CHARLOTTE, N.C. — Believe it or not, the new year is almost here -- and with it comes new laws.
There are several laws, or portions of laws, going into effect in North Carolina on Jan. 1, 2024. Let's take a closer look.
Limited provisional license modification
Senate Bill 157 means major changes are coming for anyone holding a learner's permit in North Carolina. Starting Jan. 1, most new drivers will add an extra few months of learning and supervised driving before they get a full driver's license.
For the last 25 years, the North Carolina Department of Motor Vehicles has allowed drivers to get their license after having a learner's permit for 12 months. During the pandemic, it went to six months and was moved back to a full year in 2023.
The new law splits the difference. It requires new drivers to have a learner's permit for nine months. Some driving instructors feel that's inadequate, saying new drivers would be better suited to have at least 12 months of supervised driving before going on their own.
PREVIOUS COVERAGE: Changes coming for NC learner's permit process
Under Senate Bill 157, teen drivers will be eligible for a limited learner's permit at 15. After having their Level 1 permit for 12 months, they will be eligible for a Level 2 limited provisional license. After holding that license for six months, eligible drivers will be awarded a full provisional license. To reach Level 3 status, drivers must have no tickets in the previous six months and must have a driving eligibility certificate.
Reimburse late audit costs with sales tax revenue
Senate Bill 299 will give certain North Carolina counties and municipalities 30 days notice to comply with local government commission audits nine months or more after their audit is late. If the county or municipality fails to file the audit within three months of being given notice, an undisclosed amount of their sales tax revenue will be withheld by the state, up to 150% of the cost of the audit. State leaders say the bill is a way to hold local governments accountable and isn't intended to be a fine or penalty.
North Carolina Gov. Roy Cooper vetoed the bill in June, saying it would punish residents in the state's smallest communities that rely on sales tax revenue. Cooper called the legislation "well intentioned." The General Assembly voted to override Cooper's veto this summer.
Department of Health and Human Services revisions
House Bill 190 concerns modifications to laws governing the Department of Health and Human Services. The bill was signed into law by Cooper in June. The changes that will take place in January 2024 pertain to prescriptions and labeling.
Starting Jan. 1, 2024, unless exempted, practitioners must electronically prescribe all Schedule V controlled substances. The requirement for electronic prescriptions does not apply to a product sold at retail without a prescription by a pharmacist.
This requirement also does not apply to prescriptions for controlled substances issued by the following:
- A non-pharmacist practitioner who dispenses directly to a user
- A practitioner who orders that a controlled substance be given in a hospital, nursing home, hospice, facility, outpatient dialysis facility, or residential care facility
- A practitioner who is having temporary technical or electronic failure or other outside circumstances that prevent electronic transmission
- A practitioner who provides a prescription to be given by a pharmacy on federal property
- A licensed veterinarian
Dispensers are not required to verify that a practitioner falls in an exemption category.
On-site wastewater rules implementation
House Bill 627 was signed by Cooper on July 7 and is meant to allow the North Carolina Commission for Public Health to implement its rules for on-site wastewater. All of these rules to be implemented are detailed throughout the bill.
In Section 1(c), it's made a rule that wastewater strength shall not be deemed increased unless the facility is a commercial facility or becomes a commercial facility. Section 2(c) defines an "accessory dwelling unit" as a secondary dwelling unit established in conjunction with and clearly subordinate to a primary dwelling unit, whether a part of the same structure as the primary dwelling unit or a detached dwelling unit on the same lot. In Section 3(c), it's made a rule that applications for Improvement Permit and Construction Authorizations need to be submitted by the applicant to the local health department before construction, location, or relocation.
Section 6(c) enables owners to choose to use a professional engineer following G.S. 130A-336.1 or an Authorized On-Site Wastewater Evaluator under G.S. 130A-336.2 to obtain a wastewater system approval. The minimum design daily flow for a single-bedroom dwelling unit shall be 120 gallons per day per bedroom or 60 gallons per day per person when occupancy exceeds two persons per bedroom, whichever is greater, in accordance with Section 9(c).
Section 10(c) defines the maximum nitrogen concentration for domestic strength effluent as 100 mg/L of Total Kjeldahl Nitrogen. Section 11(c) says color value shall be determined based on a chroma 2 or less using the Munsell Soil Color Book.
Finally, Section 16(c) says sites for bed systems must have a soil texture of Group I, II, or III to a depth of 48 inches below the naturally occurring soil surface or to a depth of 12 inches below the infiltrative surface.
Unclaimed property division changes
House Bill 181 was signed by Cooper in July and concerns unclaimed property. Most of the bill went into law when it was signed, but a section regarding collection of personal property by affidavit fees goes into effect in the new year.
Under the new law, a $106 charge will be required for a qualifying personal property affidavit. The previous charge was $30.
However, fees may be waived if the collection amount is under $5,000. If after receiving the waiver an affiant collects assets that go over the $5,000 threshold, the waiver will be rescinded and the fees required.
Department of state treasurer technical corrections
House Bill 203, which was signed into law by Cooper on July 10, makes changes to laws regarding the retirement systems for teachers, state employees, and local governmental employees -- as well as other related statutes. These changes and corrections were based on recommendations from the Department of the State Treasurer.
The law specifically impacts teachers and state employees who retired on an early or service retirement allowance but are then reemployed or engaged in services by an employer that participates in the retirement system.
If this re-employment happens in the six months following their retirement, then the individual will be required to do whichever of the following has less financial impact on the individual: They can repay retirement benefits up to a determined effective date if the required six-month separation has been satisfied, or they can make a lump-sum payment equal to three times the compensation earned during the six months following retirement. If they can't make that lump-sum payment, they can choose to have their monthly retirement benefit withheld until the retirement system recovers three times the amount of compensation earned during those six months.
For local governmental employees in particular paying a lump sum, the allowance should be expected to commence at the age when the person could retire on an unreduced retirement allowance, and annual postretirement allowance increases would be assumed as set by the relevant board of trustees.
The legislation also discuses how approved leaves of absence impact these individuals in regards to the retirement system. The Department of State Treasurer and the board of trustees of the Teachers' and State Employees' Retirement System will administer the provisions of this legislation in most instances.
Finally, the legislation requires that if the appraised value of any state lands involved in an exchange is $25,000 or more, the exchange must be made with consultation with the Joint Legislative Commission on Governmental Operations. The legislation lists some exceptions for the change, including if the state land is in the Camp Butner reservation.
Retirement administrative changes act of 2023
House Bill 201 makes administrative changes to laws that impact retirement systems for teachers, state employees, local governmental employees, legislative employees, and consolidated judicial employees. Additionally, this legislation impacts the disability income plan.
It was presented to Cooper on July 14 and was not signed or vetoed by Cooper in the allotted 10-day timespan, so it was declared a law without signature on July 25.
As part of the administrative changes for the Teachers’ and State Employees’ Retirement System, there will no longer be a requirement that payments be made to the surviving spouse of a retired member who is confirmed to have died Jan. 1, 2015 or after, if no beneficiary was designated. Instead, payments would be made to the deceased retiree's personal representative in those cases.
The legislation also makes the Retirement Systems Division of the Department of State Treasurer the deciding agency for disability decisions, instead of the Medical Board. Additionally, the legislation amends the starting date for 365-day extensions for short-term disability benefits to be the first day after the short-term disability period, if the individual applies within the given amount of time.
Changes to adoption law, notary rules, and guardianship rights
Senate Bill 615, which passed with Cooper's signature in September, will include several changes regarding adoption law, notaries, and guardianship rights in the state of North Carolina.
Adoption law changes
Starting Jan. 1, adults can be adopted by a former stepparent without any effect on the stepparent's relationship with the adult child's parent, even if the parent and stepparent are no longer married. Adult adoptions are typically done to formalize a relationship between the stepparent and stepchild, restore original legal relationships between adult adoptees and their biological families, or establish inheritance rights.
There are also some changes to what information can be redacted in adoption home studies, chiefly detailed information regarding prospective adoptive parents' finances, Social Security numbers, extended family members, and other detailed information. The new law also expands acknowledgment options for agency relinquishments for adoption.
New rules for notaries
Notaries in the state of North Carolina will also get some new rules come July 2024. Notaries will maintain a journal for any acts performed within their duties, including electronic notaries who perform services remotely. Electronic notaries must maintain an electronic journal and ensure nobody else can make entries in it.
What's new for guardians, definitions of competency
There are also some changes for guardians of an estate. Guardians must maintain annual inventories and accounts, under oath, in the office of the clerk of the property received or invested, including how and what is being received or invested. All accounts are due within 30 days after the close of the fiscal year as selected by the guardian and annually after.
Guardians will also see some changes in guardianship statutes. New for 2024 is a clarification about what does not define incompetent adults and children. An adult or emancipated minor who can handle their affairs and communicate important decisions about themselves, their family, or their family is not deemed an incompetent adult. Similarly, children who can make similar communications and decisions are deemed competent. In any case, both competent adults and competent children must be able to communicate such decisions by what's called a "less restrictive alternative".
The new law defines a less restrictive alternative as an arrangement that enables someone to manage their affairs or make key decisions, such as supported decision-making, technological assistance, the appointment of a representative payee, or the appointment of an agent by the person under a power of attorney arrangement. This alternative must restrict fewer rights for the person in question than a finding in court that the person is incompetent with the subsequent appointment of a guardian.
Petitioners who wish to challenge the assertion someone is competent will still need to file a petition but now must include a statement that says what alternatives were sought and why they don't work for the person they want to be deemed incompetent.
Guardians ad litem are also required to discuss with their respondents during an initial personal visit what that person's rights are, and present to a clerk of the court what the respondent's wishes are for all stages of adjudication. There are also new rules regarding costs for parties involved in guardianship adjudication.
Every respondent involved in incompetency adjudication must be given a notice of their rights. These rights include:
- The Right to Notice for petitions, hearings, and copies of the notices involved
- The Right to an Attorney, including a guardian ad litem
- The Right to Gather Evidence, including requiring witnesses to appear and asking for an evaluation about one's ability to make decisions
- Right to a Hearing before one can be deemed incompetent
- Right to a Jury to hear the case
- Right to a Closed Hearing if so desired
- Right to Present Evidence and Testimony
- Right to Call Witnesses and Question Witnesses
- Right to Express Wishes Regarding Rights
- Right to Express Wishes as to Who Serves as Guardian
- Right to Appeal
If a person is deemed incompetent, they have these rights as wards:
- Right to a Qualified, Responsible Guardian
- Right to Request Transfer to Another Count
- Right to Request Restoration of Competency
- Right to Request a Review or Modification of Guardianship
- Right to Vote
- Right to Request a Hearing in a Petition to Permit Sterilization
- Ability to Drive
- Additional rights dependent on one's capacity to exercise them
The changes to North Carolina's law on guardianship also clearly state that guardianship for adults should always be a last resort and only imposed after less restrictive alternatives are deemed insufficient to meet that person's needs. Regular status reports should also be filed by the guardian about a ward's welfare and conditions when appropriate. Guardians will also need to file notices of a ward's change of address within 30 days of a move, which should include the ward's old address, new address, and the date the move happened.
NC Health & Human Services Workforce Act - Audiology licensure and registration
Starting on Jan. 1, North Carolina will see some changes regarding who can provide hearing aids and the certification process of becoming an audiologist.
Section 12 of HB 125, which was signed into law by Cooper on Sept. 29, more clearly defines what makes a certified audiologist or speech pathologist. Anyone who wants to offer their services needs to be licensed by the State Board of Examiners for Speech and Language Pathologists and Audiologists (SLPA), except for registered nurses, licensed practical nurses, or other certified technicians trained to perform certain screening tests under the supervision of a physician or certified audiologist. To note, certification is not required for anyone selling hearing aids over the counter.
Anyone who wants to be a certified audiologist in the state of North Carolina must submit evidence that they've clocked at least 400 work hours of supervised and direct clinical experience (as verified by a clinic or program director) and have nine months of full-time professional experience with clinical work supervised by a state-licensed speech and language pathologist. Meanwhile, anyone who wishes to be a registered assistant to a pathologist or audiologist must now pay a registration fee to the state board to be renewed annually.
Application and examination fees for those who need to be licensed or registered are $30 each. The initial license fee and renewal fee are both $100. The temporary license fee is $40, while a delinquency fee is $25.
Amend Business Corporation Act/Business Opportunity Disclosures
Section 7 of Senate Bill 477, which was signed by Cooper on Sept. 29, specifically deals with the evidence needed to prove a business or consumer owes a debt to any entity. Right off the bat, Section 7 clearly defines what makes up credit card debt and what makes up itemized accounting regarding debt charge-offs.
Debtors will have more leeway in claiming actual damages done by collection agencies to them, which can range from making violent threats against debtors to claiming that not paying debt will lead to the debtor's arrest, as outlined in North Carolina's General Statutes. Starting Jan. 1, 2024, debtors won't need to prove actual damages to recover a civil penalty from the collection agency. The penalty ranges from $500 to $4,000 per violation.
Collection agencies also have to include certain documents when filing a complaint against a debtor. If the complaint doesn't meet the requirements, a debtor can motion to have it dismissed or the court can do so sua sponte (of its own accord).
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The changes also outline what a collection agency's claim regarding credit card debt has to include regarding authenticated business records, including information like the original account number and the date of last payment. Failure by a debt buyer to fulfill those requirements will see any motions for summary judgment or default judgment denied. Additionally, any judgments in favor of the debt buyer in this scenario would be void and subject to vacatur.
Various statutory changes
House Bill 8, which enacts Article 51, the Pornography Age Verification Enforcement Act (PAVE), was signed by Cooper in September.
Beginning Jan. 1, changes will be enacted to age verification requirements for the publication and distribution of materials that are harmful to minors.
Commercial entities that publish or distribute pornographic material from a website that contains over 33% of this material are required to verify the age of people attempting to access the material through the use of one of the following options:
- A commercially available database used by businesses or the government to verify age and identity
- Another reasonable method to verify age and identity
No third party or entity that is performing age verification for commercial entities can keep any information identifying individuals after verification is complete. The commercial entity or third party that is performing age verifications will be subject to civil action for violation of these requirements by any of the following:
- A parent/guardian whose minor was able to gain access to pornographic material
- Any person whose identity and age information was kept in violation of this section
Anyone who is allowed to start a civil action may be able to access the following:
- An injunction to urge continued violation
- Compensatory/punitive damages
- Reimbursement of all costs and fees associated with the civil suit investigation
This does not apply to legitimate news-gathering organizations. Finally, internet providers, search engines and cloud services providers will not be held responsible, since they are solely providing internet access and connections and are not involved in the creation of pornographic content that is harmful to minors.
Regulatory Reform Act of 2023
House Bill 600 changes state laws related to state and local governments, as well as agriculture, energy, natural resources and other various regulations. It was vetoed by Cooper before Republicans voted to override his rejection in mid-October.
Cooper's veto was accompanied by a statement from the governor saying the legislation is a "hodgepodge of bad provisions" that would result in dirtier water, discriminatory permitting and threats to the state's environment. According to NC Newsline, the bill started with a section that required publicly funded animal shelters to keep records of animal surrenders. By the summer, bill sponsors began to add new provisions that eliminated environmental protections, the agency reports.
One provision would allow poultry farms to bury dead animals without a permit from the state. Environmentalists say this could lead harm groundwater and extend to nearby creeks and streams. Another provision would limit the state's ability to prohibit toxic chemicals, possibly violating the federal Clean Water Act.
Another division is over the 75-mile extension of the Mountain Valley Pipeline. The bill will only give the Department of Environmental Quality (DEQ) 90 days to review the proposed extension of a natural gas pipeline into Rockingham and Alamance counties.
No partisan advantage in elections
Senate Bill 749 will restructure the North Carolina State Board of Elections by increasing the number of General Assembly members who are appointed from five to eight. These lawmakers will serve four-year terms and two members each will be appointed by the President Pro Tempore, House speaker, Senate minority leader and House minority leader. Any vacancies will be filled by the General Assembly.
This new law takes away the governor's power to appoint election board members to the state board and would give state boards an even number of Republicans and Democrats. Cooper vetoed the bill, but his decision was overridden by the General Assembly on Oct. 10.
The bill also downsizes the number of members for each of the state's 100 county boards of elections from five to four, with all members being appointed by the General Assembly. Opponents of the bill are concerned it will result in deadlocks over the state's early voting plans and could lead to major cuts in early voting poll locations statewide.
"The legislative takeover of state and local elections boards could doom our state’s elections to gridlock and severely limit early voting," Cooper said. "It also creates a grave risk that Republican legislators or courts would be empowered to change the results of an election if they don’t like the winner. That’s a serious threat to our democracy, particularly after the nation just saw a presidential candidate try to strongarm state officials into reversing his losing election result. Courts have already ruled the ideas in this bill unconstitutional, and voters overwhelmingly said no when the legislature tried to change the constitution."
Elections law changes
Parts of the sweeping election law changes that were passed by a veto override of Senate Bill 747 already went into effect on Dec. 1, 2023. Once the New Year begins, much of the rest of the law will take effect.
The North Carolina State Board of Elections (NCSBE) will now be required to preserve official election results documents for 22 months after an election has concluded. This includes voted ballots, election results tapes, and executed ballot applications. Additionally, the NCSBE will be prohibited from accepting private monetary donations or in-kind contributions for conducting elections or for providing temporary employment to individuals.
The new law also dictates that appointment as a precinct official or assistant will not require a background check, nor will anyone employed at an early voting location. However, a background check may be required if that employee performs certain functions outlined by the NCSBE.
Just like the state board, county election boards also will maintain election records for 22 months after the conclusion of an election. County election officials are also subject to the same restrictions against donations and in-kind contributions. However, county election boards can accept the following in-kind donations:
- Use of a voting site, if it's used for conducting elections
- Food or beverages for precinct officials and other election workers at a voting site or county office
- Ink pens and personal protection equipment to be used in an election
County commissioners are also discussed in the new law, with restrictions against private monetary donations and in-kind contributions now in place similar to those of the state board. However, commissioners can accept the in-kind donation or use of a voting site if said site is used for an election.
Starting in 2024, the election law changes more clearly define who can be a poll observer. The chair of each registered political party in the county can pick two registered voters in the county to serve as observers at each election site and up to 10 registered voters to observe and any voting place, so long as the party has a candidate on the ballot. The chair of each political party at the state level can also designate up to 100 registered voters across North Carolina to observe at any site where the party has a candidate on the ballot. Unaffiliated candidates or their campaign managers can designate two observers for each voting place the candidate appears on the ballot.
The list of ballot observers has to be submitted by noon the business day before each observer is scheduled to serve, and no more than three observers of the same party can be in the voting enclosure at the same time. While the observers can do some things while working, such as taking notes and moving about the voting enclosure, other actions are prohibited. For example, an observer can't take a photo or video of a marked ballot or engage in electioneering. Any phone calls also have to be handled outside of the voting area.
Same-day registrations during elections area also still possible. Any voter can do so by completing an application, provided they have proof of residence and a photo ID along. Documents that can be used for proof of residency should include the person's name and address, and include the following:
- A current utility bill
- A current bank statement
- A current paycheck
- A current government check
- Another current government document
- A current document from the institution that issued the photo ID the person presents
Two days after the election, the county will then need to verify the voter applicant's address for the vote to be counted. The vote will be counted unless the county elections board determines the applicant wasn't qualified.
Similarly, voter applicants who register by mail must similarly submit a copy of a photo ID and a copy of one of the above documents.
Democrats have lambasted the changes, claiming they suppress voters. Several voter rights groups filed federal lawsuits to challenge the state law. Republicans, however, claim the changes improve election integrity.
The law will also require elections officials to handle public education efforts about photo ID requirements for voting throughout 2024. Additionally, the state Department of Information Technology is expected to study the feasibility of replacing the statewide voting system and provide a report by March 1, 2024. A pilot program for signature verification software will also be launched for the 2024 primary election for mail-in absentee ballots, with the NCSBE required to pick 10 counties for the pilot and provide a final report by May 1, 2024.
Stop Addiction Fraud Ethics Act of 2023
House Bill 415 was signed into law by Cooper on Oct. 20. Its purpose is to establish the Stop Addiction Fraud Ethics (SAFE) Act of 2023, which makes it unlawful for addiction treatment providers, treatment facilities and recovery residences to advertise or market false information. It is also meant to amend the law regarding earwax removal.
The law makes it a requirement that the entities stated above must convey accurate and complete information about the methods and services they use and where they are provided, as well as identify the categories of treatment and levels of care described in the American Society of Addiction Medicine, Patient Placement Criteria. They must also provide the average duration of stay at residences and a summary of any financial relationships between the residence, provider site, or facility and any publisher of marketing or advertising.
The legislation also requires that entities that provide separately licensed outpatient substance use disorder services disclose the nature of those relationships. The services must be labeled and separated in advertising.
In regards to the earwax removal section, the law makes it illegal for audiologists to perform complex cerumen removal, particularly in instances where cerumen is impacted to the point that removal requires the use of anesthesia or micro-instrumentation.
Various changes to criminal and civil laws
Senate Bill 409 was signed by Cooper in November. Most of the bill, which deals with various crime definitions and punishments and operational definitions, went into law when it was signed. Sections 5 and 10 of the bill go into effect on Jan. 1.
Section 5 of the bill changes definitions relating to automatic license plate readers used by law enforcement agencies. The new definitions allow automatic license plate readers to be used for a "law enforcement purpose" and a missing or endangered persons case.
A law enforcement purpose, under this law, is defined as:
- Actions related to criminal investigations, arrests, prosecutions, post-conviction confinement, or supervision.
- Apprehending an individual with an outstanding felony warrant.
- Locating a missing or endangered person.
- Locating a lost or stolen vehicle.
Anyone who uses an automatic license plate reader in a way not allowed under the law will be charged with a misdemeanor.
Section 10 of the law divides the Department of Insurance from the Office of the State Fire Marshal. The two departments have previously been under the same commissioner.
Flashpoint is a weekly in-depth look at politics in Charlotte, North Carolina, South Carolina, and beyond with host Ben Thompson. Listen to the podcast weekly.
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