H.B. 366
GENERAL ASSEMBLY OF NORTH CAROLINA
Mar 23, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH30183-BR-13
Short Title: Regulatory Reform Act of 2021. (Public)
Sponsors: Representative Yarborough.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO PROVIDE FURTHER REGULATORY RELIEF TO THE CITIZENS OF NORTH
3 CAROLINA.
4 The General Assembly of North Carolina enacts:
5
6 INCREASE LIMITS ON PUBLIC EMPLOYEES BENEFITING FROM PUBLIC
7 CONTRACTS
8 SECTION 1.(a) G.S. 14-234 reads as rewritten:
9 "§ 14-234. Public officers or employees benefiting from public contracts; exceptions.
10 …
11 (d1) Subdivision (a)(1) of this section does not apply to (i) any elected official or person
12 appointed to fill an elective office of a village, town, or city having a population of no more than
13 15,000 according to the most recent official federal census, (ii) any elected official or person
14 appointed to fill an elective office of a county within which there is located no village, town, or
15 city with a population of more than 15,000 according to the most recent official federal census,
16 (iii) any elected official or person appointed to fill an elective office on a city board of education
17 in a city having a population of no more than 15,000 according to the most recent official federal
18 census, (iv) any elected official or person appointed to fill an elective office as a member of a
19 county board of education in a county within which there is located no village, town or city with
20 a population of more than 15,000 according to the most recent official federal census, (v) any
21 physician, pharmacist, dentist, optometrist, veterinarian, or nurse appointed to a county social
22 services board, local health board, or area mental health, developmental disabilities, and
23 substance abuse board serving one or more counties within which there is located no village,
24 town, or city with a population of more than 15,000 according to the most recent official federal
25 census, and (vi) any member of the board of directors of a public hospital if all of the following
26 apply:
27 (1) The undertaking or contract or series of undertakings or contracts between the
28 village, town, city, county, county social services board, county or city board
29 of education, local health board or area mental health, developmental
30 disabilities, and substance abuse board, or public hospital and one of its
31 officials is approved by specific resolution of the governing body adopted in
32 an open and public meeting, and recorded in its minutes and the amount does
33 not exceed twenty thousand dollars ($20,000) for medically related services
34 and forty thousand dollars ($40,000) sixty thousand dollars ($60,000) for
35 other goods or services within a 12-month period.
*DRH30183-BR-13*
 General Assembly Of North Carolina Session 2021
1 (2) The official entering into the contract with the unit or agency does not
2 participate in any way or vote.
3 (3) The total annual amount of contracts with each official, shall be specifically
4 noted in the audited annual financial statement of the village, town, city, or
5 county.
6 (4) The governing board of any village, town, city, county, county social services
7 board, county or city board of education, local health board, area mental
8 health, developmental disabilities, and substance abuse board, or public
9 hospital which contracts with any of the officials of their governmental unit
10 shall post in a conspicuous place in its village, town, or city hall, or
11 courthouse, as the case may be, a list of all such officials with whom such
12 contracts have been made, briefly describing the subject matter of the
13 undertakings or contracts and showing their total amounts; this list shall cover
14 the preceding 12 months and shall be brought up-to-date at least quarterly.
15 …."
16 SECTION 1.(b) This section is effective when it becomes law and applies to
17 contracts executed on or after that date.
18
19 NC PRE-K SCHOOL OPTIONS
20 SECTION 2.(a) The Division of Childhood Development and Early Education of
21 the Department of Health and Human Services shall post the following information on its
22 website:
23 (1) The educational opportunities for kindergarten offered by local school
24 administrative units.
25 (2) The educational opportunities for kindergarten offered by charter schools.
26 (3) Scholarships for enrollment in nonpublic schools provided pursuant to Part
27 2A of Article 39 of Chapter 115C of the General Statutes, or any successor
28 program.
29 This information shall be indexed or searchable by county, and the Division shall
30 update the information on June 1 each year.
31 Facilities participating in the NC Pre-K program shall provide to all families the
32 address of the website where the information can be found and a brief description of the
33 information available. Upon request, a facility participating in the NC Pre-K program must
34 furnish to a family a list of the following educational opportunities located in the same county as
35 the NC Pre-K facility, or, if specified, any other county:
36 (1) The educational opportunities for kindergarten offered by local school
37 administrative units.
38 (2) The educational opportunities for kindergarten offered by charter schools.
39 (3) Scholarships for enrollment in nonpublic schools provided pursuant to Part
40 2A of Article 39 of Chapter 115C of the General Statutes, or any successor
41 program.
42 SECTION 2.(b) This section becomes effective January 1, 2022.
43
44 STUDY EXPRESS PERMITTING EXPANSION
45 SECTION 3. The Department of Environmental Quality shall study and report on
46 additional positions and funding needed as well as any changes in State or federal laws and
47 regulations necessary to expand the Department's express permitting programs to include
48 additional types of permits typically required for job creating and real estate development or
49 redevelopment activities. Additional permits considered in the study shall include, at a minimum,
50 permits for facilities not discharging to the surface waters of the State under Article 21 of Chapter
51 143 of the General Statutes and permits to apply petroleum-contaminated soil to land authorized
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1 under G.S. 143-215.1. The Department shall provide its report and recommendations to the
2 Environmental Review Commission, the Joint Legislative Oversight Committee on Agriculture
3 and Natural and Economic Resources, and the Fiscal Research Division no later than March 1,
4 2022.
5
6 WASTEWATER RESERVE PRIORITY
7 SECTION 4.(a) G.S. 159G-23 reads as rewritten:
8 "§ 159G-23. Priority consideration for loan or grant from Wastewater Reserve or Drinking
9 Water Reserve.
10 The considerations for priority in this section apply to a loan or grant from the Wastewater
11 Reserve or the Drinking Water Reserve. The Division of Water Infrastructure must consider the
12 following items when evaluating applications:
13 …
14 (2) Effect on impaired waters. – A project that improves designated impaired
15 waters of the State.State, with greater priority given to projects that improve
16 designated impaired waters of the State that serve as a public water supply for
17 a large public water system. For purposes of this subdivision, a large public
18 water system is one serving more than 175,000 service connections.
19 …
20 (11) State water supply plan. Improve regional coordination. – A project that
21 addresses a potential conflict between local plans or implements a measure in
22 which local water supply plans could be better coordinated, as identified in
23 the State water supply plan pursuant to G.S. 143-355(m).coordinated.
24 …
25 (14) Disproportionate burden to protect water supply of higher-wealth neighboring
26 local government unit. – Wastewater system improvements made by a local
27 government unit in order to protect or preserve the water supply of a
28 neighboring local government unit that has a lower poverty rate, lower utility
29 bills, higher population growth, higher median household incomes, and lower
30 unemployment."
31 SECTION 4.(b) This section becomes effective July 1, 2021, and applies to
32 applications for loans or grants from the Wastewater Reserve or the Drinking Water Reserve
33 received by the Division of Water Infrastructure on or after that date.
34
35 REVENUE LAWS STUDY
36 SECTION 5. The Department of Revenue shall provide to the Revenue Laws Study
37 Committee information related to the property taxation of outdoor advertising signs. The
38 information must include a review of the methods used to determine the fair market value of
39 outdoor advertising signs in North Carolina, whether the Billboard Structures Valuation Guide
40 published by the North Carolina Department of Revenue provides an accurate representation of
41 the base costs for outdoor advertising structures in North Carolina, whether the Department
42 should use data on actual costs attributed to structures constructed in North Carolina, the practices
43 in other states, and any other issues the Department deems relevant.
44 The Department shall provide the requested information to the Committee no later
45 than March 31, 2022.
46
47 MANUFACTURED HOMES INSTALLATION
48 SECTION 6.(a) G.S. 160D-910 is amended by adding a new subsection to read:
49 "(g) A city may require by ordinance that manufactured homes be installed in accordance
50 with the Set-Up and Installation Standards adopted by the Commissioner of Insurance; provided,
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 General Assembly Of North Carolina Session 2021
1 however, a city shall not require a masonry curtain wall or masonry skirting for manufactured
2 homes located on land leased to the homeowner."
3 SECTION 6.(b) This section becomes effective October 1, 2021.
4
5 DIVISION OF EMERGENCY MANAGEMENT STUDY
6 SECTION 7.(a) Study. – The Division of Emergency Management of the
7 Department of Public Safety shall study the needs of law enforcement, emergency medical and
8 emergency management personnel, and firefighters to improve access to or within the interstate
9 system of this State for the benefit of public safety. In conducting the study, the Division may
10 consult with the Department of Transportation, the Office of State Fire Marshal of the
11 Department of Insurance, the Office of Emergency Medical Services of the Department of Health
12 and Human Services, and any other State or local government organizations the Division
13 determines may be of assistance in the course of the study. In performing the study, the Division
14 shall, at a minimum, take the following steps:
15 (1) Consult with county fire marshal divisions, emergency management offices,
16 and emergency medical service divisions to determine potential sites of
17 interest for construction or improvement relevant to the study.
18 (2) Establish criteria to prioritize sites of interest for either construction or
19 improvement.
20 (3) Review applicable federal and State laws, codes, standards, and studies
21 relevant to the study.
22 (4) Review (i) existing Department of Transportation planning, design, and
23 construction standards for interchanges, median crossovers, and access points
24 and (ii) how those standards consider the needs of law enforcement,
25 emergency medical and emergency management personnel, and firefighters.
26 (5) Consider the feasibility of providing opportunities for stakeholder input
27 during the planning of future interstate improvements that focus on the needs
28 of law enforcement, emergency medical and emergency management
29 personnel, and firefighters.
30 (6) Examine any other matters the Division deems relevant in the course of the
31 study.
32 SECTION 7.(b) Report. – The Division shall report the findings and
33 recommendations, including any legislative proposals, to the Joint Legislative Oversight
34 Committee on Justice and Public Safety, the Joint Legislative Emergency Management Oversight
35 Committee, and the Joint Legislative Transportation Oversight Committee no later than March
36 1, 2022.
37
38 INSURANCE CANCELLATION PROOF OF MAILING
39 SECTION 8.(a) G.S. 58-41-15 reads as rewritten:
40 "§ 58-41-15. Certain policy cancellations prohibited.
41 …
42 (b) Any cancellation permitted by subsection (a) of this section is not effective unless
43 written notice of cancellation has been delivered or mailed to the insured, not less than 15 days
44 before the proposed effective date of cancellation. The notice must be given or mailed to the
45 insured, and any designated mortgagee or loss payee at their addresses shown in the policy or, if
46 not indicated in the policy, at their last known addresses. The notice must state the precise reason
47 for cancellation. Proof of mailing is sufficient proof of notice. Failure to send this notice to any
48 designated mortgagee or loss payee invalidates the cancellation only as to the mortgagee's or loss
49 payee's interest.
50 …
51 (f) For purposes of this section, proof of mailing is sufficient proof of notice."
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1 SECTION 8.(b) This section becomes effective October 1, 2021, and applies to
2 policies issued, amended, or renewed on or after that date.
3
4 CLARIFICATION AND REAFFIRMATION OF RECOVERY OF OUT-OF-POCKET
5 EXPENSES AND LITIGATION COSTS IN SUMMARY EJECTMENTS
6 SECTION 9.(a) G.S. 42-46 reads as rewritten:
7 "§ 42-46. Authorized late fees and eviction fees.fees, costs, and expenses.
8 (a) Late Fee. – In all residential rental agreements in which a definite time for the
9 payment of the rent is fixed, the parties may agree to a late fee not inconsistent with the provisions
10 of this subsection, to be chargeable only if any rental payment is five days or more late. If the
11 rent:
12 (1) Is due in monthly installments, a landlord may charge a late fee not to exceed
13 fifteen dollars ($15.00) or five percent (5%) of the monthly rent, whichever is
14 greater.
15 (2) Is due in weekly installments, a landlord may charge a late fee not to exceed
16 four dollars ($4.00) or five percent (5%) of the weekly rent, whichever is
17 greater.
18 (3) Repealed by Session Laws 2009-279, s. 4, effective October 1, 2009, and
19 applicable to leases entered into on or after that date.
20 (b) A late fee under subsection (a) of this section may be imposed only one time for each
21 late rental payment. A late fee for a specific late rental payment may not be deducted from a
22 subsequent rental payment so as to cause the subsequent rental payment to be in default.
23 (c) Repealed by Session Laws 2009-279, s. 4, effective October 1, 2009, and applicable
24 to leases entered into on or after that date.
25 (d) A lessor shall not charge a late fee to a lessee pursuant to subsection (a) of this section
26 because of the lessee's failure to pay for water or sewer services provided pursuant to
27 G.S. 62-110(g).
28 (e) Administrative Complaint-Filing Fee. – Pursuant to a written lease, a landlord may
29 charge a an administrative complaint-filing fee not to exceed fifteen dollars ($15.00) or five
30 percent (5%) of the monthly rent, whichever is greater, only if the tenant was in default of the
31 lease, the landlord f