H.B. 223
GENERAL ASSEMBLY OF NORTH CAROLINA
Feb 28, 2023
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40109-LR-56B
Short Title: OSHR/Various SHRA Changes. (Public)
Sponsors: Representative Cleveland.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT MAKING VARIOUS CHANGES TO THE STATE HUMAN RESOURCES ACT
3 AND RELATED LAW.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. G.S. 126-14.3 reads as rewritten:
6 "§ 126-14.3. Open and fair competition.
7 The State Human Resources Commission shall adopt rules or policies to:
8 …
9 (3) Require that a closing date shall be posted for each job opening, unless an
10 exception for critical classifications has been approved by the State Human
11 Resources Commission.Commission or as a special exception through the
12 Office of State Human Resources.
13 …
14 (9) Allow an individual the option of having the individual's application
15 considered for future job postings if the individual has been identified as a
16 qualified applicant within the same or comparable classification."
17 SECTION 2. G.S. 126-24 reads as rewritten:
18 "§ 126-24. Confidential information in personnel files; access to such information.
19 All other information contained in a personnel file is confidential and shall not be open for
20 inspection and examination except to the following persons:
21 (1) The employee, applicant for employment, former employee, or his properly
22 authorized agent, who may examine his own personnel file in its entirety
23 except for (i) letters of reference solicited prior to employment, or (ii)
24 information concerning a medical disability, mental or physical, that a prudent
25 physician would not divulge to a patient. An employee's medical record may
26 be disclosed to a licensed physician designated in writing by the
27 employee;employee.
28 (2) The supervisor of the employee;employee.
29 (2a) A potential State or local government supervisor, during the interview
30 process, only with regard to performance management documents;documents
31 or to prevent application fraud.
32 (3) Members of the General Assembly who may inspect and examine personnel
33 records under the authority of G.S. 120-19;G.S. 120-19.
34 (4) A party by authority of a proper court order may inspect and examine a
35 particular confidential portion of a State employee's personnel file; andfile.
*DRH40109-LR-56B*
 General Assembly Of North Carolina Session 2023
1 (5) An official of an agency of the federal government, State government or any
2 political subdivision thereof. Such an official may inspect any personnel
3 records when such inspection is deemed by the department head of the
4 employee whose record is to be inspected or, in the case of an applicant for
5 employment or a former employee, by the department head of the agency in
6 which the record is maintained as necessary and essential to the pursuance of
7 a proper function of said agency; provided, however, that such information
8 shall not be divulged for purposes of assisting in a criminal prosecution, nor
9 for purposes of assisting in a tax investigation.
10 Notwithstanding any other provision of this Chapter, any department head may, in his
11 discretion, inform any person or corporation of any promotion, demotion, suspension,
12 reinstatement, transfer, separation, dismissal, employment or nonemployment of any applicant,
13 employee or former employee employed by or assigned to his department or whose personnel
14 file is maintained in his department and the reasons therefor and may allow the personnel file of
15 such person or any portion thereof to be inspected and examined by any person or corporation
16 when such department head shall determine that the release of such information or the inspection
17 and examination of such file or portion thereof is essential to maintaining the integrity of such
18 department or to maintaining the level or quality of services provided by such department;
19 provided that prior to releasing such information or making such file or portion thereof available
20 as provided herein, such department head shall prepare a memorandum setting forth the
21 circumstances which the department head deems to require such disclosure and the information
22 to be disclosed. The memorandum shall be retained in the files of said department head and shall
23 be a public record."
24 SECTION 3. G.S. 126-10 reads as rewritten:
25 "§ 126-10. Personnel services to local governmental units.
26 (a) The State Human Resources Commission may make the services and facilities of the
27 Office of State Human Resources available upon request to the political subdivisions of the State.
28 The State Human Resources Commission may establish reasonable charges for the service and
29 facilities so provided, and all funds so derived shall be deposited in the State treasury to the credit
30 of the general fund.
31 (b) Notwithstanding G.S. 126-22, 126-24, 153A-98, and 160A-168, when a local entity
32 indicates that it will permanently appoint a person who does not meet the class specification's
33 minimum qualifications for a position subject to the State Human Resources Act (except for
34 trainee and work-against appointments), the Office of State Human Resources may contact any
35 relevant members of the board supervising that local entity, the county manager and
36 commissioners, and the Department of Health and Human Services. The message may identify
37 the particular qualifications that the proposed appointee would need to meet to have the minimum
38 qualifications of the class specification.
39 (c) Notwithstanding G.S. 126-22, 126-24, 153A-98, and 160A-168, when a local entity
40 requests that the Office of State Human Resources make the final determination as to whether
41 the employee or applicant meets the minimum qualifications, the Office of State Human
42 Resources may share the relevant portions of the personnel file of a specific employee or
43 applicant with the Deputy Director of the Public Health or Social Services Division of the
44 Department of Health and Human Services (or similar State departmental staff) to assist in
45 determining qualification status."
46 SECTION 4.(a) G.S. 95-47.6 reads as rewritten:
47 "§ 95-47.6. Prohibited acts.
48 A private personnel service shall not engage in any of the following activities or conduct:
49 …
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1 (13) Impose or attempt to collect any fee that is prohibited by G.S. 126-18 from
2 the State of North Carolina, or any of its agencies, for aiding or assisting any
3 person in obtaining employment with the State of North Carolina."
4 SECTION 4.(b) G.S. 126-18 reads as rewritten:
5 "§ 126-18. Compensation for assisting person in obtaining State employment barred;
6 exception.
7 It shall be unlawful for any person, firm or corporation to collect, accept or receive any
8 compensation, consideration or thing of value for obtaining on behalf of any other person, or
9 aiding or assisting any other person in obtaining employment with the State of North Carolina;
10 provided, however, any person, firm, or corporation that is duly licensed and supervised by the
11 North Carolina Department of Labor as a private employment service acting in the normal course
12 of business, personnel service pursuant to Article 5A of Chapter 95 of the General Statutes, may
13 collect such regular and customary fees for services rendered pursuant to a written contract when
14 such fees are paid by someone other than the State of North Carolina; however, any person, firm,
15 or corporation collecting fees for this service must have been licensed by the North Carolina
16 Department of Labor as a private personnel service pursuant to Article 5A of Chapter 95 of the
17 General Statutes for a period of not less than one year.
18 Any person, firm or corporation collecting fees for this service must make a monthly report
19 to the Department of Labor listing the name of the person, firm or corporation collecting fees and
20 the person for whom a job was found, the nature and purpose of the job obtained, and the fee
21 collected by the person, firm or corporation collecting the fee. retain documents as required by
22 G.S. 95-47.5. Violation of this section shall constitute a Class 1 misdemeanor."
23 SECTION 5. This act is effective when it becomes law.
DRH40109-LR-56B Page 3


Statutes affected:
Filed: 126-14.3, 126-24, 126-10, 95-47.6, 126-18
Edition 1: 126-14.3, 126-24, 126-10, 95-47.6, 126-18
Edition 2: 126-14.3, 126-24, 126-10, 95-47.6, 126-18, 96-29, 126-4, 126-34.02, 126-30
Edition 3: 126-14.3, 126-24, 126-10, 95-47.6, 126-18, 96-29, 126-4, 126-34.02, 126-30
Edition 4: 126-14.3, 126-24, 126-10, 95-47.6, 126-18, 96-29, 126-4, 126-34.02, 126-30, 126-6.3
Edition 5: 126-14.3, 126-24, 126-10, 96-29, 126-4, 126-34.02, 126-30, 126-6.3
Ratified: 126-14.3, 126-24, 126-10, 96-29, 126-4, 126-34.02, 126-30, 126-6.3
SL 2024-23: 126-14.3, 126-24, 126-10, 96-29, 126-4, 126-34.02, 126-30, 126-6.3