North Carolina SB 363: Old Town Beaufort Funds.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 363

Short Title: DST Technical Corrections/Admin. Changes 2025.-AB (Public)
Sponsors: Senators Alexander, Ford, and Hanig (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 24, 2025
*S363-v-1*
A BILL TO BE ENTITLED 1
AN ACT MAKING TECHNICAL CORRECTIONS AND ADMINISTRATIVE CHANGES 2
TO THE LAWS GOVERNING AND RELATED TO THE DEPARTMENT OF STATE 3
TREASURER. 4
The General Assembly of North Carolina enacts: 5
6
PART I. EXTEND THE PROVISIONAL ENTRY PERIOD OF CHARTER SCHOOLS 7
IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM 8
SECTION 1.1. G.S. 135-5.3 reads as rewritten: 9
"§ 135-5.3. Optional participation for charter schools operated by private nonprofit 10
corporations or municipalities. 11
... 12
(b3) A charter school seeking to become a participating employer in the Retirement 13
System prior to the end of the second year of operation shall be granted provisional entry into the 14
Retirement System for one year. In the event the employee or employer contributions required 15
under G.S. 135-8(f) are not received by the date set by the Board of Trustees, the Board of 16
Trustees may revoke the charter school's provisional entry into the Retirement System. The 17
Board must notify a charter school in writing not less than 90 days prior to revoking a charter 18
school's provisional entry into the Retirement System. One year after the charter school was 19
granted After the charter school's initial year of provisional entry into the Retirement System, the 20
charter school shall undergo an actuarial and financial review as required by the Board of 21
Trustees.Trustees may extend the charter school's provisional entry by up to two additional years 22
or the charter school may apply to become a participating employer in the Retirement System. If 23
the Board of Trustees extends the charter school's provisional entry under this subsection, then 24
the charter school may apply to become a participating employer in the Retirement System at 25
any time during the extended period of provisional entry. 26
(b4) A charter school seeking to applying to become a participating employer in the 27
Retirement System after the end of the initial year of operation but before the end of the second 28
year of operation may period, or during the extended period, of provisional entry shall undergo 29
an actuarial review and a financial review as required by the Board of Trustees prior to entry into 30
the Retirement System. A charter school seeking to become a participating employer in the 31
Retirement System after the end of the second year of operation shall undergo an actuarial and 32
financial review as required by the Board of Trustees prior to entry into the Retirement System.a 33
decision on the application. 34
... 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 363-First Edition
(b6) The financial review required under this section will be based on financial statements 1
and independent audit reports or functionally equivalent reports submitted to the Board of 2
Trustees by the charter school. Any charter school that is unable to provide this required 3
information shall not be granted entry into the Retirement System. 4
...." 5
SECTION 1.2. This Part applies to any charter schools that seek to become a 6
participating employer in the Teachers' and State Employees' Retirement System, or are in the 7
initial period of provisional entry into the Retirement System, on or after the date that this act 8
becomes law. 9
10
PART II. REQUIRE THE BOARD OF TRUSTEES RATHER THAN THE STATE 11
TREASURER TO DETERMINE THE REVERSAL OF BENEFITS FORFEITED DUE 12
TO FELONIOUS CONDUCT UNDER THE TEACHERS' AND STATE EMPLOYEES' 13
RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL RETIREMENT SYSTEM, 14
THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE 15
LEGISLATIVE RETIREMENT SYSTEM 16
SECTION 2.1.(a) G.S. 135-18.10A(c) reads as rewritten: 17
"(c) If a member or former member whose benefits under the Retirement System were 18
forfeited under this section, except for the return of member contributions plus interest, 19
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 20
aside for any reason, then the member or former member may seek a reversal of the benefit 21
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 22
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 23
benefits will be restored upon repayment of all accumulated contributions plus interest. 24
Repayment of all accumulated contributions that have been received by the individual under the 25
forfeiture provisions of this section must be made in a total lump-sum payment with interest 26
compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 27
the year of forfeiture to the year of repayment. An indi