Here’s a recap on House Bill 366: Regulatory Act of 2021. This bill would amend state laws related to State and local government, agriculture, energy, environment, natural resources, and other various regulations. The Senate PCS for HB 366 replaces contents within agriculture, natural resources, and alcohol regulations. The Senate PCS for House Bill 366 has six parts.
1. Wastewater Reserve Priority: Changes the effective date regarding priority consideration for loans or grants from the Wastewater Reserve or the Drinking Water Reserve, from July 1, 2021 to August 1, 2021.
2. Clarification regarding use of insurance restatements in interpreting law: Adds new Section 8A, providing that a statement or restatement of the law of insurance in any legal treatise, scholarly publication, textbook, or other explanatory text does not constitute the law or public policy of the State.
3. Nonforfeiture Interest Guarantee Change, includes the following:
a. Adds new Section 8B. Amends GS 58-58-61, the Standard Nonforfeiture Law for Individual Deferred Annuities.
b. Revises the specifications provided in determining the annual interest rate for nonforfeiture amounts, making the determination to be the lesser of 3 percent per annum and the determined interest guarantee resulting from specified parameters provided, now including that the resulting interest guarantee cannot be less than 0.15 percent (was 1 percent).
4. Allow distilleries to sell spirituous liquor produced by the distiller directly to consumers in other states, includes the following:
- Revises the proposed changes to GS 18B-1105(a)(2), clarifying that the new provisions allow distillery permittees to sell, deliver, and ship spirituous liquor in closed containers at wholesale or retail to consumers in other states or nations, subject to the laws of those jurisdictions.
- Changes the effective date of the proposed changes to GS 18B-800, GS 18B-1001, and GS 18B-1105; as well as the directive to the ABC Commission to amend its rules consistent with the proposed changes, to August 1, 2021 (was July 1, 2021.)
5. Waiver of post-construction conference for certain engineered wastewater systems, includes the following:
a. Adds new Section 12A. Amends GS 130A-336.1(j), concerning required post-construction conferences between the professional engineer designing the wastewater system and the owner of the wastewater system, the licensed soil scientist or licensed geologist, the certified on-site wastewater system contractor, the certified operator of the system, and representatives from the local health department and the Department of Health and Human Services, as applicable.
b. Allows for waiver of the required conference for Type I, II, and III wastewater systems, as listed in specified administrative rule, upon written request by the professional engineer and written approval by the owner of the wastewater system.
6. Approval of on-site subsurface wastewater systems, includes the following:
- Adds new Section 12.1.
- Amends GS 130A-343, regarding the approval of on-site subsurface wastewater systems.
- Adds to the statute's defined terms prefabricated permeable block panel system, defined, among other things, to be a unit of rigid design, constructed and installed to withstand load requirements without collapse, compression, or deflection.
The Senate substitute for House Bill 366 was passed by the Senate Environment Committee and is awaiting action by the Senate Committee on Rules and Operations of the Senate. We will continue to monitor and keep you apprised of its progress.
Last week, the House and Senate gave final approval to Senate Bill 208: Labor Law Changes, which makes various changes to the labor laws of North Carolina. Senate Bill 208: Labor Law Changes would do all the following:
- Clarify that the medical records obtained under G.S. 95-133(b)(13) must be kept separate from an investigative file and must not be released to an employer under investigation except as necessary to support the issuance of a citation in an OSHANC enforcement proceeding.
- Repeal the article addressing regulation of job listing services.
- Makes clarifying changes to statutes addressing youth employment certificates and payment to separated employees.
- Require employers to notify employees, in writing, at least one pay period prior to changes in wages, and (5) provides that the maximum penalty for employers who violate record keeping requirements must not exceed $2,000 per violation.
The bill has been sent to the Governor for final approval before becoming law. He has 10 days from July 1 to sign, veto, or allow the bill to become law without his signature.
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