North Carolina HB 476: Department of State Treasurer Technical Corrections/Administrative Changes 2025.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-19
HOUSE BILL 476

*H476-v-6*
AN ACT MAKING TECHNICAL CORRECTIONS AND ADMINISTRATIVE CHANGES
TO THE LAWS GOVERNING AND RELATED TO THE DEPARTMENT OF STATE
TREASURER.

The General Assembly of North Carolina enacts:

PART I. EXTEND THE PROVISIONAL ENTRY PERIOD OF CHARTER SCHOOLS
IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM
SECTION 1.1. G.S. 135-5.3 reads as rewritten:
"§ 135-5.3. Optional participation for charter schools operated by private nonprofit
corporations or municipalities.
...
(b3) A charter school seeking to become a participating employer in the Retirement
System prior to the end of the second year of operation shall be granted provisional entry into the
Retirement System for one year. In the event the employee or employer contributions required
under G.S. 135-8(f) are not received by the date set by the Board of Trustees, the Board of
Trustees may revoke the charter school's provisional entry into the Retirement System. The
Board must notify a charter school in writing not less than 90 days prior to revoking a charter
school's provisional entry into the Retirement System. One year after the charter school was
granted After the charter school's initial year of provisional entry into the Retirement System, the
charter school shall undergo an actuarial and financial review as required by the Board of
Trustees.Trustees may extend the charter school's provisional entry by up to two additional years
or the charter school may apply to become a participating employer in the Retirement System. If
the Board of Trustees extends the charter school's provisional entry under this subsection, then
the charter school may apply to become a participating employer in the Retirement System at
any time during the extended period of provisional entry.
(b4) A charter school seeking to applying to become a participating employer in the
Retirement System after the end of the initial year of operation but before the end of the second
year of operation may period, or during the extended period, of provisional entry shall undergo
an actuarial review and a financial review as required by the Board of Trustees prior to entry into
the Retirement System. A charter school seeking to become a participating employer in the
Retirement System after the end of the second year of operation shall undergo an actuarial and
financial review as required by the Board of Trustees prior to entry into the Retirement System.a
decision on the application.
...
(b6) The financial review required under this section will be based on financial statements
and independent audit reports or functionally equivalent reports submitted to the Board of
Trustees by the charter school. Any charter school that is unable to provide this required
information shall not be granted entry into the Retirement System.
....
(b8) Upon acceptance by the Board of Trustees of the application to become a participating
employer, the charter school shall be a fully participating employer in the Retirement System.

Page 2 Session Law 2025-19 House Bill 476
The Board may make the final decision for acceptance of the application contingent upon the
receipt of a financially sound independent audit report for the fiscal year ending prior to
acceptance of the application.application, if the charter school applied for entry within two years
of the charter school's effective date of entry.
...
(b10) Any charter school approved by the Board of Trustees contingent upon receiving a
financially sound independent audit report pursuant to subsection (b8) of this section shall
continue its period of provisional entry for up to one year or until the Board has denied their
application for entry in the Retirement System, whichever is earlier. The charter school shall
cease participation in the Retirement System the first of the month following the month its (i)
provisional period ends or (ii) the application is denied by the Board.
...."
SECTION 1.2. This Part applies to any charter schools that seek to become a
participating employer in the Teachers' and State Employees' Retirement System, or are in the
initial period of provisional entry into the Retirement System, on or after the date that this act
becomes law.

PART II. REQUIRE THE BOARD OF TRUSTEES RATHER THAN THE STATE
TREASURER TO DETERMINE THE REVERSAL OF BENEFITS FORFEITED DUE
TO FELONIOUS CONDUCT UNDER THE TEACHERS' AND STATE EMPLOYEES'
RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES'
RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT
SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM
SECTION 2.1.(a) G.S. 135-18.10A(c) reads as rewritten:
"(c) If a member or former member whose benefits under the Retirement System were
forfeited under this section, except for the return of member contributions plus interest,
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set
aside for any reason, then the member or former member