North Carolina 2019-2020 Session Status: Passed Senate 1 R cosponsors

SB 398 — Felony Forfeiture Changes/Retirement.

Last action — Passed 1st Reading

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

91 added · 264 removed

Plain-language change summary

The recent changes to Bill SB 398 removed several specific references from the language concerning the disability income plan and compliance reviews. These references were likely deemed unnecessary, simplifying the bill's focus. Importantly, the bill now clearly states that members of the North Carolina National Guard will lose their pension eligibility if they forfeit any retirement benefits due to felony convictions. This change emphasizes accountability and ensures that public funds are not awarded to those who have committed serious crimes, which is significant for maintaining public trust in the pension system.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 S 1 SENATE BILL 398 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 S 2 SENATE BILL 398 Pensions and Retirement and Aging Committee Substitute Adopted 5/2/19 Short Title:
Senators Johnson and Wells (Primary Sponsors).
Rules and Operations of the Senate March 28, 2019 A BILL TO BE ENTITLED AN ACT TO PROHIBIT THE RECEIPT OF BENEFITS FROM THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM FOR JUDGES WHO HAVE BEEN IMPEACHED AND CONVICTED OR REMOVED FROM OFFICE, TO APPLY FELONY FORFEITURE PROVISIONS TO THE NATIONAL GUARD PENSION FUND AND TO THE DISABILITY INCOME PLAN OF NORTH CAROLINA, TO MAKE OTHER AMENDMENTS TO THE FELONY FORFEITURE STATUTES, AND TO PROVIDE FOR COMPLIANCE AND FRAUD REVIEWS OF PROGRAMS WITH THE DEPARTMENT OF STATE TREASURER AND ITS EXTERNAL CONTRACTS.
March 28, 2019 A BILL TO BE ENTITLED AN ACT TO PROHIBIT THE RECEIPT OF BENEFITS FROM THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM FOR JUDGES WHO HAVE BEEN IMPEACHED AND CONVICTED OR REMOVED FROM OFFICE, TO APPLY FELONY FORFEITURE PROVISIONS TO THE NATIONAL GUARD PENSION FUND AND TO THE DISABILITY INCOME PLAN OF NORTH CAROLINA, AND TO MAKE OTHER AMENDMENTS TO THE FELONY FORFEITURE STATUTES.
*S398-v-1* General Assembly Of North Carolina Session 2019 2 PART II.
PART II.
LIMIT PAYOUTS TO MEMBER CONTRIBUTIONS IF UNDER FELONY INDICTMENT SECTION 2.(a) G.S.
FORFEITURE OF RETIREMENT BENEFITS/JUDGES *S398-v-2* General Assembly Of North Carolina Session 2019 SECTION 2.(a) Article 4 of Chapter 135 of the General Statutes is amended by adding a new section to read:
135-18.10 is amended by adding a new subsection to read:
"(e) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, resulting in conviction, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowances to the member at the point in time when the monthly retirement benefits or allowances paid to the member equal the amount of the member contributions plus interest.
If themember is not convicted of afelonyoffense requiring forfeitureof benefits underthis section, then the Board of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been paid from the Retirement System if not for the suspension, plus interest." SECTION 2.(b) G.S.
135-18.10A is amended by adding a new subsection to read:
"(d) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, resulting in conviction, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowances to the member at the point in time when the monthly retirement benefits or allowances paid to the member equal the amount of the member contributions plus interest.
If themember is not convicted of afelonyoffense requiring forfeitureof benefits underthis section, then the Board of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been paid from the Retirement System if not for the suspension, plus interest." SECTION 2.(c) G.S.
128-38.4 is amended by adding a new subsection to read:
"(e) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, resulting in conviction, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowances to the member at the point in time when the monthly retirement benefits or allowances paid to the member equal the amount of the member contributions plus interest.
If themember is not convicted of afelonyoffense requiring forfeitureof benefits underthis section, then the Board of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been paid from the Retirement System if not for the suspension, plus interest." SECTION 2.(d) G.S.
128-38.4A is amended by adding a new subsection to read:
"(d) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, resulting in conviction, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowances to the member at the point in time when the monthly retirement benefits or allowances paid to the member equal the amount of the member contributions plus interest.
If themember is not convicted of afelonyoffense requiring forfeitureof benefits underthis section, then the Board of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been paid from the Retirement System if not for the suspension, plus interest." SECTION 2.(e) G.S.
135-75.1 is amended by adding a new subsection to read:
"(e) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, if convicted, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or Page 2 Senate Bill 398-First Edition General Assembly Of North Carolina Session 2019 allowancestothememberatthepointintimewhen themonthlyretirementbenefitsorallowances paid to the member equal the amount of the member contributions plus interest.
If the member is notconvictedofafelonyoffenserequiringforfeitureofbenefitsunderthissection,thentheBoard of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been payment from the Retirement System if not for the suspension, plus interest." SECTION 2.(f) G.S.
135-75.1A is amended by adding a new subsection to read:
"(d) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, if convicted, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowancestothememberatthepointintimewhen themonthlyretirementbenefitsorallowances paid to the member equal the amount of the member contributions plus interest.
If the member is notconvictedofafelonyoffenserequiringforfeitureofbenefitsunderthissection,thentheBoard of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been payment from the Retirement System if not for the suspension, plus interest." SECTION 2.(g) G.S.
120-4.33 is amended by adding a new subsection to read:
"(e) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, if convicted, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowancestothememberatthepointintimewhen themonthlyretirementbenefitsorallowances paid to the member equal the amount of the member contributions plus interest.
If the member is notconvictedofafelonyoffenserequiringforfeitureofbenefitsunderthissection,thentheBoard of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been payment from the Retirement System if not for the suspension, plus interest." SECTION 2.(h) G.S.
120-4.33A is amended by adding a new subsection to read:
"(d) On and after October 1, 2019, upon notification or discovery of the indictment of a member for any felony offense that, if convicted, would require forfeiture of benefits under this section, the Board of Trustees shall suspend the payment of monthly retirement benefits or allowancestothememberatthepointintimewhen themonthlyretirementbenefitsorallowances paid to the member equal the amount of the member contributions plus interest.
If the member is notconvictedofafelonyoffenserequiringforfeitureofbenefitsunderthissection,thentheBoard of Trustees shall restore the monthly retirement benefits or allowances to the member and shall pay a lump sum to the member equal to the amount of the monthly retirement benefits or allowances that would have been payment from the Retirement System if not for the suspension, plus interest." PART III.
FORFEITURE OF RETIREMENT BENEFITS/JUDGES SECTION 3.(a) Article 4 of Chapter 135 of the General Statutes is amended by adding a new section to read:
Senate Bill 398-First Edition Page 3 General Assembly Of North Carolina Session 2019 (1) The justice or judge of the General Court of Justice is convicted on impeachment underArticle IVof theNorth CarolinaConstitutionandChapter 123 of the General Statutes.
(1) The justice or judge of the General Court of Justice is convicted on impeachment underArticle IVof theNorth CarolinaConstitutionandChapter 123 of the General Statutes.
An individual receiving a reversal of benefit forfeiture must receive reinstatement of the service credit forfeited." SECTION 3.(b) G.S.
An individual receiving a reversal of benefit forfeiture must receive reinstatement of the service credit forfeited." SECTION 2.(b) G.S.
135-75.1A this Article is prohibited from subsequently purchasing or repurchasing either those forfeited benefits or any creditable membership service associated with those forfeited benefits." SECTION 3.(c) G.S.
135-75.1A this Article is prohibited from subsequently purchasing or repurchasing either those forfeited benefits or any creditable membership service associated with those forfeited benefits." SECTION 2.(c) G.S.
135-75.1C, and is disqualified from holding further judicial office." SECTION 3.(d) The General Assemblyand the Supreme Court shall notify the State Treasurer and the Board of Trustees of the conviction on impeachment or removal from office of a justice or judge of the General Court of Justice.
135-75.1C, and is disqualified from holding further judicial office." SECTION 2.(d) The General Assemblyand the Supreme Court shall notify the State Treasurer and the Board of Trustees of the conviction on impeachment or removal from office of a justice or judge of the General Court of Justice.
SECTION 3.(e) This section becomes effective January 1, 2020, and applies to offenses committed on or after that date.
SECTION 2.(e) This section becomes effective January 1, 2020, and applies to offenses committed on or after that date.
PART IV.
PART III.
DST COMPLIANCE AND FRAUD REVIEWS SECTION 4.
EFFECTIVE DATE Page 2 Senate Bill 398-Second Edition General Assembly Of North Carolina Session 2019 SECTION 3.
Article 6 of Chapter 147 of the General Statutes is amended by adding a new section to read:
"§ 147-86.3.
Fraud and compliance investigations.
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(a) The following definitions apply in this section:
(1) Compliance investigation.
– An independent review or examination by the Department of State Treasurer staff, or authorized representatives who are assisting the Department's staff, of records, activities, actions, or decisions by Page 4 Senate Bill 398-First Edition General Assembly Of North Carolina Session 2019 entities having an impact on the Department or benefits administered by the State Treasurer.
The purpose of a compliance investigation is to help detect errors and ensure compliance and full accountability in the use of State funds.
(2) Fraud investigation.
– An independent review or examination by Department of State Treasurer staff, or authorized representatives who are assisting the Department's staff, of records, activities, actions, or decisions by entities having an impact on the Department.
The purpose of a fraud investigation is to help detect and prevent fraud and to ensure full accountability in the use of State funds.
(b) Access to Persons and Records.
– In the course of conducting a compliance investigation or a fraud investigation, the Department of State Treasurer, or authorized representatives who are assisting the Department of State Treasurer staff, shall have all of the following:
(1) Ready access to persons and may examine and copy all books, records, reports, vouchers, correspondence, files, personnel files, investments, and any other documentation of any employer or provider of services to the Department of State Treasurer.
The review of State tax returns shall be limited to matters of official business, and the Department of State Treasurer's report shall not violate the confidentiality provisions of tax laws.
(2) Access to persons, records, papers, reports, vouchers, correspondence, books, and any other documentation that is in the possession of any individual, private corporation, institution, association, board, or other organization that pertain to all of the following:
a.
Amounts received pursuant to a grant or contract from the federal government, the State, or its political subdivisions.
b.
Amounts received, disbursed, or otherwise handled on behalf of the federal government or the State.
(3) Theauthority, andshall beprovidedwith readyaccess, to examineandinspect all property, equipment, and facilities in the possession of any employer agency or any individual, private corporation, institution, association, board, or other organization that were furnished or otherwise provided through grant, contract, or any other type of funding by the employer agency.
With respect to the requirements of sub-subdivision (2)b.
of this subsection, providers of social and medical services to a beneficiary of a program administered by the Department of State Treasurer shall make copies of records they maintain for services provided to a beneficiary available to the Department of State Treasurer, or to the authorized representatives who are assisting the Department of State Treasurer staff.
Copies of the records of social and medical services provided to a beneficiary of a program administered by the Department of State Treasurer will permit verification of the health or other status of a beneficiary as required for the payment of benefits under Article 2 of Chapter 128 of the General Statutes, or under Article 1, Article 3B, Article 4, or Article 6 of Chapter 135 of the General Statutes.
The Department of StateTreasurer,orauthorizedrepresentativeswhoareassistingtheDepartmentofStateTreasurer staff, shall request records in writing by providing the name of each beneficiary of a program administered by the Department of State Treasurer for whom records are sought, the purpose of the request, the statutory authority for the request, and a reasonable period of time for the production of record copies bythe provider.
A provider maycharge, and the Department of State Treasurer, or authorized representatives who are assisting the Department of State Treasurer staff, shall, in accordance with G.S.
90-411, pay a reasonable fee to the provider for copies of the records provided in accordance with this subsection.
(c) Compliance or Fraud Investigative Reports and Work Papers.
– The State Treasurer shall maintain for 10 years a complete file of all compliance investigative reports, fraud Senate Bill 398-First Edition Page 5 General Assembly Of North Carolina Session 2019 investigative reports and reports of other examinations, investigations, surveys, and reviews issued under the State Treasurer's authority.
Fraud or compliance investigation work papers and other evidence or related supportive material directly pertaining to the work of the Department of State Treasurer shall be retained according to an agreement between the State Treasurer and State Archives.
To promote intergovernmental cooperation and avoid unnecessary duplication of fraud and compliance investigative efforts, and notwithstanding any personnel policies to the contrary, pertinent work papers and other supportive material relating to issued fraud or compliance investigation reports may be, at the discretion of the State Treasurer and unless otherwise prohibited by law, made available for inspection by duly authorized representatives of the State and federal government who desire access to and inspection of such records in connection with some matter officially before them, including criminal investigations.
Except as provided in this section, or upon an order issued in Wake County Superior Court upon 10 days' notice and hearing finding that access is necessaryto a proper administration of justice, fraud and compliance investigation work papers and related supportive material shall be kept confidential, including any information developed as a part of the investigation.
(d) Fraud Reports Shall Be Anonymous.
– The identity of any person reporting fraud, waste, and abuse to the Department of State Treasurer shall be kept confidential and shall not be maintained as a public record within the meaning of G.S.
132-1.
PART V.
EFFECTIVE DATE SECTION 5.
Page 6 Senate Bill 398-First Edition
Senate Bill 398-Second Edition Page 3
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Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules, Calendar, and Operations of the House

  3. Regular Message Sent To House

  4. Regular Message Received From Senate

  5. Passed 2nd Reading

  6. Passed 3rd Reading

  7. Reptd Fav

  8. Reptd Fav Com Substitute

  9. Com Substitute Adopted

  10. Re-ref Com On Rules and Operations of the Senate

  11. Withdrawn From Com

  12. Re-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate

  13. Passed 1st Reading

  14. Ref To Com On Rules and Operations of the Senate

  15. Filed

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 177 not signed on

Sponsors (1)

Co-sponsors (1)

  • Wells

Not signed on (177)

177 members have not signed on to this bill.

Show all 177 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Second Reading

Passed 47 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Democratic 8000
Unaffiliated 27002
Republican 12001
Total 47003
% of votes cast 94%0%0%6%
How each member voted (50)
Member Party Vote
deViere — Yea
Fitch — Yea
Foushee — Yea
Marcus — Yea
McKissick — Yea
Nickel — Yea
Peterson — Yea
Searcy — Yea
Smith — Yea
VanDuyn — Yea
Woodard — Yea
Ballard — Yea
Brown — Yea
J. Davis — Yea
Edwards — Yea
Gallimore — Yea
Gunn — Yea
Horner — Yea
Johnson — Yea
Krawiec — Yea
Newton — Yea
Perry — Yea
Steinburg — Yea
Tillman — Yea
Wells — Yea
Bishop — Not Voting
Harrington — Not Voting
D. Davis — Yea
J. Jackson — Yea
Dan Blue Democratic Yea
Gladys A. Robinson Democratic Yea
Jay J. Chaudhuri Democratic Yea
Joyce Waddell Democratic Yea
Michael Garrett Democratic Yea
Mujtaba A. Mohammed Democratic Yea
Paul A. Lowe, Jr. Democratic Yea
Tracy Clark Democratic Yea
Bill Rabon Republican Yea
Brent Jackson Republican Yea
Carl Ford Republican Yea
Danny Earl Britt, Jr. Republican Yea
Jim Burgin Republican Yea
Norman W. Sanderson Republican Yea
Phil Berger Republican Not Voting
Ralph Hise Republican Yea
Tom McInnis Republican Yea
Vickie Sawyer Republican Yea
W. Ted Alexander Republican Yea
W. Ted Alexander Republican Yea
Warren Daniel Republican Yea

Official roll call →

Subjects

public-safety veterans labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 398?
SB 398 is sponsored by Todd Johnson (Republican) and Wells.
What is the current status of SB 398?
This bill died with 2019-2020 Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 398?
Track SB 398 free on One Click Politics — get push/email alerts when it moves.

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