GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S 5
SENATE BILL 1115
Appropriations/Base Budget Committee Substitute as amended Adopted 6/18/02
As amended by Pensions & Retirement and Aging Committee 6/18/02
Third Edition Engrossed 6/19/02
House Committee
Substitute Favorable 8/9/02
Fifth Edition Engrossed 8/13/02
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Short Title: Modify Appropriations Act of 2001. |
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Sponsors: |
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Referred to: |
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May 29, 2002
A BILL TO BE ENTITLED
AN ACT TO MODIFY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2001, TO PROVIDE FOR A TEN PERCENT (10%) REDUCTION IN THE SALARY OF MEMBERS OF THE GENERAL ASSEMBLY FOR THE REMAINDER OF THE 2002-2003 FISCAL YEAR, AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2002."
PART iI. current operations and expansion/general fund
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
CURRENT OPERATIONS ‑ GENERAL FUND
SECTION 2.1. Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the fiscal year ending June 30, 2003, according to the schedule that follows. Amounts set out in brackets are reductions from General Fund appropriations for the 2002‑2003 fiscal year.
Current Operations ‑ General Fund 2002‑2003
EDUCATION
Community Colleges System Office 31,351,893
Department of Public Instruction (35,901,988)
University of North Carolina ‑ Board of Governors
Appalachian State University (2,739,189)
East Carolina University
Academic Affairs (4,152,403)
Health Affairs (1,381,862)
Elizabeth City State University (663,037)
Fayetteville State University (946,700)
NC Agricultural and Technical University (1,939,938)
North Carolina Central University (1,483,534)
North Carolina School of the Arts (908,639)
North Carolina State University
Academic Affairs (10,360,334)
Agricultural Extension (1,123,032)
Agricultural Research (1,418,351)
University of North Carolina at Asheville (842,476)
University of North Carolina at Chapel Hill
Academic Affairs (9,263,397)
Health Affairs (5,762,030)
Area Health Education Centers (1,382,170)
University of North Carolina at Charlotte (3,479,570)
University of North Carolina at Greensboro (3,322,120)
University of North Carolina at Pembroke (750,292)
University of North Carolina at Wilmington (2,067,193)
Western Carolina University (1,855,666)
Winston‑Salem State University (1,111,749)
General Administration (3,213,801)
University Institutional Programs 34,263,134
Related Educational Programs (2,798,032)
North Carolina School of Science and Mathematics (36,334)
UNC Hospitals at Chapel Hill (1,217,620)
Total (29,956,334)
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 22,761,495
Division of Aging (926,000)
Division of Blind Services/Deaf/HH (643,013)
Division of Child Development (3,428,035)
Division of Education Services (3,936,077)
Division of Facility Services (646,705)
Division of Medical Assistance (13,302,696)
Division of Mental Health (7,098,502)
NC Health Choice (1,007,492)
Division of Public Health (14,989,332)
Division of Social Services (18,454,750)
Division of Vocation Rehabilitation (3,922,522)
Total (18,988,237)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services (4,822,458)
Department of Commerce
Commerce (10,395,595)
Commerce State‑Aid 5,145,100
NC Biotechnology Center (627,047)
Rural Economic Development Center (423,851)
Department of Environment and Natural Resources
Environment and Natural Resources (10,017,863)
Clean Water Management Trust Fund (30,000,000)
Office of the Governor ‑ Housing Finance Agency (540,600)
Department of Labor (951,725)
JUSTICE AND PUBLIC SAFETY
Department of Correction (31,186,462)
Department of Crime Control and Public Safety (7,596,481)
Judicial Department (10,169,988)
Judicial Department ‑ Indigent Defense 3,394,903
Department of Justice (2,422,581)
Department of Juvenile Justice and Delinquency Prevention (14,893,541)
GENERAL GOVERNMENT
Department of Administration (5,354,207)
Office of Administrative Hearings (233,742)
Department of State Auditor (983,908)
Office of State Controller (1,101,040)
Department of Cultural Resources
Cultural Resources (3,610,213)
Roanoke Island Commission (401,222)
State Board of Elections 209,622
General Assembly (4,081,885)
Office of the Governor
Office of the Governor (563,763)
Office of State Budget and Management (383,824)
OSBM – Reserve for Special Appropriations 50,000
Department of Insurance
Insurance (1,882,104)
Insurance – Volunteer Safety Workers' Compensation (2,500,000)
Office of Lieutenant Governor (72,367)
Department of Revenue (2,384,400)
Rules Review Commission (9,981)
Department of Secretary of State (345,281)
Department of State Treasurer
State Treasurer 671,618
State Treasurer – Retirement for Fire and Rescue Squad Workers (5,248,601)
TRANSPORTATION
Department of Transportation (2,490,841)
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Salary Reduction Adjustment (165,000)
Reserve for Compensation Increases (4,247,868)
Statewide Reserve for State Health Plan (12,621,872)
Reserve for Teachers' and State Employees' Retirement
Rate Adjustment (142,300,000)
Retirement Incentive (31,000,000)
Payroll Adjustment Reserve (70,000,000)
Reserve for Employee Severance Compensation 20,000,000
Implementation of Recommendations of
Governor's Efficiency Commission (25,000,000)
Reserve for Information Technology Rate Adjustment (2,414,318)
Reserve to Implement HIPPA 2,000,000
Reserve for Experience Step Increase for Teachers and
Principals in Public Schools 51,937,267
Assistant/Deputy Clerks/Magistrates Salary Steps 1,980,700
Debt Service
General Debt Service (97,750,000)
TOTAL CURRENT OPERATIONS – GENERAL FUND (509,300,085)
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) The General Fund availability used in adjusting the 2002‑2003 fiscal year budget is shown below:
2002‑2003
Beginning Unreserved Credit Balance 119,800,000
Revenues Based on Existing Tax Structure 12,788,200,000
Nontax Revenues
Investment Income 115,300,000
Judicial Fees 111,300,000
Disproportionate Share 107,000,000
Insurance 46,600,000
Other Nontax Revenues 98,900,000
Highway Trust Fund Transfer 172,400,000
Highway Fund Transfer 15,300,000
Subtotal Nontax Revenues 666,800,000
Total General Fund Availability 13,574,800,000
Other Adjustments to Availability: 2002 Session
Project Tax Collect 15,000,000
Highway Trust Fund – recurring inflationary adjustment 80,000,000
Highway Trust Fund Transfer – one time transfer 125,000,000
Tobacco Settlement Trust Funds – divert MSA receipts for one year 140,634,712
Transfer of Cash from Trust and Special Funds 22,263,259
Adjustment to Transfer from Insurance Regulatory Fund (851,366)
Nontax Revenue Offsets – State Treasurer 671,618
Increase Collection Rates for Offender Fees 1,160,000
Reimbursement for Unauthorized Substance Tax Division 885,884
Budget Revenue Act of 2002 (SB 1292) 322,300,000
2002 Fee Bill (HB 1670) 22,900,000
Subtotal Adjustments to Availability: 2002 Session 729,964,107
REVISED General Fund Availability 14,304,764,107
GENERAL FUND APPROPRIATIONS (14,304,518,541)
Unappropriated Balance 245,566
SECTION 2.2.(b) Effective July 1, 2002, cash balances remaining in special funds on June 30, 2002, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) according to the schedule that follows. These funds shall be used to support General Fund appropriations for the 2002‑2003 fiscal year.
Fund Amount Transferred
Administrative Office of the Courts
Budget Code, 22005, (Worthless Check Fund) 150,000
(Appellate Copying Fees) 275,000
Department of Environment and Natural Resources
Budget Code 24300, Fund Code 2104 (ADM – Mooresville RO Vending) 472
Budget Code 24308, Fund Code 2105 (DEE ‑ Env
Educ Certification) 10,000
Budget Code 24300, Fund Code 2331 (DAQ Air Permits) 250,000
Budget Code 24300, Fund Code 2106 (DEH ‑ Sleep Products) 300,000
Budget Code 24300, Fund Code 2754 (DEH GSWW
System Account) 10,900
Budget Code 24310, Fund Code 2711 (DFR Forestry Fire Supp) 78,225
Budget Code 24310, Fund Code 2712 (DFR Forestry Restoration) 771,333
Budget Code 24308, Fund Code 2255 (DFR Special
Air Operations) 6,759
Budget Code 24300, Fund Code 2610 (DLR Mineral Interest) 20,000
Budget Code 24300, Fund Code 2740 (DLR Dam
Safety Account) 100,000
Budget Code 24300, Fund Code 2745 (DLR Mining Fees) 25,000
Budget Code 24300, Fund Code 2392 (DMF Advance
License Sale) 1,600,000
Budget Code 24300, Fund Code 2393 (DWM Septage Fees) 100,000
Budget Code 24308, Fund Code 2387 (DWM Hazardous
Waste Fees) 68,189
Budget Code 24300, Fund Code 2341 (DWQ Water Permits) 1,000,000
Budget Code 24308, Fund Code 2465 (MSN Mus
Nat Sci/Scientific Publicat) 3,177
Budget Code 24308, Fund Code 2515 (SWC Agric Waste
Small Farms) 20,000
Budget Code 24308, Fund Code 2520 (SWC Animal Waste
Cost Share) 500,000
Budget Code 64302, Fund Code 6710 (Natural Heritage
Trust Fund) 3,287,582
Budget Code 24308, Fund Code 2525 (Neuse Animal
Waste Cost Share) 366,335
Budget Code 24300, Fund Code 2221 (Bladen Lakes
State Forest Fund) 440,000
Department of Agriculture and Consumer Services
Budget Code 53750, Fund Code 5100 (State Fair) 1,000,000
Department of Commerce
Budget Code 24600, Fund Code 2683 (Empl & Train
Grants Prgm) 750,000
Budget Code 24600, Fund Code 2711 (Industrial
Development Fund) 3,000,000
Budget Code 24600, Fund Code 2881 (ABC Commission) 500,000
Budget Code 24600, Fund Code 2882 (ABC Warehouse) 500,000
Department of Health and Human Services
Budget Code 24470, Fund Code 2101 (Facility Finance Act) 95,000
Information Technology Services
Budget Code 24668, Fund Code 2800 (E‑Grant) 495,040
Department of Agriculture and Consumer Services
Budget Code 23700, Fund Code 2103 (Livestock
Acquisition Fund) 300,000
Budget Code 23701, Fund Code 2201 (Warehouse
Investment Fund) 225,000
Budget Code 53750, Fund Code 5190 (State Fair Reserves
and Transfers) 250,000
Budget Code 63700, Fund Code 6902 (Reforestation Fund) 23,915
Budget Code 63700, Fund Code 6105 (Forest
Management Reserve) 50,000
Department of Labor
Budget Code 23800, Fund Code 2422 (Pre‑Apprenticeship‑PBC) 491,332
Department of Correction
Budget Code 24502, (Inmate Canteen/ Welfare Fund) 500,000
Budget Code 74500, Fund Code 7100 (Enterprise Spec Fund/
Prison Enterprises) 2,000,000
Office of the State Controller
Budget Code 24172, (State Controller
Special Reserve Account) 1,300,000
Office of the State Controller
Budget Code 24160, Fund Code 2000 (Flexible Benefits Reserve) 1,400,000
Total Amount Transferred $22,263,259
SECTION 2.2.(c) Notwithstanding G.S. 113‑36(d), two hundred twenty thousand dollars ($220,000) of the cash balance remaining in the Bladen Lakes State Forest Fund (Budget Code 24300, Fund Code 2221) on July 1, 2002, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). An additional two hundred twenty thousand dollars ($220,000) shall be transferred on April 1, 2003. These funds shall be used to support General Fund appropriations for the 2002‑2003 fiscal year.
SECTION 2.2.(d) Section 2.2(f) of S.L. 2001‑424 reads as rewritten:
"SECTION 2.2.(f) The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intra State Transfers) shall be increased by one million dollars ($1,000,000), effective July 1, 2001, for the 2001‑2002 fiscal year.
The transfer of cash from Department
of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax
Budget Code 19978 (Intra State Transfers) shall be increased by five hundred
thousand dollars ($500,000), effective July 1, 2002, for the 2002‑2003
fiscal year and for subsequent fiscal years. two million five hundred
thousand dollars ($2,500,000), effective July 1, 2002, for the 2002-2003 fiscal
year. Of the two million five hundred thousand dollar ($2,500,000) increase for
the 2002-2003 fiscal year, five hundred thousand dollars ($500,000) is
recurring."
SECTION 2.2.(e) When the Highway Trust Fund was created in 1989, the revenue from the sales tax on motor vehicles was transferred from the General Fund to the Highway Trust Fund. To offset this loss of revenue from the General Fund, the Highway Trust Fund was required to transfer one hundred seventy million dollars ($170,000,000) to the General Fund each year, an amount equal to the revenue in 1989 from the sales tax on motor vehicles. This transfer did not, however, make the General Fund whole after the transfer of the sales tax revenue because no provision has been made to adjust the amount for the increased volume of transactions and increased vehicle prices. The additional eighty million dollars ($80,000,000) transferred from the Highway Trust Fund to the General Fund by this act is an effort to recover a portion of the sales tax revenues that would have gone to the General Fund over the last 13 years.
SECTION 2.2.(f) Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred under that subdivision for the 2002‑2003 fiscal year and for the 2003‑2004 fiscal year is two hundred fifty million dollars ($250,000,000).
SECTION 2.2.(g) There is transferred from the Highway Trust Fund to the General Fund the sum of one hundred twenty‑five million dollars ($125,000,000) for the 2002‑2003 fiscal year. It is the intent of the General Assembly that the Highway Trust Fund shall be held harmless because of this transfer. The General Assembly shall transfer funds from the General Fund back to the Highway Trust Fund during fiscal years 2004-2005 through 2008-2009 including interest at the net rate of return generated by the State Treasurer's Short Term Investment Fund.
SECTION 2.2.(h) The General Assembly finds that over the last two fiscal years, the cost of the Medicaid program has increased over a billion dollars. The downturn in the economy has caused an unforeseeable increase in the number of persons eligible for the program. Even with the significant expansion funds appropriated for the increased costs, transfers of funds to meet obligations for the 2001‑2002 fiscal year, and significant cost‑savings measures imposed by the General Assembly and the Department of Health and Human Services, Medicaid will still need additional State funds next year to cover increased costs.
Notwithstanding G.S. 143‑16.4(a2), of the funds credited to the Tobacco Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999‑2 during the 2002‑2003 fiscal year, the sum of thirty million dollars ($30,000,000) shall be transferred from the Department of Agriculture and Consumer Services, Budget Code 23703 (Tobacco Trust Fund) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2002‑2003 fiscal year.
Notwithstanding G.S. 143‑16.4(a1), of the funds credited to the Health Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999‑2 during the 2002‑2003 fiscal year, the sum of thirty‑two million two hundred sixty thousand dollars ($32,260,000) shall be transferred from the Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust Fund) to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2002‑2003 fiscal year.
Notwithstanding G.S. 143‑86.30(c), the Health and Wellness Trust Fund Commission shall transfer no more than twenty‑seven million three hundred sixty-five thousand two hundred eighty-eight dollars ($27,365,288) during the 2002-2003 fiscal year as follows:
(1) Eighteen million dollars ($18,000,000) to be expended in accordance with G.S. 143-86.30(d).
(2) One million dollars ($1,000,000) for Residential Substance Abuse Services for Women with Children administered through the Department of Health and Human Services.
(3) Seven hundred fifty thousand dollars ($750,000) for Healthy Carolinians administered through the Department of Health and Human Services.
(4) Two hundred fifty thousand dollars ($250,000) for the Healthy Start Foundation administered through the Department of Health and Human Services.
(5) One hundred thousand dollars ($100,000) for the Asthma Education Program administered through the Department of Health and Human Services.
(6) One million three hundred thousand dollars ($1,300,000) for Health Promotion administered through the Department of Health and Human Services.
(7) One million two hundred seventy-eight thousand dollars ($1,278,000) for the Loan Repayment Incentive Program administered through the Department of Health and Human Services.
(8) One million two hundred seventy-two thousand dollars ($1,272,000) for Children with Special Needs administered through the Department of Health and Human Services.
(9) Seven hundred ninety thousand dollars ($790,000) for WIC/Infant Formula administered through the Department of Health and Human Services.
(10) One million dollars ($1,000,000) for Cancer Control Prevention Activities administered through the Department of Health and Human Services.
(11) One million six hundred twenty‑five thousand two hundred eighty‑eight dollars ($1,625,288) for the purchase of vaccines as administered through the Department of Health and Human Services.
Pursuant to Section 2(b) of S.L. 1999‑2, eighty million dollars ($80,000,000) of the fifty percent (50%) of the annual installment payment to the North Carolina State Specific Account otherwise transferred and assigned to The Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc., during the 2002‑2003 fiscal year is transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2002‑2003 fiscal year. The Attorney General shall take all necessary actions to notify the court in the action entitled State of North Carolina v. Philip Morris Incorporated, et al., 98 CVS 14377, in the General Court of Justice, Superior Court Division, Wake County, North Carolina, and the administrators of the State Specific Account established under the Master Settlement Agreement of this action by the General Assembly redirecting this payment.
SECTION 2.2.(i) The funds appropriated in this act from the Insurance Regulatory Fund include an increase of six hundred thousand dollars ($600,000) in recurring funds from the amount appropriated in S.L. 2001‑424. These funds shall be used to pay for the costs and expenses incurred by the Department of Justice in the 2002‑2003 fiscal year and subsequent fiscal years in representing the Department of Insurance in its regulation of the insurance industry and other related programs and industries in this State that fall under the jurisdiction of the Department of Insurance.
SECTION 2.2.(j) G.S. 7A‑11 reads as rewritten:
"§ 7A‑11. Clerk of the Supreme Court; salary; bond; fees; oath.
The clerk of the Supreme Court
shall be appointed by the Supreme Court to serve at its pleasure. The annual
salary of the clerk shall be fixed by the Administrative Officer of the Courts,
subject to the approval of the Supreme Court. The clerk may appoint assistants
in the number and at the salaries fixed by the Administrative Officer of the
Courts. The clerk shall perform such duties as the Supreme Court may assign,
and shall be bonded to the State, for faithful performance of duty, in the same
manner as the clerk of the superior court, and in such amount as the
Administrative Officer of the Courts shall determine. He shall adopt a seal of
office, to be approved by the Supreme Court. A fee bill for services rendered
by the clerk shall be fixed by rules of the Supreme Court, and all such fees
shall be remitted to the State treasury, except that charges to litigants
for the reproduction of appellate records and briefs shall be fixed and
administered as provided by rule of the Supreme Court. treasury. Charges
to litigants for the reproduction of appellate records and briefs shall be
fixed by rule of the Supreme Court and remitted to the Appellate Courts Printing
and Computer Operations Fund established in G.S. 7A-343.3. The operations
of the Clerk of the Supreme Court shall be subject to the oversight of the
State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes.
Before entering upon the duties of his office, the clerk shall take the oath of
office prescribed by law."
SECTION 2.2.(k) G.S. 7A‑20(b) reads as rewritten:
"§ 7A‑20. Clerk; oath; bond; salary; assistants; fees.
(b) Subject to approval of
the Supreme Court, the Court of Appeals shall promulgate from time to time a
fee bill for services rendered by the clerk, and such fees shall be remitted to
the State Treasurer, except that charges to litigants for the reproduction
of appellate records and briefs shall be fixed and administered as provided by
rule of the Supreme Court. Treasurer. Charges to litigants for the
reproduction of appellate records and briefs shall be fixed by rule of the
Supreme Court and remitted to the Appellate Courts Printing and Computer
Operations Fund established in G.S. 7A‑343.3.The operations of the
Court of Appeals shall be subject to the oversight of the State Auditor
pursuant to Article 5A of Chapter 147 of the General Statutes."
SECTION 2.2.(l) Of the cash balance of any funds not remitted to the State Treasurer pursuant to G.S. 7A‑11 and G.S. 7A‑20(b) prior to the effective date of this act, only funds necessary for payroll and existing contractual obligations may be expended. The cash balance of these funds shall be transferred to the General Fund on July 1, 2002.
SECTION 2.2.(m) General Fund availability generated by subsections (j) and (k) of this section is shown in special funds transfers made in subsection (b) of this section.
PART iII. current operations and expansion/highway fund
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
SECTION 3.1. Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated are made for the fiscal year ending June 30, 2003, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Fund appropriations for the 2002‑2003 fiscal year.
Current Operations ‑ Highway Fund 2002‑2003
Administration –
Operations –
Construction and Maintenance
a. Construction
(01) Primary Construction –
(02) Secondary Construction (1,887,000)
(03) Urban Construction –
(04) Access and Public Service Roads –
(05) Contingency Construction 5,000,000
(06) Spot Safety Construction –
b. State Funds to Match Federal Highway Aid –
c. State Maintenance 17,642,295
d. Ferry Operations –
e. Capital Improvements –
f. State Aid to Municipalities (1,887,000)
g. State Aid for Public Transportation and Railroads 17,168,884
h. OSHA – State –
Governor's Highway Safety Program –
Division of Motor Vehicles –
Transfer to Highway Patrol –
Transfer to Driver Education 236,109
Transfer to G.F. for Sales Tax –
Other Reserves and Transfers (6,275,660)
GRAND TOTAL HIGHWAY FUND $ 29,997,628
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund appropriations availability used in developing modifications to the 2002‑2003 Highway Fund budget contained in this act is shown below:
2002‑2003
Revenue and Availability
Estimated Revenue $1,276,600,000
Credit Balance 41,300,000
Transfer to General Fund –
TOTAL HIGHWAY FUND AVAILABILITY $1,317,900,000
PART iv. highway trust fund appropriations
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
HIGHWAY TRUST FUND APPROPRIATIONS
SECTION 4.1. Appropriations from the Highway Trust Fund of the State for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal year ending June 30, 2003, according to the schedule that follows. Amounts set out in brackets are reductions from Highway Trust Fund appropriations for the 2002‑2003 fiscal year.
Current Operations and Expansion ‑ Highway Trust Fund 2002‑2003
Intrastate System (159,218,286)
Secondary Roads (18,065,569)
Urban Loops (64,381,244)
Aid to Municipalities (16,705,712)
Program Administration (4,073,189)
Transfer to General Fund 205,000,000
Grand Total/Highway Trust Fund (57,444,000)
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2003, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 15,266,973
02. Limited Purpose Agencies 979,017
03. Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant 717,313
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 16,963,303
SOCIAL SERVICES BLOCK GRANT
01. County departments of social services $ 27,095,289
(Transfer from TANF ‑ $4,500,000)
02. Allocation for in‑home services provided
by county departments of
social services 2,101,113
03. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services 3,234,601
04. Division of Services for the Blind 3,105,711
05. Division of Facility Services 426,836
06. Division of Aging ‑ Home and Community
Care Block Grant 1,840,234
07. Child Care Subsidies 3,000,000
08. Division of Vocational Rehabilitation ‑
United Cerebral Palsy 71,484
09. State administration 1,693,368
10. Child Medical Evaluation Program 238,321
11. Adult day care services 2,155,301
12. Comprehensive Treatment Services
Program 422,003
13. Department of Administration
for the N.C. State Commission of Indian Affairs
In‑Home Services Program for the Elderly 203,198
14. Division of Vocational Rehabilitation ‑
Easter Seals Society 116,779
15. UNC‑CH CARES Program for training and
consultation services 247,920
16. Office of the Secretary ‑ Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low‑income elderly persons 41,302
17. Division of Social Services ‑ Child
Caring Agencies 1,500,000
18. Division of Mental Health,
Developmental Disabilities, and
Substance Abuse Services ‑ Developmentally
Disabled Waiting List for services 5,000,000
19. Transfer to Preventive Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 145,819
20. Division of Facility Services ‑
Mental Health Licensure 213,128
TOTAL SOCIAL SERVICES BLOCK GRANT $ 52,852,407
LOW‑INCOME ENERGY BLOCK GRANT
01. Energy Assistance Programs $ 11,395,026
02. Crisis Intervention 6,598,934
03. Administration 2,459,510
04. Weatherization Program 3,457,189
05. Department of Administration ‑
N.C. State Commission of Indian Affairs 45,189
06. Heating Air Repair and Replacement Program 1,613,355
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 25,569,203
MENTAL HEALTH SERVICES BLOCK GRANT
01. Provision of community‑based
services for severe and persistently
mentally ill adults $ 5,442,798
02. Provision of community‑based
services to children 2,513,141
03. Comprehensive Treatment Services
Program for Children 1,500,000
04. Administration 783,911
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 10,239,850
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
01. Provision of community‑based
alcohol and drug abuse services,
tuberculosis services, and services
provided by the Alcohol and Drug Abuse
Treatment Centers $ 15,401,711
02. Continuation of services for
pregnant women and women
with dependent children 8,069,524
03. Continuation of services to
IV drug abusers and others at risk
for HIV diseases 4,616,378
04. Provision of services to children
and adolescents 7,740,611
05. Juvenile Services ‑ Family Focus 851,156
06. Allocation to the Division of Public Health
for HIV/STD Risk Reduction Projects 383,980
07. Allocation to the Division of Public Health
for HIV/STD Prevention by County Health
Departments 209,576
08. Allocation to the Division of Public Health
for the Maternal and Child Health Hotline 37,779
09. Administration 2,596,307
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 39,907,022
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $150,180,415
02. Quality and availability initiatives 16,496,620
03. Administrative expenses 6,550,000
04. Transfer from TANF Block Grant for
child care subsidies 72,812,189
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $246,039,224
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $129,396,275
02. Work First County Block Grants 92,018,855
03. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 72,812,189
04. Allocation to the Division of Mental
Health, Developmental Disabilities, and
Substance Abuse Services for Work First
substance abuse screening, diagnostic, and
support treatment services and drug testing 500,000
05. Child Care Subsidies for TANF Recipients 26,621,241
06. County Child Protective Services,
Foster Care, and Adoption Workers 2,727,550
07. Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services 4,500,000
08. Support Our Students ‑ Department
Juvenile Justice and Delinquency
Prevention 1,425,000
09. Residential Substance Abuse Services
for Women With Children 1,975,142
10. Domestic Violence Services
for Work First Families 900,000
11. After‑School Services for
At‑Risk Children 1,425,000
12. Division of Social Services ‑
Administration 400,000
13. Child Welfare workers and services for
local departments of social services 7,654,841
14. Child Welfare Training 1,000,000
15. DSS Evaluation 250,000
16. SACWIS Payback 4,643,454
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $348,249,547
MATERNAL AND CHILD HEALTH BLOCK GRANT
01. Healthy Mothers/Healthy Children
Block Grants to Local Health
Departments 9,838,074
02. High‑Risk Maternity Clinic Services,
Perinatal Education and Training,
Childhood Injury Prevention,
Public Information and Education, and
Technical Assistance to Local Health
Departments 2,012,102
03. Services to Children With Special Health
Care Needs 5,078,647
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 16,928,823
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $3,171,651
02. Rape Crisis/Victims' Services
Program ‑ Council for Women 197,112
03. HIV/AIDS Prevention Activities
Coordination 111,159
04. Transfer from Social Services
Block Grant ‑
HIV/AIDS education, counseling, and
testing 145,819
05. Office of Minority Health 159,459
06. Administrative Costs 108,546
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,893,746
SECTION 5.1.(b) Decreases in Federal Fund Availability. – If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State‑mandated services goals established for the Social Services Block Grant. The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.
If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services. Any TANF Block Grant fund changes shall be reported to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.
SECTION 5.1.(c) Increases in Federal Fund Availability. – Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.
SECTION 5.1.(d) Changes to the budgeted allocations to the block grants appropriated in this act and new allocations from the block grants not specified in this act shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to the change and shall be reported immediately to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(e) The Department of Health and Human Services may allow no‑cost contract extensions for up to six months for nongovernmental grant recipients under the TANF Block Grant.
SECTION 5.1.(f) Limitations on Preventive Health Services Block Grant Funds. – Twenty‑five percent (25%) of funds allocated for Rape Prevention and Rape Education shall be allocated as grants to nonprofit organizations to provide rape prevention and education programs targeted for middle, junior high, and high school students.
If federal funds are received under the Maternal and Child Health Block Grant for abstinence education, pursuant to section 912 of Public Law 104‑193 (42 U.S.C. § 710), for the 2002‑2003 fiscal year, then those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction. The Department of Public Instruction shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program and G.S. 115C‑81(e1)(4). The Department of Public Instruction shall carefully and strictly follow federal guidelines in implementing and administering the abstinence education grant funds.
The Department of Health and Human Services shall contract for the follow‑up testing involved with the Newborn Screening Program. The Department may contract for these services with an entity within or outside of the State; however, the Department may only contract with an out‑of‑state entity if it can be demonstrated that there is a cost‑savings associated with contracting with the out‑of‑state entity. The contract amount shall not exceed twenty‑five thousand dollars ($25,000). The amount of the contract shall be covered by funds in the Maternal and Child Health Block Grant.
SECTION 5.1.(g) The Department of Health and Human Services, Division of Social Services, shall do the following:
(1) Continue the current evaluation of the Work First Program to assess former recipients' earnings, barriers to advancement to economic self‑sufficiency, utilization of community support services, and other longitudinal employment data. Assessment periods shall include six and 18 months following closure of the case.
(2) Continue the current evaluation of the Work First Program to profile the State's child‑only caseload to include indicators of economic and social well‑being, academic and behavioral performance, demographic data, description of living arrangements including length of placement out of the home, social and other human services provided to families, and other information needed to assess the needs of the child‑only Work First Family Assistance clients and families.
The Division of Social Services may use up to two hundred fifty thousand dollars ($250,000) in TANF funds to complete the evaluation of Work First.
The Department of Health and Human Services shall make a report on its progress in complying with this subsection to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than September 30, 2002.
SECTION 5.1.(h) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this act in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for child caring agencies for the 2002‑2003 fiscal year shall be allocated to the State Private Child Caring Agencies Fund. These funds shall be combined with all other funds allocated to the State Private Child Caring Agencies Fund for the reimbursement of the State's portion of the cost of care for the placement of certain children by the county departments of social services who are not eligible for federal IV‑E funds. These funds shall not be used to match other federal funds.
SECTION 5.1.(i) The sum of three hundred thousand dollars ($300,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant shall be used to develop and implement a Medical Child Care Pilot open to children throughout the State.
SECTION 5.1.(j) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development for the subsidized child care program.
SECTION 5.1.(k) The sum of four hundred thousand dollars ($400,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2002‑2003 fiscal year shall be used to support administration of TANF‑funded programs.
SECTION 5.1.(l) The sum of one million nine hundred seventy‑five thousand one hundred forty‑two dollars ($1,975,142) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2002‑2003 fiscal year shall be used to provide regional residential substance abuse treatment and services for women with children. The Department of Health and Human Services, the Division of Social Services, and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in consultation with local departments of social services, area mental health programs, and other State and local agencies or organizations, shall coordinate this effort in order to facilitate the expansion of regionally based substance abuse services for women with children. These services shall be culturally appropriate and designed for the unique needs of TANF women with children.
In order to expedite the expansion of these services, the Secretary of the Department of Health and Human Services may enter into contracts with service providers.
The Department of Health and Human Services, the Division of Social Services, and the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, shall report on their progress in complying with this subsection no later than October 1, 2002, and March 1, 2003, to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. These reports shall include all of the following:
(1) The number and location of additional beds created.
(2) The types of facilities established.
(3) The delineation of roles and responsibilities at the State and local levels.
(4) Demographics of the women served, the number of women served, and the cost per client.
(5) Demographics of the children served, the number of children served, and the services provided.
(6) Job placement services provided to women.
(7) A plan for follow‑up and evaluation of services provided with an emphasis on outcomes.
(8) Barriers identified to the successful implementation of the expansion.
(9) Identification of other resources needed to appropriately and efficiently provide services to Work First recipients.
(10) Other information as requested.
SECTION 5.1.(m) The sum of one million four hundred twenty‑five thousand dollars ($1,425,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2002‑2003 fiscal year shall be used to support the existing Support Our Students Program and to expand the Program statewide, focusing on low‑income communities in unserved areas. These funds shall not be used for administration of the program.
SECTION 5.1.(n) The sum of nine hundred thousand dollars ($900,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2002‑2003 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to establish one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2002. The Division of Social Services, in consultation with the Council for Women, shall review the county plans and shall provide consultation and technical assistance to the departments of social services and local domestic violence shelter programs, if needed.
The Division of Social Services shall allocate these funds to county departments of social services according to the following formula: (i) each county shall receive a base allocation of five thousand dollars ($5,000) and (ii) each county shall receive an allocation of the remaining funds based on the county's proportion of the statewide total of the Work First caseload as of July 1, 2002, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2002. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
SECTION 5.1.(o) The sum of one million four hundred twenty‑five thousand dollars ($1,425,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after‑school programs and services for at‑risk children. The Department shall develop and implement a grant program to award grants to community‑based programs that demonstrate the ability to reach children at risk of teen pregnancy and school dropout. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to establish one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2003, on its progress in complying with this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(p) The sum of seven million six hundred fifty‑four thousand eight hundred forty‑one dollars ($7,654,841) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2002‑2003 fiscal year for Child Welfare Improvements shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post‑adoption services for eligible families.
SECTION 5.1.(q) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2002‑2003 fiscal year and the sum of four hundred twenty‑two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2002‑2003 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 21.60 of S.L. 2001‑424, as amended.
SECTION 5.1.(r) The sum of one million dollars ($1,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2002‑2003 shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child care facilities.
(4) Provide for various other child welfare training initiatives.
SECTION 5.1.(s) If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.
SECTION 5.1.(t) The sum of one hundred ten thousand four hundred sixty‑nine dollars ($110,469) appropriated in this section in the Preventive Health Service Block Grant to the Department of Health and Human Services for the 2002‑2003 fiscal year for HIV/AIDS Prevention Activities shall be used to enhance activities for HIV/AIDS awareness and education within the Division of Public Health. The position shall be responsible for all planning, programming, and budgeting for compliance with this subsection. These prevention activities shall be targeted to the general public and programs identified in this subsection and shall not be used to augment the current grant programs that target high‑risk populations through the community‑based organizations.
(1) Division of Social Services programs and services:
a. Domestic Violence Prevention and Awareness.
b. Domestic Violence Services for Work First Families.
c. After School Services for At‑Risk Children.
d. Work First Boys/Girls Clubs.
(2) Division of Mental Health, Developmental Disabilities, and Substance Abuse Services programs and services:
a. Substance Abuse Services for Juveniles.
b. Residential Substance Abuse Services for Women and Children.
(3) Division of Public Health programs and services:
a. Teen Pregnancy Prevention Activities.
b. Out‑of‑Wedlock Births.
c. School Health Program.
d. High‑Risk Maternity Clinic Services.
e. Perinatal Education and Training.
f. Public Information and Education.
g. Technical Assistance to Local Health Departments.
(4) Other divisions, services, and programs:
a. Family Support Services.
b. Family Resource Centers.
c. Independent Living Services.
d. Residential schools and facilities.
e. Other programs, services, or contracts that provide education and awareness services to children and families.
SECTION 5.1.(u) The sum of four hundred thirty‑eight thousand dollars ($438,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services shall be used to purchase services at maternity homes throughout the State.
Requested by: Representatives Fox, Owens, Easterling, Oldham, Redwine, Thompson
SECTION 5.2.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2003, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $1,000,000
02. Urgent Needs and Contingency 1,000,000
03. Scattered Site Housing 13,100,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,100,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT ‑ 2002 Program Year $45,000,000
SECTION 5.2.(b) Decreases in Federal Fund Availability. – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
SECTION 5.2.(c) Increases in Federal Fund Availability for Community Development Block Grant. – Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: Each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
SECTION 5.2.(d) Limitations on Community Development Block Grant Funds. – Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to one million dollars ($1,000,000) may be used for State administration; up to one million dollars ($1,000,000) may be used for Urgent Needs and Contingency; up to thirteen million one hundred thousand dollars ($13,100,000) may be used for Scattered Site Housing; up to eight million seven hundred ten thousand dollars ($8,710,000) may be used for Economic Development; not less than thirteen million five hundred thousand dollars ($13,500,000) shall be used for Community Revitalization; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to two million one hundred thousand dollars ($2,100,000) may be used for Housing Development; up to five million one hundred forty thousand dollars ($5,140,000) may be used for Infrastructure. If federal block grant funds are reduced or increased by the Congress of the United States after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.
SECTION 5.2.(e) Increase Capacity for Nonprofit Organizations. – Assistance to nonprofit organizations to increase their capacity to carry out CDBG‑eligible activities in partnership with units of local government is an eligible activity under any program category in accordance with federal regulations. Capacity building grants may be made from funds available within program categories, program income, or unobligated funds.
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
SPECIAL FUNDS, FEDERAL FUNDS, DEPARTMENTAL RECEIPTs, and cash balances/authorization for expenditures
SECTION 6.5.(a) There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations. All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute, and shall be expended at the level of service authorized by the General Assembly. If the receipts, other than gifts and grants that are unanticipated and are for a specific purpose only, collected in a fiscal year by an institution, department, or agency exceed the receipts certified for it in General Fund Codes or Highway Fund Codes, then the Director of the Budget shall decrease the amount he allots to that institution, department, or agency from appropriations from that Fund by the amount of the excess, unless the Director of the Budget finds that the appropriations from the Fund are necessary to maintain the function that generated the receipts at the level anticipated in the certified Budget Codes for that Fund.
Funds that become available from overrealized receipts in General Fund Codes and Highway Fund Codes may be used for new permanent employee positions or to raise the salary of existing employees only as follows:
(1) As provided in G.S. 116‑30.1, 116‑30.2, 116‑30.3, 116‑30.4; or
(2) If the Director of the Budget finds that the new permanent employee positions are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget codes for that Fund. The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the chairmen of the appropriations committees of the Senate and the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that he intends to make such a finding at least 10 days before he makes the finding. The notification shall set out the reason the positions are necessary to maintain the function.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter the General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund.
SECTION 6.5.(b) There is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year.
SECTION 6.5.(c) The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act are not spent in a manner that would cause a deficit in expenditures.
Requested by: Representative Blust
ZERO-BASED BUDGETING
SECTION 6.5A.(a) The General Assembly finds that the traditional method of budget development, which relies upon incremental adjustments to expenditures made in the previous financial period, insulates governmental activities from the thorough fiscal review expected by taxpaying citizens. New and changing demands for public services are met through excessive budget growth rather than by pruning obsolete programs and redirecting existing funds. Some programs were established so long ago that the original statutory basis has either been forgotten or is out‑of‑date. In time the budget is driven by inertia rather than by clear and defensible purposes. The General Assembly finds that zero‑based budgeting is an effective method to counter the tendency toward perpetuation of outdated State programs.
SECTION 6.5A.(b) The Director of the Budget shall subject every program in State government to zero‑based budget review no less often than once every five years. In order to implement this, approximately one‑fifth of the budget shall be subject to zero‑based budgeting in each year beginning in 2003. To accommodate zero‑based budget review, the Director of the Budget shall require agencies to prepare and submit a zero‑based budget plan in addition to any other information that may be required by statute, rule, or directive. At a minimum, the plan shall contain the following information:
(1) A description of those discrete activities that comprise the agency, and a justification for the existence of each activity by reference to statute or other legal authority.
(2) For each activity, a quantitative estimate of any adverse impacts that could reasonably be expected should the activity be discontinued, together with a full description of the methods by which the adverse impact is estimated.
(3) For each activity, an itemized account of expenditures that would be required to maintain the activity at the minimum level of service required by the statutory authority, together with a concise statement of the quantity and quality of services required at that minimum level.
(4) For each activity, an itemized account of expenditures required to maintain the activity at current levels of service, together with a concise statement of the quantity and quality of services being provided.
(5) A ranking of all activities that shows the relative contribution of each activity to the overall goals and purposes of the agency at current service levels.
SECTION 6.5A.(c) The Governor shall submit a zero-based budget to the General Assembly each fiscal biennium.
Requested by: Representatives Easterling, Oldham, Redwine, Thompson, McComas, Smith, Preston
REPEAL PORTS RAILWAY COMMISSION/TRANSFER TO STATE ports authority
SECTION 6.6.(a) Part 11 of Article 10 of Chapter 143B of the General Statutes, G.S. 143B‑469 through G.S. 143B‑469.3, is repealed.
SECTION 6.6.(b) G.S. 120‑123(25) is repealed.
SECTION 6.6.(c) G.S. 143B‑454(a)(4) reads as rewritten:
"(4) Be authorized and
empowered to acquire, construct, maintain, equip and operate any wharves,
docks, piers, quays, elevators, compresses, refrigeration storage plants,
warehouses and other structures, and any and all facilities needful for the
convenient use of the same in the aid of commerce, including the dredging of
approaches thereto, and the construction of beltline roads and highways and
bridges and causeways thereon, and other bridges and causeways necessary or
useful in connection therewith, and shipyards, shipping facilities, and
transportation facilities incident thereto and useful or convenient for the use
thereof, excluding terminal railroads;and to acquire, construct, and
maintain, but not operate, such rail facilities as may be necessary or useful
in connection with the operation of the State Ports, provided that nothing in
this subdivision shall be construed as requiring or allowing the North Carolina
State Ports Authority to become a carrier by rail subject to the federal laws
regulating those carriers;"
SECTION 6.6.(d) Within 30 days of the date this section becomes law, the North Carolina Ports Railway Commission shall provide the North Carolina State Ports Authority with a complete list of its assets and liabilities. All of the assets, real and personal, tangible and intangible, and all of the liabilities, including contractual obligations, of the North Carolina Ports Railway Commission are transferred to the North Carolina State Ports Authority. If and to the extent that such transfers require the execution of any documents or instruments of transfer by the North Carolina Ports Railway Commission, those documents may be executed by the current officers and members of the Commission and shall be executed within 60 days of the date this section becomes law.
SECTION 6.6.(e) As part of a plan to reorganize and consolidate rail operations at the State Ports, the North Carolina State Ports Authority may sell or transfer the Beaufort and Morehead Railway, Inc., or any part thereof or interest therein, to a terminal switching or short line railroad company, or to the North Carolina Railroad Company, on such terms and conditions as the parties may agree to.
SECTION 6.6.(f) Subsection (a) of this section becomes effective 60 days after this act becomes law. The remainder of this section is effective when it becomes law.
Requested by: Representatives Easterling, Oldham, Redwine, Baddour
procedure before REDUCing APPROPRIATIONS TO A SCHOOL ADMINISTRATIVE UNIT
SECTION 6.7. G.S. 159‑13(b)(9) reads as rewritten:
"(b) The following directions and limitations shall bind the governing board in adopting the budget ordinance:
…
(9) Appropriations made to a school administrative unit by a county may not be reduced after the budget ordinance is adopted, unless the board of education of the administrative unit agrees by resolution to a reduction, or unless a general reduction in county expenditures is required because of prevailing economic conditions. Before a board of county commissioners may reduce appropriations to a school administrative unit as part of a general reduction in county expenditures required because of prevailing economic conditions, it must do all of the following:
a. Hold a public meeting at which the school board is given an opportunity to present information on the impact of the reduction.
b. Take a public vote on the decision to reduce appropriations to a school administrative unit."
Requested by: Representatives Easterling, Oldham, Redwine, Thompson, Earle, Nye, Baddour
Senior Prescription Drug access Program
SECTION 6.8.(a) Notwithstanding G.S. 147‑86.30, the Health and Wellness Trust Fund Commission may for the fiscal year 2002‑2003 expend not more than three million dollars ($3,000,000) of the funds reserved pursuant to G.S. 147‑86.30(c) to develop and implement a Senior Prescription Drug Access Program. As used in this section, the term "senior" means an individual age 65 years and older. The purpose of the Program is to reduce costs of and improve access to and use of prescription drugs by:
(1) Providing one‑on‑one assistance to seniors and low‑income citizens in accessing public and private prescription drug assistance programs.
(2) Making available pharmacist evaluators to review all prescriptions and to provide face‑to‑face counseling for seniors to promote compliance and identify potential adverse effects from interactions among the prescribed drugs.
(3) Utilizing software currently licensed by the Department of Health and Human Services to guide patients through the complexities of all drug coverage options, including drug acquisition through low‑cost or discount drug programs provided through manufacturer's card programs, and by government programs.
Drug acquisition services under the Program shall be available to senior citizens and to low‑income citizens eligible for assistance under these public and private prescription drug programs. Counseling services provided by the Program shall be available to senior citizens age 65 and older. There shall be no fee for Program medication counseling services to seniors who are Medicaid recipients and seniors enrolled in Carolina CARxES. The Commission may authorize a reasonable fee to be charged by the pharmacist evaluator to other seniors using medication counseling services, provided that the fee is charged on a sliding scale based on individual or family income. In no event may the fee exceed the actual cost of the service provided. The Commission shall consult with other State agencies and public and private entities to avoid duplication and enhance cooperation and collaboration in providing Program services. In allocating funds under the Program, the Commission shall consider diversity of populations served, geographic representation, and increasing community capacity to respond to health needs. The Commission may phase in the availability of services such that initially all geographic regions of the State have services available.
SECTION 6.8.(b) In developing and implementing the Senior Prescription Drug Access Program, the Commission may do the following:
(1) Establish a centralized database with linkages to Medicaid databases to enable review of each participant's prescription drug regimen and to ensure quality of services, quality of care, and cost‑effectiveness. The database shall comply with all State and federal privacy protection requirements and shall be accessible only to participating pharmacists, primary care physicians, and case managers.
(2) Use reserved funds authorized under this section to contract with public and private entities to provide prescription drug assistance services.
(3) Use reserved funds authorized under this section to award grants to applicants eligible under G.S. 147‑86.31 to receive grant funds. Grant funds may be used to subsidize costs of hiring and training staff to operate drug acquisition software.
SECTION 6.8.(c) The Commission shall provide for ongoing evaluation of the Program to measure its usage and effectiveness. The Commission shall include in its annual report required under G.S. 147‑86.35 the use of funds for and activities of the Senior Prescription Drug Access Program and the results of its Program evaluation. The report shall include data on the number of persons who received services, fees authorized, and the geographic distribution of Program services.
Requested by: Representatives Easterling, Oldham, Redwine, Thompson, Earle, Nye, Alexander
UNIFORM PROVIDER CREDENTIALING BY HEALTH INSURANCE PLANS
SECTION 6.9. G.S. 58‑3‑230(a) reads as rewritten:
"(a) An insurer that provides a health benefit plan and that credentials providers for its networks shall maintain a process to assess and verify the qualifications of a licensed health care practitioner, or applicant for licensure as a health care practitioner, within 60 days of receipt of a completed provider credentialing application form approved by the Commissioner. When a health care practitioner joins a practice that is under contract with an insurer to participate in a health benefit plan, the effective date of the health care practitioner's participation in the health benefit plan network shall be the date the insurer approves the practitioner's credentialing application."
Requested by: Representatives Easterling, Oldham, Redwine, Thompson, Fox, Owens
Sale of Underutilized State‑Owned Aircraft
SECTION 6.10.(a) Any department of State government possessing State‑owned operational aircraft that are not being used for spare parts and have not been used for the intended purpose a minimum of two times during the 2001‑2002 fiscal year shall sell that aircraft during the 2002‑2003 fiscal year pursuant to the provisions of Article 3A of Article 143 of the General Statutes or by other procedures based upon competitive bidding that the head of the department finds to be acceptable for this purpose.
SECTION 6.10.(b) The Department of Commerce shall sell its Bell 206 helicopter during the 2002‑2003 fiscal year.
SECTION 6.10.(c) Proceeds of the sale of aircraft pursuant to this section shall be deposited in the General Fund.
Requested by: Representative Pope
TERMINATE HURRICANE FRAN ACCOUNT
SECTION 6.11A. Effective June 30, 2003, Executive Order #99 as amended, dated September 5, 1996, is terminated. All funds in the Hurricane Fran Account that were not contractually obligated on August 12, 2002 revert on June 30, 2003 and shall be credited to the Savings Reserve Account.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.1.(a) Effective for the 2002‑2003 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools for the 2002‑2003 fiscal year funds necessary to implement the teacher salary schedule set out in subsection (b) of this section, including funds for the employer's retirement and social security contributions and funds for annual longevity payments at one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service, commencing July 1, 2002, for all teachers whose salaries are supported from the State's General Fund. These funds shall be allocated to individuals according to rules adopted by the State Board of Education. The longevity payment shall be paid in a lump sum once a year.
SECTION 7.1.(b) For the 2002‑2003 school year, the following monthly salary schedules shall apply to certified personnel of the public schools who are classified as teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.
2002‑2003 Monthly Salary Schedule
Years of "A" NBPTS
Experience Teachers Certification
0 $2,525 N/A
1 $2,567 N/A
2 $2,611 N/A
3 $2,764 $3,096
4 $2,904 $3,252
5 $3,036 $3,400
6 $3,164 $3,544
7 $3,266 $3,658
8 $3,314 $3,712
9 $3,362 $3,765
10 $3,412 $3,821
11 $3,461 $3,876
12 $3,511 $3,932
13 $3,561 $3,988
14 $3,614 $4,048
15 $3,667 $4,107
16 $3,722 $4,169
17 $3,777 $4,230
18 $3,834 $4,294
19 $3,892 $4,359
20 $3,950 $4,424
21 $4,011 $4,492
22 $4,072 $4,561
23 $4,136 $4,632
24 $4,200 $4,704
25 $4,264 $4,776
26 $4,330 $4,850
27 $4,398 $4,926
28 $4,467 $5,003
29 $4,538 $5,083
30+ $4,538 $5,083
2002‑2003 Monthly Salary Schedule
Years of "M" NBPTS
Experience Teachers Certification
0 $2,778 N/A
1 $2,824 N/A
2 $2,872 N/A
3 $3,040 $3,405
4 $3,194 $3,577
5 $3,340 $3,741
6 $3,480 $3,898
7 $3,593 $4,024
8 $3,645 $4,082
9 $3,698 $4,142
10 $3,753 $4,203
11 $3,807 $4,264
12 $3,862 $4,325
13 $3,917 $4,387
14 $3,975 $4,452
15 $4,034 $4,518
16 $4,094 $4,585
17 $4,155 $4,654
18 $4,217 $4,723
19 $4,281 $4,795
20 $4,345 $4,866
21 $4,412 $4,941
22 $4,479 $5,016
23 $4,550 $5,096
24 $4,620 $5,174
25 $4,690 $5,253
26 $4,763 $5,335
27 $4,838 $5,419
28 $4,914 $5,504
29 $4,992 $5,591
30+ $4,992 $5,591
SECTION 7.1.(c) Certified public school teachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public school teachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 7.1.(d) Effective for the 2002‑2003 school year, the first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience. Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified psychologists. Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
SECTION 7.1.(e) Effective for the 2002‑2003 school year, speech pathologists who are certified as speech pathologists at the masters degree level and audiologists who are certified as audiologists at the masters degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule.
Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 7.1.(f) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2002‑2003 school year, the Director of the Budget shall transfer from Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools for the 2002‑2003 fiscal year funds necessary to implement the salary schedule for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 7.2.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2002‑2003 fiscal year, commencing July 1, 2002, is as follows:
Principal and Assistant Principal Salary Schedules
Yrs of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,226 – – – –
5 $3,373 – – – –
6 $3,515 – – – –
7 $3,629 – – – –
8 $3,681 $3,681 – – –
9 $3,735 $3,735 – – –
10 $3,791 $3,791 $3,845 – –
11 $3,845 $3,845 $3,901 – –
12 $3,901 $3,901 $3,956 $4,015 –
13 $3,956 $3,956 $4,015 $4,074 $4,135
14 $4,015 $4,015 $4,074 $4,135 $4,197
15 $4,074 $4,074 $4,135 $4,197 $4,259
16 $4,135 $4,135 $4,197 $4,259 $4,324
17 $4,197 $4,197 $4,259 $4,324 $4,388
18 $4,259 $4,259 $4,324 $4,388 $4,456
19 $4,324 $4,324 $4,388 $4,456 $4,524
20 $4,388 $4,388 $4,456 $4,524 $4,596
21 $4,456 $4,456 $4,524 $4,596 $4,666
22 $4,524 $4,524 $4,596 $4,666 $4,737
23 $4,596 $4,596 $4,666 $4,737 $4,811
24 $4,666 $4,666 $4,737 $4,811 $4,886
25 $4,737 $4,737 $4,811 $4,886 $4,963
26 $4,811 $4,811 $4,886 $4,963 $5,042
27 $4,886 $4,886 $4,963 $5,042 $5,143
28 $4,963 $4,963 $5,042 $5,143 $5,246
29 $5,042 $5,042 $5,143 $5,246 $5,351
30 $5,143 $5,143 $5,246 $5,351 $5,458
31 $5,246 $5,246 $5,351 $5,458 $5,567
32 – $5,351 $5,458 $5,567 $5,678
33 – – $5,567 $5,678 $5,792
34 – – $5,678 $5,792 $5,908
35 – – – $5,908 $6,026
36 – – – $6,026 $6,147
37 – – – – $6,270
Principal and Assistant Principal Salary Schedules
Yrs of Prin V Prin VI Prin VII Prin VIII
Exp (44‑54) (55‑65) (66‑100) (101+)
14 $4,259 – – –
15 $4,324 – – –
16 $4,388 $4,456 – –
17 $4,456 $4,524 $4,666 –
18 $4,524 $4,596 $4,737 $4,811
19 $4,596 $4,666 $4,811 $4,886
20 $4,666 $4,737 $4,886 $4,963
21 $4,737 $4,811 $4,963 $5,042
22 $4,811 $4,886 $5,042 $5,143
23 $4,886 $4,963 $5,143 $5,246
24 $4,963 $5,042 $5,246 $5,351
25 $5,042 $5,143 $5,351 $5,458
26 $5,143 $5,246 $5,458 $5,567
27 $5,246 $5,351 $5,567 $5,678
28 $5,351 $5,458 $5,678 $5,792
29 $5,458 $5,567 $5,792 $5,908
30 $5,567 $5,678 $5,908 $6,026
31 $5,678 $5,792 $6,026 $6,147
32 $5,792 $5,908 $6,147 $6,270
33 $5,908 $6,026 $6,270 $6,395
34 $6,026 $6,147 $6,395 $6,523
35 $6,147 $6,270 $6,523 $6,653
36 $6,270 $6,395 $6,653 $6,786
37 $6,395 $6,523 $6,786 $6,922
38 $6,523 $6,653 $6,922 $7,060
39 – $6,786 $7,060 $7,201
40 – $6,922 $7,201 $7,345
41 – – $7,345 $7,492
SECTION 7.2.(c) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(d) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, and the 1999‑2000 school year for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(e) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 7.2.(f) There shall be no State requirement that superintendents in each local school unit shall receive in State‑paid salary at least one percent (1%) more than the highest paid principal receives in State salary in that school unit: Provided, however, the additional State‑paid salary a superintendent who was employed by a local school administrative unit for the 1992‑93 fiscal year received because of that requirement shall not be reduced because of this subsection for subsequent fiscal years that the superintendent is employed by that local school administrative unit so long as the superintendent is entitled to at least that amount of additional State‑paid salary under the rules in effect for the 1992‑93 fiscal year.
SECTION 7.2.(g) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
(1) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
(2) If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(i) Participants in an approved full‑time Masters in School Administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the masters program. Certification of eligible full‑time interns shall be supplied to the Department of Public Instruction by the Principal Fellows Program or a school of education where the intern participates in a full‑time Masters in School Administration.
SECTION 7.2.(j) During the 2002‑2003 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.3. The State Board of Education may expend up to five hundred thousand dollars ($500,000) for the 2002‑2003 fiscal year from unexpended funds for certified employees' salaries to pay expenses related to pending litigation.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.4. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand six hundred eighty‑six dollars and fifty cents ($2,686.50) per child for a maximum of 161,845 children for the 2002‑2003 school year. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) twelve and five‑tenths percent (12.5%) of the 2002‑2003 allocated average daily membership in the local school administrative unit.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.5. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of eight hundred eighty‑eight dollars ($888.00) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2002‑2003 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The State Board shall allocate funds for no more than 53,075 children for the 2002‑2003 school year.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT INFORMATION SYSTEM
SECTION 7.6. Section 28.32 of S.L. 2001‑424 reads as rewritten:
"SECTION 28.32. The State Board of Education may transfer up to one million dollars ($1,000,000) in funds appropriated for the Uniform Education Reporting System for the 2001‑2002 fiscal year and up to one million dollars ($1,000,000) in funds appropriated for the Uniform Education Reporting System for the 2002‑2003 fiscal year to the Department of Public Instruction to lease or purchase equipment necessary for the testing and implementation of NC WISE, the new student information system in the public schools."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
FUNDS TO IMPLEMENT THE ABCs OF PUBLIC EDUCATION
SECTION 7.7.(a) The State Board of Education shall use funds appropriated for State Aid to Local School Administrative Units for the 2002‑2003 fiscal year to provide incentive funding for schools that met or exceeded the projected levels of improvement in student performance during the 2001‑2002 school year, in accordance with the ABCs of Public Education Program. In accordance with State Board of Education policy:
(1) Incentive awards in schools that achieve higher than expected improvements may be up to:
a. One thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be up to:
a. Seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.7.(b) The State Board of Education may use funds appropriated to State Aid to Local School Administrative Units for assistance teams to low‑performing schools.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
REVISION OF READING AND WRITING ASSESSMENTS
SECTION 7.8.(a) Of the funds appropriated to State Aid to Local School Administrative Units, the State Board of Education may use up to one million dollars ($1,000,000) for the 2002‑2003 fiscal year to revise the reading and writing assessments.
SECTION 7.8.(b) Beginning with the 2002-2003 school year, the State Board of Education shall assure that a copy of a student's scored writing test is available to that student's parents, guardians, or others who have legal right to see that student's records. This subsection applies only to the State writing tests administered in fourth grade.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
FUNDS FOR INSTRUCTIONAL SUPPLIES
SECTION 7.9.(a) Section 28.39(a) of S.L. 2001‑424 applies only to funds appropriated for the 2001‑2002 fiscal year.
SECTION 7.9.(b) The Joint Legislative Education Oversight Committee shall study the viability of the State contracting with on‑line school supply vendors to allow teachers free access to a specific amount of school supplies, textbooks, test, and other classroom related materials. The Committee shall determine if the establishment of an on‑line debit account for each teacher is cost effective and an efficient way to meet the supply needs of teachers. The Committee shall report to the General Assembly its findings and any recommended action by January 15, 2003.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.10. State funds appropriated for mentor pay shall be used only to provide mentors for employees who are in State‑funded positions and who are either (i) newly certified teachers in their first two years of employment as teachers or (ii) entry‑level instructional support personnel who have not previously been teachers and who are in their first year of employment as instructional support personnel.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
CONVERSION OF ACCUMULATED LEAVE TIME
SECTION 7.11.(a) G.S. 115C‑302.1 reads as rewritten:
…
(c1) Conversion of
Leave. – Teachers may accumulate annual vacation leave days without any
applicable maximum until June 30 of each year. In order that only 30 days of
annual vacation leave carry forward to July 1, on June 30 of each year any
teacher or other personnel paid on the teacher salary schedule who has
accumulated more than 30 days of annual vacation leave shall:
(1) Convert to
either sick leave or to pay the excess accumulation that is the result of the
teacher having to forfeit annual vacation leave in order to attend required
workdays; and
(2) Convert to sick
leave the remaining excess accumulation.
Local boards of education shall
identify which days are accumulated due to the teacher forfeiting annual
vacation leave in order to attend required workdays. Actual payment for excess
accumulated annual vacation leave may be made after July 1.
(c2) Conversion of
Leave Upon Separation of Service. – Upon separation from service due to service
retirement, resignation, dismissal, reduction in force, or death, an employee
shall be paid in a lump sum for accumulated annual vacation leave not to exceed
a maximum of 30 days. Employees going onto term disability may exhaust annual
leave rather than be paid in a lump sum.
Any teacher or other personnel
paid on the teacher salary schedule who has more than 30 days of accumulated
annual vacation leave at the time the person retires shall:
(1) Convert to
either sick leave or to pay the excess accumulation that is the result of the
teacher having to forfeit annual vacation leave in order to attend required
workdays; and
(2) Convert to sick
leave the remaining excess accumulation which may be used for creditable
service at retirement in accordance with G.S. 135-4(e).
Local boards of education shall
identify which days are accumulated due to the teacher forfeiting annual
vacation leave in order to attend required workdays.
(c3) Teachers may accumulate annual vacation leave days without any applicable maximum until June 30 of each year. In order that only 30 days of annual vacation leave carry forward to July 1, on June 30 of each year any teacher or other personnel paid on the teacher salary schedule who has accumulated more than 30 days of annual vacation leave shall convert to sick leave the remaining excess accumulation.
Upon separation from service due to service retirement, resignation, dismissal, reduction in force, or death, an employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 30 days. In addition to the maximum of 30 days pay for accumulated annual leave, upon separation from service due to service retirement, any teacher or other personnel paid on the teacher salary schedule with more than 30 days of accumulated annual vacation leave may convert some or all of the excess accumulation to sick leave for creditable service towards retirement. Employees going onto term disability may exhaust annual leave rather than be paid in a lump sum.
.…"
SECTION 7.11.(b) This section applies only to leave days accruing after the date this act becomes law.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
RESA FUNDS SHALL BE USED FOR STAFF DEVELOPMENT
SECTION 7.12.(a) Funds allocated to local school administrative units for Regional Education and Technical Assistance Centers and not expended prior to July 1, 2002, shall remain available to local school administrative units for the 2002‑2003 fiscal year. These funds shall be transferred to the staff development funding allotment and shall be used only for staff development.
SECTION 7.12.(b) This section becomes effective June 30, 2002.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
BASE BUDGET REDUCTION TO DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.13.(a) Notwithstanding any other provision of law, the Department of Public Instruction may use salary reserve funds and other funds in the Department's continuation budget to transfer and reclassify positions as necessary to implement the reduction in force for the 2002‑2003 fiscal year. The Department of Public Instruction may transfer personnel operations to the Office of State Personnel, thereby eliminating four personnel positions.
SECTION 7.13.(b) The Office of State Budget and Management shall issue a Request for Proposals for an analysis of the structure and operation of the Department of Public Instruction that identifies potential efficiencies and savings in the operations of the Department. The analysis may consider consolidation of functions with other agencies and automation of functions.
The Request for Proposals may include contingency proposals based on potential savings.
The Office of State Budget and Management shall consult with the Joint Legislative Education Oversight Committee prior to the award of the contract.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.14.(a) Of the funds appropriated to the State Board of Education for the 2002‑2003 fiscal year, the Board may use up to ten million dollars ($10,000,000) for grants to local boards of education for replacement school buses under G.S. 115C‑249(c) and (d). In making these grants, the State Board of Education may impose any of the following conditions:
(1) The local board of education must use the funds only to make the first year's payment on a financing contract entered into pursuant to G.S. 115C‑528.
(2) The term of a financing contract entered into under this section shall not exceed three years.
(3) The local board of education must purchase the buses only from vendors selected by the State Board of Education and on terms approved by the State Board of Education.
(4) The State Board of Education shall solicit bids for the direct purchase of buses and for the purchasing of buses through financing. The State Board of Education may solicit separate bids for financing if the Board determines that multiple financing options are more cost‑efficient.
(5) A bus financed pursuant to this section must meet all federal motor vehicle safety regulations for school buses.
(6) Any other condition the State Board of Education considers appropriate.
SECTION 7.14.(b) It is the intent of the General Assembly to continue its annual appropriations to the State Board of Education for replacement school buses.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
CURRICULUM REVIEW REQUIRED ON A REGULAR BASIS
SECTION 7.15. G.S. 115C‑12(9a) reads as rewritten:
"(9a) Power to Develop Content Standards. – The Board shall develop a comprehensive plan to revise content standards and the standard course of study in the core academic areas of reading, writing, mathematics, science, history, geography, and civics. The Board shall involve and survey a representative sample of parents, teachers, and the public to help determine academic content standard priorities and usefulness of the content standards. A full review of available and relevant academic content standards that are rigorous, specific, sequenced, clear, focused, and measurable, whenever possible, shall be a part of the process of the development of content standards. The revised content standards developed in the core academic areas shall (i) reflect high expectations for students and an in‑depth mastery of the content; (ii) be clearly grounded in the content of each academic area; (iii) be defined grade‑by‑grade and course‑by‑course; (iv) be understandable to parents and teachers; (v) be developed in full recognition of the time available to teach the core academic areas at each grade level; and (vi) be measurable, whenever possible, in a reliable, valid, and efficient manner for accountability purposes.
High school course content standards shall include the knowledge and skills necessary to enter the workforce and also shall be aligned with the coursework required for admission to the constituent institutions of The University of North Carolina. The Board shall develop and implement a plan for end‑of‑course tests for the minimum courses required for admission to the constituent institutions. All end‑of‑course tests shall be aligned with the content standards.
The Board also
shall develop and implement an ongoing process to align State programs and
support materials with the revised academic content standards for each core
academic area every five years. on a regular basis. Alignment
shall include revising textbook criteria, support materials, State tests, teacher
and school administrator preparation, and ongoing professional development
programs to be compatible with content standards. The Board shall develop and
make available to teachers and parents support materials, including teacher and
parent guides, for academic content standards. The State Board of Education
shall work in collaboration with the Board of Governors of The University of
North Carolina to ensure that teacher and school administrator degree programs,
ongoing professional development and other university activity in the State's
public schools align with the State Board's priorities."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
CORPORATE TAX TRANSFER MORATORIUM
SECTION 7.16.(a) Notwithstanding the provisions of G.S. 115C‑489.1(b), the Secretary of Revenue shall not deposit any funds in the Critical School Facility Needs Fund during the 2002‑2003 fiscal year but shall deposit in the State Public School Fund the funds that would have otherwise been deposited in the Critical School Facility Needs Fund pursuant to G.S. 115C‑489.1(b).
SECTION 7.16.(b) Notwithstanding the provisions of G.S. 115C‑546.1(b), the Secretary of Revenue shall not remit any funds for credit to the Public School Building Capital Fund during the 2002‑2003 fiscal year but shall deposit in the State Public School Fund the funds that would have otherwise been deposited in the Public School Building Capital Fund pursuant to G.S. 115C‑546.1(b). The Department of Public Instruction may continue to use these funds to support six positions in the School Planning Division.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.17.(a) Supplemental Funding in Low‑Wealth Counties (Compliance with the Nonsupplant Requirement). – Section 28.6(i) of S.L. 2001‑424 reads as rewritten:
"SECTION
28.6.(i) Reports. – The State Board of Education shall report to the Joint
Legislative Education Oversight Committee prior to May 1, 2002, May
1, 2002, and May 1, 2003, if it determines that counties have
supplanted funds."
SECTION 7.17.(b) Small School System Supplemental Funding (Compliance with the Nonsupplant Requirement). – Section 28.7(e) of S.L. 2001‑424 reads as rewritten:
"SECTION 28.7.(e)
Reports. – The State Board of Education shall report to the Joint Legislative
Education Oversight Committee prior to May 1, 2002, May 1, 2002,
and May 1, 2003, if it determines that counties have supplanted funds."
SECTION 7.17.(c) Study of the Textbook Distribution System. – Section 28.24 of S.L. 2001‑424 reads as rewritten:
"SECTION 28.24. The State Board of Education shall contract for an analysis of the best and most efficient method to manage textbook distribution to the local schools. The Board shall prepare a Request for Proposals (RFP) outlining the scope of the analysis required and select a private consultant to perform the analysis. The analysis shall include such issues as timely delivery, total costs to the local school systems in providing textbooks to school buildings, use of currently available technology in the process, pricing practices among the textbook publishing industry, and other issues the Board considers relevant to a comprehensive review of the system.
Prior to award of a contract,
the State Board shall present the Request for Proposals to the Joint
Legislative Education Oversight Committee for comment. The State Board shall
report to the Joint Legislative Education Oversight Committee on the results of
the consultant’s analysis, including the Board’s recommendations for changes in
the current system. The Board shall make its final report to the Committee by April
1, 2002.February 1, 2003."
SECTION 7.17.(d) Study of the Salaries of School Food Service Workers and Custodians. – Section 28.34 of S.L. 2001‑424 reads as rewritten:
"SECTION 28.34.
The Joint Legislative Education Oversight Committee shall study the salaries of
food service workers and custodians employed by the public schools. The
Committee shall report its findings to the 2002 Regular Session of the 2001
General Assembly.2003 General Assembly."
SECTION 7.17.(e) Study of Salary Differentials for Instructional Support Personnel. – Section 28.37(b) of S.L. 2001‑424 reads as rewritten:
"SECTION 28.37.(b)
The Joint Legislative Education Oversight Committee shall study salary
differentials for instructional support personnel. In the course of the study,
the Committee shall consider salary differentials based on degrees and other
educational credentials, licensure or certification by State agencies,
licensure or certification by private entities, and other factors. The
Committee shall report its findings and recommendations to the 2002 Regular
Session of the 2001 General Assembly.2003 General Assembly."
SECTION 7.17.(f) Fairness in Testing (Study of the State's Testing Program). – Section 28.17(i) of S.L. 2001‑424 reads as rewritten:
"SECTION 28.17.(i) The Joint Legislative Education Oversight Committee shall study the State's testing program. As part of this study, the Committee shall consider:
(1) The number of tests currently mandated at the State level and the process and cost of developing, validating, and scoring them.
(2) Whether the State should consider the use of nationally developed tests as a substitute to State‑developed testing. In particular, the Committee shall determine whether this use would (i) affect the ABCs Program, (ii) adequately measure student achievement and performance, (iii) provide more than minimum levels of achievement, (iv) provide a better comparison to student achievement and performance in other states, (v) be practical for high school courses or higher level courses, (vi) reduce the need for field testing, and (vii) offer any cost savings to the State.
(3) The number of grades in which State tests are given. The Committee shall determine the necessity for testing all grades in third through eighth grades, whether a reduction in the grades tested would affect the receipt of federal money, and the extent to which a reduction would impair the State's ability to identify schools under the ABCs Program.
(4) The high school courses for which State tests are given and whether there is an appropriate distribution of tests across grades nine through 12 and that test an appropriate array of the minimum courses required for admission to the constituent institutions of The University of North Carolina. In addition, the Committee shall examine whether students who take higher level courses and students in 12th grade are held accountable for their academic growth and performance.
(5) The advantages and disadvantages of using a composite of end‑of‑course tests or other tests such as the SAT, AP tests, or other nationally standardized tests in high school rather than developing a high school exit exam. If the Committee finds a high school exit exam is preferable, then it shall determine whether it must be administered to all students or limited to certain students, for example, those who do not take the SAT or a certain number of courses for which there are end‑of‑course tests.
(6) The extent to which additional testing, including field testing, practice testing, and locally mandated testing, is occurring and whether this should be limited or prohibited.
(7) Evaluate alternative schools to determine how educational achievement is being advanced in these alternative school programs and that placement in these programs is to improve student performance rather than improve the performance of the school in which the student originally was assigned.
(7a) The extent to which the State tests assist in compliance with the assessment and accountability provisions of the federal "No Child Left Behind" law and regulations, the ABC's model, and the Leandro rulings.
(8) Any other issue the Committee considers relevant.
The Committee shall report its
findings and any recommendations, including recommended legislation, to the 2002
Regular Session of the 2001 General Assembly.2003 General Assembly."
SECTION 7.17.(g) Study of Professional Development for School Personnel. – Section 31.4(d) of S.L. 2001‑424 reads as rewritten:
"SECTION
31.4.(d) The Joint Legislative Education Oversight Committee shall review
the consultant's findings and recommendations and shall submit to the 2002
Regular Session of the 2001 General Assembly 2003 General Assembly recommendations
to streamline, reorganize, and improve the delivery of professional development
for public school professionals. The recommendations may address revisions to
program governance and mission, reallocation of funds, methods of program
delivery, and methods to institute ongoing program evaluation."
Requested by: Representative Shubert
performance‑based licensure program
SECTION 7.18.(a) G.S. 115C‑296(b) reads as rewritten:
"(b) (See Note) It is the policy of the State of North Carolina to maintain the highest quality teacher education programs and school administrator programs in order to enhance the competence of professional personnel certified in North Carolina. To the end that teacher preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, shall continue to refine the several certification requirements, standards for approval of institutions of teacher education, standards for institution‑based innovative and experimental programs, standards for implementing consortium‑based teacher education, and standards for improved efficiencies in the administration of the approved programs. The certification program shall provide for initial certification after completion of preservice training, continuing certification after three years of teaching experience, and certificate renewal every five years thereafter.
The State Board of Education, as lead agency in coordination with the Board of Governors of The University of North Carolina and any other public and private agencies as necessary, shall continue to raise standards for entry into teacher education programs.
The State Board of Education, in consultation with the Board of Governors of The University of North Carolina, shall evaluate and develop enhanced requirements for continuing certification. The new requirements shall reflect more rigorous standards for continuing certification and to the extent possible shall be aligned with quality professional development programs that reflect State priorities for improving student achievement. These rigorous standards shall not include a portfolio requirement for teachers.
The State Board of Education, in consultation with local boards of education and the Board of Governors of The University of North Carolina, shall reevaluate and enhance the requirements for renewal of teacher certificates. The State Board shall consider modifications in the certificate renewal achievement and to make it a mechanism for teachers to renew continually their knowledge and professional skills. The State Board shall adopt new standards for the renewal of teacher certificates by May 15, 1998.
The standards for approval of institutions of teacher education shall require that teacher education programs for students who do not major in special education include demonstrated competencies in the identification and education of children with learning disabilities. The State Board of Education shall incorporate the criteria developed in accordance with G.S. 116‑74.21 for assessing proposals under the School Administrator Training Program into its school administrator program approval standards.
All North Carolina institutions of higher education that offer teacher education programs, masters degree programs in education, or masters degree programs in school administration shall provide performance reports to the State Board of Education. The performance reports shall follow a common format, shall be submitted according to a plan developed by the State Board, and shall include the information required under the plan developed by the State Board."
SECTION 7.18.(c) Section 28.19(b) of S.L. 2001‑424 is repealed.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
STUDY OF COORDINATION OF CENTRAL OFFICE DUTIES
SECTION 7.19. The State Board of Education shall study whether local school administrative units can effectively and efficiently coordinate central office operations and functions between systems. The State Board shall report to the Senate Appropriations Committee on Education/Higher Education and the House Appropriations Subcommittee on Education prior to March 1, 2003, on how base funding formulas for central office administrations can be reduced based on the coordination of duties.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM
SECTION 7.20.(a) If the State Board of Education does not have sufficient resources in the ADM Contingency Reserve line item to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual, the State Board of Education may use funds appropriated to State Aid for Public Schools for this purpose.
SECTION 7.20.(b) If the first‑month average daily membership in a local school administrative unit is at least two percent (2%) or 100 students lower than the anticipated average daily membership used for allotments for the unit, the State Board of Education shall reduce allotments for the unit. The reduced allotments shall be based on the first‑month average daily membership plus one‑half of the number of students overestimated in the anticipated average daily membership.
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.21. Notwithstanding Section 8.27(f) of S.L. 1997‑443, the State Board of Education shall review the requirements of the federal "No Child Left Behind Act of 2001." (20 USCS §§ 6301 et seq.) and any regulations adopted to implement this legislation before the Board completes the development of the high school exit examinations and implements the high school exit examinations. The Board shall consider whether revisions to the State testing program and School‑Based Management and Accountability Program are necessary to comply with federal requirements. The Board shall not adopt any revisions prior to reporting them and a proposed timetable for their implementation to the Joint Legislative Education Oversight Committee.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
CLARIFICATION TO PROVISION ON ADDRESSING TEACHER SHORTAGE
SECTION 7.22. Section 29.2(a)(2) of S.L. 2001‑424 reads as rewritten:
"(2) The sum of $1,500,000 for the 2001‑2002 fiscal year and the sum of $1,500,000 for the 2002‑2003 fiscal year shall be used to provide annual bonuses of one thousand eight hundred dollars ($1,800) to teachers certified in and teaching in the fields of mathematics, science, or special education in grades 6 through 12 at middle and high schools with eighty percent (80%) or more of the students eligible for free or reduced lunch or with fifty percent (50%) or more of students performing below grade level in Algebra I and Biology. The bonus shall be paid monthly with matching benefits. Teachers shall remain eligible for the bonuses so long as they continue to teach in one of these disciplines at a school that was eligible for the bonus program when the teacher first received the bonus."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SUPPORT FOR THE BUSINESS SYSTEMS IMPROVEMENT PROJECT (BSIP)
SECTION 7.23. The State Board of Education may use up to one hundred twenty thousand dollars ($120,000) of driver education funds for the 2002‑2003 fiscal year for software maintenance and other support for the Business Systems Improvement Project (BSIP), a new school bus transportation system operated by the Department of Transportation.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
EXTEND ALTERNATIVE LATERAL ENTRY PROGRAM
SECTION 7.24. Section 2 of S.L. 1998‑226 reads as rewritten:
"Section 2. This act
is effective when it becomes law and expires September 1, 2002,September
1, 2006, except that it remains effective for any teacher employed under
this act before September 1, 2002. September 1, 2006."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
additional teacher positions for kindergarten and first grade
SECTION 7.25.(a) The class size allotment for kindergarten for the 2002‑2003 school year shall be one teacher for every 17 students. The maximum class size for kindergarten for the 2002‑2003 fiscal year shall be one less than the class size limits established by the State Board of Education for the 2001‑2002 school year, which shall be an average kindergarten class size of 21 students and no more than 24 students in a classroom.
The class size allotment for first grade for the 2002‑2003 school year shall be one teacher for every 18 students. The average class size for first grade within a local school administrative unit shall not exceed 21 students. The maximum class size for first grade for individual classes for the 2002‑2003 fiscal year shall be 24 students.
SECTION 7.25.(b) For the 2002‑2003 school year only, a local school administrative unit shall use these additional teacher positions to reduce class size in kindergarten and first grade.
SECTION 7.25.(c) For the 2003‑2004 school year and subsequent school years, the State Board of Education shall reduce the maximum class size limits for kindergarten by two students from the limits in effect for the 2001‑2002 school year. These limits are based on an allotment ratio of one teacher for every 17 students.
For the 2003‑2004 school year and subsequent school years, the maximum class size limit for first grade shall be based on an allotment ratio of one teacher for every 18 students.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
LOCAL EDUCATION AGENCY FLEXIBILITY
SECTION 7.26. Within seven days of the date this act becomes law, the State Board of Education shall notify each local school administrative unit of the amount the unit must reduce from State General Fund appropriations. The State Board shall determine the amount of the reduction for each unit on the basis of average daily membership.
Each unit shall report to the Department of Public Instruction on the discretionary budget reductions it has identified for the unit within 30 days of the date this act becomes law.
The General Assembly urges local school administrators to make every effort to reduce spending whenever and wherever such budget reductions are appropriate as long as the targeted reductions do not directly impact classroom services or any services for students at risk or children with special needs, including those services or supports that are called for in students' Personal Education Plans (PEP) and/or Individual Education Plans (IEP). If reductions to these allotment categories are necessary in order to meet the reduction target, the local board of education shall submit an explanation of the anticipated impact of the reductions to student services along with the budget reductions to the Department of Public Instruction.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
BUSINESS AND EDUCATION TECHNOLOGY ALLIANCE
SECTION 7.27.(a) There is created the State Board of Education's Business and Education Technology Alliance.
SECTION 7.27.(b) The Business and Education Technology Alliance shall be composed of 27 members who have knowledge and interest in ensuring that the effective use of technology is built into the North Carolina School System for the purpose of preparing a globally competitive workforce and citizenry for the 21st century. These members shall be appointed as follows:
(1) The Superintendent of Public Instruction or his or her designee;
(2) One member of the State Board of Education appointed by the chair of the State Board of Education;
(3) One parent of a public school child appointed by the State Board of Education after receiving recommendations from the North Carolina State Parent Teacher Association;
(4) Two members of the Senate appointed by the President Pro Tempore of the Senate;
(5) Two members of the House of Representatives appointed by the Speaker of the House of Representatives;
(6) One member of a local board of education who represents a local education agency (LEA) that has successfully incorporated technology into its schools, who is appointed by the Governor, after receiving recommendations from the North Carolina School Boards Association;
(7) One member of a local board of education who represents a local education agency (LEA) that has limited access to technology, who is appointed by the Governor, after receiving recommendations from the North Carolina School Boards Association;
(8) Two at‑large members appointed by the Governor;
(9) One representative of business and industry appointed by the State Board of Education after receiving recommendations from the North Carolina Citizens for Business and Industry;
(10) Four members appointed by the President Pro Tempore of the Senate. In making these appointments the President Pro Tempore is encouraged to consider appointing a local school superintendent or a local school administrator who represents a local education agency that has limited access to technology, a school principal who works in a school that successfully incorporates technology into its instructional program, a school teacher who works in a school with limited access to technology, and a technology director who represents a local education agency (LEA) that has successfully incorporated technology into its schools. Professional associations representing school administrators and professional associations representing teachers may recommend appointees to the President Pro Tempore;
(11) Four members appointed by the Speaker of the House of Representatives. In making these appointments the Speaker of the House of Representatives is encouraged to consider appointing a local school superintendent or a local school administrator from a local education agency that has successfully incorporated the use of technology into its instructional programs, a school principal working in a school with limited access to technology, a school teacher who has successfully incorporated the use of technology into classroom instruction, and a technology director who represents a local education agency (LEA) that has limited access to technology. Professional associations representing school administrators and professional associations representing teachers may recommend appointees to the Speaker of the House of Representatives;
(12) One chancellor or his or her designee of institutions of higher education who has demonstrated effective and innovative use of technology for education, appointed by the Board of Governors of The University of North Carolina;
(13) One president or his or her designee of the Community College System who has demonstrated effective and innovative use of technology for education, appointed by the State Board of Community Colleges;
(14) Two county commissioners, one of whom represents a county that has successfully incorporated technology into its schools and community, who are appointed by the State Board of Education, after receiving recommendations from the North Carolina Association of County Commissioners;
(15) Two representatives of technology businesses who have either successfully developed innovative technology programs for education or have partnered with a local education agency (LEA) to develop a technology‑based education environment in that LEA, who are appointed by the State Board of Education, after receiving recommendations from North Carolina Electronics and Information Technologies Association and the North Carolina Citizens for Business and Industry; and
(16) One representative of the Information Resource Management Commission appointed by the Commission's Chair.
SECTION 7.27.(c) Each of the following organizations or agencies shall select a representative from its organization or agency to serve as a nonvoting member to the Alliance. These members shall provide information to the Alliance about technology in North Carolina: Rural Internet Access Authority; Information and Technology Services, North Carolina Department of Public Instruction; Office of State Information Technology Services, Office of the Governor.
SECTION 7.27.(d) Members of the Business and Education Technology Alliance shall serve for two‑year terms. All members of the Alliance shall be voting members unless they are designated as ex officio members. The officer who made the initial appointment shall fill vacancies in the appointed membership. The member of the State Board of Education appointed to the Alliance by the chair of the State Board of Education shall serve as chair of the Alliance.
SECTION 7.27.(e) Members of the Business and Education Technology Alliance shall receive travel and subsistence expenses in accordance with the provisions of G.S. 120‑3.1, 138‑5, and 138‑6.
SECTION 7.27.(f) The Business and Education Technology Alliance shall:
(1) Advise the State Board of Education on the development of a vision for a technologically literate citizen in 2025. This vision should contain the educational standards needed to accomplish that vision, the educational uses of technology to accomplish that vision, and a plan for educating the community, educators, and business people about the vision and educational uses of technology. The vision and the plan for educating the public about the vision may include:
a. Various models and frameworks of the high quality and effective use of technology for education purposes including those students who have not learned with traditional approaches. The models may include the Cumberland County Schools Web Academy, the Virtual High School, and Nova Net.
b. Opportunities for teachers to experience the uses of technology in work and business settings, which is the world for which they are preparing students to work.
c. Production of multimedia presentations such as videos, commercials, and publications that help citizens, students, and educators see and understand the current and future power of technology for educating our children and impacting our lives.
(2) Advise the State Board of Education on the development of a technology infrastructure, delivery, and support system that provides equity and access to all segments of the population in North Carolina. The infrastructure, delivery, and support system may include:
a. Opportunities for access to high‑speed connectivity to the Internet which impacts on the quality of instruction that can be provided for students at school and in the community.
b. Technology networks that enable communities to encompass the student and his/her family while maintaining the rights to privacy for all citizens, i.e., a social service, health, education, and mental health network. This network will increase collaboration among agencies and provide a coordinated, systemic service approach.
c. Continue to evaluate the status of current technology systems and structures from the State to local level as it relates to employing technology for improving instruction.
d. Continue to provide access to technology equipment and infrastructure at home, school, and in the community such as extended hours of operation for schools and other community facilities and on‑loan laptop computers for student and parent use.
e. Continue to develop surveys that provide information about the types and results of technological tools utilized by teachers, students, and others at school, in the community, and home.
f. Sufficient personnel to maintain the operation of information technology systems.
g. Coordination with regional economic development planners to position local education agencies as an integral part of economic development.
(3) Advise the State Board of Education on the development of professional development programs for teachers to successfully implement and use technology in public schools for all students. These programs should also develop their leadership skills so that they can use technology as a tool to support the rethinking of the core business of schools: student learning. The professional development programs may include:
a. Models of staff development from the State that are considered state of the art, support the vision for technology, and that could be used by local districts to train their staffs.
b. Designated time for professional development for using technology as well as skills for using technology as a delivery for curriculum and instructional programs.
c. Collegial planning time so that colleagues can coach and support each other in learning new ways in which to think about instruction.
d. Teacher and administrator preparation and other programs that ensure the Department of Public Instruction's Technology Foundation Standards for Teachers and Administrators in higher education are incorporated into classroom instruction.
e. Training teachers with skill sets to teach technical courses that are in growing demand to function at home and work.
f. Increase opportunities for sharing best practices in all areas of instruction.
g. Increase opportunities for learning how to use technology to customize instruction for all students.
h. Increase opportunities for learning how to use technology to diagnose student learning.
(4) Advise the State Board of Education on the development of a Funding and Accountability system to ensure statewide access and equity. The Funding and Accountability system may include:
a. Public‑private partnerships.
b. Identification of resources and the cost of those resources.
c. Funding to keep hardware/software current.
d. Evaluating progress toward realizing the technology vision.
e. Evaluating the impact of various technology initiatives on alleviating some of the State's education and economic development problems.
f. Incentives to encourage risk taking and innovative uses of technology.
g. Funding for only those initiatives that are well‑planned, demonstrate high commitment, and have a solid evaluation component.
(5) Report annually to the State Board of Education on the progress of the Alliance's recommendations for education technology in the public schools on the first Friday in December. This report may contain a summary of recommendations for changes to any law, rule, and policy that would improve implementing education technology in the public schools.
(6) Report annually to the Joint Legislative Education Oversight Committee in the General Assembly on the recommendations for education technology in the public schools on the first Friday in January. This report may contain a summary of recommendations for changes to any law, rule, and policy that would improve implementing education technology in the public schools.
SECTION 7.27.(g) Federal funds and private funds may be used to support the Alliance. State funds shall not be used to support the Alliance.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Gibson, Easterling, Oldham, Redwine, Thompson
high priority school Program waiver
SECTION 7.28. Section 29.6(c) of S.L. 2001‑424 reads as rewritten:
"SECTION 29.6.(c) If
a local board of education determines that the local school administrative unit
is unable to implement the class‑size limitation in accordance with this
section for any high‑priority school located in the unit, the local board
may request a waiver for the school for the 2001‑2002 school year.year
and for the 2002-2003 school year. The request shall include the
documentation required in G.S. 115C‑105.26(a). If the State Board grants
the waiver, the State Board shall withdraw the additional teacher positions
allotted to the local school administrative unit for the school and reinstate
the regular allotment for teacher assistants for the school."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
AUTHORIZING THE USE OF MENTOR FUNDS FOR FULL-TIME MENTORS
SECTION 7.29. Section 28.18 of S.L. 2001-424 reads as rewritten:
"SECTION
28.18.(a) The State Board of Education shall establish a pilot program
to permit the Charlotte‑Mecklenburg School Administrative Unit, the
Forsyth County School Administrative Unit, and the Wake County School
Administrative Unit permit all local school administrative units to
use funds allocated for mentors for full‑time mentors.
Funds allocated for mentors in
these units shall be used only for teachers and instructional support
personnel assigned to newly certified teachers, second‑year teachers who
were assigned mentors during the prior school year, or as authorized by Section
28.31 of this act, and entry‑level instructional support personnel who
have not previously been teachers. These funds shall be used only for:
(1) Salary supplements to teachers and instructional support personnel who are serving as mentors. The amount of the salary supplement shall not be based on the number of teachers or instructional support personnel to whom the mentor is assigned; or
(2) Payments to teachers or instructional support personnel who are employed solely to serve as mentors. An individual employed solely to serve as a mentor shall receive a payment for each individual, up to 15 individuals, to whom the mentor is assigned. The amount of each such payment shall be the same as the amount of the salary supplement for a mentor.
SECTION
28.18.(b) The Charlotte‑Mecklenburg Board of Education, the
Forsyth County Board of Education, and the Wake County Board of Education shall
report to the State Board of Education shall evaluate on an annual
basis on the impact that the mentor program has had on retention of teachers.
The State Board shall report on this information to the Joint Legislative
Education Oversight Committee."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.30. G.S. 115C‑174.12 reads as rewritten:
"§ 115C‑174.12. Responsibilities of agencies.
(a) The State Board of
Education shall establish policies and guidelines necessary for minimizing the
time students spend taking tests administered through State and local testing programs
programs, for minimizing the frequency of field testing at any one
school, and for otherwise carrying out the provisions of this Article. These
policies shall reflect standard testing practices to insure reliability and
validity of the sample testing. The results of the field tests shall be used
in the final design of each test. The State Board of Education's policies
regarding the testing of children with disabilities shall (i) provide broad
accommodations and alternate methods of assessment that are consistent with a
child's individualized education program and section 504 (29 U.S.C. § 794)
plans, (ii) prohibit the use of statewide tests as the sole determinant of
decisions about a child's graduation or promotion, and (iii) provide parents
with information about the Statewide Testing Program and options for students
with disabilities. The State Board shall report its proposed policies and
proposed changes in policies to the Joint Legislative Education Oversight
Committee prior to adoption.
The State Board of Education may appoint an Advisory Council on Testing to assist in carrying out its responsibilities under this Article.
(b) The Superintendent of Public Instruction shall be responsible, under policies adopted by the State Board of Education, for the statewide administration of the testing program provided by this Article.
(b1) The Superintendent shall notify local boards of education by October 1 of each year of any field tests that will be administered in their schools during the school year, the schools at which the field tests will be administered, and the specific field tests that will be administered at each school.
(c) Local boards of education shall cooperate with the State Board of Education in implementing the provisions of this Article, including the regulations and policies established by the State Board of Education. Local school administrative units shall use the annual and competency testing programs to fulfill the purposes set out in this Article. Local school administrative units are encouraged to continue to develop local testing programs designed to diagnose student needs further."
Requested by: Representative Yongue
DRIVERS EDUCATION FUNDING
SECTION 7.31. From funds appropriated by this act to the Department of Transportation, the Department shall pay for the increased costs for drivers education due to the projected increase in average daily membership in the ninth grade drivers education program.
In allocating funds for driver training, the State Board of Education shall consider the needs of small and low-wealth local school administrative units.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
intervention strategies for continually low‑performing schools
SECTION 7.32. Section 29.5 of S.L. 2001‑424 reads as rewritten:
"SECTION 29.5. Of funds appropriated from the General Fund to State Aid to Local School Administrative Units, the sum of one million eight hundred seven thousand two hundred fifty‑six dollars ($1,807,256) for the 2001‑2002 fiscal year and the sum of one million nine hundred eighty‑six thousand six hundred ninety‑one dollars ($1,986,691) for the 2002‑2003 fiscal year shall be used to provide the State's chronically low‑performing schools with tools needed to dramatically improve student achievement. These funds shall be used to implement any of the following strategies at the schools that have not previously been implemented with State or other funds:
(1) The sum of $471,366 for the 2001‑2002 fiscal year and the sum of $471,366 for the 2002‑2003 fiscal year shall be used to reduce class size at a continually low‑performing school to ensure that the number of teachers allotted for students in grades four and five is one for every 17 students; and
(2) The sum of $1,207,595 for the 2001‑2002 fiscal year and the sum of $1,207,595 for the 2002‑2003 fiscal year shall be used to reduce class size at a continually low‑performing school to ensure that the number of teachers allotted in grades six through eight is one for every 17 students, and that the number of teachers allotted in grades nine through twelve is one for every 20 students; and
(3a) The sum of $128,295 for fiscal year 2001‑2002 shall be used to extend teachers' contracts at these schools by five days for staff development, including methods to individualize instruction in smaller classes and preparation for the 2001‑2002 school year. Of these funds, the sum of $10,175 shall be used for the extension of contracts of the additional teachers in grades four and five provided in subdivision (1) of this section and the sum of $118,120 shall be used for the extension of all teachers' contracts at continually low‑performing middle and high schools for the 2001‑2002 school year; and
(3b) The sum of $307,730 for fiscal year 2002‑2003 shall be used to extend teachers' contracts for a total of 10 days, including five days of additional instruction with related costs for other than teachers' salaries for the 2002‑2003 school year. Of these funds, the sum of $24,405 shall be used for the extension of contracts of the additional teachers in grades four and five provided in subdivision (1) of this section and the sum of $283,325 shall be used for the extension of all teachers' contracts at continually low‑performing middle and high schools for the 2002‑2003 school year.
Notwithstanding any other
provision of law, the State Board of Education may implement intervention
strategies for the 2001‑2002 and 2002-2003 school year years
that it deems appropriate."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 7.33. The Joint Legislative Education Oversight Committee shall study the extent to which standardized tests are utilized in Vocational Education classes for the purpose of grading students. The Committee shall examine whether appropriate grading weight also is assigned to the assessment of actual student skill performance and knowledge. The Committee shall report its findings, which may include legislative recommendations, to the 2003 General Assembly.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Michaux, Easterling, Oldham, Redwine, Thompson
Additional Purchasing Flexibility for all school systems
SECTION 7.35. Purchases by local school administrative units of supplies, equipment, and materials valued at two thousand five hundred dollars ($2,500) or less are not subject to the provisions of G.S. 115C‑522.1 or Article 3 of Chapter 143 of the General Statutes, except for G.S. 143‑48 and G.S. 143‑58.1.
Requested by: Representatives Easterling, Oldham, Redwine, Thompson
Availability of Information on employee qualifications
SECTION 7.36. G.S. 115C‑319 reads as rewritten:
"§ 115C‑319. Personnel files not subject to inspection.
Personnel files of employees of local boards of education, former employees of local boards of education, or applicants for employment with local boards of education shall not be subject to inspection and examination as authorized by G.S. 132‑6. For purposes of this Article, a personnel file consists of any information gathered by the local board of education which employs an individual, previously employed an individual, or considered an individual's application for employment, and which information relates to the individual's application, selection or nonselection, promotion, demotion, transfer, leave, salary, suspension, performance evaluation, disciplinary action, or termination of employment wherever located or in whatever form.
Nothing in this section shall be construed to prevent local boards of education from disclosing the certification status and other information about employees as required by Section 1111(h)(6) of P.L. 107-110."
Requested by: Representative Wright
duties of school counselors
SECTION 7.37.(a) Article 21 of Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-316.1. Duties of school counselors.
School counselors shall implement a comprehensive developmental school-counseling program in their schools. Counselors shall spend at least eighty percent (80%) of their work time providing direct services to students. These direct services shall consist of:
(1) Delivery of the school guidance curriculum through large-group guidance, interdisciplinary curriculum development, group activities, and parent workshops;
(2) Individual student planning through individual or small-group assistance and individual or small-group advisement; and
(3) Responsive services through consultation with students, families and staff, individual and small-group counseling, crisis counseling, referrals, and peer facilitation.
Direct services do not include the coordination of standardized testing.
During the remainder of their work time, counselors shall spend adequate time on school-counseling program support activities that consist of professional development; consultation, collaboration, and training; and program management and operations."
SECTION 7.37.(b) Prior to the 2003-2004 school year, each local board of education shall develop a transition plan for implementing subsection (a) of this act, within existing resources, by reassigning duties within its schools.
The State Board of Education shall distribute guidelines to all school systems on the implementation of this section.
SECTION 7.37.(c) The State Board shall report to the Joint Legislative Education Oversight Committee on the implementation of this section.
SECTION 7.37.(d) Subsection (a) of this section is effective when it becomes law and applies to school years beginning with the 2003-2004 school year.
Requested by: Representative Creech
definition of retired teacher modified
SECTION 7.38. G.S. 115C-325(a)(5a) reads as rewritten:
"§ 115C‑325. System of employment for public school teachers.
(a) Definition of Terms. – As used in this section unless the context requires otherwise:
(5a) (Effective until June
30, 2003) "Retired teacher" means a beneficiary of the Teachers'
and State Employees' Retirement System of North Carolina who has been retired
at least six months, has not been employed in any capacity, other than as a
substitute teacher or a part‑time tutor, with a local board of education
for at least six months, immediately preceding the effective date of
reemployment, is determined by a local board of education to have had
satisfactory performance during the last year of employment by a local board of
education, and who is employed to teach as provided in G.S. 135‑3(8)c. A
retired teacher shall be treated the same as a probationary teacher except that
(i) a retired teacher is not eligible for career status.status
and (ii) the
performance of a retired teacher who had attained career status prior to
retirement shall be evaluated in accordance with a local board of education's
policies and procedures applicable to career teachers."
Requested by: Representative Warner
LIMIT CERTIFICATION RENEWAL FOR RETIRED TEACHERS
SECTION 7.39. G.S. 115C‑296(b) reads as rewritten:
"(b) It is the policy of
the State of North Carolina to maintain the highest quality teacher education
programs and school administrator programs in order to enhance the competence
of professional personnel certified in North Carolina. To the end that teacher
preparation programs are upgraded to reflect a more rigorous course of study,
the State Board of Education, as lead agency in coordination and cooperation
with the University Board of Governors, the Board of Community Colleges and
such other public and private agencies as are necessary, shall continue to
refine the several certification requirements, standards for approval of
institutions of teacher education, standards for institution‑based
innovative and experimental programs, standards for implementing consortium‑based
teacher education, and standards for improved efficiencies in the
administration of the approved programs. The certification program shall
provide for initial certification after completion of preservice training,
continuing certification after three years of teaching experience, and
certificate renewal every five years thereafter.thereafter, until the
retirement of the teacher. The last certificate renewal received prior to
retirement shall remain in effect for seven years after retirement.
The State Board of Education, as lead agency in coordination with the Board of Governors of The University of North Carolina and any other public and private agencies as necessary, shall continue to raise standards for entry into teacher education programs.
The State Board of Education, in consultation with the Board of Governors of The University of North Carolina, shall evaluate and develop enhanced requirements for continuing certification. The new requirements shall reflect more rigorous standards for continuing certification and to the extent possible shall be aligned with quality professional development programs that reflect State priorities for improving student achievement.
The State Board of Education, in consultation with local boards of education and the Board of Governors of The University of North Carolina, shall reevaluate and enhance the requirements for renewal of teacher certificates. The State Board shall consider modifications in the certificate renewal achievement and to make it a mechanism for teachers to renew continually their knowledge and professional skills. The State Board shall adopt new standards for the renewal of teacher certificates by May 15, 1998.
The standards for approval of institutions of teacher education shall require that teacher education programs for students who do not major in special education include demonstrated competencies in the identification and education of children with learning disabilities. The State Board of Education shall incorporate the criteria developed in accordance with G.S. 116‑74.21 for assessing proposals under the School Administrator Training Program into its school administrator program approval standards.
All North Carolina institutions of higher education that offer teacher education programs, masters degree programs in education, or masters degree programs in school administration shall provide performance reports to the State Board of Education. The performance reports shall follow a common format, shall be submitted according to a plan developed by the State Board, and shall include the information required under the plan developed by the State Board."
Requested by: Representative Howard
ON-LINE SERVICES AVAILABLE FOR ALL
SECTION 7.40. By October 1, 2002, the State Board of Education shall assure that the on-line resources of the Department of Public Instruction available to students enrolled in public schools are made available without charge to students enrolled in schools subject to Article 39 of Chapter 115C of the General Statutes. By October 1, 2002, the State Board of Education and the Board of Governors of The University of North Carolina shall assure that the on-line resources available to parents and teachers of public school students also are made available without charge to parents and teachers of students enrolled in schools subject to Article 39 of Chapter 115C of the General Statutes.
Requested by: Representative Thompson
certification of school nurses
SECTION 7.41.(a) G.S. 115C-315 is amended by adding the following new subsection to read:
"(d1) Certification for School Nurses. – Notwithstanding any other law or rule, school nurses employed in the public schools shall hold a current North Carolina registered nurse license. School nurses employed in the public schools shall not be required to obtain national certification."
SECTION 7.41.(b) This section is effective when it becomes law, and applies to school nurses employed on or after July 1, 1993.
Requested by: Representative Yongue
funds for the total quality education program
SECTION 7.42. The State Board of Education shall reduce allocations to local school administrative units for central office administration for the 2002-2003 fiscal year by five thousand dollars ($5,000). The State Board shall use these funds for the Total Quality Education Program, a nonpublic school agency.
The Joint Legislative Education Oversight Committee shall continue to review how nonpublic school agencies, such as the Total Quality Education Program, are helping local school administrative units enhance student performance.
The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee on the use of State and nonstate funds by local boards of education to contract with nonpublic school agencies.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
COMMUNITY COLLEGE FUNDING FLEXIBILITY
SECTION 8.1. A local community college may use all State funds allocated to it, except for Literacy Funds and Funds for New and Expanding Industries, for any authorized purpose that is consistent with the college's Institutional Effectiveness Plan. Each local community college shall include in its Institutional Effectiveness Plan a section on how funding flexibility allows the college to meet the demands of the local community and to maintain a presence in all previously funded categorical programs.
No more than two percent (2%) systemwide shall be transferred from faculty salaries without the approval of the State Board of Community Colleges. The State Board shall report on any such transfers above two percent (2%) systemwide to the Joint Legislative Commission on Governmental Operations at its next meeting.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine
HAYWOOD REGIONAL HIGH TECHNOLOGY CENTER
SECTION 8.4.(a) The Office of State Budget and Management shall transfer funding for Haywood Regional High Technology Center from the special allotments line item to a new line item entitled "Haywood Regional High Technology Center".
SECTION 8.4.(b) The State Board of Community Colleges shall study the operations of the Haywood Regional High Technology Center, the economic impact of the Center on the region, and the costs of the Center to determine whether similar centers should be created in other regions of the State. The Board shall report the results of this study to the Joint Legislative Education Oversight Committee prior to March 1, 2003.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 8.5.(a) Academic Support Supplement. – Effective July 1, 2002, funding for the Academic Support Supplement shall no longer be included as part of the curriculum instruction formula but shall be allocated from a separate line item in State Aid fund code 1600. The State Board of Community Colleges shall allocate these funds to the colleges on the basis of the budgeted FTE curriculum student enrollment for the current fiscal year.
Nothing in this section shall be construed to provide or to indicate the intent of the General Assembly to provide additional funding for the Academic Support Supplement.
SECTION 8.5.(b) Formula Modification Restrictions. – The State Board of Community Colleges may examine and recommend to the General Assembly new State Aid allocation options that more closely align the allocation and expenditure of State‑appropriated resources. The State Board shall report any recommendations regarding modifications to the formula to the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Subcommittee on Education, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
temporary rules on fte for training provided to law enforcement PERSONNEL and on generic fees
SECTION 8.6.(a) The State Board of Community Colleges may adopt temporary rules clarifying the conditions under which community colleges may earn budgeted FTE for training provided to personnel in law enforcement, fire and rescue services, and emergency medical service agencies.
SECTION 8.6.(b) The State Board of Community Colleges may adopt temporary rules clarifying the provisions of 23NCAC2(D).0201(c)(1) and (c)(2) pertaining to the definition of generic fees and specific fees charged to students attending community colleges.
SECTION 8.6.(c) This section constitutes a recent act of the General Assembly within the meaning of G.S. 150B‑21.1(a)(2). Prior to adopting temporary rules pursuant to this section, the State Board of Community Colleges shall:
(1) Publish the proposed temporary rules in the North Carolina Register at least 30 days prior to adopting the temporary rules.
(2) Notify persons on its mailing list maintained pursuant to G.S. 150B‑21.2(d) and any other interested parties of its intent to adopt temporary rules.
(3) Hold at least one public hearing on the proposed temporary rules.
SECTION 8.6.(d) This section becomes effective when this act becomes law and expires 180 days after that date.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
COMMUNITY COLLEGE SYSTEM STUDY
SECTION 8.7.(a) The Joint Legislative Education Oversight Committee shall hire an outside consultant to consider:
(1) The organization and structure of the Community College System, the number of colleges within the System, the location and size of the colleges, and whether the State could realize any administrative savings from the consolidation of some colleges or programs;
(2) The formula used to fund administration at the colleges, appropriate funding levels for administration of the various colleges, and the appropriate number of administrative staff members for colleges of different sizes; and
(3) The funding of multicampus colleges and off‑campus centers, including the appropriate number of administrative staff members, and an appropriate funding mechanism for administration and for other purposes.
SECTION 8.7.(b) The Joint Legislative Education Oversight Committee may hire an outside consultant to study Community College System funding, including State funds, county funds, and tuition rates. In the course of this study, the consultant shall:
(1) Compare the level of community college funding in North Carolina to that of other states, in view of the differences in their missions;
(2) Consider an appropriate level of county funding; and
(3) Consider the current level of resident tuition in view of the availability of financial aid at community colleges, the availability of financial aid at other institutions of higher education, and the current level of State funding.
SECTION 8.7.(c) The Committee shall report the results of these studies to the 2003 General Assembly.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
flexibility to implement budget reductions
SECTION 8.8.(a) Notwithstanding G.S. 143‑23 or any other provision of law, the State Board of Community Colleges may transfer funds within the budget of the Community Colleges System Office to the extent necessary to implement base budget reductions and to reorganize the System Office to maintain management efficiencies.
SECTION 8.8.(b) This section expires June 30, 2003.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
transfer of community college position
SECTION 8.9. Personnel position # 6800‑1500‑0075‑052, High School Apprenticeship Consultant, is transferred from the North Carolina Community College System to the Department of Public Instruction.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Buchanan, Easterling, Oldham, Redwine, Thompson
SECTION 8.10. Notwithstanding any other provision of law, all fees collected by the Hosiery Technology Center of Catawba Valley Community College for the testing of hosiery products shall be retained by the Center and used for the operations of the Center. Purchases made by the Center using these funds are not subject to the provisions of Article 3 of Chapter 143 of the General Statutes.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Baker, Easterling, Oldham, Redwine, Thompson
Viticulture/enology Course AUTHORIZATION
SECTION 8.11.(a) Article 11 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B-1114.4. Viticulture/Enology course authorization.
(a) Authorization. – The holder of a viticulture/enology course authorization may:
(1) Manufacture wine from grapes grown on the school's own campus or property for the purpose of providing instruction and education on the making of unfortified wines.
(2) Possess wines manufactured during the viticulture/enology program for the purpose of conducting wine-tasting seminars and classes for students who are 21 years of age or older.
(3) Sell wines produced during the course to wholesalers or to retailers upon obtaining a wine wholesaler permit under G.S. 18B-1107, except that the permittee may not receive shipments of wines from other producers.
(b) Limitation. – Authorization for a viticulture/enology course shall be granted by the Commission only for a community college or college that offers a viticulture/enology program as a part of its curriculum offerings for students of the school. No retail sales of wine shall be made by the students, instructor, or school. Wines may be manufactured only from grapes grown in a research vineyard, not to exceed five acres, that is located on the school's campus or property.
(c) The holder of a viticulture/enology course authorization may manufacture wines from grapes grown by others until June 30, 2004. Otherwise, wine may be manufactured only as provided in subsection (b) of this section.
(d) The holder of a viticulture/enology course authorization shall not be considered a winery for the purposes of this Chapter or Chapter 105 of the General Statutes."
SECTION 8.11.(b) G.S. 66‑58(c) is amended by adding a new subdivision to read:
"(1a) The sale of products raised or produced incident to the operation of a community college viticulture/enology program as authorized by G.S. 18B-1114.4."
Requested by: Representatives Clary, Underhill
Community College Radio Station Funding
SECTION 8.12. The Office of State Budget and Management and the Community College System Office shall increase the amount budgeted for receipts for the 2002-2003 fiscal year by the sum of two hundred ninety-nine thousand eight hundred twenty-four dollars ($299,824). These funds shall be used to increase funding for public radio stations as follows:
(1) Craven Community College - $74,956;
(2) Isothermal Community College - $74,956
(3) Gaston Community College - $149,912.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson, Haire
ELIZABETH CITY STATE UNIVERSITY PHARMACY SCHOOL/east carolina university engineering school/ENGINEERING programs at Western Carolina University and the university of north carolina at asheville
SECTION 9.1.(a) The Board of Governors of The University of North Carolina shall establish an accredited and fully staffed stand‑alone school of pharmacy at Elizabeth City State University no later than the 2004‑2005 academic year. The Board of Governors shall begin to implement immediately the proposals to establish a fully staffed stand‑alone school of pharmacy at Elizabeth City State University. The Board of Governors shall establish this school as set forth in the feasibility study conducted in compliance with Section 31.10(c) of S.L. 2001‑424.
SECTION 9.1(b) The Board of Governors of The University of North Carolina shall establish an accredited and fully staffed stand‑alone school of engineering at East Carolina University no later than the 2004‑2005 academic year.
SECTION 9.1.(c) The Board of Governors of The University of North Carolina shall establish a bachelor of science degree in electrical and computer engineering at Western Carolina University no later than the 2004-2005 academic year.
SECTION 9.1.(d) The Board of Governors of The University of North Carolina shall establish a bachelor of arts degree in engineering at the University of North Carolina at Asheville no later than the 2004-2005 academic year.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
TRANSFER COLLECTION RESPONSIBILITIES FOR CERTAIN SCHOLARSHIP PROGRAMS TO STATE EDUCATION ASSISTANCE AUTHORITY
SECTION 9.2.(a) The statutory authority, powers, duties, and functions, records, personnel, property, and unexpended balances of appropriations, allocations, or other funds of the North Carolina Teaching Fellows Commission relating to the collection of loans awarded under G.S. 115C‑363.23A when the loan repayments are outstanding for more than 30 days are transferred from the North Carolina Teaching Fellows Commission to the State Education Assistance Authority. This transfer has all of the elements of a Type II transfer as defined by G.S. 143A‑6.
SECTION 9.2.(b) The statutory authority, powers, duties, and functions, records, personnel, property, and unexpended balances of appropriations, allocations, or other funds of the Department of Public Instruction relating to the collection of loan repayments for loans awarded under Article 32A of Chapter 115C of the General Statutes when the loans are outstanding for more than 30 days are transferred from the Department of Public Instruction to the State Education Assistance Authority. This transfer has all of the elements of a Type II transfer as defined by G.S. 143A‑6.
SECTION 9.2.(c) G.S. 115C‑363.23A is amended by adding a new subsection to read:
"(g) The State Education Assistance Authority is responsible for the collection of a loan awarded under this section if the loan repayment is outstanding for more than 30 days."
SECTION 9.2.(d) G.S. 115C‑363.23A(f) reads as rewritten:
"(f) All funds appropriated to or otherwise received by the Teaching Fellows Program for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall be placed in a revolving fund. This revolving fund shall be used for scholarship loans granted under the Teaching Fellows Program. With the prior approval of the General Assembly in the Current Operations Appropriations Act, the revolving fund may also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments.
The Public School Forum, as
administrator for the Teaching Fellows Program, may use up to one hundred fifty
thousand dollars ($150,000) annually from the fund balance for costs associated
with administration of the Teaching Fellows Program. These funds are in
addition to funds required for collection costs related to loan repayments."
SECTION 9.2.(e) Article 32A of Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-472.1. State Education Assistance Authority collect loan repayments.
The State Education Assistance Authority is responsible for the collection of a loan awarded under this Article if the loan repayment is outstanding for more than 30 days."
SECTION 9.2.(f) G.S. 116‑204 is amended by adding the following new subdivisions to read:
"(9) To collect loan repayments for loans awarded under the Teaching Fellows Program pursuant to G.S. 115C-363.23A if the loan repayment is outstanding for more than 30 days.
(10) To collect loan repayments for loans awarded from the Scholarship Loan Fund for Prospective Teachers pursuant to Article 32A of Chapter 115C of the General Statutes if the loan repayment is outstanding for more than 30 days."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SUBSTITUTION OF UNC BOND PROJECTS
SECTION 9.3.(a) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at North Carolina State University by substituting a project entitled Animal and Food Science Facilities for the Meat Processing Laboratory, as contained in Section 2(a) of S.L. 2000‑3, and by transferring a portion of the funds from the project entitled Main Campus – Infrastructure (Including Water System), as contained in Section 2(a) of S.L. 2000‑3, to this substitute project. Section 2(a) of S.L. 2000‑3 is therefore amended as follows:
(1) In the portion under Projects Whose Funding Was Transferred to Disaster Recovery Fund – North Carolina State University, by deleting "Meat Processing Laboratory….$4,853,755".
(2) In the portion under North Carolina State University, by adding "Animal and Food Science Facilities….$6,460,980" and by decreasing by $1,607,225 the $9,330,700 for Main Campus – Infrastructure (Including Water System) so that it reads “Main Campus ‑ Infrastructure (Including Water System)….$7,723,475".
SECTION 9.3.(b) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational requirements at the North Carolina School of the Arts by substituting a project entitled High School Student Residential Facility for the Residential Facility as contained in Section 2(a) of S.L. 2000‑3, which was anticipated to be built for college students. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under North Carolina School of the Arts, by deleting "Residence Hall…$1,832,100" and by adding "High School Student Residential Facility…$1,832,100".
SECTION 9.3.(c) Nothing in this section is intended to supersede any other requirement of law or policy for approval of the substituted capital improvement projects.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
UNC SCHOLARSHIP PROGRAMS CONSOLIDATED
SECTION 9.4.(a) Effective July 1, 2003, all funds in the continuation budget for the following scholarship programs shall be combined into one scholarship fund to be known as the "UNC Campus Scholarships":
(1) Minority Presence Grants for undergraduate and doctoral, law and veterinary medicine students as described in the 1979 Consent Decree between the University of North Carolina and the United States Department of Health Education and Welfare at § VI, paragraphs 6.a. and 6.b.
(2) Minority Presence Grants‑II as established in Section 17.3A of S.L. 1994‑769.
(3) Incentive Scholarship Program for Native Americans as established in Section 17.3 of S.L. 1994‑769.
(4) Elizabeth City State University Incentive Program as established by Chapter 738 of the 1987 of the Session Laws.
(5) Incentive Grants for Certain Constituent Institutions as established by S.L. 1991‑689.
(6) Freshman Scholars Programs as established by Section 46 of S.L. 1993‑ 561.
(7) Legislative College Opportunity Program as established by Section 17.14 of S.L. 1994‑769.
SECTION 9.4.(b) All obligations to students for uses of the funds set out in subsection (a) of this section that were made prior to the effective date of this act shall be fulfilled as to students who remain eligible under the provisions of the respective programs.
SECTION 9.4.(c) Except as provided in subsection (d) of this section, funds in the UNC Campus Scholarships shall be distributed among the constituent institutions of The University of North Carolina in the same amounts as previous to the effective date of this act.
SECTION 9.4.(d) Funds in the UNC Campus Scholarships allocated for doctoral study shall be reallocated based on the proportion of doctoral students enrolled at each of the campuses that have doctoral students. These funds shall continue to be committed only to doctoral students who are North Carolina residents and shall be allocated based on need. The funds previously in the Incentive Scholarship Program for Native Americans at the doctoral level shall be distributed evenly among the campuses with doctoral programs.
SECTION 9.4.(e) The Board of Trustees of each constituent institution shall define its particular campus goals and guidelines for the use of the UNC Campus Scholarships for undergraduates. The chancellor of each constituent institution shall submit its proposed guidelines to the President of The University of North Carolina for approval before implementing them. Only residents of North Carolina shall be eligible to receive grants from the UNC Campus Scholarships. Unless a campus has determined that it has sufficient diversity in its undergraduate student population to provide the educational benefits of diversity, the campus shall use at least the portion of these funds that previously provided Minority Presence Grants for undergraduates to promote diversity within the undergraduate student body of the campus to the extent permitted by the constitution and laws of the State of North Carolina and of the United States.
SECTION 9.4.(f) No constituent institution is required to have a community service requirement for receipt of grants from the UNC Campus Scholarships.
SECTION 9.4.(g) The State Education Assistance Authority shall administer the UNC Campus Scholarships. Upon the naming of recipients of grants from the UNC Campus Scholarships, each constituent institution shall inform the State Education Assistance Authority (SEAA) of its decisions. The SEAA shall perform all of the administrative functions necessary to implement this program. The North Carolina State Education Assistance Authority shall conduct periodic evaluations of expenditures of the UNC Campus Scholarships to determine if allocations are being utilized, are addressing the financial needs of students or other needs identified by the constituent institutions, and are improving diversity on the campuses. SEAA may make recommendations for redistribution of funds to the President of The University of North Carolina who may authorize redistribution of unutilized funds for a particular fiscal year among the constituent institutions.
SECTION 9.4.(h) Each constituent institution shall maintain the current proportion of allocation of these funds for undergraduate Native American students. To be eligible for such a grant, a student must be a resident of North Carolina and must be a Native American, defined as an individual who maintains cultural and political identification as a Native American through membership in an Indian tribe recognized by the State of North Carolina or by the United States. The North Carolina State Education Assistance Authority may redistribute to another constituent institution funds for Native Americans which are uncommitted by January 5 of each fiscal year.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
ELIMINATE UNC MAILING LIST DUPLICATION
SECTION 9.5. Section 10.11 of S.L. 1999‑237 reads as rewritten:
"Section 10.11. Each
constituent institution of The University of North Carolina and each community
college shall provide to students and their families a brief, clear explanation
of federal tax credits (the HOPE and Lifetime Learning Credits) that are available
for educational purposes. The explanation shall include the limitations of the
credits as well as examples of the potential benefits under certain tax
situations. The constituent institution shall provide the tax credit
information to the student and or the student's parents when the
institution notifies each of the amount of tuition and fees paid for a calendar
year."
Requested by: Representative Justus
NO funding for REQUIRED COURSES ON ONE RELIGION
SECTION 9.5A. No state funds or overhead receipts may be expended by a constituent institution of The University of North Carolina to offer for entering freshman students prior to their first semester for credit or otherwise any course or summer reading program in any religion unless all other known religions are offered in an equal or incremental way. This section is not intended to interfere with academic freedom, but to ensure that all religions are taught in a nondiscriminatory fashion.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
AID TO PRIVATE COLLEGES TECHNICAL CORRECTIONS
SECTION 9.6. G.S. 116‑21.4(a) reads as rewritten:
"(a) Expenditures made
pursuant to G.S. 116‑19, 116‑20, 116‑21.1, or 116‑21.2
may be used only for secular educational purposes at an institution as
defined by G.S. 116-22.nonprofit institutions of higher learning that
meet the qualifications set out in G.S. 116-22."
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 9.7. The Chancellor of each constituent institution shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes in order to meet the reduction reserve amounts for that institution. The President of The University of North Carolina shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes controlled by the Board in order to meet the reduction reserve amounts for those entities. The Board of Governors shall make a summary report to the Fiscal Research Division by October 31, 2002, on all reductions made by these entities and constituent institutions in order to reduce the budgets by the targeted amounts.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
SECTION 9.9. The Board of Governors of The University of North Carolina may allow Elizabeth City State University, the University of North Carolina at Pembroke, and Western Carolina University each to allocate up to one hundred seventy‑eight thousand three hundred eighty dollars ($178,380) of the funds allocated to them for focused enrollment growth for a maximum of 20 Prospective Teacher Scholars. These funds may be used to recruit new nonresident students to enter into agreements to: (i) pursue a full‑time course of study that will lead to teacher certification in North Carolina and (ii) teach in a North Carolina public school or a school operated by the United States government in North Carolina for one year for each year that they receive this benefit. The Board of Governors shall establish guidelines and regulations for this pilot program, including methodology for determining its success in increasing the supply of qualified teachers for North Carolina public schools. The Board shall report its guidelines and regulations to guide these pilot programs to the Joint Legislative Education Oversight Committee by September 15, 2002. The Board shall report annually to the Committee on the progress of the pilot programs and their costs.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Nesbitt, Sherrill, Easterling, Oldham, Redwine, Thompson
Umstead act exemption for the North Carolina Arboretum
SECTION 9.10. G.S. 66‑58(b) is amended by adding a new subdivision to read:
"(b) The provisions of subsection (a) of this section shall not apply to:
…
(8a) The University of North Carolina with regard to the operation of gift shops and snack or food service facilities connected to the North Carolina Arboretum, provided that the resulting profits are used to support the operation of the North Carolina Arboretum."
Requested by: Representative Nesbitt
report on umstead act exemptions
SECTION 9.10A.(a) The Board of Governors of The University of North Carolina shall report to the Joint Legislative Commission on Governmental Operations prior to March 1, 2003, on activities undertaken under exemptions to the Umstead Act, which are set out in G.S. 66-58(b)(8), for the Centennial Campus of North Carolina State University at Raleigh, the Horace Williams Campus of the University of North Carolina at Chapel Hill, and a Millennial Campus of a constituent institution of The University of North Carolina.
SECTION 9.10A.(b) The report shall include the following information on all such activities undertaken since July 1, 1999:
(1) The reasons the exemptions were necessary for the development and operation of facilities on the Centennial Campus of North Carolina State University at Raleigh, the Horace Williams Campus of the University of North Carolina at Chapel Hill, or a Millennial Campus of a constituent institution of The University of North Carolina, and
(2) A specific list of the activities that would have been prohibited without the exemptions.
SECTION 9.10A.(c) The report shall also include:
(1) A specific list of activities that are necessary to continue the development and operation of these facilities and that would be prohibited if the facilities were not exempt from the provisions of G.S. 66-58(a), and
(2) A list of the specific exemptions from G.S. 66-58(a) that would be necessary to continue the development and operation of these facilities prohibited if G.S. 66-58(a) applied to the facilities.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
OUT‑OF‑STATE INSTITUTIONS WITH NC CAMPUSES
SECTION 9.11.(a) G. S. 116‑22 reads as rewritten:
"§ 116‑22. Definitions applicable to §§ 116‑19 to 116‑22.
As used in G.S. 116‑19 through 116‑22:
(1) "Institution"
shall mean an educational institution with its main a main permanent campus
located in this State that is not owned or operated by the State of North
Carolina or by an agency or political subdivision of the State or by any
combination thereof, that is accredited by the Southern Association of
Colleges and Schools under the standards of the College Delegate Assembly of
said Association thereof that satisfies all of the following:
a. Is accredited by the Southern Association of Colleges and Schools under the standards of the College Delegate Assembly of the Association or by the New England Association of Schools and Colleges through its Commission on Institutions of Higher Education.
b. Awards a
postsecondary degree as defined in G.S. 116-15. and that is
c. Is not a seminary, Bible school, Bible college or similar religious institution.
(1a) "Main permanent campus" shall mean a campus owned by the institution that provides permanent on-premises housing, food services, and classrooms with full-time faculty members and administration that engages in postsecondary degree activity as defined in G.S. 116-15.
(2) "Student" shall mean a person enrolled in and attending an institution's main permanent campus located in the State who qualifies as a resident of North Carolina in accordance with definitions of residency that may from time to time be adopted by the Board of Governors of the University of North Carolina and published in the residency manual of said Board; and a person who has not received a bachelor's degree, or qualified therefor, and who is otherwise classified as an undergraduate under such regulations as the Board of Governors of the University of North Carolina may promulgate. The enrollment figures required by G.S. 116‑19 through 116‑22 shall be the number of full‑time equivalent students as computed under regulations prescribed by the Board of Governors of the University of North Carolina. Qualification for in‑State tuition under G.S. 116‑143.3 makes a person a "student" as defined in this subdivision."
SECTION 9.11.(b) Notwithstanding the provisions of G.S. 116‑22 as enacted by this section, any institution that met the definition of "institution" under G.S. 116‑22 on January 1, 2001, shall continue to be eligible to receive funds appropriated in compliance with G.S. 116‑19 through G.S. 116‑22 when this act becomes law, if it received funds for these purposes as of January 1, 2001.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
North Carolina School of Science and Mathematics
SECTION 9.12.(a) The Joint Legislative Education Oversight Committee shall study the North Carolina School of Science and Mathematics. In its study the Committee may consider all of the following with regard to the School: the purpose and goals of the School and whether those are still appropriate; the academic programs; student admission policies; administrative functions and personnel policies; finances, properties, and any financial obligations of the School; and any other relevant issues. The Joint Legislative Education Oversight Committee shall report its findings and recommendations to the 2003 General Assembly.
SECTION 9.12.(b) Notwithstanding any other provision of law, neither the fee of eight hundred fifty dollars ($850.00) proposed by the Board of Trustees or any other fee shall be imposed for the 2002‑2003 academic year.
SECTION 9.12.(c) G.S. 116‑235(d) is amended by adding a new subdivision to read:
"(7) The Board of Trustees shall not impose any fee without the approval of the General Assembly, unless the fee is a traffic, parking, or motor vehicle registration fee authorized under subsection (e) of this section."
Requested by: Representatives Gibson, Easterling, Oldham, Redwine
SECTION 9.13. The University of North Carolina at Chapel Hill shall maintain and continue to operate the Horace Williams Airport as a base for the Medical Air, Inc., operations in support of the Area Health Education Cooperative, and as a local public access airport, until the General Assembly otherwise provides.
Requested by: Representatives Boyd‑McIntyre, Rogers, Yongue, Easterling, Oldham, Redwine, Thompson
Cooperative Extension/agricultural research Faculty
SECTION 9.14. The Board of Governors shall promulgate policies that permit currently designated "EPA Non‑Teaching" positions in the Cooperative Extension Service or Agricultural Research budgets of the constituent institutions of the university to be changed to "EPA Teaching" positions, if it is deemed by the Chancellor of any constituent institution of the university to be a more accurate definition of the faculty positions' job responsibilities.
Requested by: Representative Rogers
unc institutions PROHIBITED FROM OPERATING transient accommodations EXCEPT UNDER CERTAIN CIRCUMSTANCES
SECTION 9.15.(a) G.S. 66‑58 is amended by adding the following subsections to read:
"(h) Notwithstanding the provisions of G.S. 66-58(b)(8), it is unlawful for The University of North Carolina, its constituent institutions, the Centennial Campus of North Carolina State University, the Horace Williams Campus of the University of North Carolina at Chapel Hill, a Millennial Campus of a constituent institution of The University of North Carolina, or any corporation or other legal entity created or directly controlled by or using land owned by The University of North Carolina to develop, construct, own, or operate a golf course or a transient accommodations facility, including a hotel or motel, unless all the following conditions are met:
(1) The facility is developed and constructed in conjunction with a conference center, and the purpose and use of the conference center and facility are limited to continuing education, degree programs, research, or other activities that support the academic and research mission of The University of North Carolina.
(2) All funding for the operation, construction, or debt service associated with the facility is from private contributions or revenues generated from actual services rendered in connection with the operation of the facility, exclusive of infrastructure that is ordinarily associated with such a facility.
(3) Before the beginning of construction or the issuance of debt, the operating plans of the facility must be submitted, upon the recommendation of the Board of Governors, to the General Assembly for its approval.
(i) The day‑to‑day business management of a facility that meets the criteria of subsection (h) of this section may be conducted by a private entity under contract with The University of North Carolina, its constituent institutions, the Centennial Campus of North Carolina State University, the Horace Williams Campus of the University of North Carolina at Chapel Hill, or a Millennial Campus of a constituent institution of The University of North Carolina."
SECTION 9.15.(b) This section does not apply to any golf course or transient accommodations facility constructed, owned, operated, or leased on or before July 1, 2002, by The University of North Carolina, its constituent institutions, the Centennial Campus of North Carolina State University, the Horace Williams Campus of the University of North Carolina at Chapel Hill, a Millennial Campus of a constituent institution of The University of North Carolina, or any corporation or other legal entity created or directly controlled by The University of North Carolina. This section is effective when it becomes law.
Requested by: Representative Nesbitt
report on university fiscal liabilities
SECTION 9.16. The Board of Governors shall report on an annual basis to the Joint Legislative Commission on Governmental Operations on:
(1) Any financing of buildings or other facilities, regardless of the ownership of those buildings or other facilities, located on land owned by The University of North Carolina or the constituent institutions of The University of North Carolina; and
(2) All fiscal liabilities or contingent liabilities, including payments for debt service or other contractual arrangements, of The University of North Carolina or any constituent institution.
Requested by: Representative Michaux
funds for focused growth campuses
SECTION 9.17. Of the funds appropriated in this act to the Board of Governors of The University of North Carolina for university institutional programs for the 2002‑2003 fiscal year, the Board of Governors shall reduce by ten million dollars ($10,000,000) the amount allocated to the constituent institutions. This reduction shall be allocated among the constituent institutions in proportion to the amount of overhead receipts each institution is projected to receive in the 2002‑2003 fiscal year. Each constituent institution shall budget this amount of overhead receipts to support operation of its physical plant in its General Fund budget codes.
The Board of Governors of The University of North Carolina shall use these funds to provide an equal amount of additional funds to each Focused Growth Campus.
Requested by: Representative Carpenter
BOND PROJECT REPORT
SECTION 9.18. The Board of Governors of The University of North Carolina and the State Board of Community Colleges shall report by October 1, 2002, to the Joint Legislative Education Oversight Committee on any capital projects in process as well as any new construction projects that will require immediate funding from the March 2003 bond issuance under S.L. 2000‑3.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
INFORMATION TECHNOLOGY PROJECT CONTRACTS
SECTION 10.1. Section 21.17 of S.L. 2001‑424 reads as rewritten:
"SECTION 21.17.(a) Notwithstanding
any other provision of law to the contrary, the Department of Health and Human
Services may establish special time‑limited positions in the Division
of Information Research Management for an information technology project to
maximize efficiencies in the preparation for and for implementation
of federal requirements of the medical records privacy standards under
the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
Positions established are not permanent positions, not subject to the State
Personnel Act under G.S. 126‑1.1, and not subject to the State salary
schedule.
SECTION 21.17.(b)
Positions established pursuant to this section may commence no earlier than
July 1, 2001, and shall expire June 30, 2003.June 30, 2005."
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
ADMINISTRATIVE CONSOLIDATION OF DIVISIONS OF SERVICES FOR THE DEAF AND THE HARD OF HEARING, SERVICES FOR THE BLIND, AND VOCATIONAL REHABILITATION services
SECTION 10.2.(a) The following three divisions shall continue consolidating their administrative functions and reducing the number of cities where there are two or more district offices:
(1) Division of Services for the Deaf and the Hard of Hearing.
(2) Division of Services for the Blind.
(3) Division of Vocational Rehabilitation Services.
SECTION 10.2.(b) The Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on activities carried out under this section not later than June 1, 2003. This report shall include the following:
(1) An organizational chart showing how the administrative structure of the divisions has changed.
(2) A plan for reducing the number of cities where there are two or more district offices.
(3) A plan for reducing the budget of the three divisions by seven hundred fifty thousand dollars ($750,000).
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
STAFFING REQUIREMENTS IN LONG‑TERM CARE FACILITIES
SECTION 10.3.(a) The Department of Health and Human Services, Office of Long‑Term Care, shall review staffing requirements of Adult Day Care Programs and Adult Day Health Programs.
SECTION 10.3.(b) The Department shall report the results of its review to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division not later than December 1, 2002. The report shall include staffing requirements for adult day care and adult day health programs as compared to adult care homes, assisted living facilities, and nursing homes in the State. The report shall also compare staffing ratios in North Carolina to those of other states, including those states that border North Carolina. The report shall be conducted by the Department, Office of Long‑Term Care, or by an independent contractor and shall contain all of the following specific information:
(1) Number of staff required per resident.
(2) Education/work experience required and preferred as a basis for hire.
(3) Specific job duties outlined in job descriptions.
(4) Rationale and justification for establishing the existing staff ratios in the Division of Aging's policy for adult day care and adult day health care.
(5) An analysis of the variance in staffing requirements among adult day care and adult day health programs, adult care homes, assisted living facilities, and nursing homes.
(6) Identification of the entities responsible for licensing and monitoring quality for all providers of long‑term care in the State.
(7) Recommendations for changes to existing policies based on findings of the Department's review.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
REPORT ON SERVICES PROVIDED TO OLDER ADULTS
SECTION 10.4. The Department of Health and Human Services, Office of Long‑Term Care shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on services provided to older adults. The report shall provide information as follows:
(1) Identify all State agencies that provide services to adults age 60 and older throughout the State.
(2) All resources available from all sources, including federal, State, and local funds and personnel, for providing services to this population.
(3) Plans for reducing administration through the consolidation of functions throughout Divisions of the Department.
The Office of Long‑Term Care shall consult with experts in long‑term care and other relevant information sources to develop a plan to streamline services for older adults at the local level. The Department shall submit its report not later than February 1, 2003.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
RURAL HEALTH LOAN REPAYMENT INCENTIVE PROGRAM
SECTION 10.5. The Department of Health and Human Services, Office of Rural Health, shall conduct an assessment of the Rural Health Loan Repayment Incentive Program. The assessment shall consider whether the Program should be continued and shall identify ways to recruit additional providers to rural areas within existing funds. The Department shall report on its activities and progress of the assessment to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than December 1, 2002. The report shall provide detailed information on the number of providers recruited, identification of the counties in which the providers are recruited, and the amount of loan repayment and length of service to a community for each provider.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
ACCESS TO PHARMACEUTICAL COMPANY PRESCRIPTION DRUG PROGRAMS
SECTION 10.6. Section 21.6(a) of S.L. 2001‑424, as amended by S.L. 2001‑513, reads as rewritten:
"SECTION
21.6.(a) Of the funds appropriated in this act to the Department of Health
and Human Services, the sum of two hundred thousand dollars ($200,000) for the
2001‑2002 fiscal year and the sum of two hundred thousand dollars
($200,000) for the 2002‑2003 fiscal year shall be used to initiate
the development of a system to assist eligible individuals in obtaining
prescription drugs at no cost through pharmaceutical company programs. The
system will be designed to minimize the efforts of patients and their health
care providers in securing needed drugs. The required patient and health care
provider data will be maintained and orders tracked in order to initiate timely
reorders of needed drugs to assure continuity of medication intake. The
Department may contract with a private nonprofit organization to assist in the
development of the system as provided under this section."
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
USE OF FUNDS FOR THE CHILD ADVOCACY INSTITUTE
SECTION 10.7. State funds appropriated for the Child Advocacy Institute shall be used only for administration of the Child Advocacy Institute or for research and other services provided by the Institute. These funds shall not be used or replaced by other funds for (i) lobbying or other governmental affairs activities or (ii) direct contributions to other nongovernmental entities.
This section shall not be construed to prohibit the Institute from using State funds to contract with other nongovernmental entities for the purchase of goods or services.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson, Church
CONSOLIDATION OF MAINTENANCE ACTIVITIES
SECTION 10.8.(a) The Department of Health and Human Services shall develop a plan to consolidate building maintenance activities at the North Carolina School for the Deaf at Morganton, the Western Carolina Center, and Broughton Hospital. The plan shall assess the needs for maintenance at all three centers, determine the level of staff necessary to carry out all of the current activities with fewer managers, supervisors, and other staff, and develop a new single budget for the maintenance activities.
SECTION 10.8.(b) The Department of Health and Human Services shall identify other facilities throughout the State that are in close proximity to one another and assess the feasibility of consolidating the building maintenance activities at those facilities.
SECTION 10.8.(c) The Department of Health and Human Services shall report on activities carried out under this section to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division no later than December 1, 2002.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
SECTION 10.10B. The Department of Health and Human Services is authorized to administer the Weatherization Assistance Program for Low‑Income Families and the Heating/Air Repair and Replacement Program functions.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
Long‑Term Care Criminal Checks Suspended FOR NONDIRECT CARE EMPLOYMENT POSITIONS
SECTION 10.10C. The requirements of G.S. 131E‑265 for nursing homes to conduct national criminal history record checks for employment positions other than those involving direct patient care are suspended until January 1, 2004. The requirements of G.S. 131D‑2 for adult care homes to conduct national criminal records checks for all staff positions are suspended until January 1, 2004.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson, Fox
TRANSFER north carolina COUNCIL ON the HOLOCAUST TO Department of public instruction
SECTION 10.10D.(a) G.S. 143B‑216.20, 143B‑216.21, 143B‑216.22, and 143B‑216.23 are recodified as subsections (a) through (d) of new G.S. 143A‑48.1 in Article 5 of Chapter 143A of the General Statutes.
SECTION 10.10D.(b) G.S. 143A‑48.1, as codified by this section, reads as rewritten:
"§
143A‑48.1. North Carolina Council on the Holocaust; creation; purpose.purpose;
membership; expenses; assistance.
(a) There is hereby created the North Carolina Council on the Holocaust. The purpose of the Council is to prevent future atrocities similar to the systematic program of genocide of six million Jews and others by the Nazis. This purpose shall be accomplished by developing a program of education and observance of the Holocaust.
(b) The Council shall
consist of 24 members, six appointed by the Governor, six appointed by the
President Pro Tempore of the Senate, six appointed by the Speaker of the House
of Representatives, and six appointed by the other 18 members. Members shall be
appointed in 1985 for two‑year terms to begin July 1, 1985. In 1987
and biennially thereafter, successors shall be appointed for two‑year
terms. for two-year terms to begin July 1 of each odd-numbered year.
The six at‑large appointments shall be made by the Council at its first
meeting after July 1 of each odd‑numbered year. To be eligible for
appointment as an at‑large member, a person must either be a survivor of
the Holocaust or a first‑generation lineal descendant of such person. A
majority of the members shall constitute a quorum for the transaction of
business.
(c) The members of the Council shall be compensated and reimbursed for their expenses in accordance with G.S. 138‑5.
(d) The Secretary Superintendent
of Public Instruction may arrange for clerical or other assistance required
by the Council."
SECTION 10.10D.(c) G.S. 143B‑138.1(b)(14) is repealed.
SECTION 10.10D.(d) The North Carolina Council on the Holocaust, as created by Part 28 of Article 3 of Chapter 143B of the General Statutes, and recodified as G.S. 143A‑48.1 by this section, is transferred to the Department of Public Instruction by a Type II transfer, as defined in G.S. 143A‑6.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
NonMedicaid Reimbursement Changes
SECTION 10.10E. Section 21.59 of S.L. 2001‑424 reads as rewritten:
"SECTION 21.59. Providers of medical services under the various State programs, other than Medicaid, offering medical care to citizens of the State shall be reimbursed at rates no more than those under the North Carolina Medical Assistance Program.
The Department of Health and Human Services may reimburse hospitals at the full prospective per diem rates without regard to the Medical Assistance Program's annual limits on hospital days. When the Medical Assistance Program's per diem rates for inpatient services and its interim rates for outpatient services are used to reimburse providers in non‑Medicaid medical service programs, retroactive adjustments to claims already paid shall not be required.
Notwithstanding the provisions of paragraph one, the Department of Health and Human Services may negotiate with providers of medical services under the various Department of Health and Human Services programs, other than Medicaid, for rates as close as possible to Medicaid rates for the following purposes: contracts or agreements for medical services and purchases of medical equipment and other medical supplies. These negotiated rates are allowable only to meet the medical needs of its non‑Medicaid eligible patients, residents, and clients who require such services which cannot be provided when limited to the Medicaid rate.
Maximum net family annual income eligibility standards for services in these programs shall be as follows:
Medical
Eye All RehabilitationRehabilitation Except
Family Size Care Adults DSB Over 55 Grant Other
1 $4,860 $8,364 $4,200
2 5,940 10,944 5,300
3 6,204 13,500 6,400
4 7,284 16,092 7,500
5 7,821 18,648 7,900
6 8,220 21,228 8,300
7 8,772 21,708 8,800
8 9,312 22,220 9,300
The eligibility level for children in the Medical Eye Care Program in the Division of Services for the Blind shall be one hundred percent (100%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults 55 years of age or older who qualify for services through the Division of Services for the Blind, Independent Living Rehabilitation Program, shall be two hundred percent (200%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. The eligibility level for adults in the Atypical Antipsychotic Medication Program in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall be one hundred fifty percent (150%) of the federal poverty guidelines, as revised annually by the United States Department of Health and Human Services and in effect on July 1 of each fiscal year. Additionally, those adults enrolled in the Atypical Antipsychotic Medication Program who become gainfully employed may continue to be eligible to receive State support, in decreasing amounts for the purchase of atypical antipsychotic medication and related services up to three hundred percent (300%) of the poverty level.
State financial participation in the Atypical Antipsychotic Medication Program for those enrollees who become gainfully employed is as follows:
Income State Participation Client Participation
(% of poverty)
0‑150% 100% 0%
151‑200% 75% 25%
201‑250% 50% 50%
251‑300% 25% 75%
300% and over 0% 100%
The Department of Health and Human Services shall contract at, or as close as possible to, Medicaid rates for medical services provided to residents of State facilities of the Department."
Requested by: Representative Insko
FUNDS FOR AREA AGENCY ON AGING ADMINISTRATION
SECTION 10.10F.(a) Reductions in State funds appropriated in this act to the Department of Health and Human Services, Division of Aging, for central office administration shall be increased by forty thousand dollars ($40,000) for the 2002-2003 fiscal year.
SECTION 10.10F.(b) Reductions in State funds appropriated in this act to the Department of Health and Human Services, Division of Aging, for Senior Centers for outreach and development shall be increased by forty thousand dollars ($40,000) for the 2002-2003 fiscal year.
SECTION 10.10F.(c) Reductions in State funds appropriated in this act to the Department of Health and Human Services, Division of Aging, for Area Agency on Aging Administration shall be decreased by eighty thousand dollars ($80,000) for the 2002-2003 fiscal year.
Requested by: Representative Redwine
RESTORE BUDGET CUTS IN VARIOUS PROGRAMS AND SERVICES
SECTION 10.10G. Of the funds appropriated in this act to the Department of Health and Human Services for the purchase of vaccines for the 2002-2003 fiscal year, the sum of one million six hundred twenty‑five thousand two hundred eighty‑eight dollars ($1,625,288) shall instead be allocated as follows for the following purposes:
(1) Outpatient Hospital Co- Payments – avoids establishment of minimum co-payments. – three hundred thousand dollars ($300,000).
(2) Maintain Current Co-payments under NC Health Choice – seven hundred seventy‑one thousand one hundred twenty‑eight dollars ($771,128).
(3) Home and Community Care Block Grant – maintain current funding. – three hundred seventy‑four thousand one hundred sixty dollars ($374,160).
(4) Health Promotion Funding – maintain current funding. – one hundred eighty thousand dollars ($180,000).
subpart 2. division of medical assistance
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
SECTION 10.11.(a) Section 21.19 of S.L. 2001‑424 reads as rewritten:
"SECTION 21.19.(a) Funds appropriated in this act for services provided in accordance with Title XIX of the Social Security Act (Medicaid) are for both the categorically needy and the medically needy. Funds appropriated for these services shall be expended in accordance with the following schedule of services and payment bases. All services and payments are subject to the language at the end of this subsection.
Services and payment bases:
(1) Hospital‑Inpatient – Payment for hospital inpatient services will be prescribed in the State Plan as established by the Department of Health and Human Services.
(2) Hospital‑Outpatient – Eighty percent (80%) of allowable costs or a prospective reimbursement plan as established by the Department of Health and Human Services.
(3) Nursing Facilities – Payment for nursing facility services will be prescribed in the State Plan as established by the Department of Health and Human Services. Nursing facilities providing services to Medicaid recipients who also qualify for Medicare must be enrolled in the Medicare program as a condition of participation in the Medicaid program. State facilities are not subject to the requirement to enroll in the Medicare program. Residents of nursing facilities who are eligible for Medicare coverage of nursing facility services must be placed in a Medicare certified bed. Medicaid shall cover facility services only after the appropriate services have been billed to Medicare. The Division of Medical Assistance shall allow nursing facility providers sufficient time from the effective date of this act to certify additional Medicare beds if necessary. In determining the date that the requirements of this subdivision become effective, the Division of Medical Assistance shall consider the regulations governing certification of Medicare beds and the length of time required for this process to be completed.
(4) Intermediate Care Facilities for the Mentally Retarded – As prescribed in the State Plan as established by the Department of Health and Human Services.
(5) Drugs – Drug costs as allowed by federal regulations plus a professional services fee per month excluding refills for the same drug or generic equivalent during the same month. Reimbursement shall be available for up to six prescriptions per recipient, per month, including refills. Payments for drugs are subject to the provisions of subsection (h) of this section and to the provisions at the end of subsection (a) of this section, or in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal reimbursement regulations. Payment of the professional services fee shall be made in accordance with the State Plan adopted by the Department of Health and Human Services, consistent with federal reimbursement regulations. The professional services fee shall be five dollars and sixty cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per prescription for brand name drugs. Adjustments to the professional services fee shall be established by the General Assembly.
(6) Physicians, Chiropractors, Podiatrists, Optometrists, Dentists, Certified Nurse Midwife Services, Nurse Practitioners – Fee schedules as developed by the Department of Health and Human Services. Payments for dental services are subject to the provisions of subsection (g) of this section.
(7) Community Alternative Program, EPSDT Screens – Payment to be made in accordance with rate schedule developed by the Department of Health and Human Services.
(8) Home Health and Related Services, Private Duty Nursing, Clinic Services, Prepaid Health Plans, Durable Medical Equipment – Payment to be made according to reimbursement plans developed by the Department of Health and Human Services.
(9) Medicare Buy‑In – Social Security Administration premium.
(10) Ambulance Services – Uniform fee schedules as developed by the Department of Health and Human Services. Public ambulance providers will be reimbursed at cost.
(11) Hearing Aids – Actual cost plus a dispensing fee.
(12) Rural Health Clinic Services – Provider‑based, reasonable cost; nonprovider‑based, single‑cost reimbursement rate per clinic visit.
(13) Family Planning – Negotiated rate for local health departments. For other providers, see specific services, for instance, hospitals, physicians.
(14) Independent Laboratory and X‑Ray Services – Uniform fee schedules as developed by the Department of Health and Human Services.
(15) Optical Supplies – One hundred percent (100%) of reasonable wholesale cost of materials.
(16) Ambulatory Surgical Centers – Payment as prescribed in the reimbursement plan established by the Department of Health and Human Services.
(17) Medicare Crossover Claims – An amount up to the actual coinsurance or deductible or both, in accordance with the State Plan, as approved by the Department of Health and Human Services.
(18) Physical Therapy and Speech Therapy – Services limited to EPSDT eligible children. Payments are to be made only to qualified providers at rates negotiated by the Department of Health and Human Services. Physical therapy (including occupational therapy) and speech therapy services are subject to prior approval and utilization review.
(19) Personal Care Services – Payment in accordance with the State Plan approved by the Department of Health and Human Services.
(20) Case Management Services – Reimbursement in accordance with the availability of funds to be transferred within the Department of Health and Human Services.
(21) Hospice – Services may be provided in accordance with the State Plan developed by the Department of Health and Human Services.
(22) Other Mental Health Services – Unless otherwise covered by this section, coverage is limited to:
a. Services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) when provided in agencies meeting the requirements of the rules established by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services, and reimbursement is made in accordance with a State Plan developed by the Department of Health and Human Services not to exceed the upper limits established in federal regulations, and
b. For children eligible for EPSDT services:
1. Licensed or certified psychologists, licensed clinical social workers, certified clinical nurse specialists in psychiatric mental health advanced practice, and nurse practitioners certified as clinical nurse specialists in psychiatric mental health advanced practice, when Medicaid‑eligible children are referred by the Carolina ACCESS primary care physician or the area mental health program, and
2. Institutional providers of residential services as defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and approved by the Centers for Medicare and Medicaid Services (CMS) for children and Psychiatric Residential Treatment Facility services that meet federal and State requirements as defined by the Department.
Notwithstanding G.S. 150B‑121.1(a), the Department of Health and Human Services may adopt temporary rules in accordance with Chapter 150B of the General Statutes further defining the qualifications of providers and referral procedures in order to implement this subdivision. Coverage policy for services defined by the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services under paragraphs a. and b.2 of this subdivision shall be established by the Division of Medical Assistance.
(23) Medically Necessary Prosthetics or Orthotics for EPSDT Eligible Children – Reimbursement in accordance with the State Plan approved by the Department of Health and Human Services.
(24) Health Insurance Premiums – Payments to be made in accordance with the State Plan adopted by the Department of Health and Human Services consistent with federal regulations.
(25) Medical Care/Other Remedial Care – Services not covered elsewhere in this section include related services in schools; health professional services provided outside the clinic setting to meet maternal and infant health goals; and services to meet federal EPSDT mandates. Services addressed by this paragraph are limited to those prescribed in the State Plan as established by the Department of Health and Human Services.
(26) Pregnancy Related Services – Covered services for pregnant women shall include nutritional counseling, psychosocial counseling, and predelivery and postpartum home visits by maternity care coordinators and public health nurses.
Services and payment bases may be changed with the approval of the Director of the Budget. Payment is limited to Medicaid enrolled providers that provide evidence of medical malpractice insurance coverage, purchase a performance bond in the amount of one hundred thousand dollars ($100,000) naming as beneficiary the Department of Health and Human Services, Division of Medical Assistance, or provide to the Department a validly executed letter of credit or other financial instrument issued by a financial institution or agency honoring a demand for payment in an equivalent amount.
Reimbursement is available for up to 24 visits per recipient per year to any one or combination of the following: physicians, clinics, hospital outpatient, optometrists, chiropractors, and podiatrists. Prenatal services, all EPSDT children, emergency rooms, and mental health services subject to independent utilization review are exempt from the visit limitations contained in this paragraph. Exceptions may be authorized by the Department of Health and Human Services where the life of the patient would be threatened without such additional care. Any person who is determined by the Department to be exempt from the 24‑visit limitation may also be exempt from the six‑prescription limitation.
SECTION 21.19.(b) Allocation of Nonfederal Cost of Medicaid. – The State shall pay eighty‑five percent (85%); the county shall pay fifteen percent (15%) of the nonfederal costs of all applicable services listed in this section.
SECTION 21.19.(c) Copayment for Medicaid Services. – The Department of Health and Human Services may establish copayment up to the maximum permitted by federal law and regulation.
SECTION 21.19.(d) Medicaid and Work First Family Assistance, Income Eligibility Standards. – The maximum net family annual income eligibility standards for Medicaid and Work First Family Assistance and the Standard of Need for Work First Family Assistance shall be as follows:
Categorically Needy Medically Needy
WFFA*
Family Standard Families and
Size of Need Children Income
Level AA, AB, AD*
1 $4,344 $2,172 $2,900
2 5,664 2,832 3,800
3 6,528 3,264 4,400
4 7,128 3,564 4,800
5 7,776 3,888 5,200
6 8,376 4,188 5,600
7 8,952 4,476 6,000
8 9,256 4,680 6,300
*Work First Family Assistance (WFFA); Aid to the Aged (AA); Aid to the Blind (AB); and Aid to the Disabled (AD).
The payment level for Work First Family Assistance shall be fifty percent (50%) of the standard of need.
These standards may be changed with the approval of the Director of the Budget with the advice of the Advisory Budget Commission.
SECTION 21.19.(e) The Department of Health and Human Services, Division of Medical Assistance, shall provide Medicaid coverage to all elderly, blind, and disabled people who have incomes equal to or less than one hundred percent (100%) of the federal poverty guidelines, as revised each April 1.
SECTION 21.19.(f) ICF and ICF/MR Work Incentive Allowances. – The Department of Health and Human Services may provide an incentive allowance to Medicaid‑eligible recipients of ICF and ICF/MR facilities who are regularly engaged in work activities as part of their developmental plan and for whom retention of additional income contributes to their achievement of independence. The State funds required to match the federal funds that are required by these allowances shall be provided from savings within the Medicaid budget or from other unbudgeted funds available to the Department. The incentive allowances may be as follows:
Monthly Net Wages Monthly Incentive Allowance
$1.00 to $100.99 Up to $50.00
$101.00 to $200.99 $80.00
$201.00 to $300.99 $130.00
$301.00 and greater $212.00.
SECTION 21.19.(g) Dental Coverage Limits. – Dental services shall be provided on a restricted basis in accordance with rules adopted by the Department to implement this subsection.
SECTION 21.19.(h) Dispensing of Generic Drugs. – Notwithstanding G.S. 90‑85.27 through G.S. 90‑85.31, or any other law to the contrary, under the Medical Assistance Program (Title XIX of the Social Security Act), and except as otherwise provided in this subsection for atypical antipsychotic drugs and drugs listed in the narrow therapeutic index, a prescription order for a drug designated by a trade or brand name shall be considered to be an order for the drug by its established or generic name, except when the prescriber has determined, at the time the drug is prescribed, that the brand name drug is medically necessary and has written on the prescription order the phrase "medically necessary". An initial prescription order for an atypical antipsychotic drug or a drug listed in the narrow therapeutic drug index that does not contain the phrase "medically necessary" shall be considered an order for the drug by its established or generic name, except that a pharmacy shall not substitute a generic or established name prescription drug for subsequent brand or trade name prescription orders of the same prescription drug without explicit oral or written approval of the prescriber given at the time the order is filled. Generic drugs shall be dispensed at a lower cost to the Medical Assistance Program rather than trade or brand name drugs. As used in this subsection, "brand name" means the proprietary name the manufacturer places upon a drug product or on its container, label, or wrapping at the time of packaging; and "established name" has the same meaning as in section 502(e)(3) of the Federal Food, Drug, and Cosmetic Act as amended, 21 U.S.C. § 352(e)(3).
SECTION 21.19.(i) Exceptions to Service Limitations, Eligibility Requirements, and Payments. – Service limitations, eligibility requirements, and payments bases in this section may be waived by the Department of Health and Human Services, with the approval of the Director of the Budget, to allow the Department to carry out pilot programs for prepaid health plans, contracting for services, managed care plans, or community‑based services programs in accordance with plans approved by the United States Department of Health and Human Services, or when the Department determines that such a waiver will result in a reduction in the total Medicaid costs for the recipient. The Department of Health and Human Services may proceed with planning and development work on the Program of All‑Inclusive Care for the Elderly.
SECTION 21.19.(j) Volume Purchase Plans and Single Source Procurement. – The Department of Health and Human Services, Division of Medical Assistance, may, subject to the approval of a change in the State Medicaid Plan, contract for services, medical equipment, supplies, and appliances by implementation of volume purchase plans, single source procurement, or other contracting processes in order to improve cost containment.
SECTION 21.19.(k) Cost‑Containment Programs. – The Department of Health and Human Services, Division of Medical Assistance, may undertake cost containment programs in accordance with Section 3 of S.L. 2001‑395, including contracting for services, preadmissions to hospitals and prior approval for certain outpatient surgeries before they may be performed in an inpatient setting.
SECTION 21.19.(l) For all Medicaid eligibility classifications for which the federal poverty level is used as an income limit for eligibility determination, the income limits will be updated each April 1 immediately following publication of federal poverty guidelines.
SECTION 21.19.(m) The Department of Health and Human Services shall provide Medicaid to 19‑, 20‑, and 21‑year‑olds in accordance with federal rules and regulations.
SECTION 21.19.(n) The Department of Health and Human Services shall provide coverage to pregnant women and to children according to the following schedule:
(1) Pregnant women with incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits. In determining income eligibility under this subdivision, the income of a minor's parents shall be counted if the minor is residing in the home.
(2) Infants under the age of 1 with family incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
(3) Children aged 1 through 5 with family incomes equal to or less than one hundred thirty‑three percent (133%) of the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
(4) Children aged 6 through 18 with family incomes equal to or less than the federal poverty guidelines as revised each April 1 shall be covered for Medicaid benefits.
(5) The Department of Health and Human Services shall provide Medicaid coverage for adoptive children with special or rehabilitative needs regardless of the adoptive family's income.
Services to pregnant women eligible under this subsection continue throughout the pregnancy but include only those related to pregnancy and to those other conditions determined by the Department as conditions that may complicate pregnancy. In order to reduce county administrative costs and to expedite the provision of medical services to pregnant women, to infants, and to children described in subdivisions (3) and (4) of this subsection, no resources test shall be applied.
SECTION 21.19.(o) Medicaid enrollment of categorically needy families with children shall be continuous for one year without regard to changes in income or assets.
SECTION 21.19.(p) The Department shall disregard earned income for recipients who would otherwise lose Medicaid eligibility under section 1931 of Title XIX of the Social Security Act due to earnings. This disregard shall be applied for a maximum of 12 consecutive months.
SECTION 21.19.(q) The Department of Health and Human Services shall submit a quarterly status report on expenditures for acute care and long‑term care services to the Fiscal Research Division and to the Office of State Budget and Management. This report shall include an analysis of budgeted versus actual expenditures for eligibles by category and for long‑term care beds. In addition, the Department shall revise the program's projected spending for the current fiscal year and the estimated spending for the subsequent fiscal year on a quarterly basis. The quarterly expenditure report and the revised forecast shall be forwarded to the Fiscal Research Division and to the Office of State Budget and Management no later than the third Thursday of the month following the end of each quarter.
SECTION 21.19.(r) The Division of Medical Assistance, Department of Health and Human Services, may provide incentives to counties that successfully recover fraudulently spent Medicaid funds by sharing State savings with counties responsible for the recovery of the fraudulently spent funds.
SECTION 21.19.(s) If first approved by the Office of State Budget and Management, the Division of Medical Assistance, Department of Health and Human Services, may use funds that are identified to support the cost of development and acquisition of equipment and software through contractual means to improve and enhance information systems that provide management information and claims processing. The Department of Health and Human Services shall identify adequate funds to support the implementation and first year's operational costs that exceed the currently allocated funds for the new contract for the fiscal agent for the Medicaid Management Information System.
SECTION 21.19.(t) The Department of Health and Human Services may adopt temporary rules according to the procedures established in G.S. 150B‑21.1 when it finds that these rules are necessary to maximize receipt of federal funds within existing State appropriations, to reduce Medicaid expenditures, and to reduce fraud and abuse. Prior to the filing of these temporary rules with the Office of Administrative Hearings, the Department shall consult with the Office of State Budget and Management on the possible fiscal impact of the temporary rule and its effect on State appropriations and local governments.
SECTION 21.19.(u) The Department shall report to the Fiscal Research Division of the Legislative Services Office and to the House of Representatives Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services or the Joint Legislative Health Care Oversight Committee on any change it anticipates making in the Medicaid program that impacts the type or level of service, reimbursement methods, or waivers, any of which require a change in the State Plan or other approval by the Centers for Medicare and Medicaid Services (CMS). The reports shall be provided at the same time they are submitted to CMS for approval.
SECTION 21.19.(v) Upon approval of a demonstration waiver by the Centers for Medicare and Medicaid Services (CMS), the Department of Health and Human Services may provide Medicaid coverage for family planning services to men and women of child‑bearing age with family incomes equal to or less than one hundred eighty‑five percent (185%) of the federal poverty level. Coverage shall be contingent upon federal approval of the waiver and shall begin no earlier than January 1, 2001.
SECTION 21.19.(x) The Department of Health and Human Services, Division of Medical Assistance, shall implement a new coding system for therapeutic mental health services as required by the Health Insurance Portability and Accountability Act of 1996. In implementing the new coding system, the Division shall ensure that the new coding system does not discriminate between providers of therapeutic mental health services with similar qualifications and training. In meeting the requirements of this subsection, the Division shall consult with the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services and the professional licensing boards responsible for licensing the affected professionals.
SECTION 21.19.(y) The
Department of Health and Human Services may apply federal transfer of assets
policies, as described in Title XIX, Section 1917(c) of the Social Security Act
Act, including the attachment of liens, to real property excluded as "income
producing" "income producing", tenancy-in-common, or as
nonhomesite property made "income producing" under Title XIX,
Section 1902(r)(2) of the Social Security Act. The transfer of assets policy
shall apply only to an institutionalized individual or the individual's spouse
as defined in Title XIX, Section 1917(c) of the Social Security Act. This
subsection becomes effective no earlier than October 1, 2001. Federal
transfer of asset policies and attachment of liens to properties excluded as
tenancy-in-common or as nonhomesite property made "income producing"
in accordance with this subsection shall become effective no earlier than
October 1, 2002."
SECTION 10.11.(b) Effective October 1, 2002, G.S. 108A‑70.5(b) reads as rewritten:
"(b) As used in this section:
(1) "Medical assistance" means medical care services paid for by the North Carolina Medicaid Program on behalf of the recipient:
a. If the recipient is receiving these medical care services as an inpatient in a nursing facility, intermediate care facility for the mentally retarded, or other medical institution, and cannot reasonably be expected to be discharged to return home; or
b. If the recipient is 55
years of age or older and is receiving these medical care services, including
related hospital care and prescription drugs, for nursing facility services services,
personal care services, or home‑ and community‑based services.
(2) "Estate" means all the real and personal property considered assets of the estate available for the discharge of debt pursuant to G.S. 28A‑15‑1."
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
CAROLINA ACCESS PROGRAM IMPROVEMENTS
SECTION 10.12.(a) In its effort to achieve anticipated savings in the Medicaid Program of nine million four hundred twenty‑five thousand dollars ($9,425,000) for the 2002‑2003 fiscal year through expansion of the Carolina ACCESS II and Carolina ACCESS III programs, the Department of Health and Human Services shall monitor cost‑savings activities of these programs. Carolina ACCESS II and Carolina ACCESS III programs shall provide the Department detailed information on savings realized from the following cost‑savings activities:
(1) Reductions in hospital admissions;
(2) Reductions in emergency room visits;
(3) Use of best‑prescribing practices;
(4) Increased prescriptions of generic drugs;
(5) Implementation of polypharmacy review;
(6) Reductions in therapy visits;
(7) Improved management of high‑risk/high‑cost patients; and
(8) Other strategies implemented by the programs to achieve anticipated savings.
SECTION 10.12.(b) The Department of Health and Human Services shall implement a process for the assessment and review of cost‑effectiveness of the Carolina ACCESS II and Carolina ACCESS III programs. The Division of Medical Assistance shall confirm actual savings realized from the use of case management strategies of the Carolina ACCESS II and Carolina ACCESS III demonstration sites. Beginning October 1, 2002, the Department shall report quarterly the cost‑effectiveness of these programs based on actual savings achieved. The Department shall submit the report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Office of State Budget and Management, and the Fiscal Research Division.
Requested by: Representatives Earle, Nye, Oldham
SECTION 10.13. Section 19 of S.L. 2001‑513 reads as rewritten:
"SECTION 19.
Notwithstanding any other provision of law to the contrary, from funds
available in the General Fund, there is appropriated to the Department of
Health and Human Services, Division of Medical Assistance, the sum of two
hundred forty‑six thousand, seven hundred sixty‑two dollars
($246,762) for the 2001‑2002 fiscal year and the sum of four hundred
thousand dollars ($400,000) for the 2002‑2003 fiscal year. These
funds shall be used to provide optional circumcision procedures for newborns
eligible for Medicaid."
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
MEDICAID CASE MANAGEMENT SERVICES
SECTION 10.14.(a) The Department of Health and Human Services shall reduce Medicaid Program expenditures for case management services for adults and children for the 2002‑2003 State fiscal year. In determining how to allocate this reduction, the Department shall include all State programs currently providing case management services reimbursed by the Medicaid Program, and shall consider the following issues:
(1) Elimination of all duplicative case management services.
(2) Consolidation of similar case management services.
(3) Provision of only one case manager per family reimbursed through the Medicaid Program, when feasible.
(4) Equitable allocation of reductions in case management services reimbursed by Medicaid among the different programs that provide case management services.
(5) Identification of the children and adults with the greatest case management needs to determine how to allocate reductions and remaining resources.
(6) Reductions in administrative costs associated with providing case management services reimbursed by Medicaid.
(7) Reductions in reimbursement to case management service providers.
SECTION 10.14.(b) Not later than October 1, 2002, the Department shall report on its plan for the reductions required in this section. The Department shall submit the report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
FEDERAL WAIVERS TO ASSIST IN MEDICAID COST CONTAINMENT
SECTION 10.15.(a) The Department of Health and Human Services shall develop a plan for using federal waivers to assist in long‑term cost containment for the State's Medicaid program. In developing the plan, the Department shall determine whether single or multiple federal waivers will help the State achieve its goal of long‑term cost containment for the State's Medicaid program, and shall also determine which type of waiver is likely to be most helpful. The Department shall consider all of the following for development of the plan:
(1) Which optional categories of persons eligible for Medicaid will be covered by the waiver.
(2) What optional Medicaid services will be included in the service package covered by the waiver.
(3) What types of cost‑sharing will be required under the waiver.
(4) Will the waiver use Carolina ACCESS, other types of managed care, or will a fee‑for‑service system for providing health care services be used.
(5) Will private insurance coverage options be incorporated into the waiver.
(6) Should the NC Health Choice Program be included in the waiver.
SECTION 10.15.(b) On or before February 1, 2003, the Department shall report on its plan for seeking federal waivers to achieve long‑term cost containment in the State's Medicaid program. The report shall be made to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division, and shall include the following:
(1) Copy of the application for the waiver.
(2) Description of how the waiver will help achieve long‑term cost containment in the State's Medicaid program.
(3) Description of legislation necessary to implement the proposed waiver.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
COMMUNITY ALTERNATIVES PROGRAMS
SECTION 10.16.(a) The Department of Health and Human Services shall administer all Community Alternatives Program (CAP) waivers in the most economical and efficient manner possible to support within funds appropriated the maximum number of persons meeting participation requirements under the waivers. The Department shall amend the waivers to ensure that participation requirements and payment and service limits will ensure that the maximum number of persons meeting participation requirements are served by all waivers. Not later than October 1, 2002, the Department shall submit a report that outlines efficient use of funds appropriated and that demonstrates the participation requirements, payment and service limits, and other administrative actions to support the maximum number of persons to be served in the applicable State fiscal year. The report shall be submitted to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
SECTION 10.16.(b) CAP‑DA services shall be provided for the 2002‑2003 fiscal year to any eligible person who entered a nursing facility on or before June 1, 2002, notwithstanding that the availability of CAP‑DA services may be suspended for that fiscal year.
SECTION 10.16.(c) The North Carolina Institute of Medicine shall conduct a study of the Community Alternatives Program for Disabled Adults (CAP/DA) administered by the Department of Health and Human Services and shall recommend ways of improving the administration of CAP/DA. In conducting the study, the Institute shall consider the following:
(1) Whether the lead agency for CAP/DA should also be a provider of direct services under CAP/DA.
(2) Whether case managers should be employed by the provider agency.
(3) Whether funds for CAP/DA should be reduced below the ninety percent (90%) maximum that currently exists.
(4) Review current policy for service requirements, management, and supervision as it pertains to strengthening the family and case manager and agency requirements.
(5) Whether case managers and provider agencies should have increased responsibility for upholding guidelines.
(6) Whether oversight of CAP/DA by the Division of Medical Assistance needs strengthening.
(7) Alternative funding sources for CAP/DA.
(8) Determination of funding needs for CAP/DA based on corroboration with long‑term care policy initiatives.
(9) What changes should be made to CAP/DA to reduce cost of services per person in order to serve more individuals within existing funds.
(10) Any other matters the North Carolina Institute of Medicine considers pertinent to the study.
The North Carolina Institute of Medicine shall report its findings and recommendations to the 2003 General Assembly upon its convening.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
DISPOSITION OF DISPROPORTIONATE SHARE RECEIPT CHANGE
SECTION 10.17.(a) Disproportionate share receipts reserved at the end of the 2002‑2003 fiscal year shall be deposited with the Department of State Treasurer as nontax revenue for the 2002‑2003 fiscal year.
SECTION 10.17.(b) For the 2002‑2003 fiscal year, as it receives funds associated with Disproportionate Share Payments from State hospitals, the Department of Health and Human Services, Division of Medical Assistance, shall deposit up to one hundred seven million dollars ($107,000,000) of these Disproportionate Share Payments to the Department of State Treasurer for deposit as nontax revenue. Any Disproportionate Share Payments collected in excess of the one hundred seven million dollars ($107,000,000) shall be reserved by the State Treasurer for future appropriations.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine
SECTION 10.18. The Department of Health and Human Services shall reduce Medicaid payments to hospitals by one‑half of one percent (.5%) for the 2002‑2003 State fiscal year. The Department shall evaluate all medical payment programs and policies administered by the Department that may affect the future viability and sustainability of financially vulnerable hospitals. Based on the evaluation of the medical payments programs and policies affecting hospitals, the Department shall implement the one half of one percent (.5%) reduction for the 2002‑2003 State fiscal year such that the reduction has the least impact on the future viability and sustainability of financially vulnerable hospitals. The Department shall also review the status of financially vulnerable hospitals to determine whether additional State actions are appropriate to ensure that communities served by these hospitals continue to receive essential medical services. The Department shall consult with the North Carolina Hospital Association while conducting the evaluation of medical payment programs and policies and determining how to implement the one‑half of one percent (.5%) reduction. The Department shall report to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division on its activities under this section not later than October 1, 2002.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
SECTION 10.19. Section 21.26(b) of S.L. 2001‑424 reads as rewritten:
"SECTION 21.26.(b) The Department shall implement a pharmacy management plan considering the recommendations of the "North Carolina Medicaid Benefit Study" to achieve anticipated cost savings. The pharmacy management plan may include the following activities:
(1) Establishing a prior authorization program to manage utilization of high‑cost, brand name drugs. In determining drugs to be included in the prior authorization program, the Department shall consider whether inclusion of these drugs is likely to:
a. Increase utilization of more expensive services;
b. Reduce quality of treatment;
c. Result in a lower level of compliance with appropriate drug therapy; and
d. Have a differential impact upon racial and ethnic minorities and the elderly.
The Department shall conduct a review at least annually of the drugs included in the prior authorization program to determine whether any of the factors listed in this subdivision or other factors with similar results have occurred.
(2) Limiting prescription drugs to a 34‑day supply for some or all drugs.
(3) Developing physician prescribing practice profiles and other educational tools to enable physicians to better manage their prescriptions.
(4) Establishing therapeutic limits based on appropriate dosage or usage standards.
(5) Encouraging use of generic drugs.
(6) Using maximum allowable pricing.
(7) Contracting with a pharmacy benefits manager to implement more extensive drug utilization review.
(8) Studying the impact of eliminating the six prescription drug monthly limit combined with a more rigorous prior authorization program to ensure cost decisions are made based on evidence‑based clinical guidelines.
(9) Expanding disease management initiatives.
(10) Working with ACCESS physicians to develop and implement drug utilization management initiatives.
(11) If cost‑effective, expanding Medicaid drug coverage to include selected over‑the‑counter medications.
The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 when it finds these rules are necessary to clarify recipient appeal rights related to the pharmacy management plan. In adopting and implementing any pharmacy management plan, the Department shall not deny any Medicaid patient access to any FDA approved drugs."
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
LONG‑TERM CARE REIMBURSEMENT METHODOLOGY
SECTION 10.19A. When establishing a new reimbursement methodology for long‑term care services including nursing facilities, ICF‑MRs, and adult care homes, the Department of Health and Human Services, Division of Medical Assistance, shall do the following:
(1) Use the latest cost data available;
(2) Establish reimbursement rates that will allow Medicaid long‑term care providers to comply with certification requirements, licensure rules, or other mandated quality or safety standards;
(3) Consider available data related to long‑term care industry costs and losses, including those resulting from the health care workforce crisis and the increase in professional liability insurance premiums; and
(4) Consider the effect on future viability and sustainability of financially vulnerable long‑term care providers.
The Division of Medical Assistance and any contract agencies performing the functions associated with this section shall consult with provider organizations, including the North Carolina Health Care Facilities Association, the Long‑Term Care Facilities Association of North Carolina, the North Carolina Assisted Living Association, the North Carolina Developmental Disabilities Facilities Association, and the North Carolina Association of Non‑Profit Homes for the Aging. The Department shall report on the reimbursement methodology not later than October 1, 2002, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
medicaid Maximum Allowable Charge for Temporary nursing Services
SECTION 10.19B. The Department of Health and Human Services, Division of Medical Assistance, shall establish as the maximum allowable per hour charge under the Medicaid Program for temporary nursing services an amount equal to one hundred thirty percent (130%) of the average salary cost per hour for direct care nursing staff employed by the health care facility or provider.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
INCREASES IN FEDERAL MEDICAID FUNDS
SECTION 10.19C.(a) Notwithstanding any other provision of law to the contrary, the total amount of State funds that become available to the Department of Health and Human Services for the 2002‑2003 fiscal year due to an increase in federal Medicaid funds resulting from increases in the Federal Financial Participation rate shall be used to increase funds appropriated to the Department for the 2002‑2003 fiscal year for the Medicaid program without any reduction in what is otherwise allocated to the Department from appropriated funds.
SECTION 10.19C.(b) The Department of Health and Human Services, Division of Medical Assistance, may reinstate eligibility policies changed by this act when all of the following conditions are met:
(1) Congress approves enhanced Federal Financial Participation for State Medicaid programs.
(2) Receipt of the enhanced Federal Financial Participation is dependent on a state's maintenance of effort in Medicaid eligibility.
(3) The Department has concluded that the enacted policy changes render the State ineligible for the enhanced Federal Financial Participation.
(4) Enhanced Federal Financial Participation receipts exceed the anticipated savings in State funds from the enacted policy changes.
Requested by: Representatives Earle, Nye, Easterling, Oldham, Redwine, Thompson
SECTION 10.20. G.S. 108A‑70.21 reads as rewritten:
"§ 108A‑70.21. Program eligibility; benefits; enrollment fee and other cost‑sharing; coverage from private plans; purchase of extended coverage.
(a) Eligibility. – The Department may enroll eligible children based on availability of funds. Following are eligibility and other requirements for participation in the Program:
(1) Children must:
a. Be under the age of 19;
b. Be ineligible for Medicaid, Medicare, or other federal government‑sponsored health insurance;
c. Be uninsured;
d. Be in a family that meets the following family income requirements:
1. Infants under the age of one year whose family income is from one hundred eighty‑five percent (185%) through two hundred percent (200%) of the federal poverty level;
2. Children age one year through five years whose family income is above one hundred thirty‑three percent (133%) through two hundred percent (200%) of the federal poverty level; and
3. Children age six years through eighteen years whose family income is above one hundred percent (100%) through two hundred percent (200%) of the federal poverty level;
e. Be a resident of this State and eligible under federal law; and
f. Have paid the Program enrollment fee required under this Part.
(2) Proof of family income and residency and declaration of uninsured status shall be provided by the applicant at the time of application for Program coverage. The family member who is legally responsible for the children enrolled in the Program has a duty to report any change in the enrollee's status within 60 days of the change of status.
(3) If a responsible parent is under a court order to provide or maintain health insurance for a child and has failed to comply with the court order, then the child is deemed uninsured for purposes of determining eligibility for Program benefits if at the time of application the custodial parent shows proof of agreement to notify and cooperate with the child support enforcement agency in enforcing the order.
If health insurance other than under the Program is provided to the child after enrollment and prior to the expiration of the eligibility period for which the child is enrolled in the Program, then the child is deemed to be insured and ineligible for continued coverage under the Program. The custodial parent has a duty to notify the Department within 10 days of receipt of the other health insurance, and the Department, upon receipt of notice, shall disenroll the child from the Program. As used in this paragraph, the term "responsible parent" means a person who is under a court order to pay child support.
(4) Except as otherwise provided in this section, enrollment shall be continuous for one year. At the end of each year, applicants may reapply for Program benefits.
(b) Benefits. – Except as
otherwise provided for eligibility, fees, deductibles, copayments, and other
cost‑sharing charges, health benefits coverage provided to children
eligible under the Program shall be equivalent to coverage provided for
dependents under the North Carolina Teachers' and State Employees'
Comprehensive Major Medical Plan, including optional prepaid plans.
Prescription drug providers shall accept as payment in full, for outpatient
prescriptions filled, ninety percent (90%) of the average wholesale price for
the prescription drug or the amounts published by the Health Care Financing
Administration Centers for Medicare and Medicaid Services plus a fee
established by the provider not to exceed the amount authorized under
subdivision (d)(3) of this section. dispensing fee of five dollars and sixty
cents ($5.60) per prescription for generic drugs and four dollars ($4.00) per
prescription for brand name drugs. Health care providers providing vision and
dental services to Program enrollees shall accept as payment in full for
services rendered the maximum allowable charges under the North Carolina
Teachers' and State Employees' Comprehensive Major Medical Plan less any copayments
assessed under this Part. All other health care providers providing
services to Program enrollees shall accept as payment in full for services
rendered an amount equivalent to the maximum allowable charges under the
North Carolina Teachers' and State Employees' Comprehensive Major Medical
Plan Medicaid Program for services less any copayments assessed to
enrollees under this Part. No child enrolled in the Plan's self‑insured
indemnity program shall be required by the Plan to change health care providers
as a result of being enrolled in the Program.
In addition to the benefits provided under the Plan, the following services and supplies are covered under the Health Insurance Program for Children established under this Part:
(1) Dental: Oral examinations, teeth cleaning, and scaling twice during a 12‑month period, full mouth X rays once every 60 months, supplemental bitewing X rays showing the back of the teeth once during a 12‑month period, fluoride applications twice during a 12‑month period, sealants, simple extractions, therapeutic pulpotomies, prefabricated stainless steel crowns, and routine fillings of amalgam or other tooth‑colored filling material to restore diseased teeth. No benefits are to be provided for services under this subsection that are not performed by or upon the direction of a dentist, doctor, or other professional provider approved by the Plan nor for services and materials that do not meet the standards accepted by the American Dental Association.
(2) Vision: Scheduled routine eye examinations once every 12 months, eyeglass lenses or contact lenses once every 12 months, routine replacement of eyeglass frames once every 24 months, and optical supplies and solutions when needed. Optical services, supplies, and solutions must be obtained from licensed or certified opthamologists, optometrists, or optical dispensing laboratories. Eyeglass lenses are limited to single vision, bifocal, trifocal, or other complex lenses necessary for a Plan enrollee's visual welfare. Coverage for oversized lenses and frames, designer frames, photosensitive lenses, tinted contact lenses, blended lenses, progressive multifocal lenses, coated lenses, and laminated lenses is limited to the coverage for single vision, bifocal, trifocal, or other complex lenses provided by this subsection. Eyeglass frames are limited to those made of zylonite, metal, or a combination of zylonite and metal. All visual aids covered by this subsection require prior approval of the Plan. Upon prior approval by the Plan, refractions may be covered more often than once every 12 months.
(3) Hearing: Auditory diagnostic testing services and hearing aids and accessories when provided by a licensed or certified audiologist, otolaryngologist, or other hearing aid specialist approved by the Plan. Prior approval of the Plan is required for hearing aids, accessories, earmolds, repairs, loaners, and rental aids.
(c) Annual Enrollment Fee. – There shall be no enrollment fee for Program coverage for enrollees whose family income is at or below one hundred fifty percent (150%) of the federal poverty level. The enrollment fee for Program coverage for enrollees whose family income is above one hundred fifty percent (150%) of the federal poverty level shall be fifty dollars ($50.00) per year per child with a maximum annual enrollment fee of one hundred dollars ($100.00) for two or more children. The enrollment fee shall be collected by the county department of social services and retained to cover the cost of determining eligibility for services under the Program. County departments of social services shall establish procedures for the collection of enrollment fees.
(d) Cost‑Sharing. – There shall be no deductibles, copayments, or other cost-sharing charges for families covered under the Program whose family income is at or below one hundred fifty percent (150%) of the federal poverty level. Families covered under the Program whose family income is above one hundred fifty percent (150%) of the federal poverty level shall be responsible for copayments to providers as follows:
(1) Five dollars ($5.00) per child for each visit to a provider, except that there shall be no copayment required for well‑baby, well‑child, or age‑appropriate immunization services;
(2) Five dollars ($5.00) per child for each outpatient hospital visit;
(3) A six-dollar ($6.00) fee for each outpatient prescription drug purchased;
(4) Twenty dollars