is implementing a detailed plan to cease the investment activities in Iran and to refrain from engaging in any new investments in Iran. The State Treasurer shall develop and make publically available a "Substantial Positive Action Exception List" of these companies. The State Treasurer shall update the list annually. Once a person has not engaged in investment activities in Iran within the previous five years, the State Treasurer shall remove that person from the list created pursuant to G.S. 147-86.58.
3. Necessary commodities or services. - Notwithstanding any other provision of this Article, a company engaged in investment activities in Iran may contract with the State or a political subdivision of the State, on a case-by-case basis, if the State agency or political subdivision makes a good-faith determination that the commodities or services are necessary to perform its functions and that, absent such an exemption, the State agency would be unable to obtain the commodities or services for which the contract is offered. The determination shall be entered into the procurement record.

History

(2015-118, s. 1; 2017-193, s. 3.6.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-7. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.6, effective October 1, 2017, substituted "company" or variant for "person" or variant throughout the section; in subsection (b) substituted "not be placed on the list developed pursuant to G.S. 147 86.58(1)" for "contract with the State or a political subdivision of the State" following "in investment activities in Iran may" in the first sentence, and substituted "annually" for "every 100 days" in the third sentence.

§ 147-86.62. Report; application.

The State Treasurer shall report to the Joint Legislative Commission on Governmental Operations annually by October 1 on information regarding investments sold, redeemed, divested, or withdrawn in compliance with this Article.

History

(2015-118, s. 1; 2017-193, s. 3.7.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-8. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.7, effective October 1, 2017, deleted the former subsection (a) designation; substituted "Governmental Operations annually by October 1 on information regarding investments sold, redeemed, divested, or withdrawn in compliance with this Article." for "Governmental Operations and the Governor annually by October 1 on the status of the federal 'Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010' (Public Law 111 195), the 'Iran Divestment Act of 2015,' and any rules or regulations adopted thereunder."; and deleted former subsection (b) relating to circumstances for lifting the restrictions.

§ 147-86.63. No private right of action.

1. This Article does not create or authorize a private right of action to enforce the provisions of the Article.
2. A company may challenge being included on the lists established in this Article using the procedures in Article 3 of Chapter 150B of the General Statutes, except that no company may file a contested case more than once every 365 days, and no attorneys' fees may be awarded under G.S. 150B-33(b)(11).

History

(2015-118, s. 1; 2017-193, s. 3.8.)

Editor's Note. - This section was enacted by Session Laws 2015-118, s. 1, as G.S. 143C-6A-9. It was renumbered at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2017-193, s. 3.8, effective October 1, 2017, substituted "company" for "person" twice in subsection (b).

§§ 147-86.64 through 147-86.69: Reserved for future codification purposes.

§ 147-86.70. Policy and definitions.

1. Policy. - The General Assembly of North Carolina hereby finds and declares that encouraging and assisting individuals and families in saving private funds for the purpose of supporting individuals with disabilities, as authorized in the federal Achieving a Better Life Experience (ABLE) Act, to maintain health, independence, and a better quality of life is fully consistent with and furthers the long-established policy of the State to provide tools that strengthen opportunities for personal economic development and long-term financial planning.
2. Definitions. - The following definitions apply in this section:
   1. ABLE account. - An account established and owned by an eligible individual and maintained under this Article. A parent, sibling, guardian, or agent under a power of attorney may act on behalf of an account owner.
   2. Account owner. - The person who enters into an ABLE savings agreement pursuant to the provisions of this Article. The account owner must be the designated beneficiary.
   3. Board. - The ABLE Program Board of Trustees established in G.S. 147-86.72.
   4. Repealed by Session Laws 2016-56, s. 9(c), effective June 30, 2016.
   5. Designated beneficiary. - The eligible individual who established and owns an ABLE account.
   6. Disability certification. - Defined in 26 U.S.C. § 529A(e)(2).
   7. Eligible individual. - Defined in 26 U.S.C. § 529A(e)(1).
   8. Federal ABLE Act. - Division B of the Tax Increase Prevention Act of 2014, P.L. 113-295, the Achieving a Better Life Experience Act of 2014.
   9. Repealed by Session Laws 2020-48, s. 1.4(a), effective June 26, 2020, and applicable to actions taken on behalf of an ABLE account owner on or after that date.
   10. Qualified disability expense. - Defined in 26 U.S.C. § 529A(e)(5).
   11. Reserved for future codification purposes.
   12. Reserved for future codification purposes.
   13. Sibling. - A brother, sister, stepbrother, or stepsister.

History

(2015-203, s. 1; 2016-56, s. 9(c); 2017-212, s. 3.2(a); 2020-48, s. 1.4(a).)

Editor's Note. - Session Laws 2020-48, s. 1.4(d), made the amendment of subsection (b) of this section by Session Laws 2020-48, s. 1.4(a), effective June 26, 2020, and applicable to actions taken on behalf of an ABLE account owner on or after that date.

Session Laws 2020-48, s. 6.1, is a severability clause.

Effect of Amendments. - Session Laws 2016-56, s. 9(c), effective June 30, 2016, deleted subdivision (b)(4), which read "Contracting state. - A state without a qualified ABLE program that has entered into a contract with North Carolina to provide residents of the contracting state access to a qualified ABLE program."

Session Laws 2017-212, s. 3.2(a), effective October 8, 2017, substituted "A parent, guardian, or agent" for "A guardian or agent" in the second sentence of subdivision (b)(1).

Session Laws 2020-48, s. 1.4(a), added "sibling" in subdivision (b)(1); deleted subdivision (b)(9), which read, "Member of the family. - A brother, sister, stepbrother, or stepsister"; and added subdivision (b)(13). For effective date and applicability, see editor's note.

§ 147-86.71. ABLE Program.

1. Achieving a Better Life Experience (ABLE) Program Trust. - There is established an ABLE Program Trust to be administered by the ABLE Program Board of Trustees established in G.S. 147-86.72 to enable contributors to save funds to meet the costs of the qualified disability expenses of eligible individuals.
2. Accounts. - The following provisions apply to an ABLE account:
   1. An account owner or contributor may establish an account by making an initial contribution to the ABLE Program Trust, signing an application form approved by the Board or its designee, and naming the designated beneficiary. If the contributor is not the account owner, the account owner or the account owner's parent, sibling, guardian, trustee, or agent shall also sign the application form.
   2. Any person may make contributions to an account after the account is opened.
   3. Contributions to an account shall be made only in U.S. Dollars.
   4. Contributions to an account shall not exceed maximum contribution limits applicable to program accounts in accordance with the federal ABLE Act.
   5. An account owner may change the designated beneficiary of an account to an eligible individual who is a sibling of the former designated beneficiary. At the direction of an account owner, all or a portion of an account may be transferred to another account of which the designated beneficiary is a sibling of the designated beneficiary of the transferee account if the transferee account was created pursuant to this section or in accordance with the federal ABLE Act.
3. Contributions. - The Board is authorized to accept, hold, invest, and disburse contributions, and interest earned on such contributions, from contributors as trustees of the ABLE Program Trust. The Board shall hold all contributions to the ABLE Program Trust, and any earnings thereon, in the ABLE Program Trust and shall invest the contributions in accordance with this section. The assets of the ABLE Program Trust shall at all times be preserved, invested, and expended for the purpose of providing benefits to designated beneficiaries and paying reasonable expenses of administering the ABLE Program Trust and investing the assets of the ABLE Program Trust. Nothing in this Article shall be construed to prohibit the Board from accepting, holding, and investing contributions from contributors who reside outside of North Carolina. Neither the contributions to the ABLE Program Trust, nor the earnings thereon, shall be considered State monies, assets of the State, or State revenue for any purpose. An account or a legal or beneficial interest in an account is not subject to attachment, levy, or execution by a creditor of the designated beneficiary.
4. Limitations. - The Board, in administering the ABLE Program Trust, shall ensure each of the following:
   1. A rollover from an ABLE account shall constitute a qualified rollover if the rollover distribution is in accordance with the federal ABLE Act.
   2. A person may make contributions for a taxable year for the benefit of an individual who is an eligible individual for the taxable year to an ABLE account that is established to meet the qualified disability expenses of the designated beneficiary of the account.
   3. A designated beneficiary is limited to one ABLE account.
   4. Repealed by Session Laws 2016-56, s. 9(d), effective June 30, 2016.
   5. Except as permitted under the federal ABLE Act, a person does not direct the investment of any contributions to or earnings from the Achieving a Better Life Experience Program more than two times each year.
   6. An account or a legal or beneficial interest in an account is not assignable, pledged, or otherwise used to secure or obtain a loan or other advancement.
   7. Separate records and accounting are maintained for each ABLE account.
   8. Reports are made no less frequently than annually to each ABLE account owner.
   9. A parent, sibling, trustee, or guardian appointed as a signatory of an ABLE account does not have or acquire any beneficial interest in the account and administers the account for the benefit of the designated beneficiary.

History

(2015-203, s. 1; 2016-56, ss. 9(a), (d); 2017-212, s. 3.2(b); 2020-48, s. 1.4(b), (c).)

Editor's Note. - Session Laws 2015-203, s. 1, enacted this section as G.S. 147-86.51; it was recodified as G.S. 147-86.71 at the direction of the Revisor of Statutes.

Session Laws 2020-48, s. 1.4(d), made the amendment of subsection (b) and subdivision (d)(9) of this section by Session Laws 2020-48, s. 1.4(b), (c), effective June 26, 2020, and applicable to actions taken on behalf of an ABLE account owner on or after that date.

Session Laws 2020-48, s. 6.1, is a severability clause.

Effect of Amendments. - Session Laws 2016-56, s. 9(a), effective June 30, 2016, in subdivision (b)(3), substituted "U.S. Dollars" for "cash"; and deleted subdivision (d)(4), which read "An ABLE account may be established only for a designated beneficiary who is a resident of North Carolina or a resident of a contracting state."

Session Laws 2017-212, s. 3.2(b), effective October 8, 2017, in subdivision (b)(1), inserted "parent," preceding "guardian, trustee" in the second sentence; and in subdivision (d)(9), substituted "parent, trustee," for "trustee" preceding "or guardian".

Session Laws 2020-48, s. 1.4(b), (c), added "sibling" in subdivisions (b)(1) and (d)(9); and substituted "sibling" for "member of the family" twice in subdivision (b)(5). For effective date and applicability, see editor's note.

§ 147-86.72. ABLE Program Board of Trustees.

1. Board. - There is established a Board of Trustees to provide oversight of the general administration and proper operation of the ABLE Program and to determine the appropriate investment strategy for the ABLE Program Trust. The Board of Trustees shall consist of the following six members:
   1. The State Treasurer, ex officio, or the State Treasurer's designee, as chair.
   2. The Commissioner of Banks, ex officio, or the Commissioner of Banks' designee.
   3. The Secretary of the North Carolina Department of Health and Human Services, ex officio, or the Secretary's designee.
   4. A person appointed by the Governor having experience in investments and finance.
   5. A person appointed by the President Pro Tempore of the Senate having experience in advocacy for the disabled.
   6. A person appointed by the Speaker of the House of Representatives that is an immediate family member of an eligible individual or a guardian of an eligible individual.
2. Terms. - The members of the Board, except those members serving in an ex officio capacity, shall be appointed for terms of three years and shall serve until their successors are appointed and qualified. Vacancies are filled in the same manner as the original appointment. No appointed member of the Board may serve longer than any of the following:
   1. Two consecutive three-year terms.
   2. Three consecutive terms of any length, in the event that one or more of the terms is for less than three years in duration or the member serves a partial term as a result of filling a vacancy.
   3. Eight consecutive years, regardless of term lengths.
3. Duties. - The Board of Trustees is authorized to:
   1. Delegate the authority to the State Treasurer to develop and perform all functions necessary and desirable to (i) administer the ABLE Program Trust in such a manner as to meet and comply with the requirements of the federal ABLE Act and federal regulations under the Act, (ii) implement the investment strategy of the Board, and (iii) provide other services as the Board shall deem necessary to facilitate participation in the ABLE Program Trust.
   2. Notwithstanding provisions of Article 3 of Chapter 143 of the General Statutes, engage the services of consultants on a contract basis for rendering professional and technical assistance and advice.
   3. Notwithstanding the provisions of Article 3 of Chapter 143 of the General Statutes, retain the services of auditors, attorneys, investment counseling firms, custodians, or other persons or firms possessing specialized skills or knowledge necessary for the proper administration of investment programs that the Board administers pursuant to this Article.
   4. Develop marketing plans and promotional material.
   5. Establish the methods by which the funds held in accounts shall be dispersed.
   6. Establish the method by which funds shall be allocated to pay for administrative costs.
   7. Do all things necessary and proper to carry out the purposes of this act.
4. Investments. - The Board shall determine and document in an investment policy statement an appropriate investment strategy for the ABLE Program Trust containing one or more forms of investment or strategies for investment from which account owners may select. The Board shall authorize the State Treasurer to be responsible for engaging and discharging investment managers and service providers, including contracting and contract monitoring, to implement the investment strategy established by the Board. All amounts maintained in an account shall be invested according to the account owner's election of one or more of the strategies approved by the Board. Each strategy may include a combination of fixed income assets and preferred or common stocks issued by any company incorporated, or otherwise located within or outside the United States, or other appropriate investment instruments to achieve long-term return through a combination of capital appreciation and current income. If the Board approves multiple forms of investment as investment strategy options, transfers of an account owner's accumulated funds shall be permitted among the various approved forms of investments, subject to reasonable restrictions approved by the Board.
5. Discharge of Duties by the Board. - The assets of the ABLE Program Trust shall be held in trust for the designated beneficiaries. The assets of the ABLE Program Trust shall at all times be preserved, invested, and expended for the exclusive purpose of providing benefits to designated beneficiaries and paying reasonable expenses of administering the ABLE Program Trust and investing the assets of the ABLE Program Trust. Compliance by the Board with this section must be determined in light of the facts and circumstances existing at the time of the Board's decision or action and not by hindsight. The Board shall discharge its duties with respect to the ABLE Program Trust as follows:
   1. Solely in the interest of the designated beneficiaries.
   2. With the care, skill, and caution under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an activity of like character and purpose.
   3. Impartially, taking into account any differing interests of designated beneficiaries.
   4. Incurring only costs that are appropriate and reasonable.
   5. In accordance with a good-faith interpretation of the law governing the ABLE Program Trust.
6. Immunity. - A person serving on the ABLE Board of Trustees shall be immune individually from civil liability for monetary damages, and exempt to the extent covered by insurance, for any act or failure to act arising out of that service except where any of the following apply:
   1. The person was not acting within the scope of that person's official duties.
   2. The person was not acting in good faith.
   3. The person committed gross negligence or willful or wanton misconduct that resulted in the damages or injury.
   4. The person derived an improper personal financial benefit, either directly or indirectly, from the transaction.
7. Report. - The Board shall submit an annual evaluation of the ABLE Program and prepare and submit an annual report of such evaluation to the Joint Legislative Oversight Committee on Health and Human Services.
8. Other States Contracting for North Carolina to Provide Program. - With consent of the State Treasurer, the Board may enter into agreements with other states to either (i) allow North Carolina residents to participate in a plan operated by a contracting state with a qualified ABLE program or (ii) allow residents of other states to participate in the qualified North Carolina ABLE Program Trust.
9. Arrangements for North Carolina Program to Be Provided in Partnership With Other States. - Notwithstanding any other provision of this Article, in addition to or in lieu of establishing a North Carolina ABLE Program and ABLE Program Trust, the Board may do either of the following:
   1. Enter into an agreement with one or more states, or a consortium of states, that has a qualified ABLE program for the provision of all services necessary to allow residents of North Carolina to participate in the qualified ABLE program of the other state, states, or consortium.
   2. Facilitate or otherwise provide access to allow residents of North Carolina to participate in qualified ABLE programs operated by another state, states, or consortium.

The Board shall take action only after due diligence that includes a fiduciary analysis that indicates the qualified ABLE program offered by the other state, states, or consortium will (i) meet all the requirements of this Article and (ii) be more efficient and cost-effective than an ABLE program provided directly by the Board. If the Board enters into an arrangement authorized by this subsection, the Board shall meet on a semiannual basis to evaluate the effectiveness of the services being provided.

History

(2015-203, s. 1; 2016-56, s. 9(b); 2017-125, ss. 5(a), 5(b).)

Editor's Note. - Session Laws 2015-203, s. 1, enacted this section as G.S. 147-86.52; it was recodified as G.S. 147-86.72 at the direction of the Revisor of Statutes.

Session Laws 2015-203, s. 5, provides: "The Board authorized in G.S. 147-86.52 [147-86.72] shall be organized immediately after a majority of the members have been qualified or appointed and have taken the oath of office. The terms for the trustees that are appointed shall be for initial terms to expire June 30, 2018."

Effect of Amendments. - Session Laws 2016-56, s. 9(b), effective June 30, 2016, in subdivision (c)(3), inserted "Notwithstanding the provisions of Article 3 of Chapter 143 of the General Statutes."

Session Laws 2017-125, ss. 5(a) and 5(b), effective July 20, 2017, added "States Contracting for North Carolina to Provide Program" in the subsection heading for subsection (h); and added subsection (i).

§ 147-86.73. Administration of ABLE Program.

1. Administration. - The Board may delegate to the State Treasurer the authority to develop and perform all functions necessary and desirable to (i) administer the ABLE Program Trust in such a manner as to meet and comply with the requirements of the federal ABLE Act and federal regulations under the Act, (ii) implement the investment strategy established by the Board, and (iii) provide such other services as the State Treasurer shall deem necessary to facilitate participation in the ABLE Program Trust. The State Treasurer is further authorized to obtain the services of such investment managers, investment advisors, service providers, or program managers as may be necessary for the proper administration, marketing, and investment of the ABLE Program Trust.
2. Disclaimer. - Nothing in this section shall be construed to create any obligation of the State Treasurer, the State, or any agency or instrumentality of the State to guarantee for the benefit of any parent, other interested party, or designated beneficiary the rate of return or other return for any contribution to the ABLE Program Trust and the payment of interest or other return on any contribution to the ABLE Trust Fund.
3. Fees and Costs. - The State Treasurer may establish application, account, and administration fees in an amount not to exceed the amount necessary to offset the costs of the program. The following costs may be paid directly from the ABLE Program Trust:
   1. The costs of administration, management, investment, and operation of the ABLE Program Trust.
   2. The costs of all actions authorized by the Board.
   3. The costs of all actions delegated to the State Treasurer and the State Treasurer's staff by the Board under this section. Such costs shall be allocated among the designated beneficiaries in such manner as may be prescribed by the Board. The Board shall no less than annually approve a budget and allocation of costs.
4. Means-Tested Programs. - Notwithstanding any other provision of law, an ABLE account shall not be considered a resource for purposes of means-tested State benefits. Distributions for qualified disability expenses shall not be considered income for any State benefits eligibility program that limits eligibility based on income.
5. Claim for Medical Assistance Benefits. - To the extent provided in subsection 26 U.S.C. § 529A(f) upon the death of a designated beneficiary, the State shall have a claim for payment from the beneficiary's account in an amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the account. The State may file its claim for repayment from the account with the State Treasurer within 60 days of receiving notice from the State Treasurer of the death of the designated beneficiary. Any remaining funds in the beneficiary's account shall be distributed as provided in the account agreement or distributed to the beneficiary's estate if no other designation is made.
6. Notice of the Death of a Designated Beneficiary. - Within 30 days of the date the State Treasurer receives notice of the death of a designated beneficiary, the State Treasurer shall provide notice of the designated beneficiary's death to the Department of Health and Human Services, Division of Health Benefits.
7. Repealed by Session Laws 2016-94, s. 12H.2(b), effective July 14, 2016.
8. Notice for Designated Beneficiary Receiving Medicaid. - The ABLE Account application package approved in accordance with G.S. 147-86.71(b)(1) shall include notice of the State's right under subsection (e) of this section to file a claim for payment from a designated beneficiary's ABLE account following the death of a beneficiary who received medical assistance benefits.
9. Account Information. - The information related to individual ABLE accounts are not public records as defined in Chapter 132 of the General Statutes.
10. The Department of Health and Human Services shall provide information and assistance to the Department of State Treasurer and shall enter into a data-sharing agreement with the Department of State Treasurer for the purpose of the ongoing implementation of this act. The Department of State Treasurer shall consult with other departments as needed.

History

(2015-203, ss. 1, 2; 2016-94, ss. 12H.2(a), (b); 2017-129, s. 11; 2019-81, s. 15(a).)

Editor's Note. - Session Laws 2015-203, s. 1, enacted this section as G.S. 147-86.53; it was recodified as G.S. 147-86.73 at the direction of the Revisor of Statutes.

Session Laws 2015-203, s. 2 was codified as subsection (i) of this section at the direction of the Revisor of Statutes.

Effect of Amendments. - Session Laws 2016-94, s. 12H.2(a), (b), effective July 1, 2016, added subsection (g1) and repealed former subsection (g), also pertaining to notice for designated beneficiary receiving Medicaid.

Session Laws 2017-129, s. 11, effective July 20, 2017, substituted "application package" for "application form" in subsection (g1).

Session Laws 2019-81, s. 15(a), effective July 1, 2019, substituted "Division of Health Benefits" for "Division of Medical Assistance" in subsection (f).

§§ 147-86.74 through 147-86.79: Reserved for future codification purposes.

§ 147-86.80. Definitions.

The following definitions apply in this Article:

1. Boycott Israel or boycott of Israel. - Engaging in refusals to deal, terminating business activities, or taking actions that are intended to penalize, inflict economic harm, or otherwise limit commercial relations specifically with Israel, or persons or entities doing business in Israel or in Israeli-controlled territories. This term does not apply to decisions made for ordinary business purposes or for actions with an economic impact of less than twenty million dollars ($20,000,000) in a 12-month period.
2. Company. - Any sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries, parent companies, or affiliates of those entities or business associations.
3. Investment. - This term has the same meaning as G.S. 147-86.57(3).
4. Restricted company. - A company that appears on the list of companies that are engaged in a boycott of Israel developed by the State Treasurer under G.S. 147-86.81(a)(1).
5. State agency. - Any board, commission, department, executive department, officer, institution, and any political subdivision of the State.

History

(2017-193, s. 1.1.)

Editor's Note. - Session Laws 2017-193 provides in its preamble:

"Whereas, boycotts and related tactics have become a tool of economic warfare that threaten the sovereignty and security of key allies and trade partners of the United States; and

"Whereas, the State of Israel is the most prominent target of such boycott activity, which began with, but has not been limited to, the Arab League Boycott adopted in 1945, even before Israel's declaration of independence as the reestablished national state of the Jewish people; and

"Whereas, companies that refuse to deal with United States trade partners such as Israel, or entities that do business with or in such countries, make discriminatory decisions on the basis of national origin that impair those companies' commercial soundness; and

"Whereas, it is the public policy of the United States, as enshrined in several federal acts, to oppose boycotts against Israel, and Congress has concluded as a matter of national trade policy that cooperation with Israel materially benefits United States companies and improves American competitiveness; and

"Whereas, Israel in particular is known for its dynamic and innovative approach in many business sectors, and, therefore, a company's decision to discriminate against Israel, Israeli entities, or entities that do business with or in Israel is an unsound business practice making such a company an unduly risky contracting partner or vehicle for investment; Now, therefore,"

Session Laws 2017-193, s. 1.2.(a), provides: "Pursuant to G.S. 147-69.3(g), the State Treasurer is authorized to retain the services of consultants, professional individuals, analysts, data collection firms, or other persons possessing specialized skills or knowledge necessary for the proper implementation and administration of the requirements of this act."

Legal Periodicals. - For article, "Boycotting the Boycotters: Turnabout is Fair Play Under the Commerce Clause and the Unconstitutional Conditions Doctrine," see 40 Campbell L. Rev. 29 (2018).

§ 147-86.81. Prohibitions on State investment.

1. No more than 30 days after October 1, 2017, the State Treasurer shall adopt a policy prohibiting the North Carolina Retirement Systems or the Department of State Treasurer from investing in any company engaged in a boycott of Israel. At a minimum, the policy shall provide for the following:
   1. List of restricted companies. - Within 120 days of adoption of the policy, the State Treasurer shall develop and make publicly available a list of companies it determines to be engaged in a boycott of Israel. In the development of this list, the State Treasurer shall use any other state lists of restricted companies pursuant to similar laws and any federal information or guidance on companies that boycott Israel and any other credible information provided by nonprofit organizations, research firms, and governmental entities, and generally publicly available information. The State Treasurer shall make every effort to avoid erroneously including a company on the list. Before finalizing an initial or updated list, the State Treasurer must do all of the following before a company is included on the list:
      1. Provide 90 days' written notice of the State Treasurer's intent to include the company on the list. The notice shall inform the company that inclusion on the list would make the company ineligible for State investment, may result in the company becoming subject to divestment by the North Carolina Retirement Systems, and may affect the company's ability to conduct business with the State and its subdivisions. The notice shall specify that the company may be removed from the list if the company ceases its engagement in a boycott of Israel.
      2. The State Treasurer shall provide a company with an opportunity to comment in writing that the company is not engaged in a boycott of Israel or has ceased its boycott of Israel. If the company demonstrates to the State Treasurer that the company has not been engaged in a boycott of Israel, the company shall not be placed on the list. If a company had been engaged in a boycott of Israel but has ceased the boycott, it must submit a written certification to the State Treasurer that the company will not reengage in a boycott of Israel for the duration of any business with the State. The State Treasurer shall keep all written certifications from restricted and previously restricted companies.
   2. Identification of investments. - Upon completion of the initial list of restricted companies created pursuant to subdivision (1) of this subsection, the State Treasurer shall identify any restricted companies in which the North Carolina Retirement Systems has investments.
   3. Review of restricted companies list. - The State Treasurer shall review the list of restricted companies created pursuant to subdivision (1) of this subsection on an annual basis. This updated list shall be made publicly available and any updates shall be distributed to the North Carolina Retirement Systems.
   4. Investments prohibited. - Neither the North Carolina Retirement Systems nor the State Treasurer may invest funds with a company that is identified on a list created pursuant to subdivision (1) of this section as a company engaging in restricted investment activities.
   5. Existing investments. - Any existing investment with a company that is identified on a list created pursuant to subdivision (1) of this section as a company engaging in restricted activities must be divested within 180 days of the adoption of the list.
2. Nothing in the policy or in this Article shall require the North Carolina Retirement Systems or the State Treasurer to take action unless it is determined by the State Treasurer, in good faith, that the action is consistent with the fiduciary responsibilities of the Retirement Systems and the State Treasurer.

History

(2017-193, s. 1.1.)

§ 147-86.82. Restrictions on contracts with the State or subdivisions of the State.

1. A company that is identified as a restricted company is ineligible to contract with the State or any political subdivision of the State.
2. Any contract entered into with a company that is identified as a restricted company at the time of contract is void ab initio.
3. Upon receiving information that a company that was not identified as a restricted company at the time of contract has later been identified as a restricted company, the State agency shall review the information and offer the company an opportunity to respond. If the company fails to demonstrate that the company should not have been identified as a restricted company within 90 days after notification by the State agency, then the State agency shall take action as may be appropriate and provided for by law, rule, or contract.
4. Contracts in existence on October 1, 2017, with restricted companies shall be allowed to expire in accordance with the terms of the contract.

History

(2017-193, s. 1.1.)

§ 147-86.83. Exceptions.

G.S. 147-86.82 shall not apply to contracts valued at one thousand dollars ($1,000) or less.

History

(2017-193, s. 1.1.)

§ 147-86.84. Reporting.

The State Treasurer shall report to the Joint Legislative Commission on Governmental Operations annually by October 1 on information regarding investments sold, redeemed, divested, or withdrawn in compliance with this Article.

History

(2017-193, s. 1.1.)

§ 147-87. Secretary of Revenue; appointment; salary.

A Secretary of Revenue shall be appointed by the Governor on January 1, 1933, and quadrennially thereafter. The term of office of the Secretary shall be four years and until his successor is appointed and qualified. His salary shall be fixed by the General Assembly in the Current Operations Appropriations Act.

History

(1921, c. 40, ss. 2, 6; 1929, c. 232; 1973, c. 476, s. 193; 1983, c. 717, s. 90; 1983 (Reg. Sess., 1984), c. 1034, s. 164.)

Cross References. - As to the Department of Revenue, see G.S. 143B-217 et seq.

§ 147-88: Repealed by Session Laws 1991, c. 10, s. 3.

Cross References. - As to preparation of reports concerning taxes by the Secretary of Revenue, see now G.S. 105-256.

§ 147-89. To prosecute cases removed to federal courts.

It shall be the duty of the district attorneys of this State, in whose jurisdiction the circuit and district courts of the United States are held, having first obtained the permission of the judges of said courts, to prosecute, or assist in the prosecution of, all criminal cases in said courts where the defendants are charged with violations of the laws of this State, and have moved their cases from the State to the federal courts under the provisions of the various acts of Congress on such subjects.

History

(1874-5, c. 164, s. 1; Code, s. 1239; Rev., s. 5381; C.S., s. 7696; 1973, c. 47, s. 2.)

§ 147-90. Investigations of uses of deadly force.

In every instance in which a private citizen is killed as a result of the use of a firearm by a law enforcement officer in the line of duty, the district attorney in the prosecutorial district in which the death occurred shall, upon the request of the surviving spouse or next of kin of the private citizen within 180 days of the death, request the State Bureau of Investigation to conduct an investigation into the incident. For purposes of this section, the term "next of kin" includes only the child, father, mother, sister, or brother of the private citizen.

Statements prepared by or on behalf of a district attorney pursuant to this section are not public records as defined by G.S. 132-1 and may be released by the district attorney only as provided by G.S. 132-1.4 or other applicable law.

History

(2007-129, s. 1.)