NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 640

HOUSE BILL 623

 

 

AN ACT TO ABOLISH THE MERIT SYSTEM COUNCIL AND THE STATE PERSONNEL COUNCIL, AND TO ESTABLISH A STATE PERSONNEL BOARD RESPONSIBLE FOR A SYSTEM OF PERSONNEL ADMINISTRATION UNDER THE GOVERNOR.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Chapter 126 and Articles 2 and 2A of Chapter 143 of the General Statutes of North Carolina are hereby repealed.

Sec. 2.  A new Chapter 126 is hereby enacted to read as follows:

CHAPTER 126.

STATE PERSONNEL SYSTEM.

Article 1.

State Personnel System Established.

"§ 126-1.  Purpose. It is the intent and purpose of this Chapter to establish for the government of the State a system of personnel administration under the Governor, based on accepted principles of personnel administration and applying the best methods as evolved in government and industry. It is also the intent of this Chapter that this system of personnel administration shall apply to local employees paid entirely or in part from federal funds, except to the extent that local governing boards are authorized by this Chapter to establish local rules, local pay plans, and local personnel systems.

"§ 126-2.  State Personnel Board. (a) There is hereby established the State Personnel Board (hereinafter referred to as 'the Board').

(b)        The Board shall consist of seven members who shall be appointed by the Governor on July 1, 1965, or as soon thereafter as is practicable. Two members of the Board shall be chosen from employees of the State subject to the provisions of this Chapter; two members shall be appointed from a list of individuals nominated by the North Carolina Association of County Commissioners; two members shall be individuals actively engaged in the management of a private business or industry; and one member shall be appointed from the public at large. Of the initial members of the Board, two shall be appointed to serve for terms of two years, two shall be appointed to serve for terms of four years, and three shall be appointed to serve for terms of six years. Their successors shall be appointed by the Governor for terms of six years. Any vacancy occurring prior to the expiration of a term shall be filled by appointment for the unexpired term.

(c)        A member of the Board shall not be considered a public officer, or as holding an office or place of trust or profit within the meaning of Article XIV, Section 7, of the Constitution of this State, but shall be deemed a commissioner for a special purpose.

(d)        The Governor may at any time after notice and hearing remove any Board member for gross inefficiency, neglect of duty, malfeasance, misfeasance, or nonfeasance in office.

(e)        Members of the Board who are employees of the State subject to the provisions of this Article shall be entitled to administrative leave without loss of pay for all periods of time required to conduct the business of the Board.

(f)         Five members of the Board shall constitute a quorum.

(g)        The Governor shall designate one member of the Board as chairman.

(h)        The Board shall meet quarterly, and at other times at the call of the chairman.

"§ 126-3.  State Personnel Department. There is hereby established the State Personnel Department (hereinafter referred to as 'the Department'). The Department shall be separate and distinct from the Department of Administration and shall be under the administration and supervision of a State Personnel Director (hereinafter referred to as 'the Director') appointed by the Board and subject to its supervision. The salary of the Director shall be fixed by the Governor subject to the approval of the Advisory Budget Commission. The Director shall serve at the pleasure of the State Personnel Board.

"§ 126-4.  Powers of State Personnel Board. Subject to the approval of the Governor, the State Personnel Board shall establish policies and rules governing each of the following:

(1)        A position classification plan which shall provide for the classification and reclassification of all positions subject to this Chapter according to the duties and responsibilities of the positions.

(2)        A compensation plan which shall provide for minimum, maximum, and intermediate rates of pay for all employees subject to the provisions of this Chapter.

(3)        For each class of positions, reasonable qualifications, as to age, character, physical condition, and other attributes pertinent to the work to be performed.

(4)        A recruitment program to attract applicants to public employment and determine the relative fitness of applicants for the respective positions.

(5)        Hours and days of work, holidays, vacation, sick leave, and other matters pertaining to the conditions of employment.

(6)        The appointment, promotion, transfer, demotion, suspension, and separation of employees.

(7)        Cooperation with the Department of Public Instruction, the State Board of Education, the Board of Higher Education, and the colleges and universities of the State in developing pre-service and in-service training programs.

(8)        The evaluation of employee performance, the granting of salary increments, and a program of meritorious service awards, which may include cash awards to be paid from savings resulting from the adoption of the employee suggestions, but in no case shall the cash award exceed ten per cent (10%) of the savings resulting during the first year following adoption, or a maximum of one thousand dollars ($1,000.00).

(9)        Hearing of appeals of applicants, employees, and former employees and the issuing of advisory recommendations in all appeal cases.

(10)      Such other programs and procedures as may be necessary to promote efficiency of administration and provide for a fair and reasonable system of personnel administration.

"§ 126-5.  Employees Subject to the State Personnel Board; Exemptions. (a) The provisions of this Chapter shall apply to all State employees not herein exempt, and to employees of local welfare departments, public health departments, mental health clinics, and local civil defense agencies which receive federal grant-in-aid funds; and the provisions of this Chapter may apply to such other county employees as the several boards of county commissioners may from time to time determine.

(b)        The provisions of this Chapter shall not apply to the following persons or employees: physicians and dentists on the staff of hospitals, mental institutions, reformatories and correctional institutions of the State, deputy directors, directors of professional training and director of research of the State Department of Mental Health, public school superintendents, principals, teachers, and other public school employees; instructional and research staff of the educational institutions of the State; business managers of the University of North Carolina and its several campuses, East Carolina College, and Appalachian State Teachers College; members of boards, committees, commissions, councils, and advisory councils compensated on a per diem basis, constitutional officers of the State and except as to salaries, their chief administrative assistants; employees of the General Assembly and its agencies and temporary employees of activities ancillary to the General Assembly; officials and employees whose salaries are fixed by the Governor, or by the Governor and Council of State, or by the Governor subject to the approval of the Council of State or the Advisory Budget Commission; officials or employees whose salaries are fixed by the Governor, or by the Governor and the Council of State, or by the Governor subject to the approval of the Council of State or the Advisory Budget Commission; officials or employees whose salaries are fixed by Statute or by virtue of a specific statutory method other than the method provided by this Chapter, and explicitly pertaining to such officials or employees. In case of dispute as to whether an employee is subject to the provisions of this Chapter, the question shall be investigated by the State Personnel Department and decided by the State Personnel Board, subject to the approval of the Governor, and such decision shall be final.

"§ 126-6.  Policies Continued and Powers Transferred. All classifications, grades, salaries, conditions of work, and rules and regulations established prior to the effective date of this Chapter by the State Personnel Council, the State Personnel Director, or the North Carolina Merit System Council shall remain in force until amended, repealed, or superseded by the Board, acting under the authority of this Chapter.

(b)        The State Personnel Board and the State Personnel Director herein provided shall be the successors of the State Personnel Council, the State Personnel Director, North Carolina Merit System Council, and the Merit System Supervisor. All records and property in the custody of these agencies and individuals are hereby transferred to the State Personnel Board and the State Personnel Department, effective July 1, 1965.

(c)        Any status of employment or privilege previously attained by an employee in accordance with the State Personnel Act or the State Merit System Act shall continue under the provisions of this Chapter.

Article 2.

Personnel Policy as to Salary and Leave Privilege of State Employees.

"§ 126-7.  Automatic and Merit Increments for State Employment. It shall be considered a part of the personnel policy of this State that salary increases as provided in the compensation plan shall be granted in accordance with a standard of efficiency as established by the State Personnel Board. Each employee whose performance merits his retention in service shall be granted a salary increase in an amount corresponding to the increments between steps of the applicable salary range at least once each year until he reaches the intermediate salary step nearest to, but not exceeding, the middle of the salary range established for the class to which his position is assigned. Prior to July 1, 1965, each agency, board, commission, department, or institution of State government subject to the provisions of this Article shall file with the State Personnel Director a written description of the plan or method it is currently following in awarding or allocating efficiency or merit salary increments. At the same time, each such agency, board, commission, department, or institution shall cause a copy thereof to be distributed to each employee. The State Personnel Director, with the approval of the State Personnel Board, shall modify, alter or disapprove any such plan submitted to it which it deems not to be in accordance with the provisions of this Article. Within the limit of available funds, each employee meeting higher standards may be granted increases up to but not exceeding the maximum of the salary range established for the class to which his position is assigned. If, in addition to the salary ranges, the State Personnel Board shall establish uniform provisions for a system of payments over and above the standard salary ranges on a basis combining longevity in service and merit in the performance of duties, that plan of payments shall not be considered in applying this policy governing annual salary increments. The head of each department, bureau, agency, or commission, when making his budget request for the ensuing biennium, shall anticipate the funds which will be required during the biennium for the purpose of paying salary increments and shall include those amounts in his budget request. In no case shall the amount estimated for increments above the step nearest but not exceeding the middle of the range exceed two-thirds of the sum which would be required to grant increments to all the personnel of the agency then receiving or who will receive during the first year of the biennium a salary equal to or above the intermediate step of the salary range. With the approval of the State Personnel Board, State departments, bureaus, agencies, or commissions with twenty-five or less employees subject to the provisions of this Chapter may exceed the two-thirds restrictions herein provided.

"§ 126-8.  Minimum Leave Granted State Employees. The amount of vacation leave granted to each full-time State employee subject to the provisions of this Chapter shall be at a rate not less than one and one-fourth days per calendar months, cumulative to at least thirty days. Sick leave allowed as needed to such State employees shall be at a rate not less than ten days for each calendar year, cumulative from year to year.

Article 3.

Local Discretion as to Local Government Employees.

"§ 126-9.  County Employees May be Made Subject to Rules Adopted by the Board of County Commissioners. (a) When a board of county commissioners adopts rules and regulations governing annual leave, sick leave, hours of work, holidays, and the administration of the pay plan for county employees generally and the county rules and regulations are filed with the State Personnel Director, the county rules will supersede the rules adopted by the State Personnel Board as to the county employees otherwise subject to the provisions of this Chapter.

(b)        No county employees otherwise subject to the provisions of this Chapter may be paid a salary less than the minimum nor more than the maximum of the applicable salary range adopted in accordance with this Chapter without approval of the State Personnel Board. Provided, however, that subject to the approval of the State Personnel Board, a board of county commissioners may adjust the salary ranges applicable to employees who are otherwise subject to the provisions of this Chapter, in order to cause the level of pay to conform to local financial ability and fiscal policy.

The State Personnel Board shall adopt policies and regulations to ensure that significant relationships within the schedule of salary ranges are maintained.

(c)        When two or more counties are combined into a district for the performance of an activity whose employees are subject to the provisions of this Chapter, the boards of county commissioners of the counties may jointly exercise the authority hereinabove granted in subsections (a) and (b) of this Section.

(d)        When a municipality is performing an activity by or through employees which are subject to the provisions of this Chapter, the governing body of the municipality may exercise the authority hereinabove granted in subsections (a) and (b) of this Section.

"§ 126-10.  Personnel Services to Local Governmental Units. The State Personnel Board may make the services and facilities of the State Personnel Department available upon request to the political subdivisions of the State. The State Personnel Board may establish reasonable charges for the service and facilities so provided, and all funds so derived shall be deposited in the State Treasury to the credit of the General Fund.

"§ 126-11.  Local Personnel System May be Applicable. The board of county commissioners of any county which shall establish and maintain a personnel system for all employees of the county subject to its jurisdiction, which system is found from time to time by the State Personnel Board to be substantially equivalent to the system established under Article 1 of this Chapter for employees of local welfare departments, public health departments, and mental health clinics, may include employees of these local agencies within the terms of such system. Employees covered by that system shall be exempt from the provisions of Article 1 of this Chapter.

Article 4.

Competitive Service.

"§ 126-12.  Governor and Council of State to Determine Competitive Service. The Governor, with the approval of the Council of State, shall from time to time determine for which, if any of the positions subject to the provisions of Article 1 of this Chapter, appointments and promotions shall be based on a competitive system of selection."

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall become effective July 1, 1965.

In the General Assembly read three times and ratified, this the 20th day of May, 1965.