GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
HOUSE BILL 1414
RATIFIED BILL
AN ACT to modify the current operations and capital appropriations act of 2003 and to make other changes in the budget operations of the state.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
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.
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2004."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund 2004‑2005
EDUCATION
Community Colleges System Office 31,612,319
Department of Public Instruction 122,269,724
University of North Carolina – Board of Governors 56,386,840
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 5,319,802
Division of Aging 3,151,000
Division of Blind Services/Deaf/HH (30,000)
Division of Child Development 7,925,000
Division of Education Services 10,873
Division of Facility Services (450,000)
Division of Medical Assistance (88,729,913)
Division of Mental Health (5,962,273)
NC Health Choice 6,600,000
Division of Public Health 8,226,581
Division of Social Services (5,561,948)
Division of Vocational Rehabilitation Services (1,479,294)
Total (70,980,172)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services 100,538
Department of Commerce
Commerce (452,263)
Commerce State‑Aid 1,950,000
NC Biotechnology Center 5,000,000
Rural Economic Development Center 1,144,000
Department of Environment and Natural Resources
Environment and Natural Resources 1,021,957
Clean Water Management Trust Fund 0
Department of Labor 364,216
JUSTICE AND PUBLIC SAFETY
Department of Correction (11,309,897)
Department of Crime Control and Public Safety 3,912,627
Judicial Department 6,741,918
Judicial Department – Indigent Defense 11,000,000
Department of Justice 754,467
Department of Juvenile Justice and Delinquency Prevention 1,734,069
GENERAL GOVERNMENT
Department of Administration 2,476,330
Office of Administrative Hearings 90,476
Department of State Auditor (200,000)
Office of State Controller (99,429)
Department of Cultural Resources
Cultural Resources 14,944,032
Roanoke Island Commission 0
State Board of Elections 2,197,412
General Assembly (921,318)
Office of the Governor
Office of the Governor 42,702
Office of State Budget and Management 401,427
OSBM – Reserve for Special Appropriations 2,213,382
Housing Finance Agency 1,725,000
Department of Insurance
Insurance 4,062,654
Insurance – Volunteer Safety Workers' Compensation (1,734,000)
Office of Lieutenant Governor 29,657
Department of Revenue (1,661,794)
Rules Review Commission (3,185)
Department of Secretary of State (110,389)
Department of State Treasurer
State Treasurer 424,708
State Treasurer – Retirement for Fire and Rescue Squad Workers 665,000
TRANSPORTATION
Department of Transportation (228,056)
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for 2003 Compensation Increases (900,000)
Reserve for 2004 Compensation Increases 260,800,000
Reserve for LEO Salary Adjustments 2,007,385
Reserve for State Health Plan (900,000)
Reserve for Retiree Health Benefits (6,900,000)
Reserve for Contributions to Benefit Plans (6,230,100)
Reserve for Teachers' and State Employees' Retirement System 9,180,000
Reserve for Consolidated Judicial Retirement System 339,000
Job Development Incentive Grants (JDIG) Reserve 4,500,000
Mental Health, Developmental Disabilities and Substance
Abuse Services Trust Fund 10,000,000
Reserve for Senate Bill 100 Compliance (11,813,949)
Debt Service
General Debt Service (78,268,480)
Federal Reimbursement 460,432
TOTAL CURRENT OPERATIONS – GENERAL FUND 367,839,240
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) Section 2.2.(a) of S.L. 2003‑284 is repealed. The General Fund availability used in adjusting the 2004‑2005 budget is shown below:
2004‑2005
Unappropriated Balance Remaining from FY 2003‑04 145,664,254
Projected Reversions from FY 2003‑2004 150,000,000
Projected Over Collections from FY 2003‑2004 235,100,000
Additional FY 2003‑2004 Appropriations (HB 1352) (64,100,000)
Year‑End Unreserved Credit Balance 466,664,254
Credit to Savings Reserve (116,666,064)
Credit to Repairs and Renovations Reserve Account (78,797,361)
Beginning Unreserved Credit Balance FY 2004‑2005 271,200,829
Revenues Based on Existing Tax Structure 14,755,690,500
Nontax Revenues
Investment Income 86,020,000
Judicial Fees 136,730,000
Disproportionate Share 100,000,000
Insurance 53,900,000
Other Nontax Revenues 261,517,607
Highway Trust Fund Transfer 242,586,830
Highway Fund Transfer 16,166,400
Subtotal Nontax Revenues 896,920,837
Total General Fund Availability 15,923,812,166
Adjustments to Availability: 2004 Session
HB 1430 (Internal Revenue Code Conformity) Conference Report (2,600,000)
HB 1303 (Reduce Privilege and Excise Taxes) Conference Report (2,950,000)
Sales Tax Refunds and Exemptions (5,200,000)
Research and Development Tax Credit (4,500,000)
Qualified Business Investment Tax Credit 0
Tobacco Payments Decline – Tobacco Trust Fund (5,000,000)
Transfer from Fire Safety Loan Fund 250,000
Transfer from Veteran's Home Trust Fund 500,000
Transfer from Office of State Controller, Budget Code 24160 2,180,000
HB 1264 (Finance Vital Projects)
Conference Report, Reimburse Debt Service 5,380,000
Adjust Transfer from Insurance Regulatory Fund 4,062,654
Adjust Transfer from Treasurer's Office 424,708
Subtotal Adjustments to Availability: 2004 Session (7,452,638)
Revised General Fund Availability for 2004‑2005 Fiscal Year 15,916,359,528
Less: Total General Fund Appropriations
for 2004‑2005 Fiscal Year (15,916,359,528)
Unappropriated Balance Remaining 0
SECTION 2.2.(b) Subsections 2.2(b), 2.2(c), and 2.2(f) of S.L. 2003‑284 read as rewritten:
"SECTION 2.2.(b)
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 2003‑2004 and 2004‑2005
fiscal years, year, the sum of forty million dollars ($40,000,000)
thirty‑five million dollars ($35,000,000) 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 2003‑2004 and 2004‑2005 fiscal years.year.
"SECTION 2.2.(c)
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 2003‑2004 and 2004‑2005
fiscal years, fiscal year, the sum of twenty million dollars
($20,000,000) that would otherwise be deposited in the Fund Reserve established
by G.S. 147‑86.30(c) and five million ($5,000,000) of the funds that
are not reserved pursuant to G.S. 147‑86.30(c) 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
2003‑2004 and 2004‑2005 fiscal years.year.
Notwithstanding G.S. 143‑16.4(a1) and G.S. 147‑86.30, 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 2004‑2005 fiscal year, the sum of twenty‑five million dollars ($25,000,000) 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 2004‑2005 fiscal year. Any funds remaining after the transfer to the General Fund shall be used in accordance with G.S. 147‑86.30.
"SECTION 2.2.(f)
Notwithstanding G.S. 143‑15.2 and G.S. 143‑15.3A, the
State Controller shall transfer fifteen million dollars ($15,000,000) seventy‑eight
million seven hundred ninety‑seven thousand three hundred sixty‑one
dollars ($78,797,361) from the unreserved credit balance to the Repairs and
Renovations Reserve Account on June 30, 2003. 2004. This
subsection becomes effective June 30, 2003.2004."
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2004‑2005 fiscal year to be used in accordance with G.S. 143‑15.3A.
SECTION 2.2.(d) Section 6.23(a1) of S.L. 2003‑284, as enacted by Section 2 of S.L. 2003‑283, is repealed.
SECTION 2.2.(e) Notwithstanding G.S. 165‑48, five hundred thousand dollars ($500,000) of the cash balance remaining in the NC Veterans Home Trust Fund (Budget Code 64106, Fund 6771) on July 1, 2004, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). These funds shall be used to support the General Fund appropriation for the 2004‑2005 fiscal year for the start‑up cost of the State Veterans Nursing Home in Salisbury.
SECTION 2.2.(f) Notwithstanding G.S. 116‑44.8, two hundred fifty thousand dollars ($250,000) of the cash balance remaining in the Fire Safety Loan Fund (Budget Code 63414, Fund 6510) on July 1, 2004, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers). These funds shall be used to support General Fund appropriations for the 2004‑2005 fiscal year.
SECTION 2.2.(g) On June 30, 2004, the Office of Information and Technology shall transfer two million one hundred eighty thousand dollars ($2,180,000) from the Information Technology service Budget Code 74660 to the Office of State Controller's Budget Code 24160. On July 1, 2004, the State Controller shall transfer two million one hundred eighty thousand dollars ($2,180,000) from Budget Code 24160, to Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for information technology programs and activities across State government for the 2004‑2005 fiscal year. This subsection becomes effective June 30, 2004.
PART III. CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
Current Operations – Highway Fund 2004‑2005
Transportation Administration $ 1,227,072
Operations –
Match for Federal Aid –
Construction Program:
State Secondary System 410,000
Small Construction 7,000,000
Contingency Funds 5,000,000
Spot Safety Improvements –
Access and Public Service Roads –
Maintenance 24,672,591
Capital Improvements –
Ferry Operations 1,000,000
State Aid to Municipalities 410,000
State Aid to Railroads –
State Aid for Public Transportation (436,479)
Asphalt Plant Cleanup –
Governor's Highway Safety Program –
Division of Motor Vehicles 1,218,921
Appropriations to Other State Agencies 1,030,489
Reserves and Transfers 17,842,991
Total $59,375,585
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. The Highway Fund appropriations availability used in developing modifications to the 2004‑2005 Highway Fund budget contained in this act is shown below.
Highway Fund Budget Reform Statement 2004‑2005
Beginning Credit Balance –
Estimated Revenue $ 1,390,900,000
Estimated Reversions –
Total Highway Fund Availability $ 1,390,900,000
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
HIGHWAY TRUST FUND APPROPRIATIONS
Current Operations – Highway Trust Fund 2004‑2005
Intrastate System (7,488,716)
Urban Loops (3,028,125)
Aid to Municipalities (785,741)
Secondary Roads 236,830
Administrative Expense (439,735)
Transfer to General Fund 66,513
GRAND TOTAL CURRENT OPERATIONS AND
EXPANSION (11,572,000)
PART V. BLOCK GRANTS
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2005, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 15,266,973
02. Limited Purpose Agencies 848,165
03. NC Interagency Council for Homeless
Programs 262,472
04. Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant 848,165
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 17,225,775
SOCIAL SERVICES BLOCK GRANT
01. County departments of social services $ 28,868,189
(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 Services for the Blind 3,105,711
04. Division of Facility Services 426,836
05. Division of Aging – Home and Community
Care Block Grant 1,840,234
06. Child Care Subsidies 6,269,309
07. Division of Vocational Rehabilitation –
United Cerebral Palsy 71,484
08. State administration 1,693,368
09. Child Medical Evaluation Program 238,321
10. Adult day care services 2,155,301
11. Comprehensive Treatment Services
Program 422,003
12. Department of Administration
for the N.C. State Commission of Indian Affairs
In‑Home Services Program for the Elderly 203,198
13. Division of Vocational Rehabilitation Services –
Easter Seals Society 116,779
14. UNC‑CH CARES Program for training and
consultation services 247,920
15. Office of the Secretary – Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low‑income elderly persons 41,302
16. Division of Social Services – Child
Caring Agencies 1,500,000
17. Division of Mental Health, Developmental Disabilities, and
Substance Abuse Services – Developmentally Disabled
Waiting List for services 5,000,000
18. Transfer to Preventive Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 145,819
19. Division of Facility Services –
Mental Health Licensure 213,128
20. Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services 3,234,601
TOTAL SOCIAL SERVICES BLOCK GRANT $ 57,894,616
LOW‑INCOME ENERGY BLOCK GRANT
01. Energy Assistance Programs $ 12,775,323
02. Crisis Intervention 9,192,927
03. Administration 2,957,339
04. Weatherization Program 4,212,740
05. Department of Administration –
N.C. State Commission of Indian Affairs 54,840
06. Heating Air Repair and Replacement Program 1,966,153
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 31,159,322
MENTAL HEALTH SERVICES BLOCK GRANT
01. Provision of community‑based
services for severe and persistently
mentally ill adults $ 6,307,035
02. Provision of community‑based
services to children 3,921,991
03. Comprehensive Treatment Services
Program for Children 1,500,000
04. Administration 568,911
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 12,297,937
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 $ 20,441,082
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 4,816,378
04. Child Substance Abuse Prevention 5,835,701
05. Provision of services to children
and adolescents 4,940,500
06. Juvenile Services – Family Focus 851,156
07. Allocation to the Division of Public Health
for HIV/STD Risk Reduction Projects 383,980
08. Allocation to the Division of Public Health
for HIV/STD Prevention by County Health
Departments 209,576
09. Allocation to the Division of Public Health
for the Maternal and Child Health Hotline 37,779
10. Administration 2,596,307
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 48,181,983
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $158,518,189
02. Quality and availability initiatives 17,946,038
03. Administrative expenses 7,163,654
04. Transfer from TANF Block Grant for
child care subsidies 81,292,880
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $264,920,761
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $119,841,508
02. Work First County Block Grants 94,653,315
03. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 81,292,880
04. Child Care Subsidies for TANF Recipients 34,512,238
05. Child Welfare Workers for local DSS 12,452,391
06. Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services 4,500,000
07. Support Our Students – Department of
Juvenile Justice and Delinquency
Prevention 2,749,642
08. Domestic Violence Services
for Work First Families 1,200,000
09. After‑School Services for
At‑Risk Children 2,249,642
YWCA Central Carolinas
Youth Development Programs $176,000
10. Division of Social Services –
Administration 400,000
11. Child Welfare Training 2,550,000
12. TANF Automation Projects 592,500
13. Boys and Girls Clubs 1,000,000
14. Work Central Career Advancement Center 550,000
15. WCH‑Teen Pregnancy Prevention 1,500,000
16. Transfer to Social Services Block Grant for Child Caring
Institutions 1,500,000
17. Special Children's Adoption Fund 3,000,000
18. NC Fast Implementation 2,717,298
19. Maternity Homes 838,000
20. Individual Development Accounts 180,000
21. Reduction of Out‑of‑Wedlock Births 1,000,000
22. After‑School Programs for At‑Risk Youth in 500,000
Middle Schools
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $369,779,414
MATERNAL AND CHILD HEALTH BLOCK GRANT
01. Healthy Mothers/Healthy Children
Block Grants to Local Health
Departments 9,565,205
02. High‑Risk Maternity Clinic Services,
Perinatal Education and Training,
Childhood Injury Prevention,
Public Information and Education, and
Technical Assistance to Local Health
Departments, Office of Women's Health 2,207,273
03. Adolescent Pregnancy Prevention Coalition of NC 150,000
04. Office of Minority Health 159,000
05. Services to Children With Special Health
Care Needs 4,280,987
06. School Health Nurse Initiative 3,250,000
School Health Nurse Initiative Reserve 2005‑2006 3,250,000
07. Administration and Program Support 2,434,303
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 25,296,768
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $2,772,294
02. Rape Crisis/Victims' Services
Program – Council for Women 197,112
03. Transfer from Social Services
Block Grant – HIV/AIDS education,
counseling, and testing 145,819
04. Administration and Program Support 699,092
05. Osteoporosis Task Force Operating Costs 150,000
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $3,964,317
GENERAL PROVISIONS
SECTION 5.1.(b) Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department and each plan shall include the following:
(1) A delineation of the proposed allocations by program or activity, including State and federal match requirements.
(2) A delineation of the proposed State and local administrative expenditures.
(3) An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.
(4) A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.
(5) A projection of current year expenditures by program or activity.
(6) A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.
Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Committee on Governmental Operations, 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.
(1) Performance standards for recipients.
(2) Financial audit standards for non‑State entities equivalent to the requirements in G.S. 143‑6.1 for non‑State entities receiving State funds.
(3) Means for collecting performance data from recipients.
(4) Any other information necessary for monitoring and overseeing the use of Block Grant funding.
The Department shall provide the plan to the Fiscal Research Division by January 1, 2005.
(1) All State positions currently funded through the Block Grant, including permanent, temporary, and time‑limited positions.
(2) Budgeted salary and fringe benefits for each position.
(3) Identify the percentage of Block Grant funds used to fund each position.
The report shall be submitted no later than December 1, 2004.
LOW‑INCOME HOME ENERGY ASSISTANCE PROGRAM
COMMUNITY SERVICE BLOCK GRANT
MENTAL HEALTH BLOCK GRANT
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
SECTION 5.1.(k) The sum of four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant shall be used for the operations of the Medical Child Care Pilot.
SECTION 5.1.(l) 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.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF)
SECTION 5.1.(o) The sum of two million seven hundred forty‑nine thousand six hundred forty‑two dollars ($2,749,642) 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 2004‑2005 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.(p) The sum of one million two hundred thousand dollars ($1,200,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2004‑2005 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 support 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, 2004. 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, 2004, 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, 2004. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
The Department of Health and Human Services shall report on the uses of these funds no later than March 1, 2005, 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.
SECTION 5.1.(q) The sum of two million two hundred forty‑nine thousand six hundred forty‑two dollars ($2,249,642) 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 fund 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, 2005, on its progress in complying with this section to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(r) The sum of twelve million four hundred fifty‑two thousand three hundred ninety‑one dollars ($12,452,391) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2004‑2005 fiscal year shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services.
SECTION 5.1.(s) The sum of two million five hundred fifty thousand dollars ($2,550,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2004‑2005 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.(t) The sum of eight hundred thirty‑eight thousand dollars ($838,000) 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.
SECTION 5.1.(u) The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2004‑2005 fiscal year shall be used to implement this subsection. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.
SECTION 5.1.(v) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the TANF Block Grant and transferred to the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for child caring agencies for the 2004‑2005 fiscal year shall be allocated to the State Private Child Caring Agencies Fund.
SECTION 5.1.(w) The sum of one million dollars ($1,000,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for Boys and Girls Clubs shall be used to make grants for approved programs. The Department of Health and Human Services, in accordance with federal regulations for the use of TANF Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self‑esteem of youths and to implement other initiatives that would be expected to reduce school dropout and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.
SECTION 5.1.(z1) The sum of five hundred thousand dollars ($500,000) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant shall be used to expand after‑school programs for at‑risk children attending middle school. The Department shall develop and implement a grant program to award funds to community‑based programs demonstrating the capacity to reach children at risk of teen pregnancy and school dropout. These funds shall not be used for training or administration at the State level. All funds shall be distributed to community‑based programs, focusing on those communities where similar programs do not exist in middle schools. The Department shall report 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 on its progress in complying with this subsection no later than May 1, 2005.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 5.1.(cc) Of the funds budgeted in the Maternal and Child Health Block Grant, six million five hundred thousand dollars ($6,500,000) shall be used for a school nurse funding initiative. Of these funds, the sum of three million two hundred fifty thousand dollars ($3,250,000) shall be allocated for the 2004‑2005 fiscal year, and the sum of three million two hundred fifty thousand dollars ($3,250,000) shall be placed in a reserve for the 2005‑2006 fiscal year. The Department of Health and Human Services, Division of Public Health, in conjunction with the Department of Public Instruction, shall provide funds to communities to hire school nurses. The program will fund approximately 65 time‑limited nurses over a two‑year period. The criteria shall include determining the areas in the greatest need for school nurses with the greatest inability to pay for these nurses. Among other criteria, consideration shall also be given to (i) the current nurse‑to‑student ratio; (ii) the economic status of the community; and (iii) the health needs of area children.
There shall be no supplanting of local or Title I funds with these block grant funds. Communities shall maintain their current level of effort and funding for school nurses. No block grant funds shall be used for funding nurses for State agencies. All funding shall be used for direct services.
The Department of Health and Human Services shall report on the use of funds allocated under this section by December 1, 2004, 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.
SECTION 5.2.(a) Appropriations from federal block grant funds are made for fiscal year ending June 30, 2005, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $ 1,000,000
02. Urgent Needs and Contingency 50,000
03. Scattered Site Housing 13,200,000
04. Economic Development 10,960,000
05. Community Revitalization 12,200,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT – 2005 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; not less than fifty thousand dollars ($50,000) may be used for Urgent Needs and Contingency; up to thirteen million two hundred thousand dollars ($13,200,000) may be used for Scattered Site Housing; up to ten million nine hundred sixty thousand dollars ($10,960,000) may be used for Economic Development, including Urban Redevelopment Grants and Small Business or Entrepreneurial Assistance; not less than twelve million two hundred thousand dollars ($12,200,000) 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 dollars ($2,000,000) 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.
SECTION 5.2.(f) Department of Commerce Demonstration Grants in Partnership with Rural Economic Development Center, Inc. – The Department of Commerce, in partnership with the Rural Economic Development Center, Inc., shall award up to two million two hundred fifty thousand dollars ($2,250,000) in demonstration grants to local governments in very distressed rural areas of the State. These grants shall be used to address critical infrastructure and entrepreneurial needs and to provide small business assistance.
SECTION 5.2.(g) The Department of Commerce shall consult with the Joint Legislative Commission on Governmental Operations prior to reallocating Community Development Block Grant Funds. Notwithstanding the provisions of this subsection, whenever the Director of the Budget finds that:
(1) A reallocation is required because of an emergency that poses an imminent threat to public health or public safety, the Director of the Budget may authorize the reallocation without consulting the Commission. The Department of Commerce shall report to the Commission on the reallocation no later than 30 days after it was authorized and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency.
(2) The State will lose federal block grant funds or receive less federal block grant funds in the next fiscal year unless a reallocation is made, the Department of Commerce shall provide a written report to the Commission on the proposed reallocation and shall identify the reason that failure to take action will result in the loss of federal funds. If the Commission does not hear the issue within 30 days of receipt of the report, the Department may take the action without consulting the Commission.
PART VI. GENERAL PROVISIONS
PREFERENCE GIVEN TO AMERICAN‑MADE PRODUCTS
"§ 143‑59.1A. Preference given to products made in United States.
If the Secretary of Administration or a State agency cannot give preference to North Carolina products or services as provided in G.S. 143‑59, the Secretary or State agency shall give preference, as far as may be practicable and to the extent permitted by State law, federal law, and federal treaty, to products or services manufactured or produced in the United States. Provided, however, that in giving such preference no sacrifice or loss in price or quality shall be permitted; and provided further, that preference in all cases shall be given to surplus products or articles produced and manufactured by other State departments, institutions, or agencies which are available for distribution."
EXTEND LOCAL GOVERNMENT HOLD HARMLESS
SECTION 6.3. G.S. 105‑521 reads as rewritten:
"§ 105‑521. Transitional local government hold harmless.
(a) Definitions. – The following definitions apply in this section:
(1) Local government. – A county or municipality that received a distribution of local sales taxes in the most recent fiscal year for which a local sales tax share has been calculated.
(2) Local sales tax share. – A local government's percentage share of the two‑cent (2¢) sales taxes distributed during the most recent fiscal year for which data are available.
(3) Repealed reimbursement amount. – The total amount a local government would have been entitled to receive during the 2002‑2003 fiscal year under G.S. 105‑164.44C, 105‑275.1, 105‑275.2, 105‑277.001, and 105‑277.1A, if the Governor had not withheld any distributions under those sections.
(4) Two‑cent (2¢) sales taxes. – The first one‑cent (1¢) sales and use tax authorized in Article 39 of this Chapter and in Chapter 1096 of the 1967 Session Laws, the first one‑half cent (1/2¢) local sales and use tax authorized in Article 40 of this Chapter, and the second one‑half cent (1/2¢) local sales and use tax authorized in Article 42 of this Chapter.
(b) Distributions. – On or
before August 15, 2003, and every August 15 through August 15, 2004,2012,
the Secretary must multiply each local government's local sales tax share by
the estimated amount that all local governments would be expected to receive
during the current fiscal year under G.S. 105‑520 if every county
levied the tax under this Article for the year. If the resulting amount is less
than one hundred percent (100%) of the local government's repealed
reimbursement amount, the Secretary must pay the local government the
difference, but not less than one hundred dollars ($100.00).
On or before May 1, 2003, and every
May 1 through May 1, 2004,2012, the Department of Revenue and
the Fiscal Research Division of the General Assembly must each submit to the
Secretary and to the General Assembly a final projection of the estimated
amount that all local governments would be expected to receive during the
upcoming fiscal year under G.S. 105‑520 if every county levied the
tax under this Article for the fiscal year. If, after May 1 and before a
distribution is made, a law is enacted that would affect the projection, an
updated projection must be submitted as soon as practicable. If the Secretary
does not use the lower of the two final projections to make the calculation
required by this subsection, the Secretary must report the reasons for this
decision to the Joint Legislative Commission on Governmental Operations within
60 days after receiving the projections.
(c) Source of Funds. – The Secretary must draw the funds distributed under this section from sales and use tax collections under Article 5 of this Chapter.
(d) Reports. – The Secretary
must report to the Revenue Laws Study Committee by January 31, 2004, and each
January 31 through January 31, 2005,2013, the amount
distributed under this section for the current fiscal year."
COMMISSION ON STATE PROPERTY/SALE OF STATE PROPERTY
SECTION 6.4.(a) Chapter 143 of the General Statutes is amended by adding a new Article to read:
"Article 78.
"Commission on State Property.
"§ 143‑735. Commission established; purpose; membership.
(a) There is created the Commission on State Property. The Commission shall be located administratively within the Department of Administration but shall carry out its statutory powers and duties independently of the Department of Administration.
(a1) The purpose of the Commission is to identify State‑owned real property that is (i) both surplus and suitable for sale on the private market or (ii) suitable for sale and leaseback and to make recommendations concerning the disposition of the property. The Commission shall consult with real estate salespersons and brokers, real estate appraisers, and other knowledgeable persons in determining its recommendations.
(b) The Commission shall consist of 16 members appointed as follows:
(1) Eight members shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, including one of whom shall be designated as cochair.
(2) Eight members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, including one member who shall be designated as cochair.
The members appointed to the Commission shall be chosen from among individuals who have the ability and commitment to promote and fulfill the purposes of the Commission, including individuals who have expertise in the fields of real estate, property development, and other related fields. The appointing authorities shall each consider appointing at least one real estate salesperson or broker and one real estate appraiser to the Commission.
No member of the Commission may be a member of the Senate or of the House of Representatives. No member or a person of the member's immediate family or business with which the member is associated shall be involved in or benefit from any sale of State‑owned property under this Article.
(c) The terms of four of the initial members appointed pursuant to subdivision (b)(1) of this section and four of the initial members appointed pursuant to subdivision (b)(2) of this section shall be for one year. The terms of the remainder of the initial members shall be for two years. Subsequent terms of all members shall be for two years.
Initial terms shall commence on August 15, 2004.
(d) The Commission shall meet at least once a quarter and may meet at other times upon the call of the cochairs. A majority of the members of the Commission shall constitute a quorum for the transaction of business. The affirmative vote of a majority of the members present at meetings of the Commission shall be necessary for action to be taken by the Commission.
(e) The Commission cochairs may establish subcommittees for the purpose of making special studies pursuant to its duties and may appoint non‑Commission members to serve on each subcommittee as resource persons. Resource persons shall be voting members of the subcommittee and shall receive subsistence and travel expenses in accordance with G.S. 138‑5 and G.S. 138‑6.
(f) The Commission shall hire its professional and clerical staff.
(g) The Commission shall adopt rules for the administration of this Article, including rules regarding the participation of real estate salespersons and real estate brokers.
"§ 143‑736. Duties of the Commission.
(a) The Commission on State Property shall:
(1) Adopt guidelines to ensure the participation of real estate salespersons and real estate brokers in its work and to encourage real estate salespersons and real estate brokers to examine the State's real property inventory to ascertain which properties are either surplus and are suitable for sale or are suitable for sale and leaseback.
(2) Notify each licensed real estate salesperson and real estate broker in the State that the Commission will consider recommendations from real estate salespersons and brokers on State real property that is suitable for sale or sale and leaseback.
(3) Consider recommendations from real estate salespersons and brokers and the general public. Notwithstanding any other provision of this Article, no real estate salesperson or broker may recommend more than five properties.
(4) Develop recommendations on State property that is (i) both surplus and suitable for sale or (ii) suitable for sale and leaseback and report its recommendations to the Department of Administration, the Governor, and the Joint Legislative Commission on Governmental Operations. The Department of Administration shall consider the recommendations of the Commission on State Property and respond to them within 60 days of receiving them. In its response, the Department shall either concur with the recommendations or set out the reasons it does not concur with them.
If the Department concurs that the property shall be sold or sold and leased back, the process for proceeding with the sale or sale and leaseback shall be the same as for other sales of State property.
If the Department does not concur, the Commission shall recommend the sale of the property or the sale and leaseback of the property to the Governor and the Council of State. If the Governor and the Council of State approve the sale, the Department of Administration shall complete the transaction.
In the instance of a proposed sale or sale and leaseback that is undertaken pursuant to this section, the Department shall enter into an exclusive contract with the real estate salesperson or broker who recommended the sale or leaseback of the property to obtain an offer acceptable to the Department to sell or sell and leaseback the property. In the event the property was recommended by more than one real estate salesperson or broker, the Commission shall allocate the marketing responsibilities of the salespersons or brokers recommending the property and determine the allocation of the brokerage fees. A contract with any real estate salesperson or broker under this Article shall not exceed six months in duration and shall include the conditions for receipt of brokerage fees set forth in G.S. 143‑737. After the expiration of the exclusive contract, the property shall be sold or sold and leased back in the same manner as other real property of the State."
"§ 143‑737. Brokerage fees.
Notwithstanding any other provision of Chapter 146 of the General Statutes, a real estate salesperson or broker responsible for making a recommendation for the sale or leaseback of State property that has been adopted by the Commission and recommended to the Department pursuant to G.S. 143‑736 shall be entitled to brokerage fees only if all of the following conditions are met:
(1) The real estate salesperson or broker is licensed by the North Carolina Real Estate Commission.
(2) The transaction closes.
(3) The brokerage fees do not exceed those customary in the industry and are consistent with rules adopted by the Commission."
SECTION 6.4.(b) Of the funds appropriated to the Department of Administration for the 2004‑2005 fiscal year, the Director of the Budget shall transfer two hundred thousand dollars ($200,000) to the Commission on State Property established in subsection (a) of this section. Notwithstanding the provisions of G.S. 146‑30, the first two hundred thousand dollars ($200,000) of the net proceeds of dispositions of property that would otherwise be deposited with the State Treasurer and credited to the General Fund shall be used to offset the transfer of funds from the Department of Administration to the Commission on State Property.
SECTION 6.4.(c) Section 6.8(d) of S.L. 2003‑284 is repealed.
SECTION 6.4.(d) Section 6.8(b) of S.L. 2003‑284, as amended by Section 3 of S.L. 2003‑283, reads as rewritten:
"SECTION
6.8.(b) Establish State‑Owned Surplus Real Property Disposal System;
Purpose; Use of Proceeds. – The Department of Administration, in consultation
with the Office of State Budget and Management, the Department of
Transportation, The University of North Carolina, and all other affected State
departments, agencies, and institutions, shall develop and implement a State‑owned
surplus real property disposal system. The purpose of the system is to
establish a uniform real property disposal system that will continuously
identify State‑owned surplus real property, evaluate that property, and
dispose of that property as appropriate. Within 60 days after receiving the
list from the State Property Office, the Joint Legislative Commission on
Governmental Operations shall review the list of State‑owned surplus real
property and recommend which properties they wish to be sold. Unless
otherwise provided by law, the clear proceeds of the sale of State‑owned
surplus real property shall be credited to the General Fund. It is the
intent of the General Assembly that these proceeds shall partially offset debt
service costs occasioned by the use of Certificates of Participation to finance
the repair and renovation of State buildings. If the clear proceeds
from the disposal of such property are not expected to generate the expected
availability of funds contemplated under this section to be used to offset debt
service by June 30, 2005, the General Assembly shall identify in the bill
revising the 2004 2005 budget other sources of funds to fund the debt service."
CHANGE EFFECTIVE DATE – PRIVATE PLATES ON PUBLIC VEHICLES
SECTION 6.5.(a) The introductory language to Section 6.14(b) of S.L. 2001‑424, as amended by Section 6.5(a) of S.L. 2003‑284, reads as rewritten:
"SECTION 6.14.(b)
Effective October 1, 2004, May 1, 2005, G.S. 20‑39.1(b),
as enacted in subsection (a) of this section, reads as rewritten:".
"SECTION 6.14.(h)
Subsection (b) of this section becomes effective October 1, 2004. May
1, 2005. Except as provided in subsection (c) of this section, the
remainder of this section is effective when it becomes law."
"§ 143‑15.3E. JDIG Reserve Fund.
(a) The State Controller shall establish a reserve in the General Fund to be known as the JDIG Reserve. Funds from the JDIG Reserve shall not be expended or transferred except in accordance with G.S. 143B‑437.63.
(b) It is the intent of the General Assembly to appropriate funds annually to the JDIG Reserve established in this section in amounts sufficient to meet the anticipated cash requirements for each fiscal year of the Job Development Investment Grant Program established pursuant to G.S. 143B‑437.52."
"§ 143B‑437.63. JDIG Program cash flow requirements.
Notwithstanding any other provision of law, grants made through the Job Development Investment Grant Program, including amounts transferred pursuant to G.S. 143B‑437.61, shall be budgeted and funded on a cash flow basis. The Office of State Budget and Management shall periodically transfer funds from the JDIG Reserve Fund established pursuant to G.S. 143‑15.3E to the Department of Commerce in an amount sufficient to satisfy grant obligations and amounts to be transferred pursuant to G.S. 143B‑437.61 to be paid during the fiscal year."
REVISE REPORT OF BUDGET DIRECTOR
SECTION 6.19. Section 6.2A of S.L. 2003‑284 reads as rewritten:
"SECTION 6.2A.(a) The Office of State Budget and Management, in consultation with the State Controller, shall conduct a review and evaluation of current practices relative to the following issues:
(1) The proliferation of nonreverting funds and accounts.
(2) The designation of selected funds as "off‑budget".
(3) The sources of authority, consistent with Article V, Section 7(1) of the Constitution, under which expenditures are being made from each special fund, trust fund, internal service fund, or enterprise fund.
(4) The proper classification and management of funds as special funds, trust funds, internal service funds, or enterprise funds consistent with criteria adopted by the Governmental Accounting Standards Board.
(5) Appropriate budget planning within special funds, trust funds, internal service funds, and enterprise funds, including, in particular, the accurate projection of receipts, expenditures, and fund balances and the presentation of that information for legislative review and appropriation action.
(6) The administration of G.S. 143‑27, which requires in part that the over collection of departmental receipts be accompanied by a corresponding reduction in the allotments to institutions, departments, and agencies.
SPECIAL FUNDS, FEDERAL RECEIPTS, APPROPRIATIONS
SECTION 6.20. Section 6.1 of S.L. 2003‑284 reads as rewritten:
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 Speakers of the House of Representatives, the Chairs 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.
This section shall expire June
30, 2004."
CONTINGENCY AND EMERGENCY FUND ALLOCATIONS
SECTION 6.22. Section 6.4 of S.L. 2003‑284 reads as rewritten:
"SECTION 6.4.(a)SECTION
6.4. Funds in the amount of five million dollars ($5,000,000) for the
2003‑2004 fiscal year and five million dollars ($5,000,000) for the 2004‑2005
fiscal year are appropriated in this act to the Contingency and Emergency Fund.
Of these funds:
(1) Up to two million dollars
($2,000,000) for the 2003‑2004 fiscal year and for the 2004‑2005
fiscal year may be used for purposes related to the Base Realignment and
Closure Act (BRAC); (BRAC), including allocations for individual
community efforts; and
(2) Up to two hundred fifty thousand dollars ($250,000) for the 2003‑2004 fiscal year and for the 2004‑2005 fiscal year may be expended for statutory purposes other than those set out in G.S. 143‑23(a1)(2) or in subdivision (1) of this section.
The remainder of these funds shall be expended only for the purposes outlined in G.S. 143‑23(a1)(2)."
AUTHORIZATION TO ESTABLISH RECEIPT‑SUPPORTED POSITIONS
SECTION 6.23. Notwithstanding G.S. 143‑34.1(a1), a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
REPORTING OF NON‑STATE ENTITIES
SECTION 6.24. G.S. 143‑6.1 reads as rewritten:
"§ 143‑6.1. Report on use of State funds by non‑State entities.
(a) Disbursement and Use of
State Funds. – Every corporation, organization, and institution non‑State
entity that receives, uses, or expends any State funds shall use or expend
the funds only for the purposes for which they were appropriated by the General
Assembly or collected by the State. For purposes of this section, the term
"non‑State entity" means a firm, organization, corporation,
partnership, association, institution, unit of local government, or any other
organization that is not a State agency, department, or institution. State
funds include federal funds that flow through the State. For the purposes of
this section, the term "grantee" means a corporation,
organization, or institution non‑State entity other than a unit of
local government that receives a grant of State funds from a State agency,
department, or institution.
The State shall not disburse State funds appropriated by the General Assembly to any grantee or collected by the State for use by any grantee unless that grantee:
(1) Provides all reports and financial information required under this section to the appropriate State agencies and officials; and
(2) Provides any additional information that the Office of State Budget and Management deems necessary demonstrating that such grantee is capable of managing the funds in accordance with law and has established adequate financial procedures and controls.
All financial statements furnished to the State Auditor pursuant to this section, and any audits or other reports prepared by the State Auditor, are public records.
(a1) Compliance by Non‑State Entities. – If the Director of the Budget finds that a non‑State entity has spent or encumbered State funds for an unauthorized purpose, the Director shall take appropriate administrative action to ensure that no further irregularities occur and shall report to the Attorney General any facts that pertain to an apparent violation of a criminal law or an apparent instance of malfeasance, misfeasance, or nonfeasance in connection with the use of State funds.
(b) State Agency Responsibilities. – A State agency that receives State funds and then disburses the State funds to a grantee shall:
(1) Submit documents to the State Auditor in a prescribed format describing standards of compliance and suggested audit procedures sufficient to give adequate direction to independent auditors performing audits.
(2) Annually, at the time the grant is made, notify each grantee, in writing, of the reporting requirements set forth in this section and that the State agency is not authorized to disburse funds to grantees that fail to comply with the reporting requirements for funds received during the prior fiscal year.
(3) Provide each grantee with the accounting form and other requirements prescribed by the State Auditor.
(4) Submit a list to the State Auditor by October 31 each year of every grantee to which the agency disbursed State funds in the prior fiscal year, the amount disbursed to each grantee, the funding source of each grant, and other such information as required by the State Auditor to comply with the requirements set forth in this section.
(5) Submit a list to the Office of State Budget and Management by January 31 each year of every grantee to which the agency disbursed State funds in the prior fiscal year and, for each grantee, whether that grantee has filed the sworn accounting required by subsection (c) of this section and whether the sworn accounting is in compliance with subsection (c) of this section.
(6) Ensure funds are spent in accordance with the purposes for which they were granted and hold the grantees accountable for the legal and appropriate expenditure of State grant funds.
(7) Provide for adequate oversight and monitoring to prevent the misuse of State funds.
(b1) Grantee Responsibilities. – A grantee that receives a grant of State funds shall:
(1) Ensure funds are spent in accordance with the purposes for which they were granted and be accountable for the legal and appropriate expenditure of State grant funds.
(2) Maintain reports, records, and other information to properly account for the expenditure of all State grant funds received by the grantee and to make the reports, records, and other information available to the grantor State agency or the State Auditor for oversight, monitoring, and evaluation purposes.
(3) Hold any non‑State entity to which the grantee provides a grant of State funds accountable for the legal and appropriate expenditure of State grant funds.
(4) Adhere to the reporting requirements mandated by this section.
(c) Grantee Receipt and
Expenditure Reports. – A grantee that receives, uses, or expends between
fifteen thousand dollars ($15,000) and three hundred thousand dollars
($300,000) in State funds annually must file annually with the State Auditor
and the State agency that disbursed the funds a sworn accounting of
receipts and expenditures of the State funds and a description of activities
and accomplishments undertaken by the grantee with State funds. This accounting
must be attested to by the treasurer of the grantee and one other authorizing
officer of the grantee. The accounting must be filed within six months after
the end of the grantee's fiscal year in which the State funds were received.
The accounting and the description of activities and accomplishments
shall be in the form formats, including electronic filings,
required by the State Auditor and provided to the grantee by the disbursing
agency.
(d) Grantee Audit Reports. – A grantee that receives, uses, or expends State funds in the amount of three hundred thousand dollars ($300,000) or more annually must file annually with the State Auditor a financial statement in the form and on the schedule prescribed by the State Auditor. These audit reports shall be filed no later than nine months after the close of the grantee's fiscal year. The financial statement must be audited in accordance with standards prescribed by the State Auditor to assure that State funds are used for the purposes provided by law.
A grantee that receives, uses, or expends State funds in the amount of three hundred thousand dollars ($300,000) or more annually must file annually with the State Auditor and the State agency that disbursed the funds a description of activities and accomplishments undertaken by the grantee with State funds. This description must be filed within 90 days after the end of the grantee's fiscal year in which the State funds were received. The description of activities and accomplishments shall be in a format, including electronic filings, required by the State Auditor.
(d1) State Auditor's Responsibilities. – The State Auditor shall:
(1) Review each audit submitted pursuant to subsection (d) of this section and determine that it has been conducted in accordance with generally accepted audit standards and that the grantee has received a clean audit opinion.
(2) Notify disbursing agencies by January 31 each year of all grantees that are not in compliance with the reporting requirements set forth in this section.
(3) Notify disbursing agencies of any material audit findings in the audits of their grantees.
(4) Submit a list to the Office of State Budget and Management by January 31 each year of every grantee that received State funds in the prior fiscal year and, for each grantee, whether that grantee has complied with this subsection.
(d2) Before a State agency disburses any funds for the fourth quarter of a fiscal year, the agency shall, in consultation with the Office of State Budget and Management, verify that the grantee has complied with the reporting requirements of this section. A State agency shall not disburse funds during the fourth quarter of the fiscal year to any grantee that has not complied with this section by March 31 of each year.
(d3) The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by May 1 of each year on all grantees that failed to comply with this section for the prior fiscal year, the amount of State funds that were disbursed to each of those grantees during that fiscal year, and the amount of State funds that were withheld.
(e) Federal Reporting Requirements. – Federal law may require a grantee to make additional reports with respect to funds for which reports are required under this section. Notwithstanding the provisions of this section, a grantee may satisfy the reporting requirements of subsection (c) of this section by submitting a copy of the report required under federal law with respect to the same funds or by submitting a copy of the report described in subsection (d) of this section.
(f) Audit Oversight. – The State Auditor has audit oversight, pursuant to Article 5A of Chapter 147 of the General Statutes, of every grantee that receives, uses, or expends State funds. Such a grantee must, upon request, furnish to the State Auditor for audit all books, records, and other information necessary for the State Auditor to account fully for the use and expenditure of State funds. The grantee must furnish any additional financial or budgetary information requested by the State Auditor. Grantees shall ensure that work papers in the possession of their auditors are available to the State Auditor and provide the work papers upon request. Audit work papers furnished by an auditor of a grantee are not public records and are exempt from G.S. 132‑1."
AUTHORIZE ACQUISITION OF OPTIONS FOR SITE DEVELOPMENT AND AUTHORIZE CONSULTANT CONTRACTS FOR RECRUITMENT
SECTION 6.26.(a) G.S. 143B‑437.02(b) reads as rewritten:
"(b) Fund. – The Site
Infrastructure Development Fund is created as a restricted reserve in the Department
of Commerce. The Department may use the funds in the fund only in accordance
with this section for site development. Funds in the fund do not revert but
remain available to the Department for these purposes. The Department may
use the funds in the fund only for the following purposes:
(1) For site development in accordance with this section.
(2) To acquire options and hold options for the purchase of land in accordance with subsection (m) of this section."
SECTION 6.26.(b) G.S. 143B‑437.02 is amended by adding a new subsection to read:
"(m) Options. – The Department of Commerce may acquire options and hold options for the purchase of land for an anticipated industrial site if all of the following conditions are met:
(1) The options are necessary to provide a large, regional industrial site that cannot be assembled by local governments.
(2) The acquisition of the options is approved by the Committee."
SECTION 6.26.(c) G.S. 143B‑431(b) reads as rewritten:
"(b) The Department of Commerce is authorized to establish and provide for the operation of North Carolina nonprofit corporations for any of the following purposes:
(1) To aid to
achieve the purpose of aiding the development of small businesses.
(2) To businesses
and to achieve the purposes of the United States Small Business
Administration's 504 Certified Development Company Program.
(3) To acquire options and hold options for the purchase of land under G.S. 143B‑437.02."
SECTION 6.26.(d) G.S. 143B‑431 is amended by adding a new subsection to read:
"(b1) The Department of Commerce is authorized to contract for the preparation of proposals and reports in response to requests for proposals for location or expansion of major industrial projects."
WILLIAM FRIDAY INSTITUTE FOR HIGHER EDUCATION LEADERSHIP
SECTION 6.28.(a) The General Assembly makes the following findings:
(1) There is a serious and continuing need for systematic education and training and education within The University of North Carolina to prepare men and women to perform effectively in progressively responsible positions of administrative leadership in colleges and universities in North Carolina and the nation.
(2) The Board of Governors of The University of North Carolina (UNC) and the staff in the Office of the President are in agreement that The University of North Carolina must provide a mechanism by which talented faculty and staff within the UNC system can move into administrative positions.
(3) A significant component of increasing the strength of The University of North Carolina is increasing the administrative acumen of its faculty, department chairs, deans, and other administrators to prepare them for leadership positions.
(4) Historically, academic administrators moved into their positions directly from the faculty, but the complexities of leadership make such changes nearly impossible today.
(5) Business and industry focus on succession planning, climate surveys, and leadership development, but universities have been slower to respond to the need to develop talent within the organization.
(6) Some universities have developed leadership programs, and the best of these programs nationally are those that are responsive to the culture of the institution or system.
(7) Establishing an institute for higher education leadership development will help change the current pattern within the UNC system by providing ongoing professional development for faculty and administrators on UNC campuses.
(8) Faculty and administrators will have opportunities to learn "best practices" from their colleagues as well as from national experts in key areas, and models will be provided that can be transferred back to the campuses.
(9) Administrative internships on campuses and at the Office of the President will provide aspiring administrators opportunities to experience new environments and to learn leadership skills through observation and participation.
(10) It is critical that The University of North Carolina provide opportunities for faculty within the system to advance professionally without having to leave North Carolina.
SECTION 6.28 (b) The Board of Governors of The University of North Carolina shall establish the William Friday Institute for Higher Education Leadership (the "Institute"). The Board of Governors of The University of North Carolina shall also establish an advisory board for the Institute.
SECTION 6.28.(c) The purpose of the Institute is to enable students, faculty, and administrators on the campuses of The University of North Carolina to explore and validate their interest in and fitness for careers in academic administration and to gain skills, insight, information, contacts, and experience through ongoing professional leadership development programs.
Limit USe of Impervious Parking Surfaces for Sale of Nursery Stock
SECTION 6.29.(a) G.S. 143‑214.7 is amended by adding a new subsection to read:
"(d1) A retail merchant shall not use more than 400 square feet of impervious surface area within the portion of the merchant's premises that is designed to be used for vehicular parking for the display and sale of nursery stock, as that term is defined by the Board of Agriculture pursuant to G.S. 106‑423. This subsection shall not apply to a retail merchant that either:
(1) Collects and treats stormwater on‑site using a treatment system that is designed to remove at least eighty‑five percent (85%) of total suspended solids. For purposes of this subdivision, a treatment system includes, but is not limited to, a filtration system or a detention system.
(2) Collects and stores stormwater for reuse on‑site for irrigation or other purposes.
(3) Collects and discharges stormwater to a local or regional stormwater collection and treatment system."
SECTION 6.29.(b) G.S. 143‑215.6A(a) is amended by adding a new subdivision to read:
"(11) Violates or fails to act in accordance with G.S. 143‑214.7(d1)."
SECTION 6.29.(c) This section becomes effective January 1, 2005, and applies only to a retail merchant that first opens a retail premises for business on or after that date or that submits an application for a building permit for the construction or renovation of a retail premises after that date.
FUNDS FOR FARMLAND PRESERVATION PROJECTS
SECTION 6.31.(a) Notwithstanding G.S. 113A‑253, for the 2004‑2005 fiscal year only, the Board of Trustees of the Clean Water Management Trust Fund may allocate up to four million one hundred thousand dollars ($4,100,000) to match federal, State, local, and private farmland preservation and forestland preservation funds and to acquire permanent conservation easements on working farms and forests.
SECTION 6.31.(b) The Department of Agriculture and Consumer Services shall prepare a master plan for farmland preservation in North Carolina. The Department shall review the Farmland Preservation Enabling Act and other conservation and rural and economic development programs in developing a master plan to preserve rural landscapes and promote working farms as a base for the economic, environmental, and social interests of rural North Carolina. No later than March 31, 2005, the Department shall report its findings and recommendations to the chairs of the Senate Committee on Agriculture, Environment, and Natural Resources and the House of Representatives Agriculture Committee.
expansion of the sbi crime lab
SECTION 6.32. There is hereby established a capital construction project to expand the crime laboratory of the State Bureau of Investigation in Raleigh. Notwithstanding any other provision of law, the Director of the Budget shall use up to four million five hundred thousand dollars ($4,500,000) in funds that were unspent and unencumbered upon the completion of capital projects, including funds in a project reserve fund, for this capital construction project.
PART VII. PUBLIC SCHOOLS
SECTION 7.1.(a) Effective for the 2004‑2005 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 2004‑2005 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, 2004, 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 2004‑2005 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.
2004‑2005 Monthly Salary Schedule
"A" Teachers
Years of Experience "A" Teachers NBPTS Certification
0 $2,542 N/A
1 $2,584 N/A
2 $2,628 N/A
3 $2,783 $3,117
4 $2,923 $3,274
5 $3,056 $3,423
6 $3,185 $3,567
7 $3,288 $3,683
8 $3,336 $3,736
9 $3,385 $3,791
10 $3,435 $3,847
11 $3,484 $3,902
12 $3,535 $3,959
13 $3,585 $4,015
14 $3,638 $4,075
15 $3,692 $4,135
16 $3,747 $4,197
17 $3,802 $4,258
18 $3,860 $4,323
19 $3,918 $4,388
20 $3,976 $4,453
21 $4,038 $4,523
22 $4,099 $4,591
23 $4,164 $4,664
24 $4,228 $4,735
25 $4,293 $4,808
26 $4,359 $4,882
27 $4,427 $4,958
28 $4,497 $5,037
29 $4,568 $5,116
30+ $4,568 $5,116
2004‑2005 Monthly Salary Schedule
"M" Teachers
Years of Experience "M" Teachers NBPTS Certification
0 $2,797 N/A
1 $2,843 N/A
2 $2,891 N/A
3 $3,060 $3,427
4 $3,215 $3,601
5 $3,362 $3,765
6 $3,503 $3,923
7 $3,617 $4,051
8 $3,669 $4,109
9 $3,723 $4,170
10 $3,778 $4,231
11 $3,833 $4,293
12 $3,888 $4,355
13 $3,943 $4,416
14 $4,002 $4,482
15 $4,061 $4,548
16 $4,121 $4,616
17 $4,183 $4,685
18 $4,245 $4,754
19 $4,310 $4,827
20 $4,374 $4,899
21 $4,442 $4,975
22 $4,509 $5,050
23 $4,580 $5,130
24 $4,651 $5,209
25 $4,721 $5,288
26 $4,795 $5,370
27 $4,870 $5,454
28 $4,947 $5,541
29 $5,025 $5,628
30+ $5,025 $5,628
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 2004‑2005 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 2004‑2005 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.
SECTION 7.1.(g) As used in this section, the term "teacher" shall also include instructional support personnel.
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
2004‑2005
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,248 ‑ ‑ ‑ ‑
5 $3,396 ‑ ‑ ‑ ‑
6 $3,539 ‑ ‑ ‑ ‑
7 $3,653 ‑ ‑ ‑ ‑
8 $3,706 $3,706 ‑ ‑ ‑
9 $3,760 $3,760 ‑ ‑ ‑
10 $3,816 $3,816 $3,871 ‑ ‑
11 $3,871 $3,871 $3,927 ‑ ‑
12 $3,927 $3,927 $3,983 $4,042 ‑
13 $3,983 $3,983 $4,042 $4,101 $4,163
14 $4,042 $4,042 $4,101 $4,163 $4,225
15 $4,101 $4,101 $4,163 $4,225 $4,288
16 $4,163 $4,163 $4,225 $4,288 $4,353
17 $4,225 $4,225 $4,288 $4,353 $4,417
18 $4,288 $4,288 $4,353 $4,417 $4,486
19 $4,353 $4,353 $4,417 $4,486 $4,554
20 $4,417 $4,417 $4,486 $4,554 $4,627
21 $4,486 $4,486 $4,554 $4,627 $4,697
22 $4,554 $4,554 $4,627 $4,697 $4,769
23 $4,627 $4,627 $4,697 $4,769 $4,843
24 $4,697 $4,697 $4,769 $4,843 $4,919
25 $4,769 $4,769 $4,843 $4,919 $4,996
26 $4,843 $4,843 $4,919 $4,996 $5,076
27 $4,919 $4,919 $4,996 $5,076 $5,177
28 $4,996 $4,996 $5,076 $5,177 $5,281
29 $5,076 $5,076 $5,177 $5,281 $5,387
30 $5,177 $5,177 $5,281 $5,387 $5,495
31 $5,281 $5,281 $5,387 $5,495 $5,604
32 ‑ $5,387 $5,495 $5,604 $5,716
33 ‑ ‑ $5,604 $5,716 $5,831
34 ‑ ‑ $5,716 $5,831 $5,948
35 ‑ ‑ ‑ $5,948 $6,066
36 ‑ ‑ ‑ $6,066 $6,188
37 ‑ ‑ ‑ ‑ $6,312
2004‑2005
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of Prin V Prin VI Prin VII Prin VIII
Exp (44‑54) (55‑65) (66‑100) (101 +)
14 $4,288 ‑ ‑ ‑
15 $4,353 ‑ ‑ ‑
16 $4,417 $4,486 ‑ ‑
17 $4,486 $4,554 $4,697 ‑
18 $4,554 $4,627 $4,769 $4,843
19 $4,627 $4,697 $4,843 $4,919
20 $4,697 $4,769 $4,919 $4,996
21 $4,769 $4,843 $4,996 $5,076
22 $4,843 $4,919 $5,076 $5,177
23 $4,919 $4,996 $5,177 $5,281
24 $4,996 $5,076 $5,281 $5,387
25 $5,076 $5,177 $5,387 $5,495
26 $5,177 $5,281 $5,495 $5,604
27 $5,281 $5,387 $5,604 $5,716
28 $5,387 $5,495 $5,716 $5,831
29 $5,495 $5,604 $5,831 $5,948
30 $5,604 $5,716 $5,948 $6,066
31 $5,716 $5,831 $6,066 $6,188
32 $5,831 $5,948 $6,188 $6,312
33 $5,948 $6,066 $6,312 $6,438
34 $6,066 $6,188 $6,438 $6,567
35 $6,188 $6,312 $6,567 $6,698
36 $6,312 $6,438 $6,698 $6,831
37 $6,438 $6,567 $6,831 $6,968
38 $6,567 $6,698 $6,968 $7,107
39 ‑ $6,831 $7,107 $7,249
40 ‑ $6,968 $7,249 $7,394
41 ‑ ‑ $7,394 $7,542
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.
(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.
EXPERIENCE STEP INCREASE FOR TEACHERS AND PRINCIPALS IN PUBLIC SCHOOLS
SECTION 7.3.(a) The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2004‑2005 fiscal year, beginning July 1, 2004.
School Administrator I $2,932 $5,398
School Administrator II $3,112 $5,726
School Administrator III $3,303 $6,073
School Administrator IV $3,436 $6,316
School Administrator V $3,574 $6,570
School Administrator VI $3,792 $6,969
School Administrator VII $3,945 $7,249
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee hired on or after July 1, 2004.
SECTION 7.3.(b) The monthly salary ranges that follow apply to public school superintendents for the 2004‑2005 fiscal year, beginning July 1, 2004.
Superintendent I $4,187 $7,691
Superintendent II $4,445 $8,155
Superintendent III $4,716 $8,652
Superintendent IV $5,005 $9,177
Superintendent V $5,312 $9,736
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
Notwithstanding the provisions of this subsection, a local board of education may pay an amount in excess of the applicable range to a superintendent who is entitled to receive the higher amount under Section 7.2(f) of this act.
SECTION 7.3.(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the State Personnel Act.
SECTION 7.3.(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers 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 pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers 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 under this section.
SECTION 7.3.(e) The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.
SECTION 7.3.(f) The annual salary increase for all permanent full‑time personnel paid from the Central Office Allotment shall be the greater of one thousand dollars ($1,000) or two and one‑half percent (2.5%), commencing July 1, 2004. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing salary increases to these personnel.
SECTION 7.4.(a) The annual salary increase for permanent, full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be the greater of one thousand dollars ($1,000) or two and one‑half percent (2.5%), commencing July 1, 2004.
SECTION 7.4.(b) Local boards of education shall increase the rates of pay for such employees who were employed for all or part of fiscal year 2003‑2004 and who continue their employment for fiscal year 2004‑2005 by providing an annual salary increase for employees of the greater of one thousand dollars ($1,000) or two and one‑half percent (2.5%). For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
APPROPRIATIONS FOR CONTINUALLY LOW‑PERFORMING SCHOOLS
SECTION 7.5. Section 7.8 of S.L. 2003‑284 reads as rewritten:
(1) The sum of one million
six hundred fifty‑seven thousand three hundred forty‑five dollars
($1,657,345) for the 2003‑2004 and 2004‑2005 fiscal years fiscal
year and the sum of two hundred ninety‑seven thousand four hundred six
dollars ($297,406) for the 2004‑2005 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 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
(2) The sum of two hundred
ninety‑eight thousand seven hundred seventy dollars ($298,770) for the
2003‑2004 and 2004‑2005 fiscal years fiscal year and the
sum of three hundred five thousand five hundred sixty‑nine dollars
($305,569) for the 2004‑2005 fiscal year 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 2003‑2004
and 2004‑2005 school years.
Notwithstanding any other provision of law, the State Board of Education may implement intervention strategies for the 2003‑2004 and 2004‑2005 school years that it deems appropriate."
SECTION 7.6. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand seven hundred seventy‑three dollars and ninety‑six cents ($2,773.96) per child for a maximum of 166,500 children for the 2004‑2005 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 2004‑2005 allocated average daily membership in the local school administrative unit.
The dollar amounts allocated under this section for children with disabilities shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.7. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of nine hundred fourteen dollars and ninety‑five cents ($914.95) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2004‑2005 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 54,762 children for the 2004‑2005 school year.
The dollar amounts allocated under this section for academically or intellectually gifted children shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children.
SECTION 7.8.(a) Section 7.17 of S.L. 2003‑284 reads as rewritten:
"SECTION 7.17. Of funds appropriated from the General Fund to State Aid to Local School Administrative Units, the sum of five hundred thousand dollars ($500,000) for fiscal year 2003‑2004 and the sum of five hundred thousand dollars ($500,000) for fiscal year 2004‑2005 shall be used to provide assistance to the State's low‑performing Local School Administrative Units (LEAs) and to assist schools in meeting adequate yearly progress in each subgroup identified in the No Child Left Behind Act of 2001. The State Board of Education shall report to the Office of State Budget and Management, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee on the expenditure of these funds by May 15, 2004, and by December 15, 2005. The report shall contain: (i) the criteria for selecting LEAs and schools to receive assistance, (ii) measurable goals and objectives for the assistance program, (iii) an explanation of the assistance provided, (iv) findings from the assistance program, (v) actual expenditures by category, (vi) recommendations for the continuance of this program, and (vii) any other information the State Board deems necessary. These funds shall not revert at the end of each fiscal year but shall remain available until expended for this purpose."
SECTION 7.8.(b) This section becomes effective June 30, 2004.
LOCAL EDUCATION AGENCY FLEXIBILITY
SECTION 7.9. Section 7.23 of S.L. 2003‑284 reads as rewritten:
"SECTION 7.23.
Within 14 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. appropriations for the
2003‑2004 fiscal year. Within 14 days of the date the Current Operations
and Capital Improvements Appropriations Act of 2004 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 for the 2004‑2005
fiscal year. The State Board shall determine the amount of the reduction
for each unit for each fiscal year 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 2003‑2004 fiscal year for the unit within 30
days of the date this act becomes law and by September 1, 2004, within
30 days of the date the Current Operations and Capital Improvements
Appropriations Act of 2004 becomes law for reductions for the 2004‑2005
fiscal year. No later than December 31, 2003, the The State Board
of Education shall make a summary report to the Office of State Budget and
Management and the Fiscal Research Division on all reductions made by the LEAs
to achieve this reduction.reduction for the 2003‑2004 fiscal
year by December 31, 2003, and for the 2004‑2005 fiscal year by December 31,
2004.
For fiscal years 2003‑2004
and 2004‑2005, 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 the allotment categories listed in this paragraph 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. By August 15, 2004, for fiscal year 2005‑2006 and
subsequent fiscal years, the State Board of Education shall determine the changes
to the allotment categories to make such reductions permanent. Notwithstanding
other provisions of law, the State Board of Education has the authority to
reduce the proposed funding level of any allotment category in the State Public
School Fund or the Department of Public Instruction in order to carry out the
requirements of this section to make changes to the proposed continuation
budget for the 2005‑2007 fiscal biennium. The changes proposed by the
State Board of Education shall be subject to the approval of the General
Assembly."
SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
SECTION 7.9A. Section 7.7(a) of S.L. 2003‑284 reads as rewritten:
"SECTION 7.7.(a) Funds for Small School Systems. – Except as provided in subsection (b) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of fewer than 3,175 students and (ii) to each county school administrative unit with an average daily membership from 3,175 to 4,000 students if the county in which the local school administrative unit is located has a county‑adjusted property tax base per student that is below the State‑adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,175 to 4,000 students. The allocation formula shall:
(1) Round all fractions of positions to the next whole position.
(2) Provide five and one‑half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four, and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or fewer.
(3) Provide additional program enhancement teachers adequate to offer the standard course of study.
(4) Change the duty‑free period allocation to one teacher assistant per 400 average daily membership.
(5) Provide a base for the
consolidated funds allotment of at least six hundred fourteen thousand one
hundred forty‑eight dollars ($614,148), excluding textbooks for the 2003‑2004
fiscal year and a base of six hundred forty‑seven thousand four
hundred eighty‑one dollars ($647,481) seven hundred forty thousand
seventy‑four dollars ($740,074) for the 2004‑2005 fiscal year.
(6) Allot vocational education funds for grade 6 as well as for grades 7‑12.
If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fully fund the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis. This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county administrative units."
REPLACEMENT SCHOOL BUSES FUNDS
SECTION 7.10. Section 7.25(a) of S.L. 2003‑284 reads as rewritten:
"SECTION
7.25.(a) Of the funds appropriated to the State Board of Education, the
Board may use up to fifteen million dollars ($15,000,000) for the 2003‑2004
fiscal year and up to forty‑seven million seven hundred fifty‑two
thousand eight hundred thirteen dollars ($47,752,813) thirty‑seven
million two hundred thirty‑nine thousand nine hundred twelve dollars
($37,239,912) for the 2004‑2005 fiscal year for allotments to local
boards of education for replacement school buses under G.S. 115C‑249(c)
and (d). In making these allotments, 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, second, or third
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 7.11. G.S.115C‑174.11(a) reads as rewritten:
"§ 115C‑174.11. Components of the testing program.
(a) Assessment Instruments
for First and Second Grades. – The State Board of Education shall adopt and
provide to the local school administrative units developmentally appropriate
individualized assessment instruments consistent with the Basic Education
Program for the first and second grades, rather than standardized tests. Local
school administrative units may use these assessment instruments provided to
them by the State Board for first and second grade students, and shall not use
standardized tests.tests except as required as a condition of
receiving a federal grant under the Reading First Program."
EVALUATE VALIDITY OF ABC ACCOUNTABILITY SYSTEM
SECTION 7.12.(a) G.S. 115C‑105.35 reads as rewritten:
"§ 115C‑105.35. Annual performance goals.
(a) The School‑Based Management and Accountability Program shall (i) focus on student performance in the basics of reading, mathematics, and communications skills in elementary and middle schools, (ii) focus on student performance in courses required for graduation and on other measures required by the State Board in the high schools, and (iii) hold schools accountable for the educational growth of their students. To those ends, the State Board shall design and implement an accountability system that sets annual performance standards for each school in the State in order to measure the growth in performance of the students in each individual school. During the 2004‑2005 school year and at least every five years thereafter, the State Board shall evaluate the accountability system and, if necessary, modify the testing standards to assure the testing standards continue to reasonably reflect the level of performance necessary to be successful at the next grade level or for more advanced study in the content area.
As part of this evaluation, the Board shall, where available, review the historical trend data on student academic performance on State tests. To the extent that the historical trend data suggest that the current standards for student performance may not be appropriate, the State Board shall adjust the standards to assure that they continue to reflect the State's high expectations for student performance.
(b) For purposes of
this Article, beginning school year 2002 2003, the State Board shall
include a "closing the achievement gap" component in its measurement
of educational growth in student performance for each school. The "closing
the achievement gap" component shall measure and compare the performance
of each subgroup in a school's population to ensure that all subgroups as
identified by the State Board are meeting State standards.
(c) The State Board shall consider incorporating into the School‑Based Management and Accountability Program a character and civic education component which may include a requirement for student councils."
SECTION 7.12.(b) The State Board shall complete its initial evaluation and any necessary modifications to the testing standards required under G.S. 115C‑105.35, as rewritten by subsection (a) of this section, so that the modified standards are in effect no later than the 2005‑2006 school year.
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
SECTION 7.13. The State Board of Education shall use funds appropriated in this act for State Aid to Local School Administrative Units to provide incentive funding for schools that met or exceeded the projected levels of improvement in student performance during the 2003‑2004 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.
DISCONTINUE INEFFECTIVE PROGRAM
SECTION 7.14. Section 7.20(a) of S.L. 2003‑284 is repealed.
RESTORE VOCATIONAL EDUCATION FUNDING
SECTION 7.15.(a) Section 7.37 of S.L. 2003‑284 reads as rewritten:
"SECTION
7.37. It is the intent of the General Assembly to eliminate funding for
vocational education in the seventh grade. Local school administrative
units shall make every effort to focus the vocational education budget
reductions on the seventh grade for 2003‑2004 school year. For the 2004‑2005
school year, after making the base allotment for each local school
administrative unit, the State Board of Education shall use the average daily
membership for grades eight through twelve only to calculate vocational
education budget allotments to local school administrative units. For the
2004‑2005 school year, local school administrative units shall take all
of the vocational education budget reductions for the 2003‑2005 biennium
in the seventh grade before making reductions to other grades.
Priority use of these funds should be to provide vocational education in grades
eight through 12."
SECTION 7.15.(b) G.S. 115C‑151 reads as rewritten:
"§ 115C‑151. Statement of purpose.
It is the intent of the General
Assembly that vocational and technical education be an integral part of the
educational process. The State Board of Education shall administer through
local boards of education a comprehensive program of vocational and technical
education that shall be available to all students students, with
priority given to students in grades eight through 12, who desire it in the
public secondary schools and middle schools of this State. The purposes of
vocational and technical education in North Carolina public secondary schools
shall be:
(1) Occupational Skill Development. – To prepare individuals for paid or unpaid employment in recognized occupations, new occupations, and emerging occupations.
(2) Preparation for Advanced Education. – To prepare individuals for participation in advanced or highly skilled vocational and technical education.
(3) Career Development; Introductory. – To assist individuals in the making of informed and meaningful occupational choices.
It is also legislative intent to authorize the State Board of Education to support appropriate vocational and technical education instruction and related services for individuals who have special vocational and technical education needs which can be fulfilled through a comprehensive vocational and technical education program as designated by State Board of Education policy or federal vocational and technical education legislation."
SECTION 7.15.(c) G.S. 115C‑157 reads as rewritten:
"§ 115C‑157. Responsibility of local boards of education.
Each local school administrative
unit, shall provide free appropriate vocational and technical education
instruction, activities, and services in accordance with the provisions of this
Part for all youth youth, with priority given to youth in grades
eight through 12, who elect the instruction and shall have responsibility
for administering the instruction, activities, and services in accordance with
federal and State law and State Board of Education policies."
HEALTHFUL SCHOOL FOOD CHOICES/PILOT PROGRAM
SECTION 7.17.(a) The State Board of Education, with the advice and assistance of The North Carolina School Food Service Association and the Academy of Family Physicians, shall develop and implement a pilot program to support the efforts of local school administrative units to provide only healthful, nutritious food choices to students. The State Board of Education shall select up to eight local school administrative units to participate in the pilot program and shall set standards for the food choices offered to students. In selecting the eight pilot units, the State Board shall give priority to those units that volunteer to be a pilot. The pilots shall be distributed geographically throughout the State.
For the 2004‑2005 school year, pilot units shall implement the program in elementary schools.
SECTION 7.17.(b) If, at the end of the 2004‑2005 school year, the State Board of Education finds that a pilot unit experienced a decrease in food service revenues because students opted not to purchase the healthful, nutritious food choices offered by the school food service, the State Board shall reimburse the unit for that decrease in revenues.
VISITING INTERNATIONAL FACULTY
SECTION 7.18. Section 7.41 of S.L. 2003‑284 reads as rewritten:
STATE BOARD OF EDUCATION AUTHORITY TO SET CERTIFICATION STANDARDS FOR TEACHERS
SECTION 7.19.(a) G.S. 115C‑296 reads as rewritten:
"§ 115C‑296. Board sets certification requirements.
(a) The State Board of
Education shall have entire control of certifying all applicants for teaching
positions in all public elementary and high schools of North Carolina; and it
shall prescribe the rules and regulations for the renewal and extension of all
certificates and shall determine and fix the salary for each grade and type of
certificate which it authorizes: Provided, that the authorizes.
The State Board of
Education shall may require each an applicant for
an initial bachelors degree certificate or graduate degree certificate to
demonstrate the applicant's academic and professional preparation by achieving
a prescribed minimum score on a standard examination appropriate and adequate
for that purpose. The State Board of Education shall permit an applicant to
fulfill this any such testing requirement before or during the
applicant's second year of teaching provided the applicant took the examination
at least once during the first year of teaching. The State Board of Education
shall make the any required standard initial certification exam
sufficiently rigorous and raise the prescribed minimum score as necessary to
ensure that each applicant has adequate academic and professional preparation
to teach.
(a1) The State Board shall
adopt policies that establish the minimum scores for the any required
standard examinations and other measures necessary to assess the
qualifications of professional personnel as required under subsection (a) of
this section. For purposes of this subsection, the State Board shall not be
subject to Article 2A of Chapter 150B of the General Statutes. At least 30 days
prior to changing any policy adopted under this subsection, the State Board
shall provide written notice to all North Carolina schools of education and to
all local boards of education. The written notice shall include the proposed
revised policy.
.…"
SECTION 7.19.(b) G.S. 115C‑296.1(c) reads as rewritten:
"(c) A local board may
re‑employ as a teacher an individual the board initially employed under
subdivisions (a)(2)b and (a)(2)c of this section. If the individual, either
prior to initial employment or within one year after initial employment, takes
and passes the any required standard examination adopted by the
State Board under G.S. 115C‑296(a) that is or was applicable to the
grade or subject the individual is employed to teach, then upon re‑employment
the individual is deemed to have satisfied the academic and professional
preparation required to receive an initial State teacher certificate. An
individual who receives an initial certificate under this subsection is subject
to the same requirements for continuing certification as other teachers who
hold initial State teacher certificates. If the individual, within one year of
the initial employment, does not take and pass the any required standard
examination adopted by the State Board under G.S. 115C.296(a) that is
applicable to the grade or subject the individual is employed to teach, then
upon re‑employment the individual shall continue to hold a provisional
certificate and is subject to G.S. 115C‑296(c)."
SECTION 7.19.(c) Subsection (b) of this section expires September 1, 2006.
STUDY STRATEGIES FOR FACILITATING STUDENT PARTICIPATION IN TEACHER PREPARATION PROGRAMS
SECTION 7.19A. The Joint Legislative Education Oversight Committee shall study strategies for facilitating student participation in teacher preparation programs. In the course of the study, the Committee shall review existing programs that facilitate student participation in teacher preparation programs such as (i) university and community college collaborative programs; (ii) distance learning programs; and (iii) any other existing teacher preparation programs other than traditional four‑year residential programs. The Committee shall also consider other strategies for increasing the number of teachers certified such as establishing branch campuses and providing other distance learning programs. The Committee shall make recommendations, including recommendations on pilot programs, to the 2005 General Assembly by January 15, 2005.
MAINTAIN 12‑MONTH VOCATIONAL AGRICULTURE TEACHER POSITIONS
SECTION 7.20. G.S. 115C‑302.1(b) reads as rewritten:
"(b) Salary Payments. – State‑allotted teachers shall be paid for a term of 10 months. State‑allotted months of employment for vocational education to local boards shall be used for the employment of teachers of vocational and technical education for a term of employment to be determined by the local boards of education. However, local boards shall not reduce the term of employment for any vocational agriculture teacher personnel position that was 12 calendar months for the 1982‑83 school year for any school year thereafter. In addition, local boards shall not reduce the term of employment for any vocational agriculture teacher personnel position that was 12 calendar months for the 2003‑2004 school year for any school year thereafter.
Each local board of education shall establish a set date on which monthly salary payments to State‑allotted teachers shall be made. This set pay date may differ from the end of the month of service. The daily rate of pay for teachers shall equal one twenty‑second of the monthly rate of pay.
Teachers may be prepaid on the monthly pay date for days not yet worked. A teacher who fails to attend scheduled workdays or who has not worked the number of days for which the teacher has been paid and who resigns, is dismissed, or whose contract is not renewed shall repay to the local board any salary payments received for days not yet worked. A teacher who has been prepaid and continues to be employed by a local board but fails to attend scheduled workdays may be subject to dismissal under G.S. 115C‑325 or other appropriate discipline.
Any individual teacher who is not employed in a year‑round school may be paid in 12 monthly installments if the teacher so requests on or before the first day of the school year. The request shall be filed in the local school administrative unit which employs the teacher. The payment of the annual salary in 12 installments instead of 10 shall not increase or decrease the teacher's annual salary nor in any other way alter the contract made between the teacher and the local school administrative unit. Teachers employed for a period of less than 10 months shall not receive their salaries in 12 installments."
ACCOUNTABILITY ASSESSMENT FOR AGRICULTURAL EDUCATION
SECTION 7.20A. During the 2005‑2006 school year, the State Board of Education shall submit an amended State Career‑Technical Education Plan to the United States Department of Education to:
(1) Permit the State Board to field test the North Carolina Agricultural Education Program Standards and collect data on these Standards for two years;
(2) Permit the use of the data collected under the field test as an alternative to the end‑of‑course tests in the Vocational Education Competency Achievement Tracking System (VoCATS) and authorize the use of that data to satisfy the technical attainment requirement for continued Carl D. Perkins funding;
(3) Require the Department of Public Instruction and the Department of Agricultural Education at North Carolina State University to monitor the program to ensure compliance with all Standards; and
(4) Authorize the State Board of Education to determine whether to use the North Carolina Agricultural Education Program Standards on a statewide basis if the two years of field testing are successful.
The Department of Public Instruction and the Department of Agricultural Education at North Carolina State University shall report on the field test to the Joint Legislative Education Oversight Committee by October 15, 2006.
ADDITIONAL TEACHER POSITIONS FOR THIRD GRADE
SECTION 7.21.(a) The maximum class size limits for third grade established by the State Board of Education for the 2004‑2005 school year shall be reduced by 4.23 from the 2003‑2004 limits, based on an allotment ratio of one teacher for every 18 students.
SECTION 7.21.(b) For the 2004‑2005 school year, local school administrative units shall use these additional teacher positions to reduce class size in third grade.
HIGH SCHOOL WORKFORCE DEVELOPMENT PROGRAM
SECTION 7.22.(a) Funds are appropriated in this act for a high school workforce development program. The purpose of the program shall be to identify students who may not plan to attend or be adequately prepared to attend a two‑ or four‑year degree program and to provide the assistance those students need to earn an Associate Degree the year after their senior year in high school. The Department of Public Instruction shall work closely with the Education Cabinet and the New Schools Project in administering the program.
These funds shall be used to establish five pilot projects in which a local school administrative unit, two‑ and four‑year colleges and universities, and local employers work together to ensure that high school and community college curricula operate seamlessly and meet the needs of participating employers.
SECTION 7.22.(b) The State Board of Education shall conduct an annual evaluation of this program. The evaluation shall include (i) an assessment of the overall impact of this program on student achievement, retention, and employability, (ii) an accounting of how funds and personnel resources were utilized and their impact on student achievement, retention, and employability, and (iii) recommendations for continuance and improvement of the program. The State Board of Education shall report the results of this evaluation to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division, by September 15 of each year.
FUNDS FOR EDUCATION OF STUDENTS AT ECKERD YOUTH ALTERNATIVES THERAPEUTIC CAMP
SECTION 7.22A. If a school‑age child is placed in an Eckerd Youth Alternatives therapeutic camp, the local school administrative unit in which the child resides shall be responsible for the cost of the educational services to the child. The unit shall be responsible for a maximum of one one‑hundred‑eightieth (1/180) of:
(1) The State average per pupil allocation from State funds for average daily membership allotments except for the allocation for children with special needs and for the allocation for children with limited English proficiency; and
(2) If the child is a child with special needs, the State per pupil allocation for children with special needs,
for each day that the child receives educational services in an Eckerd Youth Alternatives therapeutic camp, for a maximum of 180 days.
The Department of Public Instruction shall reduce the allotment to the unit in which the child resides by this amount and shall remit the funds to Eckerd Youth Alternatives.
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT INFORMATION SYSTEM
SECTION 7.23. The Office of State Budget and Management shall, after consultation with the Department of Public Instruction, modify the budget structure for funds budgeted for the Uniform Education Reporting System to separate funds for the development and implementation of NC WISE from funds for other reporting systems. The modified structure shall provide a level of detail sufficient to isolate expenditures for each project.
COUNTY FUNDS FOR CHARTER SCHOOL FACILITY PILOT PROGRAM
SECTION 7.25.(a) A charter school, prior to July 1, 2005, may adopt and present to the local board of education of the local school administrative unit in which it is located a resolution requesting funds for the construction of charter school facilities. The resolution shall describe the intended use of the funds. If the local board of education approves the request, the local board of education shall submit the charter school's request to the board of county commissioners along with the budget request for the local board of education. If the county appropriates funds for the construction of charter school facilities, the local board of education shall transfer the funds to the charter school. The local board of education shall require that the charter school account for the appropriation at the close of the fiscal year. This subsection applies only to the Mount Airy City School Administrative Unit and to Surry County. Definitions applicable to Part 6A of Article 16 of Chapter 115C of the General Statutes apply to this subsection.
SECTION 7.25.(b) If a local board of education, prior to July 1, 2005, submits a charter school's request for funds for the construction of charter school facilities to a county in accordance with subsection (a) of this section, the county may appropriate funds for capital outlay for a charter school located in the county. Before it appropriates funds under this section, the board of commissioners shall hold a public hearing on the matter. A notice of the hearing shall be given at least once a week for two consecutive weeks before the hearing in a newspaper having general circulation in the area. An ordinance appropriating funds under this section may not be adopted after June 30, 2005. No funds may be expended under this section unless the county receives a security interest in the facilities being constructed in the amount of the funds expended.
The county shall not appropriate for charter school facilities (i) any local sales tax revenues earmarked by G.S. 105‑487(a) or G.S. 105‑502(a) for public school capital outlay purposes or for the retirement of debt incurred for public school capital outlay purposes or (ii) any corporate tax revenues earmarked by G.S. 115C‑546.1(b) for the Public School Building Capital Fund. The ordinance making the appropriation shall state specifically what the appropriation is to be used for.
This subsection applies only to the Mount Airy City School Administrative Unit and to Surry County. Definitions applicable to Chapter 153A of the General Statutes apply to this subsection.
IMPLEMENTATION OF ALTERNATE COMPETENCY TESTS
SECTION 7.27. Section 2 of S.L. 2003‑275 reads as rewritten:
"SECTION 2. This act becomes effective July 1, 2003. G.S. 115C‑174.11(b)(3a), as created in Section 1 of this act, shall be implemented no later than the 2004‑2005 school year. The State Board of Education shall adopt or develop and validate the alternate tests required under G.S. 115C‑174.11(b)(3), as amended by Section 1 of this act, no later than April 15, 2005, and shall implement these alternate tests beginning with the 2005‑2006 school year."
TEACHERS FOR GEOGRAPHICALLY ISOLATED SCHOOLS
SECTION 7.28. The State Board of Education shall modify its policy on the allotment of additional classroom teachers to small schools when consolidation is not feasible due to the geographic isolation of the school to provide for the allotment of additional teachers to any such school in which the average daily membership is 110 or less. In administering this policy with regard to a school located in a local school administrative unit in which the average daily membership is less than 1.5 per square mile, the State Board of Education shall, at a minimum:
(1) Allot teachers to the geographically isolated school on the basis of one classroom teacher per grade level; and
(2) Allot teachers to the remainder of the local school administrative unit under the regular teacher allotment formula.
The State Board may allot additional teachers to the local school administrative unit if demographic conditions warrant.
ENHANCE NUTRITION IN SCHOOL FOOD PROGRAM
SECTION 7.29.(a) G.S. 115C‑264 reads as rewritten:
"§ 115C‑264. Operation.
In the operation of their public school food programs, the public schools shall participate in the National School Lunch Program established by the federal government. The program shall be under the jurisdiction of the Division of School Food Services of the Department of Public Instruction and in accordance with federal guidelines as established by the Child Nutrition Division of the United States Department of Agriculture.
For nutritional purposes, the public schools shall not (i) use cooking oils in their school food programs that contain trans‑fatty acids or (ii) sell processed foods containing trans‑fatty acids that were formed during the commercial processing of the foods.
Each school may, with the approval of the local board of education, sell soft drinks to students so long as soft drinks are not sold (i) during the lunch period, (ii) at elementary schools, or (iii) contrary to the requirements of the National School Lunch Program.
All school food services shall be operated on a nonprofit basis, and any earnings therefrom over and above the cost of operation as defined herein shall be used to reduce the cost of food, to serve better food, or to provide free or reduced‑price lunches to indigent children and for no other purpose. The term "cost of operation" shall be defined as actual cost incurred in the purchase and preparation of food, the salaries of all personnel directly engaged in providing food services, and the cost of nonfood supplies as outlined under standards adopted by the State Board of Education. "Personnel" shall be defined as food service supervisors or directors, bookkeepers directly engaged in food service record keeping and those persons directly involved in preparing and serving food: Provided, that food service personnel shall be paid from the funds of food services only for services rendered in behalf of lunchroom services. Any cost incurred in the provisions and maintenance of school food services over and beyond the cost of operation shall be included in the budget request filed annually by local boards of education with boards of county commissioners. It shall not be mandatory that the provisions of G.S. 115C‑522(a) and 143‑129 be complied with in the purchase of supplies and food for such school food services."
SECTION 7.29.(b) This section becomes effective August 1, 2005.
ENCOURAGE LEAS TO APPLY FOR E‑RATE REIMBURSEMENTS
SECTION 7.30. The State Board of Education shall identify all local school administrative units not applying for reimbursements under the federal E‑rate Program and shall encourage and provide them with technical assistance on doing so.
STUDY THE EFFICACY OF PROVIDING FOR STAFF DEVELOPMENT THROUGH REGIONAL EDUCATION SERVICE ALLIANCES
SECTION 7.31. The Joint Legislative Education Oversight Committee may consider the efficacy of providing for staff development in the core curricular areas through teacher‑on‑loan positions at Regional Education Service Alliances (RESAs). The Regional Education Service Alliances would:
(1) Establish a uniform system of delivery that provides member school systems with the opportunity for consistent professional development activities;
(2) Expand services to member school systems, which include regional, on‑site, and follow‑up training for educators in the core curricular areas;
(3) Employ content specialists highly knowledgeable of the North Carolina Standard Course of Study as consistent and reliable resources for member school districts; and
(4) Identify, communicate, and assist with the implementation of State educational initiatives.
The positions would be under the direction and supervision of an on‑site RESA director.
If the Joint Legislative Education Oversight Committee undertakes the study, the Committee shall report the results of the study to the 2005 General Assembly.
LOCAL SCHOOL CONSTRUCTION FINANCING STUDY
SECTION 7.32.(a) Establishment of the Commission. – The Local School Construction Financing Study Commission is established.
SECTION 7.32.(b) Membership. – The Commission shall be composed of 20 members, as follows:
(1) One member appointed by the Governor, after consultation with the President Pro Tempore of the Senate and the Speaker of the House of Representatives, who shall serve as chair;
(2) Eight members appointed by the President Pro Tempore of the Senate: two members of the Senate from urban areas, two members of the Senate from rural areas, one member representing a large, fast‑growing, urban school administrative unit that is a plaintiff in the Leandro school‑financing litigation, one member from the financial services industry, one county commissioner, and one educator;
(3) Eight members appointed by the Speaker of the House of Representatives: two members of the House of Representatives from urban areas, two members of the House of Representatives from rural areas, one member representing a rural school administrative unit that is a plaintiff in the Leandro school‑financing litigation, one member who is knowledgeable about municipal and school finance, one school board member, and one educator;
(4) The State Treasurer or a designee;
(5) The State Superintendent of Public Instruction or a designee; and
(6) The chair of the State Board of Education.
Vacancies shall be filled by the appointing authority.
SECTION 7.32.(c) Duties of the Commission. – The Commission shall examine the present system of local financing for school facilities and shall study alternative options for financing local school construction, renovation, repair, and maintenance. The Commission may study and consider public‑private partnerships for school construction and facility ownership, sale lease‑back arrangements, private and commercial financing arrangements, design standards for school facilities that may facilitate alternative financing techniques, alternative local revenue sources for financing school facilities, the use of real estate investment trusts, State and local construction bond pools, and any other financing issues deemed pertinent by the Commission.
SECTION 7.32.(d) Expenses of Members. – Members of the Commission shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 7.32.(e) Consultants and Other Staff. – The Commission may hire consultants to provide research, staff support, and information about school financing in other states to the Commission, in accordance with G.S. 120‑32.02. The Legislative Services Office, with the prior approval of the Legislative Services Commission, shall also assign professional and clerical staff to assist the Commission in its work.
SECTION 7.32.(f) Cooperation by Government Agencies. – The Commission may call upon any department, agency, institution, or officer of the State or any political subdivision of the State for facilities, data, or other assistance. All State departments and agencies, local governments, and their subdivisions shall cooperate with the Commission and, upon request, shall furnish the Commission and its staff any information in their possession or available to them.
SECTION 7.32.(g) Meetings During Legislative Session. – The Commission may meet during a regular or extra session of the General Assembly.
SECTION 7.32.(h) Meeting Location. – The Legislative Services Commission shall grant adequate meeting space to the Commission in the State Legislative Building or the Legislative Office Building. The Commission may also meet at various locations around the State in order to promote greater public participation in its deliberations.
SECTION 7.32.(i) Reports. – The Commission shall make an interim report to the 2005 General Assembly no later than January 31, 2005, and a final report to the 2006 Regular Session of the 2005 General Assembly no later than March 31, 2006. The final report shall contain recommendations for legislation to implement recommendations made by the Commission. The interim report may also contain recommendations for legislation. The Commission shall terminate on March 31, 2006.
SECTION 7.32.(j) Notwithstanding the provisions of G.S. 115C‑546.1(b), the Secretary of Revenue shall remit to the State Treasurer for credit to the General Assembly the sum of one hundred thousand dollars ($100,000) of the funds to be deposited in the Public School Building Capital Fund pursuant to G.S. 115C‑546.1(b) during the 2004‑2005 fiscal year. These funds shall be used for the expenses of the Local School Construction Financing Study Commission. The Commission may also apply for, receive, or accept grants and contributions, subject to the provisions of G.S. 120‑32.03, to support the work of the Commission.
SECTION 7.33.(a) The Department of Public Instruction, in carrying out its duties and responsibilities under Article 13 of Chapter 7B of the General Statutes, shall collaborate with the Division of Social Services and with statewide child abuse and neglect prevention experts with regards to the following:
(1) Best practices in child abuse and neglect prevention programs and policies.
(2) Exploration of additional revenue sources for the protection of children in this State.
(3) Educational programs to ensure statewide awareness of the Children's Trust Fund, and its purpose and mission.
SECTION 7.33.(b) The Department of Public Instruction shall report annually on revenues and expenditures of the Children's Trust Fund to the Joint Legislative Commission on Governmental Operations.
PART VIII. COMMUNITY COLLEGES
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM PROJECT
SECTION 8.1.(a) Funds appropriated to the Community Colleges System Office for the College Information System Project shall not revert at the end of the 2003‑2004 fiscal year but shall remain available until expended.
SECTION 8.1.(c) Subsection (a) of this section becomes effective June 30, 2004.
SECTION 8.2.(b) This section becomes effective June 30, 2004.
SALARIES OF COMMUNITY COLLEGE FACULTY AND PROFESSIONAL STAFF
It is imperative that the State move community college faculty and professional staff salaries to the national average. The estimated incremental costs of doing so over five years are thirty‑three million two hundred eighty‑nine thousand three hundred seventy‑one dollars ($33,289,371) for the 2004‑2005 fiscal year, twenty‑one million ninety‑two thousand sixty‑six dollars ($21,092,066) for the 2005‑2006 fiscal year, twenty‑one million five hundred seventy‑four thousand five hundred three dollars ($21,574,503) for the 2006‑2007 fiscal year, twenty‑two million ninety‑five thousand five hundred thirty‑two dollars ($22,095,532) for the 2007‑2008 fiscal year, and twelve million four hundred twenty‑seven thousand five hundred thirty‑one dollars ($12,427,531) for the 2008‑2009 fiscal year.
(1) Vocational Diploma/Certificate or Less. – This education level includes faculty members who are high school graduates, have vocational diplomas, or have completed one year of college.
(2) Associates Degree or Equivalent. – This education level includes faculty members who have an associates degree or have completed two or more years of college but have no degree.
(3) Bachelors Degree.
(4) Masters Degree or Education Specialist.
(5) Doctoral Degree.
Education Level Minimum Salary
Vocational Diploma/Certificate or Less $28,512
Associates Degree or Equivalent $28,944
Bachelors Degree $30,817
Masters Degree or Education Specialist $32,478
Doctoral Degree $34,874.
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.
(1) It is the intent of the General Assembly to encourage community colleges to make faculty salaries a priority and to reward colleges that have taken steps to achieve the national average, therefore:
a. If the average faculty salary at a community college is one hundred percent (100%) or more of the national average community college faculty salary, the college may transfer up to eight percent (8%) of the State funds allocated to it for faculty salaries.
b. If the average faculty salary at a community college is at least ninety‑five percent (95%) but less than one hundred percent (100%) of the national average community college faculty salary, the college may transfer up to six percent (6%) of the State funds allocated to it for faculty salaries.
c. If the average faculty salary at a community college is at least ninety percent (90%) but less than ninety‑five percent (95%) of the national average community college faculty salary, the college may transfer up to five percent (5%) of the State funds allocated to it for faculty salaries.
d. If the average faculty salary at a community college is at least eighty‑five percent (85%) but less than ninety percent (90%) of the national average community college faculty salary, the college may transfer up to three percent (3%) of the State funds allocated to it for faculty salaries.
e. If the average faculty salary at a community college is eighty‑five percent (85%) or less of the national average community college faculty salary, the college may transfer up to two percent (2%) of the State funds allocated to it for faculty salaries.
Except as provided by subdivision (2) of this subsection, a community college shall not transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by this subsection.
(2) With the approval of the State Board of Community Colleges, a community college at which the average faculty salary is eighty‑five percent (85%) or less of the national average may transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by sub‑subdivision e. of subdivision (1) of this subsection. The State Board shall approve the transfer only for purposes that directly affect student services.
The State Board of Community Colleges shall adopt rules to implement the provisions of this subdivision.
(3) A local community college may use all State funds allocated to it except for Literacy Funds and Funds for New and Expanding Industries to increase faculty salaries.
SECTION 8.3.(e) As used in this section:
(1) "Average faculty salary at a community college" means the total nine‑month salary from all sources of all nine‑month, full‑time, curriculum faculty at the college, as determined by the North Carolina Community College System on October 1 of each year.
(2) "National average community college faculty salary" means the nine‑month, full‑time, curriculum salary average, as published by the Integrated Postsecondary Education Data System (IPEDS), for the most recent year for which data are available.
SECTION 8.3.(h) Funds appropriated in this act for salary increases shall be used to:
(1) Implement the minimum salaries set out in subsection (c) of this section. Funds shall be allocated to those colleges with faculty below the minimum salary in each education level as determined by the North Carolina Community College System. These funds shall only be used to bring the salaries of full‑time faculty members to the applicable minimum; and
(2) Increase faculty and professional staff salaries by an average of two percent (2%). These increases are in addition to other salary increases provided for in this act and shall be calculated on the average salaries prior to the issuance of the compensation increase. Colleges may provide additional increases from funds available.
The State Board of Community Colleges shall adopt rules to ensure that these funds are used only to move faculty and professional staff to the respective national averages. These funds shall not be transferred by the State Board or used for any other budget purpose by the community colleges.
MODIFY REPORTING REQUIREMENT FOR NEW AND EXPANDING INDUSTRY TRAINING PROGRAM
SECTION 8.4. G.S.115D‑5(i) reads as rewritten:
"(i) The State Board of
Community Colleges shall report to the Joint Legislative Education Oversight
Committee on March 1 and October 1 September 1 of each year on
expenditures for the New and Expanding Industry Program each fiscal year. The
report shall include, for each company or individual that receives funds for
New and Expanding Industry:
(1) The total amount of funds received by the company or individual;
(2) The amount of funds per trainee received by the company or individual;
(3) The amount of funds received per trainee by the community college training the trainee;
(4) The number of trainees trained by company and by community college; and
(5) The number of years the companies or individuals have been funded."
NEW AND EXPANDING INDUSTRIES TRAINING PROGRAM FUNDS
SECTION 8.5.(a) Funds available to the New and Expanding Industries Program shall not revert at the end of the 2003‑2004 fiscal year but shall remain available until expended.
SECTION 8.5.(b) This section becomes effective June 30, 2004.
CENTER FOR APPLIED TEXTILE TECHNOLOGY/MODIFY BOARD MEMBERSHIP
SECTION 8.6. G.S. 115D‑68 reads as rewritten:
"§ 115D‑68. Creation of board of trustees; members and terms of office; no compensation.
The North Carolina Center for
Applied Textile Technology shall be managed, subject to policies and
regulations of the State Board of Community Colleges, by a board of trustees.
The board of trustees shall consist of the President of the North Carolina
System of Community Colleges and nine members appointed by the Governor.
The terms of office of the trustees appointed by the Governor shall be
as follows: Three of the trustees shall be appointed for a term of two years;
three for three years; and three for four years. At the expiration of those
terms, the appointments shall be made for periods of four years. In the event
of any vacancy on the board, the vacancy shall be filled by appointment of the
Governor for the unexpired term of the member causing the vacancy. The members
of the board of trustees appointed by the Governor shall serve without
compensation."
STUDY OF THE NORTH CAROLINA CENTER FOR APPLIED TEXTILE TECHNOLOGY
SECTION 8.6A.(a) The State Board of Community Colleges shall study the North Carolina Center for Applied Textile Technology (NCCATT). In the course of the study, the State Board shall consider:
(1) The mission and purpose of the Center;
(2) The Center's programs and course of study;
(3) Any duplication of courses offered by community colleges;
(4) The Center's expenditures, receipts, and potential funding mechanisms;
(5) The population served by the Center, including students and industry; and
(6) The Center's status within the Community College System.
The State Board shall seek input, during the course of the study, from representatives of the North Carolina textile industry, members of the NCCATT Board of Trustees, the Department of Commerce, representatives of the College of Textiles at North Carolina State University, the Director of the Hosiery Technology Center at Catawba Valley Community College, and other interested parties.
SECTION 8.6A.(b) The State Board shall determine whether the Center should (i) remain an independent institution under the Community College System, (ii) be administered by a community college, (iii) be dissolved and the property transferred from State to county ownership, or (iv) be otherwise administered.
If the State Board determines that the Center should remain an independent institution under the Community College System or be administered by a community college, the State Board shall identify necessary changes to the Center's organization and funding structure, mission and purpose, programs or services currently offered, and governance.
SECTION 8.6A.(c) The State Board shall consult with the Education Subcommittee of the Joint Legislative Commission on Governmental Operations on the results of the study and shall provide a written report on the results of the study to the Office of State Budget and Management, the chairs of the Joint Legislative Education Oversight Committee, and the chairs of the finance committees of the Senate and the House of Representatives, no later than October 30, 2004.
SECTION 8.6A.(d) Notwithstanding Article 6 of Chapter 115D of the General Statutes or any other provision of law, the State Board of Community Colleges, in consultation with the Office of State Budget and Management, shall implement the results of the study by January 1, 2005.
FUNDS FOR THE BUREAU OF TRAINING INITIATIVES
SECTION 8.7.(a) The Community Colleges System Office may carry forward the unexpended balance of funds appropriated for the 2003‑2004 fiscal year from the Worker Training Trust Fund to the Community College System Office, Bureau of Training Initiatives. These funds shall be used for pilot programs that support the retraining of the existing workforce in new skills related to specific industry sectors. The purposes for which the funds may be used in the pilot programs include targeted assessments, training equipment, software, third‑party trainers, and supplies and material costs. Any unexpended balance remaining in this program shall revert to the Worker Training Trust Fund on June 30, 2005.
SECTION 8.7.(b) This act becomes effective June 30, 2004.
FUNDS FOR THE COMPREHENSIVE ARTICULATION AGREEMENT STUDY
SECTION 8.8.(a) Section 8.12(h) of S.L. 2003‑284 reads as rewritten:
"SECTION 8.12.(h) The University of North Carolina, Office of the President, and the North Carolina Community College System shall each transfer thirty‑five thousand dollars ($35,000) to the Joint Legislative Education Oversight Committee to carry out this study. Funds transferred by the North Carolina Community College System that are not expended shall not revert on June 30, 2004, but shall remain available for the 2004‑2005 fiscal year to pay costs associated with the study."
SECTION 8.8.(b) This section becomes effective June 30, 2004.
REPORT ON THE ADEQUACY OF MULTICAMPUS AND OFF‑CAMPUS CENTER FUNDS
Of the funds appropriated in this act for off‑campus centers, ten thousand dollars ($10,000) shall be used by the State Board to assist State Board‑approved centers with less than 50 FTE. The State Board shall allocate these funds to qualifying colleges on the basis of actual FTE enrollment at the centers.
Notwithstanding any other provision of law, funds appropriated to the Community Colleges System Office for multicampus colleges or off‑campus centers shall be used only for the administration of the multicampus college or off‑campus center for which the funds were allotted. These funds shall not be transferred to any other campus or center, or used for any other purpose.
SECTION 8.11.(a) Funds appropriated for a middle college program at Edgecombe Community College shall not revert at the end of the 2003‑2004 fiscal year but shall remain available until expended.
SECTION 8.11.(b) This section becomes effective June 30, 2004.
MATCHING FUNDS FOR THE CAREER START PROJECT
SECTION 8.12. Community colleges may use funds earned through the continuation education enrollment allotment for Human Resource Development Programs to match federal grants for the Career Start Project.
SECTION 8.13. The State Board of Community Colleges shall consider modifications to its funding formulas to ensure that colleges have sufficient funds to adequately serve students when enrollment increases. In the course of the study, the State Board shall consider methods of accurately projecting enrollment for the upcoming academic year and using projected enrollment in its funding formulas. The State Board shall also consider modifications to its funding formulas to ensure that adequate funding is provided for high‑cost programs.
The State Board shall report the results of its study to the Joint Legislative Education Oversight Committee and to the chairs of the appropriations committees of the House of Representatives and the Senate by January 15, 2005.
(1) Increase the FTE allotment for the spring semester of the 2004‑2005 school year at colleges that experience a total enrollment growth for the fall semester of the 2004‑2005 school year of over ten percent (10%). Each such college shall receive an increase in its FTE allotment for the spring semester equal to the amount the enrollment increase exceeded ten percent (10%), insofar as funds are available within the enrollment reserve; and
(2) Provide one‑time grants to colleges in areas with high unemployment due to manufacturing job losses. These funds shall be used only for additional faculty, guidance counselors, financial aid officers, and equipment that are necessary to meet the specific needs of the workers who are unemployed due to manufacturing job losses.
Funds not expended or encumbered for this purpose shall revert to the General Fund at the end of the 2004‑2005 fiscal year.
The State Board of Community Colleges shall adopt rules to determine eligibility for funds from the contingency reserve.
STATE BOARD RESERVE ALLOCATION FOR MAINTENANCE OF PLANT
SECTION 8.16. The State Board of Community Colleges may use up to one hundred thousand dollars ($100,000) from the State Board Reserve for the 2004‑2005 fiscal year to assist small rural low‑wealth community colleges with operation and maintenance of plant costs if they need to assist new or expanding industries in their service delivery areas.
STATEWIDE MILITARY BUSINESS CENTER AND HOMELAND SECURITY BUSINESS INCUBATOR
SECTION 8.17.(a) The funds appropriated in this act to the Community Colleges System Office for a military business center to provide for a statewide system of military procurement shall be used as follows:
(1) The sum of two hundred thousand dollars ($200,000) shall be used by the North Carolina Electronics and Information Technologies Association to develop, in conjunction with MCNC, a proposal for the development and operation of a homeland security business incubator. The North Carolina Electronics and Information Technologies Association shall make a report on this proposal to the Joint Legislative Education Oversight Committee no later than February 28, 2005.
(2) The remainder of these funds shall be used for the development and operation of a military business center by Fayetteville Technical Community College. The military business center shall provide services to residents and businesses throughout the State. These funds shall be used for:
a. The development and operation of a statewide business assistance center. The purpose of the business assistance center is to serve as a coordinator and facilitator for small‑ and medium‑sized businesses throughout the State seeking to win and complete military contracts. Activities of the business assistance center shall include:
1. Training and mentoring eligible businesses on effectively marketing their products and services to military clients and contracting offices.
2. Assisting eligible businesses with any required accreditations and qualifications for government contracting.
3. Teaching eligible businesses about federal set‑aside programs and how to take advantage of these programs directly or through partnering with other eligible businesses.
4. Training and assisting clients with the registration, proposal development, and bidding processes related to military contracts.
5. Training eligible businesses on legal and regulatory compliance.
6. Designing and implementing mentoring programs to facilitate the development of interrelationships between eligible businesses.
7. Forecasting the need for and assisting eligible businesses in obtaining advanced certifications and accreditations and advanced manufacturing skills and technologies.
8. Assisting eligible businesses in advising military clients on retaining project funding.
9. Working with Small Business Centers throughout the State to carry out these activities on a statewide basis.
b. The development and maintenance of an Internet‑based system to match the knowledge, skills, and abilities of active‑duty military personnel, veterans, and their families throughout the State with the needs of North Carolina businesses.
c. The study of community resources and existing business capacity to meet the current and future needs of the military and the development of proposals for further developing community resources and developing or recruiting new businesses to meet those needs.
d. The marketing of the services provided by the military business center.
e. The planning and implementation of the development of an industrial park to house military contractors.
These funds shall not revert at the end of the fiscal year but shall remain available for expenditure for these purposes.
SECTION 8.17.(b) G.S. 66‑58(c) is amended by adding a new subdivision to read:
"(3b) The operation of a military business center by a community college. For the purposes of this subdivision, the term 'military business center' means a facility that serves to coordinate and facilitate interactions between the United States Armed Forces; military personnel, veterans, and their families; and private businesses."
SECTION 8.17.(c) Fayetteville Technical Community College shall report to the Joint Legislative Education Oversight Committee prior to September 1, 2005, on expenditures of funds pursuant to this section.
PART IX. UNIVERSITIES
SECTION 9.1. The Chancellor of each constituent institution shall report to the Board of Governors of The University of North Carolina on the management flexibility adjustments made to the General Fund budget codes in order to meet the 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 Office of State Budget and Management and the Fiscal Research Division by December 31, 2004, on all reductions made by these entities and constituent institutions in order to reduce the budgets by the targeted amounts.
NEED‑BASED FINANCIAL AID FROM ESCHEAT FUNDS
SECTION 9.2.(a) There is appropriated from the Escheat Fund to the Board of Governors of The University of North Carolina the sum of twenty‑eight million six hundred ten thousand two hundred forty dollars ($28,610,240) for the 2004‑2005 fiscal year and to the State Board of Community Colleges the sum of seven hundred eighteen thousand three hundred ninety‑six dollars ($718,396) for the 2004‑2005 fiscal year. These funds shall be allocated by the State Educational Assistance Authority for need‑based student financial aid in accordance with G.S. 116B‑7 and this act. The use of principal is allowed if interest income is insufficient.
SECTION 9.2.(b) The Director of the Budget shall include Escheat Fund appropriations in the amounts provided in subsection (a) of this section in the proposed 2005‑2007 fiscal biennium continuation budget for the purposes provided in G.S. 116B‑7.
SECTION 9.2.(c) There is appropriated from the Escheat Fund to the Board of Governors of The University of North Carolina the sum of three hundred ninety thousand dollars ($390,000) for the 2004‑2005 fiscal year to be allocated to the State Education Assistance Authority for need‑based student financial aid to be used in accordance with G.S. 116B‑7 and this act. The State Education Assistance Authority shall use these funds only to provide scholarship loans to North Carolina high school seniors interested in preparing to teach in the State's public schools who also enroll at any of the Historically Black Colleges and Universities that do not have Teaching Fellows. An allocation of 20 grants of six thousand five hundred dollars ($6,500) each shall be given to the three universities without any Teaching Fellows for the purposes specified in this subsection. The State Education Assistance Authority shall administer these funds and shall establish any additional criteria needed to award these scholarship loans, the conditions for forgiving the loans, and the collection of the loan repayments when necessary.
AREA HEALTH EDUCATION CENTER (AHEC) FUNDS
SECTION 9.3. Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the 2004‑2005 fiscal year and in all subsequent fiscal years, the Board of Governors shall allocate the sum of twenty‑four thousand dollars ($24,000) to the Wilmington AHEC program annually and the sum of twenty‑four thousand dollars ($24,000) to the Region L AHEC program on an annual basis for information highway line charges.
UNC BOND PROJECT MODIFICATIONS
SECTION 9.4.(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 Agricultural & Technical State University by:
(1) Substituting a project entitled "New School of Education" for a project entitled "Central Cooling Plant Phase I" as contained in Section 2(a) of S.L. 2000‑3, as it has been determined, based on an independent engineering analysis, that the cooling plant project is not technically feasible.
(2) The cancellation of "New Student Housing" and "Curtis Residence Hall‑Replacement." The money from "New Student Housing" and "Curtis Residence Hall‑Renovation" should be transferred to "Scott Residence Hall‑Replacement."
(3) The cancellation of "Holland Residence Hall‑Comprehensive Renovation." The unused money should be transferred to "Zoe Barbee Residence Hall‑Comprehensive Renovation."
Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under North Carolina Agricultural & Technical State University as follows:
(1) By substituting the "New School of Education" for "Central Cool Plant‑Phase I."
(2) By deleting "New Student Housing 1,897,900" and "Curtis Residence Hall‑Replacement 3,723,500" and by amending "Scott Residence Hall‑Replacement" to create a total allocation of thirty‑one million eight hundred seventy‑four thousand seven hundred dollars ($31,874,700).
(3) By deleting "Holland Residence Hall‑Comprehensive Renovation 856,800" and by amending "Zoe Barbee Residence Hall‑Comprehensive Renovation" to create a total allocation of four million five hundred fifty thousand six hundred dollars ($4,550,600).
SECTION 9.4.(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 and research program requirements at East Carolina University to reduce the scope of "Expansion & Renovation of the Old Nursing Building" by three million dollars ($3,000,000) to a total allocation of eleven million six hundred eighty‑five thousand five hundred dollars ($11,685,500) and transferring the unused funds to " 'Old Cafeteria' Office Building‑Comprehensive Renovation for Student Services/Academic Use" to create a total allocation of seven million four hundred forty‑two thousand one hundred dollars ($7,442,100).
Section 2(a) of S.L. 2000‑3 is therefore amended under the portion under East Carolina University by reduction of allocations for the project entitled "Expansion and Renovation of the Old Nursing Building 14,685,500" by three million dollars ($3,000,000) to a total allocation of eleven million six hundred eighty‑five thousand five hundred dollars ($11,685,500) and the addition of the money to allocations for the project entitled " 'Old Cafeteria' Office Building‑Comprehensive Renovation for Student Services/Academic Use 4,442,100" by three million dollars ($3,000,000) to create a total allocation of seven million four hundred forty‑two thousand one hundred dollars ($7,442,100).
SECTION 9.4.(c) 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 the University of North Carolina at Wilmington, due to growth in enrollment and programs offered, by reducing the scope of the comprehensive renovation of the "Alderman Hall Classroom Building" and by reducing the scope of the comprehensive renovation of the "Kenan Auditorium," both as contained in Section 2(a) of S.L. 2000‑3, and by transferring a portion of the funds allocated to these two projects to the comprehensive renovation of the "King Hall Classroom Building," "James Hall Classroom Building," and "Kenan Hall Classroom Building," as contained in Section 2(a) of S.L. 2000‑3.
Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under the University of North Carolina at Wilmington, by reducing the money allocated to "Alderman Hall Classroom Building" by two million two hundred four thousand six hundred fifty‑two dollars ($2,204,652) to create a total allocation of seven hundred thirty‑six thousand one hundred forty‑eight dollars ($736,148), by reducing the monies allocated to "Kenan Auditorium" by one million one hundred seventy‑three thousand three hundred twenty‑five dollars ($1,173,325) to create a total allocation of one million nine hundred twenty‑one thousand nine hundred seventy‑five dollars ($1,921,975) and by reallocating the money saved as follows: increase the budget of "King Hall" from two million six hundred ninety‑seven thousand four hundred dollars ($2,697,400) to three million five hundred twenty‑seven thousand four hundred dollars ($3,527,400), increase the budget for "Hinton James Hall" from one million four hundred sixty‑eight thousand dollars ($1,468,000) to two million eight hundred fifty‑four thousand twenty‑five dollars ($2,854,025), and increase the budget of "Kenan Hall" from three million fifty‑six thousand six hundred dollars ($3,056,600) to four million two hundred eighteen thousand five hundred fifty‑two dollars ($4,218,552).
SECTION 9.4.(d) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interests of the State to respond to current educational and research program requirements at Fayetteville State University by changing the scope of the "Comprehensive Renovation and Conversion of Spaulding (Old Infirmary) for Public Safety Facilities" to "Comprehensive Renovation of Spaulding for Student Health Services and Student Counseling."
Section 2(a) of S.L. 2000‑3 is therefore amended by retitling the project currently entitled "Comprehensive Renovation and Conversion of Spaulding (Old Infirmary) for Public Safety Facilities" to "Comprehensive Renovation of Spaulding for Student Health Services and Student Counseling."
SECTION 9.4.(e) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interests of the State to respond to current educational and research program requirements at Fayetteville State University by reallocating unused money from the "William Collins Building Renovation" to a new project entitled "Mitchell Building Renovation for use by Public Safety".
Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under Fayetteville State University by reducing the money allocated to "William Collins Building‑Comprehensive Renovation" by three hundred thousand dollars ($300,000) to a total of three hundred forty thousand six hundred dollars ($340,600) and by the addition of a project entitled "Mitchell Building‑Comprehensive Renovation for use by Public Safety $300,000."
SECTION 9.4.(f) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interests of the State to respond to current educational and research program requirements at North Carolina State University by substituting a project entitled "Harrelson Classroom Building‑Replacement Classroom Facility Construction" for the project entitled "Harrelson Classroom Building‑Comprehensive Renovation" as contained in Section 2(a) of S.L. 2000‑3.
Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under North Carolina State University, by deleting "Harrelson Classroom Building‑Comprehensive Renovation" and substituting "Harrelson Classroom Building‑Replacement Classroom Facility Construction."
SECTION 9.4.(g) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interests of the State to respond to current educational and research program requirements at the University of North Carolina at Chapel Hill by deleting a project entitled "Community Health Building‑Consolidation of Programs" as contained in Section 2(a) of S.L. 2000‑3, and dispersing the funds from that project to other health affairs related bond projects.
Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under the University of North Carolina at Chapel Hill by deleting "Community Health Building Consolidation of Programs" and disbursing the funds associated with that project as follows: adding ten million six hundred twenty‑five thousand seven hundred forty‑seven dollars ($10,625,747) to the project entitled "School of Medicine‑Medical Research Building‑Comprehensive Renovation of Classroom & Laboratory Space," for a total of twenty‑three million five hundred twenty thousand seven hundred forty‑seven dollars ($23,520,747); adding one million forty thousand six hundred dollars ($1,040,600) to a project entitled "Burnett Womack Building Research Laboratory‑Comprehensive Renovation," for a total of twenty‑five million eight hundred eighty‑eight thousand six hundred dollars ($25,888,600), and adding six million six hundred seventy‑three thousand six hundred fifty‑three dollars ($6,673,653) to a project entitled "Berryhill Hall Laboratory Building‑Comprehensive Renovation" for a total of seventeen million three hundred seventy‑three thousand six hundred fifty‑three dollars ($17,373,653).
SECTION 9.4.(h) Nothing in this section is intended to supersede any other requirement of law or policy for approval of the substituted capital improvement projects.
FAYETTEVILLE STATE UNIVERSITY AND NORTH CAROLINA SCHOOL OF THE ARTS RETAIN REAL PROPERTY PROCEEDS
SECTION 9.5. Notwithstanding any other provision of law, Fayetteville State University and the North Carolina School of the Arts may retain the proceeds from the sale of their existing chancellor's residences and the appurtenant land.
Fayetteville State University may use the proceeds from the sale of its existing chancellor's residence and the appurtenant land, and any other nonappropriated funds available, to construct or otherwise acquire a new chancellor's residence. Proceeds from the sale not used for that purpose shall revert.
The North Carolina School of the Arts may use the proceeds from the sale of its existing chancellor's residence and the appurtenant land, and any other nonappropriated funds available, to construct or otherwise acquire a new chancellor's residence. Proceeds from the sale not used for that purpose shall revert.
NORTH CAROLINA SCHOOL OF SCIENCE AND MATH CARRYOVER/ONETIME EXPENDITURES
SECTION 9.6. G.S. 116‑30.2(b) reads as rewritten:
"(b) The North Carolina School of Science and Mathematics is authorized to be designated as a special responsibility constituent institution for the purposes of G.S. 116‑30.1, G.S. 116‑30.3, G.S. 116‑30.4, G.S. 116‑30.5, G.S. 116‑30.6, and G.S. 116‑31.10. In addition, all General Fund appropriations made by the General Assembly for continuing operations of the North Carolina School of Science and Mathematics shall be made in the form of a single sum to each budget code of the School for each year of the fiscal period for which the appropriations are being made. Notwithstanding G.S. 143‑23(a1), G.S. 143‑23(a2), and G.S. 120‑76(8), the North Carolina School of Science and Mathematics may expend monies from the overhead receipts special fund budget code and the General Fund monies so appropriated to it in the manner deemed by the Director of the School to be calculated to maintain and advance the programs and services of the School, consistent with the directives and policies of the Board of Trustees of the North Carolina School of Science and Mathematics. The preparation, presentation, and review of General Fund budget requests of the North Carolina School of Science and Mathematics shall be conducted in the same manner as are requests of the constituent institutions. The quarterly allotment procedure established under G.S. 143‑17 shall apply to the General Fund appropriations made for the current operations of the North Carolina School of Science and Mathematics. All General Fund monies so appropriated to the North Carolina School of Science and Mathematics shall be recorded, reported, and audited in the same manner as are General Fund appropriations to constituent institutions of The University of North Carolina."
EVALUATE SCIENCE & MATH SCHOOL TUITION GRANTS
SECTION 9.6A.(a) It is the intent of the General Assembly that the Board of Governors of The University of North Carolina review, evaluate, and study G.S. 116‑238.1, which provides a four‑year tuition grant to any North Carolina resident who graduates from the North Carolina School of Science and Mathematics and enrolls as a full‑time student in a constituent institution of The University of North Carolina.
SECTION 9.6A.(b) The North Carolina School of Science and Mathematics shall collect data on the median family income of the students attending the school.
UNC‑CHAPEL HILL CONTINUE TO OPERATE HORACE WILLIAMS AIRPORT
SECTION 9.7.(b) The University of North Carolina at Chapel Hill shall report to the Joint Legislative Commission on Governmental Operations by July 1, 2006, and biannually thereafter, on progress locating a replacement facility for the Area Health Education Center. The Departments of Administration and Transportation shall assist the University of North Carolina at Chapel Hill as needed to secure a replacement facility.
RESTORE BOND FUNDS USED FOR MOLD REMEDIATION
SECTION 9.8.(a) Of the funds appropriated by this act to the Reserve for Repairs and Renovations and allocated to the Board of Governors of The University of North Carolina for the 2004‑2005 fiscal year the sum of eight million nine hundred six thousand six hundred forty‑two dollars ($8,906,642) shall be allocated to North Carolina Central University to restore the bond funds that were transferred for mold remediation.
SECTION 9.8.(b) The Board of Governors of The University of North Carolina shall repay the Reserve for Repairs and Renovations for the amount allocated by subsection (a) of this section from the proceeds of any recovery by or on behalf of the Board of Governors or North Carolina Central University as a result of litigation, a legal settlement, or an insurance settlement related to recovering the cost of mold remediation.
NORTH CAROLINA SCHOOL OF THE ARTS EXEMPT FROM THE UMSTEAD ACT
SECTION 9.13. G.S. 66‑58(b)(8) reads as rewritten:
"(b) The provisions of subsection (a) of this section shall not apply to:
…
(8) The Greater University of North Carolina with regard to its to:
a. The
University's utilities and other services now operated by it nor to the it.
b. The sale
of articles produced incident to the operation of instructional departments,
articles incident to educational research, articles of merchandise incident to
classroom work, meals, books, or to articles of merchandise not exceeding
twenty‑five cents (25¢) in value when sold to members of the educational
staff or staff auxiliary to education or to duly enrolled students or
occasionally to immediate members of the families of members of the educational
staff or of duly enrolled students nor to the students.
c. The sale
of meals or merchandise to persons attending meetings or conventions as invited
guests nor to the guests.
d. The
operation by the University of North Carolina of an inn or hotel and dining and
other facilities usually connected with a hotel or inn, nor to the inn.
e. The
hospital and Medical School of the University of North Carolina, nor to the Carolina.
f. The
Coliseum of North Carolina State University at Raleigh, and the other schools
and colleges for higher education maintained or supported by the State, nor
to theState.
g. The
Centennial Campus of North Carolina State University at Raleigh, nor to the
Raleigh.
h. The Horace
Williams Campus of the University of North Carolina at Chapel Hill, nor to a
Hill.
i. A
Millennial Campus of a constituent institution of The University of North Carolina,
nor to the Carolina.
j. The comprehensive student health services or the comprehensive student infirmaries maintained by the constituent institutions of the University of North Carolina.
k. Agreements by the North Carolina School of the Arts to the use of that school's facilities, equipment, and services of students, faculty, and staff for the creation of commercial materials and productions that may be unrelated to educational purposes, so long as the proceeds from those agreements are used for the benefit of the educational mission of the North Carolina School of the Arts.
…."
university System and Community College System Study
SECTION 9.14. The Board of Governors of The University of North Carolina shall use up to two million dollars ($2,000,000) of funds appropriated to The University of North Carolina for the 2004‑2005 fiscal year for the comprehensive study of the mission and educational program needs for the University System and the Community College System provided for in House Bill 1264 of the 2004 Regular Session of the 2003 General Assembly if that legislation becomes law.
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES
CENTRALIZE CRIMINAL RECORD CHECK FUNCTIONS
SECTION 10.1. The Department of Health and Human Services shall centralize all activities throughout the Department relating to the coordination and processing of criminal record checks required by law. The centralization shall include the transfer of positions, corresponding State appropriations, federal funds, and other funds. The Department shall implement the centralization beginning January 1, 2005, and shall report on the details of the centralization and implementation 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 January 1, 2005.
STUDY ISSUES RELATED TO MENTALLY ILL RESIDENTS OF LONG‑TERM CARE FACILITIES
(1) Examining whether current State statutes and Departmental rules adequately address the populations served by long‑term care facilities.
(2) Exploring the development of separate licensure categories within the adult care home and nursing home designations to address the various populations being served.
(3) Examining adult care home rules to determine whether they are easy to understand, attainable under current staffing patterns, give appropriate guidance to facility operators according to the needs and characteristics of residents served, support residents' freedom of choice, and whether they support the autonomy, dignity, and independence philosophy of assisted living.
(4) Determining the most effective way to identify mentally ill individuals that have mental health treatment needs.
(5) Examining the criteria for admission of mentally ill individuals to long‑term care facilities to ensure that the health and safety of all residents are safeguarded.
(6) Providing recommendations for improving the quality of care for mentally ill individuals in adult care homes and nursing homes including the potential cost associated with implementing the recommendations.
(7) Identifying specific problems that exist due to mixing aging and mentally ill populations.
AUTOMATIC ENROLLMENT MEDICARE PRESCRIPTION DRUG DISCOUNT CARD
SECTION 10.2B. Notwithstanding any other provision of law to the contrary, the Department of Health and Human Services may enroll senior citizens into the federal Medicare Prescription Drug Discount Program, as follows:
(1) Current and future participants in the State's Senior Care Prescription Drug Assistance Program whose income is not more than one hundred thirty‑five percent (135%) of the federal poverty level are eligible for automatic enrollment.
(2) Prior to automatic enrollment, the Department shall give any person eligible for automatic enrollment the opportunity to decline automatic enrollment.
(3) The State's Senior Care Prescription Drug Assistance Program shall be payor of last resort.
CONSOLIDATION OF MANAGEMENT OF IT OPERATIONS, SERVICES, AND FUNCTIONS WITHIN DHHS
SECTION 10.2C.(a) Based upon information gathered by the Department of Health and Human Services in conducting the recently completed department‑wide examination and analysis of the Department's information technology infrastructure, including IT expenditures and management structure, the Department shall complete planning and begin implementation of those plans to consolidate management of all IT operations, services, and functions that are common to and necessary in all divisions, offices, and programs of the Department.
SECTION 10.2C.(b) The consolidation and implementation should place emphasis on improving successful and timely implementation of IT projects and ongoing maintenance within the Department while eliminating duplication of efforts and equipment, controlling the use of personal service contracts, establishing continuity in process and systems development, strengthening systems security, coordinating and overseeing all IT efforts within the Department, and identifying other efficiencies. The plan for consolidation of these IT functions shall be implemented in a manner that will allow for the maintenance of a complete accounting of IT efforts within the Department and the costs related to those efforts, including identification of funding needs. The plan should set forth the management and operational structure of the consolidated IT function, including how the structure will enhance IT operations and efficiency within the Department.
SECTION 10.2C.(c) The Department shall restrict the future creation or filling of any IT‑related position within any departmental division, office, or program when the function of the position is determined under the consolidation plan to be properly placed or managed within the consolidated IT function.
SECTION 10.2C.(d) The consolidation plan, including time lines for implementation, 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 upon completion, but not later than October 1, 2004. The Department shall provide a report on the progress of implementation of the consolidation plan 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 or before March 1, 2005.
DHHS PAYROLL DEDUCTION FOR CHILD CARE SERVICES
SECTION 10.2D. Pursuant to rules adopted by the State Controller, an employee of the Department of Health and Human Services may, in writing, authorize the Department to periodically deduct from the employee's salary or wages paid for employment by the State, a designated lump sum to be paid to satisfy the cost of services received for child care provided by the Department.
REGULATION OF PHYSICIAN ASSISTANTS RECEIVING, PRESCRIBING, OR DISPENSING FREE PRESCRIPTION DRUGS
SECTION 10.2E.(a) Article 1 of Chapter 90 is amended by adding a new section to read:
"§ 90‑18.2A. Physician assistants receiving, prescribing, or dispensing prescription drugs without charge or fee.
The North Carolina Medical Board shall have sole jurisdiction to regulate and license physician assistants receiving, prescribing, or dispensing prescription drugs under the supervision of a licensed physician without charge or fee to the patient. The provisions of G.S. 90‑18.1(c)(1), (c)(2), and G.S. 90‑85.21(b), shall not apply to the receiving, prescribing, or dispensing of prescription drugs without charge or fee to the patient."
SECTION 10.2E.(b) This section is effective when it becomes law.
NO STATE FUNDS FOR REBIRTHING TECHNIQUE PERFORMED IN ANOTHER STATE
SECTION 10.2F. G.S. 14‑401.21 reads as rewritten:
"§ 14‑401.21. Practicing "rebirthing technique"; penalty.
(a) It is unlawful for a person to practice a technique, whether known as a "rebirthing technique" or referred to by any other name, to reenact the birthing process in a manner that includes restraint and creates a situation in which a patient may suffer physical injury or death.
(b) A violation of this section is punishable as follows:
(1) For a first offense under this section, the person is guilty of a Class A1 misdemeanor.
(2) For a second or subsequent offense under this section, the person is guilty of a Class I felony.
(c) No State funds shall be used to pay for the rebirthing technique made unlawful by this section and performed in another state notwithstanding that the technique, whether known as a rebirthing technique or referred to by any other name, is lawful in that other state."
SECTION 10.3(a) Of the funds appropriated in this act for Community Health Grants for the 2004‑2005 fiscal year, the sum of five million dollars ($5,000,000) in nonrecurring funds shall be used for federally qualified health centers and for those health centers that meet the criteria for federally qualified health centers, and the sum of two million dollars ($2,000,000) shall be used for State‑designated rural health centers and public health departments.
(1) Increase access to preventative and primary care services by uninsured or medically indigent patients in existing or new health center locations;
(2) Establish community health center services in counties where no such services exist;
(3) Create new services or augment existing services provided to uninsured or medically indigent patients, including primary care and preventative medical services, dental services, pharmacy, and behavioral health; and
(4) Increase capacity necessary to serve the uninsured by enhancing or replacing facilities, equipment, or technologies.
Grant funds may not be used to enhance or increase compensation or other benefits of personnel, administrators, directors, consultants, or any other parties. Grant funds may not be used to supplant federal funds traditionally received by federally qualified community health centers and may not be used to finance or satisfy any existing debt.
SECTION 10.3.(b) The Office shall work with the North Carolina Community Health Center Association (hereafter "NCCHCA") and the North Carolina Public Health Association (hereafter "NCPHA") to establish an advisory committee to develop an objective and equitable process for awarding grant funds. The Office shall also develop auditing and accountability procedures. Not more than one percent (1%) of the funds appropriated in this section may be used to reimburse the Office for administering the grant program in collaboration with the NCCHCA and the NCPHA.
SECTION 10.3.(c) Recipients of grant funds shall provide to the Office annually a written report detailing the number of additional uninsured and medically indigent patients that are cared for, the types of services that were provided, and any other information requested by the Office as necessary for evaluating the success of the grant program.
SECTION 10.3.(d) The Office shall work with the NCCHCA and NCPHA to study and present recommendations for continuing funds to support the expansion of community health centers, State‑designated rural health centers, and public health departments to serve more of the State's uninsured and indigent population. The Office shall submit the report to the 2005 General Assembly upon its convening.
SECTION 10.4. Section 10.19 of S.L. 2003‑284 reads as rewritten:
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 the 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 Wholesale
cost plus a dispensing fee.fee to the provider.
(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.Payment
for materials is made to a contractor in accordance with 42 C.F.R. § 431.54(d).
Fees paid to dispensing providers are negotiated fees established by the State
agency based on industry charges.
(16) Ambulatory Surgical Centers. – Payment as prescribed in the reimbursement plan established by the Department of Health and Human Services.
(17) Medicare Crossover Claims. – By not later than October 1, 2005, the Department shall apply Medicaid medical policy to Medicare claims for dually eligible recipients. The Department shall pay 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:services provided by:
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, licensed psychological associates, licensed
professional counselors, licensed marriage and family therapists, certified
clinical addictions specialists, and certified clinical supervisors, when
Medicaid‑eligible children are referred by the Carolina ACCESS Community
Care of North Carolina primary care physician physician, a
Medicaid‑enrolled psychiatrist, or the area mental health program,program
or local management entity, 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.
c. For Medicaid‑eligible adults, services provided by 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, licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, certified clinical addictions specialists, and certified clinical supervisors, Medicaid‑eligible adults may be self‑referred.
d. Payments made for services rendered in accordance with this subdivision shall be to qualified providers in accordance with approved policies and the State Plan. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to modify the scope of practice of any service provider, practitioner, or licensee, nor to modify or attenuate any collaboration or supervision requirement related to the professional activities of any service provider, practitioner, or licensee. Nothing in sub‑subdivision b. or c. of this subdivision shall be interpreted to require any private health insurer or health plan to make direct third‑party reimbursements or payments to any service provider, practitioner, or licensee.
e. The Department of Health and Human Services shall not enroll licensed psychological associates, licensed professional counselors, licensed marriage and family therapists, certified clinical addiction specialists, and certified clinical supervisors until all of the following conditions have been met:
1. The fiscal impact of payments to these qualified providers has been projected;
2. Funding for any projected requirements in excess of budgeted Division of Medical Assistance funding has been identified from within State funds appropriated to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, to support area mental health programs or county programs, or identified from other sources; and
3. Approval has been obtained from the Office of State Budget and Management to transfer these State or other source funds from the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to the Division of Medical Assistance. Upon approval and implementation, the Department of Health and Human Services shall, on a quarterly basis, provide a status report to the Office of State Budget and Management and the Fiscal Research Division.
Notwithstanding G.S. 150B‑21.1(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 sub‑subdivisions 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. Orthotics. –
Reimbursement in accordance with the State Plan approved by the Department of
Health and Human Services.Services, except that in order to be
eligible for reimbursement providers must be Board certified not later than
July 1, 2005. Medically necessary prosthetics and orthotics are subject to
prior approval and utilization review.
(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 subdivision 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 purchase a performance bond in an amount not to exceed 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. The Department may waive or limit the requirements of this paragraph for one or more classes of Medicaid‑enrolled providers based on the provider's dollar amount of monthly billings to Medicaid or the length of time the provider has been licensed in this State to provide services. In waiving or limiting requirements of this paragraph, the Department shall take into consideration the potential fiscal impact of the waiver or limitation on the State Medicaid Program. The Department may adopt temporary rules in accordance with G.S. 150B‑21.1 as necessary to implement this provision.
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.
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.
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 10.19.(n) The Department of Health and Human Services shall provide Medicaid to 19‑, 20‑, and 21‑year‑olds in accordance with federal rules and regulations.
(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 one 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 one through five 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 six 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 10.19.(q) 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.
(1) During the development of
new medical coverage policy or amendment to existing medical coverage policy,
consult with and seek the advice of the Physician Advisory Group of the North
Carolina Medical Society and other organizations the Secretary deems
appropriate. The Secretary shall also consult with and seek the advice of
officials of the professional societies or associations representing providers groups
listed in subdivision (a)(6) of this section who are affected by the new
medical coverage policy or amendments to existing medical coverage policy
due to their involvement with or use of new technologies or therapies.policy.
(2) At least 45 days prior to the adoption of new or amended medical coverage policy, the Department shall:
a. Publish the proposed new or amended medical coverage policy on the Department's web site;
b. Notify all Medicaid providers of the proposed, new, or amended policy; and
c. Upon request, provide persons copies of the proposed medical coverage policy.
(3) During the 45‑day period immediately following publication of the proposed new or amended medical coverage policy, accept oral and written comments on the proposed new or amended policy.
(4) If, following the comment period, the proposed new or amended medical coverage policy is modified, then the Department shall, at least 15 days prior to its adoption:
a. Notify all Medicaid providers of the proposed policy;
b. Upon request, provide persons notice of amendments to the proposed policy; and
c. Accept additional oral or written comments during this 15‑day period."
MEDICAID RESERVE FUND TRANSFER
SECTION 10.5.(a) Section 10.20 of S.L. 2003‑284 reads as rewritten:
"SECTION 10.20. Of the
funds transferred to the Department of Health and Human Services for Medicaid
programs pursuant to G.S. 143‑23.2, the sum of sixty‑two
million five hundred thousand dollars ($62,500,000) for the 2003‑2004
fiscal year and the sum of sixty‑two million five hundred thousand
dollars ($62,500,000) eighty‑six million nine hundred fifty‑four
thousand two hundred fifty‑one dollars ($86,954,251) for the 2004‑2005
fiscal year shall be allocated as prescribed by G.S. 143‑23.2(b) for
Medicaid programs. Notwithstanding the prescription in G.S. 143‑23.2(b)
that these funds not reduce State general revenue funding, these funds shall
replace the reduction in general revenue funding effected in this act."
TRANSFER OF PROPERTY TO QUALIFY FOR MEDICAID/TECHNICAL CORRECTION
SECTION 10.6. G.S. 108A‑58, as amended by Section 10.26 of S.L. 2003‑284, reads as rewritten:
"§ 108A‑58. Transfer of property for purposes of qualifying for medical assistance; periods of ineligibility.
(a) Any person, otherwise eligible, who, either while receiving medical assistance benefits or within the time period mandated by controlling federal law, sells, gives, assigns or transfers countable real or personal property or an interest in real or personal property for the purpose of retaining or establishing eligibility for medical assistance benefits, shall be ineligible to receive medical assistance benefits as set forth in section 1917(c) of the Social Security Act. Countable real and personal property includes real property, excluding a homesite, unless other applicable federal or State law requires the homesite to be counted for transfer of property purposes, intangible personal property, nonessential motor and recreational vehicles, nonincome producing business equipment, boats and motors. The provisions of this act shall not apply to the sale, gift, assignment or transfer of real or personal property if and to the extent that the person applying for medical assistance would have been eligible for such assistance notwithstanding ownership of such property or an interest therein.
(b) Any sale, gift, assignment or transfer of real or personal property or an interest in real or personal property, as provided in subsection (a) of this section, shall be presumed to have been made for the purpose of retaining or establishing eligibility for medical assistance benefits unless the person, or the person's legal representative, who sells, gives, assigns or transfers the property or interest, receives valuable consideration at least equal to the fair market value, less encumbrances, of the property or interest.
(c) Any person who sells, gives, assigns or transfers real or personal property or an interest in real or personal property for the purpose of retaining or establishing eligibility for medical assistance benefits, as provided in subsection (a) of this section, shall, after the time of transfer, be ineligible to receive these benefits until an amount equal to the uncompensated value of the property or interest has been expended by or on behalf of the person for the person's maintenance and support, including medical expenses, paid or incurred, or shall be ineligible based on the period of time required under section 1917(c) of the Social Security Act.
(d) The sale, gift, assignment or transfer for a consideration less than fair market value, less encumbrances, of any tangible personal property which was acquired with the proceeds of sale, assignment or transfer of real or intangible personal property described in subsection (a) of this section or in exchange for such real or intangible personal property shall be presumed to have been for the purpose of evading the provisions of this section if the acquisition and sale, gift, assignment or transfer of the tangible personal property is by or on behalf of a person receiving medical assistance or within the time period mandated by controlling federal law and the consequences of the sale, gift, assignment of transfer of such tangible personal property shall be determined under the provisions of subsections (c) and (f) of this section.
(e) The presumptions created by subsections (b) and (d) may be overcome if the person receiving or applying for medical assistance, or the person's legal representative, establishes by the greater weight of the evidence that the sale, gift, assignment or transfer was exclusively for some purpose other than retaining or establishing eligibility for medical assistance benefits.
(f) For the purpose of establishing uncompensated value under subsection (c), the value of property or an interest therein shall be the fair market value of the property or interest at the time of the sale, gift, assignment or transfer, less the amount of compensation, if any, received for the property or interest. There shall be a rebuttable presumption that the fair market value of real property is the most recent property tax value of the property, as ascertained according to Subchapter II of Chapter 105 of the General Statutes. Fair market value for purpose of this subsection shall be such value, determined as above set out, less any legally enforceable encumbrances to which the property is subject.
(g) Repealed by Session Laws 2003‑284, s. 10.26, effective July 1, 2003.
(h) This section shall not apply to applicants for or recipients of Work First Family Assistance or to persons entitled to medical assistance by virtue of their eligibility for Work First Family Assistance.
(i) This section
shall apply only to transfers made before July 1, 1988."
MEDICAID ASSESSMENT PROGRAM FOR ICF/MR FACILITIES
SECTION 10.8.(d) The Secretary shall adopt rules to implement this section.
COMMUNITY ALTERNATIVES PROGRAMS
SECTION 10.9.(a) In administering CAP Programs, the Department of Health and Human Services shall ensure that expenditures do not exceed the budget for these programs. The Department shall further ensure that CAP slots are fully allocated and filled in a timely manner within budgeted expenditures and shall ensure that budgeted expenditures are not limited by the nonallocation of or delays in filling CAP slots.
SECTION 10.9.(b) Community Alternatives Programs for Disabled Adults (CAP/DA) services shall be provided for the 2004‑2005 fiscal year to any eligible person who entered a nursing facility on or before June 1, 2004, within the existing availability of the county allocation or within the existing availability of services.
PILOT PROGRAM TO TEST NEW APPROACHES TO MANAGING ACCESS TO AND UTILIZATION OF HEALTH CARE SERVICES TO MEDICAID RECIPIENTS
SECTION 10.11. The Department of Health and Human Services shall establish and implement two or more pilot programs to test new approaches to management of access to and utilization of health care services to Medicaid recipients. The purpose of the pilot programs is to determine if additional cost savings can be achieved in addition to that provided by the Community Care of North Carolina program. With respect to at least two of the pilot programs, the Department shall contract with a physician‑owned and managed network that has demonstrated success in improving the cost‑effectiveness of Medicaid services in at least one state other than North Carolina. The Department shall develop a payment methodology that may include sharing savings with contractors providing medical management services but the methodology shall not allow increased spending relative to current appropriations. The Department may apply for federal waivers necessary to implement this section. The Department shall report on the implementation of the pilot programs 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 not later than February 1, 2005.
SECTION 10.12.(a) The Department of Health and Human Services, Division of Medical Assistance, shall develop a pilot program to implement the Program for All‑Inclusive Care for the Elderly (PACE). One pilot site shall be planned for the southeastern area of the State and the other pilot site shall be planned for the western area of the State. The Division shall design the pilot program to access federal Medicaid and Medicare dollars to provide acute and long‑term care services for older patients through the use of interdisciplinary teams. When implemented, services provided through the PACE pilot program may include physician visits, drugs, rehabilitation services, personal care services, hospitalization, and nursing home care. The PACE pilot program may also offer social services intervention, case management, respite care, or extended home care nursing.
SECTION 10.12.(b) Of the funds appropriated to the Department of Health and Human Services, Division of Medical Assistance, for the 2004‑2005 fiscal year, the sum of one hundred twenty‑three thousand one hundred fifty‑six dollars ($123,156) shall be used to support two positions in the Division of Medical Assistance to develop the pilot programs in accordance with subsection (a) of this section. These funds may also be used to contract for actuarial analysis as part of the development of the pilot programs.
SECTION 10.12.(c) The Department of Health and Human Services shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services and the Senate Appropriations Committee on Health and Human Services on March 1, 2005, on PACE pilot program development. The report shall include services proposed to be offered under the pilot program, administrative structure of the pilot program, number of Medicare and Medicaid eligible recipients anticipated to receive services from the PACE pilot sites, and the projected savings to the State from PACE pilot program implementation.
SECTION 10.12.(d) Nothing in this section obligates the General Assembly to appropriate funds to implement the PACE program statewide.
DHHS STUDY MEDICAID INSTITUTIONAL BIAS
SECTION 10.13.(a) The Department of Health and Human Services shall contract with an independent entity to study whether the State's Medicaid program has a bias that favors support for individuals in institutional settings over support for individuals living at home and, if a bias is found, to determine and recommend ways to alleviate the bias. The entity selected by the Department shall be one that has documented experience in conducting similar studies. The study shall include consideration of all in‑home services paid under the State's Medicaid program, including CAP/DA, home health, and personal care services. The Department shall report the results of the study to the North Carolina Study Commission on Aging by January 2005.
SECTION 10.13.(b) From State and federal funds available to the Department of Health and Human Services for the 2004‑2005 fiscal year, the sum of one hundred fifty thousand dollars ($150,000) may be used to fund the study required by this section.
FOSTER CARE AND ADOPTION ASSISTANCE PAYMENTS
SECTION 10.17. Section 10.46 of S.L. 2003‑284 reads as rewritten:
(1) $365.00$390.00
per child per month for children aged birth through 5;
(2) $415.00$440.00
per child per month for children aged 6 through 12; and
(3) $465.00$490.00
per child per month for children aged 13 through 18.
Of these amounts, fifteen dollars ($15.00) is a special needs allowance for the child.
(1) $365.00$390.00
per child per month for children aged birth through 5;
(2) $415.00$440.00
per child per month for children aged 6 through 12; and
(3) $465.00$490.00
per child per month for children aged 13 through 18.
(1) $800.00 per child per month with indeterminate HIV status;
(2) $1,000 per child per month confirmed HIV‑infected, asymptomatic;
(3) $1,200 per child per month confirmed HIV‑infected, symptomatic; and
(4) $1,600 per child per month terminally ill with complex care needs."
SPECIAL CHILDREN ADOPTION FUND
SECTION 10.18. Section 10.47 of S.L. 2003‑284 reads as rewritten:
"SECTION 10.47.(c) The Division of Social Services shall monitor the total expenditures in the Special Children Adoption Fund and redistribute unspent funds to ensure that the funds are used according to the guidelines established in subsection (a) of this section. The Division shall implement strategies to ensure that funds that have historically reverted for this program are used for the intended purpose. The Division shall report 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 on the expenditures and activities of the program no later than December 1, 2004, and June 30, 2005."
FUNDS FOR CHILD PROTECTIVE SERVICES STAFF
SECTION 10.19A. Section 10.49(a) of S.L. 2003‑284 reads as rewritten:
"SECTION 10.49.(a)
The General Assembly approves the plan titled "North Carolina Temporary
Assistance for Needy Families State Plan FY 2003‑2005", prepared by
the Department of Health and Human Services and presented to the General
Assembly on April 28, 2003, as revised in accordance with subsection (b) of
this section.section, except that the provision contained in the
approved North Carolina Temporary Assistance for Needy Families State Plan FY
2003‑2005 eliminating pay‑after‑performance as a benefit
delivery method for two‑parent families will only be implemented if the
federal two‑parent work participation rate is eliminated. The North
Carolina Temporary Assistance for Needy Families State Plan covers the period
October 1, 2003, through September 30, 2005. The Department shall submit the
State Plan, as revised in accordance with subsection (b) of this section, to
the United States Department of Health and Human Services as amended by this
act or any other act of the 2003 General Assembly."
IV‑E CHILD CARING INSTITUTIONS
SECTION 10.19B. The Department of Health and Human Services shall work with the federal government and child caring institutions to ensure that adequate funds are available to support child caring institution operations.
LONG‑TERM CARE FACILITY CRIMINAL RECORD CHECKS
SECTION 10.19D.(a) G.S. 131E‑265(a) and 131E‑265(a1) read as rewritten:
"§ 131E‑265. Criminal history record checks required for certain applicants for employment.
(a) Requirement; Nursing Home or Home Care Agency. – An offer of employment by a nursing home licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned on consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. An offer of employment by a home care agency licensed under this Chapter to an applicant to fill a position that requires entering the patient's home is conditioned on consent to a criminal history record check of the applicant. In addition, employment status change of a current employee of a home care agency licensed under this Chapter from a position that does not require entering the patient's home to a position that requires entering the patient's home shall be conditioned on consent to a criminal history record check of that current employee. If the applicant for employment or if the current employee who is changing employment status has been a resident of this State for less than five years, then the offer of employment or change in employment status is conditioned on consent to a State and national criminal history record check. The national criminal history record check shall include a check of the applicant's or current employee's fingerprints. If the applicant or current employee has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant or current employee applying for a change in employment status. A nursing home or a home care agency shall not employ an applicant who refuses to consent to a criminal history record check required by this section. In addition, a home care agency shall not change a current employee's employment status from a position that does not require entering the patient's home to a position that requires entering the patient's home who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, a nursing home or home care agency shall submit a request to the Department of Justice under G.S. 114.19.10 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10, the Department of Justice shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Division of Facility Services. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Division of Facility Services, shall provide to the nursing home or home care agency the results of the national criminal history check. Nursing homes and home care agencies shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the home or agency is confidential and may not be disclosed, except to the applicant as provided in subsection (b) of this section.
(a1) Requirement; Contract Agency of Nursing Home or Home Care Agency. – An offer of employment by a contract agency of a nursing home or home care agency licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned upon consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. A contract agency of a nursing home or home care agency shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, a contract agency of a nursing home or home care agency shall submit a request to the Department of Justice under G.S. 114‑19.10 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10, the Department of Justice shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Division of Facility Services. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Division of Facility Services, shall provide to the contract agency of the nursing home or home care agency the results of the national criminal history check. Contract agencies of nursing homes and home care agencies shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the contract agency is confidential and may not be disclosed, except to the applicant as provided by subsection (b) of this section.
…."
SECTION 10.19D.(b) G.S. 131D‑40(a) and 131D‑40(a1) read as rewritten:
"§ 131D‑40. Criminal history record checks required for certain applicants for employment.
(a) Requirement; Adult Care Home. – An offer of employment by an adult care home licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned on consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. An adult care home shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, an adult care home shall submit a request to the Department of Justice under G.S. 114‑19.10 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G. S. 114‑19.10, the Department of Justice shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Division of Facility Services. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Division of Facility Services, shall provide to the adult care home the results of the national criminal history check. Adult care homes shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the home is confidential and may not be disclosed, except to the applicant as provided in subsection (b) of this section.
(a1) Requirement; Contract Agency of Adult Care Home. – An offer of employment by a contract agency of an adult care home licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned upon consent to a criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. A contract agency of an adult care home shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Within five business days of making the conditional offer of employment, a contract agency of an adult care home shall submit a request to the Department of Justice under G.S. 114‑19.10 to conduct a State or national criminal history record check required by this section, or shall submit a request to a private entity to conduct a State criminal history record check required by this section. Notwithstanding G.S. 114‑19.10, the Department of Justice shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Division of Facility Services. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Division of Facility Services, shall provide to the contract agency of the adult care home the results of the national criminal history check. Contract agencies of adult care homes shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. All criminal history information received by the contract agency is confidential and may not be disclosed, except to the applicant as provided by subsection (b) of this section.
…."
SECTION 10.19D.(c) G.S. 122C‑80(b) reads as rewritten:
"§ 122C‑80. Criminal history record check required for certain applicants for employment.
…
(b) Requirement. – An offer of employment by an area authority licensed under this Chapter to an applicant to fill a position that does not require the applicant to have an occupational license is conditioned on consent to a State and national criminal history record check of the applicant. If the applicant has been a resident of this State for less than five years, then the offer of employment is conditioned on consent to a State and national criminal history record check of the applicant. The national criminal history record check shall include a check of the applicant's fingerprints. If the applicant has been a resident of this State for five years or more, then the offer is conditioned on consent to a State criminal history record check of the applicant. An area authority shall not employ an applicant who refuses to consent to a criminal history record check required by this section. Except as otherwise provided in this subsection, within five business days of making the conditional offer of employment, an area authority shall submit a request to the Department of Justice under G.S. 114‑19.10 to conduct a criminal history record check required by this section. Notwithstanding G. S. 114‑19.10, the Department of Justice shall return the results of national criminal history record checks for employment positions not covered by Public Law 105‑277 to the Department of Health and Human Services, Division of Facility Services. Within five business days of receipt of the national criminal history of the person, the Department of Health and Human Services, Division of Facility Services, shall provide to the area authority the results of the national criminal history check. Area authorities shall make available upon request verification that a criminal history check has been completed on any staff covered by this section. A county that has adopted an appropriate local ordinance and has access to the Division of Criminal Information data bank may conduct on behalf of an area authority a State criminal history record check required by this section without the area authority having to submit a request to the Department of Justice. In such a case, the county shall commence with the State criminal history record check required by this section within five business days of the conditional offer of employment by the area authority. All criminal history information received by the area authority is confidential and may not be disclosed, except to the applicant as provided in subsection (c) of this section.
…."
SECTION 10.19D.(d) Of the funds appropriated in this act to the Department of Health and Human Services, Division of Facility Services, the sum of two hundred thousand dollars ($200,000) for the 2004‑2005 fiscal year shall be used to carry out the duties under this Section.
SECTION 10.19D.(e) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of two hundred fifty thousand dollars ($250,000) for the 2004‑2005 fiscal year shall be transferred to the Department of Justice. These funds shall be used to expedite the processing of criminal record checks by upgrading the billing system.
SECTION 10.19D.(f) Of the funds available to the Department of Health and Human Services for the 2004‑2005 fiscal year, the sum of thirty‑four thousand dollars ($34,000) shall be transferred to the Department of Justice. These funds shall be used for additional office space needed to carry out the requirements of this section. It is the intent of the General Assembly that this transfer of funds shall be for one year only after which funds needed for continuing expenses shall be included in the Department of Justice continuation budget recommendation.
SECTION 10.19D.(g) G.S. 131D‑40(d) reads as rewritten:
"(d) Relevant Offense. –
As used in this section, 'relevant offense' means a State crime, county,
state, or federal criminal history of conviction or pending indictment of a
crime, whether a misdemeanor or felony, that bears upon an individual's
fitness to have responsibility for the safety and well‑being of aged or
disabled persons. These crimes include the criminal offenses set forth in any
of the following Articles of Chapter 14 of the General Statutes: Article 5,
Counterfeiting and Issuing Monetary Substitutes; Article 5A, Endangering
Executive and Legislative Officers; Article 6, Homicide; Article 7A, Rape and
Other Sex Offenses; Article 8, Assaults; Article 10, Kidnapping and Abduction;
Article 13, Malicious Injury or Damage by Use of Explosive or Incendiary Device
or Material; Article 14, Burglary and Other Housebreakings; Article 15, Arson
and Other Burnings; Article 16, Larceny; Article 17, Robbery; Article 18,
Embezzlement; Article 19, False Pretenses and Cheats; Article 19A, Obtaining
Property or Services by False or Fraudulent Use of Credit Device or Other
Means; Article 19B, Financial Transaction Card Crime Act; Article 20, Frauds;
Article 21, Forgery; Article 26, Offenses against Public Morality and Decency;
Article 26A, Adult Establishments; Article 27, Prostitution; Article 28,
Perjury; Article 29, Bribery; Article 31, Misconduct in Public Office; Article
35, Offenses Against the Public Peace; Article 36A, Riots and Civil Disorders;
Article 39, Protection of Minors; Article 40, Protection of the Family; Article
59, Public Intoxication; and Article 60, Computer‑Related Crime. These
crimes also include possession or sale of drugs in violation of the North
Carolina Controlled Substances Act, Article 5 of Chapter 90 of the General
Statutes, and alcohol‑related offenses such as sale to underage persons
in violation of G.S. 18B‑302 or driving while impaired in violation
of G.S. 20‑138.1 through G.S. 20‑138.5."
SECTION 10.19D.(h) G.S. 122C‑80(e) reads as rewritten:
"(e) Relevant Offense. –
As used in this section, 'relevant offense' means a State crime,
county, state, or federal criminal history of conviction or pending indictment
of a crime, whether a misdemeanor or felony, that bears upon an individual's
fitness to have responsibility for the safety and well‑being of persons
needing mental health, developmental disabilities, or substance abuse services.
These crimes include the criminal offenses set forth in any of the following
Articles of Chapter 14 of the General Statutes: Article 5, Counterfeiting and
Issuing Monetary Substitutes; Article 5A, Endangering Executive and Legislative
Officers; Article 6, Homicide; Article 7A, Rape and Other Sex Offenses; Article
8, Assaults; Article 10, Kidnapping and Abduction; Article 13, Malicious Injury
or Damage by Use of Explosive or Incendiary Device or Material; Article 14,
Burglary and Other Housebreakings; Article 15, Arson and Other Burnings;
Article 16, Larceny; Article 17, Robbery; Article 18, Embezzlement; Article 19,
False Pretenses and Cheats; Article 19A, Obtaining Property or Services by
False or Fraudulent Use of Credit Device or Other Means; Article 19B, Financial
Transaction Card Crime Act; Article 20, Frauds; Article 21, Forgery; Article
26, Offenses Against Public Morality and Decency; Article 26A, Adult
Establishments; Article 27, Prostitution; Article 28, Perjury; Article 29,
Bribery; Article 31, Misconduct in Public Office; Article 35, Offenses Against
the Public Peace; Article 36A, Riots and Civil Disorders; Article 39,
Protection of Minors; Article 40, Protection of the Family; Article 59, Public
Intoxication; and Article 60, Computer‑Related Crime. These crimes also
include possession or sale of drugs in violation of the North Carolina
Controlled Substances Act, Article 5 of Chapter 90 of the General Statutes, and
alcohol‑related offenses such as sale to underage persons in violation of
G.S. 18B‑302 or driving while impaired in violation of G.S. 20‑138.1
through G.S. 20‑138.5."
SECTION 10.19D.(i) Subsections (a) through (c) of this section become effective January 1, 2005. The remainder of this section becomes effective July 1, 2004.
ADULT DAY SERVICES TRAINING AND REIMBURSEMENT METHODOLOGY
SECTION 10.21.(a) In an effort to support and sustain adult day services in North Carolina, the Department of Health and Human Services shall contract with a national adult day services resource center to provide training and consultation to adult day services providers and State and county adult day services consultants. The selected consultant shall study the current method of reimbursement for adult day services and make recommendations regarding changes to the reimbursement methodology. The final report shall be presented to the Study Commission on Aging by January 1, 2005.
SECTION 10.21.(b) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of up to two hundred fifty thousand dollars ($250,000) for the 2004‑2005 fiscal year shall be used to implement this section.
STATE/COUNTY SPECIAL ASSISTANCE
ADMINISTRATION OF REDUCTION IN FUNDS TO AREA AUTHORITIES
SECTION 10.22. In administering the two‑million‑dollar ($2,000,000) reduction in funds to area programs enacted in this act, the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services shall do the following:
(1) Apply the reduction to area authority funds that have reverted in each of the past two fiscal years; and
(2) Apportion the area authority reduction across disability groups by the proportion of the total funds reverted for each disability fund code in fiscal year 2003‑2004.
DHHS POLICIES AND PROCEDURES IN DELIVERING COMMUNITY MENTAL HEALTH, DEVELOPMENTAL DISABILITIES, AND SUBSTANCE ABUSE SERVICES
(1) The provision of services to adults and children as defined in the Mental Health System Reform State Plan as priority or targeted populations.
(2) A revised system of allocating State and federal funds to area mental health authorities and county programs that reflects projected needs, including the impact of system reform efforts rather than historical allocation practices and spending patterns.
(3) The provision of services to children not deemed eligible for the Comprehensive Treatment Services Program for Children, but who would otherwise be in need of medically necessary treatment services to prevent out‑of‑home placement.
(4) The provision of services in the community to adults remaining in and being placed in State institutions addressed in Olmstead v. L.C.
Area mental health, developmental disabilities, and substance abuse services authorities and county programs shall use all funds appropriated for and necessary to provide mental health, developmental disabilities, and substance abuse services to meet the need for these services. If excess funds are available after expending appropriated funds to fully meet service needs, one‑half of these excess funds shall not revert to the General Fund but shall be transferred to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs, except that one‑half of the funds appropriated for the Comprehensive Treatment Services Program for Children that are unexpended and unencumbered shall not revert to the General Fund but shall be carried forward and used only for services for children and adolescents.
The Department, in consultation with the area mental health authorities and county programs, shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Joint Legislative Oversight Committee on Mental Health, Developmental Disabilities, and Substance Abuse Services on the progress in implementing these changes. The report shall be submitted on October 1, 2004, and February 1, 2005.
FUNDS FOR PATH PROGRAM RESIDENCE PURCHASE
SECTION 10.23. The Department of Health and Human Services may use up to five hundred thousand dollars ($500,000) from the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs to purchase an existing house or other residential facility, and the land on which the house or facility is located, for use by the PATH Program at the Murdoch Center.
USE OF MENTAL HEALTH TRUST FUND MONIES FOR CAPITAL IMPROVEMENTS AND EXPANSIONS AT ADACT CENTERS
SECTION 10.24. Of the funds appropriated to the Trust Fund for Mental Health, Developmental Disabilities, and Substance Abuse Services and Bridge Funding Needs for the 2004‑2005 fiscal year, not more than three million five hundred thousand dollars ($3,500,000) may be used by the Department of Health and Human Services for capital improvements and capital expansions at the State's Alcohol and Drug Abuse Treatment Centers (ADACT) in accordance with G.S. 143‑15D.
AREA PROGRAM AND COUNTY PROGRAM TRANSITION FLEXIBILITY
SECTION 10.26.(a) G.S. 122C‑115(a) reads as rewritten:
"(a) A county shall provide mental health, developmental disabilities, and substance abuse services through an area authority or through a county program established pursuant to G.S. 122C‑115.1. To the extent this section conflicts with G.S. 153A‑77(a), the provisions of G.S. 153A‑77(a) control. If a county that is a member of an area authority determines to provide its services through a county program or through a multicounty program, it may, with the agreement of the other counties comprising the area authority and the approval of the Secretary, simultaneously participate in a county program or a multicounty program while remaining a participating member of the area authority until the end of the subsequent fiscal year."
SECTION 10.26.(b) This section is effective upon ratification and expires on July 1, 2005.
SECTION 10.26A.(a) S.L. 2003‑314 is amended by adding a new section to read:
"SECTION 3.4.(a1) The State Property Office, in consultation with the City of Raleigh, shall develop a Master Plan for the Dorothea Dix Campus. The State Property Office shall hire a consultant to assist with the development of the Master Plan. The State Property Office shall examine, among other things, operations for land conservation, mixed‑use development, and anticipated State office space needs. The Master Plan shall reflect both State needs and local considerations. The State Property Office shall submit the Master Plan to the Dorothea Dix Property Study Commission no later than April 1, 2005. The Commission shall review the Master Plan and shall make recommendations to the 2005 General Assembly.
In order to enhance communication and feedback regarding the planning process, an oversight committee shall be established to oversee the development of the Master Plan. The oversight committee shall consist of five members: three shall be appointed by the Cochairs of the Dorothea Dix Property Study Commission; one shall be appointed by the Raleigh City Council; and one shall be appointed by the Wake County Board of Commissioners. The oversight committee shall terminate upon the submission of the Master Plan to the Dorothea Dix Property Study Commission."
SECTION 10.26A.(b) Section 3.4(a) of S.L. 2003‑314 reads as rewritten:
"SECTION 3.4.(a) Dorothea Dix Hospital Property Study Commission. – If any of the State‑owned real
property encompassing the Dorothea Dix Hospital campus is no longer needed by
Dorothea Dix Hospital and is not transferred to another State agency or
agencies before the sale of any or all of the property to a nongovernmental
entity, options for this sale shall be considered by the Dorothea Dix Hospital
Property Study Commission. The Commission shall make recommendations on the
options for sale of the property to the Joint Legislative Commission on
Governmental OperationsOperations, the 2005 General Assembly, and the
Appropriations Committees of the Senate and the House of Representatives
before any sale of any or all parts of the property. The Commission shall
terminate upon submission of its final report."
SECTION 10.26A.(c) Of the funds appropriated in this act to the Department of Health and Human Services, the sum of one hundred thousand dollars ($100,000) for the 2004‑2005 fiscal year shall be transferred to the Department of Administration, State Property Office. These funds shall be used to develop a Master Plan for the Dorothea Dix Property.
DHHS CENTRAL OFFICE CONTRACTS REDUCTION
SECTION 10.26B. Reductions in funds appropriated to the Department of Health and Human Services for the 2004‑2005 fiscal year for technical assistance, training, and service contracts through the Central Office of the Divis